No one wants to see a Ukraine default – Swiss banker — RT Business:
"As Ukraine’s economy spins towards default, investors and bankers worry the financial turmoil will spill over into global markets, a scenario “nobody wants to deal with,” Arnaud Leclercq, Head of New Markets at Lombard Odier Darier Hentsch & Cie, told RT.
“The situation in the country is already in turmoil, very imbalanced and if you add to that a default, it would probably be a road to a much worse case scenario, that obviously nobody wants,” Leclercq said.
A Ukraine default will happen when the government announces it can no longer meet its debt obligations.
“Nobody would want to deal with that, because it will trigger a number of other consequences for the country itself. A ‘domino effect’ and a social effect,” Leclercq said."
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Friday 7 March 2014
Fitch Upgrades Saudi Arabia to 'AA'; Outlook Stable | Reuters
Fitch Upgrades Saudi Arabia to 'AA'; Outlook Stable | Reuters:
"Link to Fitch Ratings' Report: Saudi Arabia - Rating Action ReportLONDON, March 07 (Fitch) Fitch Ratings has upgraded Saudi Arabia's Long-term foreign and local currency Issuer Default Ratings (IDR) to 'AA' from 'AA-'. The Outlooks are Stable. The Country Ceiling has been upgraded to 'AA+' from 'AA' and the Short-term foreign currency IDR has been affirmed at 'F1+'. KEY RATING DRIVERS The upgrade of Saudi Arabia's IDRs reflects the following key rating drivers and their relative weights: Medium The strong sovereign and external balance sheets have been bolstered. The net creditor position is the strongest of all Fitch-rated sovereigns bar Macao, with government deposits in the banking sector rising to 58.7% of GDP at end-2013 compared with general government debt of just 0.6% of GDP. Net external assets climbed to over 100% of GDP at end-2013, well in excess of the peer median and the position of Kuwait and Abu Dhabi (both AA/Stable). Saudi Arabia does not have sovereign external debt. "
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"Link to Fitch Ratings' Report: Saudi Arabia - Rating Action ReportLONDON, March 07 (Fitch) Fitch Ratings has upgraded Saudi Arabia's Long-term foreign and local currency Issuer Default Ratings (IDR) to 'AA' from 'AA-'. The Outlooks are Stable. The Country Ceiling has been upgraded to 'AA+' from 'AA' and the Short-term foreign currency IDR has been affirmed at 'F1+'. KEY RATING DRIVERS The upgrade of Saudi Arabia's IDRs reflects the following key rating drivers and their relative weights: Medium The strong sovereign and external balance sheets have been bolstered. The net creditor position is the strongest of all Fitch-rated sovereigns bar Macao, with government deposits in the banking sector rising to 58.7% of GDP at end-2013 compared with general government debt of just 0.6% of GDP. Net external assets climbed to over 100% of GDP at end-2013, well in excess of the peer median and the position of Kuwait and Abu Dhabi (both AA/Stable). Saudi Arabia does not have sovereign external debt. "
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Investing in Iraq: a frontier too far? | beyondbrics
Investing in Iraq: a frontier too far? | beyondbrics:
"
There are frontier investment markets, and then there is Iraq. Bombings and fighting killed at least 42 people on Thursday alone, in nine or more separate explosions from Baghdad to Fallujah; yet so commonplace is the violence that the news merited few headlines. After all, at least 24 had died in explosions the previous day.
Yet despite the violence and uncertainty, fund managers and bankers are venturing in to the country, attracted by oil wealth and a surprisingly upbeat outlook for national GDP growth.
On Friday FMG, an emerging market and frontier research group, put out an investment report on Iraq, arguing that: “There is another more promising side to Iraq.”
In the past decade, the report notes, Iraq has tripled its oil production, posted GDP annual growth rates of around 10 per cent, and seen the market capitalisation of its stock exchange almost triple in three years."
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"
Yet despite the violence and uncertainty, fund managers and bankers are venturing in to the country, attracted by oil wealth and a surprisingly upbeat outlook for national GDP growth.
On Friday FMG, an emerging market and frontier research group, put out an investment report on Iraq, arguing that: “There is another more promising side to Iraq.”
In the past decade, the report notes, Iraq has tripled its oil production, posted GDP annual growth rates of around 10 per cent, and seen the market capitalisation of its stock exchange almost triple in three years."
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Nothing is holding back South Stream – Bajatovic – InSerbia News
Nothing is holding back South Stream – Bajatovic – InSerbia News:
"There are no misunderstandings between the Serbian and Russian partners regarding the South Stream gas pipeline project nor is the project being held back by problems in funding and provision of guarantees for loans, Dusan Bajatovic, director general of state-owned natural gas provider Srbijagas, said Thursday.
Speaking at a Russian-Serbian round table on energy in Belgrade on Thursday, Bajatovic said that he expects appropriate solutions regarding a loan agreement for the project to be found next week, adding that the agreement will be signed soon.
This, he said, has also been confirmed by First Deputy Prime Minister Aleksandar Vucic.
Bajatovic said that the technical part of the tender for contractors in the construction of the section of South Stream through Serbia has been completed and the contractors will be chosen by the end of April."
