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Monday, 17 June 2013

Emerging Stocks Advance Led by Russian Shares Before Fed - Bloomberg

"Emerging-market stocks rose a second day, led by Russian shares, as investors awaited this week’s Federal Reserve policy meeting. Turkey’s lira slumped after riot police stepped up their crackdown on protesters.
Stocks pared gains on concern the Fed may scale back stimulus. Russia’s Micex Index advanced 2 percent as OAO Novatek paced gains in commodity companies. Petroleo Brasileiro SA, Brazil’s state-controlled oil company, surged after selling $1.83 billion in assets and as Jefferies Group LLC raised its recommendation. Turkey’s lira weakened for the first time in a week, while stocks tumbled. Venezuela’s bond yields increased as the nation’s credit rating was lowered by Standard & Poor’s.
The MSCI Emerging Markets Index added 0.2 percent to 955.58 at 3:43 p.m. in New York, paring a gain of 0.6 percent. The U.S. Federal Open Market Committee starts a two-day policy meeting tomorrow. The developing-nation measure has fallen 8.8 percent since Fed Chairman Ben S. Bernanke said May 22 that U.S. policy makers “could” scale back economic stimulus efforts if the employment outlook showed “sustainable improvement.”"

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Arabtec Gains Most in June After Winning Contract: Dubai Mover - Bloomberg

"Arabtec Holding PJSC (ARTC), the company building the Abu Dhabi branch of the Louvre, jumped the most this month after a venture led by it won a 4 billion-dirham ($1.1 billion) contract.
The stock climbed 3.9 percent, the biggest gain since May 30, to close at 2.12 dirhams in Dubai, bringing the advance this year to 14 percent. About 46 million shares traded, or 2.1 times the three-month daily average, making the company the third most-traded stock in Dubai’s benchmark index.
Arabtec said it won the contract from Aldar Properties PJSC (ALDAR)’s unit to develop the Abu Dhabi Plaza in Astana, Kazakhstan. Construction on the mixed-use development includes five towers and is due to be completed in 2017."

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UAE revives bourse merger proposal after huge aluminium deal |

"The UAE has revived a proposal to merge its two main stock exchanges in a state-backed deal that could boost trade in the local market and attract more foreign investment to the Gulf state, sources familiar with the plan said.
Talks on a potential merger between the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) have occurred on and off since at least 2010.
There are no common listings on the exchanges; a merger could deepen the equity market of the Arab world’s second biggest economy, encouraging more companies to list their shares and international institutions to buy them."

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Prudential Financial Joins Abu Dhabi in Luxury-Home Wager - Bloomberg

"Prudential Financial Inc. (PRU), the second-largest U.S. life insurer, is joining with a government-controlled company in Abu Dhabi to bet on luxury residences on the emirate’s Saadiyat Island.
Mubadala Development Co. and the insurer’s real estate arm are 50-50 partners in a venture to buy the first phase of the Saadiyat Beach Residences, the companies said today in a statement distributed by Business Wire.
U.S. life insurers are seeking to expand abroad and bet on real estate as they cope with near record-low interest rates for bonds issued in their home country. The Newark, New Jersey-based insurer’s real estate arm this month named Michael Gallagher to help manage European property-related securities and has made additional hires this year in Asia and Brazil."

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Gazprom, VTB Eye Bonds | Business | The Moscow Times

"Gazprom and state development lender Vnesheconombank (VEB) may place a Eurobond in July, two banking sources said Monday.

The sizes of the possible issues have not been disclosed.

One of the sources said Gazprom may place an issue denominated in British pounds while VEB is looking at an issue in U.S. dollars. Gazprom is to redeem an 800 million pound Eurobond issue in October."

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Nabucco Gets A Boost In Romania Eurasia Review

"A special law on the Nabucco gas pipeline project, passed by the Romanian parliament in May, was enforced following a Bucharest meeting of the Nabucco Committee.

The project is a major EU energy effort to diversify gas supply routes for Eastern and Central Europe, and decrease the dependence on Russian resources.

The new law aims to fast-track necessary work in Romania, which is part of implementing the Nabucco project."

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Etihad mulls equity stake in Serbia's Jat Airways - The National

"Etihad Airways said on Monday it had signed an initial agreement with the Serbian government over a possible equity investment in the country's loss-making Jat Airways.

No value for the deal nor how much of a stake Etihad would take in the carrier was given in the statement, which said the purchase would be subject to a due diligence process and regulatory approvals.

A Serbian government official said in April that it was meeting officials from Etihad about selling the Abu Dhabi-based carrier a 49 per cent stake in Jat Airways."

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Qatar sells back Porsche stake to founding families - The National

"Qatar Holding, the investment arm of the Gulf state's sovereign wealth fund, has sold its 10 per cent stake in Porsche to the luxury carmaker's family shareholders, four years after it first invested in the firm.

