SEBI to further probe Jet-Etihad deal, Abu Dhabi carrier officials may be called - The Economic Times:
"In further regulatory turbulence for Rs 2,060 crore Jet-Etihad deal, capital market regulator Sebi has initiated fresh proceedings against the Abu Dhabi carrier, whose officials may be called for personal hearing next month to explain their stance.
Etihad, which has purchased 24 per cent stake in Jet Airways, has rejected any obligation to make an open offer for minority shareholders, but Sebi is not yet convinced with its justification for the same, sources said.
Etihad officials will be called for a personal hearing early next month to explain its position and why action should not be taken against the carrier for not making an open offer as it is getting joint control and substantial rights in running Naresh goyal-led Indian airline, sources said.
"
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Friday, 28 March 2014
IMF urges #Bahrain to retarget subsidies, control spending - ArabianBusiness.com
IMF urges Bahrain to retarget subsidies, control spending - Politics & Economics - ArabianBusiness.com:
"Bahrain needs to retarget is subsidies to lower income families while controlling other spending commitments in a bid to stabilise debt levels, according to a new report by the International Monetary Fund (IMF).
Following an IMF mission to the Gulf kingdom, officials have said that despite a GDP growth of 4.9 percent last year, authorities need to make fiscal adjustment a priority.
The mission noted that Bahrain's state budget deficit is expected to continue to rise in the medium term."
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"Bahrain needs to retarget is subsidies to lower income families while controlling other spending commitments in a bid to stabilise debt levels, according to a new report by the International Monetary Fund (IMF).
Following an IMF mission to the Gulf kingdom, officials have said that despite a GDP growth of 4.9 percent last year, authorities need to make fiscal adjustment a priority.
The mission noted that Bahrain's state budget deficit is expected to continue to rise in the medium term."
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Fitch: Ukraine's IMF Deal Positive, Major Challenges Remain | Reuters #EuroMaidan
Fitch: Ukraine's IMF Deal Positive, Major Challenges Remain | Reuters:
"LONDON, March 28 (Fitch) The announcement of a staff-level agreement for a Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) supports Ukraine's credit profile, Fitch Ratings says. It increases the likelihood of the sovereign gaining access to external financing. It may also spur structural reforms that reduce imbalances and address Ukraine's twin deficits. However, there are significant risks to implementing the programme in light of the continuing geopolitical risk in the region and the possibility of a further escalation of the crisis, and the domestic political and economic situation following the fall of Viktor Yanukovych's government and the the incorporation of Crimea into the Russian Federation. Failure to take unpopular measures has seen previous IMF agreements suspended, and structural reform will be a long-term process. The scale of the challenges facing Ukraine is reflected in our 'CCC' foreign-currency sovereign rating, which denotes substantial credit risk."
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"LONDON, March 28 (Fitch) The announcement of a staff-level agreement for a Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) supports Ukraine's credit profile, Fitch Ratings says. It increases the likelihood of the sovereign gaining access to external financing. It may also spur structural reforms that reduce imbalances and address Ukraine's twin deficits. However, there are significant risks to implementing the programme in light of the continuing geopolitical risk in the region and the possibility of a further escalation of the crisis, and the domestic political and economic situation following the fall of Viktor Yanukovych's government and the the incorporation of Crimea into the Russian Federation. Failure to take unpopular measures has seen previous IMF agreements suspended, and structural reform will be a long-term process. The scale of the challenges facing Ukraine is reflected in our 'CCC' foreign-currency sovereign rating, which denotes substantial credit risk."
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Fitch: Ukraine's IMF Deal Positive, Major Challenges Remain | Reuters #EuroMaidan
Fitch: Ukraine's IMF Deal Positive, Major Challenges Remain | Reuters:
"LONDON, March 28 (Fitch) The announcement of a staff-level agreement for a Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) supports Ukraine's credit profile, Fitch Ratings says. It increases the likelihood of the sovereign gaining access to external financing. It may also spur structural reforms that reduce imbalances and address Ukraine's twin deficits. However, there are significant risks to implementing the programme in light of the continuing geopolitical risk in the region and the possibility of a further escalation of the crisis, and the domestic political and economic situation following the fall of Viktor Yanukovych's government and the the incorporation of Crimea into the Russian Federation. Failure to take unpopular measures has seen previous IMF agreements suspended, and structural reform will be a long-term process. The scale of the challenges facing Ukraine is reflected in our 'CCC' foreign-currency sovereign rating, which denotes substantial credit risk."
