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Thursday, 30 June 2016

Saudi-Iran Conflict ‘Minefield’ for Japanese Oil Refiner Merger - Bloomberg

Saudi-Iran Conflict ‘Minefield’ for Japanese Oil Refiner Merger - Bloomberg:

"The conflict between Middle East oil suppliers Iran and Saudi Arabia is playing out between the founding family of one of Japan’s largest refiners and its board.

Idemitsu Kosan Co. agreed last July to buy a stake with 33.3 percent voting rights in Showa Shell Sekiyu KK from Royal Dutch Shell Plc, for 169 billion yen ($1.64 billion). Idemitsu has close ties with Iran and shouldn’t be associated with Showa Shell, in which state-run Saudi Arabian Oil Co. owns a stake, a lawyer for Idemitsu’s founding family said. The family “wants the company to let go of the stake,” he said.
Tensions between two of the world’s biggest oil producers have risen in the Middle East as both seek regional influence and compete for customers globally. The public disagreement between the Idemitsu family and the company’s board comes as Japan has revamped its rules for companies and investors placing more emphasis on independent directors and their duties to shareholders."



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MIDEAST STOCKS-Gulf mostly moves little, UAE outperforms | Reuters

MIDEAST STOCKS-Gulf mostly moves little, UAE outperforms | Reuters:

"Gulf stock markets moved generally little on Thursday with the approach of Eid Al Fitr holidays next week limiting activity, but United Arab Emirates bourses outperformed on the back of bank shares.

The Saudi index gave up modest early gains to close flat although the petrochemical sector was firm after oil prices jumped overnight. The sector's index climbed 0.4 percent.

In a sign of market caution, L'azurde Company for Jewellery , which had risen 7.6 percent when it listed on Wednesday, fell back 6.5 percent."



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The Slow-Motion Crisis in Saudi Arabia, in Two Minutes - Bloomberg

The Slow-Motion Crisis in Saudi Arabia, in Two Minutes - Bloomberg:



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Why Are U.A.E. Sovereign Funds Merging? - Bloomberg

Why Are U.A.E. Sovereign Funds Merging? - Bloomberg:




"Farouk Soussa, head of Middle East Economics at Citigroup, discusses the mega-merger of Abu Dhabi's largest sovereign investment funds, what it means for the region and which GCC countries are most vulnerable to low oil prices. He speaks to Yousef Gamal El-Din and Rishaad Salamat on "Bloomberg Markets Middle East." (Source: Bloomberg)"



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MIDEAST STOCKS-Gulf edges up on positive global trend | Reuters

MIDEAST STOCKS-Gulf edges up on positive global trend | Reuters:

"
Gulf stock markets edged up early on Thursday in line with a positive global trend for equities and oil prices, but trade was quiet before next week's long Eid al-Fitr holidays.

Saudi Arabia's index was up 0.2 percent in the first 15 minutes. Big petrochemical producer Saudi Basic Industries added 0.6 percent.

Shares in L'azurde Company for Jewellery, which rose 7.6 percent when they listed on Wednesday, edged down 0.3 percent. The stock, a play on the Saudi retail sector, has so far not performed as well as most new Saudi listings, as consumers' discretionary income has been hit by an economic slowdown caused by government austerity steps."



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Wednesday, 29 June 2016

Full Show: Bloomberg Markets Middle East (06/29) - Bloomberg

Full Show: Bloomberg Markets Middle East (06/29) - Bloomberg:




"Bloomberg Markets Middle East hosted by Yousef Gamal El-Din and Rishaad Salamt. Guests include Tim Fox, chief economist at Emirates NBD, and Mohamed Jameel Al Ramahi, chief executive officer at Masdar. (Source: Bloomberg)"



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MIDEAST STOCKS-Gulf pushes higher but volumes subdued | Reuters

MIDEAST STOCKS-Gulf pushes higher but volumes subdued | Reuters:

"Most stock markets in the Gulf nudged up on Wednesday, supported by recoveries in oil and global equity prices after the shock of Britain's vote to leave the European Union last week, but turnover was small before summer and Eid al Fitr holidays.

Riyadh's index added 0.3 percent, buoyed by the banking and telecommunications sectors, with phone operator Zain KSA climbing 1.3 percent to 7.95 riyals.

NCB Capital said in a note that strong revenue growth, improving market share and margin expansion were Zain KSA's main strengths."



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Saudi Aramco Leads Surge in Gulf Energy Loans After Oil’s Plunge - Bloomberg

Saudi Aramco Leads Surge in Gulf Energy Loans After Oil’s Plunge - Bloomberg:

"Saudi Arabian Oil Co. is leading an upsurge in borrowing by energy companies in the Middle East as they turn to banks and investors for cash after a slide in crude prices eroded their ability to pay for exploration and production.
Energy producers in the six-nation Gulf Cooperation Council more than doubled their borrowings in the second quarter from a year earlier to $8.9 billion, the most in 15 months, data compiled by Bloomberg show. Yanbu Aramco Sinopec Refining, a joint venture between Saudi Arabian Oil, known as Aramco, and China Petroleum & Chemical Corp. was the top borrower at $4.7 billion for refinancing. The figures include credits to companies involved in oil exploration, production and refining as well as natural gas services and processing.
Lending rose as state-run companies including Kuwait National Petroleum Co. took advantage of falling borrowing costs. The J.P. Morgan Middle East Composite Index of the region’s debt yield, an indication of borrowing rates, is at the lowest since November 2015. "



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Saudi Aramco sale heralds new market - FT.com

Saudi Aramco sale heralds new market - FT.com:

"The planned sale of up to 5 per cent of Saudi Arabia’s state oil producer could create not only the world’s largest publicly traded energy company but the biggest initial public offering of all time. More than this, however, the move also offers the rest of the world access to one of the kingdom’s prized industries — and could pave the way for greater internationalisation of the Saudi economy.
Saudi Aramco’s IPO is part of a transformation plan, envisaged by the powerbroker deputy crown prince Mohammed bin Salman, which seeks broad-based privatisation to boost employment and diversify the kingdom away from oil. But there is scepticism about whether the country is capable of such an overhaul when its people have grown accustomed to the state providing cradle-to-grave services."



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Authers' Note | Navigating markets post-Brexit - YouTube

Authers' Note | Navigating markets post-Brexit - YouTube: ""



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Mohammad Bin Zayed issues a resolution to merge Ipic and Mubadala | GulfNews.com

Mohammad Bin Zayed issues a resolution to merge Ipic and Mubadala | GulfNews.com:

"His Highness Shaikh Mohammad Bin Zayed, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council, has issued a resolution to merge International Petroleum Investment Company (Ipic) and Mubadala Development Company (Mubadala).

The resolution stipulated that a joint committee be created and assigned with the responsibility of merging the businesses of the two companies. The joint committee will be chaired by His Highness Shaikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, with Khaldoon Khalifa Al Mubarak serving as Vice Chairman and the membership of Suhail Mohamed Faraj Al Mazrouei, Hamad Al Hurr Al Suwaidi, and the Chairman of the Abu Dhabi Department of Finance.

Integrating the two entities would create greater benefits and enhanced economic value to the Government of Abu Dhabi. The combined entity will realise synergies and growth in multiple sectors including the energy and utilities sector, technology, aerospace, industry, health care, real estate and financial investments."



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MIDEAST STOCKS-Gulf firms in early trade; Saudi's L'azurde surges on listing | Reuters

MIDEAST STOCKS-Gulf firms in early trade; Saudi's L'azurde surges on listing | Reuters:

"Major stock markets in the Gulf firmed in early trade on Wednesday, supported by recoveries in oil and global equity prices after the shock of Britain's vote to leave the European Union last week.

Riyadh's index added 0.7 percent in the first 45 minutes of trade, buoyed by the petrochemcial sector as oil prices rose back towards $50 a barrel. Brent futures were up 1.0 percent in Asian trade.

Shares in retailer L'azurde Company for Jewellery surged their 10 percent daily limit to 40.70 riyals as they listed in Riyadh. The company sold 12.9 million shares in its initial public offer at 37.0 riyals per share."



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Every Banker in the World Is Chasing the Saudi Aramco Deal - Bloomberg

Every Banker in the World Is Chasing the Saudi Aramco Deal - Bloomberg:

"When news broke in January that Saudi Arabia was considering an initial public offering of its state-owned oil company, the first reaction on Wall Street was shock. Then calls began pouring into Dubai -- the Middle East’s financial hub -- from senior bankers in London and New York. 
Investment banks around the world are clamoring to join what promises to be a bonanza, and not just the IPO of Saudi Arabian Oil Co., or Aramco, which could be valued at upward of $2 trillion. The kingdom is planning to sell hundreds of state assets to bolster its finances and reduce its dependence on oil. That includes as much as $15 billion of bonds.
Saudi Arabia looks even more promising with investment banking in a global slump and Britain’s vote to exit the European Union set to deter deal-making for months to come."



