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Thursday, 12 September 2013

Twitter files confidential IPO registration — RT Business

Twitter files confidential IPO registration — RT Business:

"Twitter has announced it has confidentially submitted a document to the Securities and Exchange Commission with plans for an initial public offering of stock.

San Francisco-based Twitter Inc. announced its plans on its official Twitter account.



Since Twitter has submitted for IPO confidentially that means it had annual revenue of less than $1 billion in the recent fiscal year, as the US Jumpstart Our Business Startups Act only allows companies with less than $1 billion in annual gross revenue to file in secret.

Goldman Sachs will reportedly be a lead underwriter with a primary directive for organizing an initial public stock offering for Twitter, Bloomberg reports. "

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Azarov: Shell to produce shale gas in Yuzivska block in industrial quantities from 2015

Azarov: Shell to produce shale gas in Yuzivska block in industrial quantities from 2015:

"Royal Dutch Shell is to launch shale gas production in the Yuzivska block in industrial quantities from 2015, according to Ukrainian Prime Minister Mykola Azarov.

"It's hard to overestimate the [value of the] operating agreement Shell and Nadra Ukrainy have signed today," Azarov said at a press briefing in The Hague on Thursday.

He said that Shell was from today starting a lot of work to develop deposits in Ukraine.

"This has been the focus of our talks with Shell's CEO today, and [we've] determined that Shell will produce significant volumes of gas in Ukraine as early as from 2015," he added.

As reported, Ukraine in 2012 conducted three tenders for concluding production sharing agreements on the Yuzivska (Kharkiv and Donetsk regions), Oleska (Lviv and Ivano-Frankivsk regions) and Skifske fields (the Black Sea shelf)."

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Daily chart: The rich get richer | The Economist

Daily chart: The rich get richer | The Economist:

"How incomes have changed for the rich and the rest

THE recovery belongs to the rich. It seemed ominous in 2007 when the share of national income flowing to America's top 1% of earners reached 18.3%: the highest since just before the crash of 1929. But whereas the Depression kicked off a long era of even income growth the rich have done much better this time round. New data assembled by Emmanuel Saez, of the University of California, Berkeley, and Thomas Piketty, of the Paris School of Economics, reveal that the top 1% enjoyed real income growth of 31% between 2009 and 2012, compared with growth of less than 1% for the bottom 99%. Income actually shrank for the bottom 90% of earners. After the Depression households across the income spectrum enjoyed income growth roughly commensurate with losses during the downturn. As a result the top 1% only captured about 28% of total income growth from 1933 to 1936. This time around 95% of the increase in American income since 2009 has gone to the top 1%. No wonder, then, that the share of national income flowing to the rich is at a record high of 19.3%, ahead of both 2007 and 1929.

"

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Caspian countries are developing new oil and natural gas export capacity - Today in Energy - U.S. Energy Information Administration (EIA)

Caspian countries are developing new oil and natural gas export capacity - Today in Energy - U.S. Energy Information Administration (EIA)
Source: U.S. Energy Information Administration, U.S. Geological Survey, IHS EDIN
Note: See table for pipeline details.Update: The long-delayed Kashagan field reportedly has produced its first oil,
according to the North Caspian Operating Company.

The Caspian Sea region has the potential to export oil and natural gas to European, South Asian, and East Asian markets. With rising energy prices and growing global demand for oil and natural gas, Caspian region countries (which include Russia, Azerbaijan, Kazakhstan, Turkmenistan, Uzbekistan, and Iran) are developing several approaches for increasing exports of oil and natural gas. Some countries cooperate and jointly develop oil export capacity, while others focus on attracting enough investment to create their own routes.
Traditionally, Caspian oil and natural gas went directly to Russia through Soviet infrastructure, such as the Central Asia-Center (CAC) gas pipeline system, where some could go to Western markets. Kazakhstan and Azerbaijan have had the most success in developing Caspian oil and natural gas export capacity through the construction of several major pipelines, which have become the main transit routes for Caspian hydrocarbons. The biggest export route to bring oil directly from Caspian fields to European markets is the Baku-Tbilisi-Ceyhan (BTC) pipeline, which was commissioned in 2006. The BTC pipeline runs from the Caspian Sea to the Black Sea and carries an average of 1 million barrels of oil per day. A parallel pipeline built around the same time transports up to 280 billion cubic feet of natural gas per year.
With growing oil and natural gas production in Kazakhstan and Azerbaijan, the two countries are working to develop new export routes, such as the Kazakhstan-Caspian Transportation System (KCTS). This network will take oil from Kazakhstan's largest fields, Kashagan and Tengiz, and move it to the Caspian coast where it will go by ship to Azerbaijan and then on to the BTC pipeline. KTCS is expected to supply 300,000 barrels per day through BTC to global markets, gradually increasing to 800,000 barrels per day. Foreign investment will fund part of the project, estimated to cost $4 billion.

