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Tuesday, 17 December 2013

Emerging-Market ETF Declines Before Fed as Turkey Tumbles - Bloomberg

Emerging-Market ETF Declines Before Fed as Turkey Tumbles - Bloomberg:

"The iShares MSCI Emerging Markets Index exchange-traded fund fell, snapping a two-day advance, ahead of the Federal Reserve’s policy statement tomorrow. Turkey’s stocks led world losses amid corruption arrests.

The developing-nation ETF slipped 0.5 percent to $41.01 at 1:16 p.m. in New York. The MSCI Emerging Markets Index rose 0.1 percent to 991.27 after a five-day slide. The Borsa Istanbul National 100 Index sank 5.2 percent after the sons of two cabinet ministers and the chief executive officer of Turkey’s largest state-owned bank were arrested as part of a corruption probe. The Czech koruna declined to a four-year low against the euro as the central bank kept its intervention policy.

Investors watched U.S. data for clues on when the Fed will start trimming its stimulus program. Confidence among American homebuilders beat forecasts while the cost of living was unchanged, showing inflation is making scant progress toward the central bank’s goal. About 34 percent of economists surveyed by Bloomberg on Dec. 6 predicted the Fed will start to reduce monthly bond purchases when it concludes the meeting. That compared with 17 percent in a survey from November."

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[picture] Yanukovich and Putin shake on it | beyondbrics #EuroMaidan

[picture] Yanukovich and Putin shake on it | beyondbrics:

"
Russia's President Vladimir Putin (R) and Ukrainian President Viktor Yanukovich shake hands after signing documents during their meeting in the Kremlin in Moscow, on December 17, 2013.
Bonds, gas – but what about the Customs Union?

As the FT reports, Russia has agreed to send cash and cheaper gas to Ukraine. Moscow said it would convert $15bn of reserves in its national welfare fund into Ukrainian securities. It also said it would cut prices for natural gas from more than $400 per thousand cubic metres to $268.50. There was no mention of any agreement to join the CIS Customs Union.

The question is: what does Russia get in return?

At this stage it’s not clear. Timothy Ash of Standard Bank suggested that many observers would be “staggered by the apparent lack of conditionality”. Without any finer detail, it seems an old-fashioned deal of generosity for loyalty."

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MIDEAST STOCKS-Egypt rises to 35-month high on economic stimulus plan | Reuters

MIDEAST STOCKS-Egypt rises to 35-month high on economic stimulus plan | Reuters:

"* Egypt stimulus 25 pct larger than previously thought

* Saudi Hollandi surges on bonus share issue

* Abu Dhabi banks play catch-up to Dubai

* Waha Capital soars on AerCap's plane leasing deal

* Oman outperforms on BP's gas investment plan

By Nadia Saleem

DUBAI, Dec 17 (Reuters) - Egyptian shares rose on Tuesday, lifting the main index to a 35-month high, after the finance minister announced plans for a second economic stimulus package worth around 30 billion Egyptian pounds ($4.4 billion).

The spending, 25 percent more than previously announced and financed partly with aid from the Gulf, is to begin in January. Finance minister Ahmed Galal said 20 billion pounds would be spent on public investment, while the rest would cover a public sector minimum wage.

Cairo's benchmark index rose 1.2 percent to 6,720 points, its highest level since January 2011, before president Hosni Mubarak was ousted."

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Ukraine scores $15 billion from Russia, 33% gas discount — RT Businessn | #EuroMaidan

Ukraine scores $15 billion from Russia, 33% gas discount — RT Business:

"After stringing along Russia, the EU, and the Ukrainian people, President Viktor Yanukovich has inked an agreement worth $15 billion in securities and clinched a 33 percent gas discount, choosing a quick cash solution over a long drawn out IMF bailout.

The Russian government will essentially buy $15 billion in Ukrainian debt by investing in Ukraine's national welfare fund, President Vladimir Putin announced Tuesday at a meeting with Yanukovich in Moscow.

"For the purpose of supporting the Ukrainian budget the Russian government has made a decision to invest part of the national welfare fund in an amount of 15 billion dollars in Ukrainian government securities," Putin said.

Ukraine secured a more favorable Russian gas contract, where they will now pay $268 per 1000 cubic meters of gas instead of $400, which they paid previously."

