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Tuesday, 11 June 2013

Tensions between Hungary and the EU: A fall from grace | The Economist

"THE EU could suspend Hungary's voting rights to force its prime minister, Viktor Orbán, to tow the line. But could too much foreign interference have unintended consequences?
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Dubai's muted inflation masks soaring costs as salaries stall - Business Intelligence Middle East - - News, analysis, reports

"Dubai’s inflation rate of less than 1 percent doesn’t capture the surging cost of living in the desert emirate, especially for the expatriates who make up most of its population.

The government reported inflation at 0.9 percent in April, while the housing index, which includes water and electricity and is the biggest component, rose 0.8 percent. By contrast, real-estate companies such as Jones Lang LaSalle Inc. and Cluttons LLC show annual increases in rents and home prices ranging from 10 percent to as much as 88 percent.

The divergence is part of a pattern that shelters Emiratis from inflation. They’re less likely to rent, have access to free government schools, and say they receive assistance with utility bills and are exempt from a housing tax. Foreigners, about 90 percent of the 2.2 million population, are exposed to higher costs in those areas, even as salaries are capped by growing demand for jobs in Dubai."

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FTSE opens new offices in Dubai International Financial Centre - Business Intelligence Middle East - - News, analysis, reports

"FTSE Group (“FTSE”), the global index provider, has opened an office within the Dubai International Financial Centre (DIFC). The total number of FTSE offices across Asia Pacific, Europe and the Americas is now 13.

The new office will provide a gateway for FTSE’s growing business in the Middle East and Africa.

“The new office will support FTSE’s regional presence, bringing FTSE’s global expertise to sovereign wealth funds and family offices. It will also act as a hub for FTSE’s growing operations in Africa,” said Jonathan Cooper, Managing Director, Middle East and Africa."

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Dubai Shares Advance on Optimism MSCI Will Upgrade to EM Status - Bloomberg

"Dubai’s shares gained the most in more than a week on investor optimism the United Arab Emirates will be upgraded to emerging-market status at MSCI Inc. (MSCI)
Dubai Financial Market (DFM), the only publicly traded stock exchange in the Gulf Cooperation Council, advanced the most in a week. Dubai Investments PJSC (DIC) posted the biggest gain since June 2 with almost 60 million shares traded, or 1.6 times the three-month daily average. The DFM General Index climbed 0.6 percent, also the most since June 2, to 2,358.28. Abu Dhabi’s index rose 0.3 percent, while Qatar’s QE Index fell 0.2 percent.
The U.A.E. and Qatar are under consideration for a fifth year for a possible upgrade from frontier-market status at MSCI, whose indexes are tracked by investors managing about $7 trillion. A promotion could lead to about $370 million flowing into the U.A.E. and more than $430 million into Qatar, HSBC Holdings Plc (HSBA) said in a report dated May 31. MSCI will publish the results of the 2013 annual market classification review shortly after 11 p.m. central European summer time."

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Saudi Civil Aviation Hires HSBC, NCB, StanChart for Sukuk - Bloomberg

"Saudi Arabia’s General Authority of Civil Aviation, which raised 15 billion riyals ($4 billion) from Islamic bonds sale last year, hired three banks for another local-currency offering, a banker familiar with the matter said.
The Saudi Arabian affiliate of HSBC Holdings Plc (HSBA), National Commercial Bank’s investment banking unit and Standard Chartered Plc will manage the sukuk sale, according to the banker, who asked not to be identified because the information is private. NCB Capital and Standard Chartered bid jointly for the mandate.
A spokesman for the authority known as GACA, who asked not to be identified because of company policy, confirmed that banks have been hired for a sukuk sale. He declined to specify how much the authority sought to raise."

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Fitch affirms 11 Saudi Arabian banks; revises 3 banks' outlooks to negative | Fitch Ratings |

"Fitch Ratings has affirmed 11 Saudi Arabian banks as part of a peer review of the Saudi banking sector. Fitch has revised the Outlooks on three of these (Arab National Bank (ANB), Banque Saudi Fransi (BSF) and Saudi British Bank (SABB)) to Negative from Stable."

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Industries Qatar unit secures loan for expansion |

"Qatar Petrochemical Co., a subsidiary of Industries Qatar, has secured a 1.1 billion riyals (Dh1.1 billion) facility from Barwa Bank as it plans for significant business expansions.
Qapco is committed to expand its activities as part of Qatar’s growth plans for its petrochemical industry, the company said in a statement posted on the Doha bourse website on Monday.
It preferred to have the option to secure more liquidity on demand, when required, instead of utilising the accumulated operational profit surpluses yielded throughout the years, Qapco said.
Industries Qatar owns a 80 per cent stake in Qapco, while France’s Total SA has the balance shares."

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UAE emerges a major trade partner of Russia |

"The UAE has emerged the leading trade partner of Russia with the total volume of trade reaching Dh7.3 billion ($2 billion) in 2012. Russia expects the trade figures to surge further this year due to a steady increase in joint ventures, trade exchanges and tourism activities.
More than a million Russian tourists are expected to visit the UAE this year. Alexander Efimov, the newly appointed Russian Ambassador to the UAE, spoke to Gulf News on the prospects of trade relations between the two countries"

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Dubai World makes first major asset sale since crisis | Reuters

"Dubai World DBWLD.UL, the state-linked group whose $25 billion of debt brought the emirate to the brink of financial collapse in 2009, has sold one of its UK assets as part of its efforts to repay creditors.

