Saudi Arabia Banks in $4.5 Billion Settlement Over Islamic Taxes - Bloomberg:
Major banks in Saudi Arabia reached settlements worth a combined 16.7 billion riyals ($4.5 billion) with the kingdom’s tax authority over a religious levy the lenders had been kicking against.
The deals come as the world’s largest crude exporter predicts a budget shortfall of 131 billion riyals, or 4.2 percent of gross domestic product, for 2019. The deficit was worsened as the nation boosted spending and extended benefits for government employees worth billions of dollars. The tax authority had extended the 2.5 percent religious levy, known as the Zakat, by including items that were previously exempt, while eliminating some deductions.
Al Rajhi Bank was hit with the highest payment, agreeing to pay 5.41 billion riyals, the lender said in a statement posted on the Saudi Stock Exchange. Alinma Bank didn’t pay any settlement and said in a separate announcement that there will be a credit balance with the authority.
Thursday 20 December 2018
EU close to agreeing air traffic deals with #Qatar, ASEAN: sources | Reuters
EU close to agreeing air traffic deals with Qatar, ASEAN: sources | Reuters:
The European Union is close to striking air traffic agreements with Qatar and a group of countries in southeast Asia, two people familiar with the matter told Reuters.
Negotiations on the two deals are “on the home stretch” and could come into effect in 2019, the people said.
As part of the deals, Qatar and the Association of Southeast Asian Nations (ASEAN) would agree to ensure their airlines conform to environmental, worker safety and competition standards, and would in exchange be guaranteed that they would be given the same rights as their competitors.
The European Union is close to striking air traffic agreements with Qatar and a group of countries in southeast Asia, two people familiar with the matter told Reuters.
Negotiations on the two deals are “on the home stretch” and could come into effect in 2019, the people said.
As part of the deals, Qatar and the Association of Southeast Asian Nations (ASEAN) would agree to ensure their airlines conform to environmental, worker safety and competition standards, and would in exchange be guaranteed that they would be given the same rights as their competitors.
Oil prices tumble to lowest in more than a year as equities sell off | Reuters
Oil prices tumble to lowest in more than a year as equities sell off | Reuters:
Oil prices fell about 5 percent on Thursday, hitting their lowest level in more than a year on worries about oversupply and the outlook for energy demand as a U.S. interest rate rise knocked stock markets.
Brent crude LCOc1 futures fell $2.89, or 5.05 percent, to settle at $54.35 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $2.29, or 4.75 percent, to settle at $45.88 a barrel.
Brent hit a session low of $54.28 a barrel, its lowest price since mid-September 2017, while WTI sank to $45.67, its lowest price since late August 2017.
Oil prices fell about 5 percent on Thursday, hitting their lowest level in more than a year on worries about oversupply and the outlook for energy demand as a U.S. interest rate rise knocked stock markets.
Brent crude LCOc1 futures fell $2.89, or 5.05 percent, to settle at $54.35 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $2.29, or 4.75 percent, to settle at $45.88 a barrel.
Brent hit a session low of $54.28 a barrel, its lowest price since mid-September 2017, while WTI sank to $45.67, its lowest price since late August 2017.
MIDEAST STOCKS-Oil and global stock slide hits Gulf but COMI buoys Egypt | Reuters
MIDEAST STOCKS-Oil and global stock slide hits Gulf but COMI buoys Egypt | Reuters:
Major Gulf stock markets fell on Thursday because of sliding oil prices and weak global bourses after the U.S. Federal Reserve hiked interest rates, but Commercial International Bank (COMI) boosted Egypt’s index.
Saudi Arabia’s stock index fell for a third straight session, slipping 1.4 percent and dropping back below the 100-day-moving average at 7,841 points, a negative technical sign.
All 14 petrochemical stocks retreated in response to the drop of oil prices to their lowest levels in more than a year, with Saudi Basic Industries dipping 1.2 percent.
Major Gulf stock markets fell on Thursday because of sliding oil prices and weak global bourses after the U.S. Federal Reserve hiked interest rates, but Commercial International Bank (COMI) boosted Egypt’s index.
Saudi Arabia’s stock index fell for a third straight session, slipping 1.4 percent and dropping back below the 100-day-moving average at 7,841 points, a negative technical sign.
All 14 petrochemical stocks retreated in response to the drop of oil prices to their lowest levels in more than a year, with Saudi Basic Industries dipping 1.2 percent.
#Qatar Airlines runs into turbulence in the US House | Financial Times
Qatar Airlines runs into turbulence in the US House | Financial Times:
The Democrat who will head the House of Representatives committee that oversees aviation has lashed out at Qatar Airways for allegedly subsidising Air Italy and giving it an unfair advantage as the Italian carrier increases its routes to the US.
Peter DeFazio of Oregon, who will chair the transportation committee when Democrats take control of the House in January, said he was concerned that Qatar Airways, which has a 49 per cent stake in Air Italy, was engaging in anti-competitive practices to help the Italian airline fly to new destinations in the US.
