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Monday, 14 November 2016

Oil prices slump almost a fifth from October high

Oil prices slump almost a fifth from October high:
"Brent crude oil dropped below $44 a barrel on Monday to hit its lowest level for three months, as a strengthening US dollar and doubts over Opec’s ability to agree supply curbs when it meets this month led to funds selling out of the market.

Hedge funds and other large speculators have been paring their bets on higher oil prices for the past month, with the latest exchange data showing a record drop in Brent equivalent to almost 80m barrels in the week to November 8.

A strong dollar on Monday also weighed across commodities, with the dollar index jumping above 100 for the first time this year as investors bet US president-elect Donald Trump’s plans for economic stimulus and protectionism could stoke growth and inflation.

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UAE seeks to attract over $70b in industrial investments by 2025: Economy Minister | GulfNews.com

UAE seeks to attract over $70b in industrial investments by 2025: Economy Minister | GulfNews.com:
"The UAE seeks to attract more than $70 billion (Dh256.9 billion) in industrial investments by 2025, a senior government official said on Monday.

The investments will help increase the share of the industrial sector in the country’s GDP to 25 per cent, up from the current 16 per cent, and ensuring the industrial sector will become the driving force in the country’s economic growth, Sultan Bin Saeed Al Mansouri, Minister of Economy, said in a statement to the Emirates News Agency (WAM).

According to Al Mansouri, the slump in global oil prices has not had any significant impact on the UAE’s development as the share of non-oil sectors in the country’s economy stands at 69 per cent of GDP. He added that the limited impact of oil was further evidenced by the Cabinet’s recent approval of the new budget."

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U.S. shale firms go back to work buoyed by OPEC deal, Trump victory | Reuters

U.S. shale firms go back to work buoyed by OPEC deal, Trump victory | Reuters:
"U.S. shale producers are redeploying cash, rigs and workers, cautiously confident the energy sector has turned a corner after Donald Trump's election victory and OPEC's recent signal that it plans to curb production.

The downturn produced a leaner, more efficient U.S. shale industry that was forced to develop and quickly adapt new technology to compete with conventional oil supplies during a two-year period of depressed prices.

"You're starting to see a little bit of light at the end of the tunnel," Ryan Lance, chief executive of ConocoPhillips, the largest independent U.S. oil producer, said in an interview last week. "We're beginning to put capital back to work, but we're being cautious.""

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Saudi Arabia is wrestling down money rates, central bank says | Reuters

Saudi Arabia is wrestling down money rates, central bank says | Reuters:
"Saudi Arabia's central bank is succeeding in wrestling down market interest rates and expects to see further declines as it fights a liquidity squeeze caused by low oil prices, top officials said on Monday.

Shrunken flows of petrodollars through the banking system have sent interbank money rates SAIBOR= soaring to seven-year highs this year, making it more expensive for companies to raise money and contributing to a sharp slowdown in the economy.

But central bank Governor Ahmed al-Kholifey said a modest pull-back of rates in the past three weeks, with the three-month Saudi interbank offered rate SASAR3MD= falling to 2.189 percent from 2.386 percent, showed authorities had the situation under control. The rate was below 0.80 percent in August 2015."

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MIDEAST STOCKS-Egypt, Saudi hit by profit-taking, Gulf down with emerging markets | Reuters

MIDEAST STOCKS-Egypt, Saudi hit by profit-taking, Gulf down with emerging markets | Reuters:
"Profit-taking hit stocks in Egypt and Saudi Arabia on Monday following strong rallies in both markets, while general weakness in emerging markets dragged down the United Arab Emirates and Qatar.

Cairo's blue chip index, which had soared 28.1 percent since the Egyptian pound was floated on Nov. 3, fell 2.0 percent ending 12 consecutive sessions of gains. The broader EGX100 index dropped 0.8 percent.

Exchange data showed non-Arab foreign investors remained net buyers of stocks to the tune of about $6.7 million, a smaller amount than in previous days."

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Gulf banks could lose access to dollar clearing, UAE central banker warns | Reuters

Gulf banks could lose access to dollar clearing, UAE central banker warns | Reuters:
"Commercial banks in the Gulf could lose their ability to have dollar trades cleared through the U.S. banking system, increasing risks for them, the United Arab Emirates' central bank governor warned on Monday.