Qatar Holding, which owns stakes in some of the world's largest companies, said it sold the common shares in the automaker to the Porsche and Piech families. It did not disclose the value of the transaction.

The sovereign fund arm said it remained committed to the Integrated Automotive Group which includes Volkswagen and Porsche through its 17 per cent stake in VW. Europe's largest automaker last year sealed the purchase of Porsche's car-making business after a merger failed in a tangle of legal disputes."

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Alfa Billionaires to Invest $10 Billion in Oil Using TNK Funds - Bloomberg

"Mikhail Fridman’s Alfa Group may invest $10 billion in the global oil and gas industry over the next five years using funds from the sale of its 25 percent holding in Russian oil producer TNK-BP.
The investment will be made through L1 Energy, a London-based venture headed by German Khan, one of Fridman’s co-investors in Alfa, according to a statement today. A trio of former oil industry chief executive officers -- BP Plc (BP/)’s John Browne, Schlumberger Ltd.’s Andrew Gould and Anadarko Petroleum Corp. (APC)’s Jim Hackett -- will serve on L1’s advisory board.
Alfa received $14 billion this year when state oil producer OAO Rosneft (ROSN) bought TNK-BP, a 10-year venture between a group of Russian billionaires and BP, in Russia’s largest ever deal. While L1 Energy will look at investments in Russia, the scope of the venture will range across the Americas, the Middle East, Africa and Asia."

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Kuwait Shares Gain Most in Two Weeks as Court Upholds Voting Law - Bloomberg

"Kuwaiti shares gained the most in two weeks after a court upheld changes to the voting law that helped bring an opposition-free parliament to power last year.
The benchmark Kuwait SE Price Index rallied 1.6 percent, the biggest increase since June 3, to 8,080.55 at the close. The index rose as much as 2.2 percent, the most since 2009, while the weighted index climbed as much as 0.8 percent before closing 0.2 percent lower. Combined Group Contracting advanced 1.6 percent to 1,280 fils. There are 1,000 fils in a dinar.
The Constitutional Court upheld an Emiri decree that reduced the number of candidates Kuwaitis can vote for in parliamentary elections to one from a previous four. The change last year led opposition groups to boycott a vote in December, leading to a government that’s faced little opposition as it puts a $110 billion investment program on fast track."

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Egypt Stock Trading Slumps to Five-Year Low Before Protests - Bloomberg

"Trading in Egypt’s benchmark stock index, the world’s worst performer in June, tumbled to the lowest level by value in five years, on concern anti-government protests will bring the nation to a “tipping point.”
Shares of about 70 million Egyptian pounds ($10 million) were traded yesterday, the lowest since Bloomberg started tracking the data in August 2008. About 85 million pounds changed hands so far today, compared with a 12-month average of about 400 million pounds.
Egypt’s stocks have slumped 15 percent in June, the most among 94 gauges tracked by Bloomberg, amid growing polarization between supporters and opponents of the North African country’s Islamist government. Both sides are calling for nationwide demonstrations on June 30, the one-year anniversary of President Mohamed Mursi taking office."

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Hungary: a little extra tax for the kitty | beyondbrics

"Despite the Hungarian government trumpeting a turnaround in the economy of late and low budget deficit figures of the past two years, Mihaly Varga, the new pragmatic finance minister, seems to believe discretion is the better part of valour: with tax revenues looking somewhat anaemic this year, he announced a mini-package of tax increases on Monday to keep the deficit on track.

First and foremost, the measures include the financial transaction tax (FTT), where the rate on electronic transactions will rise from an innocuous sounding 0.2 per cent to 0.3 per cent, although for anyone seeking to actually get hold of their dosh – hello tourists! – the rate on cash withdrawals will double, from 0.3 per cent to 0.6 per cent."

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Jet Airways tanks over 12% after Etihad approval deferred - The Economic Times

"Jet AirwaysBSE 0.00 % Ltd plunged over 12 per cent in morning trade on Monday, after India's foreign investment regulator, FIPB, deferred a decision on Etihad Airways' planned 24 percent stake buy in the airline.

At 09:35 a.m.; Jet Airways recouped some of the morning loses and was trading 8.6 per cent lower at Rs 428.30. It hit a low of Rs 411.60 and a high of Rs 432.05 in trade today.

The government on Friday deferred clearance of the Middle-Eastern carrier Etihad's proposal saying it needs clarity on the ownership structure and the level of control to be exercised by the UAE giant. "

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Guest post: EU and Ukraine must build a bridge between east and west | beyondbrics

"It is rare that world leaders have a chance to pragmatically achieve an idealistic goal, to unite bold dreams and careful statesmanship at the same time. Yet such an opportunity is now upon us, as the time for the European Union and Ukraine to come closer together, to create a bridge between east and west, is at hand.

In November, the EU and Ukraine are expected to sign an association agreement that will expand trade and travel between the two, and encourage closer integration.

After some stumbles, Ukraine is now on the road that other former Soviet-bloc countries travelled a decade ago. Step by step it is fulfilling the conditions set by the EU for the signing of the association agreement."