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Tuesday, 28 June 2016

MIDEAST STOCKS-Gulf mixed in quiet trade, IMF hopes don't aid Egypt much | Reuters

MIDEAST STOCKS-Gulf mixed in quiet trade, IMF hopes don't aid Egypt much | Reuters:

"Gulf stocks were mixed in quiet trade on Tuesday as global markets regained some strength after the shock of the British vote to leave the European Union. Signs of progress toward an International Monetary Fund loan failed to lift Egypt much.

With oil prices off their lows, Gulf investors feel Brexit may have little impact on their economies, although weakness in the pound and euro could affect Dubai's real estate and tourism sectors. Brent oil was up 2.7 percent to $48.41 a barrel as Gulf markets traded on Tuesday.

But Ramadan and summer holidays are limiting activity and deterring Gulf investors from taking large positions given the risk of more global market instability. Saudi Arabia's market will be closed throughout next week for Eid al-Fitr."



'via Blog this'

Full Show: Bloomberg Markets Middle East (06/28) - Bloomberg

Full Show: Bloomberg Markets Middle East (06/28) - Bloomberg:




"Bloomberg Markets Middle East hosted by Yousef Gamal El-Din and Rishaad Salamat. Guests include Ray Attrill, global co-head of FX strategy at NAB Global, and Mark Martin, founder and chief executive officer at Martin Consulting. (Source: Bloomberg)"



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Brexit's political upheaval | FT Comment - YouTube

Brexit's political upheaval | FT Comment - YouTube: ""



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Iran's Plans For its Oil Fields - Bloomberg

Iran's Plans For its Oil Fields - Bloomberg:




"Iran plans to issue tenders to develop its oil fields this summer as the government is expected to approve a new model oil contract designed to attract investors “in a short amount of time,” Oil Minister Bijan Namdar Zanganeh said, according to an interview published by the Iranian Students News Agency. Bloomberg's Anthony DiPaola reports on "Bloomberg Markets Middle East" with Rishaad Salamat."



'via Blog this'

MIDEAST STOCKS-Gulf mixed in quiet trade as global markets stabilise | Reuters

MIDEAST STOCKS-Gulf mixed in quiet trade as global markets stabilise | Reuters:

"Stock markets in the Gulf were mixed in quiet trade early on Tuesday as global markets stabilised following the shock of Britain's vote to leave the European Union.

With oil prices rebounding, investors feel Brexit may have little impact on Gulf economies, although weakness in the pound and euro could affect Dubai's real estate and tourism sectors. Brent oil was up 1.7 percent to $47.95 a barrel in Asian trade.

Ramadan and summer holidays are limiting activity, however, and deterring investors from taking large positions given the risk of more global market instability. Saudi Arabia's market will be closed throughout next week for Eid al-Fitr."



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Singapore Air’s India Unit to Challenge Gulf Carriers’ Dominance - Bloomberg

Singapore Air’s India Unit to Challenge Gulf Carriers’ Dominance - Bloomberg:

"Within weeks of India easing aviation rules, Singapore Airlines Ltd.’s local venture is charting a course to take on carriers from the Middle East. It’s counting on a surge in international traffic from the world’s fastest growing major air-travel market.
Vistara, in which the city-state’s flag carrier owns 49 percent, is considering buying or leasing wide bodied aircraft for long-haul routes and will seek funds from its owners to finance the purchase, the company’s Chief Executive Officer Phee Teik Yeoh said in an interview June 24. Vistara, which has 11 planes in its fleet and is co-owned by India’s Tata Sons Ltd., needs at least nine more to fly abroad under the relaxed policy.

The number of international travelers from India is poised to grow 10-fold to 500 million by 2050, according to a CAPA Centre of Aviation study that was commissioned by Vistara. The carrier’s plans may be the start of a fresh challenge for Emirates Airline and Etihad Airways PJSC that have long been the biggest foreign carriers in India and have, along with Air India Ltd. and Jet Airways India Ltd., dominated the market for offshore travel."



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Monday, 27 June 2016

Afkar Capital launches first ETF under new UAE regulations | GulfNews.com

Afkar Capital launches first ETF under new UAE regulations | GulfNews.com:

"Afkar Capital Limited, the Abu Dhabi-based asset management firm has launched the Afkar S&P UAE UCITS ETF, the first liquid, fully tradeable and transparent exchange-traded fund listed under the UAE’s new regulations.

The exchange traded fund (ETF) will list on the Dubai Financial Market (DFM) on Wednesday June 29, under the symbol ‘UAETF’ and has been designed to replicate the S&P UAE BMI Liquid 20/35 Capped Index.

The index includes the largest stocks by capitalisation in the UAE, providing exposure to the UAE economy. There are no entry or exit fees in the secondary market.

"



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MIDEAST STOCKS-Banks hold back Saudi as nearby markets tick higher | Reuters

MIDEAST STOCKS-Banks hold back Saudi as nearby markets tick higher | Reuters:

"Banks were the main drag on Saudi Arabia's stock market on Monday as investors grew wary before second-quarter financial results, while most other Middle East bourses recovered some of the losses from the sell-off after Britain's Brexit vote.

Riyadh's benchmark fell by 0.2 percent as banking shares were sold in the final hour of trade. Al Rajhi, the sector's largest Islamic bank, lost 2.2 percent to 56.50 riyals and the sector's sub-index dropped 0.8 percent.

A note from Riyad Capital said that tight liquidity and pressure on deposits are among the biggest challenges facing the banking sector this year."



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Full Show: Bloomberg Markets Middle East (06/27) - Bloomberg

Full Show: Bloomberg Markets Middle East (06/27) - Bloomberg:




"Bloomberg Markets Middle East hosted by Yousef Gamal El-Din and Rishaad Salamat. Guests include Nigerian Oil Minister Emmanuel Ibe Kachikwu, Mark Tinker, Asia head at AXA IM Framlington Equities, Saji Sam, global energy partner at Oliver Wyman, and Alex Guy, founder at Eshara Capital.(Source: Bloomberg)"



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Brexit Fallout: Do Gulf Markets Have Further to Fall? - Bloomberg

Brexit Fallout: Do Gulf Markets Have Further to Fall? - Bloomberg:




"Middle Eastern stocks followed declines across global markets as investors sought answers to how Britain’s decision to leave the European Union will affect economies in the region. Dubai’s DFM General Index lost 3.3 percent, the most since January, as Emaar Properties PJSC tumbled 4.7 percent. Saudi Arabia’s Tadawul All Share Indexfell 1.1 percent as more than 85 percent of its members retreated. The Bloomberg GCC 200 Index, a gauge of the biggest and most liquid stocks in the region, dropped 1.3 percent, the most in a month. Eshara Capital Founder Alex Guy discusses with Bloomberg's Tracy Alloway on "Bloomberg Markets Middle East.""



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MIDEAST STOCKS-Gulf bounces back as investors buy on dips | Reuters

MIDEAST STOCKS-Gulf bounces back as investors buy on dips | Reuters:

"Major stock markets in the Gulf rebounded in early trade on Monday, recovering from the immediate aftermath of Britain's vote to leave the European Union, as local retail investors and some institutions scooped up shares on dips.

Dubai's index, which had sunk 3.3 percent on Sunday in its initial reaction to the vote, rose 1.0 percent in the first hour on Monday with over nine-tenths of shares advancing.

Small and mid-sized shares favoured by local retail investors were the most traded with Islamic insurer Dar Al Takaful rocketing its 15 percent daily limit."



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Iran’s short-lived oil export boom is fizzling out. Why? | GulfNews.com

Iran’s short-lived oil export boom is fizzling out. Why? | GulfNews.com:

"Five months after sanctions on Iran were eased, the rapid rise in the country’s oil production and exports appears to be ending as quickly as it began.

Any slowdown in Iranian output will hasten the rebalancing of global oil supply and demand, adding weight to the assertion by Saudi Arabia’s oil minister Khalid Al Falih that “the oversupply has disappeared.”

Iran’s observed crude oil exports, which exceeded 2 million barrels a day in both April and May, slipped by almost 20 per cent in the first three weeks of June."



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Sunday, 26 June 2016

'Risky trinity' requires urgent global policy action, BIS says | Reuters

'Risky trinity' requires urgent global policy action, BIS says | Reuters:

"Global economic policy urgently needs rebalancing, the Bank for International Settlements (BIS) said on Sunday, as the world faces a "risky trinity" of high debt, low productivity growth and dwindling firepower at the world's big central banks.

The BIS, an umbrella body for major central banks, said in its annual report that the global economy was highly exposed even before Thursday's vote by Britain to leave the European Union.

"There are worrying developments, a sort of "risky trinity", that bear watching," said the head of the BIS monetary and economic department, Claudio Borio."



