London Finance Sector at Risk If U.K. Quits EU, Commerzbank Says - Bloomberg Business:
"London’s position as a global financial center could be harmed if the U.K. left the European Union, according to Commerzbank AG.
“Rapidly growing financial centers in Asia and the Middle East would be well-placed to capitalize,” London-based economist Peter Dixon said in the note published on Wednesday. “One advantage which the U.K. financial-services industry enjoys under current arrangements is unfettered access to a market of 500 million people; operating outside the EU would eliminate this benefit in return for very uncertain gain.”
Prime Minister David Cameron has said he will hold a referendum on Britain’s membership of the EU before the end of 2017. Before then, he wants to change the way the 28-nation bloc works so some powers return to national governments. Voters saying Britain should stay in the EU led those wanting to leave by 45 percent to 37 percent, pollster Survation Ltd. said last month."
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Thursday 3 September 2015
What the Iran Deal Means for the World Economy - Bloomberg Business
What the Iran Deal Means for the World Economy - Bloomberg Business: "With
Obama securing enough Senate votes to support an historic accord, it looks like Iran is closer to emerging from some of the financial restrictions imposed to discourage it from developing nuclear weapons. Here's what the deal means economically.
1. Iran
Iran is clearly the top winner, with its $388 billion economy likely to reach 6 percent growth as early as 2016, according to Garbis Iradian, chief economist for the Middle East & North Africa at the Institute of International Finance.
2. Oil prices
As home to the world's fourth-largest oil reserves, Iran is likely to increase its production as much as 800,000 barrels a day in 2016. Still, even as it accounts about 1 percent of today's global oil supply, it may not have much of an impact on an already oversupplied market, according to a report this week from A.T. Kearney. The firm is projecting that Brent oil prices in 2016 will most likely stay in the range of $45 to $65 a barrel.
3. The U.S.
Even after the nuclear deal is implemented, sanctions preventing most U.S. companies from dealing with Iran will remain in place. The agreement won't move the needle on U.S. growth as a whole in 2016, says George Abed, senior counselor and director for Africa & the Middle East at the IIF. It won't affect global growth, either, he says. One significant exception is the aviation industry. The deal calls for the U.S. to grant licenses to allow the sale of commercial passenger aircraft, as Iran needs to invest at least some $20 billion to update its aging planes. "
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Obama securing enough Senate votes to support an historic accord, it looks like Iran is closer to emerging from some of the financial restrictions imposed to discourage it from developing nuclear weapons. Here's what the deal means economically.
1. Iran
Iran is clearly the top winner, with its $388 billion economy likely to reach 6 percent growth as early as 2016, according to Garbis Iradian, chief economist for the Middle East & North Africa at the Institute of International Finance.
2. Oil prices
As home to the world's fourth-largest oil reserves, Iran is likely to increase its production as much as 800,000 barrels a day in 2016. Still, even as it accounts about 1 percent of today's global oil supply, it may not have much of an impact on an already oversupplied market, according to a report this week from A.T. Kearney. The firm is projecting that Brent oil prices in 2016 will most likely stay in the range of $45 to $65 a barrel.
3. The U.S.
Even after the nuclear deal is implemented, sanctions preventing most U.S. companies from dealing with Iran will remain in place. The agreement won't move the needle on U.S. growth as a whole in 2016, says George Abed, senior counselor and director for Africa & the Middle East at the IIF. It won't affect global growth, either, he says. One significant exception is the aviation industry. The deal calls for the U.S. to grant licenses to allow the sale of commercial passenger aircraft, as Iran needs to invest at least some $20 billion to update its aging planes. "
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MIDEAST STOCKS-Gulf consolidates, Egypt jumps as global backdrop improves | Reuters
MIDEAST STOCKS-Gulf consolidates, Egypt jumps as global backdrop improves | Reuters:
"Gulf stock markets consolidated on
Thursday after oil prices and global equities steadied, while
Egypt jumped on strong economic data and corporate news.
Oil moved little on Thursday and Brent crude held
above $50 a barrel, stronger than it was when most Gulf stock
markets closed on Wednesday. Meanwhile, European stock indexes
rose and emerging markets were steady as volatile Chinese
markets were closed for holidays.
This allowed Saudi Arabia's main stock index to edge
up 0.2 percent. The banking sector, up 0.5 percent, was
the main support."
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"Gulf stock markets consolidated on
Thursday after oil prices and global equities steadied, while
Egypt jumped on strong economic data and corporate news.
Oil moved little on Thursday and Brent crude held
above $50 a barrel, stronger than it was when most Gulf stock
markets closed on Wednesday. Meanwhile, European stock indexes
rose and emerging markets were steady as volatile Chinese
markets were closed for holidays.
This allowed Saudi Arabia's main stock index to edge
up 0.2 percent. The banking sector, up 0.5 percent, was
the main support."
'via Blog this'
Bond sales to bolster Saudi economy, says ratings agency | The National
Bond sales to bolster Saudi economy, says ratings agency | The National:
"Saudi Arabian banks, reeling under the pressure of falling oil prices, may get a shot in the arm from a spate of sovereign bonds sold this year, the rating agency Standard & Poor’s said.
The country is the world’s biggest exporter of oil and its economy is likely to feel the pain of less revenue more intensely if the price of crude, which has lost more than half of its value, continues to slide.
