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Wednesday, 11 June 2014

Ukraine Rejects Gas Offer as Talks End Without Deal - Bloomberg

Ukraine Rejects Gas Offer as Talks End Without Deal - Bloomberg:



"Ukraine rejected a Russian proposal for the price of future natural-gas deliveries as European Union-brokered talks in Brussels ended without an agreement.



Russia offered to supply gas for about 20 percent below the current price, a level Ukraine said was still more than it’s willing to pay, EU Energy Commissioner Guenther Oettinger said at a press conference after the three-way meeting. Russia’s energy minister said the country also wants $1.95 billion for past fuel supplies before June 16 or it may cut shipments.



“In the next 48 hours we’ll try to make progress, not waste time,” Oettinger said. “Monday is quite a way off so there’s still a good opportunity.”"



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MIDEAST STOCKS-Dubai slides again as major Arabtec shareholder cuts stake | Agricultural Commodities | Reuters

MIDEAST STOCKS-Dubai slides again as major Arabtec shareholder cuts stake | Agricultural Commodities | Reuters:



"Dubai's market declined for a fourth straight day on Wednesday as Arabtec tumbled and the bourse said a major shareholder had reduced its stake in the construction firm.



The slide underlined how the Dubai bourse has become dominated by a few heavyweight stocks which have been swinging widely in response to frenzied trade by retail investors. The main index fell 0.6 percent.



Shares in Arabtec dropped 7.8 percent, dominating turnover. Dubai Financial Market said in a statement after trading closed that Abu Dhabi state fund Aabar Investments had cut its stake Arabtec to 18.85 percent as of Wednesday from 21.57 percent on June 8.



Some investors apparently got wind of the sales early this week, sparking a sell-off. The stock has plunged 30 percent in the last four sessions; a total of 455 million shares changed hands this week, while Aabar's holdings decreased by only about 120 million shares."



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Etisalat Raises $4.3 Billion in Bond Debut for Maroc Telecom - Bloomberg

Etisalat Raises $4.3 Billion in Bond Debut for Maroc Telecom - Bloomberg:



"Emirates Telecommunications Corp. (ETISALAT) is raising $4.3 billion in its first-ever bond sale as the United Arab Emirates phone company seeks funds for its acquisition of Maroc Telecom.



The offering includes 1.2 billion euros ($1.62 billion) each of seven-year and 12-year securities, according to two people with knowledge of the sale, who asked not to be identified because the information is private. That’s the biggest ever sale of bonds from a Gulf Cooperation Council borrower denominated in the European single currency, according to data compiled by Bloomberg.



Proceeds from the phone operator’s debut bond sale will go toward refinancing a 2.1 billion-euro bridge loan taken to buy the 53 percent stake in Maroc Telecom in November, Chief Financial Officer Serkan Okandan said in April. The seven-year debt priced to yield 80 basis points over the benchmark midswap rate, and the spread on the 12-year bonds was 110 basis points over the benchmark, according to the people."



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Iraq Bonds Slump on Mosul Seizure as Stocks Drop Most Since 2012 - Bloomberg

Iraq Bonds Slump on Mosul Seizure as Stocks Drop Most Since 2012 - Bloomberg:



"Iraqi bonds plunged and stocks fell the most in two years after fighters from a breakaway al-Qaeda group took control of Mosul in a move highlighting Prime Minister Nouri al-Maliki’s weakening grip on the country.



The yield on the nation’s $2.7 billion of bonds due in January 2028 climbed 49 basis points to 6.99 percent at 2:09 p.m. in London, the biggest jump in a year on a closing basis, according to data compiled by Bloomberg. The ISX General Index lost 4.6 percent in Baghdad, the most since June 3, 2012. 




Mosul, Iraq’s second-biggest city, is entirely in the hands of the Islamic State in Iraq and the Levant, or ISIL, with no army or police presence remaining, Noureddin Qablan, the vice chairman of Nineveh provincial council, said by phone late yesterday. Tribal gunmen allied to al-Qaeda were close to capturing Baiji, north of Baghdad and home to Iraq’s biggest petroleum refinery, Al-Jazeera television reported today."



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Putin proposes to freeze gas discount for #Ukraine for some time | Russia Beyond The Headlines

Putin proposes to freeze gas discount for Ukraine for some time | Russia Beyond The Headlines:



"The gas conditions Russia proposed to Ukraine are same as they were under the Viktor Yanukovych government and the Russian government should develop measures, which will freeze the proposed discount for some time, Russian President Vladimir Putin said.



