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Thursday, 15 January 2015

The SNB and the Russia/oil connection | FT Alphaville

The SNB and the Russia/oil connection | FT Alphaville:

"A quick post to collate a few side theories on the reasons, justifications and consequences of the SNB move.

Simon Derrick at BNY Mellon is first to point out that the euro floor/chf celing was leaving an open door to safe haven flows from Russia by way of an open bid for euros. As he notes:

Compounding this was Switzerland’s role as a safe haven as the Russian crisis intensified. It was, therefore, not entirely surprising when the SNB decided a few weeks ago to impose an interest rate of -0.25% on sight deposit account balances at the bank and expand the target range for three-month LIBOR to -0.75%/+0.25%."

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UPDATE 2-MIDEAST STOCKS-Poor Q4 results weigh on Saudi; Egypt loses steam | Reuters

UPDATE 2-MIDEAST STOCKS-Poor Q4 results weigh on Saudi; Egypt loses steam | Reuters:

"Shares in Saudi Arabia's top banks fell in early trade on Thursday after several disappointing earnings reports, while Egypt's market slowed its advance as the index ran into technical resistance after three strong sessions.

The main Saudi index was nearly flat and Al Rajhi Bank was the main drag, tumbling 4.5 percent after the lender's fourth-quarter profit missed analysts' estimates.

Al Rajhi's net profit slipped 1.8 percent to 1.52 billion riyals ($405 million) in the quarter; analysts had expected 1.70 billion riyals."

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Iran’s Budget Assumes $40 Oil After Prices Decline 33% - Bloomberg

Iran’s Budget Assumes $40 Oil After Prices Decline 33% - Bloomberg:

"Iran, its oil exports curbed by sanctions, is lowering the crude price for this year’s budget to $40 a barrel as the energy slump affects governments and industry.

The government is revising its draft budget to assume a base price of $40, from $72, the state-run Fars News Agency reported Finance and Economy Minister Ali Tayebnia as saying today. The minister said some projects will have to be halted, according to Fars. The Iranian calendar year begins March 21.

Brent, a pricing benchmark for more than half the world’s oil, fell 18 percent this year after tumbling 48 percent last year. Qatar Petroleum and Royal Dutch Shell Plc yesterday called off plans to build a $6.5 billion petrochemical plant in the emirate in response to lower oil prices."

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Dubai’s Emaar Said to Plan Hotels Unit IPO in Second Half - Bloomberg

Dubai’s Emaar Said to Plan Hotels Unit IPO in Second Half - Bloomberg:

"Emaar Properties PJSC (EMAAR), Dubai’s largest publicly-traded real estate developer, plans to sell shares in its hotels unit in the second half and hired Rothschild as an adviser, three people with knowledge of the matter said.

The offering is planned for later in the year because of conditions on the Dubai Financial Market, two of the people said, asking not to be identified as the information is private. Chairman Mohammed Alabbar told Sky News in October that the company was considering the sale in the first half.

The United Arab Emirates’ market regulator advised “many” companies to delay initial public offerings this year because of market volatility, chief executive officer Abdullah Al Turaifi told reporters in Abu Dhabi earlier this month. Shares in the last company to list on the DFM, Dubai Parks & Resorts PJSC (DUBAIPAR), dropped 9 percent on the first trading day."

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Oil projects worth billions put on hold -

Oil projects worth billions put on hold -

"Billions of dollars of spending on oil and petrochemicals projects has been scrapped or put on hold, with Royal Dutch Shell and UK-based Premier Oil announcing the first big cost-cutting moves of 2015 after a brutal slide in crude prices.

The Anglo-Dutch oil major on Wednesday abandoned plans for one of the world’s biggest petrochemical plants, a $6.5bn project with Qatar Petroleum, blaming “the current economic climate prevailing in the energy industry”

Its move came as Premier said it would delay a final decision on whether to proceed with the $2bn Sea Lion project off the Falkland Islands until there was a recovery in oil prices. The company has also cut rates of pay for contractors and other freelance workers engaged in projects in the North Sea and southeast Asia and is attempting to renegotiate deals with suppliers to trim operating costs."

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Pouring oil on earnings - YouTube

Pouring oil on earnings - YouTube: ""

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