BUSINESS · 3/7/2018 · SATISH KANADY THE PENINSULA DOHA: As Qatar enters the 10th ... Boban...

Qatar -Belgium Economic Forum

BUSINESSWednesday 7 March 2018

PAGE | 23PAGE | 22Dollar peg

serves well for Qatar: IMF

Japan seeks Qatar’s support for World Expo bid

Global bodies vouch for Qatar’s solid economySATISH KANADY THE PENINSULA

DOHA: As Qatar enters the 10th month of unjust blockade, inter-national agencies are increas-ingly affirming the resilience of Qatari economy.

A day after IMF reaffirmed that Qatari economy continued to remain strong and the impact of economic blockade was fast fading, Institute of International Finance (IIF) yesterday noted ‘Qatar has successfully turned the crisis in to opportunity.’

“Although the Saudi-led blockade on Qatar continues into its ninth month and shows no signs of abating, Qatar’s economy has remained resilient. The blockade has had a silver lining, motivating deeper trade and dip-lomatic ties with a wide range of partners beyond their immediate geographical neighbourhood,

which could pay long-term div-idends”, the IIF Chief Economist Garbis Iradian and IIF analyst Boban Markovic said in the latest research note on Mena.

The blockade did visibly crimp non-hydrocarbon activity in the middle of 2017, particu-larly in sectors such as trade, tourism, and real estate where foreign participants had played a leading role. However, the

shock has largely dissipated, and manufacturing remained strong throughout. Overall, IIF esti-mates 1.9 percent growth for 2017, which it sees rising slightly in 2018 and beyond due to a pickup in private consumption, public spending, and exports.

According to IIF, Qatar’s banks are recovering from a period of weakness in the third quarter of 2017, and the

government’s already high fiscal buffers are being replenished. Nonresident deposits in Qatari banks have declined from $50.7bn in May 2016 to $37.6bn in January 2018. This $13bn decline has more than been offset by the increase in govern-ment deposits leading to total deposits growth of 24 percent (year-on-year) in January 2018.

The IIF analysts noted that Qatar National Bank, the largest bank in the region, has recently raised $1.3bn through privately placed bonds, in addition to another priced private note of $1bn. The authorities responded to the large nonresident capital outflows in 2017 by tapping the SWF to provide liquidity and keep the economy on steady footing. Consequently, in a notable departure from the normal pattern, nonresidents were a net drain on capital flows

in 2017, while the resident sector was a net contributor.

“Looking ahead, as nonres-idents have returned to Qatar’s banks and equity market, we expect the SWF to resume its for-eign investment activities in 2018, although at a subdued pace. In this environment, both the sovereign and commercial banks see a ripe environment to

turn to capital mar-kets and issue new securities denomi-nated in a range of currencies.” IIF expects Qatar’s f iscal deficit , excluding invest-ment income, to narrow from 9.5 percent of GDP in 2017 to 5 percent in 2018, or $9bn, sup-ported by higher hydrocarbon reve-

nues. This is likely to be financed by one-third from external bor-rowing and two-thirds from tap-ping Qatar’s large foreign assets. Nonethelss, public foreign assets (official reserves plus SWF) will remain north of 200 percent of GDP. With the exchange rate peg remaining in place, interest rates would move in line with actions by the Federal Reserve.

The blockade has had a silver lining, motivating deeper trade and diplomatic ties with a wide range of partners beyond their immediate geographical neighbourhood, which could pay long-term dividends.

Qatar’s economy has remained

resilient

MPHC explores potential investment opportunitiesMOHAMMAD SHOEB THE PENINSULA

DOHA: Mesaieed Petrochemical Holding Company (MPHC) is exploring investment opportu-nities in some specific areas to maintain and improve its competitiveness, Ahmad Saif Al Sulaiti, Chairman of the Board of Directors of MPHC, said yesterday.

In addition new expansion and new business development, the MPHC, region’s premier diversified petrochemical con-glomerates, is also working to invest in its existing businesses and operations to improve cost efficiency.

“MPHC is embarking on a selective capital expenditure programme together with suit-able business development opportunities. We believe that continued investments in oper-ating assets are essential to remain competitive in the market, and we will continue to invest when the right opportu-nity becomes available,” Al Sulaiti told shareholders in his address at the company’s Annual General Meeting held yesterday. “These investments will further strengthen the group’s compet-itive position in the region.”

MPHC already possess sev-eral competitive advantages, most notably that being an

excellent cost positioning largely due to competitively priced feed stock. The group benefits from access to competitively priced feedstock under long-term agreements. In addition the group also enjoys several other advantages, including robust liquidity position, an integrated production and export opera-tions and a diverse base of worldwide clients.

“The Board of Directors of MPHC is confident that the group can build on these core strengths to mitigate risks and challenges posed by the current economic situation,” noted Al Sulaiti.

→ Continued on page 23

Chairman of the Board of Directors of Mesaieed Petrochemical Holding Company (MPHC) Ahmad Saif Al Sulaiti (second left) and other Board Members at the company’s Annual General Assembly, held at La Cigale Hotel Doha, yesterday.

H E Sheikh Ahmed bin Jassem bin Mohammed Al Thani (second right), Minister of Economy and Commerce; with Sheikh Khalifa bin Jassem Al Thani (second left), Chairman, Qatar Chamber; Akbar Al Baker (left), Chief Executive, Qatar Airways Group and other officials during Qatar-Belgium Economic Forum in Brussels, Belgium, yesterday.

France to probe Google & Facebook over online ad dominanceREUTERS

PARIS: France’s competition authority may open investiga-tions into Facebook and Google “in the next few months” after an in-depth examination concluded the pair dominate the French online advertising market.

The regulator said it was considering a full inquiry on Tuesday amid growing scrutiny from European authorities of the biggest internet companies, whose size and sway over data

collection have rapidly made them advertising giants.

“What is clear is the over-whelmingly dominant position of Google and Facebook,” pres-ident of the French competition body, Isabelle de Silva, said.

The authority’s report high-lighted that the two companies acted as both publishers and technical intermediaries for advertisers, giving them a com-petitive advantage.

“Facebook is only one option among many others for advertisers to reach audiences,”

Delphine Reyre, Facebook’s director of policy for Europe, said in a statement.

Facebook and Google, which did not immediately com-ment, accounted for 76 percent of internet ad spending outside China in 2016, a report by Pub-licis agency Zenith found.

The situation is the same in France, where the internet has become the number one vehicle for advertisers, ahead of televi-sion, with more than a third of total ad spending in 2017, up 3.4 percentage points from 2016.

8,429.30 -24.88 PTS0.29 %

QSE FTSE100 DOW BRENT7,146.75 +30.77 PTS0.43%

24,760.14 -114.62 PTS0.46% Dow & Brent before going to press

$62.35 -0.22

22 WEDNESDAY 7 MARCH 2018BUSINESS

Ahlibank andQGIRCO launch BancassuranceTHE PENINSULA

DOHA: Ahlibank, a leading Qatari-owned financial insti-tution, and Qatar General Insurance and Re-Insurance Company announced a Bancas-surance agreement for the distribution of QGIRCO’s insur-ance products.

Ahlibank’s clients can now apply for Bancassurance prod-ucts including travel and motor insurance products through any Ahlibank branch located across the country.

Ahlibank’s Business Man-ager, Amine ElBizri, said, “We are honoured to partner with QGIRCO, a leading insurance company in the region, to offer a comprehensive range of non-life Bancassurance products and services for our customers. We continue to innovate and expand our offerings and with Bancas-surance, Ahlibank clients can purchase their motor and travel insurance policies throughout any of our branches.

The Official Spokesman of QGIRCO, Georges Wakim com-mented stating that “This Agreement comes in the context of many steps taken by QGIRCO within its strategy of expansion

in the local market towards ful-filling the need of insurance services across the state of Qatar, thereby strengthening its leading position in providing our valued customers with a prompt and outstanding insurance serv-ices. Our partnership with Ahli Bank is a remarkable step that we take pride of, considering that Ahli Bank is one of the most prominent and leading finan-cial institutions in the State of Qatar. Also, this Agreement rep-resents a significant step with respect to providing and devel-oping insurance services and it constitutes a good chance for cooperation among private sectors.”

Ahlibank headquarters in Al Sadd area.

Japan seeks Qatar’s support for World Expo bidTHE PENINSULA

DOHA: Qatar Chamber direc-tor-general Saleh bin Hamad Al Sharqi met on Tuesday with a Japanese delegation led by the special envoy of the Japan’s Ministry of Foreign Affairs for EXPO 2025 Shigeru Endo, in the presence of the private sector special envoy Masaki Iwakura and consultant of the Japanese embassy to Qatar Daisuke Yamamoto.

The meeting reviewed mechanisms of enhancing coop-eration relations between the private sector in both countries. The delegation informed the chamber on the Japanese ongo-ing preparations in Osaka which competes to host the expo.

For his part, Shigeru Endo said that Japan hopes that Qatar extends support for Osaka’s bid to host this global exposition.

He said Japan is competing with three other cities for the bid to organise the 2025 World Expo: Yekaterinburg, Russia; and Baku, Azerbaijan.

He said 170 delegates rep-resenting member countries of the International Exhibitions Bureau (BIE) will elect the host country of the 2025 World Expo in November this year.

The expo would be an opportunity for Qatari compa-nies and businessmen to build

robust relations with the Japa-nese side and establish joint ventures and businesses in all sector, particularly in Osaka which is a leading business center in the country.