“Their intention is to take over international aviation. They’re subsidising the heck out of it,” Mr DeFazio said in an interview with the Financial Times, in which he also raised concern about Emirates, a UAE airline that flies from the Gulf to the US via Europe.
The Democrat who will head the House of Representatives committee that oversees aviation has lashed out at Qatar Airways for allegedly subsidising Air Italy and giving it an unfair advantage as the Italian carrier increases its routes to the US.
Peter DeFazio of Oregon, who will chair the transportation committee when Democrats take control of the House in January, said he was concerned that Qatar Airways, which has a 49 per cent stake in Air Italy, was engaging in anti-competitive practices to help the Italian airline fly to new destinations in the US.
“Their intention is to take over international aviation. They’re subsidising the heck out of it,” Mr DeFazio said in an interview with the Financial Times, in which he also raised concern about Emirates, a UAE airline that flies from the Gulf to the US via Europe.
OPEC's Sequel to Blockbuster Oil Deal Faces Struggle in 2019 - Bloomberg
OPEC's Sequel to Blockbuster Oil Deal Faces Struggle in 2019 - Bloomberg:
OPEC’s bold strategy to revive oil markets proved a surprise success last year, but the sequel they’ve unveiled for 2019 is getting a cooler reception.
Oil prices have slumped in the two weeks since the cartel and its allies announced they will cut production to prevent a surplus, in contrast to the rally that greeted their previous intervention. From Wall Street oil-watchers to Russia’s central bank, speculation is growing that booming U.S. shale output and shaky fuel demand may thwart the coalition’s efforts.
Saudi Arabia’s assurance on Wednesday that the agreed six months of cuts will probably be extended -- a pledge that comes before the deal has even started -- only underscored the prevailing anxiety.
OPEC’s bold strategy to revive oil markets proved a surprise success last year, but the sequel they’ve unveiled for 2019 is getting a cooler reception.
Oil prices have slumped in the two weeks since the cartel and its allies announced they will cut production to prevent a surplus, in contrast to the rally that greeted their previous intervention. From Wall Street oil-watchers to Russia’s central bank, speculation is growing that booming U.S. shale output and shaky fuel demand may thwart the coalition’s efforts.
Saudi Arabia’s assurance on Wednesday that the agreed six months of cuts will probably be extended -- a pledge that comes before the deal has even started -- only underscored the prevailing anxiety.
Saudi Arabia Targets $32 Billion of Bond Sales to Bridge Deficit - Bloomberg
Saudi Arabia Targets $32 Billion of Bond Sales to Bridge Deficit - Bloomberg:
Saudi Arabia intends to issue around 120 billion riyals ($32 billion) of bonds next year to help finance its deficit, with plans to tap international markets in the first half, Finance Minister Mohammed Al-Jadaan said.
The kingdom is considering international bonds in dollars and other currencies, Al-Jadaan told Bloomberg TV in Riyadh on Wednesday. The exact timing of the issuances will depend on market conditions. The minister didn’t break down the total into local and international debt.
“We now have access to a wider network of investors in the U.S., which is the primary market, but also in Europe and Asia,” Al-Jadaan said. “So we are expanding and we are likely to go to the international markets early next year.”
Saudi Arabia intends to issue around 120 billion riyals ($32 billion) of bonds next year to help finance its deficit, with plans to tap international markets in the first half, Finance Minister Mohammed Al-Jadaan said.
The kingdom is considering international bonds in dollars and other currencies, Al-Jadaan told Bloomberg TV in Riyadh on Wednesday. The exact timing of the issuances will depend on market conditions. The minister didn’t break down the total into local and international debt.
“We now have access to a wider network of investors in the U.S., which is the primary market, but also in Europe and Asia,” Al-Jadaan said. “So we are expanding and we are likely to go to the international markets early next year.”
OPEC to release country quotas for oil output cut: document | Reuters
OPEC to release country quotas for oil output cut: document | Reuters:
Oil producer group OPEC plans to release a table detailing output cut quotas for its members and allies such as Russia in an effort to shore up the price of crude, OPEC’s secretary-general said in a letter seen by Reuters on Thursday.
Mohammad Barkindo said to reach the proposed cut of 1.2 million barrels per day, the effective reduction for member countries was 3.02 percent.
That is higher than the initially discussed 2.5 percent as OPEC seeks to accommodate Iran, Libya and Venezuela, which are exempt from any requirement to cut. He commended Saudi Arabia for pledging to cut to 10.2 million barrels per day from January, a deeper reduction than allocated.
Oil producer group OPEC plans to release a table detailing output cut quotas for its members and allies such as Russia in an effort to shore up the price of crude, OPEC’s secretary-general said in a letter seen by Reuters on Thursday.
Mohammad Barkindo said to reach the proposed cut of 1.2 million barrels per day, the effective reduction for member countries was 3.02 percent.