VimpelCom Mulls European Listing | Business | The Moscow Times

VimpelCom Mulls European Listing | Business | The Moscow Times:

"No. 3 mobile operator VimpelCom plans to list on a European stock exchange in a bid to make its shares more marketable, reports said Thursday.

The company's CEO, Jo Lunder, told the Bloomberg news agency about the plan and a spokesperson confirmed that VimpelCom is looking to attract more European investment, Vedomosti reported.

VimpelCom did not offer a location or a timeframe for the move.

On Tuesday, the telecom giant moved its American depositary receipts listing from the New York Stock Exchange to NASDAQ, where more shares of technology companies are traded, in an attempt to give them more liquidity, Lunder said."

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Dubai's non-oil trade with Iran shrinks 12 pct in H1 | Reuters

Dubai's non-oil trade with Iran shrinks 12 pct in H1 | Reuters:

"* Trade down to $2.9 billion

* Fall slows after 31 pct drop in 2012

* Re-exports to Iran shrink 13.5 pct

* No major impact on Dubai's economy

* Total Dubai trade up 16 pct in January-June

By Martin Dokoupil

DUBAI, Sept 12 (Reuters) - Dubai's non-oil trade with Iran shrank 12 percent in the first half of 2013, a sign that Western sanctions continue to inflict fresh damage on the Iranian economy, data showed on Thursday.

Dubai, across the Gulf from Iran and home to tens of thousands of ethnic Iranians, has long been a major commercial hub for the Iranian economy, re-exporting consumer goods from other countries to the Islamic republic.

This role suffered after U.S. financial sanctions, imposed in late 2011 over Iran's disputed nuclear programme, caused banks in Dubai and around the world to cut back sharply on Iran-related business."

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VTB's Profits, Bad Debt Charges Rise | Business | The Moscow Times

VTB's Profits, Bad Debt Charges Rise | Business | The Moscow Times:

"VTB on Thursday reported a 16 percent rise in second quarter net income and set aside more than expected to cover bad debts.

But the bank said it expected the pace of growth in these provisions to slow in the second half of the year.

Russian banks have piled into high-margin consumer lending as demand for credit slowed at companies, however, a slowing economy has raised fears that consumers would struggle to repay their debts.

VTB said net profit for the second quarter was 11.9 billion rubles ($362 million), compared with 10.3 billion in the same period of 2012. Analysts had predicted net profit of 16 billion rubles."

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Guest post: negative sentiment on EM is overblown | beyondbrics

Guest post: negative sentiment on EM is overblown | beyondbrics:

"
By Steffen Reichold of Stone Harbor

Since May, global fixed income markets have experienced large sell-offs. The immediate trigger was a sharp increase in US Treasury yields as the Federal Reserve signalled a willingness to taper its quantitative easing programme. But the sell-off also coincided with growing concern over slower growth in emerging markets over the past 24 months, exacerbated, among others factors, by fears about widening current account deficits. This negative sentiment, we think, is overblown.

We believe EM fundamentals remain strong and their economies will benefit from a recovery in developed markets. We have seen very large adjustments in valuations and technical positions, creating interesting investment opportunities in EM debt. But differentiation across countries is critical in this environment.

Even though there has been a slowdown, EMs are still growing significantly faster than DMs including the US, the eurozone and Japan (see chart below). Better DM growth is bound to boost demand for EM exports.

