Google+ Followers

Tuesday, 15 August 2017

Air Berlin turns to Lufthansa and German govt after filing for insolvency

Air Berlin turns to Lufthansa and German govt after filing for insolvency:

"Air Berlin has filed for insolvency and is in discussions with Lufthansa and the German government to rescue parts of its business, after its largest shareholder Etihad said it would not provide any further funding for the struggling airline. Germany’s second-largest carrier has struggled to compete with low-cost rivals and has been kept in the air by repeated cash injections from Abu Dhabi based carrier Etihad, which bought a stake in the airline in 2011. However, on Tuesday Air Berlin filed a provisional insolvency proceeding at the local court of Berlin-Charlottenburg after Etihad refused to provide further guarantees for Air Berlin’s short-and medium-term commitments. Two members of Air Berlin’s board who were nominated by Etihad also resigned from their positions."



'via Blog this'

Oil ‘backwardation’ a key test for sentiment

Oil ‘backwardation’ a key test for sentiment:

"Oil trader sentiment hangs in the balance, and while fears of another collapse in the price are contained, the odds of a further move to take it significantly higher than $50 a barrel appear slim. A stream of positive data showing shrinking US oil stockpiles and stronger than expected demand in the summer months have bolstered the market and stoked a rebound in prices since July. Now, as oil market watchers focus on the spot price they are also monitoring contracts for delivery in months to come for signals about how supply and demand is playing out."



'via Blog this'

Air Berlin files for insolvency after losses mount - The National

Air Berlin files for insolvency after losses mount - The National:

"Air Berlin, Germany’s second-largest airline, filed for insolvency proceedings after it ran into operational and financial difficulties following years of losses. Air Berlin no longer has “a positive continuation prognosis”, as its main shareholder, Etihad Airways, withdrew financial support, the European carrier said in a statement on Tuesday. Etihad, which bought a 29.2 per cent stake in the German carrier in 2011, said in a statement that the move to seek administration was “disappointing for all parties”, especially, as the Abu Dhabi-based operator provided extensive support to Air Berlin for its previous liquidity challenges and restructuring efforts over the past six years. “In April this year, Etihad provided €250 million of additional funding to Air Berlin as well as supporting the airline to explore strategic options for the business,” an Etihad spokesperson said in statement. The business of the discount airline, however, had deteriorated at an unprecedented pace, which prevented it from overcoming its problems and pursuing alternative rescue plans, the spokesperson said."



'via Blog this'

Oil prices fall 2.5 percent on strong dollar, weak China data

Oil prices fall 2.5 percent on strong dollar, weak China data:

"Turkey's Unit International has signed a $7 billion agreement with Russia's state-owned Zarubezhneft and Iran's Ghadir Investment Holding to drill for oil and natural gas in Iran, the company said on Tuesday. In a statement, Unit said the three companies had invested a total of $7 billion for the drilling, which would take place at three oil fields and one large natural gas field in Iran. The total reserves at the three oil fields stand at 10 billion barrels, and the fields will produce 100,000 barrels per day, Unit said. It said the natural gas field had a production capacity of 75 billion cubic metres per year."



'via Blog this'

Dana Gas bondholders face “significant liability” in UAE court case

Dana Gas bondholders face “significant liability” in UAE court case:

"Investors in Dana Gas's $700 million Islamic bond are likely to have to repay the company a "significant" amount as a result of legal action in the United Arab Emirates, the company said on Tuesday. In a case which has unsettled the Islamic finance industry, Dana is seeking in UAE and British courts to avoid repaying its $700 million in Islamic bonds when they mature in October, arguing that the bonds have become unlawful in the UAE because of changes to Islamic financial practice. “The final outcome of the ongoing litigation in UAE courts would likely result in a significant liability for the sukuk holders to repay the company excess "on account profit payments" based on a lawful reconciliation of the matter,” Dana said."



'via Blog this'

Sanctions boost food prices, hurt real estate in Qatar in July

Sanctions boost food prices, hurt real estate in Qatar in July:

"Sanctions imposed by other Arab states are continuing to push up food prices in Qatar while hurting the real estate market, but not to the point of damaging the economy severely, according to inflation figures released by the government on Tuesday.

The annual inflation rate fell back sharply to 0.2 percent in July. It had spiked to 0.8 percent in June from 0.1 percent in May after Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Qatar on June 5, accusing it of supporting terrorism, which Doha denies.

By closing Qatar's land border with Saudi Arabia and disrupting maritime shipping routes, the sanctions slashed Qatari imports by more than a third in June, pushed up prices of some basic goods and hurt business sentiment in Doha."



