Oil slides 2% as market shifts focus to demand | Financial Times:
Oil prices further retreated from their four-year highs on Wednesday as concerns over weaker global economic growth and the potential effect of Hurricane Michael on fuel demand kept traders on edge.
Brent crude was trading 2.2 per cent lower at $83.10 a barrel while West Texas Intermediate dropped 2.3 per cent to $73.23 a barrel.
The moves come after the IMF downgraded its global economic growth forecasts for 2018 and 2019 on Tuesday, raising concerns that demand for oil products may fall as well.
Wednesday 10 October 2018
Gulf labor nationalization may preserve social stability, but also raise labor costs – Moody’s
Gulf labor nationalization may preserve social stability, but also raise labor costs – Moody’s:
Efforts by Gulf Cooperation Council (GCC) countries to employ their nationals may meet social objectives, but it would be at a higher price and cost to diversification, Moody’s Investors Service said in a report this week.
“Rapid GCC population growth is leading to increased demand for jobs as new entrants join the market and only modest numbers of workers retire. Social changes will compound higher employment demand, particularly if more women enter the workforce,” the credit ratings agency noted in its report “Sovereigns — GCC, Labour market nationalization aims to curb unemployment but may raise labor costs and hamper diversification.”
“Nationalization strategies can have both credit positive and negative implications for sovereigns. It will be credit positive if these strategies are effective in providing wider job opportunities for nationals, while preventing a rise in unemployment and as a result maintain social and political stability,” Moody’s said. “However, large increases in public sector wage bills for the government to accommodate an increasing number of nationals in the administration would reduce fiscal flexibility and, in some cases, weaken fiscal strength.”
Efforts by Gulf Cooperation Council (GCC) countries to employ their nationals may meet social objectives, but it would be at a higher price and cost to diversification, Moody’s Investors Service said in a report this week.
“Rapid GCC population growth is leading to increased demand for jobs as new entrants join the market and only modest numbers of workers retire. Social changes will compound higher employment demand, particularly if more women enter the workforce,” the credit ratings agency noted in its report “Sovereigns — GCC, Labour market nationalization aims to curb unemployment but may raise labor costs and hamper diversification.”
“Nationalization strategies can have both credit positive and negative implications for sovereigns. It will be credit positive if these strategies are effective in providing wider job opportunities for nationals, while preventing a rise in unemployment and as a result maintain social and political stability,” Moody’s said. “However, large increases in public sector wage bills for the government to accommodate an increasing number of nationals in the administration would reduce fiscal flexibility and, in some cases, weaken fiscal strength.”
QSE nears 10,000 levels on strong buying interests
QSE nears 10,000 levels on strong buying interests:
Substantially stronger buying interests of foreign institutions imparted more than 124 points push to the Qatar Stock Exchange, which on Wednesday neared 10,000 resistance levels.
Banking and industrials witnessed higher than average demand, leading to a 1.26% increase in the 20-stock Qatar Index to 9,964.37 points.
The Islamic equities were however seen gaining slower than the other indices in the market which is up 16.91% year-to-date.
Substantially stronger buying interests of foreign institutions imparted more than 124 points push to the Qatar Stock Exchange, which on Wednesday neared 10,000 resistance levels.
Banking and industrials witnessed higher than average demand, leading to a 1.26% increase in the 20-stock Qatar Index to 9,964.37 points.
The Islamic equities were however seen gaining slower than the other indices in the market which is up 16.91% year-to-date.
Saudi Prince Alwaleed's Net Worth Tumbles 58% to Six-Year Low - Bloomberg
Saudi Prince Alwaleed's Net Worth Tumbles 58% to Six-Year Low - Bloomberg:
The fortune of Saudi Arabia’s richest person, Prince Alwaleed bin Talal Al Saud, has dropped to $15.2 billion, its lowest level since the Bloomberg Billionaires Index began tracking him in April 2012.
The value of his portfolio of public equities, stakes in closely held companies and Saudi real estate fell by $760 million in the first three quarters of the year, according to an emailed document from his private office. The decline was due to “minor adjustments” in the valuation of assets and some disposals, including the sale last month of his stake in U.S. ride-hailing company Lyft Inc. to his investment company, Kingdom Holding Co.
The world’s wealthiest people have, in aggregate, lost 2 percent of their wealth so far this year, or $103 billion, according to the index.
The fortune of Saudi Arabia’s richest person, Prince Alwaleed bin Talal Al Saud, has dropped to $15.2 billion, its lowest level since the Bloomberg Billionaires Index began tracking him in April 2012.
