WEDNESDAY 20 JANUARY 2021

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IMF urges Germany to keep economy on pandemic support The government is still adding aid so that we can get off to a powerful start again after the crisis.

BUSINESS | 03Olaf Scholz Finance Minister of Germany

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Business

Masraf Al Rayan net profit reaches QR2.175bn in 2020THE PENINSULA — DOHA

Masraf Al Rayan has reported a net profit of QR2.175bn for the year ended December 31, 2020. The Board of Directors met yesterday and proposed to distribute a cash dividend of QR0.170 per share, equivalent to 17 percent of the paid-up capital. The proposed dividend is subject to approval by the Ordinary General Assembly, to be held on March 2, 2021, and Qatar Central Bank (QCB).

Chairman and Managing Director of Masraf Al Rayan, H E Ali bin Ahmed Al Kuwari, said: “Year 2020 was excep-tional by all standards; and we are happy to have successfully passed that stage. The previous year witnessed unprecedented events; the COVID-19 pandemic which hindered economic activity and the movement of indi-viduals in general which affected global markets, in addition to the decline in energy prices to record numbers as a result of low demand, the caution in the markets and the decrease in liquidity, as well as the negative results of global growth such as high cost of borrowing and the calculation of higher rates of allocations as a precautionary measure."

"However, our insistence was great at Masraf Al Rayan to face these diffi-culties and come up with the best

results, relying on the strength and durability of the Qatari economy, and government measures that were sup-portive of all economic activities, so we hope that we have succeeded in that”.

Al Kuwari added that the recom-mendation of the Bank’s Board of Directors to distribute QR0.170 per share to the shareholders is the best evidence to proper performance of the Bank and the remarkable efforts made by its executive management and staff amid the pandemic.

Group CEO of Masraf Al Rayan, Adel Mustafawi considered the results

as good, and reiterated that Masraf Al Rayan, in its com-mitment to the strategy approved by the Board of Directors, has maintained its credit rating. The Bank has also maintained its position amongst banks in the State of Qatar, and maintained its financial indicators ratios; while achieving the lead in terms of operational efficiency

and a low ratio of bad debts, he added. Mustafawi added that the Bank’s

total assets grew by 13.8 percent to QR121.115bn from QR106.397bn as of December 31, 2019. Financing activ-ities reached QR85.983bn, compared to QR74.837bn as of December 31, 2019, recording a growth of 14.9 percent. Masraf Al Rayan’s investments reached QR21.120bn as of December 31, 2020.

Mustafawi added that customer deposits in the Bank increased by 5 percent to QR68.918bn from QR65.613bn as of December 31, 2019.

Total shareholders’ equity (before dis-tribution) reached QR14.365bn, com-pared to QR13.919bn at the end of 2019, an increase of 3.2 percent.

Masraf Al Rayan continues to focus on improving its products and pro-viding integrated financing solutions

compatible with the provisions of Islamic law to individual and corporate customers alike, through its various products. The Bank is also committed to implementing the provisions of Law No. (20) of year 2019 regarding com-bating money laundering and com-bating the financing of terrorism; taking into account both the executive regulations of the law and the instruc-tions of the Qatar Central Bank in this regard.

The Bank gives utmost impor-tance to the development of its employees, with a focus on devel-oping the Qatari cadre in line with Masraf Al Rayan’s strategies. In com-pliance with the requirements of the QCB, the Bank’s Training and Devel-opment Department has also organised a mandatory training program on “Combating Financial Crimes” aimed at providing the employees with knowledge and skills related to money laundering, ter-rorism financing and combating fraud, bribery and corruption.

Group CEO of Masraf Al Rayan, Adel Mustafawi

Chairman and Managing Director of Masraf Al Rayan, H E Ali bin Ahmed Al Kuwari

H E Ali bin Ahmed Al Kuwari said: Year 2020 was exceptional by all standards; and we are happy to have successfully passed that stage. The previous year witnessed unprecedented events; the COVID-19 pandemic which hindered economic activity and the movement of individuals in general which affected global markets.

QC processed 52% transactions online in 2020THE PENINSULA — DOHA

Qatar Chamber General Manager, Saleh bin Hamad Al Sharqi said yesterday that the chamber processed 52 percent transactions online last year. The chamber processed about 68,369 transactions in 2020, of which 35,274 transactions were proc-essed online.

He also noted that about 35086 certificates of origin, of which 17637 issued online, accounting for 50.3 percent of the total number of certificates of origin.

In 2020, about 52 percent of the Chamber’s transactions were implemented online through the website. The Chamber has achieved significant progress in its electronic services and further developed its technological infra-structure with the aim to streamline services and transac-tions for its members. In press statements, Al Sharqi also said that a total of 2,189 new member com-panies joined Qatar Chamber in 2020, taking it total membership to more than 62,247.

He pointed out that the

Chamber held more than 110 events last year, whether at the Chambers headquarters or through visual communication technology, indicating that it hosted nine commercial delegations,

“During 2020, Qatar Chamber hosted nine trade and business delegations from several countries, such as Brazil, Turkey, Bangladesh, New Zealand, Ethiopia, Mexico and Azerbaijan, and others. These meetings discussed enhancing cooperation between Qatari

businessmen and their counter-parts in the various countries of the world. They reflected the international interest in the investment climate in Qatar and confidence in the Qatari economy,” he added.

Elaborating the Chamber’s activities last year, Al Sharqi said that it held meetings with foreign officials and representatives of ministries and chambers to help Qatari businessmen learn about the investment opportunities available in these countries, citing it also hosted meetings with

officials of concerned authorities in the state to review matters related to the private sector, such as a meeting with the CEO of the Investment Promotion Agency (IPA) and a meeting with the Indian External Affairs Minister Dr S Jaishankar.

The Chamber held about 19 seminars and forums, including Qatar Chamber SMEs Con-ference, Public-Private Part-nership Conference, Qatar-Germany Business Forum, Sup-porting Local Manufacturers Forum, Qatar-Turkish Business Forum, Qatar-Kuwait Business Forum, a seminar on the joint labour committees, a seminar with officials of QDB to brief the Chamber’s board members on the bank’s strategy in sup-porting the services exports, a series of workshops to raise the awareness on the services offered by the Ministry of Administrative Development, Labour and Social Affairs and a meeting with officials of the Ministry to review demands and grievances of businessmen regarding amendments to the labour law. �P2

Headquarters of Qatar Chambers.

