Here’s why a slump in oil prices will not impact UAE - Khaleej Times:
"Slump in world oil prices will have no impact on the UAE’s vibrant economy, Suhail bin Mohamed Faraj Fares Al Mazrouei, the UAE Minister of Energy, emphasised on Tuesday.
The minister told the Gulf Intelligence UAE Energy Forum in Abu Dhabi that the UAE would move ahead with plans to boost its oil and gas production capacity and the UAE Strategy 2030 will continue to focus on energy management, efficiency and rationalisation. The UAE’s refining capacity, he said, would increase to one million barrels per day by 2015.
“The UAE is not worried about its national economy due to the decline in the world oil prices... Its economy is strong and based on a policy through which the government seeks to reduce dependence on oil year after year. The UAE economy was not affected by previous instances of decline in oil prices and it will not (happen now), thanks to its economic wellbeing,” Al Mazrouie stressed."
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Wednesday 14 January 2015
As Ukraine Sinks Below ‘Life Support,’ the West Gropes for Loan Money
As Ukraine Sinks Below ‘Life Support,’ the West Gropes for Loan Money:
"Ukraine’s finances are now “beyond life support,” says economist Tim Ash as its foreign reserves plunged to $7.5 billion last month, less than half of what the International Monetary Fund considers critical to a country’s financial health. The economy shriveled by 7.5 percent last year, electricity production is down in mid-winter, and the country needs immediate help to avoid an economic implosion.
Amid this, Ukrainians might be forgiven for thinking that their international allies seem to be standing with their eyes just slightly averted, patting their pockets distractedly as though in search of their misplaced wallets.
Economists such as Ash, a chief analyst in London for Standard Bank, say the slow pace with which the transatlantic community and the International Monetary Fund are working to gather a minimal new loan package for Ukraine is leading investors to pull capital out of the country. Ash this week echoed billionaire George Soros in urging the West to move faster and bigger in finding new loans: at least the $15 billion that economists say is a minimum to help the country’s transition to a more open economy and a cleaner system of government."
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"Ukraine’s finances are now “beyond life support,” says economist Tim Ash as its foreign reserves plunged to $7.5 billion last month, less than half of what the International Monetary Fund considers critical to a country’s financial health. The economy shriveled by 7.5 percent last year, electricity production is down in mid-winter, and the country needs immediate help to avoid an economic implosion.
Amid this, Ukrainians might be forgiven for thinking that their international allies seem to be standing with their eyes just slightly averted, patting their pockets distractedly as though in search of their misplaced wallets.
Economists such as Ash, a chief analyst in London for Standard Bank, say the slow pace with which the transatlantic community and the International Monetary Fund are working to gather a minimal new loan package for Ukraine is leading investors to pull capital out of the country. Ash this week echoed billionaire George Soros in urging the West to move faster and bigger in finding new loans: at least the $15 billion that economists say is a minimum to help the country’s transition to a more open economy and a cleaner system of government."
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Russian politicians and bankers think oil will reach $60-$80 in 2015 — RT Business
Russian politicians and bankers think oil will reach $60-$80 in 2015 — RT Business:
"An average oil price in 2015 will probably be in the range of $60 to $80 a barrel, say leading Russian politicians and bankers talking at the Gaidar Economic Forum in Moscow.
The Head of Sberbank German Gref suggests oil will return to the level of $60-70 a barrel in the near future.
"I do not believe it will continue to be low at $40, but it may stay at $60-70 for several years," Gref told reporters at the economic forum in Moscow Wednesday."
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"An average oil price in 2015 will probably be in the range of $60 to $80 a barrel, say leading Russian politicians and bankers talking at the Gaidar Economic Forum in Moscow.
The Head of Sberbank German Gref suggests oil will return to the level of $60-70 a barrel in the near future.
"I do not believe it will continue to be low at $40, but it may stay at $60-70 for several years," Gref told reporters at the economic forum in Moscow Wednesday."