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Full Show: Bloomberg Markets Middle East (06/26) - Bloomberg

Full Show: Bloomberg Markets Middle East (06/26) - Bloomberg:




"Bloomberg Markets Middle East hosted by and Yousef Gamal El-Din and Anna Edwards. Guests include Majid Jafar, chief executive officer at Crescent Petroleum and Dino Kronfol, chief investment officer at Frankin Templeton Investments ME. (Corrects date of show in headline and guests in description.) (Source: Bloomberg)"



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MIDEAST STOCKS-Gulf sinks on Brexit but comes off lows; Egypt hardest hit | Reuters

MIDEAST STOCKS-Gulf sinks on Brexit but comes off lows; Egypt hardest hit | Reuters:

"Middle East stocks fell sharply on Sunday because of Britain's vote to leave the European Union but Gulf bourses came well off their lows. Egypt was hardest hit because of concern that fund inflows into the country could shrink further.

Most of the Gulf does not depend heavily on foreign capital or non-oil exports, so the main threat to it from Brexit is that slower growth in Europe could push down oil prices; Brent oil sank 4.9 percent to $48.42 a barrel on Friday.

Monica Malik, chief economist at Abu Dhabi Commercial Bank, said that among the six Gulf Cooperation Council economies, she expected the greatest impact of a weak pound and euro to be felt in the United Arab Emirates, because its large tourism and real estate sectors were vulnerable to exchange rate moves."



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MIDEAST STOCKS-Saudi falls sharply on Brexit, Arabian Pipes stays strong | Reuters

MIDEAST STOCKS-Saudi falls sharply on Brexit, Arabian Pipes stays strong | Reuters:

"Saudi Arabia's stock market fell sharply at the opening on Sunday in response to Britain's decision to leave the European Union, but blue chips held up relatively well and the biggest losses were in smaller speculative stocks favoured by local retail investors.

The main index was down 3.7 percent after five minutes of trade. Among speculative stocks, Saudi Fisheries tumbled 6.2 percent.

But petrochemical blue chip Saudi Basic Industries fell only 2.4 percent and National Commercial Bank was down 2.8 percent, suggesting institutional investors, who focus on such stocks, were not selling as heavily."



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MIDEAST STOCKS-Gulf stocks fall sharply in early trade, blue chips outperform | Reuters

MIDEAST STOCKS-Gulf stocks fall sharply in early trade, blue chips outperform | Reuters:

"Gulf stock markets fell sharply in early trade on Sunday in response to the global market turmoil caused by Britain's decision to leave the European Union.

Dubai's index was down 4.6 percent after 10 minutes to 3,211 points, near technical support on the May low of 3,197 points.

Speculative stocks favoured by local retail investors were hit hardest, with Arabtec losing 6.4 percent. Blue chips such as Emaar Properties, down 3.5 percent, fared relatively well."



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Saturday, 25 June 2016

Saudi Arabia, UAE see Brexit having little impact on their financial institutions | Reuters

Saudi Arabia, UAE see Brexit having little impact on their financial institutions | Reuters:

"Two Gulf states said on Saturday they did not anticipate their financial institutions to be greatly affected as a result of Britain's vote to exit the European Union.

Saudi Arabia, the world's largest oil exporter and OPEC heavyweight, said it had already made some adjustments to assets denominated in sterling and euros in anticipation of the vote.

The Kingdom had been monitoring the situation and made the changes as a "precautionary stance," Saudi Arabian Monetary Authority Governor Ahmed al-Kholifey was quoted as saying by state news agency SPA."



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Hedge Fund Still Wants Its Tax-Avoidance Profits - Bloomberg View

Hedge Fund Still Wants Its Tax-Avoidance Profits - Bloomberg View:

"Here's a passage from a lawsuit:

Mr Patel and Mr Barenys confirmed that MLI would be able to generate a profit for Lycalopex from the DAS, but asked whether a 75% return rather than the 100% return originally proposed (i.e. a profit over the first year of $15 million rather than $20 million) would be acceptable. Mr Patel said words to the effect that: "I can't do $20 million, but I'll definitely get you to $15 million". Mr Devonald and Mr Williams said they would consider this request and revert to Mr Patel and Mr Barenys. The same day, they sought and obtained approval for this reduced profit commitment. They relayed that approval to MLI the following day.
Here's a link to the lawsuit, but don't click it yet. First, I want you to guess: What kind of lawsuit is it? Raj Patel and Angel Barenys of MLI came to Andrew Devonald and Grant Williams of Lycalopex with good news and bad news. The bad news was that MLI couldn't guarantee Lycalopex a one-year profit of $20 million, or 100 percent of its original investment (of $20 million). The good news was that MLI could guarantee Lycalopex a $15 million profit, or 75 percent. So: Who are these people, and what were they up to?"



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Brexit: What next for investment banks - YouTube

Brexit: What next for investment banks - YouTube: ""



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City firms may lose 'prized' EU access, says French banker - BBC News

City firms may lose 'prized' EU access, says French banker - BBC News:

"London's financial institutions risk losing their prized access to the EU if the UK leaves the single market, said France's top central banker.
Francois Villeroy de Galhau said London's banks would lose their "financial passport", which allows them to trade freely in the EU.
Earlier, the head of the Eurogroup of finance ministers Jeroen Dijsselbloem said banks would move outside the UK.
"



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Brexit: Wolf on economic forecast | FT Comment - YouTube

Brexit: Wolf on economic forecast | FT Comment - YouTube: ""



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The big issues still to be settled about Britain’s post-EU existence - FT.com

The big issues still to be settled about Britain’s post-EU existence - FT.com:

"The UK has voted to strike a new course outside the EU in one of the most momentous decisions in the country’s postwar history. Now the real questions begin.
Even as the reality sinks in that Britain voted to leave the bloc in Thursday’s In/Out referendum on membership, the consequences of that vote — what it means for trade, immigration and growth — have yet to be determined.
The FT looks at some of the big issues still to be settled about Britain’s post-EU existence."



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Brexit: what next for business? | FT Business - YouTube

Brexit: what next for business? | FT Business - YouTube: ""



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Brexit: What next for markets? | FT Markets - YouTube

Brexit: What next for markets? | FT Markets - YouTube: ""



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Thursday, 23 June 2016

MIDEAST STOCKS-Gulf nudges up in thin trade; Egypt bounces | Reuters

MIDEAST STOCKS-Gulf nudges up in thin trade; Egypt bounces | Reuters:

"Most stock markets in the Gulf made small gains on Thursday, but trading volumes were thin because of uncertainty over the result of Britain's vote on whether to stay in the European Union.

In Saudi Arabia, the main stock index closed up 0.3 percent with much activity focusing on insurance stocks. The sector's sub-index added 0.6 percent while the telecommunications sector rose 0.4 percent.

Arabian Pipes jumped 10 percent, its daily limit, for a third straight day. On Monday the company announced it had been awarded a contract worth 383 million riyals ($102.1 million) from Saudi Aramco, the state oil company, to supply it with welded steel pipes."



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Peugeot-Citroen back on the road in Iran with deal to build cars | World news | The Guardian

Peugeot-Citroen back on the road in Iran with deal to build cars | World news | The Guardian:

"The French carmaker Peugeot-Citroen (PSA) has announced its return to Iran under a €400m joint venture with its old partner Iran Khodro in Tehran that has been made possible by the lifting of nuclear sanctions.

At the same time, Boeing has confirmed reports it will start selling airliners to Iran following the nuclear accord reached in 2015.

The first cars produced under the PSA venture are set to be sold in February, with the aim of producing 200,000 vehicles a year by 2018."



'via Blog this'

MIDEAST STOCKS-Gulf soft ahead of British EU vote | Reuters

MIDEAST STOCKS-Gulf soft ahead of British EU vote | Reuters:

"Stock markets in the Gulf were mostly soft in thin volumes in early trade on Thursday ahead of Britons' vote to decide whether to stay in the European Union.

Dubai's index edged down 0.3 percent, with stocks that had led advances over the past week pulling back. Dubai Parks and Resorts dropped 1.3 percent, but is still up 42 percent year-to-date.

In Abu Dhabi, the index was down 0.4 percent. National Bank of Abu Dhabi retreated 0.5 percent while Gulf Bank was flat; the shares soared earlier this week after the banks said they were in merger talks."



'via Blog this'

Wednesday, 22 June 2016

New Saudi oil minister signals end to glut - FT.com

New Saudi oil minister signals end to glut - FT.com:

"Saudi Arabia’s new oil minister has signalled an end to the worst of the oil glut and indicated the Opec kingpin is preparing to reassert a degree of control over the market after two years of letting prices fall.
During a visit to the US, Khalid al Falih said that the kingdom would be “expected” to start balancing supply and demand as the market recovers, with the world’s largest oil exporter once again assuming its role as the global swing producer."



