'Risky trinity' requires urgent global policy action, BIS says | Reuters

'Risky trinity' requires urgent global policy action, BIS says | Reuters:

"Global economic policy urgently needs rebalancing, the Bank for International Settlements (BIS) said on Sunday, as the world faces a "risky trinity" of high debt, low productivity growth and dwindling firepower at the world's big central banks.

The BIS, an umbrella body for major central banks, said in its annual report that the global economy was highly exposed even before Thursday's vote by Britain to leave the European Union.

"There are worrying developments, a sort of "risky trinity", that bear watching," said the head of the BIS monetary and economic department, Claudio Borio."



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Full Show: Bloomberg Markets Middle East (06/26) - Bloomberg

Full Show: Bloomberg Markets Middle East (06/26) - Bloomberg:




"Bloomberg Markets Middle East hosted by and Yousef Gamal El-Din and Anna Edwards. Guests include Majid Jafar, chief executive officer at Crescent Petroleum and Dino Kronfol, chief investment officer at Frankin Templeton Investments ME. (Corrects date of show in headline and guests in description.) (Source: Bloomberg)"



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MIDEAST STOCKS-Gulf sinks on Brexit but comes off lows; Egypt hardest hit | Reuters

MIDEAST STOCKS-Gulf sinks on Brexit but comes off lows; Egypt hardest hit | Reuters:

"Middle East stocks fell sharply on Sunday because of Britain's vote to leave the European Union but Gulf bourses came well off their lows. Egypt was hardest hit because of concern that fund inflows into the country could shrink further.

Most of the Gulf does not depend heavily on foreign capital or non-oil exports, so the main threat to it from Brexit is that slower growth in Europe could push down oil prices; Brent oil sank 4.9 percent to $48.42 a barrel on Friday.

Monica Malik, chief economist at Abu Dhabi Commercial Bank, said that among the six Gulf Cooperation Council economies, she expected the greatest impact of a weak pound and euro to be felt in the United Arab Emirates, because its large tourism and real estate sectors were vulnerable to exchange rate moves."



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MIDEAST STOCKS-Saudi falls sharply on Brexit, Arabian Pipes stays strong | Reuters

MIDEAST STOCKS-Saudi falls sharply on Brexit, Arabian Pipes stays strong | Reuters:

"Saudi Arabia's stock market fell sharply at the opening on Sunday in response to Britain's decision to leave the European Union, but blue chips held up relatively well and the biggest losses were in smaller speculative stocks favoured by local retail investors.

The main index was down 3.7 percent after five minutes of trade. Among speculative stocks, Saudi Fisheries tumbled 6.2 percent.

But petrochemical blue chip Saudi Basic Industries fell only 2.4 percent and National Commercial Bank was down 2.8 percent, suggesting institutional investors, who focus on such stocks, were not selling as heavily."



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MIDEAST STOCKS-Gulf stocks fall sharply in early trade, blue chips outperform | Reuters

MIDEAST STOCKS-Gulf stocks fall sharply in early trade, blue chips outperform | Reuters:

"Gulf stock markets fell sharply in early trade on Sunday in response to the global market turmoil caused by Britain's decision to leave the European Union.

Dubai's index was down 4.6 percent after 10 minutes to 3,211 points, near technical support on the May low of 3,197 points.

Speculative stocks favoured by local retail investors were hit hardest, with Arabtec losing 6.4 percent. Blue chips such as Emaar Properties, down 3.5 percent, fared relatively well."



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