Sources: IMF World Economic Outlook, Stone Harbor Investment Partners LP
"

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Oligarchs Give Ukraine's President Crucial Support In EU Drive

Oligarchs Give Ukraine's President Crucial Support In EU Drive:

"
EU President Belgian Herman Van Rompuy (center) and European Commission President Jose Manuel Barroso (right) welcome Ukrainian President Viktor Yanukovych ahead of an EU-Ukraine Summit in Brussels earlier this year.
As Ukrainian President Viktor Yanukovych forges ahead with his bid to bring his divided country closer to the European Union, he is getting support from a surprising source -- many of the country's leading oligarchs.

According to Borys Kolesnykov, a lawmaker from Yanukovych's Party of Regions and one of the 50 richest Ukrainians according to "Forbes" magazine, support for EU integration is almost universal among the country's economic elite.

"There can't be any groups that don't support European integration..." he says. "The stronger the competition is, the more quickly Ukrainian enterprises will develop [and] if there hadn't been the Kyiv Dynamo [soccer team] in the 1990s, then [Donetsk] Shaktar wouldn't have been so good. Competition stimulates quality.""

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Wednesday second day of sharp upturn for UAIndex - Business - News - Ukraine Business Online

Wednesday second day of sharp upturn for UAIndex - Business - News - Ukraine Business Online:

"KYIV, Sept 12, 2013 (UBO/UkrAgroConsult) – Kernel and MHP together hold about 54% of the entire Index’s capitalization. Any day you have the twin 800-pound gorillas of the Index as first and second on the Best Performing list has to be a good day. Yesterday was just such a day with Kernel topping the list, up +3.10% on trade of 177,507 shares, followed by MHP, up +2.83% on trade of 24,630 shares. Kernel was also Wednesday’s Volume Leader.

In the lead on the Worst Performing list we find Tuesday’s Best Performer, Agroton, the Index’s perennial bouncing ball. Agroton, up +11.85% on Tuesday was down -2.36% Wednesday on trading of 35,771 shares."

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Turkey: no fixing that Achilles heel | beyondbrics

Turkey: no fixing that Achilles heel | beyondbrics:

"This week, Turkey reported better than expected growth figures. But Thursday, it came out with worse than expected current account figures – a $5.8bn deficit for July, compared with an expected $5.5bn or so.

So the phenomenon widely seen as the Turkish economy’s biggest Achilles heel – the deficit that makes the country deeply reliant on foreign funds – is still stubbornly large. This at a time when foreign resources are expected to be in much less bountiful supply, due, among other factors, to the prospect of US Federal Reserve tapering its monthly bond buying programme.

Timothy Ash of Standard Bank teases out a common message from the deficit data and Tuesday’s growth figures, which featured strong domestic demand and declining net exports."

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Abu Dhabi to invest record $5bn in Russian infrastructure — RT Business

Abu Dhabi to invest record $5bn in Russian infrastructure — RT Business:

"
Abu Dhabi, United Arab Emirates (RIA Novosti/Aleksandr Yurev)
The UAE will invest up to $5 billion in Russian infrastructure projects in a deal between the Russian Direct Investment Fund (RFIF) and the Abu Dhabi Department of Finance, marking the highest investment to Russia from the Emirates.

President Vladimir Putin and Mohamed bin Zayed Al Nahyan, the commander of the UAE’s army, signed a memorandum of cooperation on Thursday.

"We are very pleased with your arrangement with the Russian Direct Investment Fund to invest up to $5 billion in Russian projects," said Putin.

Moscow and Abu-Dhabi agreed on a joint venture investment platform to develop Russian roads, ports and bridges.

While RDIF has been cooperating with Arab investors for a long time, the latest deal marks one the world’s biggest infrastructure projects, according to RDIF head Kirill Dmitriev, cited by Vedomosti. "

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Second Life Bankers Thrive in Dubai as Boutiques Boost Fees - Bloomberg

Second Life Bankers Thrive in Dubai as Boutiques Boost Fees - Bloomberg:

"After two decades as an investment banker at Goldman Sachs Inc. (GS) and Bank of America Corp. (BAC), Ziad Awad figured he could do more deals striking out on his own.
“Banks were facing constraints such as the increased cost of capital and reduced risk appetite,” Awad, head of Boardroom Metrics Arabia and founder of merger and acquisition firm Awad Advisory, said by phone. “Banks wanted to do fewer but bigger deals at a higher fee, while I wanted to do more and more.”"