QC’s director-general Saleh Al Sharqi said that the State of Qatar is very keen on partici-pate in international forums.

“Qatar had participated in Expo Astana 2017 in Kazakhstan

and its pavilion won the first place and Gold Award among more than 100 pavilions of dif-ferent participating countries.,” he added.

Sharqi underlined the importance of fostering trade cooperation with Japan, noting that Qatar Chamber sought to enhance cooperation with Jap-anese chambers for the benefit of increasing the trade exchange

between the two countries. In preparation for hosting the 2022 World Cup, Qatar is imple-menting mega projects which opens the way for Japanese companies to participate, he pointed out.

In turn, Masaki Iwakura said that the expo is a good opportunity for Qatar and Japan to promote their economic and trade ties.

Saleh bin Hamad Al Sharqi (centre), Director-General, Qatar Chamber exchanging memento with Shigeru Endo (left), special envoy of the Japan’s Ministry of Foreign Affairs for EXPO 2025.

Ahlibank’s clients can now apply for Bancassurance products including travel and motor insurance products through any Ahlibank branch located across the country.

Volume of cyberattacks on the riseAP

THE HAGUE: Attempts at digital espionage and online political manipulation in Europe are on the rise both in number and in complexity, the Netherlands’ main intelligence agency saidyesterday in its annual report.

Adding its voice to fears around the world of a rise in cov-ert digital influence and espionage, the Dutch General Intelligence and Security Service said in its 2017 report a growing number of foreign powers are

using cyber espionage “to acquire information that they use for (geo) political gain.”

It highlighted Russia, which it said is “extremely driven in the covert digital influencing of (political) decision making proc-esses.” It added that the agency also has seen similar attempts by China.

The intelligence agency, known by its Dutch acronym AIVD, is known for its tracking of online threats. Dutch media reported in January that AIVD hackers penetrated the comput-ers used by a Russian hacking

group known as Cozy Bear in mid-2014 and watched them for at least a year, even managing to catch the hackers on camera.

In its annual report, the agency said online spying is also being used to infiltrate European multinationals, research insti-tutes as well as the energy, high-tech and chemicals sectors.

“Terabytes of confidential information with a substantial economic value were stolen in these digital breaches,” the report said.

Barwa EGM approves its agenda itemsTHE PENINSULA

DOHA: Barwa Real Estate Company, one of the leading real estate and investment companies in Qatar and the region, held an Extraordinary General Assembly Meeting yesterday.

The EGM endorsed the items on its agenda including reconciliation of the compa-ny’s Articles of Association in accordance with the require-ments of the Companies Law and the Corporate Govern-ance Code issued by the Qatar Financial Markets Authority and authorising the chairman of the Board of Directors with all the necessary powers to implement the resolution of the EGM and complete all the required procedures in that regard.

Essa Bin Mohammed AlMohannadi, Vice Chairman of the Board of Directors chaired the meeting in pres-ence of all Board members and Chief Executive Officer of the Group Salman bin Mohammed Al Mohannadi.

Milaha opens Phase 1 of Logistics CityTHE PENINSULA

DOHA: Milaha, a Qatar-based maritime and logistics conglom-erate, has inaugurated Phase 1 of the 400,000 sqm Milaha Logistics City, with a 35,000 sqm warehousing facility dedi-cated to temperature-controlled cargo. The new facility marks Milaha’s entry into cold chain solutions, and will cater to the food industry, pharmaceuticals, and other fast-moving consumer goods (FMCG).

The facility is divided into a frozen storage area, a chilled storage area, and a tempera-ture-controlled storage area, ranging from -22° to +22° Cel-sius. The facility uses state-of-the-art and environ-mentally friendly technology, which earned it a sustainability award at the Gulf Organisation for Research and Development (GORD) summit recently held in

Qatar. The new facility is also one of the highest in Qatar with 22 meters which allows more storage per sqm than many existing facilities in Qatar.

“Milaha Logistics City is a significant investment on our part in Qatar’s supply chain infrastructure and, in particu-lar, cold chain capabilities, and we expect it to be a key enabler for logistics growth in Qatar,” said Abdulrahman Essa Al Man-nai ,Milaha’s President and CEO.

“We want to give our clients more sophisticated options to access the local market. This new service offering will further strengthen Qatar’s position as a leading maritime and logistics hub as well as our own position as a national and regional sup-ply chain partner.”

For his part, Milaha’s VP-Logistics MrMazen Kloub said: “We are already seeing a tre-mendous response to the new

facility, which is ideally located on the orbital road with close proximity to Qatar’s main air-port and commercial seaport, and offers quick, easy access to Doha and beyond. We look for-ward to working with our clients and partners to help them seize the opportunities that this facil-ity will enable.”

The 35,000 sqm warehous-ing facility is the initial phase of a larger development which also includes other specialized ware-housing options that aimed at providing Milaha’s clients with advanced supply chain solutions.

The construction of the project was managed by Mila-ha’s real estate arm, Milaha Capital, which ensured that the development adopted and com-plied with the highest international standards in safety, security , and technology.

An interior view of the warehousing facility at Milaha Logistics City.

China’s economy poised to overtake combined Euro-area this yearBLOOMBERG

SINGAPORE: In another sign that the “Asian century” has arrived, China is on course to overtake the euro-area in the size of its economy this year.

China’s gross domestic product is forecast to reach about $13.2trillion in 2018, beating the $12.8trillion com-bined total of the 19 countries that use the euro, according to data compiled by Bloomberg. In 2017, the euro cohort edged China by less than $200bn.

“It’ll overtake and then persist,” said David Mann, Sin-gapore-based global chief economist for Standard Char-tered Bank. “It’s a function of the economic system, institu-tional infrastructure, education and hard infrastructure -- all of which have been moving in Asia’s favor.”

Asia, including power-houses Japan and India as well fast-emerging emerging nations such as the Philippines and Indonesia, already crowded out the combined economies of North and South America in 2016, according to data com-piled by Bloomberg. And the faster average growth pace in Asia is set to be a boon to that yawning gap for many years.

China’s leaders, convening in Beijing for the National Peo-ple’s Congress, have doubled down on President Xi Jinping’s ability to keep growth stable, having removed the limit on his rule. The world’s second-biggest

economy is weathering a grad-ual slowdown as Xi tries to manage a shift from the low-wage, high-exports model of the past to a more balanced mix where stronger domestic spend-ing plays a greater role. To do so, China faces numerous chal-lenges. It will have to manage ballooning debt, financial mar-kets need to open to global investors, and the government will have to adjust to a rapidly aging population. The UN projects that a quarter of its res-idents will be over 60 by 2030.

China should grow at a pace of at least 6 percent for the rest of this decade and keep up a 5 to 5.5 percent rate throughout the 2020s, Mann projected. He said it’s hard to argue that growth in the euro area would be much above 2 percent for the next couple of decades.

While it’s tricky to compare the growth data across large swaths of time, the best guess as to the last time China’s economy overshadowed Western Europe was around the mid-1800s, said Aditya Bhave, global economist at Bank of America Merrill Lynch, citing figures compiled by the Maddison Project at the University of Groningen in the Netherlands.

China’s rising trajectory would help return the global economy to a state that’s per-sisted through most of history, with the last 150 years being an outlier in which Western econ-omies outweighed those in the East, Mann said.

Ghana will meet IMF April review requirementsREUTERS

ACCRA: The International Monetary Fund is confident Ghana will implement outstanding measures needed for a successful review of its $918 million aid programme next month, the Fund’s Ghana chief said on Monday.

The major commodities exporter is in the final year of the programme, signed in April 2015 to restore stability to an economy dogged by deficits, public debt and low growth with inflation consist-ently above target.

A confidential document seen by Reuters on Friday said the IMF wants Ghana to adopt new measures to boost revenues, slow the pace of borrowing and outline plans to clean up the financial sector.

23WEDNESDAY 7 MARCH 2018 BUSINESS

→ Continued from page 21Meanwhile, the share-

holders of the company approved all the items on the agenda of the AGM, including the Board’s recommendation to distribute annual dividend for the last financial year ended December 31, 2017 of QR879m, equivalent to QR0.7 (70 dirhams) per share.

The group registered a robust net profit of QR1.1bn for the year ended 31 December, 2017, outperforming its previous year’s net profit of QR995m.

The year-on-year surge in profits was due to improved selling prices by 6 percent - in line with the crude oil price upswing - and increase in other income, despite the decline in

sales volumes arising from the planned maintenance shutdowns in some of the group companies’ plants. The group’s earnings per share stood at QR0.87, compared to QR0.79 from a year ago.

2017 was characterised by a number of opportunities that have been successfully translated into stellar performance. The group successfully completed the planned maintenance shutdowns in some of its plants. Despite the shutdowns, the financial and operational results were com-mendable and exceeded the group’s budget.

Total assets of MPHC as at 31 December, 2017 stood at QR14.8bn, compared to QR14.4bn as at 31 December, 2016.

Dollar peg serves well for Qatar: IMFSATISH KANADY THE PENINSULA

DOHA: The International Mone-tary Fund (IMF) has stated that Qatar’s currency peg to the US dollar remains appropriate for the country. The peg to the US dollar continues to serve Qatar well, providing a clear and cred-ible monetary anchor. Neverthe-less, the exchange rate regime should be periodically reviewed to ensure it remains appropriate as the economy moves towards a more diversified export struc-tures, the Fund noted in a state-ment prepared on the basis of the preliminary findings of IMF staff, at the end of an official visit to Qatar.

