Ukraine Break-Up: Economist Spells Out the Risk to Bonds - MoneyBeat - WSJ:
"Ukraine’s bondholders could face losses if the country’s southeastern regions break away from Kiev, according to Bank of America Merrill Lynch.
Separatists in Donetsk and Luhansk held referendums at the weekend, which Ukraine said were illegal, where organizers said roughly 9 out of every 10 voters called for independence from Ukraine amid the ongoing tensions with Russia.
Should those two regions and neighboring Kharkiv succeed in splitting from Ukraine, the International Monetary Fund–which last month approved a $17 billion aid program for the country–could call for some form of debt restructuring, said Vadim Khramov, an economist at Bank of America Merrill Lynch.
In a more extreme scenario where all eight southeastern ‘Novorossiya’ regions were to break away (including Dnipropetrovsk, Zaporizhya, Mykolayiv, Kherson and Odessa,) Ukraine’s debt load would become unsustainable and the IMF, which has said it would need to re-design Ukraine’s aid program if the country loses control over its eastern regions, could demand debt restructuring with bondholders taking a sizeable hit, Mr. Khramov said. The IMF couldn’t immediately be reached for comment.
"
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Tuesday, 13 May 2014
Saudi Arabia ready to negotiate better ties with Iran: FM | News , Middle East | THE DAILY STAR
Saudi Arabia ready to negotiate better ties with Iran: FM | News , Middle East | THE DAILY STAR:
"Saudi Arabia is ready to negotiate better relations with regional rival Iran, Foreign Minister Prince Saud al-Faisal told reporters in Riyadh on Tuesday.
His comments came as major powers held a fresh round of nuclear talks with Iran over its controversial nuclear programme amid a rapprochement between Tehran and the West.
"Iran is a neighbour, we have relations with them and we will negotiate with them," the Saudi minister said."
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"Saudi Arabia is ready to negotiate better relations with regional rival Iran, Foreign Minister Prince Saud al-Faisal told reporters in Riyadh on Tuesday.
His comments came as major powers held a fresh round of nuclear talks with Iran over its controversial nuclear programme amid a rapprochement between Tehran and the West.
"Iran is a neighbour, we have relations with them and we will negotiate with them," the Saudi minister said."
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MIDEAST STOCKS-Insurance deal lifts Qatar to record high; most mkts gain | Reuters
MIDEAST STOCKS-Insurance deal lifts Qatar to record high; most mkts gain | Reuters:
"Qatar Insurance Company lifted the Gulf state's stock market to an all-time high on Tuesday after winning a large contract to provide services to the nation's new main international airport.
Most other markets in the region also advanced. Dubai led gains as it recovered from a sharp drop earlier this week.
Shares in Qatar Insurance Co rose their daily limit of 10 percent after Qatar Civil Aviation Authority said the company would provide insurance services for the newly opened Hamad International Airport for a value of 45.97 billion riyals ($12.63 billion).
The stock was the main support for the Doha benchmark , which climbed 0.8 percent to a new all-time closing high of 13,175 points, breaking through resistance at the 2005 intra-day peak of 13,069 points."
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"Qatar Insurance Company lifted the Gulf state's stock market to an all-time high on Tuesday after winning a large contract to provide services to the nation's new main international airport.
Most other markets in the region also advanced. Dubai led gains as it recovered from a sharp drop earlier this week.
Shares in Qatar Insurance Co rose their daily limit of 10 percent after Qatar Civil Aviation Authority said the company would provide insurance services for the newly opened Hamad International Airport for a value of 45.97 billion riyals ($12.63 billion).
The stock was the main support for the Doha benchmark , which climbed 0.8 percent to a new all-time closing high of 13,175 points, breaking through resistance at the 2005 intra-day peak of 13,069 points."
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LNG Cargoes Damping U.K. Natural Gas Prices as Pound Beats Yen - Businessweek
LNG Cargoes Damping U.K. Natural Gas Prices as Pound Beats Yen - Businessweek:
"Increased liquefied natural gas deliveries into the U.K. are helping damp prices in Europe’s biggest market as a stronger pound helps narrow the discount of the chilled fuel in Europe to Asia.
The discount of LNG in southwest Europe to prices in northeast Asia fell to its lowest in more than a year on May 5, according to World Gas Intelligence assessments for delivery in four to eight weeks. U.K. gas supply from LNG terminals, which get most of their fuel from Qatar, last month rose to near five-year average levels from near the lowest since 2009 at the end of November, National Grid Plc data show.