"I would ask the government and prime minister to think about how these conditions could be stipulated at the government level or upon an agreement with the Ukrainian government and make them absolutely reliable and unchanging for some time," Putin said at a meeting with government members.



The conditions proposed by Russia's Gazprom to Kiev are "absolutely the same conditions, which the government of Viktor Fyodorovych Yanukovych had," Putin said."



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Russian Stocks Pause After Rise to 16-Week High as Gazprom Drops - Bloomberg

Russian Stocks Pause After Rise to 16-Week High as Gazprom Drops - Bloomberg:



"The Micex Index (INDEXCF) was little changed at an almost four-month high after trading in Moscow was halted for more than an hour.



Russia’s main equities gauge was down less than 1 percent at 1,490.57 by 1.50 p.m. in Moscow. It had gained 1.4 percent in the three previous sessions to the highest since Feb. 18. Twenty-four stocks rose, with 25 retreating. OAO Gazprom declined 0.2 percent.



The Micex entered a bull market on June 6 after climbing 20 percent from a low on March 14, spurred by optimism that the crisis in Ukraine was easing, as valuations of Russian companies remained cheap. State-controlled gas company Gazprom agreed to extend until June 16 the deadline before Ukraine will be switched to prepayments for natural gas supplies as negotiations continue to reach a European Union-brokered deal."



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OPEC Leaves Output Target Unchanged at 30 Million Barrels a Day - Bloomberg

OPEC Leaves Output Target Unchanged at 30 Million Barrels a Day - Bloomberg:



"OPEC, which supplies about 40 percent of the world’s crude, kept its production target unchanged at 30 million barrels a day, a decision that was widely anticipated.



The Organization of Petroleum Exporting Countries reaffirmed the ceiling for a fifth consecutive meeting, Diezani Alison-Madueke, Nigeria’s Petroleum Minister said after the event. The group forecasts demand for its crude of 30.4 million barrels a day in the coming six months, while its 12 members produced 29.6 million barrels a day in April, the organization’s data show.



OPEC nations representing 94 percent of the group’s output said before the meeting that they were at ease with supply and demand in global oil markets. While the formal limit remains unchanged, the burden will fall to Saudi Arabia to increase output to meet higher demand in the second half as political turmoil constrains Libyan output and sanctions curb Iranian exports, according to Barclays Plc, Societe Generale SA and Energy Aspects Ltd."



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Emaar Malls Raising $750 Million From Debut Islamic Bonds - Bloomberg

Emaar Malls Raising $750 Million From Debut Islamic Bonds - Bloomberg:



"Emaar Malls Group LLC, the Dubai-based owner of the one of the world’s biggest shopping centers, is raising $750 million from a debut sale of Islamic bonds, according to two people familiar with the matter.



The 10-year notes will be priced to yield 182.5 basis points, or 1.825 percentage points, above the benchmark midswap rate, the people said, asking not to be identified because the information isn’t public. The price was cut from an original guidance of about 200 basis points above midswaps after bids of more than $5 billion were received, according to the people.



“Everyone is loving Emaar’s paper,” Ahmed Shehada, head of advisory at National Bank of Abu Dhabi Securities LLC, said by phone. “It’s attractively priced, the market is positive and that gave them the mandate to be more aggressive with pricing.”"



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Emirates cancels order for 70 Airbus planes - Your Middle East

Emirates cancels order for 70 Airbus planes - Your Middle East:



"Emirates airline announced it had cancelled an order for 70 long-haul A350 planes from European manufacturer Airbus.



The decision was taken following "on-going discussions with the airline in light of their fleet requirement review", Airbus said on Wednesday.



Airbus added that it was still very confident in the A350 programme and said there were almost 750 planes on the order book ready to enter service."



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UAE banks chairman AbdulAziz Al Ghurair a steady guiding hand | The National

UAE banks chairman AbdulAziz Al Ghurair a steady guiding hand | The National:



"Forget the research analysts, management consultants and international financial studies; if you want an accurate and up-to-date “tour d’horizon” of the UAE banking industry, spend an hour in the company of AbdulAziz Al Ghurair.



He has been at the heart of the country’s financial industry for decades. He helped found one of its leading banks, Mashreq, in 1967, and remains its hands-on chief executive; he is also chairman of the UAE Banks Federation, the trade association that speaks on behalf of the industry, to governments and other federal bodies like the UAE Central Bank.