The IMF Staff’s assessment suggests that the external posi-tion is moderately weaker than the level that would be consistent with sufficient saving of Qatar’s

exhaustible resource revenue. However, with gradual fiscal adjustment, the estimated cur-rent account gap could be closed in the medium term.

Reserves are considered to be broadly adequate in view of the size of the sovereign wealth fund.

On the fiscal policy, the Fund said continuing gradual fiscal consolidation over the medium term will help ensure adequate saving of the exhaustible hydro-carbon wealth for future generations.

The nonhydrocarbon pri-mary balance consistent with intergenerational equity (the benchmark nonhydrocarbon pri-mary deficit calculated using the permanent income hypothesis) is the appropriate anchor for assessing the fiscal position in Qatar, given ample oil and gas reserves.

With the fiscal consolidation that has already taken place during 2016–17, the estimated gap between the non-hydro-carbon balance derived from this framework and the actual non-hydrocarbon primary balance in 2017 was about 6 percentage points of non-hydrocarbon GDP. Gradual fiscal consolidation is

appropriate in view of significant fiscal space. The authorities have the space to go even slower in the event of adverse shocks or if cyclical conditions warrant, the Fund said.

Effective prioritization and sequencing of fiscal reforms is important for Qatar to pre-venting reform fatigue. In line with this approach, the 2018 budget continues with gradual fiscal consolidation, with emphasis on new tax measures (VAT and excises), fees for the use of government services, con-tained current expenditure, and efficient and higher capital expenditure.

In the medium term, further fiscal consolidation is envisaged, including limiting the growth of the public wage bill and spending on good and services, and reduced public investment. Going forward, consideration

could be given to wage reform, underpinned by restructuring based on well-designed and implemented public sector employment reforms in conjunc-tion with reforming education and the labor market.

Public employment reform is important to improving eco-nomic efficiency and supporting private sector-led growth. The direction of the energy and water price reforms is appropriate. Gradually reducing energy sub-sidies (water and electricity), while putting in place robust mechanisms to protect the most vulnerable segments of the pop-ulation is important.

According to the Fund, efforts are ongoing in Qatar to develop financial markets and strengthen their financial integ-rity. Deepening domestic finan-cial markets, especially domestic government and corporate bond

markets, should be a priority reform area to support non-hydrocarbon private sector growth. Developing financial markets, ensuring financial inclusion and fostering financial innovation (FinTech) that seeks to reach out to a broader base through cost-effective tech-nology are a cornerstone of the authorities’ Second Strategic Plan for the Financial Sector.

Qatari authorities are increasingly focusing on enhancing AML/CFT effective-ness and strengthening anti-cor-ruption regimes. They are putting in place a comprehensive mech-anism to implement targeted financial sanctions and man-aging risks posed by non-profit organizations. In addition, pri-ority is given to the combating of terrorist financing legal frame-work, and the assessment of national risks.

The exchange rate regime should be periodically reviewed to ensure it remains appropriate as the economy moves towards a more diversified export structure.

11 TPP countries go it alone without USAFP

SANTIAGO: A year after an abrupt US withdrawal left a fledgling 12-nationTrans-Pacific Partnership (TpP) for dead, the 11 remaining states will sign a re-vamped deal tomorrow aimed at slashing tariffs.

The agreement -- rebranded as the Comprehensive and Pro-gressive Agreement for Trans-Pacific Partnership (CPTPP) -- has been championed as an antidote to growing US protec-tionism under President Donald Trump.

“We are not going to be derailed by Trump’s decision” to withdraw the US, said Felipe Lopeandia, Chile’s top trade negotiator, ahead of the ratifi-cation ceremony in Santiago.

After years of negotiations, the original deal, Trans-Pacific Partnership, was signed in Feb-ruary 2016 by 12 countries that border the Pacific Ocean.

But it fell victim to Trump’s “America First” policy, when he removed the pact’s major linchpin before the deal could get under way.

The CPTPP aims to slash tariffs between the 11 members and foster trade to boost growth.

It will “send a political signal to the world and to the United States itself, that this is a global agreement,” said Lopeandia.

Coming in the same week that Trump risked a trade war over his decision to introduce tariffs on imported steel and alu-minum, the deal is seen by some members as striking a blow

against protectionism. The pact, though a diminished one involving 13.5 percent of global GDP, remains hugely significant, according to Ignacio Bartesaghi of the Catholic University of Uru-guay’s business school.

“There is no trade agree-ment involving that number of countries, and one that has 30 chapters which deal with all the most modern topics of interna-tional trade,” Bartesaghi told AFP.

Last month, Trump told the World Economic Forum in Davos that the US might return if it got a better deal.

“Little by little, his advisors have managed to make Trump realize the role that the United States plays in Asia Pacific and the role played by the TPP in that

region, not only in economic and trade terms, but in geopolitical terms,” said Bartesaghi.

But Japan, a key driver behind the revised pact, is skep-tical. “If the United States returns to a more positive attitude toward the TPP, it is something we will welcome (but) it would not be so easy” to change the agreement again, said Tokyo’s chief negotiator Kazuyoshi Umemoto.

More than 20 provisions were suspended or changed in the new agreement, mostly rules over intellectual property orig-inally inserted at the demand of US negotiators.

Analysts noted these provi-sions were not canceled, how-ever, with some suggesting the door is being left ajar for the US.

MPHC explores potential investment opportunities


Financial services cannot be in Brexitfree trade dealAFP

LONDON: Any post-Brexit free trade deal struck between Brit-ain and the European Union must not include financial serv-ices, French Economy Minister Bruno Le Maire said yesterday before meeting his UK coun-terpart.

Le Maire’s comments are a strong response to British Prime Minister Theresa May, who in a keynote speech on Friday said trade in services as a whole needed “to be deeper than any other free trade agreement”.

Speaking yesterday on BBC radio, ahead of a meeting with British finance minister Philip Hammond, Le Maire said: “We need a deal, we need a good deal. But once again, we have to avoid any misunderstanding between the British people and the French people, between the UK and the EU.

“Financial services cannot be in a free trade agreement, for many reasons... For reasons of stability, for the sake of supervision because there are some very specific rules for financial services,” Le Maire said.

He added that the UK would have to accept the cur-rent system used by non-EU financial companies allowed to

operate within the European Union.

“We have an alternative system which is called the equivalence regimes... I think this is the best solution for the financial services,” Le Maire said.

Under Brexit, London-based financial firms will lose their so-called passporting rights, which allow them to trade freely with other EU countries. Large financial insti-tutions, including British bank HSBC, Swiss peer UBS and US giants JPMorgan and Morgan Stanley, have already con-firmed plans to move some London activities to Paris, as well as to Amsterdam, Dublin and Frankfurt, as a result of Britain’s departure from the EU due in one year.

Hungary expects 4% growth for yearsREUTERS

BUDAPEST: Hungary’s econ-omy will grow by 4 percent in coming years, will reach full employment by 2022 with rising wages, and does not need EU funds to succeed, Prime Minis-ter Viktor Orban said yesterday, laying out an economic agenda ahead of April elections.

The rightwing leader has frequently clashed with Brus-sels over laws that increased control over the media and over tough anti-immigration policies. He said Hungary needs to remain within the European Union in order to have access to its markets but not because it needs the funds it receives from the bloc.

Orban’s Fidesz party leads polls as he seeks a third consec-utive term in the April vote.

Officials in Brussels have discussed making some of the funds the bloc disburses to member states conditional on maintaining the rule of law, as a way to rein in Hungary, Poland and other former communist states where ruling parties have asserted control over media and courts in recent years.

Orban, who regularly denounces EU policies on immi-gration and other areas, has stopped short of advocating fol-lowing Britain, a net contributor which has voted to quit the bloc.

“What we need is not Euro-peans’ money, but their market... this is why we must stay within

the EU,” Orban told an economic conference.

He said only “forces sup-porting foreign intervention” say that EU funds are a pre-condi-tion for Hungary’s economic success, and annual contribu-tions from Brussels were dwarfed by the Hungarian econ-omy’s output.

Hungary received about ¤5.6bn in EU funds while con-tributing just 946 million in dues in 2015, according to figures from the European Parliament, making it one of the biggest net beneficiaries per capita of EU money.

It receives around 500 euros per person in net subsidies from Brussels, compared to a GDP per capita of around ¤10,000.

Hungarian Economy Minister Mihaly Varga (left) and Hungarian Prime Minister Viktor Orban attend a forum of the chamber of industry in Budapest, Hungary, yesterday.

Lindt eyes chocolate lovers in emerging marketsAFP

ZURICH: Swiss chocolate maker Lindt & Spruengli is seeking to lure more sweet-toothed consumers in Japan, China, South Africa, Brazil and Russia, where the group said yesterday it enjoys “enormous potential”.

Lindt, a leader in the afford-able luxury chocolate segment, said in its annual report that sub-sidiaries in those five countries had produced “an above aver-age result” in 2017, with organic growth of 12.4 percent.

“This positive trend is being fuelled by consumers’ growing demand for quality, greater pur-chasing power and also a growing desire for chocolate with a high cocoa content,” Lindt said.

People gave into their temp-tation for Lindt chocolate elsewhere as well, with global net profits rising 7.8 percent from 2016.

Meanwhile, sales hit

an all-time record for the 175-year-old company of more than 4 billion Swiss francs (¤3.45bn, $4.3bn).

Lindt feted an improved market situation for key raw materials -- cocoa beans, cocoa butter and sugar -- with “much better harvests in 2016/17, allow-ing the previous record-high prices to ease back to normal levels”.