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Russia, Ukraine Agree to Boost Ties | TIME.com | #EuroMaidan

Russia, Ukraine Agree to Boost Ties | TIME.com:

"Russian and Ukrainian officials have signed a series of agreements to boost trade and industrial cooperation between the ex-Soviet neighbors.

The agreements signed Tuesday include a deal to settle disputes in mutual trade, an agreement to jointly modify a Soviet-designed transport plane, a deal on industrial cooperation and a pact to design a bridge across the Kerch Strait.

Protesters in Ukraine, who have camped on the capital’s main square for nearly a month, have warily watched Tuesday’s talks in Moscow between Ukrainian President Viktor Yanukovych and his Russian counterpart Vladimir Putin, fearing they could reflect the Kremlin’s effort to pull Ukraine closer into the Russian orbit.

The protests were triggered by Yanukovych’s decision to ditch a pact with the European Union in favor of closer ties with Russia."

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Dubai's Al Habtoor eyes hotels in London, Paris - Travel & Hospitality - ArabianBusiness.com

Dubai's Al Habtoor eyes hotels in London, Paris - Travel & Hospitality - ArabianBusiness.com:

"Al Habtoor Group has revealed plans to further expand its hotel portfolio overseas, with the Dubai conglomerate eyeing acquisitions in key European markets London and Paris.
As it gears up to open its latest offering on Christmas Eve, the luxury Waldorf Astoria Dubai on the Palm Jumeirah, vice-chairman and CEO Mohammed Al Habtoor said it was always looking to expand.
Al Habtoor, the son of the Al Habtoor Group founder Khalaf Al Habtoor, said the company now had four hotels in Dubai, two in Lebanon, one in Budapest in Hungary and another three under construction in Dubai.
It had no immediate plans for further hotels in the Middle East, but he confirmed it was looking for further opportunities in Europe."

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Dubai sells stake in landmark Miami hotel to Turnberry | Reuters

Dubai sells stake in landmark Miami hotel to Turnberry | Reuters:

"Istithmar World, a unit of Dubai World DBWLD.UL, has sold its 50 percent stake in Miami Beach's landmark Fontainebleau hotel back to south Florida developer Turnberry, a source close to the seller said on Tuesday.

Dubai World, one of the emirate's big state-owned conglomerates, declined to comment when contacted by Reuters.

Reuters had reported in September that the Fontainebleau deal was close to being completed; the price was not immediately known. Dubai World originally paid $375 million in 2008 for its 50 percent stake in Fontainebleau Miami Beach."

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ENERGY - Azerbaijan opens 'strategic door' to send gas to Europe

ENERGY - Azerbaijan opens 'strategic door' to send gas to Europe:

"
The Shah Deniz II consortium signed off on the final decision
worth about $28 billion (20 billion euros) of investment that
triggers the start of construction of a key new pipeline
route from the Caspian Sea to Europe. AA Photo
The consortium developing a huge Azerbaijani natural gas field signed on Tuesday a final investment clearing the way for the first deliveries to Europe and opening up a key route beyond Russia.

The Shah Deniz II consortium signed off on the final decision worth about $28 billion (20 billion euros) of investment that triggers the start of construction of a key new pipeline route from the Caspian Sea to Europe.

Six billion cubic metres of natural gas will go to Turkey and Georgia from 2018 and the rest will go to Europe from around 2019, according to the consortium which includes Britain's BP and Azerbaijan's SOCAR."

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Qatar's CBQ eyes tie-ups, could sell bonds in 2014 - Banking & Finance - ArabianBusiness.com

Qatar's CBQ eyes tie-ups, could sell bonds in 2014 - Banking & Finance - ArabianBusiness.com:

"Commercial Bank of Qatar is open to tie-ups with local financial institutions and could sell bonds next year to fund infrastructure lending in the Gulf Arab state, its recently appointed chief executive was quoted as saying.
The lender, which earlier this year completed the purchase of a 74.2 percent stake in Turkey's Alternatifbank, is also open to further foreign acquisitions but will wait to see the performance of the Turkish business before deciding on new deals, Abdulla Saleh al-Raisi told the Qatar Tribune.
He did not specify what kind of tie-up with local institutions the bank would seek. Mergers between banks in Qatar, like much of the Gulf Arab region, are extremely rare as majority shareholders - often powerful local families - are reluctant to cede control except for extremely high valuations.
The last merger attempt in Qatar, between Al Khaliji Commercial Bank and International Bank of Qatar, collapsed in June 2011 after more than a year of negotiations as the two parties couldn't agree terms."

