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Tuesday, 16 December 2014

IMF, World Bank Halt Lending to Ukraine – Franklin Templeton $4 Billion Ukraine Bet Goes Bad | naked capitalism

IMF, World Bank Halt Lending to Ukraine – Franklin Templeton $4 Billion Ukraine Bet Goes Bad | naked capitalism:



"Multi-billion dollar lending to Ukraine by the International Monetary Fund (IMF) and World Bank has stopped amid growing doubts among country board directors at the two international organizations that the Ukrainian Government can meet repayment commitments and loan covenants for 2015, or deliver on reform promises and budget financing targets tabled in Kiev this week.



For the first time since the change of government in Ukraine last February led to civil war in the east of the country, European bankers and multilateral fund sources acknowledge that Kiev is now likely to default on its international debts, and will seek a reorganization of its bond debt. This will hit Franklin Templeton, the US investment fund which has accumulated up to $9 billion in Ukrainian bonds on a wager to make a $4 billion profit – if the US Government guarantees full and timely repayment.



IMF officials refuse to elaborate on the new terminology which the Fund began issuing last week to describe the suspension of cash disbursements under the Fund’s existing $17.1 billion programme, started last May. For the fine print of the IMF programme, read this and more."



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Slumping ruble should push Russia to ‘live in new reality’ – Bank chief — RT Business

Slumping ruble should push Russia to ‘live in new reality’ – Bank chief — RT Business:



"

The plunging ruble is a signal for the Russian economy to adapt to new conditions, Russia’s Central Bank Chair Elvira Nabiullina said, following the surprise midnight decision to hike the key interest rate to 17 percent.



The regulator decided to increase borrowing costs by 6.5 percentage points to stymie wild inflation and the ruble, which has fallen to record lows after the bank stopped spending billions of dollars intervening. The hike shocked the ruble, bringing it down from 67 to 60 rubles to the dollar. At the time of publication, the ruble exchange rate was 65.59 against the US dollar.



“We must learn to live in a new reality, to focus more on our own resources to finance projects and give import substitution a chance,” the bank chief said in a televised address Tuesday."



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Tanker rates flying - YouTube

Tanker rates flying - YouTube: ""



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Falling oil prices - a global tax cut - YouTube

Falling oil prices - a global tax cut - YouTube: ""



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Midnight monetary policy - YouTube #Russia #Ruble

Midnight monetary policy - YouTube: ""



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Emirates releases annual environment report | GulfNews.com

Emirates releases annual environment report | GulfNews.com:



"Emirates Group said on Monday its airlines fleet is 14.5 per cent more fuel efficient than the International Air Transport Association (IATA) average.



The Group released its fourth annual Environmental Reporter on Monday. The report, audited by PWC, covers environmental data from across the Group for the 12 months ending March 31.



“The Environmental Report is a report card for our continuing efforts … [and] a performance benchmark against the previous year and with the industry,” stated Shaikh Ahmad Bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline & Group."



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Russia ADRs Fall Most in Five Years on Ruble’s Plunge - Bloomberg

Russia ADRs Fall Most in Five Years on Ruble’s Plunge - Bloomberg:



"Russian stocks slid the most in five years in the U.S. as concern mounted that plunging oil prices and a weakening currency will further harm an economy already forecast to fall into a recession next year.



The Bloomberg Russia-US Equity Index dropped 11 percent in New York yesterday, an eighth day of declines and its longest losing streak since October 2008. Oil producer OAO Surgutneftegas (SGTPY) sank the most on the gauge, losing 22 percent. Crude fell to a five-year low as the United Arab Emirates said OPEC won’t rein in production. Russia’s central bank raised its benchmark interest rate to 17 percent from 10.5 percent after the close of stock trading as the ruble slid below 64 per dollar for the first time.



“We are probably already in a recession,” Oleg Popov, who helps oversee $1 billion at Allianz Investments in Moscow, said by phone. “As the currency’s collapse fuels inflation, undermines purchasing power and further slows the economy, all sectors of the stock market are getting sold off as if there is no tomorrow. The market is paralyzed with fear and is pricing in an unthinkable degree of risk.”"



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Top Five Bank for Gulf Bonds Sports Local Bragging Rights - Bloomberg

Top Five Bank for Gulf Bonds Sports Local Bragging Rights - Bloomberg:



"The top local bank for bond sales in the Gulf Cooperation Council this year jumped five spots to match its highest ranking ever.



National Bank of Abu Dhabi PJSC was beaten by only HSBC Holdings Plc and Standard Chartered Plc (STAN) for debt deals in the six-nation GCC, according to data compiled by Bloomberg. The Abu Dhabi-based lender underwrote $2.46 billion of sales in 2014, with its third-place ranking the same as in 2012.



The bank’s return to the top five comes just over a year after hiring Alex Thursby, a former chief executive officer of international and institutional banking at Australia & New Zealand Banking Group Ltd. NBAD is seeking “to build a global position in debt capital markets,” Thursby said in an interview earlier his month, and is reducing its emphasis on loan growth to boost income from investment banking and wealth management."



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Dubai Stocks Lead GCC Declines as Global Markets, Oil Retreat - Bloomberg

Dubai Stocks Lead GCC Declines as Global Markets, Oil Retreat - Bloomberg:



"Dubai’s shares led the rout in stocks across the Gulf after oil prices and global equities extended their slump.



The DFM General Index (DFMGI) plunged 7.7 percent at 11:15 a.m. local time to 3,068.93, the lowest in a year. The measure has declined 28 percent since the end of November and is poised for the worst month in more than six years. The ADX General Index, which entered a bear market yesterday, fell 4.2 percent.



Equity markets worldwide tumbled and the Standard & Poor’s 500 Index (SPX) reversed gains to close 0.6 percent lower and the Stoxx Europe 600 Index slipped 2.2 percent. Brent plunged for a fifth day to the lowest level in more than five years to $60.40 a barrel."



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BBC News - Russia's fast track to ruin

BBC News - Russia's fast track to ruin:



"

Here are the numbers that explain why the Russian economy is imploding in the face of a tumbling oil price and Western sanctions.



Oil and gas energy represents two thirds of exports of around $530bn (£339bn). Without them, Russia would have a massive deficit on its trade and financial dealings with the rest of the world - which is why Russia's central bank expects a capital outflow of well over $100bn this year and next.



And public expenditure is almost completely supported by energy-related revenues. In their absence, the government would be increasing its indebtedness by more than 10% a year, according to IMF data."



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BBC News - Russian rouble dives despite shock rate rise to 17%

BBC News - Russian rouble dives despite shock rate rise to 17%:



"Russia's rouble has slipped back near its all-time low despite a dramatic move by its central bank overnight.



It increased rates from 10.5% to 17% in an attempt to boost the currency's value against the dollar.



The rouble has lost almost 50% against the US dollar this year as falling oil prices and Western sanctions continue to weigh on the country's economy."



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