That should allay chocolate lovers’ fears of an imminent cri-sis for their favourite treat.

It was good news all round, bar in the United States, the world’s largest chocolate mar-ket but a weaker one for Lindt, where company sales dipped slightly, it said.

The dip came even as Lindt sought to attract customers with new packaging and discounts over Christmas, and with the relaunch of a sugar-free choco-late line.

Globally, Lindt said that while it projects six to eight

percent long term growth, its expectations for 2018 were lower at five percent.

Part of the reason why the master chocolatier’s outlook is not at its full potential is a decline

in sales from one of its US brands, Russell Stovier.

Suspecting that Lindt may be biting off more than it can chew in the American market, some analysts said the picture

was somewhat bittersweet. “These solid results are eclipsed by a disappointing growth fore-cast for 2018,” said Jean-Philippe Bertschy, an analyst at Vonto-bel, a financial services firm.

CEO Dieter Weisskopf of Swiss chocolatier Lindt & Spruengli addresses the annual news conference in Kilchberg, Switzerland, yesterday.

Chinese EV battery giant zeroes in on factory in EUBLOOMBERG

BEIJING: The Chinese supplier of electric-vehicle batteries that’s planning a local factory with enough capacity to surpass the output of Tesla Inc. has set its sights further: Europe.

Contemporary Amperex Technology Ltd. is close to picking one of three sites in the European Union for its first overseas plant, Chairman Zeng Yuqun said in an inter-view. The company is exploring Germany, Hungary and Poland for the plant, according to a person famil-iar with the plan who asked not to be identified as the information isn’t public.

“We see a big opportu-nity in Europe,” Zeng said on the sidelines of the National Committee of the Chinese People’s Political Consultative Conference in Beijing. “Korean companies, using a low-price strategy to compete with us, haven’t made much technological progress in the past two years, while we have managed to grow fast and surpass them.”

The expansion in Europe comes on top of a plan to build a factory in the compa-ny’s home base of Ningde, Fujian, that would quintuple its production capability and make it the world’s largest EV battery cell maker. A pending $2bn initial public offering would help finance the con-struction of the plant in China. The European facility would supply major carmakers in the region, including BMW AG, Zeng said on Monday.

CATL, as the company is known, is one of the manufac-turers spawned by China’s aggressive push for cleaner air and fewer oil imports. The company, which already sells the most batteries to the big-gest electric-vehicle makers in China, is looking for a loca-tion in Europe with the lowest cost and the demand for elec-tric vehicles on the continent would dictate the capacity, Zeng said.

The company will open a sales office in Japan in May, Liang Chengdu, dean of CATL Research Institute, said last week in Tokyo. Japanese car-makers including Toyota Motor Corp, Nissan Motor Co and Honda Motor Co have all said they are considering CATL batteries for their local EVs in China. CATL also opened a sales office in the US last year.

Australia holds key rate as divergence weighs on currencyBLOOMBERG

SYDNEY: Australia’s central bank left interest rates unchanged as its increasing policy divergence from global peers weighs on the currency, potentially aiding economic growth and inflation.

Reserve Bank of Australia Governor Philip Lowe and his board kept the cash rate at a record-low 1.5 percent yester-day, in line with market and economists’ expectations. They’re trying to prolong a hir-ing boom and soak up spare capacity in the labor market in order to generate faster wages growth. The RBA chief signaled he’s seeing some progress.

“The rate of wage growth appears to have troughed,” Lowe said in a statement announcing the decision. “Inflation is likely to remain low for some time, reflecting low growth in labor costs and strong competition in retailing. A gradual pick-up in inflation is, however, expected

as the economy strengthens.” The local dollar was little

changed after the statement’s release, buying 77.82 U.S. cents at 3:05 p.m. in Sydney.

The RBA is standing pat as developed world peers move to normalize policy or raise inter-est rates in response to tighter

job markets and accelerating growth, as they overcome fall-out from the 2008 global recession. While Australia dodged the slump due to mas-sive resource demand from an industrializing China, its econ-omy is sluggish now due to record-high household debt and

weak wage growth that’s slowed consumption and inflation.

“Wage growth remains key, as this will ultimately drive infla-tion, and it remains anemic; real wages have stagnated over the last year,” said Sarah Hunter, head of macroeconom-ics for Australia at BIS Oxford Economics. “We don’t see the cash rate rising until 2019, likely the second half of the year.”

Australian bonds are now yielding less than their U.S. coun-terparts for the first time since around the turn of the century, which is starting to weigh on the currency. The Aussie has fallen about 1.6 percent in the past month, though continued sup-port from stronger commodity prices is likely to prevent a sharp drop. In February 2001, it traded below 48 U.S. cents, but that reflected weak terms of trade as well as rate differentials.

Bill Evans, chief economist at Westpac Banking Corp., pre-dicts the U.S. federal funds rate will climb to 112 basis points

above the RBA’s cash rate in 2019. He sees the Federal Reserve raising to 2.625 percent next year and Lowe and his board remaining on hold until 2020.

“Market volatility has increased from the very low lev-els of last year,” Lowe said. “As conditions have improved in the global economy, a number of central banks have withdrawn some monetary stimulus.” He noted the Australian dollar “remains within the range that it has been in over the past two years.”

The RBA altered its language around gross domestic product in the statement, removing its more precise forecast of growth “a bit above 3 percent over the next couple of years” in favor of: “the bank’s central forecast is for the Australian economy to grow faster in 2018 than it did in 2017.”

Australia’s GDP for the final quarter of last year is due for release tomorrow. It probably slowed after a slump in exports

over the period, with coal ship-ments hampered by poor weather and related issues. At the same time, the RBA’s easy pol-icy has encouraged business investment and spurred a hiring bonanza as 400,000 new jobs were added in 2017, a record three-quarters of which were full-time.

Still, the jobless rate at 5.5 percent is about half a percent-age point off what the central bank estimates is full employ-ment, while inflation is still hovering just below the bottom of its 2 percent to 3 percent tar-get. The RBA wants to be nearer those goals before it’s ready to begin tightening, Lowe has indicated.

The central bank also noted Tuesday that house-price growth in Sydney and Melbourne has slowed. It said regulatory meas-ures have helped contain “the build-up of risk in household balance sheets, although the level of household debt remains high.”

An ibis bird seen perched next to the Reserve Bank of Australia headquarters in central Sydney, Australia, yesterday.

Under Brexit, London-based financial firms will lose their so-called passporting rights, which allow them to trade freely with other EU countries.

25WEDNESDAY 7 MARCH 2018 BUSINESS

Data fraud went on nearly 5 decades: Kobe SteelREUTERS

TOKYO: Kobe Steel Ltd admitted yesterday its data fraud has been going on nearly five decades and also revealed new cases of cheating, highlighting the chal-lenges facing the 112-year-old company mired in compliance failures and malfeasance.

Japan’s third-biggest steel-maker said its CEO will step down to take responsibility for the widespread data fraud scandal that came to light last year, although doubts remain over its corporate culture and the possibility of future fines.

Kobe Steel, which supplies steel parts to manufacturers of cars, planes and trains around the world, admitted last year to supplying products with falsified specifications to about 500 cus-tomers, throwing global supply

chains into turmoil. The company, in announcing

the results from a four-month-long investigation by an external committee, said it had also found new cases of impropriety, wid-ening the total of affected clients to 605, including 222 customers overseas.

“I feel heavy responsibility as our data falsification has caused trouble to so many cus-tomers,” the resigning CEO and chairman, Hiroya Kawasaki, told a news conference.

“I’ve offered my resigna-tion... as I think preventive meas-ures should be done under a new management,” he said.

Kawasaki will leave his post on April 1, with his successor to be decided soon by the board, the company said.

Inappropriate actions were widespread, and were carried

out with the knowledge and involvement of many, including management, the company said.

Kobe Steel also announced the resignation of Executive Vice President Akira Kaneko and temporary pay cuts for up to 80 percent of all internal directors and executive officers.

The case was one of the country’s biggest industrial scan-dals in recent memory, which set off a rash of malfeasance reve-lations by other Japanese heav-yweights, hitting the country’s reputation for manufacturing excellence.

In the past several months, Mitsubishi Materials Corp, Toray Industries and Ube Industries have also admitted to product data fabrication while auto-makers Nissan Motor and Subaru Corp have revealed incorrect final inspection procedures.

Kobe Steel said the data cheating started at least as early as the 1970s, based on testimony from multiple sources inter-viewed by the external investi-gation team.

The company mapped out various preventive measures, including setting up an external committee to oversee quality issues, but those familiar with the

company say its problems are entrenched.

“What you see is a pattern, a culture,” said Steven Bleistein, CEO of Tokyo-based consultancy Relansa. “Company culture is something that a leader creates, so the very least you have to do is to remove the leader and the people who were complicit, from the CEO downwards.”

Kobe Steel has had a series of scandals in the last dozen years, including taking part in bid-rigging for a bridge project in 2005, failing to report income to tax authorities in 2008, 2011 and 2013, and falsifying emis-sions data in 2006. Illegal polit-ical funding to candidates in local elections in 2009 also prompted the resignations of the then CEO and chairman. The data fraud scandal, though, so far appears to have left Kobe Steel’s finances unscathed. In February, the com-pany reinstated a forecast for its first annual profit in three years for the year ending March 31.

But the company is also undergoing a US Justice Depart-ment probe, meaning it still faces legal and financial risk. A Japa-nese government-sanctioned seal of quality has been revoked on some of its product as well.