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"There are no misunderstandings between the Serbian and Russian partners regarding the South Stream gas pipeline project nor is the project being held back by problems in funding and provision of guarantees for loans, Dusan Bajatovic, director general of state-owned natural gas provider Srbijagas, said Thursday.
Speaking at a Russian-Serbian round table on energy in Belgrade on Thursday, Bajatovic said that he expects appropriate solutions regarding a loan agreement for the project to be found next week, adding that the agreement will be signed soon.
This, he said, has also been confirmed by First Deputy Prime Minister Aleksandar Vucic.
Bajatovic said that the technical part of the tender for contractors in the construction of the section of South Stream through Serbia has been completed and the contractors will be chosen by the end of April."
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Dubai World plans new asset sales to repay $4.4bn debt due next year | The National
Dubai World plans new asset sales to repay $4.4bn debt due next year | The National:
"Dubai World, the government conglomerate, is planning new asset sales as it seeks to repay about US$4.4 billion of debts due next year as part of its overall $25bn restructuring.
The new disposals follow the company’s early repayment of about $284.5 million to creditors under the terms of the 2010 deal with banks to settle Dubai World’s debt problems. When Dubai World announced in November that it was looking for a standstill deal with its lenders, it triggered the financial crisis from which the emirate is now emerging.
A source close to the company said assets that could come under the hammer included investments made by Dubai World and its subsidiary, Istithmar World, before the financial crisis."
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"Dubai World, the government conglomerate, is planning new asset sales as it seeks to repay about US$4.4 billion of debts due next year as part of its overall $25bn restructuring.
The new disposals follow the company’s early repayment of about $284.5 million to creditors under the terms of the 2010 deal with banks to settle Dubai World’s debt problems. When Dubai World announced in November that it was looking for a standstill deal with its lenders, it triggered the financial crisis from which the emirate is now emerging.
A source close to the company said assets that could come under the hammer included investments made by Dubai World and its subsidiary, Istithmar World, before the financial crisis."
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Ducab buys UK's AEI Cables | The National
Ducab buys UK's AEI Cables | The National:
"Ducab has bought the United Kingdom-based AEI Cables, its first overseas manufacturing plant.
The Jebel Ali-based cable manufacturer yesterday confirmed reports in the UK this week that it had acquired the troubled AEI Cables, located in County Durham, north-east England.
Ducab will acquire all the manufacturing assets of AEI, along with a workforce of 200 people.
AEI entered a restructuring process through a company voluntary arrangement in 2011 after cash-flow problems, laying off 126 staff."
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"Ducab has bought the United Kingdom-based AEI Cables, its first overseas manufacturing plant.
The Jebel Ali-based cable manufacturer yesterday confirmed reports in the UK this week that it had acquired the troubled AEI Cables, located in County Durham, north-east England.
Ducab will acquire all the manufacturing assets of AEI, along with a workforce of 200 people.
AEI entered a restructuring process through a company voluntary arrangement in 2011 after cash-flow problems, laying off 126 staff."
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Rift over Qatar may slow investment, reforms | GulfNews.com
Rift over Qatar may slow investment, reforms | GulfNews.com:
"A diplomatic split between Qatar and its neighbours may disrupt billions of dollars of investment in the region and slow efforts to make economies more efficient through trade and transport reforms.
Qatar’s vast natural gas wealth means the tiny country, with a population of about 2.1 million, could probably continue operating indefinitely despite the displeasure of Saudi Arabia, the United Arab Emirates and Bahrain.
But its growth may slow if its trade and investment ties with the big Gulf Arab economies are scaled back. All the economies in the region could suffer in the long term if diplomatic tensions stall projects such as construction of a Gulf railway network and development of a free-trade area."
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"A diplomatic split between Qatar and its neighbours may disrupt billions of dollars of investment in the region and slow efforts to make economies more efficient through trade and transport reforms.
Qatar’s vast natural gas wealth means the tiny country, with a population of about 2.1 million, could probably continue operating indefinitely despite the displeasure of Saudi Arabia, the United Arab Emirates and Bahrain.
But its growth may slow if its trade and investment ties with the big Gulf Arab economies are scaled back. All the economies in the region could suffer in the long term if diplomatic tensions stall projects such as construction of a Gulf railway network and development of a free-trade area."
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Saudi economy ‘dependent on Indian workers’ | GulfNews.com
Saudi economy ‘dependent on Indian workers’ | GulfNews.com:
"Enhanced strategic ties and defence cooperation will encourage Indians and Saudis to boost two-way investments, which are currently far below the potential, the Saudi-India business council chief has said, adding that the kingdom’s economy is “dependent on Indian workers”.
“Improvements in strategic and political relations have positive impacts on businesses. The defence cooperation will have a big positive impact on investments and trade,” said Kamel S. Al Munajjed, chairman of the Saudi-India Joint Business Council, told IANS in an interview.
India and Saudi Arabia signed a memorandum of understanding on defence cooperation during the official visit of the oil-rich Gulf kingdom’s Crown Prince Salman Bin Abdul Aziz Al Saud here last week."
