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Monday, 17 October 2016

Slumping Oil Prices Are Creating New Headaches for Duterte - Bloomberg

Slumping Oil Prices Are Creating New Headaches for Duterte - Bloomberg:

"After two years working in Saudi Arabia, Arman Abelarde packed his bags in September and went home to the Philippines, joining an exodus of foreign workers who have been a major source of labor in the Arab Gulf for half a century.
Abelarde made panel boards in Riyadh, but his company, like many in the kingdom, is firing staff as government contracts dry up, victims of the oil slump.
"I never imagined this would happen -- that Saudi would just collapse," said Abelarde, 47, taking a break from painting a two-story house in Manila, one of many odd jobs he’s taken to feed his family of five since he returned. "There were no more projects. Companies were closing left and right.""



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Saudi Arabia: Give Us Your Money and Don't Ask About Oil - Bloomberg

Saudi Arabia: Give Us Your Money and Don't Ask About Oil - Bloomberg:

"For Saudi Arabia, some things are better left unsaid. 
As they swapped their traditional white robes for business suits and ties to meet with prospective investors ahead of the kingdom’s first-ever international bond sale, Saudi government officials talked at length about their vision for transforming the economy. When it came to an oil price increasingly influenced by Iran and the proxy war in Yemen they were less forthcoming.
“Every time anyone in our meeting asked about oil they pushed back,” said Gregory Saichin, chief investment officer for emerging-market bonds at Allianz Global Investors. He attended the investor day in London, the first of four that end in New York this week after Los Angeles and Boston. "The fact that they refused to take questions on oil prices or how much is achievable on budget rationalization have left investors with half a picture.""



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UPDATE 1-UAE's Union National Bank Q3 profit falls 15 pct, misses forecasts | Reuters

UPDATE 1-UAE's Union National Bank Q3 profit falls 15 pct, misses forecasts | Reuters:

"Union National Bank, 50 percent owned by the Abu Dhabi government, on Monday posted a 15 percent drop in third-quarter net profit, missing analysts' forecasts as interest income fell.

It was the sixth successive quarter of weaker earnings, squeezed by government spending cuts in the United Arab Emirates and tighter liquidity due to lower oil prices.

The fifth largest lender in the emirate by assets reported a net profit of 410 million dirhams ($110 million) in the three months to Sept. 30, compared to 483 million dirhams in the same period a year ago."



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MIDEAST STOCKS-Saudi shares hit by Q3 earnings, most of region weak | Reuters

MIDEAST STOCKS-Saudi shares hit by Q3 earnings, most of region weak | Reuters:

"Saudi Arabia's stock market fell on Monday after another set of disappointing third-quarter earnings, while other markets in the region were also weak, in line with the global trend.

The Saudi index slipped 1.2 percent as Alinma Bank , the most heavily traded stock, dropped 2.9 percent.

Alinma was the latest in a string of Saudi banks to report weak quarterly earnings as the slow economy increases impairment charges on loans; it posted a 16.8 percent fall in third-quarter net profit to 312 million riyals ($83.2 million). Analysts had on average forecast 409.1 million riyals."



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MIDEAST STOCKS-Saudi shares fall on Q3 earnings, rest of region soft | Reuters

MIDEAST STOCKS-Saudi shares fall on Q3 earnings, rest of region soft | Reuters:

"Saudi Arabia's stock market fell in early trade on Monday after another set of disappointing third-quarter earnings. Other markets in the region were also weak in line, with the trend in Asia.

The Saudi index slipped 0.7 percent in the first hour as Alinma Bank, the most heavily traded stock, dropped 2.2 percent.

Alinma, the latest in a string of Saudi banks to report weak quarterly earnings as the slow economy increases impairment charges on loans, posted a 16.8 percent fall in third-quarter net profit to 312 million riyals ($83.2 million); analysts had on average forecast 409.1 million riyals."



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Rise of Saudi Prince Shatters Decades of Royal Tradition - The New York Times

Rise of Saudi Prince Shatters Decades of Royal Tradition - The New York Times:

"He has slashed the state budget, frozen government contracts and reduced the pay of civil employees, all part of drastic austerity measures as the Kingdom of Saudi Arabia is buffeted by low oil prices.

But last year, Mohammed bin Salman, Saudi Arabia’s deputy crown prince, saw a yacht he couldn’t resist.

While vacationing in the south of France, Prince bin Salman spotted a 440-foot yacht floating off the coast. He dispatched an aide to buy the ship, the Serene, which was owned by Yuri Shefler, a Russian vodka tycoon. The deal was done within hours, at a price of approximately 500 million euros (roughly $550 million today), according to an associate of Mr. Shefler and a Saudi close to the royal family. The Russian moved off the yacht the same day."



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Saudi Arabia’s oil hub Dammam feels the pinch across all sectors | The National

Saudi Arabia’s oil hub Dammam feels the pinch across all sectors | The National:

"The Al Khobar Water Tower serves as maybe too convenient a metaphor for the stalled development of the largest and most bustling of the tri-city conurbation of Dammam, the oil capital of Saudi Arabia’s Eastern Province.

The 150,000-square-metre project that is the focal point of Al Khobar’s seafront skyline has been a bone of contention for the local populace, who have complained that the long-delayed structure – in the shape of a 90-metre tall palm – has been a major inconvenience for businesses in the area rather than the tourist draw that was promised.


Instead of offering eight floors of attractions, including restaurants and a panoramic viewing deck, the construction site instead has become an unsightly impediment to people going about their business around the corniche."



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Saudi Arabia's NCB Missed Estimates - Bloomberg

Saudi Arabia's NCB Missed Estimates - Bloomberg:

"Jaap Meijer, managing director and head of research at Arqaam Capital, discusses Saudi Arabia's National Commercial Bank Earnings, Saudi bank stocks and where he's finding opportunities. He speaks to Yousef Gamal El-Din and Angie Lau on "Bloomberg Markets: Middle East.""



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UPDATE 1-Dubai's Emirates NBD Q3 net profit narrowly misses estimates | Reuters

UPDATE 1-Dubai's Emirates NBD Q3 net profit narrowly misses estimates | Reuters:

"Dubai's largest lender, Emirates NBD (ENBD), reported a slightly lower-than-expected third-quarter net profit as net interest income slipped and costs rose.

The quarter marked an end to 16 straight quarters of a rise in earnings for the bank, as net profit dropped 1 percent, signaling the fallout from a growth slowdown in Dubai's economy.

The lender's earnings also took a hit from additional provisions set aside for Emirates Islamic, its sharia-compliant arm, to cover bad loans in the small- and medium-sized enterprise sector."



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IFR Capital Markets Week Ahead - October 17, 2016 | Reuters

IFR Capital Markets Week Ahead - October 17, 2016 | Reuters:

"Saudi Arabia is widely expected to launch its first-ever international bond sale once a week-long investor roadshow comes to a close on Tuesday. A collapse in oil revenues has already pushed the kingdom into taking out a US$10bn bank loan and the debt sale will open up another source of funding for Riyadh to fill its gaping fiscal hole, which at US$97bn last year - some 18% of GDP - was one of the largest in the world.

Citigroup, HSBC and JP Morgan are leading the three-tranche deal of five, 10 and 30-year paper. And it could be a big one: Argentina's US$16.5bn bond sale earlier this year illustrated just how much demand there is for emerging market sovereign exposure, and Saudi will be keen to tap into that. But, with plans to become a regular issuer, Riyadh might be wise not to fill its boots all at once. "



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