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Friday, 4 July 2014

Dubai World in talks to extend term of $10.5bn loan - FT.com

Dubai World in talks to extend term of $10.5bn loan - FT.com:



"Dubai World is in talks with creditors to extend a $10.5bn debt maturity due in 2018, sparking divided reactions among lenders over whether to take such a deal when the emirate’s economy has recovered so strongly.



The government conglomerate was at the heart of Dubai’s debt crisis in 2009, agreeing a restructuring of $25bn of loans in 2010. Last week, it proposed an early repayment on the $4.1bn maturity due in September 2015 if creditors agreed to extend the 2018 maturity to 2022, people aware of the matter say.



Despite the Dubai stock market’s steep correction over the past few weeks, the underlying economy has rebounded on strong trade and tourism flows thanks to the emirate’s haven status."



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Misinterpreted Gas Deal

Misinterpreted Gas Deal:



"Facts about the Chinese-Russian “gas deal of the century” that have come to light recently show just how weak the position of Gazprom really is when it comes to negotiations with Beijing. Before the gas flows through the “Power of Siberia” pipeline, Russia must nervously wait a few years as the struggle for its full implementation will take time. Although the “historic” agreement is arguably unprofitable to the Russian economy, Deputy Chairman of Gazprom, Alexander Medvedev, sees it in a different way. He has said that the deal of the century deserves to be included in the Guinness Book of World Records as the largest gas deal in history. But what does it really look like?
 



The gas delivery pipeline, called the “Power of Siberia”, is expected to launch in 2019. The total cost of the pipeline is expected to be around 55 billion US dollars. The value of the contract with China is equally impressive: $400 billion. According to the agreement, Gazprom will receive from the China National Petroleum Corporation (CNPC) $25 billion as a prepayment for its gas supplies. This will allow the Russian energy giant to set up a significant part of the pipeline. As it is written in the contract, the Chinese-Russian 30-year gas deal will provide China with 38 billion cubic metres a year. However, the energy consultancy Wood Mackenzie, being more realistic, believes that initially it will be possible to transit only five billion cubic metres per year. The final capacity of the 38 billion cubic metres will be available in 2025. The part of the deal that remains unknown is price of the gas. However, it is estimated to reach the European level of $350 per 1000 cubic metres.
 



Although the deal was officially signed, Alexander Medvedev frankly said that its details still need to be confirmed. Among the Russian political elite, there is a dispute whether Gazprom needs state aid in order to build the pipeline or not. The Russian Ministry of Finance, unlike Vladimir Putin, claims that it does not. Instead of public funding, the ministry suggests taking loans from Chinese banks and seeking Asian investors. This is why Gazprom has debuted recently on the Singapore stock exchange. As of today Gazprom, does not receive any state aid for the needs of the Power of Siberia pipeline."



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Fireworks for US equities - YouTube

Fireworks for US equities - YouTube: ""



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Lloyds Said to Drop Sale of $540 Million of Dubai World Debt - Bloomberg

Lloyds Said to Drop Sale of $540 Million of Dubai World Debt - Bloomberg:



"Lloyds Banking Group Plc (LLOY), one of Dubai World’s largest creditors, dropped a plan to sell its loans to the company after offers fell short of the reserve price, according to three people with knowledge of the matter.



The U.K. bank decided to keep $540 million of its loans to the Dubai-based company following an auction today, said the people, who asked not to be identified because they weren’t authorized to speak publicly.



Lloyds, Britain’s biggest mortgage lender, resigned from the committee that represented creditors during Dubai World’s $24.9 billion debt restructuring earlier this year, the people said. Royal Bank of Scotland Group Plc (RBS), the U.K.’s largest government-owned lender, has also left the panel, they added."



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Reason for optimism - YouTube

Reason for optimism - YouTube: ""



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Etihad Airways chief dismisses European airlines’ talk of subsidies | The National

Etihad Airways chief dismisses European airlines’ talk of subsidies | The National:



"Etihad Airways is part of the solution to European airlines’ woes and not part of the problem, Etihad’s chief executive has asserted.



James Hogan, speaking at an EU conference on air transport competitiveness, said: “External investment is not a threat. It is an opportunity to strengthen airlines, and to support employment and economic growth.”



Mr Hogan noted that the European industry had serious problems that predate the birth of Etihad in 2003."



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Dubai builder Arabtec yet to convince analysts with new strategy | The National

Dubai builder Arabtec yet to convince analysts with new strategy | The National:



"Analysts were left nonplussed by Arabtec’s attempts to outline its new strategy despite a sharp rise in the builder’s stock price yesterday.



