Tuesday 27 October 2015

MIDEAST STOCKS-Saudi tumbles as energy price rises considered | Reuters

MIDEAST STOCKS-Saudi tumbles as energy price rises considered | Reuters:

"Saudi Arabia's stock market fell
sharply on Tuesday after the oil minister said the government
was considering whether to raise domestic energy prices, a
reform that could initially at least hurt consumer spending and
corporate profits.

Asked on the sidelines of a mining conference if he expected
domestic energy prices to increase in the near term, Ali
al-Naimi said: "What you are asking is: is it under study? And
the answer is yes."

Naimi did not give any details of the possible changes,
which could form part of a major tightening of fiscal policy
next year as the government reduces a budget deficit estimated
at well over $100 billion in 2015."



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Asset managers suffer as oil funds withdraw cash - FT.com

Asset managers suffer as oil funds withdraw cash - FT.com:

"Global asset managers are facing a double hit to their fees, as sovereign wealth funds withdraw billions to support their oil-dependent economies — and switch to a cheaper in-house investment approach.
A collapse in the price of oil since June 2014 is taking its toll on the investment management industry, as oil-producing countries pull money from their wealth funds to make up for a loss of export earnings. Of the world’s 50 sovereign wealth funds, which collectively oversee about $6.5tn, one-third have reported a reduction in their invested assets. Of those affected, half derive their capital from oil, according to data provider Preqin."



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Risk to Saudi Typhoon jet contract after prison row - FT.com

Risk to Saudi Typhoon jet contract after prison row - FT.com:

"A delicate negotiation to sell UK-built fighter jets to Saudi Arabia could be at risk after the Saudi ambassador attacked Britain for cancelling a prison contract over criticism of Riyadh’s human rights record.
In a rare public intervention, Prince Mohammed bin Nawaf bin Abdulaziz said that “if the extensive trade links between the two countries are going to be subordinate to certain political ideologies, then this vital commercial exchange is going to be at risk”."



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Emirates NBD’s nine-month net profits up 27 per cent to Dh5 billion | GulfNews.com

Emirates NBD’s nine-month net profits up 27 per cent to Dh5 billion | GulfNews.com:

"Emirates NBD (ENBD), on Tuesday reported a nine-month net profit  of Dh5 billion up 27 per cent compared to same period last year.

The strong operating performance was helped by an increase in net interest income, a modest increase in costs and a lower impairment charge.

Total income for the first nine months grew by 2 per cent to Dh11.2 billion. Net interest income grew 8 per cent to Dh7.6 billion due to growth in retail assets and a lower cost of funds."



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UPDATE 1-UK defence contractor Chemring warns on full-year results | Reuters

UPDATE 1-UK defence contractor Chemring warns on full-year results | Reuters:

"Chemring Group Plc, a British defence contractor, said it expected its underlying operating profit for the full year to be reduced by nearly a third due to a delay in revenues from a contract in the Middle East.

Chemring, which makes ejector seats for fighter jets and flares used to counter heat-seeking missiles, has been struggling with delays in Middle Eastern contracts as well as defence budget cuts in its key markets.

The company announced in September that it had received orders worth more than 100 million pounds for the supply of 40mm ammunition in the Middle East."



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MIDEAST STOCKS-Gulf markets consolidate; Dubai real estate firms weak | Reuters

MIDEAST STOCKS-Gulf markets consolidate; Dubai real estate firms weak | Reuters:

"Gulf stock markets consolidated in modest volumes early on Tuesday, dampened by weak oil prices and global equities.

Dubai's index edged down 0.4 percent as second-tier property developer Deyaar fell 2.4 percent after reporting a 38 percent slump in profit. Peer Union Properties dropped 1.9 percent.

Abu Dhabi climbed 0.4 percent as National Bank of Ras al Khaimah added 1.8 percent; it reported roughly flat profit for the third quarter compared to a year earlier."



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