UPDATE 1-MIDEAST STOCKS-Gulf markets pull back as oil continues slide | Reuters:
"Gulf stock markets pulled back early on Tuesday as oil prices continued their slide, prompting profit-taking across a wide range of sectors.
Dubai's equity index slid 2.4 percent with the most heavily traded stock, construction firm Arabtec, slumping 3.4 percent. Abu Dhabi's index edged down 0.5 percent, dragged down by top real estate firm Aldar Properties , which was off 2.9 percent.
Although Gulf bourses have in the last few weeks become somewhat more comfortable with the oil price slide and are no longer panicking, the uncertainty over where and when oil will bottom continues to weigh heavily on investors."
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Tuesday, 13 January 2015
Dubai World secures deal to restructure $14.6bn debt - FT.com
Dubai World secures deal to restructure $14.6bn debt - FT.com:
"Dubai World has secured the agreement of “a substantial majority” of creditors for a restructuring of $14.6bn in debt, allowing the government-owned conglomerate to push back repayments again as the emirate continues a massive investment programme.
The conglomerate, which was at the heart of Dubai’s debt crisis in 2009, will start proceedings at Dubai’s international courts on Tuesday for a voluntary notification arrangement that will “amend and extend” outstanding obligations.
In 2010, Dubai World agreed a dual-tranche restructuring deal with repayments of $4.4bn due in 2015 and another $10.5bn in 2018."
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"Dubai World has secured the agreement of “a substantial majority” of creditors for a restructuring of $14.6bn in debt, allowing the government-owned conglomerate to push back repayments again as the emirate continues a massive investment programme.
The conglomerate, which was at the heart of Dubai’s debt crisis in 2009, will start proceedings at Dubai’s international courts on Tuesday for a voluntary notification arrangement that will “amend and extend” outstanding obligations.
In 2010, Dubai World agreed a dual-tranche restructuring deal with repayments of $4.4bn due in 2015 and another $10.5bn in 2018."
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Ukraine Eurobonds Drop as Goldman Sees More Than 70% Haircut - Bloomberg
Ukraine Eurobonds Drop as Goldman Sees More Than 70% Haircut - Bloomberg:
"Ukraine’s foreign-currency borrowing costs rose for a second day as Goldman Sachs Group Inc. (GS) said a debt writedown may erase 70 percent of the bonds’ value and Russia said it may demand the early repayment of a $3 billion bond.
Ukraine’s dollar-denominated debt maturing July 2017 fell 2.7 cents to 59.87 cents on the dollar by 6:52 p.m. in Kiev after rising 2.2 cents last week as the European Union pledged further financial aid. The yield on the notes rose 229 basis points to 34.20 percent, nearing the record 36.10 percent reached last week.
Representatives from the International Monetary Fund, who are currently reviewing Ukraine’s loan program in Kiev, may force the country’s government to start talks on debt restructuring of as much as 70 percent of its bonds’ value before agreeing to an increase in funding, according to Goldman Sachs."
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"Ukraine’s foreign-currency borrowing costs rose for a second day as Goldman Sachs Group Inc. (GS) said a debt writedown may erase 70 percent of the bonds’ value and Russia said it may demand the early repayment of a $3 billion bond.
Ukraine’s dollar-denominated debt maturing July 2017 fell 2.7 cents to 59.87 cents on the dollar by 6:52 p.m. in Kiev after rising 2.2 cents last week as the European Union pledged further financial aid. The yield on the notes rose 229 basis points to 34.20 percent, nearing the record 36.10 percent reached last week.
Representatives from the International Monetary Fund, who are currently reviewing Ukraine’s loan program in Kiev, may force the country’s government to start talks on debt restructuring of as much as 70 percent of its bonds’ value before agreeing to an increase in funding, according to Goldman Sachs."
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Ruble Rout Exposes India’s Steelmakers to Russia Threat - Bloomberg
Ruble Rout Exposes India’s Steelmakers to Russia Threat - Bloomberg:
"The rout in Russia’s ruble is making life tougher for Indian steelmakers.
Companies such as Tata Steel Ltd. (TATA), JSW Steel Ltd. (JSTL) and Steel Authority of India Ltd. (SAIL) planned higher output, aided by Prime Minister Narendra Modi’s push for faster Indian economic growth. Some local buyers are turning to Russian alloy instead after the past year’s 47 percent plunge in the ruble against the dollar -- among the world’s steepest -- made the nation’s exports cheaper.
“In the past month or so, deals have been struck for steel imports from Russia,” said JSW Steel’s Mumbai-based Senior Vice President Sharad Mahendra, referring to users and traders of the alloy. Such purchases “will only increase,” he said."
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"The rout in Russia’s ruble is making life tougher for Indian steelmakers.
Companies such as Tata Steel Ltd. (TATA), JSW Steel Ltd. (JSTL) and Steel Authority of India Ltd. (SAIL) planned higher output, aided by Prime Minister Narendra Modi’s push for faster Indian economic growth. Some local buyers are turning to Russian alloy instead after the past year’s 47 percent plunge in the ruble against the dollar -- among the world’s steepest -- made the nation’s exports cheaper.
