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Monday, 10 November 2014

MIDEAST STOCKS-Markets continue to recover, Arabtec lifts Dubai | Reuters

MIDEAST STOCKS-Markets continue to recover, Arabtec lifts Dubai | Reuters:



"Most stock markets in the Middle East gained on Monday, led by Dubai, where construction firm Arabtec Holding rose sharply after a key shareholder bought a stake in a major Egyptian property developer.



Dubai's index jumped 2.8 percent, its biggest daily gain in three weeks, as Arabtec, which dominated trading volumes, surged 8.8 percent.



Abu Dhabi state fund Aabar Investments, a major shareholder in Arabtec, bought a 5.1 percent stake in Egypt's second-largest listed real estate developer Palm Hills on Sunday."



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Russia presses ahead with fully floating the rouble - FT.com

Russia presses ahead with fully floating the rouble - FT.com:



"The Bank of Russia pressed ahead with fully floating the rouble on Monday, a move that helped the currency to stabilise on the foreign exchange market as the central bank showed its determination to deter investors from betting against it.



The central bank abandoned the dual-currency trading band with which it had so far calculated the nominal exchange rate and ended a policy of daily foreign exchange interventions to prop up the rouble.



The decision, which came just days after the bank drastically limited its regular interventions, completes an early transition to a fully flexible exchange rate regime that had originally been planned for the end of the year."



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Serco still not cheap at a third off - Lex - Companies & Management Video - FT.com

Serco still not cheap at a third off - Lex - Companies & Management Video - FT.com:


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Four stubborn troubles for EM investors | beyondbrics

Four stubborn troubles for EM investors | beyondbrics:



"“If you see ten troubles coming down the road, you can be sure that nine will run into the ditch before they reach you.”



For about two weeks in late October, it seemed as if these optimistic words from Calvin Coolidge, the former US president, might have encapsulated the mindset of emerging market (EM) investors.



But the late October rally in EM financial assets has now stalled. Investors are relinquishing hopes that market troubles may turn out to be mere phantoms and focusing again on the very real problems coming their way. Four of the most intractable are set out below."



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Russia's National Welfare Fund May Be Used to Support Banks | News | The Moscow Times

Russia's National Welfare Fund May Be Used to Support Banks | News | The Moscow Times:



"Money from the National Welfare Fund might be used to give subordinated loans to Russian banks, which in turn could increase loans to sanctioned Russian firms, news agency RIA Novosti quoted Economic Development Minister Alexei Ulyukayev as saying Saturday.



The National Welfare Fund "could serve as the basis for funding the operations of commercial banks," Ulyukayev said. Banks working with the 3 trillion ruble ($80 billion) fund might in turn assist Russian firms such as sanctioned oil major Rosneft, Ulyukayev said.



In October, Finance Minister Anton Siluanov rebuffed Rosneft's request for $49 billion from the fund to help it weather Western sanctions, although he added that Rosneft may still receive some support."



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Russian Central Bank Sets Economic Scenario With Oil Prices at $80 Per Bbl to End of 2017 | Business | RIA Novosti

Russian Central Bank Sets Economic Scenario With Oil Prices at $80 Per Bbl to End of 2017 | Business | RIA Novosti:



"The Russian Central Bank has dumped the idea of developing a stress scenario for the development of the economy that would account for oil prices hitting $60 per barrel and believes oil prices will not drop below $80 per barrel up to 2017, the bank said in a statement Monday.



The most pessimistic economic forecast also takes into consideration western sanctions that will most likely remain in place until the end of 2017, the statement reads. The Central Bank's base scenario suggests that oil prices will reach $95 per barrel in 2015 and will be corrected to $92 per barrel by 2017.



“The results on the net personal outflow of capital for 2014 is assessed at the level of $128 billion, which is higher than the forecast,” the statement reads."



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Dubai's Limitless to pledge revenues to get $1.2 billion debt deal: sources | Reuters

Dubai's Limitless to pledge revenues to get $1.2 billion debt deal: sources | Reuters:



"Dubai's Limitless will pledge its future revenues to service debt repayments as it attempts a second restructuring of a $1.2 billion Islamic loan which banking sources said should be completed ahead of a December deadline.



The state-owned property firm is on track to restructure the debt by the end of the year, when a payment worth a third of the total comes due, two sources familiar with the matter said on Sunday.



Despite a recovery in the local economy which has helped many of the other restructured firms meet their new repayment schedules, Limitless is still struggling to turn its fortunes around."



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Oman Tribune - Sliding oil price to dampen GCC infrastructure sector

Oman Tribune - the edge of knowledge:



"Oil price declines could dampen economic growth in the Gulf Cooperation Council countries and weaken operating conditions in the corporate and infrastructure sectors, according to a report from the rating agency Standard & Poor’s.



The report, ‘Lower oil prices will test GCC corporate and infrastructure issuers’ resilience’, says that the lower oil price could slow economic growth for the GCC countries and weaken the operating environment for the corporate and infrastructure sectors. A prolonged period of lower government revenue, given GCC governments’ high infrastructure spending plans, may push up sovereign and government-related entity capital market issuance and place a greater onus on the private sector to fund investments.