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▶ When to buy Brics? - YouTube

▶ When to buy Brics? - YouTube:

"Emerging market equities look cheap. Andrew Pease, global head of investment strategy at Russell Investments, tells John Authers why it might be unwise to buy until after the Federal Reserve has started to taper off its bond purchases


"

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Waha Capital’s part-owned AerCap finalises $5bn deal for AIG aircraft leasing unit | The National

Waha Capital’s part-owned AerCap finalises $5bn deal for AIG aircraft leasing unit | The National:

"AerCap Holdings, the New York-listed company in which the Abu Dhabi investment firm Waha Capital has a 26.3 per cent stake, said it had agreed to buy the insurer American International Group’s aircraft leasing business in a deal valued at more than US$5 billion.

Under the terms of the transaction, which will make AerCap an industry leader with in excess of 1,300 aircraft in its fleet, AIG will receive $3bn in cash in addition to 97.56 million AerCap shares for its wholly-owned subsidiary International Lease Finance Corporation (ILFC), Amsterdam-based Aercap yesterday.

AerCap will also assume $21bn of ILFC’s outstanding debt and will seek new finance to fund the cash part of the sale, according to the statement on the company’s website. The combined company will retain the name AerCap with ILFC becoming a wholly-owned subsidiary."

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Abu Dhabi Securities Exchange to introduce sovereign debt listings | The National

Abu Dhabi Securities Exchange to introduce sovereign debt listings | The National:

"The Abu Dhabi Securities Exchange will soon welcome its first sovereign debt listings as it seeks to encourage more bond trading in the capital.

The market regulator has approved a secondary listing of bonds issued by Abu Dhabi’s Department of Finance (DoF). The two tranches, worth US$1.5 billion each, have their primary listing in London with maturities in 2014 and 2019.

“The listing of Abu Dhabi government bonds on both ADX and LSE will help to create a more attractive investment climate in the Emirate,” Hamad Al Hurr Al Suwaidi, the chairman of the DoF said yesterday."

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GCC advisers to up exposure to developed equity markets | GulfNews.com

GCC advisers to up exposure to developed equity markets | GulfNews.com:

"A majority of GCC financial advisers are looking to increase their exposure to global developed equity markets even as a substantial number are also inclined to put their money into the region’s stocks in the coming 12 months, according to a survey carried out by Insight Discovery, a strategic research company.
The survey’s findings point out that 52 per cent and 48 per cent of the advisers are bullish on the equities of the developed and GCC markets respectively. Global emerging equity markets find favour with 47 per cent of the respondents, which is significantly different from last year’s response.
“The biggest shift is away from global emerging markets, which has slipped from pole position to number three,” Nigel Sillitoe, chief executive of Insight Discovery, said. “Whilst emerging markets remain popular, what this might prove is that some advisers have taken some risk off the table by looking to allocate more of their client assets to developed markets.”
When asked about their investments in Sub-Saharan Africa, 44 per cent answered in the positive, saying they are going to increase their weighting in equities of the region."

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Can Europe Embrace Turkey and Ukraine? - Bloomberg #EuroMaidan

Can Europe Embrace Turkey and Ukraine? - Bloomberg: "The European Union has just signed a deal to introduce visa-free travel for Turks. The agreement is a milestone not least because news of it will also travel -- to Kiev.

Turkey and Ukraine are vastly different, of course. But they both present the EU with huge challenges and opportunities. How the EU responds will affect not only the size and scope of the EU, obviously, but also the legitimacy and power of the European ideal.

First things first: The chances that Turkey will join the EU remain slight, and Ukraine has yet to be offered even the possibility. The EU opened membership negotiations with Turkey in 2005 only to freeze the bulk of the talks soon afterward. Ukraine has been offered only a trade and association agreement with the EU. There is hesitation on the other side of both of these relationships, too: Ukrainians are as deeply split as Turks over their proper place in the world.

That said, it’s important to note that despite the EU’s misguided reluctance to admit Turkey, the integration process itself has been central to the improvement of Turkey’s economy and business practices. By now, Turkey has at least as much to offer the EU as the other way around."

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