Doha Festival City to open more stores this yearSACHIN KUMARTHE PENINSULA

Aiming to broaden its range of offerings to shoppers, Doha Festival City will expand its portfolio of retailers this year by opening new stores in the next few months. Doha’s largest entertainment, fashion and dining desti-nation also plans to host a series of exciting events for customers and will also open mini-golf area at the mall.

“In total, 26 new ten-ancies opened in 2020, and 27 more are set to open by early 2021. We have opened new chocolate-focused shops and outlets, including Swiss Laderach, Jasmine, Maia Chocolates, while Choco Melt will soon join the mall. Papa John’s Pizza and White Sugar have already opened their doors,” said Doha Festival City’s General Manager, Robert Hall addressing a virtual press briefing held yes-terday. During the briefing, he listed Doha Festival City’s achievements in last year and plans for 2021.

The mall will soon open Mini Golf at which will be open to all kids and adults. “Soon we will open a dedicated 450-square-metre mini-golf area is open near Café Ladurée on the first floor of the Mall, every day from 2pm. To participate, shoppers will need to register and pur-chase a ticket for QR30 each,” said Hall. Visitors will also get a chance to know about the latest tech products and trends.

“We partnered with interna-tional tech companies estab-lished in Qatar to showcase the major trends and tech products available at Doha Festival City including Fnac and Geek Nation. Doha Festival City will also organize tech programs and panel discussions with Tech experts that will be live-streamed on the Mall’s Youtube

channel,” he said.The mall will launch a gift

card, which customers will be able to use the card across more than 430 DHFC retailers, three Leisure entertainment parks and more than 100 food outlets.

The cards will provide numerous benefits, serving as customers’ recognition system that will allow them to access promotional and reward redemption offers, and various loyalty program schemes. The card’s load level starts at QR50 and goes up to the maximum of QR5000. Non-refundable and non-reloadable, the card will be valid for 24 months.

A lot will be happening in the field of art and culture. “Last Friday, we inaugurated our very first International Fes-tival, starting with the interna-tional art festival with a range of exhibitions and events across then followed with interna-tional Tech and Food show-casing brands and partners from all over the world on Feb-ruary 1,” he said. �P2

In total, 26 new tenancies opened in 2020, and 27 more are set to open by early 2021. We have opened new chocolate-focused shops and outlets, including Swiss Laderach, Jasmine, Maia Chocolates, while Choco Melt will soon join the mall.

Robert Hall, GM of Doha Festival City

Demand for gold remains firm despite high pricesDEEPAK JOHN THE PENINSULA

The year 2020 was a good period for gold but not so good for its consumers as the prices of yellow metal have surged by around 27 percent in the past one year. But, soaring prices have failed to dent the customers’ affection for gold.

In January 2020, a gram of 24-carat gold in Qatar was QR178 while its price increased to QR226 per gram, yesterday, showing a rise of QR48 while a gram of 22-carat gold was QR212 yesterday as against QR162 in January 2020. Gold was trading at QR150 per gram on January 1, 2019.

However, gold prices have cooled down marginally in the last two weeks. The 24-carat gold was trading at QR239 per gram and 22-carat was at QR224 at the start of this year.

“People buy gold for various purposes throughout the year. The customers

normally buy gold coins, bars, and exchange jewellery too but the demand for purchasing new jewellery and designs go up during special occasions,” a sales executive at a gold showroom told The Peninsula. “These days there is more demand for jewellery and ornaments compared to gold coins and bars,” he added. “Though these are trying times for the gold shops and our businesses due to COVID-19 pandemic, we have hopes to overcome it. We hope people will con-tinue to buy gold items,” he said.

The price of 8 gram gold coin was QR1696 yesterday. Some people tend to buy and keep gold coins for future to make ornaments of their own design. The 10 grams gold bar was QR2347 yesterday, which is used as an investment to be sold when the prices go up.

Gold prices have shown an upward trend because of the uncertainty in global economy. The COVID-19 outbreak is one of the major reasons for this. A weaker

dollar fuels demand of gold by making it cheaper for holders of other currencies.

Gold is an asset which may be used in tough times for profit when the market rate shoots up. In times of a crisis, investors globally view gold as a safe haven which increases its demand. Although, gold prices rose it did not dis-courage buyers who look forward making fresh purchase amid different occasions.

According to experts, the price of the yellow metal is expected to remain high globally in coming months ahead because of global factors. Gold has edged higher after US President-elect Joe Biden unveiled a $1.9 trillion stimulus package proposal on Thursday and the Federal Reserve issued a dovish outlook at least for the next one year. Also, Fed Chairman Jerome Powell downplayed the risk of higher inflation and talk of the central bank tapering its bond purchases in the near term.

02 WEDNESDAY 20 JANUARY 2021BUSINESS

Doha Festival City to openmore stores this year

FROM PAGE 1

The first exhibition, the International Art Exhibition, currently being held at Centre Court on the Ground Floor, is a creative space for local and international artists to come together, exhibit and explore arts collections.

The exhibition is open between 2 and 10 pm every day until the end of February. Pieces by artists of different nationalities, including Qatar, Mexico, Egypt, Pakistan, US, France, Iran, Uruguay, Honduras, Russia, India, Egypt, Venezuela, Syria, Lebanon, Panama, Sudan, Sri Lanka and Ethiopia, are exhibited in the framework of the Art Festival. The International Festival will run until the end of February.

Hall said that Angry Birds World, Virtuocity and Snow Dunes, have opened their doors two weeks ago, and are now opera-tional with capacity restrictions as set by the authorities.

A new play and edutainment center ‘Spark Sense and Play’ has opened in Doha Festival City as well. “Doha Festival City’s strategy gives a particular importance to kids’ leisure and edutainment. “Spark Sense and Play” is hosting toddlers and children from 6 months to 10 years old, and offers a range of activ-ities aimed at enhancing children’s potential through art and play in an inclusive environment, equally open to children with disa-bilities,” he added. Caboodle, Doha Festival City’s indoor play centre for children and families, has also reopened for workshops and organized activities only.

