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Monday, 20 October 2014

Oil Prices Have a Bit More Room to Fall: Mahesh: Video - Bloomberg

Oil Prices Have a Bit More Room to Fall: Mahesh: Video - Bloomberg: ""



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Islamic State Earns $800 Million a Year From Oil Sales - Bloomberg

Islamic State Earns $800 Million a Year From Oil Sales - Bloomberg:



"The Islamic State is earning about $2 million a day, or $800 million a year, selling oil on the black market, according to one estimate.



The terrorist group is producing 50,000 to 60,000 barrels a day, according to a report released today by Englewood, Colorado-based IHS Inc. (IHS) It controls as much as 350,000 barrels a day of capacity in Iraq and Syria.



The Islamic State has been targeted by U.S.-led airstrikes after posting videos showing the beheadings of journalists and aid workers. Extremist groups typically rely on foreign donations that can be squeezed by sanctions, diplomacy and law enforcement. Today’s report echoes U.S intelligence officials and anti-terrorism finance experts interviewed by Bloomberg News in August, who also determined the group was selling oil at $25 to $60 a barrel, creating a group that resembles Taliban with oil wells."



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Saudi Arabian Airlines Plans IPOs of Three Service Units - Bloomberg

Saudi Arabian Airlines Plans IPOs of Three Service Units - Bloomberg:



"Saudi Arabian Airlines plans to raise at least 10 billion riyals ($2.7 billion) through the sale of shares in its ground-handling, cargo and maintenance units.



An initial public offering of the ground-handling unit valued at 2 billion riyals will take place “in weeks,” Saudi Arabian Airlines’ Chief Financial Officer Muhammad Albakri told reporters in Dubai. The sale of shares in the cargo unit is planned for next year, while the maintenance section of the business will IPO in 2017, he said. Saudi Arabian Airlines will sell 30 percent of both at “at least” double the value of the ground-handling division, he said.



IPO activity in Saudi Arabia, home to the Gulf region’s largest stock market, is quickening after markets rallied and valuations improved. Subscription opened for National Commercial Bank’s share sale this week, which at 22.5 billion riyals will be the second-largest IPO in the world in 2014 after Chinese e-commerce business Alibaba."



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UPDATE 2-MIDEAST STOCKS-Markets give up gains as European stocks slip | Reuters

UPDATE 2-MIDEAST STOCKS-Markets give up gains as European stocks slip | Reuters:



"Middle East markets gave up gains made in early trade on Monday after European bourses once again weakened, but strong third-quarter earnings supported some names in Saudi Arabia.



Dubai's index, which was up as much as 2.5 percent early in the session, fell 0.4 percent by mid-day as the pan-European FTSEurofirst 300 index edged down 0.6 percent.



Bourses in Abu Dhabi and Qatar, both of which had opened on a positive note, also changed direction and were down 1.1 and 1.2 percent respectively. Egypt's index fell 0.6 percent."



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Saudi Arabia keeps the oil market guessing - FT.com

Saudi Arabia keeps the oil market guessing - FT.com:



"As oil prices have tumbled, one question has reverberated around the market: what is Saudi Arabia up to?



Little restraint has been shown by some energy market watchers in their commentary on the recent sell-off and the role played by Opec’s biggest producer.



The 25 per cent fall in the price of Brent crude since mid-June, to almost four-year lows, they say, is the result of a deliberate strategy by the Gulf nation to test the mettle of rival producers from Russia, to fellow Opec member Iran and US shale producers."



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Morgan Says Buy Russia Stocks Seven Weeks After Sell Call - Bloomberg

Morgan Says Buy Russia Stocks Seven Weeks After Sell Call - Bloomberg:



"Morgan Stanley advised clients to buy Russian stocks seven weeks after cutting the country to sell, the latest sign of how volatile the market has become as the conflict in neighboring Ukraine approaches its eighth month.



The Oct. 17 upgrade to what Morgan Stanley equity strategist Ronan Carr described as “tactically overweight” came on the same day JPMorgan Chase & Co. said Russian stocks are likely to extend declines. The bank cut its recommendation to sell in late July, just a month after raising it to buy.