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State Could Pull Plug on Rosneft Privatization | Business | The Moscow Times

"Rosneft could be kept under state ownership as part of the Federal Property Management Agency's new plan that proposes a slower rate of privatization, a news report said Monday.

Under the current plan, which expires this year, the government chose 12 major companies for full privatization and planned to its reduce stake in seven more.

But now the agency wants to cancel or postpone some of the planned sales, and the government will discuss this new plan for 2014-16 in a meeting on Thursday 27 June."

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In 5-10 years Ukraine to extract 30 bcm of gas a year, country will be able to export it, says Ukrainian premier

"Ukraine plans in 5-10 years to extract of 30 billion cubic meters (bcm) of own gas every year and fully satisfy own needs in gas, Ukrainian Prime Minister Mykola Azarov has said.

“We’ve made certain calculations: during 5-10 years we’ll reach 30 billion cubic meters of own gas,” he said at a press conference on June 14, 2013 in Kyiv.

The premier said that the said volumes could satisfy own needs of the country in gas if works on energy saving and reducing of gas consumption continues. Azarov said that if the said conditions are fulfilled, the country will be able to even export gas."

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Ukrzaliznytsia plans to issue eurobonds again in H1, 2014

"The State Railway Administration of Ukraine (Ukrzaliznytsia) plans in the first half of 2014 to issue eurobonds again, Infrastructure Minister of Ukraine Volodymyr Kozak has said.

"We're the only state-run enterprise in Ukraine that has floated eurobonds worth $500 million without state support, and in 2-3 days Standard & Poor's assigned a sovereign rating to the company. Next year we'll again issue [eurobonds]," he said at the first international annual business conference, ABC: Ukraine & Partners in Kyiv on June 14, 2013.

He said that the issue of eurobonds next year would be easier, as now Ukrzaliznytsia has experience, and the trust of international companies and partners."

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Talks on Exxon Deal Completed | Business | The Moscow Times

"Ukraine's government has concluded negotiations with U.S. energy major Chevron on a second shale gas project and is lining up another energy deal with an ExxonMobil-led consortium, its energy minister said on Thursday.

Chevron has been in talks with Kiev for several months over exploration in the 5,260sq km Olesska field in western Ukraine, with the government keen for shale gas to ease Ukraine's dependence on costly natural gas supplies from Russia.

Energy Minister Eduard Stavytsky told journalists on Thursday that a draft agreement with Chevron had been sent to local authorities for approval, which is required under Ukrainian law. "They will consider it some time between June 18 and 21," he said.

The former Soviet republic signed a $10 billion production-sharing agreement with Royal Dutch Shell this year for shale gas exploration in the Yuzivska field in the east, but the Chevron plan has come up against more opposition. "

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Ukraine signs 11 agreements with international business partners at ABC: Ukraine & Partners » Interfax

"Ukraine has signed 11 agreements with business partners at the first international annual business conference, ABC: Ukraine & Partners, in Kyiv on June 13-14.

In particular, among the signed documents are a memorandum of mutual understanding between the Cabinet of Ministers and mining and metallurgical enterprises and an agreement of intent on the development of science and education in Ukraine between the Cabinet and Intel Ukraine.

Intel and Ukraine’s Education Ministry had earlier signed a memorandum of mutual understanding and cooperation in 2005-2007. Under it, Ukraine joined the Intel Teach to the Future charitable and educational program whose main goal is to introduce innovative teaching and information and communications technologies in the educational process."

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Expect bigger rallies in UAE and Qatar markets - Khaleej Times

"Investors in the GCC were given a much needed boost last week. During its Annual Market Classification Review on June 11, Morgan Stanley Capital International, or MSCI, reclassified the UAE and Qatar from frontier markets to emerging markets status, and is scheduled to come into effect in May next year.
Since the start of this year, the stock indices on the Doha Securities Market and Dubai Financial Market have logged in impressive performances, in anticipation of the long-awaited upgrade to emerging market status."

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Qatar tightens caps on banks' securities investment | Reuters

"Qatar's central bank has tightened its curbs on how much banks can invest in stocks and bonds, according to a circular released by the central bank and seen by Reuters.

Banks' total investment in equities and debt instruments must be limited to 25 percent of their capital and reserves, though debt instruments issued by the government and national banks are exempt from the limits.

Previously, under instructions to banks issued in November 2011, the limits were 30 percent each for equities and debt instruments."

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Czech Rep: political instability as PM resigns | beyondbrics

"A bribery and spying scandal that exploded onto television screens last week in a series of police raids on the prime minister’s office and other ministries has forced Czech premier Petr Necas to resign, in a move which will automatically bring down his government.

The resignation leaves his party and its partners scrambling to form a new centre-right coalition administration. But with the new leftist President Milos Zeman in office and an opposition riding high in the polls, early elections look increasingly likely."

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