Qatar’s IPI decreases by9.8% in November 2020THE PENINSULA — DOHA

Qatar’s Industrial Production Index (IPI) for November 2020 stood at 91.2 points, showing a decrease of 9.8 percent compared to the previous month (October 2020). When compared on year-on-year basis, the IPI index has decreased by 10.1 percent compared to the corresponding month of 2019, data released by the Planning and Statistics Authority show.

The index of Mining sector showed a decrease by 11.8 percent compared to the previous month (October 2020), as a result of the decrease in the quantities of “crude oil petroleum and natural gas” by 11.8 percent, while “Other mining and quarrying” showed an increase by 5.6 percent. When compared to the corresponding month of the previous year (November 2019), the IPI of Mining decreased by 11.5 percent.

The index of Manufacturing sector showed an increase of 1.0 percent recorded in November 2020 compared to the previous month (October 2020), which refer to increase in the following groups: “Manufacture of refined petroleum products” by 34.9 percent, followed by “Manu-facture of basic metals” by 4.7 percent, “Manufacture of Cement and other non-metallic mineral products” by 2.6 percent, and “Printing and reproduction of recorded media’’ by 1.1 percent. However, a decrease was recorded in four groups: “Manu-facture of food products” by 6.0

percent, followed by “Manu-facture of chemicals and chemical products” by 5.6 percent, “Man-ufacture of beverages” by 4.9 percent, and “Manufacture of rubber and plastics products” by 4.8 percent.

On the other hand, in terms of annual change, comparing to November 2019, a decrease of 3.7 percent was recorded, affected by the following groups: ‘’Printing and reproduction of recorded media’’ by 80.4 percent, followed by “Manufacture of basic metals” by 12.1 percent, “Manufacture of beverages” by 11.5 percent, “Man-ufacture of food products” by 5.1 percent, “Manufacture of refined petroleum products” by 4.1 percent, and “Manufacture of chemicals and chemical products” by 1.7 percent.

However, an increase was recorded in “Manufacture of Cement & other non-metallic mineral products” by 11.7 percent, and “Manufacture of rubber and plastics products” by 5.1 percent.

The index of Electricity shows a decrease of 23.6 percent in the production of “Electricity” group between November 2020 and the previous month (October 2020), while the annual decrease (com-paring with November 2019), was 0.7 percent. The index of the Water sector showed a decrease of 9.8 percent in the production of ‘‘Water” group between November 2020 and the previous month (October 2020). Com-paring with corresponding month (November 2019), a decrease of 3.9 percent was recorded.

Qatar Chamber processed 52% transactions online in 2020

FROM PAGE 1QC General Manager also indicated that the Chamber adopted

a number of important initiatives which contributed to encouraging the private sector to perform its role during the pandemic and overcome its negative impacts.

Outlining these initiatives, he said that the Chamber launched the “Takatuf Initiative’ which aimed at enhancing the private sec-tor’s contribution to the State’s efforts to confront the pandemic and motivating large companies to help and support small and medium-sized companies that have been greatly affected by the repercus-sions of the pandemic. During 2020, the Chamber was keen on strengthening communication with all concerned authorities in the state to address all issues related to the Qatari business community and the obstacles it faces during the crisis to ensure it plays its antic-ipated role in the national economy in a way that guarantees the continuity of business and projects, Al Sharqi added.

Yellen to urge lawmakers to ‘act big’ on economic stimulus reliefTHE WASHINGTON POST

President-elect Joe Biden’s nominee for Treasury Secretary, Janet Yellen, will urge lawmakers to “act big” on economic relief for the corona-virus pandemic as she appears before a Senate committee for her confirmation hearing.

“I think there is a consensus now: Without further action, we risk a longer, more painful recession now - and long-term scarring of the economy later,” Yellen says in written testimony submitted to the Senate Finance Committee ahead of the 10am hearing, and obtained by The Washington Post.

Yellen, 74, spent years as a professor before entering pol-itics as head of President Bill Clinton’s Council of Economic Advisers in the late 1990s. She

chaired the Federal Reserve from 2014-2018, playing a key

role in the economic recovery from the Great Recession, with

a studied approach that helped push down the unemployment rate over time. President Donald Trump broke with tra-dition when he opted not to reappoint her to the top Fed job.

She was the first woman to chair the Fed, and will become the first female Treasury sec-retary if confirmed by the Senate. She would replace Trump’s Treasury secretary, Steven Mnuchin.

Her immediate challenge will be helping to shepherd Biden’s proposed $1.9 trillion relief package through a nar-rowly divided Congress. Republicans are already voicing skepticism about the price tag of Biden’s plan, citing the nation’s ballooning deficits after Congress already com-mitted some $4 trillion to pan-demic relief legislation in a series of bills last year.

“Neither the President-elect, nor I, propose this relief package without an appreci-ation for the country’s debt burden. But right now, with

interest rates at historic lows, the smartest thing we can do is act big,” Yellen says in her tes-timony. “In the long run, I believe the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a very long time.”

Following her nomination, Yellen reported in a financial disclosure form that she earned more than $7 million in speaking fees from multiple large corporations including Goldman Sachs in the two years since leaving the Federal Reserve.

She pledged in a filing to the US Office of Government Ethics to seek written author-ization from ethics officials to participate in matters involving firms from which she’d received compensation.

Janet Yellen, US President-elect Joe Biden’s nominee to be Treasury Secretary, speaking in Wilmington, Delaware.

Yellen's immediate challenge will be helping to shepherd Biden’s proposed $1.9 trillion relief package through a narrowly divided Congress. Republicans are already voicing skepticism about the price tag of Biden’s plan, citing the nation’s ballooning deficits after Congress already committed some $4 trillion to pandemic relief legislation in a series of bills last year.

EU eyes dollar’s global dominance in bid to bolster euroBLOOMBERG

The European Union wants to boost its position in the global economic stage by strengthening the international role of the euro as it seeks to erode the domi-nance of the US dollar and to insulate the bloc from financial risks, including American sanc-tions.

In a blueprint presented yes-terday, the European Com-mission, the EU’s executive arm, outlined how the region can fortify its economic and financial resilience by bolstering the single currency’s architecture and through growing markets like green finance.

Calls to boost the bloc’s autonomy gained steam after the US imposed sanctions on Iran that would also punish European banks, companies and people who do business with the Islamic republic. The commission’s plan reflects increasing pressure by member states for the EU to adopt tools that will allow it to pursue its foreign-policy goals with less recourse to an unpre-dictable US ally.

