Apple’s Cook to China: keep opening for sake of global economy

Apple CEO Tim Cook attended the China Development Forum in Beijing on March 23, 2019. (Reuters)
Updated 23 March 2019

Apple’s Cook to China: keep opening for sake of global economy

  • Cook’s comments come as Apple weathers sinking sales in China
  • Despite official pledges and repeated assurances that China would continue to open its markets

BEIJING: Apple chief executive Tim Cook nudged China on Saturday to open up and said the future would depend on global collaboration, as the United States and China remained locked in a bitter trade dispute.
“We encourage China to continue to open up, we see that as essential, not only for China to reach its full potential, but for the global economy to thrive,” Cook said at a China Development Forum in Beijing.
Despite official pledges and repeated assurances that China would continue to open its markets, some analysts worry that its reform project has slowed or even stalled under President Xi Jinping, who has sought greater control over the economy and a bigger role for state-owned firms at the expense of the private sector.
Cook’s comments come as Apple weathers sinking sales in China because of a contracting smartphone market, increasing pressure from Chinese rivals, and slowing upgrade cycles. The company reported a revenue drop of 26 percent in the greater China region during the quarter ending in December.
Before those results came out, in a January letter to investors, Cook blamed the company’s poor China performance on trade tension between the United States and China, suggesting that pressure on the economy was hurting sales in China.


Saudi insurers surge as vehicle checks enforced

Updated 56 min 11 sec ago

Saudi insurers surge as vehicle checks enforced

  • Move comes as relief to industry still reeling from pandemic fallout

RIYADH: Saudi insurance stocks surged on Wednesday after the traffic department said that it would enforce vehicle checks to ensure drivers had appropriate cover.

The move sent the share prices of several insurers soaring as investors bet they would benefit, as more people would subsequently be forced to buy policies.

Under the current rules, if a vehicle is involved in any traffic violation in the Kingdom, its record is automatically checked to see if there is an insurance policy linked to it.

The top five gainers on the Tadawul were all insurance firms, led by Axa, Walaa and Malath, all up by almost 10 percent on the day.

The insurance sector is one of the most represented on the Tadawul with 32 companies listed. It is also heavily exposed to the fallout from the coronavirus pandemic.

The pandemic has heaped pressure on regional insurers with S&P warning in April that a spike in claims and a decline in equity markets could hurt their balance sheets.

Aljazira Capital CEO Walid bin Ghaith told Al Araibya that the new decision would be a major boost for the car insurance market in the Kingdom.

“As it is known, the insurance (of cars) is mandatory legally, but there is no mechanism to mandate all people to insure their cars,” he said. “This damaged the insurance companies, since a lot of cars are not insured, so disputes emerge when identifying the liable side in the incident. This will result in two things: First, improving the rate of claims on the insurance companies, and the second, and the more important, is opening a big market or doubling the market for the car insurance companies.”

The move will be welcome news for the auto insurance sector in Saudi Arabia, as car sales worldwide come under increased pressure as people, fearful for their job security, delay major purchasing decisions.