Dubai's Limitless asks for more time after missing debt deal deadline - sources | Reuters:
"Limitless, a Dubai government-related real estate developer, has asked for a three-month extension to talks with creditors after failing to secure a new restructuring deal on its $1.2 billion debt pile, four banking sources told Reuters on Thursday.
The company, which has already restructured the debt once before after falling victim to the emirate's property crash at the end of the last decade, has been in talks with creditors for nearly a year on a new deal.
It had hoped to secure new terms before a $400 million payment came due on Dec. 31 but no deal was reached. Some banks have agreed to extend the negotiations and other banks are considering the request, two of the sources said, speaking on condition of anonymity as the information is not public."
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Friday, 9 January 2015
Easy money, housing bubbles, and financial crises | FT Alphaville
Easy money, housing bubbles, and financial crises | FT Alphaville:
"Housing booms are wasteful — and the subsequent busts are deeply destructive. Worse, they have become bigger and more frequent since the 1970s. An important new paper from Oscar Jorda, Moritz Schularick, and Alan Taylor places the blame on structural changes in the financial sector that exacerbate the impact of excessively loose monetary policy.
This is a continuation of earlier research on the drivers of credit booms and their impact on GDP using data from more than a dozen rich countries going back to 1870, which we covered in detail here. For those who don’t want to reread that post, the two important takeaways are, first, that the growth rate in private borrowing during an economic expansion predicts the severity of the subsequent downturn even when there is no financial crisis:
"
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"Housing booms are wasteful — and the subsequent busts are deeply destructive. Worse, they have become bigger and more frequent since the 1970s. An important new paper from Oscar Jorda, Moritz Schularick, and Alan Taylor places the blame on structural changes in the financial sector that exacerbate the impact of excessively loose monetary policy.
This is a continuation of earlier research on the drivers of credit booms and their impact on GDP using data from more than a dozen rich countries going back to 1870, which we covered in detail here. For those who don’t want to reread that post, the two important takeaways are, first, that the growth rate in private borrowing during an economic expansion predicts the severity of the subsequent downturn even when there is no financial crisis:
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UAE stocks regulator weighs stricter reporting measures | The National
UAE stocks regulator weighs stricter reporting measures | The National:
"The federal stock market regulator is mulling a plan to halve the period allowed for public companies to report earnings.
The Securities and Commodities Authority is considering reducing the grace period that corporates will have to disclose their annual financial results to 45 calendar days from 90 days after the end of the financial period. Quarterly results would have to be disclosed within 30 days instead of 45 days.
“The current grace period was set according to international best practices,” said Abdullah al Turifi, the SCA chief executive, during a session of the Federal National Council. “But we are considering shortening the time period.”"
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"The federal stock market regulator is mulling a plan to halve the period allowed for public companies to report earnings.
The Securities and Commodities Authority is considering reducing the grace period that corporates will have to disclose their annual financial results to 45 calendar days from 90 days after the end of the financial period. Quarterly results would have to be disclosed within 30 days instead of 45 days.
“The current grace period was set according to international best practices,” said Abdullah al Turifi, the SCA chief executive, during a session of the Federal National Council. “But we are considering shortening the time period.”"
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Mubadala takes control of Maracana stadium manager IMX | The National
Mubadala takes control of Maracana stadium manager IMX | The National:
"Abu Dhabi strategic investor Mubadala Development has taken control of the firm that manages Rio’s iconic Maracana stadium, the venue for last year’s World Cup final.
According to an emailed statement seen by Bloomberg News, Mubadala has acquired a stake in IMX from the former Brazilian billionaire Eike Batista’s EBX Group making it the majority shareholder in South America’s largest sports and entertainment management company.
IMX was a joint venture between EBX and IMG Worldwide, the talent agency in which Mubadala is already minority shareholder. IMG, based in New York, also manages fashion and sports events such as Wimbledon, as well as the capital’s Abu Dhabi HSBC Golf Championship and Mubadala World Tennis Championship."
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"Abu Dhabi strategic investor Mubadala Development has taken control of the firm that manages Rio’s iconic Maracana stadium, the venue for last year’s World Cup final.
