UAE Govt reported Dh28 billion surplus in 2018 revenue
The surplus surge is accredited to the rise in the UAE government’s revenues.
By Gulfnews – TFMNews
Abu Dhabi: The UAE government’s surplus posted Dh28 billion in the first nine months of 2018, according to the latest figures released by the Federal Competitiveness and Statistics Authority.
The surplus increase is attributed to the rise in the UAE government’s revenues, which hit Dh304.5 billion in 2018’s first nine months, an increase of 4.8 percent compared to the same period of 2017.
Meanwhile, the expenditures increased from Dh259.3 billion to Dh276.2 billion during the same monitoring period. Total current expenditure as well as capital expenditure also increased by 4.8 per cent in the third quarter of 2018, resulting in the net operating balance recording a deficit of Dh2.5 billion in the third quarter of 2018, compared to a surplus of Dh21.7 billion in the previous quarter.
Oil prices improvements in the second and third quarters of 2018 as well as ongoing fiscal reforms have contributed to diversifying non-energy revenues sources, raising the total government revenues.
Walmart holiday-quarter sales jump, says consumers still spending
U.S. retailer Walmart Inc on Tuesday reported an estimate-beating jump in holiday quarter comparable sales, which grew for the 18th consecutive quarter.
(Reuters) – Walmart Inc posted its strongest holiday quarter in at least a decade on Tuesday, boosted by higher grocery and e-commerce sales, and said it saw no signs of weakness in U.S. consumer spending despite recent signs of a slowdown.
Shares of the world’s largest retailer rose more than 3 percent on Tuesday in a broadly flat market, putting them up 7 percent so far this year.
Walmart and rival Target Corp’s unexpectedly strong growth in holiday sales reflected the health of the U.S. consumer as spending remained robust due to a strong labor market and cheaper gasoline prices.
“We still feel pretty good about the consumer. We haven’t seen much of a change,” Walmart Chief Financial Officer Brett Biggs told Reuters. “The data we are seeing still looks pretty healthy. Gas prices are down year over year, which helps.”
Investors and Wall Street analysts have been expecting U.S. spending to slow this year, against a backdrop of rising debt, trade tariffs and economic uncertainty. Walmart’s results settled nerves, but some doubts remain.
“There are definitely some storm clouds on the horizon,” said Charles Sizemore, founder of Sizemore Capital Management LLC, which owns Walmart shares. “A big example would be delinquent loans in the auto sector which are rising. The consumer may be on hard times and in 2008 that was the prelude to the global economic slowdown.
“U.S. retail sales recorded their steepest drop in more than nine years in December, the government reported last week, as receipts fell across the board, suggesting a sharp slowdown in economic activity at the end of 2018.
However, overall sales for the 2018 U.S. holiday shopping season hit a six-year high as shoppers were encouraged by early discounts, according to a Mastercard report in late December.
Walmart sales at U.S. stores open at least a year rose 4.2 percent, excluding fuel, in the fourth quarter ended Jan. 31. The gain exceeded analysts’ expectations of 2.96 percent, according to IBES data from Refinitiv.
Sales were boosted by federal officials distributing food stamp aid early during the partial government shutdown. The demise of retailer Toys R Us also helped Walmart gain toy market share, the company said.
Adjusted earnings per share increased to US$1.41 per share, beating expectations of US$1.33 per share, according to Refinitiv. But the retailer’s gross margins declined for the seventh consecutive quarter due to higher transportation costs and e-commerce investments.
Online Sales Jump:
Online sales jumped 43 percent in the quarter, in line with the previous quarter’s rise, helped by the expansion of Walmart’s online grocery pickup and delivery services and a broader assortment on its website.
But the company reiterated that it expected e-commerce losses to increase this year due to ongoing investments. Chief Executive Officer Doug McMillon said on a conference call the company was focused on getting return customer visits and strengthening product assortment.
The company has expanded a program that allows customers to order groceries online and pick them up at its U.S. stores, a move the retailer said helped expand market share in the category. It said it will have the service at 3,100 stores by next January. At the end of the fourth quarter it was offered at more than 2,100 stores.
Walmart will offer grocery deliveries to about 800 more stores by the end of the year, bringing the total to 1,600 stores.
Grocery sales currently make up 56 percent of total revenue for the retailer. Amazon.com Inc is trying to crack the food category, especially since it bought organic supermarket chain Whole Foods.