The US’s ability to enforce international sanctions because of the dollar’s power “has seri-ously affected the EU’s and its member states’ ability to advance foreign policy objectives,” the commission said in its strategy paper. Policy made in Wash-ington has, at times, “compro-mised legitimate trade and investment of EU businesses.”

The initiative to boost the role of the euro was first put on the EU’s agenda by former European

Commission President Jean-Claude Juncker, who, faced with an erratic partner in Washington, called for steps to shield the region’s economies and currency from volatility elsewhere in the world. It was during Juncker’s term, in 2018, that President Donald Trump pulled the US out of the international accord that restricted Iran’s nuclear program and reimposed sanctions.

The US has also crippled one of Europe’s signature energy infrastructure projects, Nord Stream 2, by threatening busi-nesses with sanctions. The American measures are seen as a way to boost US liquefied natural gas exports to Europe while also maintaining the fuel’s transit through eastern European nations that don’t use the euro but are friendly with Washington.

“Strengthening the

international role of the euro can shield our economy and financial system from foreign exchange shocks, reduce reliance on other currencies and ensure lower transaction, hedging and financing costs for EU firms,” EU Economy Chief Paolo Gentiloni told reporters in Brussels.

According to the European Central Bank, the euro remains the second most-used currency in the world behind the dollar. But despite the latest push, there’s little the EU can do in terms of policy or legislative initiatives to meaningfully boost the use of its currency.

A main focus for the EU will be to complete flagship projects that will better unify its banking sector and capital markets. These initiatives have stalled, however, often due to entrenched disa-g r e e m e n t s b e t w e e n governments.

Yet the EU thinks its landmark recovery fund, designed to help countries rebound from the pandemic-induced recession, could help buttress the euro. The stimulus package will provide €750bn ($905bn) in grants and loans, raised by jointly backed debt, while a third of these funds will have to be spent toward green projects.

“Promoting sustainable finance is an opportunity to develop EU financial markets into a global ‘green finance’ hub, bolstering the euro as the default currency for the denomination of sustainable financial products,” the plan said.

In 2019, almost half of all global green bond issuance, including that originating outside the bloc, was denominated in euros, according to the EU’s exec-utive arm, and this figure is expected to rise, as the com-mission is poised to issue over €250bn in green debt starting this year. The securities are meant to fund EU’s recovery plan.

The plan would see the com-mission raise almost a trillion euros in debt until 2026, making it one of the biggest sovereign issuers in the world with a stellar credit rating. In parallel, “the Commission will further support the development of euro-denominated commodity deriv-atives for energy and raw mate-rials and will facilitate the emer-gence of euro-denominated benchmark indices and trading venues covering core sectors, including nascent energy markets, such as hydrogen.”

Solar and Hydrogen to flourish in 2021 as green spending growsBLOOMBERG

The race to decarbonize the world is on, and 2021 is set to break fresh records for investment and installations in renewable energy and clean technologies.

A BloombergNEF report pub-lished yesterday showed more than $501bn flowed into climate friendly sectors last year from renewable energy to electric vehicles and batteries to green hydro-gen. All that despite the disruption caused by the pandemic.

While that pace of spending will probably continue this year, the rapid growth of clean energy stocks is likely to hit some tur-bulence in the months ahead. Below are just some of the pre-dictions that BNEF analysts expect for 2021.

Wind and Solar DominateInvesting in wind and solar

proved something of a safe haven during the pandemic. As the health threat slowly recedes, installations of panels and tur-bines will continue to grow at pace.

New solar power installa-tions are expected to top 150 gigawatts for the first time while wind power capacity at sea and on land will grow by 84 giga-watts. Europe and the Americas will lead the way in new wind projects, to compensate for a dip in Chinese activity.

EV BoomThe number of electric

vehicles sold this year will increase by 60 percent compared with 2020, according to Colin McKerracher, BNEF’s head of advanced transport. That trans-lates to 4.4 million new pas-senger EVs driving on the roads. The global fleet now stands at 10 million, up from 1 million six years ago. China and Europe

remain the centers for growth in the sector.

The global trade of liquefied natural gas will see a boost after the COVID-19 slashed growth to just 0.9 percent last year. LNG trade is forecast to increase by 6 percent to 375 million tons, according to Fauziah Marzuki, head of LNG at BNEF.

Global LNG supply will surge 35 percent from 2020, driven by US output, but key transit ways, such as the Panama Canal, are expected to remain congested.

Hydrogen BuzzThe hype around the potential

for hydrogen produced with renewable energy exploded in 2020 as countries and businesses saw that it could be crucial in their decarbonization efforts. BNEF sees that enthusiasm as trans-lating to the commissioning of 240 megawatts of new hydrogen electrolyz-ers — up from 90 meg-awatts finished last year.

Wind turbines stand past a hydrogen electrolysis plant in Mainz, Germany.

EU Commissioner for Economy, Paolo Gentiloni, speaks at a news conference in Brussels, Belgium, yesterday at the EU headquarters.

Cruise, GM partner with Microsoft to ramp up driverless vehiclesREUTERS — BENGALURU

Self-driving car maker Cruise and majority shareholder General Motors Co said yesterday they would partner with Microsoft Corp to accel-erate the commercialization of driverless vehicles. Microsoft will join GM, Honda Motor Co and institutional investors in a combined new equity investment of more than $2bn in Cruise, bringing the post-money valuation of the San Francisco-based startup to $30bn.

GM shares continued their recent climb, trading at $54.09, up 8.2 percent just after US markets opened. The new investment pushes Cruise to the forefront of companies devel-oping self-driving vehicles and technology.

Waymo, the self-driving company majority owned by Alphabet, is valued at just over $30bn, according to investor website PitchBook.

Argo AI, the Pittsburgh-based self-driving startup backed by Ford Motor Co and Volkswagen AG, is valued at $7.25bn.

Cruise will use Azure, Microsoft’s cloud computing platform, for its self-driving vehicles.

Other automakers, including Volkswagen and Toyota Motor Corp, have used Azure for operations and services other than self-driving.

03WEDNESDAY 20 JANUARY 2021 BUSINESS

The lithium-ion samples were produced by StoreDot’s strategic partner in China, Eve Energy Co, and have been used as a demonstration in a two-wheeled scooter.