“There is a pending risk for Kobe Steel as customers at home or abroad may cancel their con-tracts and take legal actions, and the US Justice Department may seek a penalty,” said Makiko Yoshimura, director at S&P Global Rating Japan.

It is unclear how much a

Justice Department fine would be. Last year, Japan’s Takata Corp agreed to plead guilty to criminal wrongdoing and pay $1bn to resolve a US Justice investigation into ruptures of its air bag inflators that were linked to more than 20 deaths worldwide.

Kobe Steel President and CEO Hiroya Kawasaki attends a news conference in Tokyo, Japan, yesterday.

S Africa economygrows 1.3% in 2017, beats expectationsAFP

JOHANNESBURG: South Africa’s economy grew by a better than expected 1.3 percent in 2017 driven by agriculture and finance, Stats SA said yesterday, beating forecast growth of 1 percent.

The improved economic performance “was partly driven by an agriculture industry bouncing back from one of the worst droughts in recent history”, it said.

“After a wobbly start to 2017, which saw economic activity contract in the first quarter, the economy saw sustained growth for the remainder of the year. The fourth quarter experienced the highest growth rate of 2017, with the economy expanding by 3.1 percent quarter-on-quarter,” Stats SA said in a statement.

The trade sector also contributed to yesterday’s good news, Stats SA added, and was the second largest contributor to fourth-quarter growth.

Jameel Ahmad, head of market research at FXTM, said the figures were a boost for confidence.“While the South African economy still has some distance to go when it comes to realising its poten-tial, if economic announce-ments can maintain this type of momentum it will increase... sentiment towards the South African economy,” he said.

South Africa’s economy has experienced sluggish growth in recent years with the jobless rate rising to 27.7 percent. In April, the country lost its investment grade credit rating when the world’s two major agencies, Fitch and Standard & Poor’s, down-graded its sovereign debt to junk status.

Their move was partly blamed on former president Jacob Zuma’s sacking of respected finance minister Pravin Gordhan in March.

Since President Cyril Ramaphosa succeeded Zuma last month, the stock market has rebounded and the local rand currency has reached its strongest level against the dollar in three years on hopes he will reform the economy.

Renault unveils futuristic carAP

GENEVA: French automaker Renault yesterday unveiled its futuristic - and funky - concept car EZ-Go, featuring a rooftop opening that allows passengers to enter by a ramp for easy access.

Envisioning smaller-scale public transport for increasingly populated cities, Renault has constructed a vehicle with a numeric display on the front and back, a bit like the screen on a bus.

The six-seater self-driving electric vehicle aims to bridge public and private transporta-tion needs, with options like on-demand pickup like by a taxi.

Passengers sit around the windows in U-shaped seating. Seemingly almost symmetrical from the side, the tail lights and the opening hatch are the main ways of telling front from back.

Presenting the vehicle, Renault Chief Operating Officer Thierry Bollore called it an “urban, ‘robo-vehicle’ electric concept that can be tailored for

public and private services.”Head of design Laurens van

den Acker floated the prospect that EZ-Go might one day become “part of a city’s calling card, like the yellow cabs in New York or the black cabs in London.”

Global carmakers are showing off a mix of low-emis-sion electric vehicles and high-end sports cars at the Geneva International Motor Show.

Many of the new offerings display the battery-electric and autonomous technology.

The Renault EZ-GO is seen during a presentation at the 88th International Motor Show at Palexpo in Geneva, Switzerland, yesterday.

China’s chief economic planner says growth target can be metAP

BEIJING: China’s top economic planner expressed confidence yesterday that stronger consumer spending will help the country meet a 6.5 percent growth target that is little changed from last year despite efforts to promote more sustainable, energy-efficient activity.

Efforts to promote domestic consumption and reduce reli-ance on trade and investment are making progress, and con-sumption could account for more than 60 percent of growth this year, He Lifeng, chairman of the National Development and Reform Commission, said at a news conference. That would be up from last year’s 58.8 percent.

The 6.5 percent growth target announced Monday would be among the world’s highest if achieved.

“It is in line with expecta-tions and objectively can be realized through hard work,” He said at the news conference, held during the meeting of Chi-na’s ceremonial legislature.

Private sector analysts say the decision to set a target again

this year indicates Chinese leaders still are concerned with the total growth figure despite saying they want to switch to other indicators such as job cre-ation and income growth. Some suggested hitting this year’s target might require Beijing to pump up activity by easing bank lending, which would set back reform efforts.

The world’s second-largest economy grew 6.9 percent last year - above the official target of “6.5 percent or higher” - but that was due partly to a boom in lending and real estate sales that regulators are trying to cool due to fears of rising debt.

“The government still set a growth target for 2018 despite the rhetoric about moving away from the speed of growth to quality of growth,” UBS econ-omists said in a report.

They noted that the official target for growth of retail sales is 10 percent, or a faster pace than the overall economy, while Beijing refrained from setting a goal for investment.

“Not setting a national target may be another sign that the central government is de-emphasizing on growth,” said the UBS economists.

ECB to underline bright outlook for eurozoneAFP

FRANKFURT: The European Central Bank could signal greater optimism for the eurozone at a meeting tomorrow, but will remain tight-lipped about plans for winding down its massive support to the economy, analysts predict.

With a transatlantic trade war looming and a populist surge in Italy’s Sunday elections that shadowed the major eurozone economy with uncertainty, ECB President Mario Draghi is unlikely to rock the boat with talk of higher interest rates or cuts to its “quantitative easing” bond-buying programme.

Observers see the ECB on the way out of its mass bond-buying scheme, after it decided to halve purchases of government and corporate debt to some ¤30bn ($37bn) per month from January this year.

Combined with historic low interest rates, bond-buying was designed to stoke economic growth in the eurozone by pumping cash through the finan-cial system, helping boost infla-tion to the ECB’s target of just below 2.0 percent -- seen as most favourable for long-term growth.

But while GDP expansion in the 19-nation single currency area surged to 2.5 percent last year, price growth has not picked up in step. In December, ECB forecasts called for inflation to hit 1.7 percent by 2020 -- still slightly short of its goal.

Indicators like business con-fidence, unemployment and credit growth “have been con-sistent with the ECB’s positive assessment” for future expansion of 2.3 percent this year and 1.9 percent in 2019, economist Fre-derik Ducrozet of Pictet bank noted. Nevertheless, “notwith-standing the ECB’s rising

confidence, the staff projections for inflation are likely to remain stable in March,” Ducrozet added.

A stable set of forecasts will not quell discord on the ECB’s 25-strong governing council, made up of the executive board and governors from the 19 member states’ central banks.

Minutes from January’s meeting showed policymakers who favour a faster dismantling of bond-buying in light of stronger growth are increasingly vocal.

They were boosted last month when executive board member Benoit Coeure judged that “in future, the eurosystem (of the ECB plus the national central banks) can retreat as a buyer” without unravelling easier financing conditions.

“The end of QE is getting closer. The risk of deflation is clearly behind us and the only question is how to moderate and

implement this exit,” analyst Carsten Brzeski of ING Diba bank said.

But the so-called “hawks” remain outvoted by “doves”: gov-ernors who think the ECB should keep fuelling the recovery until it is certain of reaching its infla-tion goal.

Compromise between the two sides to achieve a unanimous decision could produce “another cautious and very subtle step towards the QE exit,” Brzeski predicted.

The ECB may not risk removing language that prom-ises more bond-buying if the economy takes a turn for the worse from its “forward guid-ance” policy statement.

Instead, it could stress its ability to respond to shocks with a range of different tools.

A slump in global stock mar-kets in recent weeks “should not have impacted the ECB’s

assessment” of the economy, Brzeski judged, noting it had a “small impact” on confidence in the eurozone. And just last week, President Donald Trump’s vow to slap tariffs on steel and alu-minium imports into the United States threatens a tit-for-tat esca-lation with major trade partners like the European Union.

Taken to extremes, a border tax duel could threaten growth and undermine inflation.

Meanwhile, Sunday’s elec-tions in Italy produced an unclear result that will make forming a government for the eurozone’s third-largest economy difficult, with the parties that made the biggest gains promising lower taxes and higher social benefits.

That makes it less likely they will heed Draghi’s longstanding call on all euro countries to launch structural reforms, build fiscal buffers or reduce debt levels while the sun shines.

The company said it had also found new cases of impropriety, widening the total of affected clients to 605, including 222 customers overseas.