The value of his portfolio of public equities, stakes in closely held companies and Saudi real estate fell by $760 million in the first three quarters of the year, according to an emailed document from his private office. The decline was due to “minor adjustments” in the valuation of assets and some disposals, including the sale last month of his stake in U.S. ride-hailing company Lyft Inc. to his investment company, Kingdom Holding Co.
The world’s wealthiest people have, in aggregate, lost 2 percent of their wealth so far this year, or $103 billion, according to the index.
Mideast Stocks: Qatar jumps to test technical barrier, Saudi petchems slip | ZAWYA MENA Edition
Mideast Stocks: Qatar jumps to test technical barrier, Saudi petchems slip | ZAWYA MENA Edition:
Qatar's stock market jumped in morning trade on Wednesday on the back of banks, causing its main index to test technical resistance, while Saudi Arabia edged down as petrochemical firms fell.
The Qatari index surged 1.4 percent to 9,975 points, testing technical resistance at 10,003-10,028 points, where the market peaked in August and September.
Qatar National Bank rose 2.3 percent after its chief executive said on Monday that the company had no funding needs at the moment and that its U.S. dollar liquidity was "excellent".
Qatar's stock market jumped in morning trade on Wednesday on the back of banks, causing its main index to test technical resistance, while Saudi Arabia edged down as petrochemical firms fell.
The Qatari index surged 1.4 percent to 9,975 points, testing technical resistance at 10,003-10,028 points, where the market peaked in August and September.
Qatar National Bank rose 2.3 percent after its chief executive said on Monday that the company had no funding needs at the moment and that its U.S. dollar liquidity was "excellent".
World's top traders divided on oil outlook as Iran sanctions loom | Reuters
World's top traders divided on oil outlook as Iran sanctions loom | Reuters:
The world’s biggest trading houses said on Wednesday they saw oil prices not falling below $65 per barrel and possibly breaking above $100 next year as U.S. sanctions on Iran reduce crude exports from the Islamic republic.
The range of views illustrates deep uncertainty among top industry players over the outlook, given the reimposition of sanctions on Iran and forecasts of slowing economies and energy demand in 2019, potentially leading to choppy trading.
Oil has rallied this year on expectations the sanctions, coming into force on Nov. 4, will strain supplies by lowering shipments from Iran, OPEC’s third-largest oil producer. Brent crude LCOc1 last week reached $86.74, the highest since 2014.
The world’s biggest trading houses said on Wednesday they saw oil prices not falling below $65 per barrel and possibly breaking above $100 next year as U.S. sanctions on Iran reduce crude exports from the Islamic republic.
The range of views illustrates deep uncertainty among top industry players over the outlook, given the reimposition of sanctions on Iran and forecasts of slowing economies and energy demand in 2019, potentially leading to choppy trading.
Oil has rallied this year on expectations the sanctions, coming into force on Nov. 4, will strain supplies by lowering shipments from Iran, OPEC’s third-largest oil producer. Brent crude LCOc1 last week reached $86.74, the highest since 2014.
UPDATE 2-Qatar National Bank Q3 profit up, despite Turkish lira impact | Reuters
UPDATE 2-Qatar National Bank Q3 profit up, despite Turkish lira impact | Reuters:
Qatar National Bank’s (QNB) third-quarter net profit rose 3.5 percent, the largest bank by assets in the Middle East and Africa said on Wednesday, as a rise in net interest income helped offset the squeeze from a weaker Turkish lira.
QNB, which is 50-percent owned by sovereign wealth fund Qatar Investment Authority, in 2016 completed the acquisition of Turkey’s Finansbank. Now around 15 percent of QNB’s assets and 14 percent of its loans relate to Turkey, according to Arqaam Capital.
The lira has come under pressure this year as a result of investor concerns about President Tayyip Erdogan’s influence on monetary policy and an ongoing row with the United States that has resulted in reciprocal sanctions and trade restrictions.
Qatar National Bank’s (QNB) third-quarter net profit rose 3.5 percent, the largest bank by assets in the Middle East and Africa said on Wednesday, as a rise in net interest income helped offset the squeeze from a weaker Turkish lira.
QNB, which is 50-percent owned by sovereign wealth fund Qatar Investment Authority, in 2016 completed the acquisition of Turkey’s Finansbank. Now around 15 percent of QNB’s assets and 14 percent of its loans relate to Turkey, according to Arqaam Capital.
The lira has come under pressure this year as a result of investor concerns about President Tayyip Erdogan’s influence on monetary policy and an ongoing row with the United States that has resulted in reciprocal sanctions and trade restrictions.