The rating agency had recently revised its Brent crude oil price assumption to $85 per barrel for the remainder of 2014 and $90 for 2015 and beyond. The Brent price was now in the $83 range."



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DIB turnaround leaves little room for doubt | GulfNews.com

DIB turnaround leaves little room for doubt | GulfNews.com:



"When Dubai Islamic Bank, the largest Islamic bank in the UAE by assets reported 111 per cent growth in net profit in the first quarter of this year; most analysts doubted a repeat of it in the following quarters. But with the results for the third quarter, the bank has surprised the sceptics with strong numbers for three consecutive quarters and a strong outlook for the fourth.



“We were not surprised by the initial doubts expressed by many. The easiest way to gain their confidence was to deliver it real numbers. Looking at our third quarter numbers some analysts have even commented that we have the potential to deliver more and we believe them,” said Dr Adnan Chilwan, Dubai Islamic Bank’s chief executive officer.



For the third quarter of this year, DIB reported a net profit of Dh723 million, up 57 per cent compared to Dh461 million in the same quarter last year. For the first nine months of 2014 the bank’s profits were up 72 per cent to Dh2 billon. The bank’s gross revenue increased by 17 per cent to Dh4.7 billion million in the first three quarters of this year compared to Dh4 billion in the same period last year. Dr Chilwan said the growth in the past three quarters are built on prevailing strong macroeconomic fundamentals, the intrinsic strength of the bank’s balance sheet and a robust strategy the bank has adopted following five years of transformation."



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Bank of Russia Cuts 2015 Economic Forecast to Show No Growth - Bloomberg

Bank of Russia Cuts 2015 Economic Forecast to Show No Growth - Bloomberg:



"Russia’s central bank cut its base-case economic forecast for next year to show no growth, assuming sanctions remain in place and oil averages $95 a barrel.



The regulator also pushed back its medium-term inflation target of 4 percent to 2017 from 2016, according to a revised monetary policy plan for 2015-17 released today. The base-case scenario sees sanctions lasting through the end of 2017. 




Russia’s decision to increase its key rate this year has helped contain the ruble’s drop against the dollar, which would have been 10 percent greater if no action had been taken, First Deputy Governor Ksenia Yudaeva said in an e-mailed statement."



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Bullish Oil Wagers Cut in Sign of Growing OPEC Skepticism - Bloomberg

Bullish Oil Wagers Cut in Sign of Growing OPEC Skepticism - Bloomberg:



"Speculators are the least bullish on U.S. crude in 20 months as they lose faith in OPEC’s willingness to ease a global supply glut. 




Money managers reduced net-long positions in West Texas Intermediate by 8 percent in the week ended Nov. 4, U.S. Commodity Futures Trading Commission data show. Long positions retreated to the least since May 2013 while short holdings rose.



WTI tumbled into a bear market this year as crude supply expanded from the U.S. to Libya and demand sputtered from Europe to China. Saudi Arabia cut its export charges to the U.S. this month, signaling a preference for market share over prices. The kingdom accounts for almost a third of OPEC’s output and the 12-nation group meets in about two weeks to debate supply."



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Dubai Bugatti Distributor Said to Hire Banks for IPO - Bloomberg

Dubai Bugatti Distributor Said to Hire Banks for IPO - Bloomberg:



"Al Habtoor Group LLC, the Dubai distributor of Bentley and Bugatti autos, hired National Bank of Abu Dhabi PJSC and Emirates NBD PJSC (EMIRATES) to manage an initial public offering, two people with knowledge of the matter said. 




The company may raise about $2.5 billion from selling a 30 percent stake in the first quarter, the people said, asking not to be identified because the information is private. The listing is planned for the Dubai Financial Market (DFMGI), they said. 




Companies in Dubai are considering share sales after the exchange’s benchmark index jumped 34 percent this year, the world’s third best-performing among 93 major gauges tracked by Bloomberg. Healthcare and education group Amanat Holdings Group PJSC (1074791D) this month completed an IPO that was 10-times oversubscribed, while Emaar Malls Group PJSC received $43 billion in bids for its $1.6 billion offering in September."



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MIDEAST STOCKS-Banks lift Saudi, Egypt bourses - Yahoo Maktoob News

MIDEAST STOCKS-Banks lift Saudi, Egypt bourses - Yahoo Maktoob News:



"Banking stocks lifted markets in Saudi Arabia and Egypt in early trade on Monday as new mortgage regulations took effect in the Gulf kingdom and Cairo's largest listed lender prepared to publish third-quarter results.



Saudi Arabia's main index edged up 0.2 percent shortly after opening. Al Rajhi Bank, the country's largest listed lender, rose 0.4 percent and Samba Financial Group, the third-largest bank by assets, added 2.4 percent.



Saudi Arabia's central bank announced this week that rules covering real estate mortgage financing and other finance company activity were formally taking effect, potentially clearing the way for the industry to develop."



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