“In the past month or so, deals have been struck for steel imports from Russia,” said JSW Steel’s Mumbai-based Senior Vice President Sharad Mahendra, referring to users and traders of the alloy. Such purchases “will only increase,” he said."
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Dubai Home Sales Fell 3.2% Last Year on Cooling Measures - Bloomberg
Dubai Home Sales Fell 3.2% Last Year on Cooling Measures - Bloomberg:
"Dubai home sales fell 3.2 percent by value last year after the government took steps to slow soaring prices.
Home sales by value declined to 60 billion dirhams ($16.3 billion) in 2014 from 62 billion dirhams in 2013, Dubai’s Land Department said in a press release today. Total real estate sales, including land and commercial property, dropped 7.6 percent to 218 billion dirhams, the department said.
Dubai’s home prices surged 35 percent in 2013, prompting the sheikhdom’s government to double a transaction tax and the United Arab Emirates central bank to restrict mortgages. Officials at the International Monetary Fund on Nov. 6 said Dubai has done enough to control property prices six months after warning the surge in prices was “unsustainable.”"
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"Dubai home sales fell 3.2 percent by value last year after the government took steps to slow soaring prices.
Home sales by value declined to 60 billion dirhams ($16.3 billion) in 2014 from 62 billion dirhams in 2013, Dubai’s Land Department said in a press release today. Total real estate sales, including land and commercial property, dropped 7.6 percent to 218 billion dirhams, the department said.
Dubai’s home prices surged 35 percent in 2013, prompting the sheikhdom’s government to double a transaction tax and the United Arab Emirates central bank to restrict mortgages. Officials at the International Monetary Fund on Nov. 6 said Dubai has done enough to control property prices six months after warning the surge in prices was “unsustainable.”"
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Oil Drops Below $45 as U.S. Stockpiles Seen Worsening Collapse - Bloomberg
Oil Drops Below $45 as U.S. Stockpiles Seen Worsening Collapse - Bloomberg:
"Oil extended losses to trade below $45 a barrel amid speculation that U.S. crude stockpiles will increase, exacerbating a global supply glut that’s driven prices to the lowest in more than 5 1/2 years.
Futures fell as much as 3.6 percent in New York, declining for a third day. Crude inventories probably gained by 1.75 million barrels last week, a Bloomberg News survey shows before government data tomorrow. The United Arab Emirates, a member of the Organization of Petroleum Exporting Countries, will stand by its plan to expand output capacity even with “unstable oil prices,” according to Energy Minister Suhail Al Mazrouei.
Oil slumped almost 50 percent last year, the most since the 2008 financial crisis, as the U.S. pumped at the fastest rate in more than three decades and OPEC resisted calls to cut production. Goldman Sachs Group Inc. said crude needs to drop to $40 a barrel to “re-balance” the market, while Societe Generale SA also reduced its price forecasts"
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"Oil extended losses to trade below $45 a barrel amid speculation that U.S. crude stockpiles will increase, exacerbating a global supply glut that’s driven prices to the lowest in more than 5 1/2 years.
Futures fell as much as 3.6 percent in New York, declining for a third day. Crude inventories probably gained by 1.75 million barrels last week, a Bloomberg News survey shows before government data tomorrow. The United Arab Emirates, a member of the Organization of Petroleum Exporting Countries, will stand by its plan to expand output capacity even with “unstable oil prices,” according to Energy Minister Suhail Al Mazrouei.
Oil slumped almost 50 percent last year, the most since the 2008 financial crisis, as the U.S. pumped at the fastest rate in more than three decades and OPEC resisted calls to cut production. Goldman Sachs Group Inc. said crude needs to drop to $40 a barrel to “re-balance” the market, while Societe Generale SA also reduced its price forecasts"
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Dubai Sukuk Gets $14.6 Billion Push Toward Record Rally - Bloomberg
Dubai Sukuk Gets $14.6 Billion Push Toward Record Rally - Bloomberg:
"Dubai bondholders are getting a $14.6 billion reason to drive the sheikhdom’s securities to fresh records.
Yields on the emirate’s dollar sukuk due in May 2022 fell eight basis points yesterday to 3.43 percent, within five points of a record low, as Dubai World reached a deal with a majority of creditors to reorganize about $14.6 billion of debt. As part of the agreement, the company will repay $2.92 billion due this year early, and extend obligations maturing in 2018 to 2022.
The restructuring marks further progress for Dubai in putting the 2009 financial crisis behind it as the United Arab Emirates’ sheikhdom benefits from a recovery in real estate and tourism. At the same time, it still owes more than $135 billion to creditors, according to International Monetary Fund estimates."
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"Dubai bondholders are getting a $14.6 billion reason to drive the sheikhdom’s securities to fresh records.
Yields on the emirate’s dollar sukuk due in May 2022 fell eight basis points yesterday to 3.43 percent, within five points of a record low, as Dubai World reached a deal with a majority of creditors to reorganize about $14.6 billion of debt. As part of the agreement, the company will repay $2.92 billion due this year early, and extend obligations maturing in 2018 to 2022.
The restructuring marks further progress for Dubai in putting the 2009 financial crisis behind it as the United Arab Emirates’ sheikhdom benefits from a recovery in real estate and tourism. At the same time, it still owes more than $135 billion to creditors, according to International Monetary Fund estimates."
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