The Burj Khalifa builder held a press conference on Wednesday to address investor concerns following a catastrophic stock decline in recent weeks.



But that was not enough to restore confidence among analysts contacted by The National yesterday."



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Genel Energy gains from opening of Kurdish region pipeline to Turkey | The National

Genel Energy gains from opening of Kurdish region pipeline to Turkey | The National:



"The opening of new export pipeline to Turkey from Iraq’s Kurdish region has boosted production for Genel Energy.



The oil exporter headed by Tony Hayward, the former BP chief executive, said production averaged 84,000 barrels per day in June compared to 63,000 bpd for the whole of the first half.



The opening of the pipeline in May allowed the autonomous region to by bypass the Iraq network in a move that has been disputed by Baghdad."



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Jet Airways and Alitalia link up through Abu Dhabi | GulfNews.com

Jet Airways and Alitalia link up through Abu Dhabi | GulfNews.com:



"Jet Airways and Alitalia new code-share agreement, which was possibly brokered by Etihad Airways, will look to give the two airlines an edge to tap into traffic flows between India and Italy.



“It’s been a feature of Etihad’s equity alliance that the various members have entered into reciprocal code-share arrangements,” stated Binit Somaia, Director South Asia at CAPA — Centre for Aviation.



Etihad holds a 24 per cent stake in Jet Airways and looks set to take a 49 per cent stake in Alitalia."



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UAE’s economic recovery is solid: IMF | GulfNews.com

UAE’s economic recovery is solid: IMF | GulfNews.com:



"The UAE has continued to benefit from its perceived safe-haven status amid regional instability. The economic recovery has been solid, supported by the tourism and hospitality sectors, and a rebounding real estate sector, the Executive Board of the International Monetary Fund (IMF) said on Thursday in its statement on Article IV consultation with the UAE.



“While growth in oil production moderated, public projects in Abu Dhabi and buoyant growth in Dubai’s service sectors continued to underpin growth, which reached 5.2 per cent in 2013. The real estate sector has been recovering quickly in some segments, especially in the Dubai residential market,” said a statement from the IMF.



The Fund observed that the macroeconomic outlook is positive. Economic growth is expected at 4.8 per cent in 2014 and about 4.5 per cent in coming years, supported by a number of megaprojects announced over the past 18 months and the successful bid for the World Expo 2020."



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Emerging Stocks Rise to 15-Month High on U.S. Jobs Report - Bloomberg

Emerging Stocks Rise to 15-Month High on U.S. Jobs Report - Bloomberg:



"Emerging-market stocks rose for a fourth day after the U.S. jobless rate slid to an almost six-year low, boosting the outlook for global growth. The Brazilian real advanced from a one-week low.



The MSCI Emerging Markets Index added 0.2 percent to 1,062.18 in New York, the highest close since March 2013. Chipmaker Inotera Memories Inc. surged to a record. The Shanghai Composite Index rose to a two-week high and Turkey’s stock benchmark climbed 0.9 percent. The Ibovespa advanced in Brazil as commodity companies gained. The iShares Emerging Markets exchange-traded fund climbed for a third day, rising 0.6 percent.



U.S. employers added more workers than forecast in June and the unemployment rate dropped to 6.1 percent, Labor Department figures showed today. The report adds to global optimism after data on July 1 showed China’s manufacturing expanded in June at the fastest pace this year, while a private gauge signaled gains in India."



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Oil Heads for Second Weekly Drop as Crude Supply Concerns Fade - Bloomberg

Oil Heads for Second Weekly Drop as Crude Supply Concerns Fade - Bloomberg:



"West Texas Intermediate and Brent headed for a second weekly drop amid speculation that Iraq’s crude production will remain unaffected by violence and as Libya prepares to resume exports from two terminals.



WTI futures were little changed in New York after falling for a sixth day yesterday, the longest losing streak since May 2012. Fighting in Iraq hasn’t spread to the south, home to more than three-quarters of its output. Libya will start shipping from Es Sider and Ras Lanuf at full capacity after taking back control from rebels, according to National Oil Corp. Hurricane Arthur is approaching the U.S. East Coast and may reduce driving over the Fourth of July holiday.



“The dying down of geopolitical tensions is clearly depressing oil prices,” Michael McCarthy, a chief strategist at CMC Markets in Sydney, said by phone today. “The market is removing some of the risk premium. West Texas has now fallen below the key support level of $105.25 a barrel, meaning that risks are now on the downside.”"



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