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Friday, 7 September 2012

BREAKINGVIEWS-Who dares call Qatar dumb money now? - Yahoo! News Maktoob

If Qatar's sovereign fund didn't command respect before the Glencore-Xstrata saga, it certainly does now. Qatar has made Glencore boss Ivan Glasenberg budge on price. But its achievement is capped by the fact that it still hasn't obtained a wholly acceptable proposal.

Egypt entrepreneurs look ahead to change - FT.com

Exhausted after a long workday, Hisham Fahmy takes off his jacket and sinks into a sofa at the offices of the American Chamber of Commerce in Cairo. The chief executive since 1999 of the country’s most prestigious business association, grouping the elite of its entrepreneurial class, he is preparing for possibly the most crucial visit by a US trade delegation Egypt has ever hosted.
It is not only the size of the mission, the largest to come to Egypt with 118 businessmen from 48 major US companies, but also its timing and the political context which gives it added significance.

Glencore raises offer for Xstrata to salvage deal | Reuters

Commodity trader Glencore has raised its offer for miner Xstrata to salvage a bid, now worth about $37 billion, that appeared to be heading for the rocks after Xstrata shareholder Qatar held out for more.

Xstrata said Glencore was now proposing to offer 3.05 new shares for every Xstrata share, up from 2.8, with Glencore Chief Executive Ivan Glasenberg to become CEO of the combined group, instead of Xstrata boss Mick Davis as originally envisaged.

Xstrata said Glencore was also suggesting a possible change to the structure of the deal that could allow it to pass more easily with a simple majority of shareholders.

How the Big Banks Are Trying to Destroy Our Justice System | Alternet #CitiGroup #AbuDhabi #UAE

Meet the lawyer who keeps getting Citigroup off the hook for fraud.

The following is Part II of an investigative series on Citigroup and fraud. Part 1, which reveals that Citigroup may have defrauded Abu Dhabi of billions, can be read here.

It’s one of the few things predictable on Wall Street; an immutable signature on the reply briefs whenever Citigroup is charged with fraud – and that is quite often.

FT Alphaville » Xstrata: proposal received from Glencore at 3.05 ratio per share

From the RNS:

The Board of Xstrata plc (“Xstrata”) has received a proposal from Glencore International plc (“Glencore”) to amend the terms of the merger of Glencore and Xstrata.
This is not a firm offer.  Any elements of the proposal remain subject to change and the proposal also remains subject to Xstrata plc Board approval.

Goodman and Abu Dhabi Investment to Buy Warehouses in Japan - Businessweek

Goodman Group (GMG), Australia’s biggest industrial property trust, said it had partnered with Abu Dhabi Investment Council, a government-controlled fund manager, to buy warehouses in Japan.

Goodman raised $500 million that will enable the fund to acquire more than $1 billion of logistics properties in major cities such as Tokyo and Osaka, according to the statement released today. Goodman also said its Japan Core Fund had received allocations from three global institutional investors, taking external commitments to over $100 million.

“Today’s announcement further demonstrates our successful capital partnering approach with major global investor groups and underscores our strategy of matching third party capital with our growing development pipeline,” said Greg Goodman, chief executive of Goodman, in a statement.

Qantas Cut to Lowest Investment Grade by S&P on Losses - Bloomberg

Qantas Airways Ltd. (QAN), the Australian carrier that yesterday struck a 10-year alliance with Emirates to turn around losses on international routes, had its credit rating cut to the lowest investment grade by Standard & Poor’s.
The airline’s debt grade was lowered by one level to BBB- with a stable outlook, according to an e-mailed statement from the ratings company.
“Qantas’s business risk profile has weakened because of the structural pressures affecting the airline’s international business,” Melbourne-based analyst May Zhong said in the S&P statement. “Persistent pressures have eroded Qantas’s market share and inflicted losses on the airline’s international operations in the past few years.”

FT Alphaville » What about a statement Glenstrata?

Breaking news from Theatre-Casino in Zug.

Glencore has adjourned the make-or-break EGM following “development” overnight.

Sadly no one at the commodity trade thought to inform the market so we now have another “development” a false market.

