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Thursday, 27 October 2016

WRAPUP 1-Saudis take new steps to ease bank liquidity crunch | Reuters

WRAPUP 1-Saudis take new steps to ease bank liquidity crunch | Reuters:

"Saudi Arabian authorities have taken fresh steps to ease a liquidity crunch caused by low oil prices, suspending the government's local currency bond issues and introducing a new instrument to inject funds into the money market.

The steps could, temporarily at least, ease upward pressure on Saudi money market rates, which have been rising sharply - threatening economic growth - as government debt sales soak up funds from the banking system.

But some bankers said the upward trend in rates was unlikely to end unless the government succeeded in slashing its budget deficit, allowing money to flow back to the private sector."



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MIDEAST STOCKS-Banks boost Gulf markets in weak global environment | Reuters

MIDEAST STOCKS-Banks boost Gulf markets in weak global environment | Reuters:

"Banking shares that were beaten down earlier this month by fears of slowing economic growth in the region boosted several Gulf stock markets on Thursday, despite weakness in Asian bourses and oil prices.

The Saudi bank sector has been strong since last week's big international bond sale by the government partly eased fears of a liquidity drought in the economy.

On Thursday, the sector index climbed 1.5 percent in its seventh straight day of gains. It has risen 13.3 percent in that period. This helped the overall Saudi stock market index gain 0.9 percent on Thursday, although trading volume was modest and fell from Wednesday, a negative technical sign."



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Abu Dhabi's sovereign wealth fund eyes Asia deals from new Hong Kong base | The National

Abu Dhabi's sovereign wealth fund eyes Asia deals from new Hong Kong base | The National:

"The Abu Dhabi Investment Authority (Adia) has opened its first office in Hong Kong as the sovereign wealth fund moves beyond its traditional investment hunting grounds such as the UK.

Adia said this morning that it had opened Adia Hong Kong to act as a springboard to look for further investment opportunities in mainland China and other key Asian markets.

The fund has appointed Dong-Sinh Ngo as its chief representative, Asia Pacific, who will head the Hong Kong office. In a statement released this morning Adia said that the new office opening would "assist in identifying new avenues for cooperation and growth in one of the fastest developing regions in the world"."



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Iran accuses Europe of not fully supporting nuclear deal

Iran accuses Europe of not fully supporting nuclear deal:

"A senior Iranian official has accused European governments of not being fully committed to implementation of a nuclear deal with Iran, blaming them for stymieing investment into the Islamic republic.

Asghar Fakhrieh Kashan, deputy transport minister, told the Financial Times that European financing agencies were failing to support businesses keen to invest in the oil-rich country. Export credit agencies were demanding premiums on insurance that made banks insist on putting “unacceptable” terms in contracts related to political risk, he said.

“Iran will not accept any clauses in trade agreements which insert political risks alongside commercial risks,” said Mr Kashan, who is involved in Iran’s negotiations over multibillion-dollar deals with Boeing and Airbus. “This is where European countries are failing to be committed to the nuclear agreement. One of the main reasons the signing of contracts in various sectors has been delayed is this issue.”"



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Statoil makes further spending cuts as it reports $432m Q3 loss

Statoil makes further spending cuts as it reports $432m Q3 loss:

"Statoil has made another cut to capital expenditure after announcing a net loss for the third quarter in a further sign of the pressure on oil producers from weak prices.

Capital expenditure for the full year is now expected to be $11bn – $1bn lower than previously planned. Exploration expenditure was expected to be $1.5bn, down from $1.8bn. These were the latest in a succession of spending cuts by Statoil and other oil majors as the industry has scrambled to adapt to low prices, writes Andrew Ward.

There have been recent signs of stabilisation in the market as Opec producers edge closer to agreement on curbing output but the relief did not come soon enough to prevent Statoil reporting a net loss of $432m for the three months to September 30. This was a deterioration from the net loss of $307m in the same period last year and worse than the $197m net profit forecast by analysts."



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MIDEAST STOCKS-Banks boost Gulf markets despite weak global environment | Reuters

MIDEAST STOCKS-Banks boost Gulf markets despite weak global environment | Reuters:

"Banking shares that had been beaten down earlier this month by fears of slowing global economic growth headed for a seventh day of gains on Thursday, boosting Gulf stock markets despite weakness in Asian bourses and oil prices.

The Saudi bank sector has been strong since last week's big international bond sale by the government partially eased fears about a liquidity drought in the economy, and on Thursday morning the sector index was up 1.4 percent.

This helped the overall Saudi stock market index climb 0.8 percent. Most petrochemical shares underperformed but PetroRabigh added 4.4 percent after saying it remained committed to executing a rights issue.

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