Traders gather on the floor of the New York Stock Exchange (NYSE) in New York. In the first nine months of 2017, global equity markets have outperformed other asset classes. Brendan McDermid / Reuters
Traders gather on the floor of the New York Stock Exchange (NYSE) in New York. In the first nine months of 2017, global equity markets have outperformed other asset classes. Brendan McDermid / Reuters

Equities have outperformed other assets classes in 2017



Global growth is on the mend with a broad-based recovery underway according to the IMF, taking in advanced economies and emerging ones including here in the GCC. Against this background the dollar is firm, interest rates are edging higher, global equities are improving and oil prices are also enjoying some stability.

For the moment at least financial markets are putting the geopolitical risks behind them and focusing instead on the positives of increasing economic momentum in the world economy. In the first nine months of 2017, global equity markets have outperformed other asset classes on the back of a broad pick-up in economic growth, improved earnings trajectories and, for the most part, geopolitical tensions that have so far failed to bite. Furthermore ample liquidity has overall been maintained in an environment in which inflation has remained becalmed.

Now, rising hopes of tax cuts in the US are the latest catalyst behind US equities reaching record highs, for over the 50th time since the start of the year, and for the dollar continuing to strengthen. The passage of a 2018 budget resolution bill through the US Senate last week is seen opening the door for tax cuts in the coming year, which is helping to buoy sentiment at a time when growth in the US economy is already strong and improving.

Significant tax cuts would certainly enhance growth expectations further and benefit financial markets. After all, without any significant legislation being passed so far in 2017, growth has already picked up momentum, earnings have been strong and the Fed has raised interest rates twice with another hike still looking likely before the end of the year. Any additional fiscal stimulus would cause growth forecasts to be raised again, but it may also increase the likelihood of interest rates rising faster as well if inflation begins to accelerate. This might create a dilemma for equity markets down the road, but for now merely the enhanced prospect of lower corporate taxes is proving sufficient for equity investors to take heart.

________

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________

Not surprisingly bond markets and the dollar are also reacting to the prospects of lower taxes and of potentially higher interest rates, with both yields and the dollar continuing to firm, albeit cautiously as inflation remains elusive. Until there is greater evidence of broad price pressures returning, the currency and bond markets will probably remain more guarded. They may also want to see who President Trump nominates to be the next Fed chair, with an announcement expected in early November. However, the indications currently are that they broadly like what is being promised on the policy front and are now waiting for policymakers to deliver.

The implications for oil prices are not necessarily straightforward, but they should also see some benefit from an environment of rising confidence which might eventually be manifest in increasing global demand. Of course the progress that Opec has made in helping to reduce the overhang of oil inventories is the main source of current oil price firmness. The extent to which this rebalancing continues to benefit prices might be seen as more of a positive for other financial markets, as another indicator of recovering sentiment, rather than the other way around.

However, markets may have to consider what might happen if the White House ultimately fails to get its way with Congress in passing a significant tax reform bill. After all Mr Trump has notably failed to pass any major legislation this year, even with majorities in both Houses of Congress, and there remain many inside the Republican Party who will be uncomfortable with tax cuts if they only succeed in adding $1.5 trillion to the budget deficit. US treasury secretary Steve Mnuchin has argued that tax reform should unleash much stronger growth that will prevent a widening in the budget deficit, but this view is not universally shared even amongst Republicans. Mr Mnuchin has also gone as far as to say that without tax reform US equities would be at risk of going into reverse. There is probably still a long way to go before Trump and the markets are likely to get their wishes over tax, but also plenty of time in which this latter prognosis might also get tested.