'via Blog this'

MIDEAST STOCKS-Region sags as Union Properties loss hits Dubai, Egypt continues slide

MIDEAST STOCKS-Region sags as Union Properties loss hits Dubai, Egypt continues slide:

"Middle Eastern stock markets sagged again on Tuesday because of a mediocre economic outlook, with a shock loss at a real estate developer weighing on Dubai and Egypt dropping for a sixth straight day. Union Properties sank 4.3 percent to 0.82 dirham after it reported a 2.29 billion dirham ($624 million) net loss for the second quarter, although the stock came well off its intra-day low of 0.77 dirham. It accounted for over a third of Dubai's trading volume. The company said it was taking big provisions to cover past accounting errors related to its booking of a 503 million dirham gain on a plot of land at Dubai's Motor City."



'via Blog this'

Shares in Bahrain's GFH slide as it acquires $1.2 bln assets via equity issue

Shares in Bahrain's GFH slide as it acquires $1.2 bln assets via equity issue:

"Shares in Bahrain's GFH Financial Group fell sharply on Tuesday as the firm said it had acquired $1.2 billion of infrastructure assets in Africa and the Middle East by increasing its capital, diluting minority shareholders.

The financial firm, which did not give details of the assets, said in a bourse statement that it had made the acquisition through a $315 million capital increase, taking GFH's issued and paid-up capital to $975 million.

GFH's Dubai-listed shares sank 3.3 percent to 1.75 dirhams, bringing their losses over two days to 12.9 percent."



'via Blog this'

Dana Gas profits jump 77% as enegry prices rise | GulfNews.com

Dana Gas profits jump 77% as enegry prices rise | GulfNews.com:

"Dana Gas, the Sharjah-based natural gas company, reported on Tuesday a 77 per cent jump in its net profit for the first half of 2017 on the back of lower costs and higher energy prices. In the first half, the company recorded $23 million in net profits, up from the $13 million recorded in the same half of 2016 as operating costs fell 7 per cent. Capital expenditure was also axed by 84 per cent, supporting the increase in profitability, as revenues grew. The figures put net profit in the second quarter of 2017 alone at $12 million, up 71 per cent from the $7 million recorded in the second quarter last year. "



'via Blog this'

Dubai Magnate Tied to Trump Brand Seeks New Ventures Abroad - Bloomberg

Dubai Magnate Tied to Trump Brand Seeks New Ventures Abroad - Bloomberg:

"During recent trips to Croatia and Malta, a Dubai-based billionaire and business partner of the Trump Organization looked more like a head of state himself — mingling with government dignitaries, receiving a presidential reception and visiting the glittering Mediterranean Sea.

Hussain Sajwani met with leaders in the two European nations and addressed local journalists, many of whom referred to his ties to President Donald Trump or simply called him "the Donald of Dubai."

Sajwani's trips, as well as a recent deal in Oman, show that Trump's business partner in Dubai wants to expand his development empire beyond the Mideast and a tower under construction in London."



'via Blog this'

U.S. Oil Drillers Keep Pressure on OPEC With Record Shale Output - Bloomberg

U.S. Oil Drillers Keep Pressure on OPEC With Record Shale Output - Bloomberg:

"Oil output from major U.S. shale plays is poised to reach a fresh record next month, further complicating OPEC’s efforts to support prices.

The gain is being led by the oil-rich Permian basin of Texas and New Mexico, where production has risen steadily over the past two years. The Energy Information Administration projects Permian output to rise by 64,000 barrels in September, reaching a record of 2.6 million barrels a day."



'via Blog this'

OPEC’s Long-Sought Success Spoiled by 2018 Oil Supply Worry - Bloomberg

OPEC’s Long-Sought Success Spoiled by 2018 Oil Supply Worry - Bloomberg:

"Oil investors are already worrying over the potential fallout when OPEC’s deal to cut output expires, marring emerging signs that the accord to shrink a glut is finally succeeding. Uncertainty about how supplies curbed by the Organization of Petroleum Exporting Countries and its allies will be returned to the market in 2018 is clouding the outlook for crude, according to BMI Research. Prices remain vulnerable even though demand is strong, production gains are largely exhausted in Libya and Nigeria, and U.S. shale output is slowing, the unit of Fitch Group said in a report."



'via Blog this'

MIDEAST STOCKS-Gulf sluggish early on, Union Properties plunges on Q2 loss

MIDEAST STOCKS-Gulf sluggish early on, Union Properties plunges on Q2 loss:

"Gulf stock markets were mostly slugggish in early trade on Tuesday with Union Properties plunging after it reported a 2.29 billion dirham ($624 million) net loss for the second quarter. Union Properties said it was taking big provisions to cover past accounting errors related to its booking of a 503 million dirham gain on a plot of land at Dubai's Motor City. The errors were discovered as a new board and senior management, appointed in May, conducted an investigation of accounting practices dating back to 2013, the company said; its stock sank 7.9 percent to 0.789 dirham. Trading volume in Union Properties was about half half the market's entire volume."



'via Blog this'