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UPDATE 2-MIDEAST STOCKS-Gulf markets slow advance; Egypt keeps rising | Reuters
UPDATE 2-MIDEAST STOCKS-Gulf markets slow advance; Egypt keeps rising | Reuters:
"Gulf stock markets were neutral to slightly positive on Wednesday, although negative news and earnings reports dragged down some individual stocks. Egypt's bourse posted strong gains for a third day in a row.
Saudi Arabia's index added 0.3 percent, partly because of a rebound in beaten-down petrochemicals. Shares in Yanbu National Petrochemical Co (Yansab) jumped 2.1 percent after it reported a 39.7 percent rise in fourth-quarter net profit.
Yansab, a unit of Saudi Basic Industries, which climbed 1.0 percent, made a net profit of 617.8 million riyals ($164.6 million) in the three months to Dec. 31 while analysts polled by Reuters had on average forecast 558.3 million riyals."
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"Gulf stock markets were neutral to slightly positive on Wednesday, although negative news and earnings reports dragged down some individual stocks. Egypt's bourse posted strong gains for a third day in a row.
Saudi Arabia's index added 0.3 percent, partly because of a rebound in beaten-down petrochemicals. Shares in Yanbu National Petrochemical Co (Yansab) jumped 2.1 percent after it reported a 39.7 percent rise in fourth-quarter net profit.
Yansab, a unit of Saudi Basic Industries, which climbed 1.0 percent, made a net profit of 617.8 million riyals ($164.6 million) in the three months to Dec. 31 while analysts polled by Reuters had on average forecast 558.3 million riyals."
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Mubasher warns of brokerage consolidation in the UAE | The National
Mubasher warns of brokerage consolidation in the UAE | The National:
"Mubasher Financial Services, the third biggest stockbrokerage in the UAE, warned the industry was headed for further consolidation as trading activity slides amid market turmoil.
Mubasher said it expected lower revenues after traded value on the Dubai Financial Market steadily dropped from Dh72.9 billion in January 2013 to Dh46.3bn in December 2014.
“We have to adjust the budget this year, everybody has to,” said Abdel Malik Kanawati, the chief executive at Mubasher, which traded Dh3.73bn on the DFM in December."
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"Mubasher Financial Services, the third biggest stockbrokerage in the UAE, warned the industry was headed for further consolidation as trading activity slides amid market turmoil.
Mubasher said it expected lower revenues after traded value on the Dubai Financial Market steadily dropped from Dh72.9 billion in January 2013 to Dh46.3bn in December 2014.
“We have to adjust the budget this year, everybody has to,” said Abdel Malik Kanawati, the chief executive at Mubasher, which traded Dh3.73bn on the DFM in December."
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Sliding oil price pose a major challenge to Arab economies | GulfNews.com
Sliding oil price pose a major challenge to Arab economies | GulfNews.com:
"The declining oil price poses a challenge to the economy and especially the private sector in the Arab world and comes on top of other political and security challenges, former prime minister of Lebanon Fouad Siniora said at the UAE energy forum in Abu Dhabi on Tuesday.
He however said the lower oil proceeds should be an incentive to fast track the necessary reforms at the institutional, judicial, administrative and overall business climate to empower the Arab private sector but also to attract foreign direct investment and diversify the national economies.
“No individual Arab economy can by itself resolve all the challenges it is facing, and therefore it is high time to move along a vision of Arab economic integration that is based on shared interests and objectives and not on empty slogans and fake banners,” he said."
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"The declining oil price poses a challenge to the economy and especially the private sector in the Arab world and comes on top of other political and security challenges, former prime minister of Lebanon Fouad Siniora said at the UAE energy forum in Abu Dhabi on Tuesday.
He however said the lower oil proceeds should be an incentive to fast track the necessary reforms at the institutional, judicial, administrative and overall business climate to empower the Arab private sector but also to attract foreign direct investment and diversify the national economies.
“No individual Arab economy can by itself resolve all the challenges it is facing, and therefore it is high time to move along a vision of Arab economic integration that is based on shared interests and objectives and not on empty slogans and fake banners,” he said."
