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Tuesday, 24 January 2017

Wanted: Banks to Advise on World's Biggest Ever IPO - Bloomberg

Wanted: Banks to Advise on World's Biggest Ever IPO - Bloomberg:

"Saudi Arabian Oil Co. is asking banks including Goldman Sachs Group Inc. and HSBC Holdings Plc to pitch for an advisory role on its initial public offering as it pushes ahead with plans for the world’s largest share sale, three people with knowledge of the matter said.

The company has also sent out the so-called request for proposals to lenders including Credit Suisse Group AG and Morgan Stanley, the people said, asking not to be identified as the process is private. Aramco, as it’s known, is targeting the second or third quarter of 2018 for the IPO and expects to select banks later this year, two of the people said.

Saudi Arabia plans to sell less than 5 percent of the company as part of plans by Deputy Crown Prince Mohammed bin Salman to set up the world’s biggest sovereign wealth fund and reduce the economy’s reliance on hydrocarbons. The sale’s estimated size of $100 billion would make it the largest ever, dwarfing the $25 billion raised by Chinese internet retailer Alibaba in 2014."



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MIDEAST STOCKS-Saudi continues rebound, Egypt pulls back | Reuters

MIDEAST STOCKS-Saudi continues rebound, Egypt pulls back | Reuters:

"Saudi Arabia's stock market continued rebounding on Tuesday in a generally strong Gulf region, while a drop by shares in real estate firm Emaar Misr dragged down Egypt.

The Saudi index climbed 1.1 percent, adding to Monday's 1.7 percent gain.

With the fourth-quarter earnings reporting season more or less over, many Saudi firms have posted flat or weak profits because of government austerity steps and a sluggish economy. Over half a dozen major firms, including food maker Savola and several banks, missed analysts' estimates by wide margins."



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Parliament vote unlikely to delay Brexit

Rouble’s rally tests investors’ Russian appetite

Rouble’s rally tests investors’ Russian appetite:

"Of the many quandaries investors must grapple with this year, high on their list is Donald Trump’s relationship with Vladimir Putin. Not far behind is this — should they throw off their instinctive caution about Russia and its president, and push the rouble a lot higher? The turnround in the Russian rouble’s fortunes largely reflects the recovery of oil, the country’s biggest export. That has helped drive the currency higher by nearly a third to about Rbs60 in the past year. Notably, the rouble has outperformed every other major or emerging market currency against the dollar in the last three, six and 12 months. Factors beyond oil’s rebound also explain the rally. High interest rates in Russia make it an attractive carry trade opportunity for speculative investors borrowing in currencies with lower rates, while Mr Trump’s election has thrown up the prospect of a US rapprochement with Russia and the easing of western sanctions."



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MIDEAST STOCKS-Saudi continues rebound, Egypt pulls back | Reuters

MIDEAST STOCKS-Saudi continues rebound, Egypt pulls back | Reuters:

"Saudi Arabia's stock market continued rebounding in early trade on Tuesday, while Egypt pulled back amid selling by foreign investors.

The Saudi index climbed 1 percent in the first 80 minutes, adding to Monday's 1.7 percent gain.

Mouwasat Medical Services jumped 4 percent after saying its board was recommending a cash dividend of 2.5 riyals per share for 2016, up from 2 riyals in the previous year. The company reported an estimate-beating 34.2 percent rise in fourth-quarter profit last week."



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Emirates' Dubai-Athens-New York flight violates U.S. aviation agreement, say U.S. airlines | Reuters

Emirates' Dubai-Athens-New York flight violates U.S. aviation agreement, say U.S. airlines | Reuters:

"Emirates' announcement on Monday that it would start flying to the United States with a stop for passengers in Greece sparked a strong reaction from a lobby group representing U.S. competitors who accused it of competing unfairly through state subsidies.

The world's largest long-haul airline said it would start daily flights to New Jersey's Newark Liberty International Airport via Athens on March 12.

Emirates was "flagrantly violating" the air services agreement that allows it to fly to the United States, said the Partnership for Open & Fair Skies, which represents Delta Air Lines (DAL.N) and other U.S. airlines."



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UPDATE 1-Top execs of UAE's Etihad to quit but airline says committed to strategy | Reuters

UPDATE 1-Top execs of UAE's Etihad to quit but airline says committed to strategy | Reuters:

"The veteran chief executive of Abu Dhabi's Etihad Aviation Group, which owns one of the Middle East's top airlines, will leave this year, but the carrier remains committed to a system of equity alliances that he developed, Etihad said on Tuesday.

Australian James Hogan, 60, who over the past 10 years built Etihad into an aggressive competitor to Dubai's Emirates and Qatar Airways, will step down as president and CEO of the group in the second half of 2017. Chief financial officer James Rigney will also leave this year, Etihad said.

Chairman Mohamed Mubarak Fadhel al-Mazrouei said Etihad was continuing a "company-wide strategic review" which could include adjustments to the network of equity partnerships with other carriers that Hogan used to engineer rapid growth at Etihad."



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