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Tuesday, 19 August 2014

Russia Counting the Cost of Adventure in Ukraine | Economy Watch | 1913 Intel

Russia Counting the Cost of Adventure in Ukraine | Economy Watch | 1913 Intel:

"“The chance that he can solve Russia’s economic challenges while stirring the pot in the Ukraine have to be slim to vanishing.”



 “… eventually Putin is going to have to find a way of restoring the Russian economy to health or face a backlash at home.”

The sanctions imposed by Europe, the UK and America on targeted individuals and institutions in Russia are taking their toll, as is the flight of capital out of the country. On top of this, Putin’s retaliatory measure, imposing a food ban on products from countries supporting the sanctions measures, is already escalating food price inflation in Russia. However, the pain is not only being felt by Russians. A recent Bloomberg article points out that the former Soviet satellites are getting caught in the crossfire of sanctions, which is hurting their economies and adding to months of sagging Russian demand for their exports. Finland, Poland, Greece and France have already submitted claims to the EU for compensation and a Hungarian official is cited in the Hungarian press as saying that small to medium sized Hungarian businesses stand to lose around £340 million and that Hungary too, should put in a claim for compensation for losses resulting from EU sanctions."


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Ukraine Seeks Swiss Help in Recovering Former Regime's Frozen Assets - WSJ

Ukraine Seeks Swiss Help in Recovering Former Regime's Frozen Assets - WSJ:



"Ukraine has asked Switzerland for help in recovering assets moved to the Alpine country by members of ousted leader Viktor Yanukovych's inner circle, according to a Swiss official.



Since the start of the summer, Switzerland's justice department has received three requests for assistance in repatriating the assets, spokesman Folco Galli said. The requests concern funds linked to the 19 members of Mr. Yanukovych's entourage, rather than to the former Ukrainian leader himself, Mr. Galli said.



 In February, Switzerland froze the assets of the group of Ukrainians, which includes Mr. Yanukovych's son, Oleksandr. Authorities haven't released the total value of the assets, but Swiss newspapers have reported they are worth roughly 100 million Swiss francs ($110 million)."



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MIDEAST STOCKS-Egypt's property stocks lead Cairo rebound; Dubai up | Reuters

MIDEAST STOCKS-Egypt's property stocks lead Cairo rebound; Dubai up | Reuters:



"Egyptian property developer SODIC helped Cairo's bourse rebound on Tuesday as foreign institutions bought into the country's buoyant real estate sector.



Gulf markets were also mostly upbeat as buying demand increased slightly, but trading remained in a summer lull.



SODIC's shares surged 8.7 percent to a six-year peak of 47.30 Egyptian pounds. Last week, the firm - also called Sixth of October Development and Investment Co - posted a 14 percent rise in second-quarter profit."



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High-yield bonds’ minor correction - YouTube

High-yield bonds’ minor correction - YouTube: ""



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Eurozone peripheral debt costs fall - YouTube

Eurozone peripheral debt costs fall - YouTube: ""



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#Ukraine’s Next Crisis? Economic Disaster | naked capitalism

Ukraine’s Next Crisis? Economic Disaster | naked capitalism:



"Ukraine’s next crisis will be a devastatingly economic one, as violent conflict destroys critical infrastructure in the east and brings key industry to a halt, furthering weakening the energy sector by crippling coal-based electricity production.



The Ukrainian military’s showdown with separatists in the industrial east has forced coal mines to severely cut production or close down entirely. This has led to an electricity crisis that can only be staunched by cutting domestic production along with exports to Europe, Crimea, and Belarus — or worse, getting more imports from Russia.



In the coal centers of Ukraine’s industrial east—Luhansk and Donetsk—fighting has forced the full closure of an estimated 50 percent of coal mines, while overall coal production has fallen 22 percent over the same period last year."



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Kuwait in 10-year deal with Sinopec to double oil supplies | Arab News

Kuwait in 10-year deal with Sinopec to double oil supplies | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.:



"Kuwait has concluded a new 10-year deal with a China's Sinopec Corp. to nearly double its supplies by offering to ship the oil and sell on a more competitive cost-and-freight basis, according to a KPC official and a trading source on Monday.



State-run Kuwait Petroleum Corp. will export 300,000 barrels per day (bpd) of crude oil under the agreement, which would amount to 15 percent of Kuwaiti petroleum exports and estimated to be worth $120 billion, said Nasser Al-Mudaf, KPC's head of international marketing told Reuters.



Al-Mudaf said the contract replaces a previous one for between 160,000 bpd 170,000 bpd that had expired."



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Asian shares, dollar lifted by hopes for Ukraine progress | Reuters

Asian shares, dollar lifted by hopes for Ukraine progress | Reuters:



"Asian stocks rose on Tuesday after Wall Street climbed to its highest level since late July, while the dollar got some help from a rebound in U.S. Treasury yields and hopes of some easing of tensions in the Ukraine crisis.



Financial spreadbetters predicted the cheer would spread to European trade, where they expected Britain's FTSE 100 to open 18 to 19 points higher, or up 0.3 percent; Germany's DAX to open 42 to 49 points higher, or up 0.5 percent; and France's CAC 40 to open 9 to 12 points higher, or up 0.3 percent.