Mubarak Rashid al-Mansouri told a financial conference that U.S. and European banks were continuing to scale back their relationships with Gulf banks because foreign regulators were requiring them to do more due diligence on customers, raising costs for the foreign institutions.

"One large U.S. bank had derisking issues in the region in order to comply with tighter risk controls. As the U.S. dollar remains the dominant international currency, other U.S. banks are following suit," Mansouri said."

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Bond markets in turmoil | Market Minute - YouTube

Bond markets in turmoil | Market Minute - YouTube: ""



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Chinese group teams with Image Nation for $300m film fund

Chinese group teams with Image Nation for $300m film fund:
"A Chinese state-backed group has formed a $300m film fund with Image Nation Abu Dhabi, the media and entertainment company, to invest in movies and television programming produced in Hollywood, the United Arab Emirates and China.

Michael Garin, Image Nation’s chief executive, said the deal with China Intercontinental Communication Center would foster closer collaboration between Chinese and international media companies. “We want to find projects where Hollywood and Chinese partners can collaborate,” he said.

The deal builds on a recent $10bn strategic investment fund launched by China and the United Arab Emirates last year and is the first extension of that relationship into the media industry."

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Mohammed Alabbar to launch $1bn e-commerce platform

Mohammed Alabbar to launch $1bn e-commerce platform:
"Prominent Dubai businessman Mohammed Alabbar is teaming up with a Saudi sovereign wealth fund to launch a $1bn e-commerce platform that he hopes will “dominate” ecommerce in the region.

Mr Alabbar, who separately chairs Dubai property giant Emaar that operates the city’s massive Dubai Mall, wants “Noon” to drive ecommerce sales from 2 per cent of the market, or $3bn, to 15 per cent, or $70bn, over the next decade, with his new company taking the “lion’s share”.

The site will in January launch in Saudi Arabia and the United Arab Emirates, promising to offer 20m products and fast delivery, before expanding around the rest of the Middle East."

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Dubai investment company GGICO restructuring $643 mln of debt | Reuters

Dubai investment company GGICO restructuring $643 mln of debt | Reuters:
"Gulf General Investment Company (GGICO) is in talks with banks to restructure loan facilities worth a combined 2.36 billion dirhams ($643 million), the Dubai-based company said in its financial statement on Monday.

It is the second time in recent years that the company, which has investments spanning financial services, property, hospitality, manufacturing and retailing, has been forced to renegotiate its financial commitments. It completed a 2.8 billion dirham restructuring in 2012.

The news confirms a Sept. 29 Reuters story in which banking sources said that the Sharjah-based company was seeking to restructure part of its debt after struggling since the start of the year with the subdued local economic conditions."

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Exclusive: Saudi sovereign fund PIF considers buying stake in power firm ACWA - sources | Reuters

Exclusive: Saudi sovereign fund PIF considers buying stake in power firm ACWA - sources | Reuters:
"Saudi Arabia's main sovereign wealth fund, Public Investment Fund (PIF), is considering buying a stake in Riyadh-based ACWA Power, which operates power and water plants around the world, sources familiar with the matter told Reuters.

PIF, which already owns a 13.7 percent stake in ACWA indirectly through a subsidiary, invited investment banks last month to pitch for the role of advising it on a potential ACWA deal, according to four sources, declining to be named due to the sensitivity of the matter.

Talks are still at a preliminary stage, and neither party has appointed an advisor, said two of the sources, who are based in the Gulf."

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MIDEAST STOCKS-Gulf markets diverge; Saudi cools on profit-taking | Reuters

MIDEAST STOCKS-Gulf markets diverge; Saudi cools on profit-taking | Reuters:
"Stock markets in the Gulf diverged in early trade on Monday as some shares which are members of MSCI's emerging market index recovered, while Saudi Arabia's index was pulled lower by profit-taking.

Dubai's main index edged up 0.5 percent with Air Arabia adding 2.4 percent after it reported a 26-percent rise in third-quarter net profit to 297 million dirhams ($80.9 million), at the upper end of analysts' forecasts.

But builder Arabtec, which reported a narrower quarterly loss of 225.5 million dirhams compared with a 944.8 million loss in the same period of last year, was down 1.5 percent.

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