CEO will step downto take

responsibility for the data scandal


QATAR STOCK EXCHANGE

QE Index 8,429.30 0.29 %

QE Total Return Index 14,630.38 0.29 %

QE Al Rayan Islamic Index - Price 2,230.61 0.43 %

QE Al Rayan Islamic Index 3,548.60 0.43 %

QE All Share Index 2,422.74 0.18 %

QE All Share Banks &

Financial Services 2,691.72 0.17 %

QE All Share Industrials 2,694.82 0.20 %

QE All Share Transportation 1,915.31 1.33 %

QE All Share Real Estate 1,680.89 0.19 %

QE All Share Insurance 3,092.07 0.05 %

QE All Share Telecoms 1,068.21 1.35 %

QE All Share Consumer

Goods & Services 5,330.93 0.43 %

QE INDICES SUMMARY QE MARKET SUMMARY COMPARISON WORLD STOCK INDICES

GOLD AND SILVER

06-03-2018Index 8,429.30

Change 24.88

% 0.29

YTD% 1.10

Volume 8,081,072

Value (QAR) 151,428,308.10

Trades 3,228

Up 19 | Down 22 | Unchanged 105-03-2018Index 8,454.18

Change 275.88

% 3.16

YTD% 0.81

Volume 13,407,105

Value (QAR) 265,456,656.36

Trades 4,795

EXCHANGE RATE

GOLD QR155.6754 per grammeSILVER QR1.9505 per gramme

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

All Ordinaries 6061.5 65.1 1.09 6256.5 5887.3

Cac 40 Index/D 5211.19 43.96 0.85 5567.03 5051.21

Dj Indu Average 24874.76 336.7 1.37 26616.71 20379.55

Hang Seng Inde/D 30510.73 624.34 2.09 33484.08 29129.26

Iseq Overall/D 6720 108.14 1.64 7257.41 6469.04

Kse 100 Inx/D 43705.1 -123.97 -0.28 45494.52 40169.62

S&P 500 Index/D 2720.94 29.69 1.103205 2872.87 2532.69

Currency Buying SellingUS$ QR 3.6305 QR 3.6500

UK QR 5.0249 QR 5.0958

Euro QR 4.4823 QR 4.5453

CA$ QR 2.7881 QR 2.843

Swiss Fr QR 3.8560 QR 3.9109

Yen QR 0.0340 QR 0.0346

Aus$ QR 2.8115 QR 2.8675

Ind Re QR 0.0556 QR 0.0565

Pak Re QR 0.0325 QR 0.0333

Peso QR 0.0696 QR 0.0710

SL Re QR 0.0233 QR 0.0238

Taka QR 0.0435 QR 0.0444

Nep Re QR 0.0347 QR 0.0353

SA Rand QR 0.3073 QR 0.3136

INTERNATIONAL MARKETS - A LIST OF SHARES FROM THE WORLD

Aarti Drugs-B/D 591.7 -0.15 2300

Aban Offs-A/D 164.7 -2.35 129181

Acc Ltd-A/D 1590 -14.1 12516

Ador Welding-B/D 411 -9 1470

Aegis Logis-A/D 235 -10.1 17352

Alembic-B/D 62.2 -0.25 60831

Alok Indus-T/D 3.05 -0.08 419654

Apollo Tyre-A/D 259.5 0.25 110691

Asahi I Glass-/D 337.45 -4.15 6658

Ashok Leyland-/D 139.4 -0.65 1575464

Bajaj Hold-A/D 2745 39.55 6971

Ballarpur In-B/D 12.92 -0.24 1063365

Bata India-A/D 716 -1.15 12569

Bayer Crop-A/D 3851 43.4 21174

Beml Ltd-A/D 1259.4 -102.5 122794

Bhansali Eng-B/D 168.95 -5.15 142712

Bharat Bijle-B/D 1656.75 -46.7 11557

Bharat Ele-A/D 152.2 -3.1 342140

Bharat Heavy-A/D 88.2 -2.05 589357

Bharatgears-B/D 181.2 -5.4 3701

Bhartiya Int-B/D 406 -1.85 1326

Bom.Burmah-X/D 1412.5 -2.8 11083

Bombay Dyeing-/D 267.8 11.15 1347110

Camph.& All-X/D 996 -9.9 3660

Canfin Homes-A/D 534.1 -11.45 66337

Caprihans-X/D 89 -2.6 5529

Castrol India-/D 201.45 0.5 212230

Century Enka-B/D 324.8 -8.95 6482

Century Text-A/D 1180.55 -28 22311

Chambal Fert-A/D 155.45 -8.2 180606

Chola Invest-A/D 1424 -30.2 21513

Cimmco-T/D 94 -1.25 6655

Cipla-A/D 582.75 3.35 96823

City Union Bk-/D 182.85 1.9 37930

Colgate-A/D 1040 -8.5 6382

Container Cor-/D 1233.95 -47 16290

Dai-X/D 434.2 -20.5 2910

Dcm Financia-B/D 2.52 -0.13 2500

Dcm Shram Ind-/D 237.7 -5.85 19961

Dhampur Sugar-/D 165.35 -17.9 93526

Dr. Reddy-A/D 2175 -7.45 20646

E I H-B/D 165.1 -3.3 4901

E.I.D Parry-A/D 304.95 -3.75 20789

Eicher Motor-A/D 27345.9 -217.4 1529

Electrosteel-B/D 29.3 -0.85 175164

Emco-B/D 16.65 -0.6 63835

Escorts-A/D 860.25 -12.55 190072

Eveready Indu-/D 386 -8.25 5886

F D C-B/D 289 1.55 1851

Federal Bank-A/D 91.75 -1 226065

Ferro Alloys-X/D 8.83 -0.22 1455217

Finolex-A/D 655 0.25 7290

Forbes-B/D 3301.75 -78.3 1048

Gail-A/D 439.9 -3.85 81574

Garden P -B/D 36.25 -0.75 3915

Godfrey Phil-A/D 840.75 -15.7 12257

Goodricke-X/D 334.2 -21.25 51124

Goodyear I -B/D 1184.35 -2.85 8529

Hcl Infosys-A/D 57.25 -3.35 561931

Him.Fut.Comm-A/D 28.3 -0.7 974173

Himat Seide-X/D 349.95 2.2 3564

Hind Motors-T/D 8.54 -0.12 64322

Hind Org Chem-/D 23.6 -0.1 34895

Hind Unilever-/D 1293.95 -6.55 265822

Hind.Petrol-A/D 365.4 -1.15 144191

Hindalco-A/D 225.9 -4 2611507

Hous Dev Fin-A/D 1762.05 -28.45 149059

Idbi-A/D 82.5 -1.9 11139121

Ifb Ind.Ltd.-B/D 1331 -32.5 15316

Ifci Ltd-A/D 21.65 -0.65 569452

India Cement-A/D 149 -4.3 275225

India Glycol-B/D 483.35 -20.75 51617

Indian Hotel-A/D 133.75 -0.4 34847

Indo-A/D 97.7 -1.1 38311

Indusind-A/D 1707.1 20.35 39456

J.B.Chemical-B/D 305.65 -11.7 6782

Jagatjit Ind-X/D 89 3 2455

Jagson Phar-B/D 30.1 -0.65 3398

Jamnaauto-B/D 78.55 -0.05 301365

Jbf Indu-B/D 150 2.7 13474

Jct Ltd-X/D 3.13 -0.03 179819

Jindal Drill-B/D 159.1 -1.1 2036

Jktyre&Ind-A/D 155.5 -1.45 78245

Jmc Projects-B/D 554.75 -11.05 6834

Kabra Extr-B/D 125.5 0 3306

Kajaria Cer-A/D 558 -6.65 16351

Kakatiya Cem-B/D 288 -2.05 1688

Kalpat Power-B/D 468.2 -7.8 9710

Kalyani Stel-B/D 296.85 -5.25 6076

Kanoria Chem-B/D 76.05 -0.65 10727

Kg Denim-X/D 57 -0.65 12825

Kilburnengg-X/D 79.4 -2.25 17317

Kinetic Eng-Xt/D 74 -1.5 8687

Kopran-B/D 65.3 -1.9 25947

Lakshmi Elec-X/D 647.5 -2.85 2106

Lakshmi Mach-A/D 6460 -119.8 1179

Lloyd Metal-X/D 15.4 -0.6 21072

Lupin-A/D 775.05 -16.8 155219

Lyka Labs-B/D 55.6 -0.25 12564

Mafatlal Ind-X/D 277.15 -3.85 9037

Mah.Seamless-B/D 457.2 -4.1 2472

Mangalam Cem-B/D 317 -5.3 15048

Maral Overs-B/D 36.35 -0.5 8000

Mastek-B/D 481.35 -11.3 38534

Max Financial-/D 489 5.4 26735

Mrpl-A/D 115.35 1.95 125916

Nahar Spg.-B/D 100.35 -3.15 12878

Nation Alum -A/D 62.3 -1.65 1130887

Navneet Edu-B/D 139.6 6.7 16334

Nrb Bearings-B/D 151.75 -5.35 7791

O N G C-A/D 185.25 -0.25 204157

Oil Country-B/D 40 -1.1 3970

Onward Tech-B/D 99.15 -2.45 33062

Orchid Pharm-M/D 15.5 -0.6 64742

Orient Hotel-B/D 48 -1.7 13540

Patspin India-/D 21.05 -0.45 2834

Radico Khait-A/D 320.4 -20.25 165519

Rallis India-A/D 227 -2.8 11684

Rallis India-A/D 227 -2.8 11684

Reliance Indus/D 443.1 -8.95 61400

Ruchi Soya-B/D 18.05 -0.3 343183

Samtel-T/D 1.79 -0.09 6000

Saur.Cem-X/D 75.35 -0.8 39678

Sterling Tool-/D 390 -4.3 1279

Tanfac Indu-Xt/D 123.45 -6.45 9076

Tanfac Indu-Xt/D 123.45 -6.45 9076

Thirumalai-B/D 1957.8 -12.2 10436

Timexgroup-T/D 47.8 -0.65 23897

Tinplate-B/D 218.8 -4.55 157212

Ucal Fuel-B/D 261.35 -7 14998

Ucal Fuel-B/D 261.35 -7 14998

Ultramarine-X/D 318 -9.7 12161

Unitech P -B/D 6.73 -0.24 4128107

Univcable-B/D 138.25 -0.55 2696

3I Group/D 931.6 9.6 249215

Assoc.Br.Foods/D 2598 8 289893

Barclays/D 211.85 4.65 14566607

Bp/D 475.8 5.65 6828980

Brit Am Tobacc/D 4235 14 725688

Bt Group/D 239.8 1.4 3199477

Centrica/D 141.8 -0.25 5261664

Gkn/D 426 0.1 2922238

Hsbc Holdings/D 706 4 5134406

Kingfisher/D 352.2 5.1 1159690

Land Secs./D 918.1 -3.3 242731

Legal & Genera/D 260.6 4.1 3906414

Lloyds Bnk Grp/D 67.21 0.21 31315289

Marks & Sp./D 289.8 1.6 2751150

Next/D 4786 54 203881

Pearson/D 738 9.4 588035

Prudential/D 1823.5 26 931597

Rank Group/D 222 0 4639

Rentokil Initi/D 260.1 -0.9 2412661

Rolls Royce Pl/D 838.8 19.4 761500

Rsa Insrance G/D 621 6 577252

Sainsbury(J)/D 248.7 -4.2 4661514

Schroders/D 3399 31 43076

Severn Trent/D 1752.5 17 219574

Smith&Nephew/D 1297 8 1149584

Smiths Group/D 1585.5 17.5 131162

Standrd Chart /D 788.1 13 1198411

Tate & Lyle/D 570 7.2 691237

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LONDON

US Interior Secretary Ryan Zinke on Monday announced he has postponed a second federal oil and gas lease sale planned for March in less than a week in

response to local opposition to the possibility of drilling near national parks and monuments.

