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Wednesday, 16 December 2015

MIDEAST STOCKS-Saudi shares rise on interest rate hike optimism, region up | News by Country | Reuters

MIDEAST STOCKS-Saudi shares rise on interest rate hike optimism, region up | News by Country | Reuters:

"Saudi shares rose on Wednesday as optimistic investors as an upbeat global backdrop helped bolster fragile regional investor sentiment.

Saudi bank shares rose, with the sector's measure up 3.5 percent on prospects of bank lending margins increasing if the U.S. Federal Reserve hikes interest rates.

The overall sentiment and performance however, is expected to be volatile until there is clarity on government expenditure when the kingdom announces its 2016 fiscal budget next week."



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How uncertainty shrouds Gulf stocks | GulfNews.com

How uncertainty shrouds Gulf stocks | GulfNews.com:

"The global financial markets are going through another phase of turbulence and where investors have suffered losses due to multiple factors fuelled by speculation. As a consequence, only the speculators get to generate outrageous profits in the stock and commodity markets.

Negative factors are also to the fore in the regional bourses, making them even more vulnerable to losses than other markets.

Uncertainty created by successive economic crises have hit major economies, including those of China and Brazil that had until now led global growth levels."



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China Has Something to Tell OPEC: Oil Prices Have Fallen Too Far - Bloomberg Business

China Has Something to Tell OPEC: Oil Prices Have Fallen Too Far - Bloomberg Business:

"The world’s biggest energy consumer may have a message for OPEC.
China’s decision to suspend fuel price cuts as crude continues its decline is sending a signal to the Organization of Petroleum Exporting Countries that prices are too low, according to a report from Sanford C. Bernstein & Co. The move gives oil a price floor around $38, according to the analysis.
“China’s decision to not cut refined product (gasoline, diesel) prices is a first,” analysts including Neil Beveridge wrote in the report. The move “sends a signal to OPEC that its largest customer (China) believes that oil prices are too cheap.”"



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MIDEAST STOCKS-Dubai leads Gulf recovery as global mkt gains boost mood | Reuters

MIDEAST STOCKS-Dubai leads Gulf recovery as global mkt gains boost mood | Reuters:

"Dubai led gains on Wednesday as Gulf bourses extended a recovery from multi-year lows hit earlier this week, with upbeat global markets helping bolster fragile regional investor sentiment.

Small to mid-sized stocks dominated trading volumes on Dubai index, which climbed 1.9 percent to 2,978 points, heading for a third straight gain since Sunday's two-year low.

The benchmark has technical support at 2,857, NBAD Securities said in a research note that also highlighted stiff resistance at 2,950, which the measure has now surpassed but has not conclusively broken above."



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Fed Ends Zero-Rate Era; Signals 4 Quarter-Point Increases in 2016 - Bloomberg Business

Fed Ends Zero-Rate Era; Signals 4 Quarter-Point Increases in 2016 - Bloomberg Business:

"The Federal Reserve raised interest rates for the first time in almost a decade, a widely telegraphed move that Chair Janet Yellen said would be followed by “gradual” tightening as officials watch for evidence of higher inflation.
The Federal Open Market Committee unanimously voted to set the new target range for the federal funds rate at 0.25 percent to 0.5 percent, up from zero to 0.25 percent. Policy makers separately forecast an appropriate rate of 1.375 percent at the end of 2016, the same as September, implying four quarter-point increases in the target range next year, based on the median number from 17 officials.
“The economic recovery has clearly come a long way, although it is not yet complete,” Yellen told a press conference following the conclusion of the FOMC’s two-day meeting in Washington. “The committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will continue to expand at a moderate pace and labor market indicators will continue to strengthen.”"



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Deutsche Bank Sees Record Year for Its Saudi Arabian Unit - Bloomberg Business

Deutsche Bank Sees Record Year for Its Saudi Arabian Unit - Bloomberg Business:

"Deutsche Bank AG expects its best-ever performance in Saudi Arabia this year even as oil slumps and the country’s economic growth slows, according to Jamal Al Kishi, chief executive officer of the lender’s local unit.
“2015 has been a record year for us in Saudi Arabia, mostly driven by structured financing and M&A work,” Al Kishi, head of Deutsche Securities Saudi Arabia, said in an interview in Riyadh, declining to give financial details. “For Deutsche Bank, the business in Saudi Arabia is one of the largest contributors to the Middle East and Africa sub-region, and we see that reflected in the continued investment and commitment here.”
The Frankfurt-based lender was among banks that arranged a 2 billion riyal ($530 million) bond for Riyadh’s Arab National Bank in September and participated in a $10 billion loan for oil producer Saudi Aramco in March. It’s also advising Aramco on a potential acquisition of some marketing, retail and refining assets from China National Petroleum Corp., people with knowledge of the matter said in October."



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What do low oil prices mean? | FT Markets - YouTube

What do low oil prices mean? | FT Markets - YouTube: ""



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MIDEAST STOCKS-Saudi Hollandi jumps on bonus share plan, small-caps lift Riyadh

MIDEAST STOCKS-Saudi Hollandi jumps on bonus share plan, small-caps lift Riyadh:

"Saudi Arabia stocks rose on Wednesday as Saudi Hollandi Bank surged after saying it would issue bonus shares, with investors over-betting on an announcement that should provide little material benefit to shareholders.