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Dubai projects | Biggest mall | Where will it end?

Dubai projects | Biggest mall | Where will it end?:

"

BIG TIME: DUBAI'S MEGA PROJECTS

The 300 man-made islands off the coast of Dubai known as 'The World'. Photo: AFP
You have to wonder where it's all going to end in Dubai.

Among projects slated for the superlative-hungry city are an oversized replica of the Taj Mahal, the world's largest ferris wheel, the world's biggest shopping mall (again) and dozens of new top-end hotels.

The city is already home to the world's largest man-made island, largest shopping mall, richest horse race, tallest building and most famous "seven-star" hotel.

Dubai is also on track to become the world's No. 1 international airport, having recently overtaken Paris Charles de Gaulle for the No. 2 spot behind London Heathrow."

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Guest post: Rajan at the RBI – will his reforms work? | beyondbrics

Guest post: Rajan at the RBI – will his reforms work? | beyondbrics:

"
By Hemindra Hazari of Nirmal Bang Institutional Equities

Since Raghuram Rajan took over as governor of the Reserve Bank of India on September 4, the battered rupee and India’s badly bruised stock and bond markets have staged a sharp recovery. Markets, it seems, believe the governor can restore confidence and revive inflows of foreign capital.

His initiatives include making it easier for banks to open new branches, with the possibility of differentiated bank licenses and the likelihood of continuous or on-tap bank licensing. To develop the money and government securities markets, the RBI plans to introduce cash settled 10 year interest rate future contracts as well as futures on overnight interest rates. It also plans to introduce inflation-indexed savings products and to set up an exchange to trade invoices issued by small businesses against large companies."

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[video] Junk emerging | beyondbrics

[video] Junk emerging | beyondbrics:

"It took a decade for investors to shift from treating emerging market debt like junk to treating it like investment grade bonds. It’s now trading closer to junk bonds again for the first time since 2007, explains James Mackintosh.


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Fule: EU to support partners facing pressure from Russia| Ukrinform

Fule: EU to support partners facing pressure from Russia| Ukrinform:

"The EU will support the Eastern Partnership countries that are currently facing undue pressure from Russia.
EU Commissioner for Enlargement and European Neighborhood Policy Stefan Fule said this during a debate in the European Parliament, which took place in Strasbourg on Wednesday on the issue of the pressure exercised by Russia on the Eastern Partnership countries ahead of the summit in Vilnius this November, a Ukrinform correspondent reported.
"The European Union will support and stand by those who are subject to undue pressures," the commissioner said."

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UIB fine by DFSA highlights risk of trusting UAE investment advisers « ArabianMoney

UIB fine by DFSA highlights risk of trusting UAE investment advisers « ArabianMoney:

"
The Dubai Financial Services Authority has slapped a paltry $50,000 fine on the United Investment Bank for failing to provide appropriate safeguards for its financial products. This case highlights the risks of placing trust in unknown and unproven investment houses in an offshore location like Dubai.

The DFSA cited weaknesses in UIB’s ’systems and controls’ for custodian services that hold share certificates or other assets with a third party on behalf of an individual or company. The National newspaper reported that in one instance UIB failed completely to provide these services despite an explicit contract to do so in its prospectus."

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More Boom-and-Bust Seen in Dubai’s Cash-Driven Recovery - Bloomberg

More Boom-and-Bust Seen in Dubai’s Cash-Driven Recovery - Bloomberg:

"After five years living in Dubai, Akanksha Goel and her husband decided to buy a property instead of paying $68,000 a year to rent their three-bedroom house.
It never happened. Though Goel, the owner of a small advertising agency, and her cameraman husband, were prepared to pay 50 percent upfront, the couple was classified as “high-risk” because she’s self-employed. They were offered a mortgage for 30 percent of the home’s value at double the rate given to buyers with the best credit.
“We decided to bypass the hassle of buying here and we’ll just look into investing somewhere else,” Goel, 27, said in a phone interview. Goel, who is from India, and her Australian husband are looking in Sydney and London, she said."