Saudi dairy company Almarai hires banks for debut dollar sukuk –sources | Reuters
Saudi dairy company Almarai hires banks for debut dollar sukuk –sources | Reuters:
The Gulf’s biggest dairy company Almarai has hired banks including HSBC and First Abu Dhabi Bank to arrange a sale of U.S. dollar sukuk, or Islamic bonds, sources familiar with the matter said on Wednesday.
The sale would mark Almarai’s debut in the international debt markets, as the Saudi Arabian company has so far issued bonds in riyal.
The issue is expected to be of benchmark size, which generally means in excess of $500 million, the sources said.
The Gulf’s biggest dairy company Almarai has hired banks including HSBC and First Abu Dhabi Bank to arrange a sale of U.S. dollar sukuk, or Islamic bonds, sources familiar with the matter said on Wednesday.
The sale would mark Almarai’s debut in the international debt markets, as the Saudi Arabian company has so far issued bonds in riyal.
The issue is expected to be of benchmark size, which generally means in excess of $500 million, the sources said.
Iran gets creative to beat sanctions and keep oil flowing | Financial Times
Iran gets creative to beat sanctions and keep oil flowing | Financial Times:
When Donald Trump’s sanctions hit Iran’s oil exports next month, the Islamic republic will not just scramble to find alternative revenues to provide an 80m-strong population with medicine and other vital commodities. Tehran is also keen to make sure the president of the country they call the “Great Satan” fails in his goal to shut down Iran’s main economic lifeline.
“Trump must and will definitely suffer an embarrassing failure by not being able to bring down Iran’s oil exports to zero,” said a senior energy businessman close to the regime. “We will achieve this even if [we have] to barter crude for Russian weapons or store our crude in Malaysia and Thailand.”
Iran, which derives a large part of its foreign currencies and state revenues from oil exports, is seeking creative ways to sell its oil ahead of the reimposition of US sanctions on November 4. At stake are Iran’s hopes of maintaining some leverage in negotiations with the Trump administration. Insiders believe any talks with Washington could only happen once Iran has shown it can withstand the new sanctions and, as a result, not have its hands tied at the negotiating table.
When Donald Trump’s sanctions hit Iran’s oil exports next month, the Islamic republic will not just scramble to find alternative revenues to provide an 80m-strong population with medicine and other vital commodities. Tehran is also keen to make sure the president of the country they call the “Great Satan” fails in his goal to shut down Iran’s main economic lifeline.
“Trump must and will definitely suffer an embarrassing failure by not being able to bring down Iran’s oil exports to zero,” said a senior energy businessman close to the regime. “We will achieve this even if [we have] to barter crude for Russian weapons or store our crude in Malaysia and Thailand.”
Iran, which derives a large part of its foreign currencies and state revenues from oil exports, is seeking creative ways to sell its oil ahead of the reimposition of US sanctions on November 4. At stake are Iran’s hopes of maintaining some leverage in negotiations with the Trump administration. Insiders believe any talks with Washington could only happen once Iran has shown it can withstand the new sanctions and, as a result, not have its hands tied at the negotiating table.
Qatar's Battered Tourism Sector Will Need Three Years to Recover - Bloomberg
Qatar's Battered Tourism Sector Will Need Three Years to Recover - Bloomberg:
Qatar’s tourism industry will need three years to recover from the loss of tourists from Saudi Arabia and other Gulf states after the gas-rich country was boycotted by its neighbors in June 2017.
The host of the 2022 World Cup plans to add a further 17,000 hotel rooms to the 26,000 it already has to prepare for the soccer tournament, a target that’s putting pressure on room rates as visitor numbers decline, Hassan Abdulrahman Al-Ibrahim, the acting chairman of the Qatar Tourism Authority, said in an interview with Bloomberg TV in Doha.
“Our previous strategy focused on regional markets,” Al-Ibrahim said. “We will need two-to-three years to recover from the drop that we had in visitors.”
Qatar’s tourism industry will need three years to recover from the loss of tourists from Saudi Arabia and other Gulf states after the gas-rich country was boycotted by its neighbors in June 2017.
The host of the 2022 World Cup plans to add a further 17,000 hotel rooms to the 26,000 it already has to prepare for the soccer tournament, a target that’s putting pressure on room rates as visitor numbers decline, Hassan Abdulrahman Al-Ibrahim, the acting chairman of the Qatar Tourism Authority, said in an interview with Bloomberg TV in Doha.
“Our previous strategy focused on regional markets,” Al-Ibrahim said. “We will need two-to-three years to recover from the drop that we had in visitors.”
Oil Holds Near $75 on Speculation Storm May Worsen Supply Risk - Bloomberg
Oil Holds Near $75 on Speculation Storm May Worsen Supply Risk - Bloomberg:
Oil held near $75 a barrel as Hurricane Michael threatened supply in the U.S. just as the nation’s stockpiles were forecast to increase.