'via Blog this'

MIDEAST STOCKS-Gulf mixed before Brexit vote, Egypt resumes downtrend | Reuters

MIDEAST STOCKS-Gulf mixed before Brexit vote, Egypt resumes downtrend | Reuters:

"Gulf stock markets were mixed in narrow ranges and moderate volumes on Wednesday, with investors cautious before Britain's European Union referendum. Egypt resumed sliding after it broke major technical support earlier this week.

Saudi Arabia's index dropped 0.3 percent. Some banks were weak, with Saudi Hollandi Bank down 2.8 percent. Saudi Basic Industries, the Gulf's largest listed petrochemical producer, added 0.3 percent as oil prices rose.

Arabian Pipes jumped its 10 percent daily limit for a second straight day in its heaviest trading since early 2005."



'via Blog this'

Brexit Breakdown: The final countdown | FT Comment - YouTube

Brexit Breakdown: The final countdown | FT Comment - YouTube: ""



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Five takeaways from Brexit campaigns | FT World - YouTube

Five takeaways from Brexit campaigns | FT World - YouTube: ""



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Brexit and markets: what to watch | Short View - YouTube

Brexit and markets: what to watch | Short View - YouTube: ""



'via Blog this'

MIDEAST STOCKS-Firmer oil prices support Gulf bourses in early trade | Reuters

MIDEAST STOCKS-Firmer oil prices support Gulf bourses in early trade | Reuters:

"Firmer oil prices supported stock markets in the Gulf in early trade on Wednesday but trading volumes were thin as most investors stayed on the sidelines before Britain's in-or-out European Union referendum on Thursday.

Saudi Arabia's benchmark added 0.5 percent in the first 20 minutes as Brent crude held over $50 a barrel. Saudi Basic Industries, the Gulf's largest listed petrochemical producer, added 0.9 percent and the banking sub-index was up 0.5 percent.

In Abu Dhabi, Union National Bank jumped 5.1 percent, heading for a second day of strong gains after Arqaam Capital said in a note on Tuesday that following the proposed merger between National Bank of Abu Dhabi and First Gulf Bank, "we expect UNB to be next"."



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Tuesday, 21 June 2016

Boeing confirms signing jetliner deal with Iran Air | Reuters

Boeing confirms signing jetliner deal with Iran Air | Reuters:

"Boeing Co signed an agreement to sell jetliners to Iran Air, the company said on Tuesday, confirming Iranian statements about the historic deal to sell 100 jetliners to the airline.

The tentative agreement, which marks Boeing's first sale to Iran since its Islamic Revolution in 1979, resulted from the nuclear accord reached with the country last year.

The agreement brings more work to Boeing's factories in Washington state and South Carolina, and helps the aerospace and defense company catch up with a $27 billion, 118-plane order Iran placed with Airbus in January."



'via Blog this'

MIDEAST STOCKS-Gulf mostly firm; Egypt regains some ground | Reuters

MIDEAST STOCKS-Gulf mostly firm; Egypt regains some ground | Reuters:

"Most Gulf bourses firmed on Tuesday as fresh merger speculation moved stocks in Abu Dhabi, though Saudi Arabia's stock market lost steam as oil prices fell back. Egypt's bourse partially recovered from sharp losses but remained technically bearish.

National Bank of Abu Dhabi pulled back 1.7 percent after surging 20 percent in the previous two days on news of its merger talks with First Gulf Bank. FGB closed flat.

But Union National Bank added 4.6 percent after Arqaam Capital said in a note that after the proposed merger between NBAD and FGB, "we expect UNB to be next"."



'via Blog this'

Full Show: Bloomberg Markets Middle East (06/21) - Bloomberg

Full Show: Bloomberg Markets Middle East (06/21) - Bloomberg:




"Bloomberg Markets Middle East hosted by Manus Cranny and Rishaad Salamat. Guests include Sanjay Uppal, chief executive officer at StraitsBridge, Angus Nicholson, market analyst at IG, Sebastien Henin, head of asset management at The National Investor, and Li Ka-Shing, chairman at CK Hutchison. (Source: Bloomberg)"



'via Blog this'

MIDEAST STOCKS-Gulf firms in early trade but NBAD cools | Reuters

MIDEAST STOCKS-Gulf firms in early trade but NBAD cools | Reuters:

"Stock markets in the Gulf were firm early on Tuesday, supported by opinion polls and bookmakers' odds suggesting the "Remain" camp might win Britain's referendum on European Union membership this week, and as oil held over $50 a barrel.

In Abu Dhabi, National Bank of Abu Dhabi pulled back 1.7 percent after surging 20 percent in the previous two days on news of its merger talks with First Gulf Bank.

But FGB edged up 0.4 percent, and Union National Bank added 2.1 percent after Arqaam Capital said in a note that after the proposed merger between NBAD and FGB, "we expect UNB to be next"."



'via Blog this'

What You Need to Know About Abu Dhabi’s Plan for a Megabank: Q&A - Bloomberg

What You Need to Know About Abu Dhabi’s Plan for a Megabank: Q&A - Bloomberg:

"National Bank of Abu Dhabi PJSC and First Gulf Bank PJSC, the two largest banks in the oil-rich emirate of Abu Dhabi, said on Sunday that they’re in early stage merger talks. A combination would create a regional powerhouse with assets of about $170 billion and a larger market valuation than Deutsche Bank AG and Credit Suisse Group AG.
What’s happened so far?
Bloomberg News was first to report on Thursday that the banks were considering a potential merger. On Sunday, in a brief statement to the Abu Dhabi stock exchange, the lenders said they’d formed working groups composed of senior executives to explore a potential combination. NBAD surged by the maximum daily limit on Sunday on speculation that the deal would effectively be a takeover of NBAD by FGB. Other bank stocks rallied."



'via Blog this'

Monday, 20 June 2016

MIDEAST STOCKS-Gulf mostly firm, NBAD continues climb | Reuters

MIDEAST STOCKS-Gulf mostly firm, NBAD continues climb | Reuters:

"Most Gulf stock markets were firm in early trade on Monday while National Bank of Abu Dhabi (NBAD) continued to surge in response to its merger talks with First Gulf Bank.

Shares in NBAD climbed 7.6 percent after surging their 15 percent daily limit on Sunday, while FGB was down 2.7 percent after an 11.5 percent jump in the prior session. Many investors are assuming that any share swap in a merger would favour NBAD holders.

Other Abu Dhabi banks also rose sharply on Sunday on speculation about more potential mergers in the over-crowded banking sector, but that speculation eased on Monday. Abu Dhabi Islamic Bank fell back 3.9 percent after gaining 4.6 percent on Sunday."



'via Blog this'

Full Show: Bloomberg Markets Middle East (06/12) - Bloomberg

Full Show: Bloomberg Markets Middle East (06/20) - Bloomberg:




"Full episode of "Bloomberg Markets Middle East." Guests include Sheila Shadmand, partner-in-charge Dubai at Jones Day and Jaap Meijer, managing director at Arqaam Capital. (Source: Bloomberg)"



'via Blog this'

Is Oil Running Out of Steam? - Bloomberg

Is Oil Running Out of Steam? - Bloomberg:




"Oman Investment Fund Chief Economist Fabio Scacciavillani discusses the energy markets. He speaks with Manus Cranny and Rishaad Salamat on "Bloomberg Markets Middle East." (Source: Bloomberg)"



'via Blog this'

Sunday, 19 June 2016

Iran’s Esfahan Steel Seeks Buyers Amid Plan to Boost Production - Bloomberg

Iran’s Esfahan Steel Seeks Buyers Amid Plan to Boost Production - Bloomberg:

"Esfahan Steel Co., Iran’s third-largest maker of the metal, is seeking buyers amid plans to boost production as the nation rebuilds after years of international sanctions that hurt its economy.
Companies in South Korea and Luxembourg are interested in taking a stake, Masoud Gholampour, research and and marketing manager at Novin Investment Bank, said in an interview in Tehran. Novin is advising the government in the sale. Iran and the Steel Pensioners’ Fund for retired Iranian steel workers want to sell a 73 percent stake.
Esfahan Steel aims to boost production to 3.2 million metric tons in the year ended March 2017 from 2.4 million tons a year earlier, according to Mojtaba Fereydoni, an investment manager at Esfahan Steel in Esfahan in central Iran. Output had declined 4 percent a year earlier as economic growth slowed because of low oil prices, he said.
"



'via Blog this'

MIDEAST STOCKS-Abu Dhabi banks soar on merger talks; rate rise hits Egypt | Reuters

MIDEAST STOCKS-Abu Dhabi banks soar on merger talks; rate rise hits Egypt | Reuters:

"Shares in Abu Dhabi banks soared on Sunday after National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) confirmed they were in merger talks. Other Gulf stock markets were mixed while an interest rate increase dragged Egypt down.

NBAD and FGB confirmed in a brief statement they were discussing a merger or combination of their businesses, in what would create one of the largest banks by assets in the Middle East and Africa.