"While no one is suggesting the crisis in Ukraine is anywhere near resolved, given that the fighting remains ongoing as Kiev’s forces tighten their grip, European markets look set to take their cues from last night's positive finish in the U.S., and open higher this morning," Michael Hewson, chief market analyst at CMC Markets, said in a note."



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Bulgaria Suspends South Stream Gas Pipeline Project | World | RIA Novosti

Bulgaria Suspends South Stream Gas Pipeline Project | World | RIA Novosti:



"Bulgaria’s Minister of Economy and Energy Vasil Shtonov has ordered Bulgaria’s Energy Holding to halt any operations on the South Stream gas pipeline project, according to the official statement.



The operations were suspended as they do not meet the requirements of the European Commission, Bulgaria’s Ministry of Economy and Energy said on its website on Monday.



The South Stream pipeline, expected to carry Russian gas across the Black Sea to Southern and Central European countries, is aimed at diversifying export routes for Russian gas."



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UK oil and gas forecasts 'incredibly pessimistic', says Scotland | Business | The Guardian

UK oil and gas forecasts 'incredibly pessimistic', says Scotland | Business | The Guardian:



"Forecasts of future revenues from North Sea oil and gas by an economics watchdog have been described as "incredibly pessimistic" and could be six times lower than the actual levels, according to a report.



The Scottish and UK governments have repeatedly clashed over the future of the industry, particularly around forecasts from the UK Office for Budget Responsibility on the amount of cash it expects to be raised from the North Sea. 




The Scottish government argues the OBR forecasts are based on a "very low estimate of future total production", while its own figures have been criticised by opponents who claim they are overly optimistic."



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Limited growth opportunities for UAE family owned businesses | GulfNews.com

Limited growth opportunities for UAE family owned businesses | GulfNews.com:



"Family-owned businesses in the UAE are finding it harder to grow than they did in previous years.



“It’s very hard to grow now. You’re talking about a borderline mature economic set-up,” Abdullah Al Gurg, general manager of UAE-based conglomerate Easa Saleh Al Gurg (ESAG), told Gulf News in an interview on Monday.



Al Gurg said that the UAE market is established and there are limited opportunities for new product ranges to be brought into the country."



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Emerging-Market Stocks Advance for Sixth Day; Ruble Strengthens - Bloomberg

Emerging-Market Stocks Advance for Sixth Day; Ruble Strengthens - Bloomberg:



"Emerging-market stocks rose for a sixth day as a rally by telecommunications and energy shares overshadowed Chinese data showing the nation’s housing slump deepened. Russia’s ruble appreciated the most among its peers.



China Mobile Ltd. advanced to a six-year high as Nomura Holdings Inc. lifted its price target. OAO Lukoil and OAO Gazprom led gains in Russia. The ruble strengthened 0.4 percent versus the dollar after the central bank widened its trading range against a basket of currencies. Indian stocks surged to a record. The Ibovespa rose for a third day as a poll showed Brazil’s presidential race was too close to call.



The MSCI Emerging Markets Index rose 0.2 percent to 1,077.07. Ukrainian Foreign Minister Pavlo Klimkin and his Russian counterpart Sergei Lavrov met in Berlin for talks seeking to ease tension. German Foreign Minister Frank-Walter Steinmeier said after the discussion that some progress was made."



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Dubai’s ICD Said to Seek $880 Million Atlantis Debt Refinancing - Bloomberg

Dubai’s ICD Said to Seek $880 Million Atlantis Debt Refinancing - Bloomberg:



"Investment Corporation of Dubai, the emirate state-owned holding company, is seeking to refinance an $880 million loan taken out by resort hotel Atlantis, The Palm, according to four people with knowledge of the matter.



The company hired HSBC Holdings Plc (HSBA), Standard Chartered Plc (STAN), and Emirates NBD PJSC on the deal, three of the people said, asking not to be identified as the talks aren’t public. The company is seeking a significant cut on the 5.5 percent above the London interbank offered rate price it has on the existing deal, three of the people said. The new loan could be increased to about $1 billion, one of the people said.



Companies in Dubai are benefiting from resurgent confidence in the economy and abundant liquidity at the local banks to lower borrowing costs. Jebel Ali Free Zone FZE lowered the rate it pays on a 2.2 billion-dirhams ($599 million) Shariah-compliant loan by 50 percent, three bankers familiar with the deal said earlier this month. Emaar Malls, the retail arm of Emaar Properties PJSC (EMAAR), said in June it had raised a $1.5 billion loan priced at 1.75 percent above Libor that would be used to refinance a smaller and more expensive loan."



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Egypt Expects Suez Canal Revenue to More Than Double in 4 Years - Bloomberg

Egypt Expects Suez Canal Revenue to More Than Double in 4 Years - Bloomberg:



"Egypt expects revenue from the Suez Canal to more than double within the coming four years to more than $13 billion annually as it expands the waterway, Finance Minister Hany Kadry Dimian said.



The expected jump in revenue from about $5.5 billion now will be used in part to pay interest on investment certificates planned to finance the expansion of the canal, the minister said in a statement today.



President Abdel-Fattah El-Sisi announced a 60 billion Egyptian-pound ($8.4 billion) project that includes building a new channel parallel to the canal, as part of efforts to revive the economy after three years of political turmoil."



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European dividends can't keep climbing - YouTube

European dividends can't keep climbing - YouTube: ""



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