'via Blog this'
"LONDON, March 28 (Fitch) The announcement of a staff-level agreement for a Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) supports Ukraine's credit profile, Fitch Ratings says. It increases the likelihood of the sovereign gaining access to external financing. It may also spur structural reforms that reduce imbalances and address Ukraine's twin deficits. However, there are significant risks to implementing the programme in light of the continuing geopolitical risk in the region and the possibility of a further escalation of the crisis, and the domestic political and economic situation following the fall of Viktor Yanukovych's government and the the incorporation of Crimea into the Russian Federation. Failure to take unpopular measures has seen previous IMF agreements suspended, and structural reform will be a long-term process. The scale of the challenges facing Ukraine is reflected in our 'CCC' foreign-currency sovereign rating, which denotes substantial credit risk."
'via Blog this'
U.S. Oil Boom Shifts Alliance as Obama Visits Saudi King - Bloomberg
U.S. Oil Boom Shifts Alliance as Obama Visits Saudi King - Bloomberg:
"When Barack Obama sits down tomorrow with Saudi Arabia’s King Abdullah, he’ll do so knowing the U.S. is importing the least crude in two decades, a shift changing America’s strongest relationship in the Arab world.
Five years after Obama’s first visit to Riyadh, the drilling of shale oil fields from North Dakota to Texas has put the U.S. on the path to energy independence, weakening economic interdependence between the two nations as they work through disagreements on Syria and Iran.
The U.S. energy boom that’s upended global markets is now reshaping political alliances built over decades. Almost 70 years after Franklin Roosevelt cemented relations with the Saudi royal family, the U.S. finds itself free to address policy differences with oil as less of a bargaining chip, analysts said. The shift gives the U.S. a freer hand in shaping Middle East policy, especially in seeking an accommodation with Iran while lessening Saudi influence in Washington."
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"When Barack Obama sits down tomorrow with Saudi Arabia’s King Abdullah, he’ll do so knowing the U.S. is importing the least crude in two decades, a shift changing America’s strongest relationship in the Arab world.
Five years after Obama’s first visit to Riyadh, the drilling of shale oil fields from North Dakota to Texas has put the U.S. on the path to energy independence, weakening economic interdependence between the two nations as they work through disagreements on Syria and Iran.
The U.S. energy boom that’s upended global markets is now reshaping political alliances built over decades. Almost 70 years after Franklin Roosevelt cemented relations with the Saudi royal family, the U.S. finds itself free to address policy differences with oil as less of a bargaining chip, analysts said. The shift gives the U.S. a freer hand in shaping Middle East policy, especially in seeking an accommodation with Iran while lessening Saudi influence in Washington."
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Oil pipeline politics take a toll on Kurdish business | The National
Oil pipeline politics take a toll on Kurdish business | The National:
"Maher Akrawe was making a killing with his business in Erbil late last year.
The surge of contracts and investment projects provided plentiful opportunities for the construction contractor.
Today, he is taking small works on existing projects and complaining that business has dried up ever since political tensions between Erbil and Baghdad peaked this year.
“It’s not the same,” Mr Akrawe said. “There’s no money. Everyone is being affected here.”
The political row was ignited late last year after it emerged that the Kurdistan Regional Authority (KRG) planned to build an oil pipeline and sell crude independently to Turkey, breaking sovereignty norms. The government in Baghdad retaliated by cutting the Kurdish region from the national budget."
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"Maher Akrawe was making a killing with his business in Erbil late last year.
The surge of contracts and investment projects provided plentiful opportunities for the construction contractor.
Today, he is taking small works on existing projects and complaining that business has dried up ever since political tensions between Erbil and Baghdad peaked this year.
“It’s not the same,” Mr Akrawe said. “There’s no money. Everyone is being affected here.”
The political row was ignited late last year after it emerged that the Kurdistan Regional Authority (KRG) planned to build an oil pipeline and sell crude independently to Turkey, breaking sovereignty norms. The government in Baghdad retaliated by cutting the Kurdish region from the national budget."
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Middle East funds going bullish for equities | The National
Middle East funds going bullish for equities | The National:
"Middle East fund managers are willing to buy most of the region’s main equity markets on dips, believing corporate earnings and balance sheets will continue improving this year, a monthly Reuters survey shows.
Markets retreated early this month as retail investors rushed to take profits during the worst of the geopolitical uncertainty over Ukraine. Dubai’s bourse fell 6.7 per cent from its peak close to its trough. Qatar’s bourse dropped 3.8 per cent.