Many analysts said it was too early to take positions in the stocks before details were known."



'via Blog this'

Deloitte banned from audit work for two years by Saudi Arabia’s market regulator | The National

Deloitte banned from audit work for two years by Saudi Arabia’s market regulator | The National:

"Saudi Arabia’s market regulator said it had barred the local unit of New York accountancy firm Deloitte & Touche from providing accounting services in the kingdom for two years for breaching rules on accumulated losses.

The move by the Capital Market Authority’s (CMA) Committee for the Resolution of Securities Disputes stepped up penalties already imposed on Deloitte over a long-running case involving its work for troubled Saudi contractor Mohammed Al Mojil Group (MMG).

The CMA previously suspended Deloitte from doing auditing work for listed firms in the kingdom for two years while the case was pending, beginning June 1, 2015."



'via Blog this'

Iran, Boeing reach deal on purchase of 100 planes | GulfNews.com

Iran, Boeing reach deal on purchase of 100 planes | GulfNews.com:

"Iran and US aerospace giant Boeing have reached an agreement for the purchase of 100 aircraft to renew the country's ageing fleet, the head of Tehran's civil aviation authority announced on Sunday.

"We have 250 planes in the country, 230 need to be replaced," said Ali Abedzadeh, the head of the civil aviation body, adding that the deal still needed approval from the US government.

In an interview with the Iran daily newspaper, Abedzadeh said there could be no precise timeline for the contract without US Treasury permission."



'via Blog this'

Abu Dhabi Merger Seen Just the Start as Banks Face Slower Growth - Bloomberg

Abu Dhabi Merger Seen Just the Start as Banks Face Slower Growth - Bloomberg:

"A potential merger between two of Abu Dhabi’s biggest banks may just be the start of consolidation in the industry.

That’s according to analysts from EFG-Hermes Holding SAE and Emirates NBD PJSC, which say the United Arab Emirates needs more tie-ups because too many banks are serving a relatively small population of 9 million and growth prospects are limited. About 50 local and international lenders face declining government spending, slowing economies and falling asset quality after a slump in oil, the region’s principal export.

In what would be the country’s first major banking merger in almost a decade, National Bank of Abu Dhabi PJSC and First Gulf Bank PJSC said on Sunday that they’re in talks on a potential deal. Senior executives from the two banks are reviewing the commercial, structural and legal aspects of a possible combination, according to a statement. "



'via Blog this'

MIDEAST STOCKS-Abu Dhabi banks rocket on merger talks; Gulf mostly up | Reuters

MIDEAST STOCKS-Abu Dhabi banks rocket on merger talks; Gulf mostly up | Reuters:

"Shares in Abu Dhabi banks soared early on Sunday on news that National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) were in merger talks, while most other stock markets in the Gulf were firm.

NBAD and FGB confirmed in a brief statement on Sunday that they were discussing a merger or combination of their businesses, in what would create the largest bank by assets in the Middle East and Africa.

Many analysts said it was too early to take positions in the stocks before details were known. Some said a merger could benefit shareholders of both banks - Arqaam Capital said FGB would benefit from a stronger wholesale banking operation while NBAD was underepresented in retail banking - but HSBC predicted a pure merger would benefit only NBAD, while a merger through acquisition would destroy shareholder value at both banks."



'via Blog this'

Credit Suisse, UBS Said to Work With Abu Dhabi Banks on Merger - Bloomberg

Credit Suisse, UBS Said to Work With Abu Dhabi Banks on Merger - Bloomberg:

"Credit Suisse Group AG and UBS Group AG, which have scaled back from the Gulf since the financial crisis, are advising on the potential merger of Abu Dhabi’s two largest banks, according to people with knowledge of the matter.
Credit Suisse is advising National Bank of Abu Dhabi PJSC on the combination while UBS is working with First Gulf Bank PJSC, said the people, asking not to be identified because the information is private. Credit Suisse, NBAD and FGB declined to comment, while a spokesman for UBS was not immediately available for comment."



'via Blog this'

Dubai group agrees to buy control of Kuwait's Americana | Reuters

Dubai group agrees to buy control of Kuwait's Americana | Reuters:

"An investment group led by prominent Dubai businessman Mohamed Alabbar has agreed to buy a majority stake in Kuwait Food Co (Americana) from the Kharafis, a wealthy Kuwaiti merchant family, the group said on Saturday.

Under a legally binding agreement with Al Khair National for Stocks and Real Estate, controlled by the Kharafis, all of Al Khair's Americana shares will be bought at 2.650 dinars each, a 26 percent premium over their last market price, the group, named Adeptio, said in a statement.

Al Khair had been offering a 69 percent stake in Americana, which owns the Middle East franchises for fast food chains KFC and Pizza Hut and also produces branded consumer foods. The stake had been up for sale since early 2014. "



'via Blog this'

Saturday, 18 June 2016

Iran awaits investment dividend post-nuclear sanctions - FT.com

Iran awaits investment dividend post-nuclear sanctions - FT.com:

"When more than 300 German companies visited Iran last month, their interest in the Islamic Republic stretched across myriad sectors, from machinery and healthcare, to the auto industry and energy.
They were just the latest batch of European, Asian and other foreign companies that have beaten a path to Iran since the lifting of sanctions as they look to tap into the potential of the oil-producing nation and its 78m population. But while provisional agreements worth billions of dollars have been reached, there is mounting frustration in Iran that they have yet to materialise into completed deals on the ground."



'via Blog this'

Turbulent Turkey funds depleted by 60% - FT.com

Turbulent Turkey funds depleted by 60% - FT.com:

"The assets of the two largest funds focused on the Turkish stock market have fallen more than 60 per cent since their 2013 peak, after years of turbulence at home and abroad for the $800bn economy.
The assets under management of HSBC Global Investment’s Turkey fund have dropped by more than two-thirds to $130m, while the country-focused fund of East Capital, the emerging-market specialist, has lost more than 80 per cent, falling to $110m, according to the companies."



'via Blog this'

Friday, 17 June 2016

FGB May Pay 14% Premium in Abu Dhabi Bank Deal, Arqaam Says - Bloomberg

FGB May Pay 14% Premium in Abu Dhabi Bank Deal, Arqaam Says - Bloomberg:

"First Gulf Bank PJSC could pay a premium of as much as 14 percent to buy National Bank of Abu Dhabi PJSC in a deal that would combine two of the biggest banks in the Middle East, according to a report by Arqaam Capital Ltd.
NBAD, which is 69 percent owned by sovereign wealth fund Abu Dhabi Investment Council, would play the role of a junior partner in a deal, analyst Jaap Meijer said in a research report Thursday. Meijer said a combination between the two may also pressure other banks in the country to merge.
NBAD and FGB are exploring a potential combination to create the largest lender in the region, people familiar with the matter said Thursday. The deal would create a lender with assets of about $170 billion, surpassing those of Qatar National Bank SAQ. NBAD and FGB declined to comment on a tie-up."



'via Blog this'

Thursday, 16 June 2016

Abu Dhabi Banks Said in Talks to Form Biggest Mideast Lender - Bloomberg

Abu Dhabi Banks Said in Talks to Form Biggest Mideast Lender - Bloomberg:

"National Bank of Abu Dhabi PJSC and First Gulf Bank PJSC are exploring a potential merger to create the largest lender in the Middle East, according to people with knowledge of the matter.
Discussions about a combination are preliminary, the people said, asking not to be identified because the talks are private. While negotiations are ongoing, NBAD and FGB may decide against pursuing a merger, said the people. NBAD and FGB both said it is not their policy to comment on speculation or rumor.
With assets of about $170 billion the potential combination would surpass Qatar National Bank SAQ as the largest bank in the region, and comes as the industry battles falling profits because of lower government spending, slower economic growth and a decline in asset quality. Both NBAD and FGB posted a drop in first-quarter net income."



'via Blog this'

MIDEAST STOCKS-Gulf mostly soft; revived Americana talks support Kuwait | Reuters

MIDEAST STOCKS-Gulf mostly soft; revived Americana talks support Kuwait | Reuters:

"Gulf stock markets were mostly soft on Thursday after international bourses and oil markets slipped, but Kuwait's market was supported by renewed talks on the sale of a stake in a top food company.

Kuwait Food Co (Americana), majority-held by the al-Kharafi family, is back in talks to sell a majority stake to a group of Gulf investors just days after negotiations collapsed over valuation issues, sources told Reuters on Wednesday.

Americana declined to comment and its shares were suspended from trade on Thursday, but stocks rose in other companies in which the Kharafis own major stakes. National Investment Co added 2.2 percent and Zain rose 1.6 percent. Kuwait's main stock index edged up 0.1 percent.

"



'via Blog this'

Kuwaiti fast-food group Americana revives sale talks - sources | Reuters

Kuwaiti fast-food group Americana revives sale talks - sources | Reuters:

"Kuwait Food Co (Americana) is back in talks to sell a majority stake to a group of Gulf investors just days after negotiations collapsed over valuation issues, sources said on Wednesday.

