Saudi rating to be judged on ‘reform progress’ not oil price warns Moody’s:
"Saudi Arabia’s future sovereign credit rating will be judged on the success of its reform program rather than its oil revenues, rating agency Moody’s has told Arab News. The global credit rating agency’s Managing Director of Global Sovereign Ratings, Alastair Wilson, said he attached importance to institutional determination to implement change and would also look at efforts made to diversify the economy to make it less reliant on fossil fuels. He said “a simple reversion to oil price strength” would not result in an automatic strengthening of Saudi Arabia’s or any other GCC state’s sovereign ratings, “hence this was a wake-up call and the authorities recognized this.”"
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Wednesday, 16 May 2018
Partnership between Masayoshi Son and Saudi Arabia not just about the money | Arab News
Partnership between Masayoshi Son and Saudi Arabia not just about the money | Arab News:
"When the mighty Economist devotes a four-page special briefing and its top opinion leader to one subject, you have to sit up and take notice. The movers and shakers who read the influential magazine demand the best analysis. Last week, it focused on the current situation at SoftBank, the Japanese finance and investing powerhouse (mere “bank” does not really do it justice), run by Masayoshi Son, and its Vision Fund which, at around $100bn in size, is revolutionizing the world of technology investment. The Economist’s lengthy analysis — based apparently on a long interview with Son and his senior executives — was entirely justified. The SoftBank Vision Fund is the biggest thing to happen in the history of the venture capital industry, and will shape the future of technology investment for decades to come."
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"When the mighty Economist devotes a four-page special briefing and its top opinion leader to one subject, you have to sit up and take notice. The movers and shakers who read the influential magazine demand the best analysis. Last week, it focused on the current situation at SoftBank, the Japanese finance and investing powerhouse (mere “bank” does not really do it justice), run by Masayoshi Son, and its Vision Fund which, at around $100bn in size, is revolutionizing the world of technology investment. The Economist’s lengthy analysis — based apparently on a long interview with Son and his senior executives — was entirely justified. The SoftBank Vision Fund is the biggest thing to happen in the history of the venture capital industry, and will shape the future of technology investment for decades to come."
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Qatar current account surplus widens to 6.4% of GDP - The Peninsula Qatar
Qatar current account surplus widens to 6.4% of GDP - The Peninsula Qatar:
"Qatar’s non-hydrocarbon real GDP recorded a solid 4.2 percent growth for the full year 2017. The country’s current account surplus widened to 6.4 percent of GDP in Q4 in line with higher oil prices while the financial account deficit narrowed. The Industrial production surged to 7.4 percent year-on-year(y/y) growth in Q3 on a rebound in the mining sector likely due to less maintenance on LNG trains, said QNB.
The country’s real GDP growth slowed marginally in Q4 mainly due to temporary shutdowns for LNG maintenance. Inflation slowed to 0.1 percent y/y in April; food inflation eased while housing inflation picked up.
QNB’s monthly monitor noted yesterday that Qatar’s Brent crude prices rose to an average of $72/b in April 2018; Qatar’s oil production fell to 539,000 b/d in February from 621,000 b/d prior."
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"Qatar’s non-hydrocarbon real GDP recorded a solid 4.2 percent growth for the full year 2017. The country’s current account surplus widened to 6.4 percent of GDP in Q4 in line with higher oil prices while the financial account deficit narrowed. The Industrial production surged to 7.4 percent year-on-year(y/y) growth in Q3 on a rebound in the mining sector likely due to less maintenance on LNG trains, said QNB.
The country’s real GDP growth slowed marginally in Q4 mainly due to temporary shutdowns for LNG maintenance. Inflation slowed to 0.1 percent y/y in April; food inflation eased while housing inflation picked up.
QNB’s monthly monitor noted yesterday that Qatar’s Brent crude prices rose to an average of $72/b in April 2018; Qatar’s oil production fell to 539,000 b/d in February from 621,000 b/d prior."
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HSBC to Cement Lead in Saudi Arabia With $5 Billion Bank Merger - Bloomberg
HSBC to Cement Lead in Saudi Arabia With $5 Billion Bank Merger - Bloomberg:
"HSBC Holdings Plc is set to reaffirm its position in Saudi Arabia with the takeover of Royal Bank of Scotland Group Plc’s local venture as lenders bet on the kingdom’s ambitious plans to transform its economy.
In the country’s first bank merger in almost 20 years, HSBC affiliate Saudi British Bank offered to take over RBS-backed Alawwal Bank in a $5 billion stock deal. The deal would make SABB the country’s third-biggest lender.