Via his family business, he is well plugged in to the broader economic sectors of real estate, construction and retail, and has played a significant role in public political life as speaker of the Federal National Council until 2011."



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UAE residents warned credit bureau will lead to years of financial difficulty for some customers | The National

UAE residents warned credit bureau will lead to years of financial difficulty for some customers | The National:



"One of the UAE’s top bankers has warned that some customers face years of financial difficulty, with the possibility of a significant increase in the level of personal defaults, as a result of the new credit checking structure to be introduced later this year.



AbdulAziz Al Ghurair, chairman of the UAE Banks’ Federation and chief executive of Mashreq, told The National that up to 7 per cent of customers could default on their financial obligations once the Al Etihad Credit Bureau, the UAE’s new assessor of individual and corporate credit-worthiness, is in place.



The new body aims to coordinate data on loans, credit cards and other lending by the country’s 52 banks, in a bid to cut down on excessive borrowing."



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UAE money supply and credit growth accelerates in April | GulfNews.com

UAE money supply and credit growth accelerates in April | GulfNews.com:



"Money supply and credit expanded in the UAE in April according to the latest report by the Central Bank on country’s monetary aggregates.



The narrow money supply aggregate (M1) which includes currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks increased by 3.5 per cent from Dh412 billion at the end of March 2014 to Dh426.3 billion by the end of April 2014.



Key monetary indicators showed that the overall domestic liquidity continued to improve with broad money supply (M2) accelerating once again in April on an annual basis to reach 23.6 per cent year on year from 22.8 per cent; a new post-2008 high."



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Etisalat plans to sell four-tranche bond as early as Wednesday | GulfNews.com

Etisalat plans to sell four-tranche bond as early as Wednesday | GulfNews.com:



"Abu Dhabi-based telecoms operator Etisalat is planning to sell a four-tranche debut bond issue denominated in both dollars and euros as early as Wednesday, a document distributed by lead arrangers said.



Meetings with fixed income investors were scheduled to conclude in London yesterday, with a transaction slated for today, the document said.



It also reiterated that Etisalat plans to divide the bond issue into four portions — two dollar tranches of five- and 10-year lifespan, plus two euro-denominated tranches of seven and 12 years’ duration."



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Saudi Telecom issues debut $533m Sukuk | GulfNews.com

Saudi Telecom issues debut $533m Sukuk | GulfNews.com:



"Saudi Telecom Company has issued a debut Islamic bond worth 2 billion Saudi riyals ($533.3 million) after receiving good demand, the majority government-owned telco said on Tuesday.



Several regional companies are rushing to tap the debt market ahead of an expected slowdown in regional investor activity deeper in the summer months and during Ramadan in July.



The 10-year Islamic bond, or sukuk, carries a floating profit rate of 70 basis points over three-month SIBOR and was offered under its newly established 5 billion Saudi riyals private placement sukuk program, STC said in a statement posted on the Saudi bourse website."



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Big risks still stalk EM markets, says World Bank – beyondbrics - Blogs - FT.com

Big risks still stalk EM markets, says World Bank – beyondbrics - Blogs - FT.com:



"Several big risks – including China’s cooling property market, instability in Ukraine and the prospect of tighter global financial conditions over time – still stalk emerging markets (EM) in spite of a reduction in overall risk levels compared to last year, the World Bank said in a report on Tuesday.



In the 154-page report, Global Economic Prospects, the World Bank trims its global GDP forecast for this year to 2.8 per cent year-on-year, down from 3.2 per cent previously. But, it adds; “Despite the early weakness, growth is expected to pick up speed as the year progresses and world GDP is projected to expand by 3.4 per cent in 2015 and 3.5 percent in 2016.”



The lion’s share of this optimism, however, is directed at developed countries. Developing countries, by contrast, are on course for flat growth in 2014 and a third straight year of sub-5 per cent growth which “reflects a more challenging post-crisis global economic environment”.

"



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Valuing small caps - YouTube

Valuing small caps - YouTube: ""



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Ukraine Crisis Chokes East Europe Growth, World Bank Says - Bloomberg

Ukraine Crisis Chokes East Europe Growth, World Bank Says - Bloomberg:



"Economic growth in eastern Europe will slow “sharply” this year because of dwindling demand from Russia, which may face wider sanctions from the U.S. and the European Union if it fails to help end violence in Ukraine.