According to an emailed statement seen by Bloomberg News, Mubadala has acquired a stake in IMX from the former Brazilian billionaire Eike Batista’s EBX Group making it the majority shareholder in South America’s largest sports and entertainment management company.
IMX was a joint venture between EBX and IMG Worldwide, the talent agency in which Mubadala is already minority shareholder. IMG, based in New York, also manages fashion and sports events such as Wimbledon, as well as the capital’s Abu Dhabi HSBC Golf Championship and Mubadala World Tennis Championship."
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A chance for global economies to reorient themselves | GulfNews.com
A chance for global economies to reorient themselves | GulfNews.com:
"‘Norway’s assessment of its shale gas potential went from 83 trillion cubic feet (tcf) (2011) to zero (2013)’.
This was noted by the US Energy Information Administration (EIA) and quoted in an op-ed that appeared on World Economic Forum website. A study by the University of Texas predicted the ‘US boom will tail-off by 2020 and not keep going to 2040 as previous less-thorough analysis have predicted’.
In a policy briefing by the policy department in the European Parliament (2013), estimates of ‘US shale gas reserves of recoverable natural gas’ dropped by 42 per cent from 2011 projections."
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"‘Norway’s assessment of its shale gas potential went from 83 trillion cubic feet (tcf) (2011) to zero (2013)’.
This was noted by the US Energy Information Administration (EIA) and quoted in an op-ed that appeared on World Economic Forum website. A study by the University of Texas predicted the ‘US boom will tail-off by 2020 and not keep going to 2040 as previous less-thorough analysis have predicted’.
In a policy briefing by the policy department in the European Parliament (2013), estimates of ‘US shale gas reserves of recoverable natural gas’ dropped by 42 per cent from 2011 projections."
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Why oil plunge is a ‘golden opportunity’ for Asia economies | GulfNews.com
Why oil plunge is a ‘golden opportunity’ for Asia economies | GulfNews.com:
"The plunge in crude prices will give a much-needed boost to Asia’s oil-guzzling economies and provides governments a “golden opportunity” to implement crucial structural reforms such as cutting expensive energy subsidies, analysts say.
A slowdown in the key export markets of Europe, China and Japan, the end of US stimulus measures, and an expected US rate hike — fuelling a flight of foreign cash in search of better returns — has left some governments having to make tough decisions to get back on track.
But experts say lower oil prices would ease inflationary pressures throughout much of Asia, allowing many central banks to either keep monetary policy on hold or reduce interest rates."
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"The plunge in crude prices will give a much-needed boost to Asia’s oil-guzzling economies and provides governments a “golden opportunity” to implement crucial structural reforms such as cutting expensive energy subsidies, analysts say.
A slowdown in the key export markets of Europe, China and Japan, the end of US stimulus measures, and an expected US rate hike — fuelling a flight of foreign cash in search of better returns — has left some governments having to make tough decisions to get back on track.
But experts say lower oil prices would ease inflationary pressures throughout much of Asia, allowing many central banks to either keep monetary policy on hold or reduce interest rates."
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Putin’s Russia Trading as Junk Awaits Downgrades to Match - Bloomberg
Putin’s Russia Trading as Junk Awaits Downgrades to Match - Bloomberg:
"As rating companies weigh cutting Russia’s investment-grade status as soon as today, traders of credit-default swaps are already treating the nation as junk.
The cost of insuring Russia’s bonds against non-repayment for five years jumped 61 basis points this year to 538, according to data compiled by Bloomberg. That makes the nation’s debt the fifth-riskiest globally, above speculative-grade countries including Lebanon, Egypt and Portugal.
While Societe Generale SA said that Fitch Ratings, which ranks Russia two levels above junk, will probably cut by one step today, Standard & Poor’s signalled last month it may drop the country below investment grade within 90 days. With plunging oil prices and sanctions over President Vladimir Putin’s support for Ukraine separatists tipping the economy into a recession, the nation’s low levels of public debt and foreign-currency war chest probably won’t prevent a downgrade."