Zinke took to Twitter to announce the Interior’s Bureau of Land Management (BLM) will remove 17,300 acres out of the planned March 13 sale of 63,496 acres of federal land for oil and gas leases near the tourist city of Livingston, Montana, which is a gateway to the Yellowstone National Park.

“After talking with residents and local, state and federal officials, we have decided to defer the oil and gas sale around Livingston,” Zinke wrote.

The remaining 83 parcels, which cover over 46,000 acres, will be offered for lease via an online auction as planned. The leases last for 10 years.

Zinke’s announcement came just four days after he made a similar surprise statement to the

Albuquerque Journal, postponing an oil and gas lease sale planned for March 8 near New Mexico’s Chaco Canyon, a Unesco world heritage site

which contains numerous Anasazi ruins.

“We’re going to defer those leases until we do some cultural consultation,” Zinke told the newspaper.

BLM, which oversees federal oil and gas leases, received over 120 protests to the sale and said it will complete an analysis of over 5,000 cultural sites before it proceeds.

In just over a year in office, the Trump administration has

taken numerous steps to expand and speed up energy development on federal land.

The BLM last month quietly removed Obama-era reforms to the leasing of federal land for oil and gas drilling in a move to “simplify and streamline” the process to speed up permitting of new lease sales. The move removed a policy aimed at including input from environmentalists and local tourist industry groups in the process of leasing federal land for drilling, which the oil and gas industry said was time-consuming and redundant.

Environmentalists said the change in policy means that places such as Livingston need to rely on lawyers to help them win a last-minute pardon.

“The Trump Administration could have avoided this debacle if they hadn’t eliminated policies that guarantee local communities a voice in where drilling should and shouldn’t happen,” said Kate Kelly, public lands director at the Center for American Progress. In southeastern Utah, local environmental and archaeological groups have protested a March 20 auction of around 57,000 acres near the former boundaries of the Bears Ears National Monument - reduced by 85 percent last year by President Donald Trump - that is known to contain significant cultural sites.

Zinke has not yet signaled whether he plans to delay that sale. Kathleen Sgamma, president of industry group the Western Energy Alliance, said Zinke likely felt pressure from communities that “aren’t used to development how it’s done responsibly to protect the environment while coexisting with recreation.”

US Interior chief holds off on federal oil lease sale after local outcry

Kuroda’s tough task: Navigating the long road toward stimulus exitVALERIE VOLCOVICI

REUTERS

LEIKA KIHARA REUTERS

WHEN Bank of Japan Governor Haruhiko Kuroda spooked markets last week with

talk of winding down the bank’s crisis-mode stimulus, he was describing a goal on the distant horizon - not warning of an imminent shift, say sources familiar with his thinking.

But they say starting discussion of an exit from ultra-loose policy is seen as crucial given the rising cost of easing and the need to give Japanese policymakers some ammunition in case there is another crisis.

Kuroda’s comments - and those of a future deputy - show how the central bank is softening up investor opinion in advance of what will be one of the priorities of his second term as bank governor.

“It’s a tricky process that could take years,” said one of the sources familiar with the central bank’s thinking. “The timing of an actual lift-off really depends on how inflation performs.” To underscore that the central bank is in no rush to dial back

stimulus, Kuroda said his top priority would be to meet his 2 percent inflation target, noting that current inflation, at 0.9 percent in January, remained far from that goal.

The bank must also balance how its moves will be viewed domestically versus globally.

Japanese investors saw Kuroda’s remarks as stating the obvious

and barely reacted. Overseas investors reacted more strongly, selling bonds and buying yen as they speculated stimulus would end sooner rather than later.

The Bank of Japan is already well into what analysts call “stealth tapering” as it slows annual bond buying to nearly half the pace it loosely pledges.

“The biggest challenge Kuroda faces in his second term is how to unwind the unconventional steps he took in the first five years,” said Takahide Kiuchi, who served at the BOJ board until July.

The yen and Japanese bond yields spiked on Friday when Kuroda told parliament there was “no doubt” the BOJ would “consider and debate” an exit if inflation hits his target during the fiscal year that runs from April 2019 to March 2020.

Masayoshi Amamiya, slated to become one of Kuroda’s two deputies this month, echoed those comments on Monday.

“If the time comes, we’re quite capable technically to gradually and

stably adjust interest rates while ensuring markets remain stable,” he told parliament during a confirmation hearing.

The sources warn against reading too much into those remarks, noting that the threshold for even debating an exit remains high. Although the central bank’s board predicts inflation will hit 2 percent during fiscal 2019, a Reuters poll showed market economists expect inflation to stay at half that level. Fears of triggering an unwelcome yen rise that could dent Japan’s export-reliant recovery will also shape how the bank discusses an exit strategy.

“If inflation indeed reaches 2 percent, it’s feasible to at least debate an exit. That’s different from saying the BOJ will proceed with an exit immediately,” said a second source who, like the others interviewed for this article, declined to be identified because he was not authorised to speak to the media.

But waiting too long could leave the Bank of Japan with few tools to deal with a future recession.

After three years of heavy asset buying failed to ignite inflation, the bank in 2016 revamped its policy framework to focus on interest rates.

The result was short-term rates below zero, at minus 0.1 percent, and a 10-year government bond yield around zero percent.

The central bank still buys bonds at an annual pace of roughly 50 trillion yen ($471.56bn). It has scooped up 40 percent of the 980 trillion yen Japanese government bond market, roughly the same percentage held by private Japanese banks.

But inflation has remained

stubbornly low.Among the few remaining

options would be a further rate cut, though many analysts say such a step would do little to spur growth and could backfire by hurting already-thin bank margins.

“Financial institutions are seeing their profits hit, so the BOJ should abandon negative rates,” opposition lawmaker Akio Fukuda told Amamiya in the confirmation hearing on Monday. “I fear we’ll face a terrible situation unless the BOJ heads toward an exit quickly.” Kuroda said last week the bank’s future policy would take into account growing calls from the public for a credible exit strategy and the impact of its policy on the country’s banking system.

He has said the central bank could also raise its yield target before inflation hits 2 percent, which the bank could present as fine-tuning of stimulus efforts rather than the start of a full-blown policy tightening.

“Kuroda no longer says it’s premature to debate an exit. This is a clear change,” a third source said.

The sources say additional groundwork for the exit could be as subtle as different word choices and changes in tone by central bank policymakers.

But there is uncertainty whether markets would respond to such subtle messages as hoped, posing a huge communication challenge for Kuroda as he heads into his second five-year term in April.

“Kuroda is already softening his stance by allowing bond purchases to slow. He’s effectively already normalising policy,” said Kiuchi, the former Bank of Japan board member.

MARIO Draghi has just received a triple whammy of evidence to justify

playing it safe when he meets with fellow European Central Bank policy makers this week.

US President Donald Trump’s plan to impose tariffs on foreign steel and aluminum has raised the specter of a global trade war, and the anti-establishment surge in Italy puts a question mark over the political outlook for one of the euro area’s biggest and most-indebted economies. Meanwhile, the upswing in the 19-nation bloc may be hitting a speed bump.

The burst of negative news ahead of the ECB’s March 8 policy meeting strengthens the argument repeatedly made by

President Draghi that officials must be patient and persistent in providing stimulus. It may also undercut those on the Governing Council who have pushed for a change in the central bank’s language to signal the end of asset purchases is nearing.

“We remain in a period that will last for another 12 months -- give or take -- when if any kind of shock happens, whether it’s political or economic, then the ECB will err on the side of dovishness,” said Rupert Watson, head of asset allocation at Mercer Ltd. in London. “Draghi is very clear that monetary stimulus will remain until it is absolutely not necessary.”

At the ECB’s previous policy meeting in January, officials acknowledged the euro area’s robust economic expansion, while also pointing to downside risks relating to geopolitical

uncertainties and, specifically, to an increase in protectionism.

Trump crystallized one of those risks over the weekend when he threatened to tax European cars if the bloc retaliates against his tariff plans by slapping duties on selected US products.

The European Commission has proposed import charges on US steel, apparel, footwear and selected industrial goods worth $3.5bn, according to draft list seen by Bloomberg. The list includes motorbikes and bourbon whiskey.