“For HSBC, this is in line with their broader strategy - the opportunities in Saudi Arabia are humongous and they’re not the only ones to realize that,” said Aarthi Chandrasekaran, vice president at Shuaa Capital. “They want to capitalize on their first mover advantage from the international space.”"
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"HSBC Holdings Plc is set to reaffirm its position in Saudi Arabia with the takeover of Royal Bank of Scotland Group Plc’s local venture as lenders bet on the kingdom’s ambitious plans to transform its economy.
In the country’s first bank merger in almost 20 years, HSBC affiliate Saudi British Bank offered to take over RBS-backed Alawwal Bank in a $5 billion stock deal. The deal would make SABB the country’s third-biggest lender.
“For HSBC, this is in line with their broader strategy - the opportunities in Saudi Arabia are humongous and they’re not the only ones to realize that,” said Aarthi Chandrasekaran, vice president at Shuaa Capital. “They want to capitalize on their first mover advantage from the international space.”"
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Russia's OPEC Deal Dilemma Worsens as Idled Crude Capacity Grows - Bloomberg
Russia's OPEC Deal Dilemma Worsens as Idled Crude Capacity Grows - Bloomberg:
"Russia will face a tough choice in talks with OPEC next month as an increasing number of its valuable oil wells lie idle.
Almost 4 percent of Russian production capacity isn’t being used, Citigroup Inc. said in a report on Wednesday. That raises questions about how the country will approach its June summit with OPEC amid growing signals of a tighter market, including shrinking global inventories and possible supply losses from Iran.
“The Kremlin faces the dilemma of either continuing to extend” output cuts or allowing companies to boost production, Citi analysts said. “Either way, Moscow is flexing its muscles globally with oil as an instrument of strategic policy.”"
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"Russia will face a tough choice in talks with OPEC next month as an increasing number of its valuable oil wells lie idle.
Almost 4 percent of Russian production capacity isn’t being used, Citigroup Inc. said in a report on Wednesday. That raises questions about how the country will approach its June summit with OPEC amid growing signals of a tighter market, including shrinking global inventories and possible supply losses from Iran.
“The Kremlin faces the dilemma of either continuing to extend” output cuts or allowing companies to boost production, Citi analysts said. “Either way, Moscow is flexing its muscles globally with oil as an instrument of strategic policy.”"
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France's Total warns of Iran exit as EU leaders seek to save economic ties | Reuters
France's Total warns of Iran exit as EU leaders seek to save economic ties | Reuters:
"French energy giant Total joined other European companies in signaling on Wednesday they could exit Iran, casting doubt on whether European leaders meeting to try to salvage the Iran nuclear deal can safeguard trade with Tehran. President Donald Trump’s withdrawal of the United States from the nuclear accord and his order that sanctions be reimposed on Tehran have left European allies scrambling to keep the deal alive and protect their Iranian trade. EU leaders gathered in the Bulgarian capital of Sofia on Wednesday for their first meeting on the matter since Trump quit the accord. But U.S. clout in international trade and finance limits their scope for action."
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"French energy giant Total joined other European companies in signaling on Wednesday they could exit Iran, casting doubt on whether European leaders meeting to try to salvage the Iran nuclear deal can safeguard trade with Tehran. President Donald Trump’s withdrawal of the United States from the nuclear accord and his order that sanctions be reimposed on Tehran have left European allies scrambling to keep the deal alive and protect their Iranian trade. EU leaders gathered in the Bulgarian capital of Sofia on Wednesday for their first meeting on the matter since Trump quit the accord. But U.S. clout in international trade and finance limits their scope for action."
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Saudi Arabia's National Commercial Bank changes CEO | Reuters
Saudi Arabia's National Commercial Bank changes CEO | Reuters:
"National Commercial Bank , Saudi Arabia’s largest bank by assets, said on Wednesday that chief executive Saeed al-Ghamdi had resigned, with sources familiar with the matter telling Reuters that he is set to be appointed chairman. In his place, Faisal Omar al-Sakkaf, NCB’s former head of strategy and business development, has been appointed as acting chief executive, the bank said in a statement. Al-Sakkaf is expected to become chief executive permanently once formal procedures are completed, the same sources said, with one adding that the shake-up was a normal “changing of the guard” at the bank."