Egypt sees upswing in mood on economy - FT.com

You couldn’t call it giddy optimism. But, in recent weeks Egypt has experienced a palpable mood swing, resulting in increased consumer and investor confidence, according to those in business, shopkeepers and political observers.
The commercial districts and shopping malls of Cairo are bustling and businesses say that shoppers are spending more. The stock market is enjoying a boom, up 37 per cent since the uncertainty surrounding presidential elections in June that propelled the Islamist Mohamed Morsi to the presidency.
A technical team from the International Monetary Fund is due in Cairo this month to negotiate a proposed $4.8bn loan package and a large US delegation, including six trade officials and representatives of dozens of US multinationals, will arrive on Saturday to drum up business.

IAG in talks with Qatar Airways over Asia - FT.com

International Airlines Group, parent of British Airways, has held talks with Qatar Airways about the possibility of the two carriers forming a partnership focused on Asia.
British Airways and Qantas confirmed on Thursday that they were terminating their joint venture on routes between the UK and Australia in March, after the Australian carrier announced plans for a partnership with Emirates Airline.

Xstrata CEO Said to Encourage Glencore, Qatar Resolution on Deal - Businessweek

Xstrata Plc (XTA) Chief Executive Officer Mick Davis has encouraged Glencore International Plc (GLEN) and Qatar’s sovereign-wealth fund to work out their differences ahead of a shareholder vote on this year’s largest takeover, according to people familiar with the situation.

Davis, who stands to get as much as 28.8 million pounds ($46 million) in performance-related bonuses should the deal succeed, has been in contact with Qatar Holding LLC and commodity trader Glencore about a resolution ahead of today’s vote by shareholders in Switzerland, said the people, who declined to be identified as the discussions are private. Davis isn’t actively involved in any negotiations between Glencore and the Qatari fund, two people said.

Emirates Airline spreads wings wider - The National

The Emirates Airline alliance with Qantas is a significant departure from its past policy of shunning closer commercial ties with rivals.

But yesterday, after months of negotiations and endless speculation, the two airlines unveiled the terms of a 10-year alliance on the so-called "kangaroo route" between Australia and Europe, due to begin next April.

"A robust economy, strong dollar and Australia's clever tourism campaigns [have] combined to make [Australia] a key growth market for all future-facing airlines of the world," is how Tim Clark, the chief executive and president of Emirates, explained his volte-face on partnerships yesterday.

Profit declines again for Orascom in Egypt - The National

Quarterly profits at Orascom Construction Industries fell by almost one third as the cost of projects in Algeria and the United States weighed on earnings.

The Egyptian company, a star performer on the Cairo stock exchange this year, is often described as a contractor but makes most of its money from fertilizer sales.

But Orascom's latest quarterly numbers are disappointing. Quarterly revenues fell 8.5 per cent to US$1.3 billion compared with the same period last year.

EK-QF deal a game changer | GulfNews.com

Isn’t retrospect a marvellous thing? Here is a prospective view on something that will over time be subject to retrospect. One day, we will look back at the Emirates-Qantas deal announced on Thursday and opine that it was a turning point.
It is too early to make that call, of course, but the deal itself is worthy of inspection now. It is a major move from two of the world’s most influential airlines. Emirates’ position in the industry needs no introduction. It is now the world’s largest international carrier. Qantas is no longer the international powerhouse it once was, but its CEO [Alan Joyce] is the chair of the industry’s trade association, IATA (International Air Transport Association). It sits on many of the most important committees in the industry and it has been a significant player in many of the air transport industry’s developments.
That includes alliances and “metal neutral” agreements with anti-trust immunity. The Qantas (QF)-British Airways (BA) deal was in fact the first of these arrangements. Judging from the announcements Thursday, that expertise will once again be put to use in negotiating what appears to be a very similar deal with Emirates.

Kuwait Airways likely to report $283 million loss | GulfNews.com

Kuwait Airways Corp, or KAC, is expected to make a loss exceeding 80 million Kuwaiti dinars (Dh1.04 billion or ($283 million) this year due to rising costs mainly related to salaries and maintenance expenses, Kuwait-based Al Seyassah daily reports Thursday, citing an executive.
KAC’s board has submitted studies to the cabinet about the way to operate and replace the airline’s fleet which would be put into action once the decree to convert KAC into a company is issued, Jasem Zainal, a member of KAC’s board, told the paper.
The plan includes replacing the fleet through lease-to-purchase contracts in order to revive the national carrier, and this can’t be achieved unless KAC is converted into a company under the supervision of Kuwait Investment Authority, he added.