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Saturday, 15 March 2014

Bearish signals trigger in UAE markets |

Bearish signals trigger in UAE markets |

"The sell-off in UAE markets was followed by renewed weakness in global equity markets, strength in gold, and weakness in oil, on the back of concerns over a slowdown in China and the developing Ukraine situation.

Given bearish signals in UAE markets, plus global weakening in stocks, near-term rallies are likely to be hit by renewed selling pressure as investors more aggressively look to take profits and minimize losses, for those who got into the market late. Indications are that last week is the beginning of a correction in the UAE markets that could last weeks or months."

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Dubai's Emaar plans $2.5 billion listing of shopping mall unit | Reuters

Dubai's Emaar plans $2.5 billion listing of shopping mall unit | Reuters:

"(Reuters) - Dubai's Emaar Properties said it would sell up to 25 percent of its shopping mall and retailing unit in a public offer expected to raise 8 to 9 billion dirhams ($2.18-$2.45 billion), making it one of the region's largest equity offers since 2008.

The proceeds "will be primarily distributed as dividend" to Emaar shareholders, Dubai's biggest listed real estate developer said in a statement on Saturday, without giving a timetable for the offer. The shares to be sold will come from the unit's current equity.

Dubai-listed Emaar's flagship mall is the Dubai Mall, one of the largest in the world, which it says attracted more than 75 million visitors in 2013. The company also built the Burj Khalifa in Dubai, the world's tallest building.

The listing plan underlines Dubai's recovery from its financial crisis, which erupted in 2009. Before the crisis, Emaar talked about listing its shopping mall operations but was forced to put the plan on hold as the emirate's real estate and stock markets collapsed."

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Russian reversal - YouTube #EuroMaidan

Russian reversal - YouTube:

"Russian stocks have fallen again, as tensions increase over Ukraine and the west moves closer to imposing sanctions. Lex's Robert Armstrong and Joseph Cotterill discuss what sanctions may mean, and how investors should respond.


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Best places to buy property | The National

Best places to buy property | The National:

"Property investors have beaten a path to London in recent years, drawn by its weak currency, safe haven status and relentless house price growth.

Every time a new crisis strikes, whether it’s the Arab Spring, euro-zone meltdown or emerging market turmoil, nervous investors around the world seek to park some of their wealth in London.

Middle Eastern buyers were responsible for 7.5 per cent of all prime residential real estate sales in London in 2012, according to Knight Frank.

And up to 70 per cent of newly-built homes in prime London locations are now bought by overseas buyers, led by Nigerians, French and Greeks, figures from Chesterton Humberts reveal."

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GCC has work cut out on rating maintenance |

GCC has work cut out on rating maintenance |

"The Gulf Cooperation Council (GCC) countries enjoy satisfying sovereign credit ratings with minor exceptions. In a way, the ratings are supported by the absence of a serious debt problem except in Bahrain’s case.

Notably enough, Abu Dhabi, Qatar and Kuwait share similar credit ratings as assigned by Moody’s and Standard & Poor’s, the two leading names in the field. Moody’s assigns a rating of Aa2 for Abu Dhabi, Qatar and Kuwait, a highly sought sovereign rating and indicating optimum ability at paying off short-term debt. The prime-1 rating comes after those of Aaa and Aa1.

S & P’s grants a similar rating, namely AA to Abu Dhabi, Qatar and Kuwait, suggesting capability in meeting financial obligations. This is the second best rating after AAA within the S & P’s scale. Not surprisingly, only a handful of countries such as Norway have the best rating."

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Ukraine 2014 Bonds Erase Weekly Slump as Lavrov Says No Invasion - Bloomberg

Ukraine 2014 Bonds Erase Weekly Slump as Lavrov Says No Invasion - Bloomberg:

"Ukrainian Eurobonds maturing in June rebounded, erasing weekly losses, after Russia sought to damp concern it will invade other parts of Ukraine after Crimea.

The sovereign notes gained to 92.14 cents on the dollar from 91.58 yesterday, cutting the yield 258 basis points to 48.37 percent by 6:28 p.m. in Kiev, according to data compiled by Bloomberg. The hryvnia pared its weekly loss to 4.8 percent, remaining the worst performer in the period after Gana’s cedi among all currencies tracked by Bloomberg.

While Russia is “outraged” by a deadly clash in eastern Ukraine yesterday, it has no plans to invade the region, Russian Foreign Minister Sergei Lavrov said today after meeting U.S. counterpart John Kerry. The U.S. and European Union have threatened sanctions if President Vladimir Putin doesn’t back down from annexing Ukraine’s southern province of Crimea, which is preparing for a March 16 referendum on joining Russia."

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Emerging Stocks Decline as Ibovespa Enters Bear Market - Bloomberg

Emerging Stocks Decline as Ibovespa Enters Bear Market - Bloomberg:

"Emerging-market stocks declined, capping the biggest weekly slide since November, amid concern tension between Russia and Ukraine will escalate. Brazil’s Ibovespa (IBOV) slumped into a bear market as homebuilders retreated.

The MSCI Emerging Markets Index dropped 0.6 percent to 937.73. Russia’s Micex Index posted the worst week since May 2012, while the Ibovespa extended a plunge from its October peak to 20 percent. China Citic Bank Corp. retreated before the shares were suspended in Hong Kong and Shanghai on concern China is tightening restrictions on online financial products. Indonesia’s benchmark stock index entered a bull market.

U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov failed to defuse the standoff over Ukraine in six hours of talks in London, as the Crimea peninsula prepared to vote on joining Russia. The U.S. and the European Union are threatening sanctions against Russia if it doesn’t back down from annexing the Ukrainian region."

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Putin’s Crimea Playbook Condemns Bonds to Losses: Russia Credit - Bloomberg

Putin’s Crimea Playbook Condemns Bonds to Losses: Russia Credit - Bloomberg:

"Russian government bonds, among the casualties of President Vladimir Putin’s maneuvering in Ukraine, are set to extend declines that have made them the world’s worst performers.

Ruble-denominated bonds, known as OFZs, have lost 14 percent in dollar-terms this year, the most among 31 countries in the Bloomberg Emerging Market Local Sovereign Index. The yield on the benchmark February 2027 security climbed 16 basis points today to a record 9.57 percent, extending its increase this month to 121 basis points as pro-Russian forces gained control of Ukraine’s Crimean peninsula.

Worse is in store for the debt, as Putin risks relations with the West by threatening to annex Crimea from Ukraine, according to Aberdeen Asset Management Plc and GAM U.K. Ltd. As the U.S. and the European Union weigh sanctions, Goldman Sachs Group Inc. cut its forecast for Russian economic growth this year to 1 percent from 3 percent, writing in a report yesterday that “political tensions” are harming confidence."

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