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"National Commercial Bank , Saudi Arabia’s largest bank by assets, said on Wednesday that chief executive Saeed al-Ghamdi had resigned, with sources familiar with the matter telling Reuters that he is set to be appointed chairman. In his place, Faisal Omar al-Sakkaf, NCB’s former head of strategy and business development, has been appointed as acting chief executive, the bank said in a statement. Al-Sakkaf is expected to become chief executive permanently once formal procedures are completed, the same sources said, with one adding that the shake-up was a normal “changing of the guard” at the bank."
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U.S. sanctions on Iran to boost prices, keep oil at $70/bbl: Reuters poll | Reuters
U.S. sanctions on Iran to boost prices, keep oil at $70/bbl: Reuters poll | Reuters:
"Brent crude prices will sustain levels above $70 a barrel for longer, as U.S. President Donald Trump’s decision to reimpose sanctions on Iran is likely to tighten supply, a Reuters poll of analysts showed on Wednesday.
A survey of 11 analysts showed Brent crude LCOc1 prices were likely to average $71.22 a barrel this year and $71.26 in 2019, a sharp increase from the $67.40 and $66.39-per-barrel levels forecast in the April poll. Brent has averaged about $69 a barrel this year thus far and nearly touched $80 a barrel this week.
“Oil markets should become tighter due to a lower output from Iran, coupled with an ongoing contraction in Venezuelan output and OPEC cuts,” said Daniela Corsini, commodity market economist at Intesa Sanpaolo in Milan."
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"Brent crude prices will sustain levels above $70 a barrel for longer, as U.S. President Donald Trump’s decision to reimpose sanctions on Iran is likely to tighten supply, a Reuters poll of analysts showed on Wednesday.
A survey of 11 analysts showed Brent crude LCOc1 prices were likely to average $71.22 a barrel this year and $71.26 in 2019, a sharp increase from the $67.40 and $66.39-per-barrel levels forecast in the April poll. Brent has averaged about $69 a barrel this year thus far and nearly touched $80 a barrel this week.
“Oil markets should become tighter due to a lower output from Iran, coupled with an ongoing contraction in Venezuelan output and OPEC cuts,” said Daniela Corsini, commodity market economist at Intesa Sanpaolo in Milan."
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MIDEAST STOCKS-Saudi banks merger boosts Alawwal as geopolitical worries weigh on Gulf | Reuters
MIDEAST STOCKS-Saudi banks merger boosts Alawwal as geopolitical worries weigh on Gulf | Reuters:
"Saudi Arabia’s Alawwal Bank soared on Wednesday after the announcement of its planned merger with Saudi British Bank, while most Gulf stock markets closed in negative territory on the back of rising geopolitical concerns. The general weakness was in line with Asian markets, which slipped on Wednesday after North Korea called off talks with Seoul, throwing a U.S.-North Korean summit into doubt. Oil prices were also not supportive, down because of a rise in U.S. crude inventory and despite ongoing output cuts by producer group OPEC and the looming U.S. sanctions against Iran. In Saudi Arabia the index lost 1 percent, with most companies in the oil and gas and petrochemical sectors shedding some value. Blue-chip Saudi Basic Industries Corporation (SABIC) shed 1 percent."
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"Saudi Arabia’s Alawwal Bank soared on Wednesday after the announcement of its planned merger with Saudi British Bank, while most Gulf stock markets closed in negative territory on the back of rising geopolitical concerns. The general weakness was in line with Asian markets, which slipped on Wednesday after North Korea called off talks with Seoul, throwing a U.S.-North Korean summit into doubt. Oil prices were also not supportive, down because of a rise in U.S. crude inventory and despite ongoing output cuts by producer group OPEC and the looming U.S. sanctions against Iran. In Saudi Arabia the index lost 1 percent, with most companies in the oil and gas and petrochemical sectors shedding some value. Blue-chip Saudi Basic Industries Corporation (SABIC) shed 1 percent."
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Qatar blue-chip firms hold meetings with fund managers in UK - The Peninsula Qatar
Qatar blue-chip firms hold meetings with fund managers in UK - The Peninsula Qatar:
"Eight top QSE-listed companies have met with a number of international fund managers and investment decision makers in London, as part of an ‘investor relations’ event. The two-day event, jointly organised by Qatar Stock Exchange (QSE) Deutsche Bank and QNB Financial Services (QNBFS), covered a combination of one-to-one and group meetings and was the first undertaken since the introduction of the new MiFID regime. Listed companies met with market-leading institutions that represented the most important funds allocating money to Qatar, the GCC and the broader emerging markets. While Qatar Stock Exchange has been a member of key global indices, such as MSCI and FTSE Russell, since 2014 it continues to place emphasis on the importance of an ongoing improvement in transparency and ease of access for foreign investors. The London meetings with the fund managers come in the wake of a number of key listed companies increasing their foreign ownership limit (FOL) to 49 percent."