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Dubai’s Biggest Broker Doubling Staff as Trading Surges on Syria - Bloomberg

Dubai’s Biggest Broker Doubling Staff as Trading Surges on Syria - Bloomberg:

"Dubai’s biggest brokerage plans to almost double staff over the next year, counting on growing demand for the emirate’s equities, as trading in the world’s most-volatile stock market climbs to a three-year high.
Mena Corp Financial Services LLC, which traded the most shares in Dubai since April among 48 brokerages tracked by the exchange, will boost the number of employees to 50 from 27, Managing Director Nabil Al Rantisi said by phone Sept. 10. The 100-day moving average of stocks traded in the emirate surged to 692 million dirhams ($188 million) yesterday, the highest level since February 2010, data compiled by Bloomberg show."

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Fake Plastic Souks: Credit Crunch To Hit UAE

Fake Plastic Souks: Credit Crunch To Hit UAE:

"
(Photo credit: Wikipedia)
Today's press carry the comments of His Excellency Abdulaziz Al Ghurair, the Chairman of successful local bank Mashreq and also the head of the UAE Banking Federation. This is someone who speaks with remarkable authority on banking and his comments are, indeed remarkable.

Al Ghurair told local media at a roundtable yesterday he believed the UAE retail market was over-borrowed and that the planned introduction of a credit bureau in 2015 would halt lending to consumers.

"Once the credit bureau is applied there will be no lending to anybody for six to 12 months because the banks will find out who's really been borrowing and how much," He's quoted as saying in The National. "They will find out all those people who have four or five credit cards.""

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WTI Crude Fluctuates as Saudi Arabia Sees Ample Oil Supply - Bloomberg

WTI Crude Fluctuates as Saudi Arabia Sees Ample Oil Supply - Bloomberg:

"West Texas Intermediate crude swung between gains and losses after Saudi Arabia, the biggest producer in the Organization of Petroleum Exporting Countries, said the global oil market is well-supplied.
Futures fluctuated in New York after Ali Al-Naimi, Saudi Arabia’s oil minister, said the nation will meet additional demand as geopolitical concerns dominate the market. The U.S. and Russia meet today to discuss a plan for Syria to surrender its chemical weapons. Prices rose yesterday for the first time in three days as government data showed supplies at the largest U.S. oil hub shrank to the lowest since February 2012.
“The reason for the oil premiums have to be questioned,” said Jonathan Barratt, the chief executive officer of Barratt’s Bulletin in Sydney. “The summer drive time has now ended, and although we’ve had some draws toward the close, expect builds now. Syria is changing, emerging market risk is not there. Overall, I don’t think prices should be up at these levels.”"

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Wolf Richter: Housing Bubble In Full Bloom, Zany Price Increases, And Now A Sudden Slowdown « naked capitalism

Wolf Richter: Housing Bubble In Full Bloom, Zany Price Increases, And Now A Sudden Slowdown « naked capitalism:

"Cities have seen dizzying home-price increases that are giddily reported and infused with pandemic housing hype and trillions from the Fed into a self-propagating force. And it has become accepted wisdom that the housing market would recover all the way to where it was in 2006, which would represent a complete recovery, a sign that the Fed has done its job, that it cured at least one of the ills that has been dogging this economy for so long.

Alas, not too long ago, everyone had called 2006 “the peak of the housing bubble,” the apogee of all craziness, one of the causes of the disaster that followed, and everybody had tales of just how crazy it was back then. All this is forgotten. The prices of 2006 are suddenly no longer the peak of the housing bubble, but a goal to get back to."

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Iranian parliament investigates tycoon over oil deals | ASHARQ AL-AWSAT

Iranian parliament investigates tycoon over oil deals | ASHARQ AL-AWSAT:

"The Iranian parliament has formed a “special working group” to investigate a USD 2-billion debt owed by a prominent Iranian businessman to the country’s oil ministry.

“The Energy Committee at the Iranian Parliament has been investigating the case since a long time ago,” Mousa Ahmadi, a committee member said on Wednesday.

Iranian Oil Minister Bijan Namadar Zanganeh said Tuesday that Iranian tycoon Babak Zanjani has not yet returned more than USD 2 billion of Iranian oil revenue that he was supposed to transfer back to state coffers."

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Saudi Gazette - Qatar to double number of listed companies in 5 years

Saudi Gazette - Qatar to double number of listed companies in 5 years:

"The new capital market regulations including plans to launch a second market on the Qatar Exchange could double the number of listed companies in the next five years, MEED Qatar Banking Summit learned.