IMF urges Germany to keep economy on pandemic supportBLOOMBERG

The German government shouldn’t be afraid to bolster fiscal stimulus if the pandemic drags out the economic recovery, according to the Inter-national Monetary Fund.

The Washington-based lender urged Chancellor Angela Merkel’s administration to con-sider additional aid for illiquid or insolvent-yet-viable busi-nesses and maintain support for the country’s labour market to avoid more permanent scars. Staff envisage a “choppy” and unevenly distributed rebound that will only firm once vaccines have been widely distributed.

“When you are in a crisis of this magnitude and there is so much uncertainty around the pandemic and the path of the

recovery, it’s always better to err on the side of caution,” Shekhar Aiyar, the IMF’s mission chief for Germany, said in an interview.

“If it means one or two firms that should have gone bankrupt don’t go bankrupt that’s actually better than risking viable busi-nesses to go under because you didn’t come up with enough support,” he said.

European companies face an equity shortfall of as much as €600bn ($724bn), as existing government programmes and private funding won’t suffice to fully cover the roughly €1 trillion that businesses need to replace losses suffered during corona-virus restrictions, according to the Association for Financial Markets in Europe.

Finance Minister Olaf Scholz (pictured) said yesterday the government is still adding aid “so that we can get off to a pow-erful start again after the crisis.”

Investors expressed confi-dence in the country’s recovery yesterday, with a gauge meas-uring expectations for the next six months rising to the highest since September -- before a second wave of infections trig-gered renewed restrictions.

The German economy probably avoided a contraction in the fourth quarter, thanks in part to a strong manufacturing sector that isn’t as directly affected by virus curbs that have hit restaurants and the travel sector. Prospects for the first quarter are dire though.

Merkel and state premiers are likely to extend the current lockdown until at least mid-Feb-ruary and may impose yet more stringent contact rules as well as nighttime curfews and curbs on the number of people going to the office.

The IMF predicts the German economy will stagnate in the first quarter, before seeing growth for the rest of the year.

For all of 2021, it predicts an increase in gross domestic product of 3.5 percent.

Electric vehicles get first battery that can charge in 5 minutesBLOOMBERG

StoreDot Ltd has manufactured the first battery for electric vehicles that can be charged in just five minutes, a step toward making refueling as fast as cars at a gas station.

The lithium-ion samples were produced by StoreDot’s strategic partner in China, Eve Energy Co, and have been used as a demonstration in a two-wheeled scooter.

StoreDot said that rapid charging batteries could overcome range and charging anxiety.

However, batteries that charge this quickly probably won’t be achievable at scale for years with existing charging infrastructure. Degradation relating to use of fast-charging

also is an under appreciated issue.

“This is a huge positive to the industry, making rapid charging on the go more convenient and reducing a huge barrier to adoption,” David Watson, chief executive officer of EV-charging company Ohme Technologies UK Ltd. “But these benefits will take a while to come on stream.”

StoreDot was picked by BloombergNEF as one of its top 10 companies of 2020 leading the low-carbon transition.

Goldman Sachs profit morethan doubles on trading boostAP - NEW YORK

Goldman Sachs said its profits more than doubled from a year earlier thanks to a surge in both trading and advising revenue.

The New York-based investment bank said it earned a profit of $4.36bn, or $12.08 per share, up from a profit of $1.72bn, or $4.69 a share, in the same period a year earlier. The earnings were significantly better than the $7.45-per-share profit that analysts were expecting.

Goldman’s results reflect that Wall Street had a strong year, despite the pandemic and millions of Americans out of work. After plunging sharply in March and April, the stock market went basically straight up for seven months as investors tried to look beyond the near-term death and pain and focus on where the US economy will be in a year or two years’ time.

Goldman’s profits were driven higher by its investment bank and trading desks, the cor-nerstone to the bank’s business models. Investment banking revenue was up 29 percent from a year earlier to $2.73bn. The bank saw higher underwriting revenues - fees the bank collects to take companies public or

underwrite debt they want to offer - as well as trading revenue, which rose 23 percent from a year earlier.

The banks also saw revenue gains in its wealth management arm as well is nascent consumer banking business, which focuses on consumer loans, savings accounts as well as handling the underwriting for Apple’s credit card. Like its competitors, Goldman also moved some of the money it had set aside to cover credit losses out of its reserves. However Goldman’s exposure through consumer and

business loans is significantly smaller than commercial banks like Citigroup, JPMorgan Chase and Wells Fargo so it wasn’t a significant part of its overall results.

The stellar quarter also will result in stellar bonuses for Goldman’s well-compensated employees.

The bank set aside $13.31bn to pay out bonuses and payroll this year, up 8 percent from a year earlier. Most of Goldman’s top employees make most of their money in year-end bonuses.

In this file photo, the logo for Goldman Sachs is seen above a trading post on the floor of the New York Stock Exchange. Goldman Sachs said its profits more than doubled from a year earlier thanks to a surge in both trading and advising revenue.

Bank of America hopes for loan growth bounce after muted quarterREUTERS - NEW YORK

Bank of America Corp posted a smaller-than-expected drop in fourth-quarter profit yes-terday and said it was hopeful of achieving growth in loans this year as the economy recovers.

Loan portfolios have been quashed by the pandemic over the past year and the United States’ second-largest bank reported a 2 percent fall in loans and 6 percent fall in credit card spending for the quarter.

Underscoring its confi-dence in the economy, the bank joined peers JPMorgan Chase & Co and Citigroup Inc in releasing $828m from its reserves to cover bad loans after adding more than $8bn through the first three quarters of the year.

Roughly 75 percent of the reserve release is tied to the bank’s consumer portfolio as customers entered the new year in better-than-expected financial health due to fiscal stimulus. The commercial reserve release was mostly driven by a pull back from industries heavily impacted by the pandemic.

“We’re grinding out of this health crisis,” Chief Financial Officer Paul Donofrio said on a conference call with reporters. “We should be able to grow NII because we are

adding deposits and we are adding loans.”

Net interest income (NII) at the bank, a key measure of how much it can make from lending, tumbled 16 percent.

NII rose in the fourth quarter from a low-point in the third quarter and will continue to increase in 2021 with the biggest gains in the last half of the year, Donofrio said.

The second-largest US bank by assets also reported a 13 percent fall in consumer banking revenue to $8.2bn, citing a hit from lower interest rates.