Americana, which owns the Middle East franchises for fast food chains KFC and Pizza Hut and also produces branded consumer foods, has been up for sale since early 2014.

Investment firm Adeptio, which is led by prominent Dubai businessman Mohamed Alabbar, in February agreed to buy 69 percent of Americana from Al Khair for Stocks and Real Estate, which is controlled by the Kharafis, a wealthy merchant family."



'via Blog this'

Iran's Oil Comeback Hits a Bump - Bloomberg

Iran's Oil Comeback Hits a Bump - Bloomberg:




"Iran has ramped up oil production in the aftermath of western sanctions and it intends to go higher. However, there are concerns that the recovery may soon run out of steam. Bloomberg's Anthony DiPaola reports on "Bloomberg Markets Middle East." (Source: Bloomberg)"



'via Blog this'

Saudi prince seeks to repair ties, promote business on U.S. visit | Reuters

Saudi prince seeks to repair ties, promote business on U.S. visit | Reuters:

"Saudi Arabia's powerful deputy crown prince held a full day of meetings with U.S. lawmakers on Wednesday, part of a visit aimed at restoring frayed ties with Washington and promoting his plan to wean the kingdom away from oil revenue.

Mohammed bin Salman, son of Saudi Arabia's King Salman, is expected to meet U.S. President Barack Obama on Friday.

Lawmakers said his discussions on Wednesday, including meetings with the Senate Foreign Relations and Armed Services committees and House Speaker Paul Ryan, emphasized his push to help end Saudi dependence on oil by 2030."



'via Blog this'

MIDEAST STOCKS-Gulf wilts in early trade as Brexit risk saps sentiment | Reuters

MIDEAST STOCKS-Gulf wilts in early trade as Brexit risk saps sentiment | Reuters:

"Stock markets in the Gulf edged down in early trade on Thursday after international bourses and oil markets slipped, partly because of fears that Britain might leave the European Union in next week's referendum.

Local day traders sold speculative Saudi Arabian shares. The insurance sector dropped 0.8 percent and was the main drag on Riyadh's index, which had edged down 0.3 percent after an hour of trade.

Dar Al Arkan, which soared last week on hopes it would benefit from building housing units as part of Saudi Arabia's economic reform programme, fell back 0.9 percent and was the most heavily traded stock."



'via Blog this'

Fed pares back 2017 rate forecasts - YouTube

Fed pares back 2017 rate forecasts - YouTube: ""



'via Blog this'

Wednesday, 15 June 2016

Iran reaches deal to buy Boeings | GulfNews.com

Iran reaches deal to buy Boeings | GulfNews.com:

"Iran said it had reached an agreement with Boeing Co for the supply of jetliners on Tuesday, reopening the country's skies to new US aircraft for the first time in decades under an international deal to ease sanctions.

Details of the agreement were left vague, but Western and Middle East sources said that once approved, it would involve flag carrier Iranair acquiring more than 100 Boeing jets, both directly from Boeing and from leasing companies.

"In coming days details of the deal with this company will be announced," Roads and Urban Development Minister Abbas Akhoundi said, according to the semi-official Mehr news agency."



'via Blog this'

Iran files complaint with ICJ to recover $2 billion frozen in U.S. | Reuters

Iran files complaint with ICJ to recover $2 billion frozen in U.S. | Reuters:

"Iran has filed a formal complaint with the International Court of Justice to recover nearly $2 billion in assets frozen in the United States, Iranian President Hassan Rouhani said on Wednesday.

The U.S. Supreme Court ruled in April that the assets must be turned over to American families of people killed in the 1983 bombing of a U.S. Marine Corps barracks in Beirut and other attacks blamed on Iran.

The Iranian complaint was filed on Tuesday, Rouhani said at an "iftar" evening gathering in Tehran to break the Islamic Ramadan fast, according to the website of Iranian state television. "



'via Blog this'

Saudi Arabia’s Algosaibi CFO Jones Said to Leave Amid Debt Talks - Bloomberg

Saudi Arabia’s Algosaibi CFO Jones Said to Leave Amid Debt Talks - Bloomberg:

"Ahmad Hamad Algosaibi & Brothers Co. Chief Financial Officer Ben Jones left the Saudi Arabian company as it seeks to resolve debt talks with banks after the Middle East’s biggest default, according to a person with knowledge of the matter.
Jones is exploring other options, said the person, asking not to be identified because the matter is private. Algosaibi hired Jones and Simon Charlton as chief executive officer from Deloitte LLP in June 2013 as the company reopened negotiations with creditors to restructure about $6 billion of debt. Jones wasn’t immediately able to comment when contacted."



'via Blog this'

MIDEAST STOCKS-Saudi drops after MSCI disappointment; Egypt sinks | Reuters

MIDEAST STOCKS-Saudi drops after MSCI disappointment; Egypt sinks | Reuters:

"Saudi Arabia's stock market led falls in the Gulf on Wednesday after MSCI decided not to consider the country for emerging market status, while Egypt fell sharply as blue chip Orascom Telecom Media continued sliding.

In its annual classification review, MSCI praised market reforms announced by Saudi authorities but did not set a date for a review that could place the country in its emerging market index. It said that once implemented by mid-2017, the reforms would "bring the Saudi equity market closer" to inclusion.

This appeared to suggest that the Saudi market was unlikely to be included before mid-2018 at the earliest. In a research note, investment bank EFG-Hermes noted that if MSCI followed its standard time frame - which it does not always do - May 2019 would be the earliest possible inclusion date."



'via Blog this'

Tuesday, 14 June 2016

Full Show: Bloomberg Markets Middle East (06/14) - Bloomberg

Full Show: Bloomberg Markets Middle East (06/14) - Bloomberg:




"Bloomberg Markets Middle East hosted by Manus Cranny and Rishaad Salamat. Guests include Paul Haswell, partner at Pinsent Masons and Jahangir Aka, managing director of MENA at Neuberger Berman. (Source: Bloomberg)"



'via Blog this'

MIDEAST STOCKS-Gulf firms but volumes low as investors await MSCI | Reuters

MIDEAST STOCKS-Gulf firms but volumes low as investors await MSCI | Reuters:

"Gulf stock markets rose on Tuesday but many investors stood on the sidelines before MSCI's decision later in the day on whether it would consider Saudi Arabia for inclusion in its emerging markets index.

International index compiler MSCI is to announce after the close on Tuesday whether it will put Saudi Arabia on review for possible inclusion as early as mid-2017.

Inclusion would bring billions of dollars of passive foreign funds into the market, but fund managers are split on whether Saudi Arabia is likely to be put on review this year."



'via Blog this'

MIDEAST STOCKS-Gulf edges up in early trade but volumes small | Reuters

MIDEAST STOCKS-Gulf edges up in early trade but volumes small | Reuters:

"Gulf stock markets rose in early trade on Tuesday but many investors stood on the sidelines before MSCI's decision later on whether it will consider Saudi Arabia for inclusion in its emerging markets index.

Riyadh's index edged up 0.1 percent after an hour of trade, with Saudi Basic Industries adding 0.6 percent.

While many institutional investors and portfolio managers are staying clear of the market because of uncertainties such as the June 23 vote on whether Britain will leave the European Union, Saudi retail investors bought small to mid-sized shares. The insurance sub-index added 0.7 percent.

"



'via Blog this'

IEA sees global oil market returning to surplus in early 2017 | Reuters

IEA sees global oil market returning to surplus in early 2017 | Reuters:

"Oil supply and demand will balance in the second half of 2016 after a series of unplanned production outages, but the market is expected to tilt into surplus in the first half of next year, the International Energy Agency said on Tuesday.

The agency said demand growth in 2017 is likely to be flat at around 1.3 million barrels per day (bpd), the same level at which it estimates growth for this year, having revised up its May 2016 forecast of 1.2 million bpd.

"Again, on the planning assumption that OPEC oil production grows modestly in 2017, we expect to see global oil stocks build slightly in the first half of 2017 before falling slightly more in the second half of 2017. For the year as a whole, there will be a very small stock draw of 0.1 million bpd," the IEA said in its monthly report.

"



'via Blog this'

UAE's IPIC takes Malaysia fund dispute to London court, seeks $6.5 billion | Reuters

UAE's IPIC takes Malaysia fund dispute to London court, seeks $6.5 billion | Reuters:

"Abu Dhabi's state-owned International Petroleum Investment Co (IPIC) asked a London court to arbitrate in a dispute with Malaysian state fund 1MDB, in which it is claiming about $6.5 billion, IPIC said on Tuesday.

The submission to the London Court of International Arbitration alleges that 1MDB and Malaysia's finance ministry failed to perform their obligations under a debt restructuring agreement involving the companies last June.

