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Monday, 6 October 2014

Kazakhstan Sells First Overseas Dollar Bonds in 14 Years - Bloomberg

Kazakhstan Sells First Overseas Dollar Bonds in 14 Years - Bloomberg:



"Kazakhstan issued $2.5 billion of 10-and 30-year bonds yesterday in what was the nation’s first dollar-denominated overseas sale since 2000.



Kazakhstan sold $1.5 billion of 10-year dollar bonds to yield 1.5 percentage points above midswaps and $1 billion of 30-year debt at 2 percentage points over midswaps, according to Bloomberg data. The central Asian nation drew bids for $11 billion, according to a person familiar with the matter who asked not to be identified because he’s not authorized to speak publicly.



With a BBB+ rating from Standard & Poor’s and Fitch Ratings, the third-lowest investment grade, Kazakhstan is returning to debt markets after a more than 14-year break to benefit from lower borrowing costs. The nation comes to the market after the International Capital Market Association changed sovereign bond contracts to prevent a repeat of the wrangling that has marred restructuring of Argentina’s debt."



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Ruble Slumps Toward Intervention Levels, Heading for Record Low - Bloomberg

Ruble Slumps Toward Intervention Levels, Heading for Record Low - Bloomberg:



"The ruble weakened for a second day, testing the central bank’s intervention level, as oil slumped to the lowest level in more than two years.



The ruble retreated 0.1 percent to 44.4893 against the regulator’s basket of dollars and euros at 6 p.m. in Moscow, when the central bank stops its market operations. The price of oil, which with natural gas brings the state budget half its revenue, fell 0.9 percent to $91.52 a barrel in London, the lowest level since June 2012. The ruble dropped 14 percent against the dollar last quarter, the worst performance globally, as crude slid and clashes continued in east Ukraine.



The central bank said it shifted the upper bound of the trading band 10 kopeks to 44.50 on Oct. 3, signaling it sold at least $700 million that day. Judging by the price action, it might have sold another $350 million in the morning today, shifting the basket’s boundary a further 5 kopeks to 44.55, according to Dmitry Dorofeev, a money manager at BCS Financial Group."



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Goldman Relationship With Libyan Fund ‘Shocked’ Lawyer - Bloomberg

Goldman Relationship With Libyan Fund ‘Shocked’ Lawyer - Bloomberg:



"A London lawyer who worked at the Libyan Investment Authority in 2008 was “shocked” by the fund’s inappropriate relationship with Goldman Sachs Group Inc. (GS), according to the fund’s court documents.



“The line between friendship and arms-length commercial dealings had clearly been blurred,” Catherine McDougall, then a lawyer at Allen & Overy LLP who was assigned to work at the fund, said in a witness statement cited at a London court hearing today by LIA lawyer Roger Masefield.



She said LIA employees told her about a “lavish” trip to Morocco and that “there was heavy drinking and girls involved,” paid for by a Goldman Sachs banker on his company credit card. “I was shocked by all of this and a number of red flags were being raised in my mind,” McDougall, said in the witness statement."



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Dubai's Dragon Oil eyes $785m deal for Irish firm - ArabianBusiness.com

Dubai's Dragon Oil eyes $785m deal for Irish firm - ArabianBusiness.com:



"Dubai-based Dragon Oil, an energy exploration, development and production company, on Monday confirmed that it is in discussions regarding a possible offer for Petroceltic.



Dragon Oil, which has Emirates National Oil Company (ENOC) as its majority shareholder and produces in Turkmenistan, said in a statement that the offer is of the order of 230 pence sterling per share in cash, or £492 million ($785 million) in total.



The offer is subject to the approval of Dragon Oil shareholders, a statement by Irish-based Petroceltic added."



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A resurrection of Nabucco in sight?

A resurrection of Nabucco in sight?:



""Race is on for the grand southern corridor"



The Southern Gas Corridor is a $50 billion project that encompasses the TANAP-TAP and possibly IAP pipelines all the way from the Caspian up the Italian market seems to have a twist that may in fact resurrect the now forgotten Nabucco pipeline project, possibly via the infusion of Iranian gas. In such a case a significant shift of balances and change of corporate plans will occur.



Recently the President of Iran, Hasan Rouhani, publicly stated that his country could assist in the aforementioned plans and assured the Austrian government during his state visit there that amounts up to 25 bcm per annum could be available. It is of interest to note that the diameters of the interconnectors between Iran and Turkey are already in the same size - 56 inches - thus the plan could move forward in a reasonable time frame since additional amounts would not require more than a few more compressors and upgrades of the already existing infrastructure."



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Analysts predict record earnings on the horizon for UAE banks | The National

Analysts predict record earnings on the horizon for UAE banks | The National:



"UAE banks are expected to end the year on a high note, with lending anticipated to pick up as the government boosts spending on infrastructure for Expo 2020, analysts said.



“Next year we should see a pick-up in loan growth because of Expo 2020 projects,” said Simon Kitchen, a strategist at the Cairo-based investment bank EFG Hermes. “You also have more restructuring of Dubai Inc debt, and that may be positive for provisioning levels decreasing towards the end of this year or next year.”



During the penultimate quarter business typically slows down in the UAE because of summer holidays and Ramadan."



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Brokerages expected to rise on tide of foreign capital | The National

Brokerages expected to rise on tide of foreign capital | The National:



"An influx of foreign capital is expected to lift volumes on the UAE’s stock markets to pre-financial crisis levels and help brokerages earn record revenues.