That is higher than the initially discussed 2.5 percent as OPEC seeks to accommodate Iran, Libya and Venezuela, which are exempt from any requirement to cut. He commended Saudi Arabia for pledging to cut to 10.2 million barrels per day from January, a deeper reduction than allocated.
#UAE's Al Jaber Group agrees to $1.6 billion debt restructuring: sources | Reuters
UAE's Al Jaber Group agrees to $1.6 billion debt restructuring: sources | Reuters:
Abu Dhabi-based Al Jaber Group has agreed restructuring terms for 5.9 billion dirhams ($1.61 billion) in debt, sources familiar with the matter said, potentially ending a long-running dispute with its creditors.
Under the deal likely to be implemented by the end of March, Al Jaber will reduce debt throught asset sales and a discounted debt buyback mechanism. It will also appoint a new board.
The company did not immediately respond to a request for comment.
Abu Dhabi-based Al Jaber Group has agreed restructuring terms for 5.9 billion dirhams ($1.61 billion) in debt, sources familiar with the matter said, potentially ending a long-running dispute with its creditors.
Under the deal likely to be implemented by the end of March, Al Jaber will reduce debt throught asset sales and a discounted debt buyback mechanism. It will also appoint a new board.
The company did not immediately respond to a request for comment.
COLUMN-Trump takes the 2019 outlook for commodities hostage: Russell | Reuters
COLUMN-Trump takes the 2019 outlook for commodities hostage: Russell | Reuters:
Forecasting the year-ahead outlook for commodities, while popular among analysts, is a bit of a mug’s game at the best of times, but the view for 2019 is made even more complicated by one volatile factor: Donald Trump.
While there are other drivers of commodity prices next year, the mercurial U.S. president looms large over the sector, and the actions of his administration will either amplify or partially nullify the established trends.
Before trying to decipher Trump’s likely actions it’s worth looking at the trends likely to move commodity markets in 2019.
Forecasting the year-ahead outlook for commodities, while popular among analysts, is a bit of a mug’s game at the best of times, but the view for 2019 is made even more complicated by one volatile factor: Donald Trump.
While there are other drivers of commodity prices next year, the mercurial U.S. president looms large over the sector, and the actions of his administration will either amplify or partially nullify the established trends.
Before trying to decipher Trump’s likely actions it’s worth looking at the trends likely to move commodity markets in 2019.
Oil slumps 3 percent, near lowest in a year as stock markets sink | Reuters
Oil slumps 3 percent, near lowest in a year as stock markets sink | Reuters:
Oil prices fell about 3 percent on Thursday, heading back towards their lowest levels for more than a year on worries about oversupply and the outlook for energy demand as stock markets tumbled following a U.S. interest rate rise.
Stock markets dropped worldwide after the U.S. Federal Reserve raised rates and kept most of its guidance for additional hikes over the next two years, dashing investor hopes for a more dovish policy outlook. [MKTS/GLOB]
U.S. light crude oil CLc1 fell $1.61 a barrel, or 3.3 percent, to a low of $46.56 and was trading around $46.70 by 0845 GMT. North Sea Brent LCOc1 was down $1.60, or 2.8 percent, at $55.64 a barrel.
Oil prices fell about 3 percent on Thursday, heading back towards their lowest levels for more than a year on worries about oversupply and the outlook for energy demand as stock markets tumbled following a U.S. interest rate rise.
Stock markets dropped worldwide after the U.S. Federal Reserve raised rates and kept most of its guidance for additional hikes over the next two years, dashing investor hopes for a more dovish policy outlook. [MKTS/GLOB]
U.S. light crude oil CLc1 fell $1.61 a barrel, or 3.3 percent, to a low of $46.56 and was trading around $46.70 by 0845 GMT. North Sea Brent LCOc1 was down $1.60, or 2.8 percent, at $55.64 a barrel.
MIDEAST STOCKS-Real estate hurts #Dubai, all major Gulf markets fall | Reuters
MIDEAST STOCKS-Real estate hurts Dubai, all major Gulf markets fall | Reuters:
Real estate shares led Dubai stock market lower on Thursday, while all major Middle Eastern bourses fell with other global equity markets after the U.S. Federal Reserve hiked rates and oil prices slid.
In Dubai, the index was down 1.1 percent. The index is down more than 25 percent so far this year, making it the worst-performing market in the Middle East.
Developer Union Properties lost 3.7 percent and DAMAC Properties declined 4.1 percent.
Real estate shares led Dubai stock market lower on Thursday, while all major Middle Eastern bourses fell with other global equity markets after the U.S. Federal Reserve hiked rates and oil prices slid.
In Dubai, the index was down 1.1 percent. The index is down more than 25 percent so far this year, making it the worst-performing market in the Middle East.
Developer Union Properties lost 3.7 percent and DAMAC Properties declined 4.1 percent.
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