U.K. natural gas fell for a fifth month in April after the mildest winter in seven years reduced demand for fuel to pump into storage before the winter heating season. Britain’s currency jumped 9.5 percent in the past year, the best performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes, as spreading economic growth boosts bets the Bank of England will raise interest rates. That compares with a 2.3 percent weakening in the yen."
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"Increased liquefied natural gas deliveries into the U.K. are helping damp prices in Europe’s biggest market as a stronger pound helps narrow the discount of the chilled fuel in Europe to Asia.
The discount of LNG in southwest Europe to prices in northeast Asia fell to its lowest in more than a year on May 5, according to World Gas Intelligence assessments for delivery in four to eight weeks. U.K. gas supply from LNG terminals, which get most of their fuel from Qatar, last month rose to near five-year average levels from near the lowest since 2009 at the end of November, National Grid Plc data show.
U.K. natural gas fell for a fifth month in April after the mildest winter in seven years reduced demand for fuel to pump into storage before the winter heating season. Britain’s currency jumped 9.5 percent in the past year, the best performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes, as spreading economic growth boosts bets the Bank of England will raise interest rates. That compares with a 2.3 percent weakening in the yen."
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Kuwait signs $3bn deal to buy gas from BP - Al Arabiya News
Kuwait signs $3bn deal to buy gas from BP - Al Arabiya News:
"Kuwait signed a five-year liquefied natural gas (LNG) supply deal with BP on Tuesday, worth an estimated $3 billion, as it seeks to meet rising energy demand to power air conditioning during scorching Gulf summers.
Kuwait, a major OPEC oil producer, already signed a $12 billion LNG supply deal with Royal Dutch Shell on Sunday and will also import gas from fellow Gulf state Qatar.
The BP deal, signed by state-run Kuwait Petroleum Corp (KPC), will help Kuwait run its power plants through the hottest time of the year."
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"Kuwait signed a five-year liquefied natural gas (LNG) supply deal with BP on Tuesday, worth an estimated $3 billion, as it seeks to meet rising energy demand to power air conditioning during scorching Gulf summers.
Kuwait, a major OPEC oil producer, already signed a $12 billion LNG supply deal with Royal Dutch Shell on Sunday and will also import gas from fellow Gulf state Qatar.
The BP deal, signed by state-run Kuwait Petroleum Corp (KPC), will help Kuwait run its power plants through the hottest time of the year."
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Lagarde: Arab countries cannot remain in transition forever « ASHARQ AL-AWSAT
Lagarde: Arab countries cannot remain in transition forever « ASHARQ AL-AWSAT:
"Arab countries currently transitioning to democracy need to issue long-term economic policies if they are to bypass this transitional stage, IMF chief Christine Lagarde said on Monday.
Speaking to Asharq Al-Awsat on the sidelines of an IMF-sponsored conference in Amman, Jordan, Lagarde said: “The transitional phase cannot last forever. [Arab] countries must build for a long-term future.”
Lagarde also called on Arab governments to enact major structural economic reforms—especially for energy and food subsidies, which cost Arab governments 237 billion US dollars annually according to IMF figures—and to open the way for greater private sector involvement in their economies. “When the private sector’s confidence in investment increases, the likelihood of job creation increases,” she said."
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"Arab countries currently transitioning to democracy need to issue long-term economic policies if they are to bypass this transitional stage, IMF chief Christine Lagarde said on Monday.
Speaking to Asharq Al-Awsat on the sidelines of an IMF-sponsored conference in Amman, Jordan, Lagarde said: “The transitional phase cannot last forever. [Arab] countries must build for a long-term future.”
Lagarde also called on Arab governments to enact major structural economic reforms—especially for energy and food subsidies, which cost Arab governments 237 billion US dollars annually according to IMF figures—and to open the way for greater private sector involvement in their economies. “When the private sector’s confidence in investment increases, the likelihood of job creation increases,” she said."
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Alitalia shareholders agree more talks with Abu Dhabi’s Etihad - Al Arabiya News
Alitalia shareholders agree more talks with Abu Dhabi’s Etihad - Al Arabiya News:
"The Italian government, banks and Alitalia shareholders agreed on Monday that talks should continue with Gulf-based airline Etihad over a potential link-up, a government statement said.
The statement, issued after a two-hour meeting and conference call, said a deal with Etihad would be a significant opportunity for Alitalia and for Italy. Participants discussed the state of the negotiations and Etihad’s requests.
The government said it urged Alitalia management to continue the talks, adding that more meetings would take place between the two airlines in the next few days.
"
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"The Italian government, banks and Alitalia shareholders agreed on Monday that talks should continue with Gulf-based airline Etihad over a potential link-up, a government statement said.
