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Monday, 10 March 2014

Times of Oman | News :: Qatar sukuk poised to recover from November's drop

Times of Oman | News :: Qatar sukuk poised to recover from November's drop:

"Qatari Islamic bonds are poised to rebound from their steepest weekly drop since November as investors bet issuers' credit strength will resist the country's spat with its neighbours.

"We're still bullish, so any dip in the equity or debt space is an opportunity to buy," Ahmed Shehada, head of trading at Qatar National Bank Financial Services, said by phone from Doha. "The Gulf Cooperation Council (GCC) is nowhere near breaking up. These things rectify themselves."

The yield on Qatari government sukuk due in January 2023 jumped six basis points last week to 3.27 per cent after the United Arab Emirates, Saudi Arabia and Bahrain withdrew their ambassadors, according to data. That compares to a one basis-point increase to 4.85 per cent for Middle East sukuk, according to JPMorgan Chase indices."

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Ukraine’s Finance Minister say it cannot cover all debt repayments | #EuroMaidan

Ukraine’s Finance Minister say it cannot cover all debt repayments:

"Ukraine’s Finance Minister Oleksander Shlapak said that the country’s foreign currency reserves are not enough to cover all debt repayments due in 2014. Ukraine is called to repay about $10 billion in state debt by the end of the year. 

Indeed, while Reuters reports that ‘Germany’s dependence on Russian gas may effectively decrease Europe’s sovereignty,’ Ukraine continues its struggle.

According to a note released by the Kremlin, Russia’s Vladimir Putin had telephone conversations with UK’s Minister David Cameron and Federal Chancellor of Germany Angela Merkel.

‘Although the three leaders did express differences of opinion regarding the events taking place, they declared their common interest in de-escalating tension and returning the situation to normal as soon as possible,’ reads the note."

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Kuwait Petroleum eyes stake in IOC's Paradip refinery | Business Standard

Kuwait Petroleum eyes stake in IOC's Paradip refinery | Business Standard:

"Kuwait Petroleum Corp (KPC) is in talks with Indian Oil Corp (IOC) for taking a stake in the state-owned firm's Rs 29,777-crore Paradip refinery and a proposed petrochemical complex. "They (KPC) have evinced interest (in taking stake). Talks are on," a senior IOC official said here.

IOC, which will start commissioning the 15 million tons a year refinery at Paradip in Odisha in June, is willing to offer no more than 26 per cent stake in the project.

"We are discussing details of their participation, whether they are interested in taking a stake in the refinery or in the petrochemical project or both is what we are discussing now," he said.

IOC wants to closely examine conditions that Kuwait may attach for equity participation. "If the equity participation will be subject to the refinery buying all or most of its crude oil requirement from Kuwait then that will be a big no-no from us as we don't want to tie ourself down to just one supplier," he said."

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There's value in emerging markets - YouTube

There's value in emerging markets - YouTube:

"In the second of a two-part series, London Business School's Elroy Dimson tells John Authers that value investing works better in emerging markets than in the developed world -- but the premiums for small companies and for momentum are much smaller.


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Guest post: Mr Putin’s clever bond issue | FT Alphaville #EuroMaidan

Guest post: Mr Putin’s clever bond issue | FT Alphaville:

"What to do when your creditor invades? Beyond its occupation of Crimea, Russia remains a lender to Ukraine — even as IMF teams ponder the Kiev government’s financial sustainability. Mitu Gulati, a law professor at Duke University, considers both sovereigns’ options.


In December 2013, Russia lent Ukraine $3bn as the first part of a $15bn assistance package. At the time, few paid attention to either the form that the lending took (a Eurobond) or to a small contractual innovation in the bond issue. Things have changed.

The Yanukovich government is gone, Crimea is trying to secede with the help of the Russians, and Ukraine is on the brink of defaulting on its debt payments unless a substantial EU bailout package is forthcoming. It is in this context that the new contract term and the form of the Russian lending might be important."

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MIDEAST STOCKS-Egypt gains marginally after $40 bln housing deal; Gulf mixed | Reuters

MIDEAST STOCKS-Egypt gains marginally after $40 bln housing deal; Gulf mixed | Reuters:

"* Huge housing deal lifts Egypt, Arabtec

* But execution is a concern

* Saudi developer Dar Al Arkan drops on no-dividend plan

By Nadia Saleem

DUBAI, March 10 (Reuters) - Egypt's shares rose slightly on Monday after a deal between the country's army and a Dubai builder for an affordable housing project worth 280 billion Egyptian pounds ($40.2 billion).

Cairo's benchmark index advanced 0.5 percent, recovering early-session losses and boosting 2014 gains to 17.6 percent.

Under a deal with Cairo's army-backed government, Dubai's Arabtec will build one million homes in a project that will cover 160 million square meters across 13 sites in Egypt for lower income individuals. 

"People are a bit skeptical on the project," said Mohamed Radwan, director of international sales at Pharos Securities.

Some analysts said executing the colossal project could be a challenge."

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New CEO of Kuwait's NBK backs bank's regional strategy | Reuters

New CEO of Kuwait's NBK backs bank's regional strategy | Reuters:

"The new chief executive of National Bank of Kuwait has endorsed its strategies of regional expansion and developing an Islamic finance business in his first public comments since he took over at the country's biggest bank.