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Oil Dragging Putin Back to Bond Sales as 20% Yields Seen - Bloomberg
Oil Dragging Putin Back to Bond Sales as 20% Yields Seen - Bloomberg:
"The days when Russia could comfortably cancel weekly bond auctions are coming to an end as crude oil tumbles toward $40 a barrel.
While the Finance Ministry scrapped the first sale of the year yesterday, citing “unfavorable market conditions,” the government will eventually need to start selling short-dated debt at yields as high as 20 percent if crude prices stay depressed, according to Raiffeisen Capital. The rate on five-year ruble notes jumped 2.19 percentage points this month, the most in emerging markets, as oil slumped to the lowest since 2009.
The surge in Russian borrowing costs -- the result of the plunging ruble, sanctions over Ukraine and plummeting oil -- prompted the ministry to pull four auctions in December alone. With the economy verging on a recession amid a stand-off over President Vladimir Putin’s actions in Crimea and east Ukraine, the budget deficit will increase to 3 percent of gross domestic product this year, Finance Ministry data show."
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"The days when Russia could comfortably cancel weekly bond auctions are coming to an end as crude oil tumbles toward $40 a barrel.
While the Finance Ministry scrapped the first sale of the year yesterday, citing “unfavorable market conditions,” the government will eventually need to start selling short-dated debt at yields as high as 20 percent if crude prices stay depressed, according to Raiffeisen Capital. The rate on five-year ruble notes jumped 2.19 percentage points this month, the most in emerging markets, as oil slumped to the lowest since 2009.
The surge in Russian borrowing costs -- the result of the plunging ruble, sanctions over Ukraine and plummeting oil -- prompted the ministry to pull four auctions in December alone. With the economy verging on a recession amid a stand-off over President Vladimir Putin’s actions in Crimea and east Ukraine, the budget deficit will increase to 3 percent of gross domestic product this year, Finance Ministry data show."
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Deepening Oil Drop Sends Russian ETF Investors Scurrying Away - Bloomberg
Deepening Oil Drop Sends Russian ETF Investors Scurrying Away - Bloomberg:
"The largest exchange-traded fund tracking Russian stocks is opening the year with the highest redemptions in a month amid the widest price swings since 2009 as oil extends its rout and the ruble plummets.
Shares in the $1.4 billion Market Vectors Russia ETF (RSX) ended unchanged at $14.77 after dropping as much as 2.7 percent. Asset managers pulled $36.9 million from the fund on Monday, the biggest outflow since mid-December, data compiled by Bloomberg show. The Bloomberg Russia-US Equity Index of the most-traded Russian stocks fell 1 percent after the dollar-denominated RTS Index declined to the lowest in four weeks. The ruble tumbled 3.2 percent against the dollar.
Brent crude, the oil grade traders use to price Russia’s main export blend, traded below the U.S. benchmark for the first time in 1 1/2 years amid a weakening European economy. The world’s biggest energy exporter is facing the first contraction since 2009 as sanctions linked to the Ukraine conflict stoke the worst currency crisis in 16 years. The fund’s 30-day volatility held near 83, the highest level since March 2009, as Russian markets that had either been closed or trading with light volumes in the past two weeks reopened."
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"The largest exchange-traded fund tracking Russian stocks is opening the year with the highest redemptions in a month amid the widest price swings since 2009 as oil extends its rout and the ruble plummets.
Shares in the $1.4 billion Market Vectors Russia ETF (RSX) ended unchanged at $14.77 after dropping as much as 2.7 percent. Asset managers pulled $36.9 million from the fund on Monday, the biggest outflow since mid-December, data compiled by Bloomberg show. The Bloomberg Russia-US Equity Index of the most-traded Russian stocks fell 1 percent after the dollar-denominated RTS Index declined to the lowest in four weeks. The ruble tumbled 3.2 percent against the dollar.