Tim Fox is the chief economist and head of research at Emirates NBD

Company%20profile
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Cricket World Cup League 2

UAE squad

Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind

Fixtures

Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE

UAE%20SQUAD
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Company%20Profile
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Singham Again

Director: Rohit Shetty

Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone

Rating: 3/5

'Doctor Strange in the Multiverse Of Madness' 

   

 

Director: Sam Raimi

 

Cast: Benedict Cumberbatch, Elizabeth Olsen, Chiwetel Ejiofor, Benedict Wong, Xochitl Gomez, Michael Stuhlbarg and Rachel McAdams

 

Rating: 3/5

 
Zidane's managerial achievements

La Liga: 2016/17
Spanish Super Cup: 2017
Uefa Champions League: 2015/16, 2016/17, 2017/18
Uefa Super Cup: 2016, 2017
Fifa Club World Cup: 2016, 2017

SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.5-litre%204-cylinder%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20101hp%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20135Nm%3Cbr%3E%3Cstrong%3ETransmission%3C%2Fstrong%3E%3A%20Six-speed%20auto%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh79%2C900%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
US Industrial Market figures, Q1 2017

Vacancy Rate 5.4%

Markets With Positive Absorption 85.7 per cent

New Supply 55 million sq ft

New Supply to Inventory 0.4 per cent

Under Construction 198.2 million sq ft

(Source: Colliers)

Key findings
  • Over a period of seven years, a team of scientists analysed dietary data from 50,000 North American adults.
  • Eating one or two meals a day was associated with a relative decrease in BMI, compared with three meals. Snacks count as a meal. Likewise, participants who ate more than three meals a day experienced an increase in BMI: the more meals a day, the greater the increase. 
  • People who ate breakfast experienced a relative decrease in their BMI compared with “breakfast-skippers”. 
  • Those who turned the eating day on its head to make breakfast the biggest meal of the day, did even better. 
  • But scrapping dinner altogether gave the best results. The study found that the BMI of subjects who had a long overnight fast (of 18 hours or more) decreased when compared even with those who had a medium overnight fast, of between 12 and 17 hours.
The specs

Engine: 5.0-litre V8

Power: 480hp at 7,250rpm

Torque: 566Nm at 4,600rpm

Transmission: 10-speed auto

Fuel consumption: L/100km

Price: Dh306,495

On sale: now

How Islam's view of posthumous transplant surgery changed

Transplants from the deceased have been carried out in hospitals across the globe for decades, but in some countries in the Middle East, including the UAE, the practise was banned until relatively recently.

Opinion has been divided as to whether organ donations from a deceased person is permissible in Islam.

The body is viewed as sacred, during and after death, thus prohibiting cremation and tattoos.

One school of thought viewed the removal of organs after death as equally impermissible.

That view has largely changed, and among scholars and indeed many in society, to be seen as permissible to save another life.

COMPANY PROFILE

Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed 

APPLE IPAD MINI (A17 PRO)

Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits

Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine

Storage: 128/256/512GB

Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4

Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps

Biometrics: Touch ID, Face ID

Colours: Blue, purple, space grey, starlight

In the box: iPad mini, USB-C cable, 20W USB-C power adapter

Price: From Dh2,099

Uefa Nations League

League A:
Germany, Portugal, Belgium, Spain, France, England, Switzerland, Italy, Poland, Iceland, Croatia, Netherlands

League B:
Austria, Wales, Russia, Slovakia, Sweden, Ukraine, Republic of Ireland, Bosnia-Herzegovina, Northern Ireland, Denmark, Czech Republic, Turkey

League C:
Hungary, Romania, Scotland, Slovenia, Greece, Serbia, Albania, Norway, Montenegro, Israel, Bulgaria, Finland, Cyprus, Estonia, Lithuania

League D:
Azerbaijan, Macedonia, Belarus, Georgia, Armenia, Latvia, Faroe Islands, Luxembourg, Kazakhstan, Moldova, Liechtenstein, Malta, Andorra, Kosovo, San Marino, Gibraltar

A cryptocurrency primer for beginners

Cryptocurrency Investing  for Dummies – by Kiana Danial 

There are several primers for investing in cryptocurrencies available online, including e-books written by people whose credentials fall apart on the second page of your preferred search engine. 

Ms Danial is a finance coach and former currency analyst who writes for Nasdaq. Her broad-strokes primer (2019) breaks down investing in cryptocurrency into baby steps, while explaining the terms and technologies involved.

Although cryptocurrencies are a fast evolving world, this  book offers a good insight into the game as well as providing some basic tips, strategies and warning signs.

Begin your cryptocurrency journey here. 

Available at Magrudy’s , Dh104 

The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
The years Ramadan fell in May

1987

1954

1921

1888

The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)

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