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Tuesday, 5 August 2014

Guest post: #Russia’s response to western sanctions – beyondbrics - FT.com | #Ukraine

Guest post: Russia’s response to western sanctions – beyondbrics - Blogs - FT.com:



"The “stage three” sanctions announced by the US and the European Union against Russia last week are designed to bring about change in President Vladimir Putin’s behaviour by targeting Russia where it is most vulnerable – its economy. 




Earlier rounds of sanctions – which primarily targeted government officials and businesses owned by those officials – were not taken seriously by their targets. Being sanctioned was seen a “badge of honour” by senior Russians.



The sanctions achieved little directly but had an impact on the market in so far as Russian companies found it increasingly difficult and expensive to gain access to Western capital. This intensified longer-term trends in the Russian economy, not least increasing capital outflow ($74.3bn in the first half of 2014, compared with $62.7bn for the whole of 2013) and declining domestic investment. GDP growth fell to 0.9 per cent in the first quarter of 2014 compared with 1.6 per cent in the same period last year."



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tks @AgronomyUkraine: Grain exports continue

Agronomy-Ukraine: Grain exports continue:



"In the first month of the new marketing year Russia exported 2.8mmt of grains. 




That’s an increase of 17.5% compared with the same period last year.



Presumably it’s a case of sell while you still can although long term I can’t see sanctions having any meaningful impact on grain exports from Russia, people have got to eat."



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Mubadala to Get 11% Stake of Batista’s Mining Unit - Bloomberg

Mubadala to Get 11% Stake of Batista’s Mining Unit - Bloomberg:



"Mubadala Development Co., the Abu Dhabi government-owned investor, will get a 10.52 percent stake in Eike Batista’s mining company as part of the restructure of a $2 billion investment with the former Brazilian billionaire.



Batista will transfer 17.1 million shares of MMX Mineracao & Metalicos SA (MMXM3), worth 24.4 million reais ($10.8 million), to Mubadala in the third quarter, the Rio de Janeiro-based company said late yesterday. The deal is subject to undisclosed conditions, MMX said, without elaborating.



The stake will make Mubadala the third-largest shareholder in the iron ore company, based on holdings data compiled by Bloomberg. Mubadala invested $2 billion with Batista’s EBX Group Co. in 2012, when it valued the former boat-racing champion’s empire of logistics and commodities companies at more than $35 billion."



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Emaar Quarterly Profit Misses Estimates as Revenue Falls - Bloomberg

Emaar Quarterly Profit Misses Estimates as Revenue Falls - Bloomberg:



"Emaar Properties PJSC (EMAAR), Dubai’s biggest developer by market value, reported second-quarter profit that missed estimates as year-on-year revenue fell for the first time in seven quarters.



Net income rose 29 percent to 868 million dirhams ($236 million), or 13 fils a share, from 675 million dirhams, or 11 fils, a year earlier, the Dubai-based company said in a statement today. Analysts predicted earnings of 932 million dirhams, the average of five estimates compiled by Bloomberg.



Emaar is focusing on businesses that generate recurring revenue, such as hotels and malls, as it tries to cushion itself from any future shocks in the emirate’s property market. The developer, which plans to spin off its malls unit into a separate company, didn’t give a time line for the initial public offering after missing an original deadline in June."



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Dubai Investments Bullish on Being Promoted Out of Junk - Bloomberg

Dubai Investments Bullish on Being Promoted Out of Junk - Bloomberg:



"Dubai Investments PJSC (DIC), whose profit jumped 240 percent in the second quarter after it sold assets, says it may be on the cusp of its first ever investment-grade rating as it bolsters cash holdings.



The company expects the credit rating to be increased by year-end to at least BBB, two steps above junk, according to Chief Executive Officer Khalid bin Kalban. Its Dubai Investments Park Development Co. LLC unit, which raised $300 million from an Islamic bond in February, holds a BB+ grade at Standard & Poor’s. Dubai Investments sold a 66 percent stake in Globalpharma Co. LLC, which was valued at 385 million dirhams ($105 million), to Sanofi in June.