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"As rating companies weigh cutting Russia’s investment-grade status as soon as today, traders of credit-default swaps are already treating the nation as junk.
The cost of insuring Russia’s bonds against non-repayment for five years jumped 61 basis points this year to 538, according to data compiled by Bloomberg. That makes the nation’s debt the fifth-riskiest globally, above speculative-grade countries including Lebanon, Egypt and Portugal.
While Societe Generale SA said that Fitch Ratings, which ranks Russia two levels above junk, will probably cut by one step today, Standard & Poor’s signalled last month it may drop the country below investment grade within 90 days. With plunging oil prices and sanctions over President Vladimir Putin’s support for Ukraine separatists tipping the economy into a recession, the nation’s low levels of public debt and foreign-currency war chest probably won’t prevent a downgrade."
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How OPEC Weaponized the Price of Oil Against U.S. Drillers - Bloomberg
How OPEC Weaponized the Price of Oil Against U.S. Drillers - Bloomberg:
"If there ever was doubt about the strategy of the Organization of Petroleum Exporting Countries, its wealthiest members are putting that issue to rest.
Representatives of Saudi Arabia, the United Arab Emirates and Kuwait stressed a dozen times in the past six weeks that the group won’t curb output to halt the biggest drop in crude since 2008. Qatar’s estimate for the global oversupply is among the biggest of any producing country. These countries actually want -- and are achieving -- further price declines as part of an attempt to hasten cutbacks by U.S. shale drillers, according to Barclays Plc and Commerzbank AG.
Crude fell 48 percent last year and has declined 34 percent since OPEC affirmed its output target on Nov. 27. That decision, while squeezing revenues for OPEC members in 2015, aims at preserving their market share for years to come."
'via Blog this'
"If there ever was doubt about the strategy of the Organization of Petroleum Exporting Countries, its wealthiest members are putting that issue to rest.
Representatives of Saudi Arabia, the United Arab Emirates and Kuwait stressed a dozen times in the past six weeks that the group won’t curb output to halt the biggest drop in crude since 2008. Qatar’s estimate for the global oversupply is among the biggest of any producing country. These countries actually want -- and are achieving -- further price declines as part of an attempt to hasten cutbacks by U.S. shale drillers, according to Barclays Plc and Commerzbank AG.
Crude fell 48 percent last year and has declined 34 percent since OPEC affirmed its output target on Nov. 27. That decision, while squeezing revenues for OPEC members in 2015, aims at preserving their market share for years to come."
'via Blog this'
Iraq Allowed to Sue Kurds Over Texas Oil Tanker in U.S. - Bloomberg
Iraq Allowed to Sue Kurds Over Texas Oil Tanker in U.S. - Bloomberg:
"Iraq’s oil ministry can sue the Kurdistan regional government for possession of 1 million barrels of crude that have waited in a tanker circling off the Texas coast for more than five months, a U.S. judge said.
U.S. District Judge Gray Miller in Houston rejected the Kurds’ claims of sovereign immunity and said the regional government’s plans to sell its crude in the U.S. gave him authority to hear the lawsuit.
Miller had previously ruled he had no authority to hear Iraq’s dispute because the alleged misappropriation of the oil took place in Kurdistan, outside the jurisdiction of U.S. courts. After the Iraqis reworked their claim, Miller agreed the Kurds’ involvement in the U.S. oil market triggered a legal exception that properly placed the dispute over the cargo in his court."
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"Iraq’s oil ministry can sue the Kurdistan regional government for possession of 1 million barrels of crude that have waited in a tanker circling off the Texas coast for more than five months, a U.S. judge said.
U.S. District Judge Gray Miller in Houston rejected the Kurds’ claims of sovereign immunity and said the regional government’s plans to sell its crude in the U.S. gave him authority to hear the lawsuit.
Miller had previously ruled he had no authority to hear Iraq’s dispute because the alleged misappropriation of the oil took place in Kurdistan, outside the jurisdiction of U.S. courts. After the Iraqis reworked their claim, Miller agreed the Kurds’ involvement in the U.S. oil market triggered a legal exception that properly placed the dispute over the cargo in his court."
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