Futures in New York were little changed after rising to a week’s high on Tuesday. Hurricane Michael has curtailed production in the Gulf of Mexico by 40 percent as it rushes toward Florida as a “dangerous” storm. U.S. crude inventories probably rose for a third week, according to a Bloomberg survey.
Oil held near $75 a barrel as Hurricane Michael threatened supply in the U.S. just as the nation’s stockpiles were forecast to increase.
Futures in New York were little changed after rising to a week’s high on Tuesday. Hurricane Michael has curtailed production in the Gulf of Mexico by 40 percent as it rushes toward Florida as a “dangerous” storm. U.S. crude inventories probably rose for a third week, according to a Bloomberg survey.
GCC stocks markets' value exceeds $1trln -- KAMCO | ZAWYA MENA Edition
GCC stocks markets' value exceeds $1trln -- KAMCO | ZAWYA MENA Edition:
Value of GCC stock markets rose by 68 percent reaching up to USD 1.03 trillion in September in contrast to USD 0.6 trillion in 2008, according to KAMCO Investment Company (KAMCO).
The company said in a report, released on Tuesday, that ten years after the global financial crisis, the world economy has recovered, with annual forecast growth standing at 3.2 percent, projected to climb from USD 63.7 trillion in 2008 to USD 87.5 trillion in 2018.
Share of emerging markets in the global economic growth amounts to 64 percent, the report said, also indicating that value of global stock markets would rise by 93 percent, from USD 41.45 trillion in 2008 to USD 80.13 trillion in September 2018.
Value of GCC stock markets rose by 68 percent reaching up to USD 1.03 trillion in September in contrast to USD 0.6 trillion in 2008, according to KAMCO Investment Company (KAMCO).
The company said in a report, released on Tuesday, that ten years after the global financial crisis, the world economy has recovered, with annual forecast growth standing at 3.2 percent, projected to climb from USD 63.7 trillion in 2008 to USD 87.5 trillion in 2018.
Share of emerging markets in the global economic growth amounts to 64 percent, the report said, also indicating that value of global stock markets would rise by 93 percent, from USD 41.45 trillion in 2008 to USD 80.13 trillion in September 2018.
Mideast Stocks: Qatar jumps to test technical barrier, Saudi petchems slip | ZAWYA MENA Edition
Mideast Stocks: Qatar jumps to test technical barrier, Saudi petchems slip | ZAWYA MENA Edition:
Qatar's stock market jumped in morning trade on Wednesday on the back of banks, causing its main index to test technical resistance, while Saudi Arabia edged down as petrochemical firms fell.
The Qatari index surged 1.4 percent to 9,975 points, testing technical resistance at 10,003-10,028 points, where the market peaked in August and September.
Qatar National Bank rose 2.3 percent after its chief executive said on Monday that the company had no funding needs at the moment and that its U.S. dollar liquidity was "excellent".
Qatar's stock market jumped in morning trade on Wednesday on the back of banks, causing its main index to test technical resistance, while Saudi Arabia edged down as petrochemical firms fell.
The Qatari index surged 1.4 percent to 9,975 points, testing technical resistance at 10,003-10,028 points, where the market peaked in August and September.
Qatar National Bank rose 2.3 percent after its chief executive said on Monday that the company had no funding needs at the moment and that its U.S. dollar liquidity was "excellent".
Dubai Islamic Bank Q3 net profit rises 10.8 pct | Reuters
Dubai Islamic Bank Q3 net profit rises 10.8 pct | Reuters:
Dubai Islamic Bank (DIB), the United Arab Emirates’ largest sharia-compliant lender, posted a 10.8 percent increase in third-quarter net profit on Wednesday as income from Islamic financing and investment grew.
DIB made 1.23 billion dirhams ($334.89 million) in the three months to Sept. 30, it said, up from 1.11 billion a year earlier. The result was in line with the mean forecast in a Refinitiv poll.
The lender said Islamic finance and investing transactions grew to 2.48 billion dirhams from 2.01 billion a year earlier.
Dubai Islamic Bank (DIB), the United Arab Emirates’ largest sharia-compliant lender, posted a 10.8 percent increase in third-quarter net profit on Wednesday as income from Islamic financing and investment grew.
DIB made 1.23 billion dirhams ($334.89 million) in the three months to Sept. 30, it said, up from 1.11 billion a year earlier. The result was in line with the mean forecast in a Refinitiv poll.
The lender said Islamic finance and investing transactions grew to 2.48 billion dirhams from 2.01 billion a year earlier.
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