“Draghi is likely to err on the side of caution at the meeting of the Governing Council on March 8. The next major change to forward guidance probably won’t materialize until June -- only concessionary tweaks are likely this month. Investors are already on edge, with Sentix’s gauge of euro-area sentiment

dropping to the lowest in almost a year. Indicators for the 19-nation region’s economic activity have also weakened. Manufacturing and services grew the slowest in four months in February and business confidence declined.

“These new economic question marks reduce the pressure on the ECB to tighten its monetary-policy reins,” said Manfred Huebner, managing director at Sentix.

A Bloomberg survey last week showed economists no longer predict the ECB will change its guidance on future policy this week, delaying the adjustment until June.

Since then, the Italian election created another obstacle. The vote put two anti-establishment parties in pole position to lead a future government, with Matteo Salvini, the leader of the

anti-migrant League, already predicting the demise of the euro area.

“Draghi is not in a hurry to change anything,” said Nick Kounis, an economist at ABN Amro Bank NV in Amsterdam. “Making significant adjustments to their communication right now could cause confusion and they would be better off to wait until they are ready to taper.”

Draghi given triple whammy of reasons to demand ECB patiencePIOTR SKOLIMOWSKI BLOOMBERG

BLM, which oversees federal oil and gas leases, received over 120 protests to the sale and said it will complete an analysis of over 5,000 cultural sites before it proceeds.

The central bank still buys bonds at an annual pace of roughly 50 trillion yen ($471.56bn). It has scooped up 40 percent of the 980 trillion yen Japanese government bond market.

Trump crystallized one of those risks over the weekend when he threatened to tax European cars if the bloc retaliates against his tariff plans by slapping duties on selected US products.

The European Commission has proposed import charges on US steel, apparel, footwear and selected industrial goods worth $3.5bn.

27WEDNESDAY 7 MARCH 2018 BUSINESS VIEWS

Bank Of Japan (Boj) Governor Haruhiko Kuroda Attends A Lower House Budget Committee Session At The Parliament In Tokyo, Japan, In This File Picture.

28 WEDNESDAY 7 MARCH 2018

INsightback to BUSINESS

CAPITALCOMMENT

Market TalkNAME IN THE MARKET: WOMEN RUNNING FOR OFFICE IN US

VW predicts diesel comeback as Toyota drops technologyGENEVA/BLOOMBERG

Toyota Motor Corp. announced plans to drop diesel models from its

European portfolio this year even as Volkswagen AG, which sparked the fury over the tech-nology, predicts a rebound.

The diverging views of the world’s two largest automakers reflects the uncertainty over the future of diesel, which has faced a steady drumbeat of bad news since Volkswagen’s cheating scandal erupted in September 2015. The German auto giant is expecting consumers to forgive and forget soon, as cleaner die-sels hit the streets.

“Diesel will see a renais-sance in the not-too-distant future because people who drove diesels will realize that it was a very comfortable drive concept,” Chief Executive Officer Matthias Mueller said at the Geneva International Motor Show. “Once the knowledge that

diesels are eco-friendly firms up in people’s minds, then for me there’s no reason not to buy one.” The comments are bold considering Volkswagen put aside about $30 billion in pro-visions to cover fines, retrofits and legal costs stemming from rigging diesel-emissions systems to dupe government pollution tests.

The fallout has been wide ranging. Germany is now con-sidering potential bans of diesel vehicles from cities, and govern-ments including China, France and the U.K. have put in place plans to phase out the internal combustion engine. Consumers have also begun to shun diesel, with its share of German car sales tumbling to a third from half since VW’s cheating scandal.

In contrast to VW’s upbeat prognosis, Toyota is getting rid of diesels in Europe, the main market for the technology. After refraining from a diesel variant

of the C-HR crossover in 2016, Toyota will extend that decision across its portfolio, including offering the redesigned Auris compact with two hybrid pow-ertrains and one turbocharged gasoline engine.

There’s more at stake than consumer choice. European car-makers have been counting on diesel -- a profitable and fuel-efficient alternative to gasoline vehicles -- to meet tighter envi-ronmental regulations until electric cars become more viable.

Diesel vs Electric “We need diesel to get to the CO2 goals,” Herbert Diess, who heads Volkswagen’s namesake mass-market brand, said after presenting the all-electric I.D. Vizzion concept car that’s capa-ble of driving as far as 650 kilometers (404 miles) on a sin-gle charge. “Electric vehicles in many cases won’t keep frequent drivers happy.” While Ford Motor Co. still backs diesel, the

technology’s role may be further diminished by tighter environ-mental rules, as regulators target the fuel’s emissions of smog-causing nitrogen oxides, according to Steven Armstrong, chief of the automaker’s Euro-pean operations.

“We still see a future for die-sel, although on some smaller vehicles I do believe it will pro-gress ively d isappear ,” Armstrong said in an interview with Bloomberg Television. “We have to work hard to gain con-sumer trust to make sure they believe the messaging” that new diesels are clean.

Toyota, a pioneer in hybrid technology, has had doubts about diesel’s ability to meet modern environmental rules since 2011, Didier Leroy, executive vice pres-ident at Toyota, said in Geneva. Now, there’s a risk to consumer sentiment, with a “real potential” for driving bans to hit diesel cars in European cities beyond Ger-many, he said.

Eurozone bond yields rise as trade war fears ebb, ECB in focusLONDON/REUTERS

Eurozone bond yields rose on Tuesday as fears of a glo-bal trade war ebbed, taking the shine off safe-haven debt as eyes turned to this week’s ECB meeting for

clues as to how and when the bank will withdraw its hefty stimulus programme.

Italy’s government bonds steadied after a selloff on Monday, sparked by a surge in support for anti-estab-lishment parties in Sunday’s inconclusive national election.

As investors awaited further news on the make-up of the next government in Italy, the euro zone’s third big-gest economy, Thursday’s European Central Bank meeting shifted into focus.

Policymakers are likely to discuss dropping their easing bias - a stipulation that asset buys could be increased if necessary - but a broader revision of the bank’s policy guidance is likely to happen later, possibly

during the summer, sources close to discussions told Reuters last week.

A strong economy means the ECB is widely expected to end its 2.55 tril-lion euro stimulus scheme by year-end, confident that inflation will at some point rise slowly.

“The ECB is going to be presenting growth forecasts that are likely to be stronger, but will be at pains to stress that the move away from monetary easing will be del-icately done and slowly,” said Peter Chatwell, head of euro rates strategy at Mizuho.

Low inflation remains a key reason for the cautious stance. Data last week

showed euro zone inflation slowed to a 14-month low at 1.2 percent, and a key market gauge of long-term expec-tations on Monday dipped below 1.70 percent to its lowest level this year.

Most bond yields across bloc were up 1-2 basis points. Germany’s benchmark 10-year Bund yield was up 2 bps at 0.65 percent, pushing away from five-week lows hit on Monday at around 0.60 percent.

Investor worries about an imminent trade war eased as U.S. President Donald Trump faced growing pressure from political allies to pull back from proposed steel and aluminium tariffs. That boosted stock markets and dented demand for fixed income.

Italy’s 10-year bond yield was steady at around 2.08 percent, allowing the gap over German peers to narrow to 143 bps after a brief, sharp widening following Sun-day’s election.

Analysts have been surprised by the relatively sub-dued bond market reaction to the ballot, predicting uncertainty about the make-up of the next government would likely weigh on Italian bonds in the coming weeks.

The pricing that Airbus has offered in the past is

unacceptable to us.Willie WalshCEO of International Airlines Group

EU blacklist of tax havens set to shrinkREUTERS

BRUSSELS: European Union states are set to remove Bahrain, the Marshall Islands and Saint Lucia from an EU list of tax havens next week, leav-ing only six jurisdictions on the list, three months after it was set up, an EU document shows.

The move is likely to bring more disapproval from lawmakers and activists who had strongly criticised a first delisting in January that nearly halved the number of listed jurisdictions to nine from 17.

The new delisting decision was taken by the EU Code of Conduct Group, which includes tax experts from the 28 mem-ber states, according to an EU document seen by Reuters.

EU finance ministers are expected to endorse the pro-posal at their regular monthly meeting in Brussels on March

13. The six jurisdictions that remain on the blacklist are American Samoa, Guam, Namibia, Palau, Samoa and Trinidad and Tobago.

Bahrain, the Marshall Islands and Saint Lucia were delisted after they made “spe-cific commitments” to adapt their tax rules and practices to EU standards, the document says. Those commitments are not public.

In January, EU govern-ments decided to remove from the blacklist Barbados, Gre-nada, South Korea, Macao, Mongolia, Tunisia and the United Arab Emirates and Panama.

The delisting of Panama caused particular outcry. The EU process to set up a tax-haven blacklist was triggered by the so-called Panama Papers, a publication of confi-dential financial documents that showed how wealthy

individuals and multinational corporations use off-shore schemes to reduce their tax bills.

Ministers said the January delisting was a sign that the process was working as coun-tries around the world were agreeing to adopt EU standards on tax transparency.

All delisted countries have been moved to a so-called grey list, which includes dozens of jurisdictions that are not in line with EU standards against tax avoidance but have committed to change their rules and practices.

Countries on the grey list can be moved back to the blacklist if they fail to respect their engagements.

Blacklisted jurisdictions could face reputational damages and stricter controls on their financial transactions with the EU, although no sanctions have been agreed by EU states yet.

Low inflation remains a key reason for the cautious stance. Data last week showed euro zone inflation slowed to a 14-month low at 1.2%, and a key market gauge of long-term expectations on Monday dipped below 1.70%.

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