A unit of Toronto-based investment company Brookfield Asset Management (BAMa.TO) has bought logistics warehouse developer Gazeley from Dubai World subsidiary Economic Zones World (EZW), the Canadian firm said in a statement on Tuesday.

It did not disclose the value of the transaction."

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Dubai Economy Expands Most Since 2007 on Restaurants, Hotels - Bloomberg

"Dubai’s gross domestic product expanded the most in five years in 2012 as the emirate, whose economy collapsed after the global credit crisis, rebounded on hotel and restaurant activities.
The emirate’s economy grew 4.4 percent last year, compared with 3.6 percent in 2011 and 3.5 percent in 2010, according to Dubai Statistics Center data. The sub-index for restaurants and hotels grew 17 percent in 2012, while manufacturing expanded 13 percent. Wholesale, retail trade and repairing services, which account for 30 percent of Dubai’s GDP, climbed 2.3 percent, the data show. The emirate’s economy expanded 18 percent in 2007.
Dubai’s economy is rebounding as confidence in the emirate’s ability to repay its debt is restored. Three state-linked companies paid or refinanced $3.75 billion of debt in 2012, in addition to a 3.3 billion dirham ($898 million) liability that matured in April. Sheikh Ahmed bin Saeed Al Maktoum, head of the emirate’s Supreme Fiscal Committee, said the emirate is committed to repaying its debts, and will do “whatever we have to do.”"

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Casino Dubai’s Rebound Pitch Ignored by Global Investors - Bloomberg

"Dubai is back with the big plans. What it doesn’t have are the biggest property investors.
Surging home prices in parts of Dubai and rebounding shopping and tourism markets are prompting developers to announce projects on a scale not seen since the emirate’s property market collapsed in 2008. So far, sovereign wealth, pension and insurance funds are staying away even as they splurge on real estate elsewhere."

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Dubai Group's battered asset value flags pain for creditors | Reuters

"Investment firm Dubai Group's assets are worth just a fifth of its $10 billion of debt, sources involved in its restructuring said, signalling creditors signing up to a debt deal may face big losses without a major improvement in values.

A unit of Dubai Holding, the investment arm of Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum, Dubai Group has a portfolio of mainly financial services assets bought during the boom years of the mid-2000s, but which have plunged in value since the 2008 global financial crisis.

After missing interest payments on two loan facilities in the latter part of 2010, Dubai Group and its lenders have been locked in what has been described by those involved as the most complex debt restructuring of a Dubai state-linked entity."

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EM assets hit in fierce market sell-off -

"Emerging market currencies, stocks and bonds tumbled on Tuesday as investors shunned assets in developing nations amid concern over the possible winding down of the US Federal Reserve’s emergency bond-buying programme.
As the yield on the benchmark 10-year Treasury note touched its highest level in 14 months at 2.27 per cent in early trading in New York, the Indian rupee hit a record low of 59 against the US dollar and the South African rand touched its lowest point in four years."

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Poland’s intervention, explained | beyondbrics

"Poland’s central bank said on Tuesday it simply wished to avoid sharp swings in the value of the zloty after it surprised investors by intervening to prop up the currency for the first time since the end of 2011.

“We are not interested in shaping the exchange rate for longer periods of time,” Andrzej Raczko, a non-voting member of the bank’s board and former finance minister, told the TVN CNBC business news channel. “We cannot allow sharp swings in the exchange rate… We can only influence the currency market when the market is very unstable.”

The central bank and the state-owned BGK bank intervened several times on Friday, selling euros for zlotys to prop up the Polish currency’s value after it hit a one-year low on Thursday of 4.32 to the euro. Its latest fall following comments by Marek Belka, central bank governor, who said he was unconcerned at the weakness of the currency and that it helped Polish exporters. After the interventions, the zloty recovered some ground and was trading at about 4.28 to the euro on Tuesday."

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[video] How emerging markets are maturing | beyondbrics

"The distinction between emerging markets and developed markets is eroding as EM financial systems mature. Ewen Cameron Watt, chief investment strategist at BlackRock Investment Institute, tells Long View columnist John Authers how emerging markets are growing up."
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Ukranian News - Ukroliyaprom: Ukraine's Sunflower Oil Supplies To China Grow

"The Ukroliyaprom association points to the growth in the supplies of Ukrainian sunflower oil to China, director general of the association Stepan Kapshuk said.
Ukraine exports sunflower oil to over 90 countries.
The largest of them are: India (30.1% of the total export), European Union countries (16%), Egypt (12.1%), Turkey (9%) and this year, China joined them."

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Libya oil sit-ins cause 250,000 bpd production deficit - Your Middle East

"Protests at Libyan oilfields have cost 250,000 barrels per day (bpd) in lost production, Oil Minister Abdelbari al-Arussi said on Monday.

"Libya's production has been affected recently by sit-ins which have stopped production and caused a deficit of 250,000 bpd," Arussi said in comments carried by the official LANA news agency.

Demonstrations have been held at the terminals at Al-Harriga in Tobruk and Zueitina in the east, and at the Al-Fil oilfield in Ubari in the south, Arussi said."

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Tensions between Hungary and the EU: A fall from grace - YouTube

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