BofA Merrill's Jonathan Moulds: the UAE's "measured upside"



Jonathan Moulds was made president of Europe, Middle East, Latin America and Canada earlier this year at the newly merged Bank of America Merrill Lynch. He came to the merged company from Bank of America, where he had overseen banking operations outside the US.

It is a big new role for Mr Moulds during an era of unprecedented shake-ups at some of the world's oldest and richest banking firms. As many of them struggle amid the rubble of the financial crisis, Mr Moulds says his company maintains a strong balance sheet and plans to expand its reach in the Middle East, bucking a trend in which many of his peers are scaling back and moving out.

In an exclusive interview yesterday during his first visit to the region in his new role, Mr Moulds discussed the merger, the bank's strategy in the region, his perspective on financial derivatives and his outlook for the UAE's economy, which he said had a "measured upside".

It has been a tumultuous year for banks and investment firms across the globe. Lehman Brothers failed last September, and Bank of America bought Merrill Lynch for about $50 billion when Merrill was on the brink of collapse, also in September. You came to the merged company from Bank of America. How has the merger affected your business so far?

Given what has happened over the economy in the past few years, it has certainly been a challenging environment. [But the merger] gave a tremendous boost to our business, particularly internationally. It's a significantly larger platform, and it's a platform that I think can compete with all the key players across the international space.

Did Bank of America even have a presence in the Gulf or the Middle East before the merger?

Bank of America prior to the merger had a very targeted strategy, and the resources meant the number of clients covered was obviously smaller. It's not that Bank of America did not do anything in that area, however. Our strategy was targeted in the Gulf.

What businesses are you concentrating on in the Middle East? Where do you see the most room for expansion and growth?

We have a strong wealth management presence in a number of places. I think if you look at our advisory business, M&A is strong and trading in equity is very strong. Combine that with an organisation that has a strong balance sheet and a strong presence on the ground and I think we can make a big impact here. We already are.

You oversee Bank of America Merrill Lynch's operations across a wide swath of the globe - your mandate includes Europe, the Middle East, Latin America and Canada. How much of a focus is the Middle East - and particularly the UAE - within those geographical regions?


I do think that it is a focus. I think we clearly have a strong presence in a number of areas and we will continue to add talent.

Do you see the bank picking up business rapidly in the region?


We will do it selectively. We have to recognise that it's a region where some parts of the market - real estate, for example - are stressed. But clients want access to financial solutions to raise capital, to provide advice on large cross-border mergers. We're in a very good position. As an organisation that has come through this is pretty good shape, a number of lessons have been learned. If we are in strong financial standing, it gives us opportunities.

What is your outlook for the UAE's economy?


There has been significant progress on infrastructure since I was last here. There is a transparent financial system, and a regulator that I think in many sectors is progressive. There is a measured upside, but it will take time.

Mergers and acquisitions naturally take place during times of economic turmoil. But what about other traditional investment banking activities, like advising on IPOs? Do you see that coming back any time soon?


IPOs in the region are going to take time to come back. We're all aware of that.

You have a background in derivatives [Mr Moulds was chairman of the International Swaps and Derivatives Association from 2004 to 2008]. Many people have said that these complex instruments are partly to blame for recent market volatility and economic turmoil. Speculation in oil futures, a form of derivative that determines global oil prices, has been a particularly touchy subject. Has any of this changed your mind on the usefulness of derivatives? Are they fundamentally dangerous?

I think derivatives play a very important role in terms of how you mitigate risk. But they can also be concentrators of risk. I'm an advocate of the use of derivatives, but I think it's important to have regulation and make steps in the right direction to make the infrastructure [of the markets] more efficient.

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The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

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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

Poacher
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SPECS

Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now

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Company%20Profile
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Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae

The specs

Engine: Dual 180kW and 300kW front and rear motors

Power: 480kW

Torque: 850Nm

Transmission: Single-speed automatic

Price: From Dh359,900 ($98,000)

On sale: Now

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SPECS
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Moon Music

Artist: Coldplay

Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

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Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

Ain Issa camp:
  • Established in 2016
  • Houses 13,309 people, 2,092 families, 62 per cent children
  • Of the adult population, 49 per cent men, 51 per cent women (not including foreigners annexe)
  • Most from Deir Ezzor and Raqqa
  • 950 foreigners linked to ISIS and their families
  • NGO Blumont runs camp management for the UN
  • One of the nine official (UN recognised) camps in the region
COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
COMPANY PROFILE

Company: Bidzi

● Started: 2024

● Founders: Akshay Dosaj and Asif Rashid

● Based: Dubai, UAE

● Industry: M&A

● Funding size: Bootstrapped

● No of employees: Nine

COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding

Left Bank: Art, Passion and Rebirth of Paris 1940-1950

Agnes Poirer, Bloomsbury

The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Power: 268bhp / 536bhp
Torque: 343Nm / 686Nm
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
On sale: Later this year
Essentials

The flights

Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours. 

The package

Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.

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

A Prayer Before Dawn

Director: Jean-Stephane Sauvaire

Starring: Joe Cole, Somluck Kamsing, Panya Yimmumphai

Three stars

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Three ways to limit your social media use

Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.

1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.

2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information. 

3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.

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Call of Duty: Black Ops 6

Developer: Treyarch, Raven Software
Publisher:  Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
Rating: 3.5/5

U19 World Cup in South Africa

Group A: India, Japan, New Zealand, Sri Lanka

Group B: Australia, England, Nigeria, West Indies

Group C: Bangladesh, Pakistan, Scotland, Zimbabwe

Group D: Afghanistan, Canada, South Africa, UAE

UAE fixtures

Saturday, January 18, v Canada

Wednesday, January 22, v Afghanistan

Saturday, January 25, v South Africa

UAE squad

Aryan Lakra (captain), Vriitya Aravind, Deshan Chethyia, Mohammed Farazuddin, Jonathan Figy, Osama Hassan, Karthik Meiyappan, Rishabh Mukherjee, Ali Naseer, Wasi Shah, Alishan Sharafu, Sanchit Sharma, Kai Smith, Akasha Tahir, Ansh Tandon


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