The statement, issued after a two-hour meeting and conference call, said a deal with Etihad would be a significant opportunity for Alitalia and for Italy. Participants discussed the state of the negotiations and Etihad’s requests.
The government said it urged Alitalia management to continue the talks, adding that more meetings would take place between the two airlines in the next few days.
"
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Russia stakes out Iranian market - Al-Monitor: the Pulse of the Middle East
Russia stakes out Iranian market - Al-Monitor: the Pulse of the Middle East:
"Over the past few weeks, Russia has taken steps to develop its trade and economic ties with Tehran, which plunged to a record low of $1.59 billion last year. In 2013, according to Russian Minister of Energy Alexander Novak, this amounted to a reduction of 31.5%, a consequence of the unilateral US and EU sanctions imposed in mid-2012, which forced companies such as Lukoil and Gazprom Neft to leave the Iranian market.
The situation should have changed with the agreement reached between Russian President Vladimir V. Putin and his Iranian counterpart, Hassan Rouhani, during the SCO Summit in Bishkek in September 2013, which caused a stir and under the terms of which 500,000 barrels per day of Iranian oil would be delivered in exchange for Russian goods and equipment. By rough estimates, that is 12% of the oil extractable daily in Iran."
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"Over the past few weeks, Russia has taken steps to develop its trade and economic ties with Tehran, which plunged to a record low of $1.59 billion last year. In 2013, according to Russian Minister of Energy Alexander Novak, this amounted to a reduction of 31.5%, a consequence of the unilateral US and EU sanctions imposed in mid-2012, which forced companies such as Lukoil and Gazprom Neft to leave the Iranian market.
The situation should have changed with the agreement reached between Russian President Vladimir V. Putin and his Iranian counterpart, Hassan Rouhani, during the SCO Summit in Bishkek in September 2013, which caused a stir and under the terms of which 500,000 barrels per day of Iranian oil would be delivered in exchange for Russian goods and equipment. By rough estimates, that is 12% of the oil extractable daily in Iran."
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Fugitive banker handed over to Iran - Al-Monitor: the Pulse of the Middle East
Fugitive banker handed over to Iran - Al-Monitor: the Pulse of the Middle East:
"A fugitive accused of involvement in the “3,000 billion toman dossier” — the biggest embezzlement case in Iran since the 1979 revolution — was handed over to Iran this week.
"The detainee, identified as 'H.S.,' was arrested by Interpol in one of the Persian Gulf states and handed over to Iran on May 7," Col. Massoud Rezvani, head of the Interpol office of the Iranian police, announced in an interview with IRNA news agency."
'via Blog this'
"A fugitive accused of involvement in the “3,000 billion toman dossier” — the biggest embezzlement case in Iran since the 1979 revolution — was handed over to Iran this week.
"The detainee, identified as 'H.S.,' was arrested by Interpol in one of the Persian Gulf states and handed over to Iran on May 7," Col. Massoud Rezvani, head of the Interpol office of the Iranian police, announced in an interview with IRNA news agency."
'via Blog this'
Why Hasn't The US Gone After Gazprom? - Analysis | Eurasia Review #EuroMaidan
Why Hasn't The US Gone After Gazprom? - Analysis | Eurasia Review:
"Amidst the deepening war of words over Moscow’s annexation of Crimea, U.S. President Barack Obama on April 28 added more Russian individuals and companies to a sanctions list that already included influential members of Russian President Vladimir Putin’s inner circle and Bank Rossiya, which has close ties to the Russian leadership. The new list freezes the assets of Igor Sechin, head of Russia’s major oil company, Rosneft, six other individuals and 17 companies.
Significantly, the new U.S. list does not include Alexei Miller, CEO of the Russian natural gas state monopoly, Gazprom.
Although the European Union has imposed its own tough sanctions on 48 Russian individuals, Gazprom is arguably where daylight exists between the Obama administration and the EU on the issue of penalizing Moscow for its actions in Ukraine."
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"Amidst the deepening war of words over Moscow’s annexation of Crimea, U.S. President Barack Obama on April 28 added more Russian individuals and companies to a sanctions list that already included influential members of Russian President Vladimir Putin’s inner circle and Bank Rossiya, which has close ties to the Russian leadership. The new list freezes the assets of Igor Sechin, head of Russia’s major oil company, Rosneft, six other individuals and 17 companies.
Significantly, the new U.S. list does not include Alexei Miller, CEO of the Russian natural gas state monopoly, Gazprom.
Although the European Union has imposed its own tough sanctions on 48 Russian individuals, Gazprom is arguably where daylight exists between the Obama administration and the EU on the issue of penalizing Moscow for its actions in Ukraine."
