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Monday, 25 August 2014

Russia in Negative Economic Stage, Should Invest in Development – Economy Minister | Russia | RIA Novosti

Russia in Negative Economic Stage, Should Invest in Development – Economy Minister | Russia | RIA Novosti:



"Russia has entered a negative stage in the economic cycle and should invest in its own development, Alexei Ulyukayev, Russia’s minister of Economic Development, said in his article published in the Vedomosti newspaper Monday.



“It could be said that we have entered a negative stage of the economic cycle. Lack of demand is a significant obstacle on the way to restoring steady growth. In these circumstances, a decrease in government spending will only intensify the negative trend in the national economy, which, in turn, will hinder improving fiscal performance,” Ulyukayev said.



The Russian economy began stagnating in 2012 due to weak domestic growth rather than the changing geo-political environment. However, the minister also noted that now is a good time to invest in the country’s development."



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Overheating risks arising in Dubai’s real estate market | Economy | Saudi Gazette

Overheating risks arising in Dubai’s real estate market | Economy | Saudi Gazette:



"While China is consolidating its state-led moderation, prices continue to climb in Dubai, Asiya Investments said in its latest weekly analysis.
 



The recent economic slowdown in China is having a profound effect in many of its sectors. The property market in China, which has been showing clear signs of cooling down in recent months, is one of those in which the slowdown is expected to be more intense. Price growth peaked late last year, reaching a yearly rate of 9.9 percent, and has been trending down ever since. In fact, the month-on-month growth rate has been negative since May, reaching monthly declines of nearly a full percentage point. Second-hand house prices contributed the most to the moderation of property prices, failing to grow in 19 out of the 70 most prominent cities in China.
 



Chinese authorities have been trying to moderate overheated real estate prices while meeting the large demand arising from urbanization. A heterogeneous set of measures such as a tax on capital gains, ownership restrictions for residents and mortgage rate hikes have already had a noticeable impact on the market. "



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New era in energy relations between China and Middle East | The National

New era in energy relations between China and Middle East | The National:



"China has stepped up its engagement in the Middle East over the past decade as the Asian giant seeks to safeguard and diversify crucial energy and commodities needed for long-term economic growth. From developing some of the world’s biggest oilfields in Iraq to constructing a large-scale refinery in Saudi Arabia, Chinese companies are broadening their footprint across the region, channelling billions of US dollars into sectors such as energy and commodities.



The energy needs of China and the Middle East are closely intertwined. On an industry level, it paves the way for a new breed of Chinese energy companies — characterised no longer by low-cost and substandard quality and service offerings but by considerably upgraded technological, human and financial capabilities — to play a much greater role in a sector that in the past was almost exclusively dominated by western firms, in particular international oil companies.



On a political level, China’s deepening engagement in the Middle East provides the world’s second-largest economy with long-term access to strategic hydrocarbons and other raw materials, while at the same time opening up downstream opportunities for producing countries seeking to cement relationships with their customers and ensure long-term demand security. It is also strengthening bilateral relations between regional governments and China, thus adding a new strategic dimension to the region’s political dynamics that may have greater weighting in the aftermath of the Arab Spring."



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Etihad is ‘comfortable’ over second review of its stake in Swiss-based Darwin | The National

Etihad is ‘comfortable’ over second review of its stake in Swiss-based Darwin | The National:



"Etihad Airways said yesterday that it was “comfortable” with a second review by Switzerland’s federal office of civil aviation of its acquisition of a 33.3 per cent stake of the Swiss-based airline Darwin.



The Swiss Federal Office of Civil Aviation (Foca) said last week that the deal currently gives effective control to Etihad over Darwin Airline, which was rebranded to Etihad Regional in January.



Foca wants to ensure that the deal complies with its rules which stipulate that the majority of the airline’s shares should be owned by Swiss or EU citizens. The same applies to the question of control over the airline."



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GCC corporates headed to capital markets for longer term funding | GulfNews.com

GCC corporates headed to capital markets for longer term funding | GulfNews.com:



"Post global financial crisis, corporates from the Gulf Cooperation Council (GCC) countries are increasingly seeing benefits of seeking longer term funding through both debt and equity capital issuance, said Stuart Anderson, Managing Director & Regional Head Middle East of Standard& Poor’s.



The overall positive economic environment in these countries, combined with the lessons learned during the financial crisis and recent market reforms are encouraging many corporates in the region to seek capital market funding.



While government-related entities [GREs] are looking at diversifying their funding sources through capital market issuance, Anderson expects medium-size corporates to be the big game changers in terms of debt and equity issuance from the region."