The Qatar Exchange (QE) has 42 listed companies. Its aggregate market capitalization as of Sept. 10 was $144 billion. In June, the MSCI upgraded Qatar from frontier market to emerging market status. Qatar is due to be included in the MSCI emerging market index in May 2014.

Director of Legal Affairs and Enforcement at Qatar Financial Markets Authority (QFMA) Dr. Zain Al Abdin Sharar told the MEED Qatar Banking Summit that the forecast of a sharp increase in the number of listed firms and the volume of trade on the QE will reflect the impact of a wide-ranging program of capital market reform. He said important further changes will soon be implemented."

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Abu Dhabi to be Jet's hub after deal with Etihad | Business Standard

Abu Dhabi to be Jet's hub after deal with Etihad | Business Standard:

"In what might impact Jet Airways’ operations out of its present hub in Brussels (Belgium), the Indian airline would have to develop Abu Dhabi as an exclusive hub for flights to North America, South America, Africa and the United Arab Emirates (‘exclusive territories’), according to the final commercial cooperation agreement (CCA) signed with Abu Dhabi-based Etihad Airways.

Canada would be included in the list of ‘exclusive territories’ once relevant amendments are made to the bilateral air services agreements to permit Jet to fly to Toronto via Abu Dhabi. Jet currently flies to New York and Toronto via its hub in Brussels.

A copy of the CCA has been reviewed by Business Standard. It additionally states Jet would have to route its services from India to Sharjah and Dubai through Abu Dhabi, as soon as it becomes economically viable. However, exceptions can be made, allowing Jet to continue non-stop operations between India and destinations in the ‘exclusive territories’, if Etihad agrees this would be economically viable."

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Qatar trade surplus shrinks in July on lower exports

Qatar trade surplus shrinks in July on lower exports:

"Qatar’s trade surplus shrank about 3% year-on-year (y-o-y) to QR32.85bn this July on lower exports, especially natural gas, and higher imports.

The energy-rich Gulf country’s total exports (valued free-on-board) were down 1.60% to QR41.26bn, dragged by lower shipments to South Korea and China, according to the preliminary estimates of the Ministry of Development Planning and Statistics.

Japan continued to be the top destination of Qatar’s exports, followed by South Korea, India, China and Singapore.

Qatar’s re-exports surged 84.10% to QR747mn during the review period."

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Dramatic rise and fall of jailed MMA group businessman | GulfNews.com

Dramatic rise and fall of jailed MMA group businessman | GulfNews.com:

"
kingpin: Malik Naureed Awan, CEO of MMA group of companies, is accused of swindling
hundreds of investors in Dubai photo:courtesy MMA Group
Malik Noureed Awan’s website calls him the ‘youngest successful businessman of Asia with an aim to conquer the world’ and until late last year there was little to say that his life didn’t epitomise the sobriquet.
He lived it up in style — jet-setting around the world and hobnobbing with the UAE’s elite circles — from sponsoring top cricket events to attending gala black tie functions — with no one in a position to really point a finger.
A self-proclaimed ‘proud Pakistani’, the 20-something’s list of companies too seemed to run the distance — a heavy machinery company, an advertising firm, an online radio, a social networking platform, a welfare organisation, a private airline, a financial investment company in the name of a bank and a forex trading syndicate.
It’s the last one though that’s making the CEO of the MMA Group of companies - named after his father Malik Mushtaq Awan, a man who is said to have made a modest start in the UAE - newsworthy again, albeit for the wrong reasons."

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Dubai financial regulator slaps fine on United Investment Bank - The National

Dubai financial regulator slaps fine on United Investment Bank - The National:

"Dubai's financial regulator has enforced a penalty of US$50,000 against United Investment Bank (UIB) following an investigation that revealed the lender's failure to provide appropriate safeguards for its financial products.

UIB demonstrated weakness in its "systems and controls" for its custodian services, in which share certificates or other assets are held with a third party on behalf of an individual or company.

In one case, the bank failed to provide custody services to a client entirely, even though it had been contracted to do so according to the fund's prospectus.