“We’re flush with liquidity thanks to the sukuk and the Sanofi (SAN) deal,” bin Kalban said by telephone from Dubai yesterday. “By year-end we are looking at an improvement to our rating.”"



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Iran: one year under Rouhani | Middle East Eye

Iran: one year under Rouhani | Middle East Eye:



"When Hassan Rouhani was declared Iran’s president last year, large crowds gathered in the streets of Tehran to celebrate his surprise victory. But while hope for a better life persists, Iranians continue to face harsh realities.



“I think Rouhani has done a very good job,” Hassan Niroomand, the 62-year-old director of a steel company in Tehran, told IPS.





“He does not have all the power, but he has taken advantage of what he can control and I am hopeful,” said Niroomand, citing Rouhani’s handling of the nuclear negotiations, his universal health insurance initiative, and his leadership style."



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‘BRIC brings more capital into UAE’ | Economy | Saudi Gazette

‘BRIC brings more capital into UAE’ | Economy | Saudi Gazette:



"A leading investment firm operating in the Middle East said that there has been a significant increase in capital inflows into the UAE from emerging markets, particularly the BRIC countries (Brazil, China, India and Russia), overtaking the Mena (Middle East and North Africa) region.



Hamed Mokhtar, Managing Director at Fortress Investments, said “the UAE is becoming more important on a global scale, in addition to emerging as an unparalleled investment hotspot. The capital invested in the UAE from Mena region is more in the form of individual property assets, whereas the UAE’s role in attracting capital flow from BRIC countries is the result of progressive government measures and global partnerships.”



He added “India commands the lion’s share of BRIC capital coming into the country. The UAE is a net importer of capital mainly from emerging markets and regional markets, where capital inflow from developed markets is low.”"



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Saudi pension fund’s return drops to 8.1% | Economy | Saudi Gazette

Saudi pension fund’s return drops to 8.1% | Economy | Saudi Gazette:



"The Public Pension Agency (PPA), Saudi Arabia’s second-largest pension fund, made an 8.1 percent return on its investments in 2013, down from 9.8 percent in 2012 despite a strong rise in the stock market, the PPA said on Sunday.



The agency, which manages retirement schemes for Saudi nationals, said in its annual report for 2013 that the return on its investments in the Saudi stock market was 25.7 percent last year. That compared with a 25.5 percent rise for the market’s main equity index.



The PPA is one of the major investors in the local equity market, with 32 percent of its total money in 64 listed companies at the end of last year, according to the report. It did not give a monetary value for its equity investments, but its previous annual report said its holdings in 61 listed companies had a market value of 41.8 billion riyals ($11.2 billion) at the end of 2012. The PPA has previously said it had about 12 percent of its assets in real estate at the end of last year, with the fair value of those holdings at 26.6 billion riyals. It is also a major fixed income investor. "



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Ghana seeks IMF help - YouTube

Ghana seeks IMF help - YouTube: ""



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MIDEAST STOCKS-Emaar boosts Dubai before Q2 results; NBAD drags down Abu Dhabi | Agricultural Commodities | Reuters

MIDEAST STOCKS-Emaar boosts Dubai before Q2 results; NBAD drags down Abu Dhabi | Agricultural Commodities | Reuters:



"Blue chip Emaar Properties pushed up Dubai's stock market on Monday ahead of its second-quarter earnings announcement, while a sudden drop of National Bank of Abu Dhabi shares dragged down the Abu Dhabi bourse.



Emaar, Dubai's biggest real estate developer, rose 3.1 percent in its heaviest turnover for a month, lifting the main Dubai stock index 1.3 percent.



After the close, the company reported a 28.6 percent rise in quarterly net profit, marginally beating analysts' forecasts, though revenue from its property sales in Dubai dropped in a possible sign that higher prices are starting to slow the emirate's property boom."



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