The brisk market-call reversals have come amid steep swings in Russian stocks as investors react to developments in the conflict in eastern Ukraine. The Russian Market Volatility Index, a gauge of traders’ projections for price fluctuations in equities, peaked at 65.4 percent in March after President Vladimir Putin moved to annex Crimea. It reached a six-week high last week."



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Dubai Stocks Rise Most Since July on Global Rally; Tadawul Jumps - Bloomberg

Dubai Stocks Rise Most Since July on Global Rally; Tadawul Jumps - Bloomberg:



"Shares in Dubai climbed the most in more than three months after global equity markets rallied with oil and as some investors speculated the selloff last week was overdone. Saudi Arabia’s shares advanced.



The Dubai Financial Market General Index (DFMGI), gained 3.5 percent to close at 4,419.36, the most since July 6. The gauge last week posted its steeped slump since December 2008, dragging its 14-day relative strength index to 23.4, the lowest since May 2012. A level below 30 indicates to some investors a measure is oversold. It climbed to today 32.7. Saudi Arabia’s Tadawul All Share Index rose 2.4 percent after its RSI dropped to the lowest since March 2011 on Oct. 16.



“Our markets were oversold as we had the worst of the selloff last week,” Ramez Merhi, director of asset management at Dubai-based Al Masah Capital, which manages $545 million, said in e-mailed comments. “Oil and global stocks have rallied and the bounce we are seeing today was practically inevitable.”"



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IBM Paying Globalfoundries $1.5 Billion to Take Unit in Retreat From Chips - Bloomberg

IBM Paying Globalfoundries $1.5 Billion to Take Unit in Retreat From Chips - Bloomberg:



"International Business Machines Corp. (IBM) agreed to pay Globalfoundries Inc. $1.5 billion to take an unprofitable chip-manufacturing unit off its hands, according to two people with knowledge of the matter.



IBM will also receive $200 million worth of assets, making the net value of the deal $1.3 billion, said the people who asked not to be identified because the agreement is private. The companies plan to announce the deal today, the people said. IBM put out a statement yesterday saying it planned to make a “major business announcement” today.



After months of on-again, off-again talks, IBM Chief Executive Officer Ginni Rometty finally struck a deal to jettison the chipmaking unit, which has been a drag on earnings. Globalfoundries, owned by an investment arm of the government of Abu Dhabi, is taking on the unit to tap the expertise of its engineers in the fundamentals of semiconductor design and manufacturing."



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Qatar Fund to Pay $616 Million for Stake in Hong Kong Retailer - Bloomberg

Qatar Fund to Pay $616 Million for Stake in Hong Kong Retailer - Bloomberg:



"Qatar Investment Authority agreed to pay about HK$4.78 billion ($616 million) for a stake in a Hong Kong department store operator as the sovereign wealth fund diversifies its global portfolio.



QIA, the owner of the Harrods department store in London, agreed to buy 20 percent of Lifestyle International Holdings Ltd. (1212) for HK$14.75 a share, according to a statement from the Hong Kong-listed company. Lifestyle shares fell as much as 7.3 percent to HK$13.54 in the city as they resumed trading today after being halted on Sept. 24.



The deal adds to QIA’s investments this year including an European e-commerce company and global business travel through a joint venture with American Express Co. Lifestyle runs a SOGO shopping mall in Hong Kong and four in China."



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No Alibaba Bonus as Banks on NCB IPO Split $7 Million - Bloomberg

No Alibaba Bonus as Banks on NCB IPO Split $7 Million - Bloomberg:



"Banks and advisers working on the $6 billion initial public offering of Saudi Arabia’s National Commercial Bank (NCB), set to be the world’s second-largest share sale this year, will receive about $6.7 million in fees.



That represents about 0.1 percent of the 22.5 billion riyal offering, according to the deal prospectus on NCB’s website. HSBC Holdings Plc (HSBA) and Gulf International Bank Bsc are financial advisers to the lender and will share the fees with eight other banks, three accountancy firms, and a media agency.



The fees compare with the $300 million earned by advisers working on the IPO of Chinese e-commerce company Alibaba Group Holding Ltd. (BABA), which last month raised $25 billion in this year’s biggest offering. Banks including Credit Suisse Group AG and Morgan Stanley took about 1.2 percent of proceeds, or more than ten times the amount NCB is paying on a percentage basis."



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