"UIB knew this and failed to notify the [regulator] until nine months later," the Dubai Financial Services Authority said. The bank "has not dealt with the DFSA in an open and cooperative matter"."

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Credit bureau will 'grind to a halt' UAE customers' over-borrowing - The National

Credit bureau will 'grind to a halt' UAE customers' over-borrowing - The National:

"
Abdul Aziz Al Ghurair, the head of the UAE Banking Federation and the chairman
of Mashreq says banks had already begun compiling information on account holders
to assess their creditworthiness. Satish Kumar / The National

One of the UAE's most eminent bankers believes the supply of new credit to existing customers could nearly grind to a halt once the proposed UAE credit bureau becomes fully operational in 2015.

"Once the credit bureau is applied there will be no lending to anybody for six to 12 months because the banks will find out who's really been borrowing and how much," said Abdul Aziz Al Ghurair, the head of the UAE Banking Federation (UBF) and the chairman of Mashreq.

"They will find out all those people who have four or five credit cards."

At an annual round-table briefing for journalists in Dubai, he later clarified his remarks to refer to existing bank customers."

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Financial markets through the last five years | GulfNews.com

Financial markets through the last five years | GulfNews.com:

"
  • Image Credit: Ahmed Ramzan/Gulf News
  • Investors at the Dubai Financial Market. Even though Dubai has been doing well for the last two years it is still down a whopping 60.1 per cent from its historic high.
Five years ago as news of the collapse of investment bank Lehman Brothers rocked the global financial system, shares across world’s stock exchanges plummeted.
The reaction in the Gulf was no different. The meltdown on Wall Street spread fear and panic among the region’s investors and on September 15, the day following Lehman’s announcement of filing for bankruptcy, Saudi Arabia’s Tadawul Index sank 6.5 per cent, Qatar’s QE Exchange Index plunged 7.1 per cent, Kuwait lost 3.8 per cent and Abu Dhabi and Dubai indices fell 4.4 and 1.7 per cent respectively.
However in the following week, except Saudi Arabia, all the others recovered and ended the week in positive territory. But the gains were short lived.
As the world came to terms with the severity of the West’s debt crisis in the following weeks and months and governments and central banks went out of their way to stem the deepening credit crunch with massive bailouts—US unveiling a $700 billion (Dh2.5 trillion) package in October and subsequently by bringing interest rates down to close to zero—reality was starting to hit home."

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Lessons for equity investors | GulfNews.com

Lessons for equity investors | GulfNews.com:

"1. Crisis presents an opportunity: Following Dubai World’s decision to postpone its debt repayments for six months, the Dubai stock index sank 13 per cent over the next two trading sessions. Emaar Properties plunged 19 per cent and most stocks’ prices were going limit down over the same period. When everyone was selling off, Mark Mobius, executive chairman of Templeton Emerging Markets Group sitting in Hong Kong, saw this as a buying opportunity. He piled on shares of Emaar and some Abu Dhabi bank stocks. In the last five years, Emaar had gone down to Dh1.74 and today at Dh5.30 it is up 205 per cent.
“Don’t be afraid to go against the current when you have enough conviction,” said Fadi Al Said, head of equities at ING Investment Management.
Vijay Harpalani, assistant fund manager at Al Mal Capital, agrees. “Always try NOT to follow the herd.”
One should also not get carried away by investor exuberance which creates bubble-like situations, said Shakeel Sarwar, head of asset management at SICO, Bahrain."

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Outside View: Ukrainian president and European values - UPI.com

Outside View: Ukrainian president and European values - UPI.com:

"When Viktor Yanukovych was elected president three years ago a lot of Ukrainians hoped that he had changed and become more democratically minded. Ukrainians believed that after coming to power Yanukovych wanted to put this image behind him and respect the constitution and laws.

They were completely wrong.

Yanukovych has shown himself to be more Soviet than European with no respect for private property, human rights, the rule of law and democratic values in general. This view of the world is made doubly worse by the influence of his past twice imprisonment in Soviet Union, which explains the appearance of aggressiveness toward political opponents, journalists and civil society.

Why then should the European Union extend its Association Agreement to Yanukovych at its Sept. 20 meeting that will decide the European Union's course of action at the summit of the Eastern Partnership to be held in two months' time in Lithuania?"

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