The lender's board wants shareholders to receive one bonus share for each held, a recommendation investors thought was more important than Hollandi's proposal to pay a cash dividend of 0.25 riyals ($0.06) per share for 2015, a quarter of what it paid for the previous year.

Hollandi shares rose 5.1 percent, having slumped to a 29-month low on Sunday."



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Saudi Arabia announces oil assistance, investments for Egypt - Politics - Egypt - Ahram Online

Saudi Arabia announces oil assistance, investments for Egypt - Politics - Egypt - Ahram Online:

"Saudi Arabia has pledged renewed support for Egypt's economy in the form of oil assistance and $8 billion in additional investments in the country.
The announcement came during Saudi Arabia's Deputy Crown Prince and Defense Minister Mohammed bin Salman visit to Cairo on Tuesday. He was quoted in the Saudi Press Agency as saying that King Salman ordered 30 billion riyals ($8 billion) in investments in Egypt, contribution to Egypt's needs for oil for a period of five years, and increased traffic in the Suez Canal by Saudi ships.

Saudi Arabia has supported Cairo with billions of dollars in aid, grants, and cash deposits to help buoy the country's economy after several years of political upheaval sent foreign reserves tumbling."



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Inflation inflection point - YouTube

Inflation inflection point - YouTube: ""



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Dubai Ports signs $1.9b agreement in China | GulfNews.com

Dubai Ports signs $1.9b agreement in China | GulfNews.com:

"His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, attended the signing of an agreement by Dubai Ports World (DPW) to invest $1.9 billion in two Chinese port projects.

DPW signed a $636 million agreement to build a smart container terminal in Quanzhou port which will be completed by 2017, and a $1.2 billion agreement for building a new port in the city of Tianjin that is expected to be completed by 2018.

The agreements were signed by Sultan Bin Sulayem, Chairman of DPW, and the Chairman of Quanzhou Port Group. Bin Sulayem said that the new port will have a capacity to handle 1.2 million containers every year, and will excel in quickly unloading containers and use electric power in order to reduce carbon emission and pollution."



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MIDEAST STOCKS-Dubai leads Gulf recovery as global mkt gains boost mood | Reuters

MIDEAST STOCKS-Dubai leads Gulf recovery as global mkt gains boost mood | Reuters:

"Dubai led gains on Wednesday as Gulf bourses extended a recovery from multi-year lows hit earlier this week, with upbeat global markets helping bolster fragile regional investor sentiment.

Small to mid-sized stocks dominated trading volumes on Dubai index, which climbed 1.9 percent to 2,978 points, heading for a third straight gain since Sunday's two-year low.

The benchmark has technical support at 2,857, NBAD Securities said in a research note that also highlighted stiff resistance at 2,950, which the measure has now surpassed but has not conclusively broken above."



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Spending in Sights as Saudi Set to Unveil Budget Amid Oil Slump - Bloomberg Business

Spending in Sights as Saudi Set to Unveil Budget Amid Oil Slump - Bloomberg Business:

"Its reserves sapped by more than a year of cheap oil, Saudi Arabia is expected to cut spending when it unveils its budget this month, while steering clear of the more painful reforms some economists argue are needed to ensure long-term financial stability.
The 2016 plan will be the first under King Salman and an economic council dominated by his increasingly powerful son. It follows a year in which a collapse in oil prices pushed the world’s largest crude exporter to spend down reserves and issue bonds for the first time since 2007.
Next year “is going to be a tough year for Saudi,” John Sfakianakis, a Riyadh-based Middle East director at Ashmore Group Plc, said by phone. If the budget “doesn’t create a buzz and confidence,” business sentiment could soon turn negative, he said.
"



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Saudi Arabia warned on oil strategy by financial crash economist Nouriel Roubini | The National

Saudi Arabia warned on oil strategy by financial crash economist Nouriel Roubini | The National:

"Saudi Arabia must stop acting as though the oil price decline is temporary, says Nouriel Roubini, the NYU economist credited with predicting the 2008 financial crisis.

“If you look at Saudi Arabia’s response to the low oil price, they’ve reacted to this shock as if it’s temporary rather than permanent,” Mr Roubini said, on the sidelines of the Arab Strategy Forum in Dubai on Tuesday.

“The main lesson is that this shock is permanent, it’s not transitory, therefore you have to adjust to it rather than just financing it.”"



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Middle East sovereign wealth funds set to reduce spending in overseas markets as oil prices plunge | The National

Middle East sovereign wealth funds set to reduce spending in overseas markets as oil prices plunge | The National:

"Middle East sovereign wealth funds are likely to cut down international spending next year as they tighten their belts to make up for falling oil prices.

According to new research from property broker JLL, Middle Eastern SWFs, known for buying large trophy buildings in London and other key European cities, signed deals to buy US$6.5 billion worth of property in the first nine months of this year – up from about $6bn recorded in the whole of last year and $7bn in 2013.

JLL predicted that the volume of investment from the Middle East funds set up to invest money away from country’s surpluses made from oil, would decline significantly next year as Gulf countries cut back spending because of the weak crude prices."



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