But many fund managers said they did not view the pull-back as a sign of long-term vulnerability in the markets, but as an opportunity created by natural volatility."
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"Middle East fund managers are willing to buy most of the region’s main equity markets on dips, believing corporate earnings and balance sheets will continue improving this year, a monthly Reuters survey shows.
Markets retreated early this month as retail investors rushed to take profits during the worst of the geopolitical uncertainty over Ukraine. Dubai’s bourse fell 6.7 per cent from its peak close to its trough. Qatar’s bourse dropped 3.8 per cent.
But many fund managers said they did not view the pull-back as a sign of long-term vulnerability in the markets, but as an opportunity created by natural volatility."
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Dubai’s Damac picks banks for potential sukuk issue -IFR | GulfNews.com
Dubai’s Damac picks banks for potential sukuk issue -IFR | GulfNews.com:
"Dubai developer Damac Real Estate will meet investors in Singapore, the UAE and London from March 28 for a potential offering of a dollar-denominated sukuk, Thomson Reuters service IFR reported on Thursday.
London-listed Damac has appointed Barclays, Citigroup, and Deutsche Bank as joint global coordinators, as well as joint lead managers with Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital and National Bank of Abu Dhabi to arrange the meetings.
Damac did not say how much it could borrow or provide any other details."
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"Dubai developer Damac Real Estate will meet investors in Singapore, the UAE and London from March 28 for a potential offering of a dollar-denominated sukuk, Thomson Reuters service IFR reported on Thursday.
London-listed Damac has appointed Barclays, Citigroup, and Deutsche Bank as joint global coordinators, as well as joint lead managers with Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital and National Bank of Abu Dhabi to arrange the meetings.
Damac did not say how much it could borrow or provide any other details."
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Moody’s assigns credit positive to Gulf telecom operators | GulfNews.com
Moody’s assigns credit positive to Gulf telecom operators | GulfNews.com:
"Moody’s has given a credit positive to Gulf telecom operators who have signed deals to share their mobile networks.
On March 18, Etisalat (Aa3 stable) signed a memorandum of understanding with six other mobile telephony companies active in the Middle East and Africa – among them Ooredoo (A2 stable) and Saudi Telecom Company (STC, A1 stable).
“The pact is credit positive because the telecom operators within Gulf Cooperation Council (GCC) countries – Etisalat, Ooredoo and STC – will benefit from lower operating costs and more efficient uses of capital owing to the infrastructure-sharing agreement. Reduced costs will help operating profitability, which has been declining for a number of years,” Martin Kohlhase, vice-president – Senior Analyst at Moody’s, said in the Moody’s Credit Outlook, a biweekly newsletter."
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"Moody’s has given a credit positive to Gulf telecom operators who have signed deals to share their mobile networks.
On March 18, Etisalat (Aa3 stable) signed a memorandum of understanding with six other mobile telephony companies active in the Middle East and Africa – among them Ooredoo (A2 stable) and Saudi Telecom Company (STC, A1 stable).
“The pact is credit positive because the telecom operators within Gulf Cooperation Council (GCC) countries – Etisalat, Ooredoo and STC – will benefit from lower operating costs and more efficient uses of capital owing to the infrastructure-sharing agreement. Reduced costs will help operating profitability, which has been declining for a number of years,” Martin Kohlhase, vice-president – Senior Analyst at Moody’s, said in the Moody’s Credit Outlook, a biweekly newsletter."
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Rusal Posts $3.2 Billion Annual Loss on Prices, Writedowns - Bloomberg
Rusal Posts $3.2 Billion Annual Loss on Prices, Writedowns - Bloomberg:
"United Co. Rusal (486) posted the biggest annual loss since 2008 as the world’s largest aluminum producer wrote down the value of assets after prices of the metal fell.
The net loss widened to $3.2 billion in 2013 from a restated loss of $528 million a year earlier, Moscow-based Rusal said today in a statement. Adjusted earnings before interest, taxes, depreciation and amortization fell 29 percent to $651 million, missing the $692.6 million average of 10 analyst estimates compiled by Bloomberg. Revenue fell 10 percent to $9.8 billion as the company cut output to curb costs as prices fell.
Rusal has idled smelting capacity in the past year, taking its most inefficient plants offline and cutting 2013 output to 3.9 million metric tons. The cuts accompanied an 8 percent drop in the average price of aluminum on the London Metal Exchange. The company wrote down about $2 billion of assets, including its Taishet project, according to the statement today."
'via Blog this'
"United Co. Rusal (486) posted the biggest annual loss since 2008 as the world’s largest aluminum producer wrote down the value of assets after prices of the metal fell.