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"Enhanced strategic ties and defence cooperation will encourage Indians and Saudis to boost two-way investments, which are currently far below the potential, the Saudi-India business council chief has said, adding that the kingdom’s economy is “dependent on Indian workers”.
“Improvements in strategic and political relations have positive impacts on businesses. The defence cooperation will have a big positive impact on investments and trade,” said Kamel S. Al Munajjed, chairman of the Saudi-India Joint Business Council, told IANS in an interview.
India and Saudi Arabia signed a memorandum of understanding on defence cooperation during the official visit of the oil-rich Gulf kingdom’s Crown Prince Salman Bin Abdul Aziz Al Saud here last week."
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JPMorgan Says Sell Russia Stocks as Bulls Unwind Bets on Ukraine - Bloomberg
JPMorgan Says Sell Russia Stocks as Bulls Unwind Bets on Ukraine - Bloomberg:
"JPMorgan Chase & Co. recommended cutting Russian stock holdings on concern foreign investors will unwind bullish bets amid elevated tensions over Ukraine.
The bank reduced its rating to underweight from overweight, according to a report by strategists including Hong Kong-based Adrian Mowat dated yesterday. Emerging-market money managers will probably cut positions because their Russian holdings were more than double the long-term average in January, Mowat wrote.
JPMorgan is betting it’s not too late to sell after President Vladimir Putin’s buildup of Russian troops in Ukraine prompted a threat of economic sanctions from the U.S. and fueled a 10 percent tumble in the benchmark Micex index during the past two weeks. The central bank’s efforts to stem the ruble’s slide to a record by raising interest rates will weigh on economic growth and the stock market, according to Mowat."
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"JPMorgan Chase & Co. recommended cutting Russian stock holdings on concern foreign investors will unwind bullish bets amid elevated tensions over Ukraine.
The bank reduced its rating to underweight from overweight, according to a report by strategists including Hong Kong-based Adrian Mowat dated yesterday. Emerging-market money managers will probably cut positions because their Russian holdings were more than double the long-term average in January, Mowat wrote.
JPMorgan is betting it’s not too late to sell after President Vladimir Putin’s buildup of Russian troops in Ukraine prompted a threat of economic sanctions from the U.S. and fueled a 10 percent tumble in the benchmark Micex index during the past two weeks. The central bank’s efforts to stem the ruble’s slide to a record by raising interest rates will weigh on economic growth and the stock market, according to Mowat."
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Emerging World Poses More Danger Than in 1990s: Cutting Research - Bloomberg
Emerging World Poses More Danger Than in 1990s: Cutting Research - Bloomberg:
"Developed economies are less resilient to an emerging-market shock than they were in the 1990s, when crises from Thailand to Russia rattled investors without triggering a global recession.
That’s according to an 81-page study released March 5 by Morgan Stanley economists and strategists. They estimate a 1990s-style slump in emerging-market demand would create an average drag of 1.4 percent for four quarters on the growth of the U.S., while the euro area and Japan probably would be tipped into recession.
Reasons for the greater vulnerability include the fact that developing markets, and especially China, now have a stronger impact on the world’s economy, supply chains and trade. Emerging economies account for about half of global gross domestic product, up from 37 percent in 1997-1998."
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"Developed economies are less resilient to an emerging-market shock than they were in the 1990s, when crises from Thailand to Russia rattled investors without triggering a global recession.
That’s according to an 81-page study released March 5 by Morgan Stanley economists and strategists. They estimate a 1990s-style slump in emerging-market demand would create an average drag of 1.4 percent for four quarters on the growth of the U.S., while the euro area and Japan probably would be tipped into recession.
Reasons for the greater vulnerability include the fact that developing markets, and especially China, now have a stronger impact on the world’s economy, supply chains and trade. Emerging economies account for about half of global gross domestic product, up from 37 percent in 1997-1998."
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Putin Sparking Worst Stock Rout Since Moscow Crackdown - Bloomberg
Putin Sparking Worst Stock Rout Since Moscow Crackdown - Bloomberg:
"The last time Russian stocks fell as much as they have this week was when President Vladimir Putin cracked down on protesters following his election in May 2012.
Putin’s incursion into Ukraine’s Crimea region, like the imprisonment of demonstrators following his return to the presidency two years ago, is sparking investor concern that Russia’s economic growth will falter as the U.S. and Europe threaten the country with sanctions. The Bloomberg Russia-US Equity Index of the most-traded Russian companies in the U.S. has fallen 5.1 percent this week, the most since the measure dropped 11 percent in the five days to May 18, 2012."
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"The last time Russian stocks fell as much as they have this week was when President Vladimir Putin cracked down on protesters following his election in May 2012.
Putin’s incursion into Ukraine’s Crimea region, like the imprisonment of demonstrators following his return to the presidency two years ago, is sparking investor concern that Russia’s economic growth will falter as the U.S. and Europe threaten the country with sanctions. The Bloomberg Russia-US Equity Index of the most-traded Russian companies in the U.S. has fallen 5.1 percent this week, the most since the measure dropped 11 percent in the five days to May 18, 2012."
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