Walmart is partnering with third-party couriers and working with so-called gig, or freelance, drivers, who are cheaper than full-time employees, to push down costs, Reuters recently reported.
Google-backed Deliv, a Walmart delivery partner in Miami and San Jose, ended its relationship with the retailer, Reuters reported last week.
The U.S. retailer, which overtook Apple Inc to become the third largest e-commerce retailer last year, is likely to capture a 4.6 percent share of the U.S. e-commerce market, behind eBay Inc and Amazon, according to research firm eMarketer.
Walmart repeated its forecast that fiscal year 2020 earnings per share would decline in the low single digits in percentage terms, compared with last year. Excluding the acquisition of Indian e-commerce firm Flipkart, it sees an increase in the low- to mid-single-digits.
McMillon said the company was disappointed in India’s revised e-commerce regulations, which ban companies from selling products via firms in which they have an equity interest and also bar them from making deals with sellers to sell exclusively on their platforms.
He said the Indian government didn’t consult with Walmart and other U.S. companies before it changed the rules. “We hope for a collaborative regulatory process going forward, which results in a level playing field,” he said.
Walmart expects fiscal year 2020 comparable sales growth of 2.5 percent to 3 percent, excluding fuel and online sales growth of 35 percent.
Total revenue increased 1.9 percent to US$138.8 billion, beating analysts’ estimates of US$138.65 billion. Walmart has recorded 18 quarters, or over four straight years of U.S. comparable sales growth, unmatched by any other retailer.
(Reporting by Nandita Bose in Washington; Editing by Jeffrey Benkoe and Bill Rigby)
Barclays reported profit of 3.5 billion pounds ($4.56 billion) for 2018
LONDON (Reuters) – Barclays reported a lower than forecast attributable profit of 3.5 billion pounds ($4.56 billion) for 2018, as it set aside cash to cushion against Brexit losses and its trading business weathered a difficult fourth quarter.
Barclays did show signs of progress in its under-pressure investment bank, where profit for the full year increased 15 percent to 2.6 billion pounds as its equities trading unit saw income rise 25 percent.
Barclays Chief Executive Jes Staley is locked in a high-profile tussle over the bank’s strategy with activist investor Edward Bramson, who believes the lender should ditch a costly plan to grow its investment bank and focus on other less risky parts of its business.
Bramson on Feb. 5 sought to ratchet up pressure on the bank by tabling a resolution that would see him win a board seat, a bid which investors said was unlikely to succeed but which has sharpened focus on the performance of the investment bank.
The results gave ammunition to both sides in the debate. Staley could point to the investment bank’s return on tangible equity – a key measure of profitability – rising from 2 percent to 7 percent in 2018, close to the overall target of 9 percent for the group in 2019.
The bank’s fixed income, currencies and commodities trading business weathered the volatile markets of the fourth quarter better than its Wall Street rivals with revenue down 6 percent compared with double digit falls at Goldman Sachs, Citi and JPMorgan.
For critics of the investment banking-led strategy, however, there were signs that other parts of the lender are suffering as profits fell 3 percent in the Barclays UK division.
The bank also saw a 20 percent decrease in corporate lending income, which it attributed to resources being deployed to higher-returning business elsewhere.
Barclays’ 150 million pound Brexit provision followed similar moves by HSBC and Royal Bank of Scotland in recent days.
Barclays said the provision reflected the lesser of two downside economic scenarios, in which growth would slow to 0.3 percent and the country’s unemployment rise to 5.7 percent.
Barclays paid a dividend of 6.5 pence per share and signaled intentions to return more capital via dividend increases and buybacks when it was practical to do so.
The bank however reported its core capital ratio fell to 13.2 percent from 13.3 percent a year ago, a dip which is likely to renew a debate over its ability to return more capital to shareholders at a time when rivals Lloyds Banking Group and RBS are ramping up payouts.
Staley’s total pay package for 2018 fell to 3.36 million pounds, down from 3.87 million pounds the previous year. He was the lowest paid among the four biggest British bank bosses.
Including conduct and litigation charges, the bank’s profit of 1.4 billion pounds against a 1.9 billion pounds loss in 2017.
Barclays’ International division, which houses its investment bank, reported a profit before tax of 3.9 billion pounds, in line with analysts’ expectations of 3.95 billion pounds.