The debt issued by the government, the first time it has sold bonds with maturities of more than 12 months since 2007, means that banks that purchased the debt will get safer yields that will buffer them against any downturn in the economy if there is a sharp drop off in demand for debt by corporations."
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"Saudi Arabian banks, reeling under the pressure of falling oil prices, may get a shot in the arm from a spate of sovereign bonds sold this year, the rating agency Standard & Poor’s said.
The country is the world’s biggest exporter of oil and its economy is likely to feel the pain of less revenue more intensely if the price of crude, which has lost more than half of its value, continues to slide.
The debt issued by the government, the first time it has sold bonds with maturities of more than 12 months since 2007, means that banks that purchased the debt will get safer yields that will buffer them against any downturn in the economy if there is a sharp drop off in demand for debt by corporations."
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Atlas may sell healthcare entity, GCC stores to repay loans | GulfNews.com
Atlas may sell healthcare entity, GCC stores to repay loans | GulfNews.com:
"With the bail of Atlas Jewellery founder and chairman MM Ramachandran reportedly rejected, he is now considering putting up his prime asset — a successfully running hospital in Oman for sale to help repay part of the Dh550 million that he owes to banks, industry sources told Gulf News.
A meeting of the steering committee of banks set up to recover the millions took place on Wednesday evening, banking sources said.
“Earlier this proposal [to sell his assets in Oman] was not acceptable to him as the Atlas Health Care Group has been a profit-making entity with a leading Omani group as its sponsors. The sponsor is now considering to take over the business from Ramachandran once proper valuation of the asset has been carried out,” industry sources explained."
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"With the bail of Atlas Jewellery founder and chairman MM Ramachandran reportedly rejected, he is now considering putting up his prime asset — a successfully running hospital in Oman for sale to help repay part of the Dh550 million that he owes to banks, industry sources told Gulf News.
A meeting of the steering committee of banks set up to recover the millions took place on Wednesday evening, banking sources said.
“Earlier this proposal [to sell his assets in Oman] was not acceptable to him as the Atlas Health Care Group has been a profit-making entity with a leading Omani group as its sponsors. The sponsor is now considering to take over the business from Ramachandran once proper valuation of the asset has been carried out,” industry sources explained."
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OPEC Split on Need for Long-Term Oil-Price Forecasts - Bloomberg Business
OPEC Split on Need for Long-Term Oil-Price Forecasts - Bloomberg Business:
"Saudi Arabia and its Gulf allies are at odds with Iran and other OPEC members over whether the organization should include oil-price forecasts in its long-term strategy report, according to three of the group’s delegates.
The Gulf kingdom, which has led the Organization of Petroleum Exporting Countries in a battle against rival producers, is seeking to exclude price assumptions from the report, according to the delegates, who asked not to be identified because the document isn’t public. The disagreement reflects internal divisions over whether OPEC policy should focus on prices or the stability of the oil market, one of the delegates said.
Oil prices plunged to a six-year low last month as OPEC kept its taps open in an effort to pressure competitors such as U.S. shale drillers to cut production. Saudi Arabia, Kuwait, Qatar and the United Arab Emirates overcame opposition from Iran and the group’s seven other members last November to adopt that strategy. OPEC has since lost billions of dollars in revenue, pushing some members to the brink of economic crisis and prompting calls from Algeria and Venezuela for a change in policy."
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"Saudi Arabia and its Gulf allies are at odds with Iran and other OPEC members over whether the organization should include oil-price forecasts in its long-term strategy report, according to three of the group’s delegates.
The Gulf kingdom, which has led the Organization of Petroleum Exporting Countries in a battle against rival producers, is seeking to exclude price assumptions from the report, according to the delegates, who asked not to be identified because the document isn’t public. The disagreement reflects internal divisions over whether OPEC policy should focus on prices or the stability of the oil market, one of the delegates said.
Oil prices plunged to a six-year low last month as OPEC kept its taps open in an effort to pressure competitors such as U.S. shale drillers to cut production. Saudi Arabia, Kuwait, Qatar and the United Arab Emirates overcame opposition from Iran and the group’s seven other members last November to adopt that strategy. OPEC has since lost billions of dollars in revenue, pushing some members to the brink of economic crisis and prompting calls from Algeria and Venezuela for a change in policy."
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MIDEAST STOCKS-UAE markets rebound on oil, strong PMI data | Reuters
MIDEAST STOCKS-UAE markets rebound on oil, strong PMI data | Reuters:
"Beaten-down bourses in the United Arab Emirates rose in early trade on Thursday, while other Gulf markets moved little as the Brent oil price stabilised just above $50 per barrel.
Oil edged down on Thursday morning because of an unexpected build in U.S. crude inventories and a stronger U.S. dollar, but Brent remained above $50, stronger than it was when most Gulf stock markets closed on Wednesday.
Wall Street posted a near 2 percent gain overnight and spread betters expect major European bourses to rise as well."
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"Beaten-down bourses in the United Arab Emirates rose in early trade on Thursday, while other Gulf markets moved little as the Brent oil price stabilised just above $50 per barrel.
Oil edged down on Thursday morning because of an unexpected build in U.S. crude inventories and a stronger U.S. dollar, but Brent remained above $50, stronger than it was when most Gulf stock markets closed on Wednesday.
Wall Street posted a near 2 percent gain overnight and spread betters expect major European bourses to rise as well."
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