'via Blog this'
Fund Watch: investing as the Washington consensus wobbles – beyondbrics - Blogs - FT.com
Fund Watch: investing as the Washington consensus wobbles – beyondbrics - Blogs - FT.com:
"How do you invest in emerging markets (EM) at a time when the wheels appear to be coming off the “Washington consensus” in several parts of the world?
This is the key challenge these days for Gary Greenberg, head of EM at Hermes Fund Managers. Like many investors, his basic long-term bet has been that developing countries would continue to implement free-market economic reforms over time.
“The world is challenging a lot of assumptions,” Greenberg said in an interview. “I drank the cool aid many years ago and thought that the Washington consensus was going to be adopted.”"
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"How do you invest in emerging markets (EM) at a time when the wheels appear to be coming off the “Washington consensus” in several parts of the world?
This is the key challenge these days for Gary Greenberg, head of EM at Hermes Fund Managers. Like many investors, his basic long-term bet has been that developing countries would continue to implement free-market economic reforms over time.
“The world is challenging a lot of assumptions,” Greenberg said in an interview. “I drank the cool aid many years ago and thought that the Washington consensus was going to be adopted.”"
'via Blog this'
Can Middle East overcome conflict, low growth and unemployment? - CNN.com
Can Middle East overcome conflict, low growth and unemployment? - CNN.com:
"
Last week, the International Monetary Fund (IMF) released its latest "Middle East and North Africa Economic Outlook" report.
The document aims to provide a detailed overview of the main political, economic and social trends facing the region.
Alongside an economic analysis of the cost of the Syrian conflict, the report found that many countries are still struggling to stabilize three years after the Arab Spring. However growth in other countries may be helping the region turn a corner.
CNN's John Defterios sat down with the IMF's Middle East and Central Asia Director, Masood Ahmed, to probe the report's findings further and ask how we can expect the countries featured to develop in the near to medium term."
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"
Last week, the International Monetary Fund (IMF) released its latest "Middle East and North Africa Economic Outlook" report.
The document aims to provide a detailed overview of the main political, economic and social trends facing the region.
Alongside an economic analysis of the cost of the Syrian conflict, the report found that many countries are still struggling to stabilize three years after the Arab Spring. However growth in other countries may be helping the region turn a corner.
CNN's John Defterios sat down with the IMF's Middle East and Central Asia Director, Masood Ahmed, to probe the report's findings further and ask how we can expect the countries featured to develop in the near to medium term."
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Plane parts maker Strata looking to break even next year | The National
Plane parts maker Strata looking to break even next year | The National:
"Strata, the Mubadala-owned facility plane parts maker, aims to break even by the end of next year, a government official said yesterday.
The Al Ain-based company that manufactures parts for Airbus and Boeing is also on the lookout for more acquisitions and expects to win more work to supply parts to the A380 superjumbo.
“Strata should break even by the end of 2015, that’s the goal,” said Homaid Al Shemmari, the chief executive of aerospace and engineering services at Mubadala."
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"Strata, the Mubadala-owned facility plane parts maker, aims to break even by the end of next year, a government official said yesterday.
The Al Ain-based company that manufactures parts for Airbus and Boeing is also on the lookout for more acquisitions and expects to win more work to supply parts to the A380 superjumbo.
“Strata should break even by the end of 2015, that’s the goal,” said Homaid Al Shemmari, the chief executive of aerospace and engineering services at Mubadala."
'via Blog this'
Investment bank plans at Al Ramz with IPO in consideration | The National
Investment bank plans at Al Ramz with IPO in consideration | The National:
"The Abu Dhabi-based stock brokerage Al Ramz Securities is considering an initial public offering amid ambitions to turn into a full-fledged on-shore investment bank.
Al Ramz, which ranked No 1 by traded value last month, has appointed an international investment bank and lawyers to prepare due diligence and valuation reports for the company’s board to review.
“Our board is encouraged with the recent increase in market valuations,” Mohammad Al Mortada Al Dandashi, the managing director at the stock brokerage told The National yesterday. “They think it should be a public and success story. We want to be able to advise on mergers and acquisitions, IPOs. We have the experience and expertise.”"
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"The Abu Dhabi-based stock brokerage Al Ramz Securities is considering an initial public offering amid ambitions to turn into a full-fledged on-shore investment bank.
Al Ramz, which ranked No 1 by traded value last month, has appointed an international investment bank and lawyers to prepare due diligence and valuation reports for the company’s board to review.