The bold prediction for the final quarter of the year comes amid a slew of new listings that has stimulated trade in recent weeks.



“Frankly, 2014 is the best year for brokerage companies since 2008 in terms of revenues,” says Mohammed Ali Yasin, the managing director at NBAD’s brokerage arm. “If traded volume continues it will be the highest on record, and that’s why we see brokerages either opening or expanding their business.”

"



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Abu Dhabi’s asset position provides buffer for oil price volatility, Standard & Poor’s says | GulfNews.com

Abu Dhabi’s asset position provides buffer for oil price volatility, Standard & Poor’s says | GulfNews.com:



"Standard and Poor’s Ratings Services said Abu Dhabi’s exceptional strength of its net asset positions provides a buffer to counter the negative impact of oil price volatility on economic growth and revenues.



The S&P affirmed its ‘AA’ long-term and ‘A-1+’ short-term foreign and local currency sovereign credit rating, and also affirmed its stable outlook.



The S&P estimates the GDP per capita of Abu Dhabi, one of the world’s wealthiest economies, at $102,000 (Dh374,340) in 2014."



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World on the brink of an oil price war | GulfNews.com

World on the brink of an oil price war | GulfNews.com:



"A group of the world’s most powerful oil ministers will soon gather in Vienna to take arguably one of the most important decisions that could affect the still fragile world economy: whether to cut production of crude to defend prices at $100 (Dh367) per barrel, or keep open the spigots as winter looms among the biggest energy-consuming nations?



A sudden slump in the price of crude has exposed deep divisions within the Organisation of Petroleum Exporting Countries (Opec) ahead of its final scheduled meeting of the year next month to decide on how much oil to pump. Some members, led by Iran, have called for immediate action to stem the drop in oil prices, while Arab Gulf countries have so far argued that it could be another three months before it becomes clear whether the group should cut production for the first time since December 2008.



Whatever they decide, oil remains the lifeblood of the global economic system due to its direct impact on inflation and input prices. Brent crude — a global benchmark of oil drawn from 15 fields in the North Sea, dipped last week to multi-year lows below $92 per barrel as a perfect storm of a strong US dollar, oversupply in the system and declining demand shattered confidence in the market. Brent has tumbled 20 per cent in the last three months after touching $115 per barrel in June."



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Goldman Special Relationship With LIA Fund Ends in Court - Bloomberg

Goldman Special Relationship With LIA Fund Ends in Court - Bloomberg:



"When the Libyan Investment Authority started out in 2007, it had about $60 billion, office space in Tripoli and a lot to learn. Goldman Sachs Group Inc. (GS), keen to do business with the sovereign wealth fund, offered to help.



Goldman Sachs bankers gave LIA staff training at its London office and spent time in Tripoli showing them how to monitor markets. The bank characterized it as a “special trusting type of relationship,” the LIA said in documents in a London lawsuit.



The relationship soured after the fund lost about $1 billion following the 2008 financial crisis. Lawyers for the fund, appearing for the first time at a London court hearing today, say Goldman Sachs abused its role to secure money-losing investment deals."



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Goldman Special Relationship With LIA Fund Ends in Court - Bloomberg

Goldman Special Relationship With LIA Fund Ends in Court - Bloomberg:



"When the Libyan Investment Authority started out in 2007, it had about $60 billion, office space in Tripoli and a lot to learn. Goldman Sachs Group Inc. (GS), keen to do business with the sovereign wealth fund, offered to help.



Goldman Sachs bankers gave LIA staff training at its London office and spent time in Tripoli showing them how to monitor markets. The bank characterized it as a “special trusting type of relationship,” the LIA said in documents in a London lawsuit.



The relationship soured after the fund lost about $1 billion following the 2008 financial crisis. Lawyers for the fund, appearing for the first time at a London court hearing today, say Goldman Sachs abused its role to secure money-losing investment deals."



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Tumbling Oil Prices Punish Hedge Funds Betting on Gains - Bloomberg

Tumbling Oil Prices Punish Hedge Funds Betting on Gains - Bloomberg:



"Hedge funds increased bets on rising oil prices just before crude futures tumbled to a 17-month low on signs that global supply is outstripping demand.



Prices capped the biggest weekly decline in two months after money managers boosted net-long positions in West Texas Intermediate by 4.1 percent in the seven days ended Sept. 30. Long positions climbed 2.7 percent, U.S. Commodity Futures Trading Commission data show.



WTI sank below $90 on Oct. 2 after Saudi Arabia, the world’s largest oil exporter, cut its prices to Asia. U.S. production is the highest since 1986, while OPEC output expanded to the most in a year. The International Energy Agency last month reduced its projections for demand growth this year and in 2015, citing a weakening economic outlook."



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Tumbling Oil Prices Punish Hedge Funds Betting on Gains - Bloomberg

Tumbling Oil Prices Punish Hedge Funds Betting on Gains - Bloomberg:



"Hedge funds increased bets on rising oil prices just before crude futures tumbled to a 17-month low on signs that global supply is outstripping demand.



Prices capped the biggest weekly decline in two months after money managers boosted net-long positions in West Texas Intermediate by 4.1 percent in the seven days ended Sept. 30. Long positions climbed 2.7 percent, U.S. Commodity Futures Trading Commission data show.



WTI sank below $90 on Oct. 2 after Saudi Arabia, the world’s largest oil exporter, cut its prices to Asia. U.S. production is the highest since 1986, while OPEC output expanded to the most in a year. The International Energy Agency last month reduced its projections for demand growth this year and in 2015, citing a weakening economic outlook."



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