Brent crude, the oil grade traders use to price Russia’s main export blend, traded below the U.S. benchmark for the first time in 1 1/2 years amid a weakening European economy. The world’s biggest energy exporter is facing the first contraction since 2009 as sanctions linked to the Ukraine conflict stoke the worst currency crisis in 16 years. The fund’s 30-day volatility held near 83, the highest level since March 2009, as Russian markets that had either been closed or trading with light volumes in the past two weeks reopened."
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Iran President Says Oil Drop to Hurt Saudi Arabia, Kuwait - Bloomberg
Iran President Says Oil Drop to Hurt Saudi Arabia, Kuwait - Bloomberg:
"Oil’s price slump may hurt Saudi Arabia and Kuwait more than Iran, which depends less on crude exports than the other two nations, Iranian President Hassan Rouhani said.
Countries responsible for the drop in oil prices will “regret it,” Rouhani said in an address in Bushehr province, without identifying them. “If Iran suffers from declining oil prices, know that other oil-producing countries such as Kuwait and Saudi Arabia will suffer more than Iran,” Rouhani said.
Saudi Arabia, the world’s largest crude exporter, and neighboring Kuwait opposed Iran’s unsuccessful effort to persuade the Organization of Petroleum Exporting Countries to cut output at their Nov. 27 meeting. Iran’s crude exports have been curbed by international sanctions imposed because of the country’s nuclear program. It produced 2.77 million barrels a day of oil in December, down from an average of 3.58 million in 2011, according to data compiled by Bloomberg."
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"Oil’s price slump may hurt Saudi Arabia and Kuwait more than Iran, which depends less on crude exports than the other two nations, Iranian President Hassan Rouhani said.
Countries responsible for the drop in oil prices will “regret it,” Rouhani said in an address in Bushehr province, without identifying them. “If Iran suffers from declining oil prices, know that other oil-producing countries such as Kuwait and Saudi Arabia will suffer more than Iran,” Rouhani said.
Saudi Arabia, the world’s largest crude exporter, and neighboring Kuwait opposed Iran’s unsuccessful effort to persuade the Organization of Petroleum Exporting Countries to cut output at their Nov. 27 meeting. Iran’s crude exports have been curbed by international sanctions imposed because of the country’s nuclear program. It produced 2.77 million barrels a day of oil in December, down from an average of 3.58 million in 2011, according to data compiled by Bloomberg."
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Citigroup Gets Bids From Emirates NBD, Mashreq in Egypt - Bloomberg
Citigroup Gets Bids From Emirates NBD, Mashreq in Egypt - Bloomberg:
"Emirates NBD PJSC (EMIRATES) and Mashreqbank PSC (MASQ), two Dubai-based lenders, are among banks seeking to acquire Citigroup Inc.’s (C) consumer-banking business in Egypt, according to four people with knowledge of the matter.
The two submitted offers in the first round of bidding, the people said, asking not to be identified because the process is private. The value of the bank’s portfolio in the Arab world’s most populous economy may be about $500 million, with a second round of bids to begin shortly, one of the people said.
Barclays Bank Plc, Commercial International Bank Egypt SAE and Bahrain’s Ahli United Bank BSC also bid for the assets, according to a report in Egypt’s Al Borsa newspaper today, which cited a person it didn’t identify."
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"Emirates NBD PJSC (EMIRATES) and Mashreqbank PSC (MASQ), two Dubai-based lenders, are among banks seeking to acquire Citigroup Inc.’s (C) consumer-banking business in Egypt, according to four people with knowledge of the matter.
The two submitted offers in the first round of bidding, the people said, asking not to be identified because the process is private. The value of the bank’s portfolio in the Arab world’s most populous economy may be about $500 million, with a second round of bids to begin shortly, one of the people said.
Barclays Bank Plc, Commercial International Bank Egypt SAE and Bahrain’s Ahli United Bank BSC also bid for the assets, according to a report in Egypt’s Al Borsa newspaper today, which cited a person it didn’t identify."
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