Expansion will slow to 1.7 percent this year in the post-communist east from 2.2 percent last year, the Washington-based lender said on its website. The forecast includes the Czech Republic, Poland and Russia, which are considered high income by the World Bank.



The threat of additional retaliatory measures against Russia for President Vladimir Putin’s actions in neighboring Ukraine is endangering the region’s recovery from the impact of the euro area’s recession and debt crisis. U.S. President Barack Obama said last week Putin has weeks to stop supporting pro-Russian insurgents in Ukraine or face stiffer penalties."



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World Bank Cuts Global Growth Forecast After ‘Bumpy’ 2014 Start - Bloomberg

World Bank Cuts Global Growth Forecast After ‘Bumpy’ 2014 Start - Bloomberg:



"The World Bank cut its global growth forecast amid weaker outlooks for the U.S., Russia and China, while calling on emerging markets to strengthen their economies before the Federal Reserve raises interest rates.



The Washington-based lender predicts the world economy will expand 2.8 percent this year, compared with a January projection of 3.2 percent. The U.S. forecast was reduced to 2.1 percent from 2.8 percent while outlooks for Brazil, Russia, India and China were also lowered. The setbacks may be temporary: the 2015 estimate for world economic growth was unchanged at 3.4 percent.



“The global economy got off to a bumpy start this year buffeted by poor weather in the United States, financial market turbulence and the conflict in” Ukraine, the World Bank said in its Global Economic Prospects report yesterday. “Despite the early weakness, growth is expected to pick up speed as the year progresses.”"



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Russia-Ukraine Gas Talks Resume as Putin and Merkel Speak - Bloomberg

Russia-Ukraine Gas Talks Resume as Putin and Merkel Speak - Bloomberg:



"Russia and Ukraine will resume talks on a gas-supply deal with the European Union in Brussels today after Russian President Vladimir Putin and German Chancellor Angela Merkel discussed the matter by phone.



Negotiations between Russian Energy Minister Alexander Novak and his Ukrainian counterpart, Yuri Prodan, along with EU Energy Commissioner Guenther Oettinger, will restart at 9:30 a.m. local time and will follow bilateral meetings, the European Commission said in a statement yesterday. The talks were postponed from yesterday evening because of the late arrival time for the Russian delegation to Brussels, the EU said.



The EU, dependent on Russian gas piped through Ukraine for about 15 percent of its supplies, is trying to broker a deal to maintain shipments amid a dispute over payments for the fuel and territorial claims. In Ukraine, clashes between rebels claiming allegiance to Russia and government forces continued in the east of the country."



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Qatar Central Bank Adds 7 Year T-Bond to Extend Yield Curve - Bloomberg

Qatar Central Bank Adds 7 Year T-Bond to Extend Yield Curve - Bloomberg:



"Qatar’s central bank has begun selling seven-year debt to extend the yield curve it’s developing for local companies to issue debt, the governor said.



“We try to create our yield curve and extend it to longer period of time,” central bank Governor Abdullah Saud Al Thani said in a phone interview. The bank is aiming to create a “risk-free interest rate” as a benchmark for local companies to issue their own bonds, he said.



The central bank announced plans yesterday to sell 950 million riyals ($261 million) of seven-year conventional treasury bonds on June 15 for the first time, as well as 2.1 billion riyals of three-year bonds and 950 million riyals of five-year bonds."



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First Gulf Bank Files to Sell Debt on Tokyo Pro-Bond Market - Bloomberg

First Gulf Bank Files to Sell Debt on Tokyo Pro-Bond Market - Bloomberg: "*



First Gulf Bank PJSC (FGB), the United Arab Emirates’ third-largest lender by assets, registered to sell as much as $1 billion of securities on the Tokyo Pro-Bond Market as it seeks funds to expand.



The program takes effect June 11 and will be valid for a year, according to a statement on the Tokyo Stock Exchange’s website. First Gulf Bank, owned by Abu Dhabi’s ruling family, also raised 4.7 billion yen ($46 million) in September from the sale of three-year notes that pay a coupon of 1 percent.



U.A.E. banks are raising money in different currencies to hedge against a possible tightening of the dollar funding market, as occurred during the global credit crisis. First Gulf Bank’s Singapore unit in April set up a $1 billion certificates of deposit program to raise short-term funds, while in March it raised A$250 million ($234 million) from its first sale of Kangaroo bonds."



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