Malaysia's finance ministry dissolved 1MDB's board of advisers and took over its remaining assets last month. The fund is the subject of money-laundering investigations in at least six countries."



'via Blog this'

Saudi Markets: Are Stocks Poised for a Rally? - Bloomberg

Saudi Markets: Are Stocks Poised for a Rally? - Bloomberg:




"Saudi Arabian stocks may be due a rally as more than 40% of the Tadawul All Shares Index's 172 members have buy signals. Bloomberg's Dana El Baltaji reports on "Bloomberg Markets Middle East." (Source: Bloomberg)"



'via Blog this'

Monday, 13 June 2016

Does the US still need Saudi Arabia? - BBC News

Does the US still need Saudi Arabia? - BBC News:

"It's been a rough year for the seven-decade-old alliance between the US and Saudi Arabia, from Riyadh's fury over the nuclear deal with Iran, President Barack Obama's comments about free-riding allies, to the Saudi threat to sell off $750bn (£523bn) in US treasury bonds and front page headlines decrying the Saudis as "Royal Scum".
Now, the Saudi Deputy Crown Prince is coming to the US with a different message - you may not like us or need our oil as much anymore, but the kingdom is one big investment opportunity.
Mohamed bin Salman, the brash, ambitious and powerful 30-year-old son of the king will be pitching the idea of a deeper economic engagement between the two countries and taking the unusual step of setting an agenda beyond talks in Washington with administration officials.
"



'via Blog this'

Middle East sovereign wealth funds ‘coping’ with low oil price environment | The National

Middle East sovereign wealth funds ‘coping’ with low oil price environment | The National:

"Sovereign wealth funds from across the Middle East, which reined in spending last year unlike their global peers, are coping with the low oil price environment, according to the asset manager Invesco.

Confidence remains stable in the Middle East, where a lot of work was done on risk management, governance and asset allocation in the wake of the global financial crisis, said Alex Millar, the head of Invesco’s Emea sovereigns division.

“As a consequence, while they [Middle Eastern funds] are in an environment that is challenging, they feel better able to cope with that," said Mr Millar. “Clearly, if oil prices remain low, there may well be future withdrawals but what we’re seeing is that a number of funds thought they might have to face redemptions but haven’t. Governments are using a variety of sources for funding and sovereigns are just one of those."

"



'via Blog this'

Emirates to cooperate with South Africa investigation into ‘incentives to travel agents’ | The National

Emirates to cooperate with South Africa investigation into ‘incentives to travel agents’ | The National:

"Emirates has said it will “cooperate fully" with South African authorities in an investigation into claims that the ­Dubai carrier offered incentives to travel agents to divert sales from competitors between 2010 and 2014.

“We take compliance with competition law very seriously wherever we operate, and we are cooperating fully with the [competition] commission’s inquiry," an Emirates spokeswoman said. The airline said that it would not make any further comment at this stage since the investigation was an ongoing matter.

South Africa’s competition commission confirmed that it was investigating Emirates for abuse of dominance under the Competition Act, Business Day, a Johannesburg publication, reported. The act bans a firm from “inducing" a customer to not deal with a competitor."



'via Blog this'

Dubai's non-oil foreign trade soars to Dh319 billion in Q1 | GulfNews.com

Dubai's non-oil foreign trade soars to Dh319 billion in Q1 | GulfNews.com:

"Dubai has achieved exponential growth in the total volume of non-oil foreign trade commodities during the first quarter of 2016.

According to statistics released by Dubai Customs, the volume of traded goods jumped  by 17 per cent from the same period last year to reach 24 million tonnes.

The spike in growth was the result of re-export commodities soaring 35 per cent to 4.1 million tonnes, export goods rising by 26 per cent to 4.58 million tonnes, and import goods going up 11 percent to 15.25 million tonnes."



'via Blog this'

Full Show: Bloomberg Markets Middle East (06/13) - Bloomberg

Full Show: Bloomberg Markets Middle East (06/13) - Bloomberg:




"Bloomberg Markets Middle East hosted by Manus Cranny and Rishaad Salamat. Guests include Gary Dugan, chief investment officer at Emirates NBD and Wayne Gordon, executive director for commodities at UBS Wealth management, CIO Office. (Source: Bloomberg)"



'via Blog this'

MIDEAST STOCKS-Gulf stocks slip but Saudi property shares extend gains | Reuters

MIDEAST STOCKS-Gulf stocks slip but Saudi property shares extend gains | Reuters:

"Gulf stocks edged down in response to weak oil prices and international markets on Monday, but shares of Saudi Arabian property developers gained further on hopes they would benefit from the country's economic reforms.

Dar Al Arkan Real Estate Development rose 2.3 percent to 6.60 riyals. The shares have been rising since the company announced last week it was in talks with the government to build homes under the kingdom's economic reform programme.

The stock is now trading well above the mean price target, 5.94 riyals, of eight analysts polled by Reuters."



'via Blog this'

QNB Raised $2.75B in Tier 1 Notes - Bloomberg

QNB Raised $2.75B in Tier 1 Notes - Bloomberg:




"Qatar National Bank, the country's biggest bank, raised $2.75B from capital-boosting perpetual notes in the single largest issue in the Middle East and North Africa. Bloomberg's Sam Potter reports on "Bloomberg Markets Middle East." (Source: Bloomberg)"



'via Blog this'

Sunday, 12 June 2016

Brexit band is wrong about UK energy policy | The National

Brexit band is wrong about UK energy policy | The National:

"The energy policy – if it deserves the name – of those supporting a UK exit from the European Union is a microcosm of the broader arguments for voting to leave. Allegedly harmful regulations would be scrapped. British influence would be maintained in splendid isolation. And the disruption that would follow an exit can be shrugged off.

“Leaving the EU would, as far as energy is concerned, give the UK the chance to opt out of a relationship where the disadvantages overwhelmingly outweigh the advantages," claims Business for Britain, a pro-Brexit lobby. But there is no opting out from the thicket of pipelines, electricity cables and investments that link Britain to its EU neighbours.

So most of Business for Britain’s energy chapter is devoted to showing that Britain could keep the same regulations and international memberships outside the EU as it has today: upheaval for the sake of continuity."



'via Blog this'

Adnoc to streamline operations across all activities, Sultan Al Jaber says | The National

Adnoc to streamline operations across all activities, Sultan Al Jaber says | The National:

"Sultan Al Jaber, the Minister of State and chief executive of Abu Dhabi National Oil Company, has revealed further details of his ambitious strategy to make the government-owned company a world leader in the energy sector.

The plan involves streamlining operations across all of Adnoc’s activities in an effort to drive efficiency, performance and profitability in the business. It will also involve establishing a new commercially oriented mindset among Adnoc’s 55,000 employees.

The goal is to ensure Adnoc remains a central contributor to the UAE’s economic diversification strategy and performs on a par with any multinational company, with focus squarely on shareholder value, Mr Al Jaber told The National.

"



'via Blog this'

Meydan secures Dh1b financing for key projects | GulfNews.com

Meydan secures Dh1b financing for key projects | GulfNews.com:

"The Meydan Group has secured a Dh1 billion financing from a consortium of local banks led by Abu Dhabi Islamic Bank (ADIB) that will be used for a series of new and ongoing developments it has embarked on. The funding contains a Dh700 million Sukuk issue and a Dh300 million term facility, both of which mature in 2024.

“This facility assists in realizing our funding objectives to build strategic partnerships with local and regional financial institutions to continue our growth and enable us to fulfil our business strategy of linking the world with the emirate of Dubai,” said Saeed Humaid Al Tayer, Chairman and CEO of the Meydan Group, in a statement.

Meydan has got multiple projects in various stages of development, including the signature mixed-use Meydan One master-development, which is to feature a super-regional shopping mall and a signature tower that aims to be the tallest residential high-rise in the world. The destination will also feature attractions such as the largest indoor ski slope ever."



'via Blog this'

Dubai’s residential market is still headed for oversupply | GulfNews.com

Dubai’s residential market is still headed for oversupply | GulfNews.com:

"Despite Dubai’s developers spreading out their new off-plan launches, work on their ongoing projects “remains steady” and will ensure the residential market is oversupplied until 2019 or so, according to a new report from Phidar Advisory.

So much so, launched projects and those announced for completion within the next 10 years could add a further 120,000 units to the existing supply. “The benefit of this potential supply injection is more affordable and stable housing costs, a factor that can stabilise/reduce labor costs and support general business and economic growth,” the report adds.

“Based on active construction projects, the three- and five-year demand CAGR (compounded annual growth rate) outpaces the supply CAGR, which will bring the market back to equilibrium.” (These projections do not include launched and announced projects for which construction has not commenced.)"