Lower rates have limited how much banks can charge for their lending services at the same time fiscal stimulus pro-grammes and flagging con-sumer confidence have sof-tened loan demand.

Shares of Bank of America fell 1.58 percent in trading before the bell. Net income applicable to common share-holders fell to $5.21bn, or 59 cents per share, for the quarter ended December 31 from $6.75bn, or 74 cents per share, a year earlier.

Analysts on average had expected a profit of 55 cents per share, according to the IBES estimate from Refinitiv, helped by lower credit costs.

The bank reported a 10 percent fall in overall revenue, net of interest expense, to $20.1bn.

UAE aims to become blue hydrogen powerhouse to cut emissionsBLOOMBERG

The United Arab Emirates aims to become a major hydrogen producer, contributing to the oil-rich state’s effort to slash polluting carbon emissions by nearly a quarter.

The Middle Eastern country will use carbon-capture tech-nologies to create what’s known as blue hydrogen, Sultan Al Jaber, chief executive officer of Abu Dhabi National Oil Co said at a virtual conference yes-terday. Abu Dhabi is the UAE’s capital and holds most of the OPEC member’s oil and gas.

The UAE can be “one of the lowest-cost and largest pro-ducers of blue hydrogen in the world,” Al Jaber said yesterday at the Abu Dhabi Sustainability Week online conference. There’s “no credible way” of meeting global climate goals without carbon capture and storage, he said.

Blue hydrogen is a form of the fuel created from natural gas in a process that stops the carbon emissions being released into the atmosphere. Adnoc currently has one project to capture, store and use carbon.

Energy producers are looking to hydrogen, which produces only water when burnt, as a cleaner way of gen-erating power.

04 WEDNESDAY 20 JANUARY 2021BUSINESS

Unions strike over job cuts at SanofiAP — MARCY L’ETOILE

Unions at French drug maker Sanofi held a one-day strike yesterday at the lab where it is developing a COVID-19 vaccine and some other sites, to protest job cuts the company plans despite a boost in investment amid the pandemic.

Some 200 workers with union flags and megaphones gathered outside the entrance to the sprawling Sanofi research and development facility in Marcy l’Etoile in central France. They said that hundreds of planned job cuts in France could slow the fight against the coro-navirus pandemic.

The company announced last year it plans 1,000 job cuts across France over three years “to reinforce the effectiveness of our organisation and adapt to the evolution of jobs and stakes of tomorrow.” It said in a statement

yesterday that it would rely on voluntary departures, but wouldn’t comment further because of confidentiality rules

amid ongoing negotiations with unions.

Union members at Sanofi also plan to join broader

demonstrations Saturday in France against job cuts during the pandemic.

Sanofi, France’s biggest pharmaceutical company and a world leader in vaccine devel-opment, has also come under criticism for its slow COVID-19 vaccine rollout. Sanofi and British partner GlaxoSmithKline said last month that their potential vaccine won’t be ready until late 2021 because they need to improve the shot’s effec-tiveness in older people.

Striking workers gather outside the French pharmaceutical company Sanofi headquarters in Marcy l’Etoile, central France, yesterday.

General Electric aims to freeze UK pension plans to cut costsREUTERS — BENGALURU

US conglomerate General Electric said on Monday it was proposing to freeze the accrual of pension benefits for about 2,800 employees in the United Kingdom to cut costs.

GE, which makes power plants and aircraft engines, has taken a series of actions in the past to manage its pension obli-gation and cut billions of dollars in debt, including by freezing the pensions for about 20,000 sal-aried US employees. The company said its pension benefit obligation in the UK was about $14bn at the end of 2020 and the proposal would help the company cut costs. GE’s net debt in its industrial businesses stood at $34.5bn as of September 30. “The proposed changes to our UK defined benefit pension offerings are difficult” but help

“solidify our financial position,” said Kevin Cox, GE’s chief human resources officer.

The changes to the UK pen-sions are likely to come into effect January 1, 2022 and the affected employees will auto-matically be enrolled into GE’s existing defined contribution scheme. There will be no change for GE retirees already collecting pension benefits and no change to existing benefits accrued by active members through December 31, 2021, the company said.

The company announced last year it plans 1,000 job cuts across France over three years “to reinforce the effectiveness of our organisation and adapt to the evolution of jobs and stakes of tomorrow”.

China’s wide income gap undercut spending as growth recoversBLOOMBERG

China’s successful control of COVID-19 made it the only major economy to have grown last year, but wide income inequality and still weak consumer spending reflects an unbalanced recovery.

Official figures released on Monday which showed that the economy’s growth rate sur-passed pre-pandemic levels in the last quarter also revealed that the richest 20 percent of Chinese had an average disposable income of more than 80,000 yuan ($12,000) last year, 10.2 times what the poorest 20 percent earn.

The multiple in the US is about 8.4 and closer to 5 in

Western European countries such as Germany and France, according to data from the Organisation for Economic Co-operation and Development. By this measure, China’s inequality levels are comparable with Mexico, where the top 20 percent earn 10.4 times the bottom 20 percent.

President Xi Jinping has flagged the country’s unequal income distribution as a threat to its future growth, with officials considering more redistributive policies to encourage household spending.

While inequality didn’t surge in China due to the pandemic, the data showed officials have made little headway in reducing it, with the income gap remaining

largely stable since 2015. The full-year 2020 data also showed

that even though China’s sup-pression of the virus allowed

normal economic activities to resume by the second half of the year, growth in household spending has yet to return to pre-pandemic levels.

China’s per-capita con-sumption, after adjusting for inflation, dropped 4 percent in 2020. That’s comparable with forecasts for US personal con-sumption spending, which is projected to have fallen 3.8 percent in 2020, according to a Bloomberg survey.

Retail sales declined 3.9 percent in 2020 from the pre-vious year, a steeper fall than in developed economies such as the US, where government payments to workers stuck at home and unemployed supported spending on consumer goods. Consumer

spending measures returned to growth by May, once the spread of COVID-19 was effectively suppressed.

China’s industrial economy hit new records in 2020. Crude steel output rose above 1 billion tonnes for the first time, and the production of rolled steel and aluminum also surged as investment in real-estate and infrastructure climbed.

For the full year, the indus-trial sector, which includes manufacturing and con-struction, grew 2.6 percent, outpacing the expansion of GDP. By contrast, service-sector growth reached 2.1 percent, with information tech-nology and finance being bright spots.