Isam al-Sager took over as CEO on Sunday from Ibrahim Dabdoub, who ran NBK for three decades and helped transform it from a local lender into the Gulf's fifth largest bank by assets.

"Our regional and international strategy remains on track," Sager said in a statement after a general assembly meeting at the bank.

"We are focusing our efforts on (Gulf Cooperation Council) countries to leverage NBK's strong franchise there and to benefit from the strong economic outlook and the growth opportunities available.""

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What a Repeat of 2009 Would Look Like | PRAGMATIC CAPITALISM

What a Repeat of 2009 Would Look Like | PRAGMATIC CAPITALISM:

"Nothing too exciting here, but I thought this chart from MarketWatch was pretty a pretty interesting perspective of some historical bull/bear markets.  It shows how some historical precedents might play out:


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FACTBOX-North America natural gas export plans | Reuters #EuroMaidan

FACTBOX-North America natural gas export plans | Reuters:

"March 7 (Reuters) - Tensions in Ukraine have spurred U.S.
officials to press the government to speed up exports of
abundant U.S. natural gas to Europe as Russia moves to take
control of part of the embattled nation.

Europe gets roughly a quarter of its gas supply from Russia,
about half of which is piped through Ukraine, heightening fears
that it could cut pipeline shipments of the fuel to the European
Union at will.

The EU is reluctant to impose economic sanctions against
Russia as it moves to take control of the Crimean Peninsula,
straining relations with the West.

A U.S. Senator on Thursday introduced a bill to push the
Obama administration to speed up liquefied natural gas (LNG)
export approvals.

Last month, the U.S. Department of Energy (DOE) approved LNG
exports from Sempra Energy's Cameron terminal in
Louisiana, the sixth of its kind since 2011."

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IMF: Negative media attention could make Qatar a tough sell for expats - Doha News

IMF: Negative media attention could make Qatar a tough sell for expats - Doha News:

"The Qatar government’s efforts to diversify the country’s already booming economy is causing headaches for businesses grappling with rising costs, the International Monetary Fund has said. 

Additionally, the IMF said a slew of negative news stories about the living and working conditions of low-income laborers in this country may make some high-skilled expats think twice before moving to Qatar, especially as neighboring Dubai embarks on a building boom of its own ahead of the 2020 World Expo. 

That would affect the availability and cost of foreign labor, an essential component in this country’s recent economic growth.

In a recent report that paints an otherwise positive economic outlook for Qatar, the IMF said massive public initiatives – including the infrastructure building boom ahead of the 2022 World Cup – to wean the country’s economic dependence off of non-renewable oil and gas resources may be unsustainable."

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Iran re-entry to oil markets puts pressure on Gulf countries | The National

Iran re-entry to oil markets puts pressure on Gulf countries | The National:

"An oil price drop triggered by a possible return of Iran to international energy markets would heap pressure on the finances of the GCC, according to a new report.

The rapid expansion of US shale production was likely to also loosen energy supplies, putting a further drag on prices, said the first-quarter briefing on economic insight to the Middle East for the ICAEW, the accounting body.

“A fall in oil prices would push many GCC countries perilously close to their break-even prices,” said the report, which was produced by the Centre for Economics and Business Research. “As countries including Bahrain, Kuwait and Saudi Arabia have boosted social spending after the Arab Spring, they have raised the amount they need to earn from oil revenues to fund this spending.”"

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National Bank of Abu Dhabi to Boost Latin America Lending - Bloomberg

National Bank of Abu Dhabi to Boost Latin America Lending - Bloomberg:

"National Bank of Abu Dhabi PJSC, the emirate’s biggest lender, plans to expand corporate loans in Latin America by about 20 percent this year.

NBAD will boost lending and offer other types of products to Latin American companies that do business in countries the bank considers a priority, including those in the Far East, Middle East and Africa, Angela Martins, the bank’s chief representative in Brazil, said in an interview in Sao Paulo.

Loans linked to Latin America should rise to more than $720 million by the end of this year, Martins said last week. NBAD’s businesses include hedging, providing exchange-rate transactions for currencies with low trading volume and distributing Latin American loans and bonds in the Middle East, with a focus on Brazil, Chile and Peru.

“Since we did many deals with banks in 2013, this year we plan to focus more on companies,” Martins said."

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Tanker Lifting Libya Rebel Crude Sends Warning Shot to Tripoli - Bloomberg

Tanker Lifting Libya Rebel Crude Sends Warning Shot to Tripoli - Bloomberg:

"Libya’s government vowed to prevent a tanker from leaving a rebel-held oil port as it struggles to reassert control over the nation’s main source of revenue. 

The vessel arrived in Es Sider, the nation’s largest oil-export terminal, after Libyan armed forces refused government orders to fire on the ship, Prime Minister Ali Zaidan said March 8 in Tripoli, the capital. Air force officers told Zaidan they didn’t want to risk harming civilians or causing an oil spill, the Libya Herald newspaper reported. Navy vessels have moved to stop the tanker from leaving, Culture Minister Habib Lamin said yesterday at a news conference broadcast on local television.

“The government should now actively seek a solution” with rebels in the self-proclaimed eastern region of Barqa, Asma Sraibah, a member of parliament, said yesterday in a telephone interview in the capital city. “It would be a disaster if the government loses its main source of revenue.”"

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