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Hedge Fund Crude Bets Tumble Amid Surging Global Supply - Bloomberg

Hedge Fund Crude Bets Tumble Amid Surging Global Supply - Bloomberg:



"Speculators are the least bullish on U.S. crude oil prices in 16 months as refinery maintenance weakens demand at a time when Libya and Iraq are swelling global supplies.



Futures dropped a fifth consecutive week after money managers reduced net-long positions in West Texas Intermediate, the U.S. benchmark grade, by 14 percent in the seven days ended Aug. 19, the Commodity Futures Trading Commission said.


Prices sank below $95 on Aug. 19 for the first time in seven months as U.S. air strikes in Iraq helped reverse the advance of Islamic State fighters and the country’s Kurds work to increase oil shipments. Libyan output climbed last week and exports resumed from the port of Es Sider. Refineries in the U.S. typically schedule work for September and October, when demand for gasoline declines after the summer peak, and before consumption of heating fuel picks up during winter."



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Brent Extends Drop as Mideast Oil Supply Stays Safe; WTI Steady - Bloomberg

Brent Extends Drop as Mideast Oil Supply Stays Safe; WTI Steady - Bloomberg:



"Brent fell for a second day amid speculation that turmoil across the Middle East won’t threaten crude supplies. West Texas Intermediate was steady in New York after a technical issue disrupted electronic trading.



Futures dropped as much as 0.6 percent in London. Libya’s production increased even as Islamist militias seized Tripoli’s international airport, while supply from Iraq remained uninterrupted by its struggle to form a new government. CME Group Inc., the world’s largest futures market, halted most of its Globex platform for about four hours, suspending contracts including oil and commodities.



“The region is in chaos but production continues to rise,” Robin Mills, the head of consulting at Manaar Energy Consulting and Project Management, said by phone from Dubai. “Brent’s been pretty weak. Global demand is still sluggish.”"



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China’s ICBC Leasing Said to Seek $300 Million Gulf Bank Loan - Bloomberg

China’s ICBC Leasing Said to Seek $300 Million Gulf Bank Loan - Bloomberg:



"ICBC Leasing, a unit of Industrial & Commercial Bank of China Ltd., hired Dubai-based Emirates NBD and Commercial Bank International (CBI) to arrange a $300 million loan, according to three people familiar with the matter.



The facility will be priced at 2.1 percent above the London interbank offered rate and syndication is expected to be completed by the end of this month, the people said, asking not to be identified as the information is private.



ICBC agreed to buy Turkey’s Tekstil Bankasi AS in April as the Beijing-based lender seeks to boost earnings from the Middle East by 50 percent this year, Zhou Xiaodong, chief executive officer for the region, said in a February interview."



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Singapore Shooting-Range Maker’s Stock Doubles on Mideast - Bloomberg

Singapore Shooting-Range Maker’s Stock Doubles on Mideast - Bloomberg:



"Starburst Holdings Ltd. (STARB), a Singaporean builder of shooting ranges, expects revenue to rise fivefold as Middle East defense spending surges following the Arab Spring uprisings.



The company is pursuing as many as six contracts to provide firearms-training facilities to countries including the United Arab Emirates, Executive Chairman Edward Lim said. Projects in the region may drive sales in five to six years to S$100 million ($80 million) from S$21 million in 2013, he said. Starburst is Singapore’s best-performing stock since listing shares on July 10, soaring 139 percent as of the last close. The benchmark Straits Times Index rose 1.5 percent in that span.



“After the Arab Spring, countries in the Middle East are starting the implementation of compulsory military services,” Lim said in an interview on Aug. 21. “They need to build new shooting ranges to accommodate the increase in the military personnel.”"



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Occidental Talks to Mubadala on $3 Billion Asset, PIW Says - Bloomberg

Occidental Talks to Mubadala on $3 Billion Asset, PIW Says - Bloomberg:



"Occidental Petroleum Corp. (OXY) is in talks to sell a $3 billion stake in a gas field to Abu Dhabi-owned Mubadala Development Co., Petroleum Intelligence Weekly reported, without saying where it got the information.



The companies are discussing the sale of as much as 30 percent of the $10 billion Shah natural gas project in the United Arab Emirates, the newsletter reported. Two officials at Mubadala’s media department didn’t immediately respond to voice messages seeking comment. Melissa Schoeb, a spokeswoman for Occidental, declined to comment when contacted by e-mail.



Oxy, as the U.S. oil producer is known, is working with state-run Abu Dhabi National Oil Co. to develop the Shah field, with production to begin at the end of the year. The U.A.E. is tapping the reserve of sour gas, fuel with a high content of deadly sulfur dioxide, to meet domestic demand for the hydrocarbon used to run power plants and feed chemical facilities."



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