The net loss widened to $3.2 billion in 2013 from a restated loss of $528 million a year earlier, Moscow-based Rusal said today in a statement. Adjusted earnings before interest, taxes, depreciation and amortization fell 29 percent to $651 million, missing the $692.6 million average of 10 analyst estimates compiled by Bloomberg. Revenue fell 10 percent to $9.8 billion as the company cut output to curb costs as prices fell.
Rusal has idled smelting capacity in the past year, taking its most inefficient plants offline and cutting 2013 output to 3.9 million metric tons. The cuts accompanied an 8 percent drop in the average price of aluminum on the London Metal Exchange. The company wrote down about $2 billion of assets, including its Taishet project, according to the statement today."
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Ukraine’s IMF Deal Wins Over SocGen as Bonds Get Buy Tag - Bloomberg
Ukraine’s IMF Deal Wins Over SocGen as Bonds Get Buy Tag - Bloomberg:
"Societe Generale SA made Ukraine one of its top emerging-market bond recommendations after the country won an International Monetary Fund aid package to help stave off default.
The French bank raised its recommendation on Ukrainian bonds from neutral, saying the notes have the “largest overweight call” among emerging-market Eurobonds as the IMF pledged to help the country meet its debt maturities over the next two years. The government’s bonds due 2023 rose to 91.8 cents on the dollar yesterday, trimming the yield 0.59 percentage point to a two-month low of 8.84 percent.
International lenders will provide $27 billion of loans after Ukraine takes steps to stabilize its economy, the IMF said in a statement yesterday. The government signed a political pact with the European Union a week ago, after the ouster of the pro-Russia President Viktor Yanukovych prompted Russia to stop lending to its former Soviet vassal state and annex the Crimea region."
'via Blog this'
"Societe Generale SA made Ukraine one of its top emerging-market bond recommendations after the country won an International Monetary Fund aid package to help stave off default.
The French bank raised its recommendation on Ukrainian bonds from neutral, saying the notes have the “largest overweight call” among emerging-market Eurobonds as the IMF pledged to help the country meet its debt maturities over the next two years. The government’s bonds due 2023 rose to 91.8 cents on the dollar yesterday, trimming the yield 0.59 percentage point to a two-month low of 8.84 percent.
International lenders will provide $27 billion of loans after Ukraine takes steps to stabilize its economy, the IMF said in a statement yesterday. The government signed a political pact with the European Union a week ago, after the ouster of the pro-Russia President Viktor Yanukovych prompted Russia to stop lending to its former Soviet vassal state and annex the Crimea region."
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BRIC Bust Fuels Investor Rush Into Frontier-Market ETFs - Bloomberg
BRIC Bust Fuels Investor Rush Into Frontier-Market ETFs - Bloomberg:
"As investors dump emerging-market equities at an unprecedented clip, they’re turning more and more to frontier markets in search of the next growth story.
No exchange-traded fund focused on developing nations has grown faster in the past year than BlackRock Inc. (BLK)’s iShares MSCI Frontier 100 fund, whose biggest holdings are in Kuwait and Qatar. Assets under management surged nine-fold to $581 million, fueled by $458 million of inflows and returns of 22 percent. In contrast, BlackRock and Vanguard Group Inc.’s flagship emerging-market exchange-traded funds have seen investors pull a record $26 billion in the period, according to data compiled by Bloomberg. The MSCI BRIC Index is down 5.4 percent this quarter, even as it is poised for its best week of gains this week.
While Brazil, Russia, India and China led the global economy out of the 2008 financial crisis, investors have been fleeing the biggest developing nations as their growth sputters."
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"As investors dump emerging-market equities at an unprecedented clip, they’re turning more and more to frontier markets in search of the next growth story.
No exchange-traded fund focused on developing nations has grown faster in the past year than BlackRock Inc. (BLK)’s iShares MSCI Frontier 100 fund, whose biggest holdings are in Kuwait and Qatar. Assets under management surged nine-fold to $581 million, fueled by $458 million of inflows and returns of 22 percent. In contrast, BlackRock and Vanguard Group Inc.’s flagship emerging-market exchange-traded funds have seen investors pull a record $26 billion in the period, according to data compiled by Bloomberg. The MSCI BRIC Index is down 5.4 percent this quarter, even as it is poised for its best week of gains this week.
While Brazil, Russia, India and China led the global economy out of the 2008 financial crisis, investors have been fleeing the biggest developing nations as their growth sputters."
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