“Our board is encouraged with the recent increase in market valuations,” Mohammad Al Mortada Al Dandashi, the managing director at the stock brokerage told The National yesterday. “They think it should be a public and success story. We want to be able to advise on mergers and acquisitions, IPOs. We have the experience and expertise.”"
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GCC, Mideast emerge as strong investment destinations | GulfNews.com
GCC, Mideast emerge as strong investment destinations | GulfNews.com:
"In the context of the changing global economic outlook, most emerging markets are becoming less attractive compared to developed markets while the Gulf region’s asset classes are looking competitive, according to Arjuna Mahendran, chief investment officer of Emirates NBD Wealth Management.
“The GCC region remains extremely robust, despite the ever-present threat that oil prices could subside in 2014. This is because all GCC member countries continue to build large external surpluses and have sufficient foreign exchange and fiscal reserves to withstand a 10 to20 per cent correction in oil prices,” Mahendran said.
For the next six to eight months, developed market asset classes, particularly US equity, look more attractive compared to emerging market equities, according to Emirates NBD Private Banking."
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"In the context of the changing global economic outlook, most emerging markets are becoming less attractive compared to developed markets while the Gulf region’s asset classes are looking competitive, according to Arjuna Mahendran, chief investment officer of Emirates NBD Wealth Management.
“The GCC region remains extremely robust, despite the ever-present threat that oil prices could subside in 2014. This is because all GCC member countries continue to build large external surpluses and have sufficient foreign exchange and fiscal reserves to withstand a 10 to20 per cent correction in oil prices,” Mahendran said.
For the next six to eight months, developed market asset classes, particularly US equity, look more attractive compared to emerging market equities, according to Emirates NBD Private Banking."
'via Blog this'
Air Arabia Q1 profit up 27% to Dh75 million on jet fuel gains | GulfNews.com
Air Arabia Q1 profit up 27% to Dh75 million on jet fuel gains | GulfNews.com:
"Air Arabia, the Sharjah-based low cost carrier, on Monday reported a 27 per cent jump in first quarter net profit to Dh75 million on the back of improving jet fuel prices.
“Profit continues to benefit from a more conducive fuel environment,” stated Will Horton, senior analyst at CAPA – Centre for Aviation.
Revenue for the three months ending March 31, 2013, increased 13.5 per cent to Dh827 million, compared to Dh722 million in last year’s first quarter."
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"Air Arabia, the Sharjah-based low cost carrier, on Monday reported a 27 per cent jump in first quarter net profit to Dh75 million on the back of improving jet fuel prices.
“Profit continues to benefit from a more conducive fuel environment,” stated Will Horton, senior analyst at CAPA – Centre for Aviation.
Revenue for the three months ending March 31, 2013, increased 13.5 per cent to Dh827 million, compared to Dh722 million in last year’s first quarter."
'via Blog this'
Moscow Bond Traders Watch as Crisis Sinks Volumes: Russia Credit - Bloomberg
Moscow Bond Traders Watch as Crisis Sinks Volumes: Russia Credit - Bloomberg:
"Russian bond traders are sitting out the deepening crisis with Ukraine as foreign investors pull their cash and losses accumulate.
Secondary-market bond trading volumes on the Moscow Exchange slid 43 percent in April to 759 billion rubles ($22 billion), the biggest year-on-year drop since at least 2010, according to data on the bourse website. South African trading dropped 24 percent to 1.39 trillion rand ($134 billion) last month from a year earlier, Johannesburg Stock Exchange figures show.
The collapse in trading coincides with escalating turmoil as the U.S. and European allies slap sanctions on President Vladimir Putin’s inner circle amid the crisis in Ukraine, threatening to help push Russia into a recession. While bonds have slumped, rising volatility has fueled stock-exchange volumes as investors speculate about whether specific companies and their owners would be targeted for penalties."
'via Blog this'
"Russian bond traders are sitting out the deepening crisis with Ukraine as foreign investors pull their cash and losses accumulate.
Secondary-market bond trading volumes on the Moscow Exchange slid 43 percent in April to 759 billion rubles ($22 billion), the biggest year-on-year drop since at least 2010, according to data on the bourse website. South African trading dropped 24 percent to 1.39 trillion rand ($134 billion) last month from a year earlier, Johannesburg Stock Exchange figures show.
The collapse in trading coincides with escalating turmoil as the U.S. and European allies slap sanctions on President Vladimir Putin’s inner circle amid the crisis in Ukraine, threatening to help push Russia into a recession. While bonds have slumped, rising volatility has fueled stock-exchange volumes as investors speculate about whether specific companies and their owners would be targeted for penalties."
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