Shoppers in the Sanyuanli market in Beijing, China.

QATAR STOCK EXCHANGE

QE Index 10,769.02 -0.87 %QE Total Return Index 20,703.09 -0.87 %QE Al Rayan Islamic Index - Price 2,437.78 -0.82 %QE Al Rayan Islamic Index 4,348.93 -0.82 %QE All Share Index 3,302.75 -0.73 %QE All Share Banks & Financial Services 4,350.61 -0.55 %QE All Share Industrials 3,224.60 -2.22 %QE All Share Transportation 3,563.98 -0.03 %QE All Share Real Estate 1,955.90 +1.14 %QE All Share Insurance 2,493.01 -1.12 %QE All Share Telecoms 1,111.42 -0.56 %QE All Share Consumer Goods & Services 8,230.63 +0.04 %

QE INDICES SUMMARY QE MARKET SUMMARY COMPARISON WORLD STOCK INDICES

GOLD AND SILVER

19-01-2021Index 10,769.02Change -94.25% -0.87%YTD% +3.19Volume 226,193,704Value (QAR) 560,156,626.94Trades 13,757Up 20 | Down 25 | Unchanged 0318-01-2021Index 10,863.27Change +2.55% +0.02%YTD% +4.09Volume 166,383,206Value (QAR) 582,347,798.88Trades 9,158

EXCHANGE RATE

GOLD QR226.00 per grammeSILVER QR3.00 per gramme

Index Day’s Close Pt Chg % Chg Dow Jones Industrial Average 30,978.55 +164.29 +0.53% S&P 500 3,803.37 +35.12 +0.93% Nasdaq Composite Index 13,193.81 +195.30 +1.50% FTSE 100 Index 6,712.95 -7.70 -0.11% DAX Index 13,815.06 -33.29 -0.24% CAC 40 Index 5,598.61 -18.66 -0.33% Nikkei Stock Average 225 28,633.46 +391.25 +1.39% Hang Seng Index 29,642.28 +779.51 +2.70% Shanghai Composite Index 3,566.38 -29.84 -0.83% ASX All Ordinaries Index 7,015.00 -- --%

Currency Selling (QAR) Buying (QAR) US$ 3.6500 3.6305 Australian Dollar AUD 2.86 2.79 Bangladeshi Taka BDT 0.045 0.042 Canadian Dollar CAD 2.92 2.86 Euro EUR 4.52 4.4 Indian Rupee INR 0.052 0.05 Japanese Yen JPY 0.0355 0.0348 Malaysian Ringgit MYR 0.92 0.885 Nepalese Rupee NPR 0.033 0.031 Pakistani Rupee PKR 0.02326 0.02273 Philippine Peso PHP 0.079 0.075 Pound Sterling GBP 5.03 4.92 South African Rand ZAR 0.25 0.245 Sri Lankan Rupee LKR 0.02 0.019 Swiss Franc CHF 4.16 4.09 Turkish Lira TRY 0.505 0.50

QNBK - QNB 18.56 18.70 18.50 18.75 13,065 18.54 18.5 42,365 18.50 18.50 -0.06 -0.32 1,522 2,367,588 44,109,368.77

QIBK - Qatar Islamic Bank 17.28 17.40 17.17 17.40 4,976 17.27 17.21 14,528 17.21 17.21 -0.07 -0.41 408 1,154,707 19,913,101.03

CBQK - Comm. Bank of Qatar 4.42 4.41 4.40 4.43 12,560 4.42 4.405 6,793 4.42 4.42 0.00 0.00 555 4,965,571 21,934,402.68

DHBK - Doha Bank 2.416 2.411 2.406 2.411 4,505 2.411 2.408 1,306 2.408 2.408 -0.008 -0.33 35 323,851 779,971.609

ABQK - Ahli Bank 3.85 0.00 0.00 0.00 436 3.8 3.602 5,000 3.85 0.00 0.00 0.00 0 0 0.00

QIIK - Intl. Islamic Bank 9.403 9.36 9.20 9.41 10,000 9.23 9.22 84,022 9.22 9.220 -0.18 -1.95 205 977,691 9,102,009.97

MARK - Rayan 4.58 4.60 4.52 4.60 9,197 4.539 4.52 100,000 4.52 4.520 -0.06 -1.31 500 5,111,951 23,233,110.77

KCBK - Al khalij Commercial Bank 2.188 2.173 2.163 2.189 67,174 2.178 2.17 25,031 2.178 2.18 -0.010 -0.46 146 1,375,809 2,993,549.259

QFBQ - Qatar First Bank (QFC) 1.745 1.745 1.730 1.768 100,000 1.754 1.747 956,039 1.747 1.747 +0.002 +0.11 318 10,958,167 19,126,971.747

QETF - QE Index ETF 10.64 10.68 10.68 10.68 0 0.0 10.68 3,671 10.68 10.563 +0.04 +0.38 5 42,441 453,269.88

QATR - Al Rayan Qatar ETF 2.45 2.450 2.436 2.450 19,744 2.436 2.435 11,360 2.436 2.429 -0.014 -0.57 7 43,932 107,318.170

QATI - Qatar Insurance 2.53 2.549 2.448 2.550 40,000 2.484 2.45 25,894 2.484 2.484 -0.046 -1.82 141 2,820,822 7,029,057.278

DOHI - Doha Insurance 1.50 1.518 1.50 1.52 9,600 1.509 1.499 10,000 1.51 0.00 +0.01 +0.67 8 116,000 174,014.00

QLMI - QLM 3.765 3.735 3.577 3.750 31,509 3.599 3.59 2,000 3.599 3.599 -0.166 -4.41 264 1,983,928 7,211,824.368

QGRI - General Insurance 2.634 0.000 0.000 0.000 9,719 2.63 2.629 1,000 2.634 0.000 0.000 0.00 0 0 0.000

AKHI - Alkhaleej Takaful 1.965 1.979 1.965 1.990 228,238 1.982 1.98 25,000 1.982 1.982 +0.017 +0.87 114 1,623,045 3,214,366.275

QISI - Islamic Insurance 7.10 7.035 7.04 7.15 20,000 7.15 7.101 1,950 7.10 0.00 0.00 0.00 20 18,829 133,365.80

