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Tuesday, 3 January 2017

Millennial princes snatch at power in Gulf | Reuters

Millennial princes snatch at power in Gulf | Reuters:
"For ageing monarchs in the Gulf, handing more power to a younger generation of princes makes sense. The task of diversifying their economies away from dependence on oil exports and implementing tricky social reforms requires an infusion of vigour and fresh ideas. Expect a new breed of millennial royalty and technocrats to emerge in 2017.

The overdue generational shift is already underway. Saudi Arabia’s octogenarian king set an example in 2015 when he sidelined an entire generation of older royals in favour of elevating his 30-something son, Deputy Crown Prince Mohammed bin Salman. After leapfrogging his older uncles, cousins and half-brothers in the House of Saud, the prince has pushed through the biggest shake-up in the kingdom’s economy in the last 50 years. Other ageing hereditary rulers in the region will have taken note.

The prince’s grand economic plan, known as Vision 2030, aims to provide more jobs and opportunities for Saudis under the age of 25. Although this group accounts for over half the Saudi population, their opportunities have been restricted by a system that places too much value on seniority and experience ahead of promoting youth and new ideas, especially in the upper echelons of government."

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MIDEAST STOCKS-Region rises, markets exposed to foreign funds outperform | Daily Mail Online

MIDEAST STOCKS-Region rises, markets exposed to foreign funds outperform | Daily Mail Online:
"Stock markets in the Middle East gained on Tuesday, with those most exposed to international funds outperforming as global equities and crude oil prices firmed on their first full-scale trading day of 2017.

Cairo's main index closed 1.1 percent higher with gainers outnumbering losers 25 to two. Foreign traders were net buyers, exchange data showed, a trend which has been consistent since the float of the Egyptian pound two months ago.

Telecommunications firms performed well with Global Telecom jumping 5.8 percent and Telecom Egypt adding 3.8 percent."

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Dubai mortgage lender Amlak renegotiates part of 2014 debt deal | Reuters

Dubai mortgage lender Amlak renegotiates part of 2014 debt deal | Reuters:
"Dubai's Amlak Finance said on Tuesday that it had renegotiated parts of a debt restructuring which the Islamic mortgage provider agreed with creditors following the local property market crash of 2008.

Amlak, in which Dubai's biggest developer Emaar Properties owns a 45 percent stake, reached a debt restructuring deal in 2014 following a government cash injection and six years of negotiations with creditors.

At the time, Amlak did not give the size of the debt being restructured, but bankers estimated it at about $2.7 billion."

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Russia: Inside the private bank backed by the state

Russia: Inside the private bank backed by the state:
"As 2014 drew to a close, Rosneft, Russia’s state-run oil company, faced a dire situation. Plummeting global oil prices, a rapidly devaluing rouble and western sanctions left the company with no obvious way to refinance the $18bn debt that was due to mature in just a few weeks.

With little room to manoeuvre, Rosneft set in motion one of the most audacious trades in Russia’s short capitalist history — and nearly brought down the economy in the process. The company quietly issued Rbs625bn in bonds to an unnamed intermediary, which then used them as collateral to obtain reverse repo loans — deals to purchase securities with an agreement to sell them later at a higher price — from the Russian central bank. The intermediary then passed on the dollars to Rosneft, allowing it to raise short-term capital.

Currency investors thought that Igor Sechin, Rosneft’s powerful chief executive, was effectively shorting the rouble and they pushed it to record lows. “The deal negatively stirred up the market,” tweeted Alexei Kudrin, the former finance minister. “Extremely bad timing.” Later, Vladimir Putin, Russia’s president, gave Mr Sechin a public dressing-down."

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Crude oil price surges as Opec cuts kick in

Crude oil price surges as Opec cuts kick in:

"The only way is up for oil.

Global oil prices are surging at the start of the year, eyeing $60 a barrel for the first time in over 18 months, gaining further momentum on the back of a landmark production cut between the world’s major producers.

Brent crude has gained $1.36 today, rising 2.3 per cent to hit $58.18, while West Texas Intermediate, the US benchmark, hit $55 for the first time since July 2015."



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Oman seeks banks' proposals for dual-tenor international bond issue -sources | Reuters

Oman seeks banks' proposals for dual-tenor international bond issue -sources | Reuters:
"The government of Oman has approached banks for an international bond issue with tranches of five and 10 years as the country plugs a budget deficit caused by lower oil prices, banking sources familiar with the situation said on Tuesday.

The sultanate has asked international lenders to submit proposals for a U.S. dollar debt transaction likely to be around $1 billion or more. Banks are expected to submit their proposals by the end of this week, said the sources.

One source said the government was keeping an open mind on whether the issue would be in the form of conventional bonds or sukuk."

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Dubai Financial Market planning to allow short-selling | Reuters

Dubai Financial Market planning to allow short-selling | Reuters:
"Dubai Financial Market (DFM) , the Gulf's only listed stock exchange, said on Tuesday that it planned to introduce covered short-selling, a move that could increase trading liquidity.

"DFM is planning implementation of regulated short-selling on a selected list of eligible securities in accordance with international recommendations under local market conditions in the coming months, subject to regulatory approvals of its rules," it said in a statement to Reuters.

The exchange has completed consultations on the operating model and is now working on technical enhancements of its planned short-selling system, it said."

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MIDEAST STOCKS-Gulf markets exposed to foreign funds outperform in early trade | Reuters

MIDEAST STOCKS-Gulf markets exposed to foreign funds outperform in early trade | Reuters:
"Stock markets in the Gulf diverged on Tuesday morning with bourses most exposed to international funds outperforming as global equities firmed.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 percent as most of that region's markets reopened after New Year holidays.

Qatar's main index was up 0.2 percent as the largest listed stock, Qatar National Bank, added 0.7 percent. Some investors tend to rotate into Qatari stocks in the early part of each year to capture high annual dividend yields."

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Does the Airbus A380 have a future? - BBC News

Does the Airbus A380 have a future? - BBC News:
"European planemaker Airbus breathed a sigh of relief in 2016 as airlines placed fresh orders for its "superjumbo", the A380 - ending a three-year drought.
Before this, there had been such a lack of demand for the A380 that Airbus's parent company, EADS, had talked about scrapping it. So what is the future for the world's largest jetliner?
"

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