'via Blog this'

MIDEAST STOCKS-Markets fall but Saudi developers make gains; Orascom down 6 pct | Reuters

MIDEAST STOCKS-Markets fall but Saudi developers make gains; Orascom down 6 pct | Reuters:

"Middle East stock markets fell on Sunday as investors booked profits following a pull-back in oil prices and international stock markets, but some Saudi Arabian real estate shares bucked the downtrend because of the kingdom's economic reform plan.

Dar Al Arkan Real Estate Development added 7.5 percent after a 20 percent jump last week. It has been strong since the developer said last week that it was in talks with the government to provide housing under the reform policies.

Emaar Economic City, another company which announced last week that it plans to build homes with the Ministry of Housing, advanced 1.7 percent."



'via Blog this'

Saturday, 11 June 2016

UAE companies wary of Brexit uncertainty | GulfNews.com

UAE companies wary of Brexit uncertainty | GulfNews.com:

"International fund managers can cite the ‘Brexit’ as the biggest tail risk to markets all they want. In the UAE, companies with operations in the UK are not hitting the panic button just yet, though they are wary of the uncertainty the referendum brings.

On June 23, the UK will vote in a referendum on whether it will sever its ties with the European Union and exit it, or remain in the Union.

The uncertainty on the future of the UK has led to a depreciation in the pound and a drop in property prices. According to a report by Knight Frank, a real estate consultancy, there has been a “discernible Brexit effect” on the UK economy as investment decision are delayed, and the London property market is no exception."



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Full Show: Best of Bloomberg Markets Middle East (06/10) - Bloomberg

Full Show: Best of Bloomberg Markets Middle East (06/10) - Bloomberg:




"Bloomberg's Manus Cranny takes a look at the week's top stories and best interviews from the Middle East. (Source: Bloomberg)"



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Friday, 10 June 2016

Profitability of Dubai hotels under pressure as room rates slide | GulfNews.com

Profitability of Dubai hotels under pressure as room rates slide | GulfNews.com:

"Hotels in Dubai saw profit per room fall by 22 per cent in the first four months of this year, due to a significant drop in average room rates (ARR), according to the latest report from research firm HotStats.

While occupancy for the January to April 2016 period reached around 87 per cent, ARR fell by 9.6 per cent to $298.68. This resulted in revenue per available room (RevPAR) for Dubai hotels to drop by 10.5 per cent in the same period to $258.04.

Conference and banqueting revenue per available room, meanwhile, rose 17.2 per cent year-on-year to $20.39 from $17.40 in 2015."



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Thursday, 9 June 2016

Arabtec to approach banks and shareholders for more cash | The National

Arabtec to approach banks and shareholders for more cash | The National:

"Arabtec Holding, the country’s biggest-listed construction company, may need to tap shareholders in the future to shore up its balance sheet to bid for more prestigious contracts, according to analysts.

Arabtec’s board will meet on Monday and discuss plans to talk to shareholders and banks about improving its capital structure, less than two weeks after shareholders approved a move to use Dh1 billion of reserves to writedown losses, the company said yesterday in a statement to the Dubai Financial Market.

The company had accumulated losses of Dh2.27bn by March 30 after posting negative results in six successive quarters, which meant it was close to breaching a market rule that states companies are not allowed to accrue losses amounting to more than 50 per cent of its share capital. Arabtec’s share capital stood at Dh4.6bn at the end of the first quarter.

"



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MIDEAST STOCKS-Saudi makes more gains on economic reform, other markets lose steam | Reuters

MIDEAST STOCKS-Saudi makes more gains on economic reform, other markets lose steam | Reuters:

"Saudi Arabia's stock index notched its fourth session of gains on Thursday following the announcements of various economic reform plans, while most other bourses lost steam on profit taking.

Riyadh's index nudged up 2 points to 6,607 points.

The Saudi government published a five-year National Transformation Plan (NTP) on Monday, part of a wider set of reforms launched in April as "Vision 2030"."



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Emirates airline repays $1b bond | GulfNews.com

Emirates airline repays $1b bond | GulfNews.com:

"Emirates airline announced on Thursday that it has repaid a bullet bond [Bullet bond is a debt instrument whose entire face value is paid at once on the maturity date] in full for the value of $1 billion on its maturity date of June 8.

The bond was raised in 2011 to address Emirates’ working capital requirements. Emirates will also be repaying a bond totaling 150 million Singapore dollars later this month that was raised in 2006.

The airline is repaying both bonds from its own cash resources."



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After shock of redemptions, sovereign funds rethink strategies | Reuters

After shock of redemptions, sovereign funds rethink strategies | Reuters:

"Having gone from bumper cash inflows to redemptions in just two years, many sovereign wealth funds have been forced to shake up their investment strategies to embrace both super-liquid safe assets with more esoteric illiquid plays to bolster returns.

If the price of retaining easy-to-sell assets to meet sudden government cash calls is near-zero yields in cash deposits or Western government debt, then the $6.5 trillion sovereign fund sector will have to claw back returns by simultaneously moving deeper into riskier, less-liquid territory.

Changes run from radical rethinks about the purpose of such funds such as Saudi Arabia's $3.5 billion investment in ride service Uber to more nuanced shifts such as Qatar's decision to use more external managers to run its money."



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MIDEAST STOCKS-Saudi higher on housing plan, oil supports petchems | Reuters

MIDEAST STOCKS-Saudi higher on housing plan, oil supports petchems | Reuters:

"Saudi Arabia's stock index was headed for its fourth session of gains early Thursday after the housing ministry announced plans to build over one million homes, while oil's recent rally helped petrochemical shares.

Dar Al Arkan was on course for its third session of strong gains, with its shares climbing 4.2 percent. The stock had jumped its daily limit for two consecutive days, after the developer said late on Tuesday it was in talks with the government to provide housing under the kingdom's economic reform plan. It did not give further details.

The Saudi government published a five-year National Transformation Plan (NTP) on Monday, part of a wider set of reforms launched in April as "Vision 2030"."



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Oman Raises $2.5 Billion From First Foreign Bond Since 1997 - Bloomberg

Oman Raises $2.5 Billion From First Foreign Bond Since 1997 - Bloomberg:

"Oman, the largest Arab oil producer that’s not an OPEC member, raised $2.5 billion from its first international bond sale in almost two decades as it seeks to plug a budget deficit caused by crude’s decline.
The Gulf nation sold $1 billion of five-year notes at a yield of 245 basis points over the benchmark midswap rate and $1.5 billion of 10-year bonds at a spread of 320 basis points, according to a person familiar with the matter. Pricing was tightened from the initial guidance of mid- to high-200 basis points for the five-year notes and mid-300 basis points for the 10-year bonds, said the person, asking not to be identified because the information is private."



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Deal set to create Oman’s second biggest bank | GulfNews.com

Deal set to create Oman’s second biggest bank | GulfNews.com:

"Oman’s Bank Sohar reached an agreement with Bank Dhofar on the terms of a proposed merger that would create a bank with combined assets of almost $16 billion (Dh58.76 billion).

Each Bank Dhofar share will be exchanged for 1.29 shares of Bank Sohar if the merger goes ahead, Bank Sohar said in a statement on Wednesday. Bank Sohar gained 3.4 per cent to 0.18 riyals at 2.07pm in Muscat, while Bank Dhofar rose 0.4 per cent to 0.25 riyals (Dh2.38).

The two banks have been exploring a possible merger since July 2013. A combination of the lenders would create Oman’s second-largest bank, behind Bank Muscat which has assets of $32 billion."



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World Bank slashes growth forecast for UAE, rest of GCC region | GulfNews.com

World Bank slashes growth forecast for UAE, rest of GCC region | GulfNews.com:

"The UAE and the rest of the oil-producing countries in the Gulf will continue to face pressure from low oil prices, coupled with tightening fiscal and monetary policies this year, the World Bank said on Tuesday.

In the latest update of its Global Economic Prospects report, the bank slashed the growth forecast for the UAE to 2 per cent this year, a drop of 1.1 percentage point from the January 2016 projections. The country’s GDP was estimated to be at 3.4 per cent last year.

The World Bank said the downgrades are partly due to expectations that oil prices will continue to trade lower for the year, at an average of $41 per barrel. “For GCC countries, continued low oil prices, together with tightening fiscal and (to a lesser extent) monetary policy, will be a drag on activity in 2016,” said the World Bank."



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Abu Dhabi's ADFG to buy 48.36 pct of Dubai's Shuaa Capital - filing | Reuters

Abu Dhabi's ADFG to buy 48.36 pct of Dubai's Shuaa Capital - filing | Reuters:

"Dubai's Shuaa Capital said on Wednesday that Abu Dhabi Financial Group had reached an agreement to buy the 48.36 percent stake of the investment bank held by Dubai Banking Group.

The transaction, for which no value was disclosed, is subject to regulatory approvals, the statement added.

Alternative investment firm Abu Dhabi Financial Group, Dubai-based Arqaam Capital and Al Mal Capital were among the bidders for Dubai Banking Group's stake in Shuaa, Reuters reported on May 31."



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