QAMC - QAMCO 0.975 0.970 0.969 0.975 611,032 0.974 0.971 161,563 0.974 0.974 -0.001 -0.10 152 2,928,594 2,846,266.826

QIMD - Ind. Manf. Co. 3.229 3.220 3.035 3.220 7,020 3.199 3.103 13,282 3.103 3.103 -0.126 -3.90 16 63,459 196,603.349

QNCD - National Cement Co. 4.249 4.201 4.181 4.248 30,000 4.2 4.181 49,150 4.181 4.181 -0.068 -1.60 62 235,401 989,212.762

ZHCD - Zad Holding Company 14.99 15.00 14.90 15.00 1,600 14.99 14.9 2,290 14.90 0.00 -0.09 -0.60 7 12,230 183,379.00

IQCD - Industries Qatar 12.15 12.02 11.70 12.29 6,608 11.9 11.7 118,962 11.70 11.70 -0.45 -3.70 297 1,042,143 12,426,229.90

UDCD - United Dev. Company 1.653 1.650 1.649 1.700 24,073 1.694 1.688 45,000 1.694 1.694 +0.041 +2.48 402 5,774,210 9,740,905.356

QGMD - Qatar German Co. Med 2.596 2.67 2.670 2.855 0 0.0 MP 10,722,194 2.855 0.000 +0.259 +9.98 783 20,693,094 58,221,950.887

QIGD - The Investors 1.834 1.847 1.826 1.890 241,674 1.839 1.826 31,545 1.839 1.839 +0.005 +0.27 104 2,010,254 3,715,343.449

ORDS - Ooredoo 8.375 8.39 8.33 8.40 16,470 8.33 8.329 7,663 8.33 8.330 -0.04 -0.54 1,046 2,974,752 24,905,394.54

QEWS - Electricity & Water 18.44 18.35 18.30 18.50 2,000 18.32 18.3 50,000 18.32 18.32 -0.12 -0.65 99 196,199 3,595,198.05

SIIS - Salam International 0.64 0.644 0.640 0.657 65,975 0.65 0.647 954,294 0.647 0.647 +0.007 +1.09 470 26,328,566 17,091,216.858

BLDN - Baladna 1.725 1.721 1.710 1.759 19,430 1.732 1.731 19,017 1.732 1.732 +0.007 +0.41 331 7,994,297 13,907,648.317

NLCS - National Leasing 1.249 1.240 1.235 1.259 411,638 1.258 1.257 547,865 1.258 1.258 +0.009 +0.72 246 8,680,351 10,843,550.325

QNNS - Qatar Navigation 7.73 7.600 7.600 7.850 5,000 7.745 7.652 95,959 7.652 7.652 -0.078 -1.01 131 755,471 5,792,585.410

MCGS - Medicare 8.85 8.70 8.70 8.92 22,421 8.903 8.82 92,074 8.82 8.820 -0.03 -0.34 34 68,264 601,233.69

QCFS - Cinema 3.531 3.542 3.542 3.542 7,447 3.884 3.543 3,100 3.542 0.000 +0.011 +0.31 1 280 991.760

QFLS - Qatar Fuel 19.15 19.28 19.15 19.28 3,600 19.17 19.15 1,711 19.15 19.15 0.00 0.00 72 448,260 8,592,627.24

WDAM - Widam 6.275 6.28 6.25 6.28 518 6.25 6.221 10,000 6.25 6.25 -0.02 -0.40 18 54,135 339,318.71

GWCS - Gulf warehousing Co 5.16 5.16 5.13 5.18 10,000 5.15 5.135 1,912 5.15 5.150 -0.01 -0.19 100 1,389,423 7,169,037.77

QGTS - Nakilat 3.45 3.449 3.411 3.477 156,871 3.473 3.445 13,400 3.473 3.473 +0.023 +0.67 409 5,155,718 17,821,832.410

DBIS - Dlala 1.75 1.750 1.750 1.769 22,628 1.769 1.757 162,641 1.757 1.757 +0.007 +0.40 163 2,582,671 4,542,929.122

BRES - Barwa 3.50 3.50 3.44 3.50 144,626 3.44 3.435 20,000 3.44 3.440 -0.06 -1.71 669 3,988,418 13,821,524.33

MCCS - Mannai Corp. 2.988 2.988 2.960 2.998 12,667 2.999 2.971 12,538 2.971 2.97 -0.017 -0.57 43 437,408 1,305,833.689

AHCS - Aamal 0.834 0.84 0.83 0.85 243 0.84 0.838 20,000 0.84 0.84 +0.01 +0.72 109 2,788,539 2,336,342.40

QOIS - Qatar Oman 0.85 0.857 0.842 0.859 92,000 0.858 0.85 109,519 0.858 0.86 +0.008 +0.94 81 1,468,914 1,251,940.759

ERES - Ezdan Holding 1.664 1.670 1.666 1.816 52,439 1.79 1.777 3,869,178 1.777 1.777 +0.113 +6.79 1,645 51,697,546 90,520,451.368

IHGS - Inma 5.402 5.48 5.40 5.84 98,650 5.52 5.502 1,650 5.52 5.52 +0.12 +2.18 867 9,409,796 52,640,150.49

GISS - Gulf International 1.646 1.64 1.63 1.66 363,711 1.65 1.646 996 1.65 1.650 0.00 +0.24 177 3,638,192 5,989,747.30

MPHC - Mesaieed 2.074 2.06 2.06 2.07 23,189 2.068 2.06 65,465 2.06 2.060 -0.01 -0.68 220 1,658,337 3,418,881.12

IGRD - Investment Holding 0.561 0.562 0.562 0.571 546,604 0.568 0.566 509,144 0.566 0.566 +0.005 +0.89 326 19,002,057 10,766,571.222

VFQS - Vodafone Qatar 1.449 1.44 1.43 1.45 2,765 1.44 1.435 45,928 1.44 1.440 -0.01 -0.62 108 3,469,539 4,994,343.99

MERS - Al Meera 20.80 20.69 20.55 20.97 1,200 20.85 20.81 852 20.81 20.81 +0.01 +0.05 146 162,878 3,380,564.66

MRDS - Mazaya 1.29 1.283 1.281 1.295 219,248 1.29 1.282 75,014 1.282 1.282 -0.008 -0.62 175 5,199,976 6,691,118.280