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"Eight top QSE-listed companies have met with a number of international fund managers and investment decision makers in London, as part of an ‘investor relations’ event. The two-day event, jointly organised by Qatar Stock Exchange (QSE) Deutsche Bank and QNB Financial Services (QNBFS), covered a combination of one-to-one and group meetings and was the first undertaken since the introduction of the new MiFID regime. Listed companies met with market-leading institutions that represented the most important funds allocating money to Qatar, the GCC and the broader emerging markets. While Qatar Stock Exchange has been a member of key global indices, such as MSCI and FTSE Russell, since 2014 it continues to place emphasis on the importance of an ongoing improvement in transparency and ease of access for foreign investors. The London meetings with the fund managers come in the wake of a number of key listed companies increasing their foreign ownership limit (FOL) to 49 percent."
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Alawwal and SABB to merge to create Saudi Arabia's third largest bank | Reuters
Alawwal and SABB to merge to create Saudi Arabia's third largest bank | Reuters:
"Saudi British Bank (SABB) 1060.SE and Alawwal Bank 1040.SE have agreed a merger that would create Saudi Arabia’s third-biggest bank with assets of around $77 billion, the two banks said on Wednesday. The agreement, which involves SABB acquiring the smaller Alawwal for 18.6 billion riyals ($4.96 billion), is the first major banking tie-up in the kingdom for around 20 years and comes as Saudi Arabia embarks upon a plan to transform the economy and cut its dependence on oil revenues. The boards of the two banks have reached a non-binding agreement on the share exchange ratio, subject to several conditions, the two banks said in separate joint statements to the Saudi Arabian bourse."
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"Saudi British Bank (SABB) 1060.SE and Alawwal Bank 1040.SE have agreed a merger that would create Saudi Arabia’s third-biggest bank with assets of around $77 billion, the two banks said on Wednesday. The agreement, which involves SABB acquiring the smaller Alawwal for 18.6 billion riyals ($4.96 billion), is the first major banking tie-up in the kingdom for around 20 years and comes as Saudi Arabia embarks upon a plan to transform the economy and cut its dependence on oil revenues. The boards of the two banks have reached a non-binding agreement on the share exchange ratio, subject to several conditions, the two banks said in separate joint statements to the Saudi Arabian bourse."
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Qatar attempts to build its way out of a blockade
Qatar attempts to build its way out of a blockade:
"North of Qatar’s capital, the new city of Lusail is a maze of empty streets and semi-completed towers. Dozens of cranes loom over construction sites. Signs indicate directions to the sole government building operating in the area, the economy ministry.
The occasional glimpse of washing drying on a balcony is the only evidence of daily life in this waterfront city near Doha, which is planned to accommodate 200,000 people. Yet come 2022, Lusail’s 80,000-seater stadium, designed by Foster + Partners and under construction, will host the final of the football World Cup.
The city’s rapid progress from dusty desert to global centrepiece comes as the rest of Qatar faces the most serious external threat in its four-decade history, the trade and travel embargo imposed last June by four Arab states — Saudi Arabia, the United Arab Emirates, Bahrain and Egypt — over the peninsula’s alleged support for terrorism."
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"North of Qatar’s capital, the new city of Lusail is a maze of empty streets and semi-completed towers. Dozens of cranes loom over construction sites. Signs indicate directions to the sole government building operating in the area, the economy ministry.
The occasional glimpse of washing drying on a balcony is the only evidence of daily life in this waterfront city near Doha, which is planned to accommodate 200,000 people. Yet come 2022, Lusail’s 80,000-seater stadium, designed by Foster + Partners and under construction, will host the final of the football World Cup.
The city’s rapid progress from dusty desert to global centrepiece comes as the rest of Qatar faces the most serious external threat in its four-decade history, the trade and travel embargo imposed last June by four Arab states — Saudi Arabia, the United Arab Emirates, Bahrain and Egypt — over the peninsula’s alleged support for terrorism."
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MIDEAST STOCKS-Saudi’s Alawwal Bank leaps on merger news in generally soft Gulf | Reuters
MIDEAST STOCKS-Saudi’s Alawwal Bank leaps on merger news in generally soft Gulf | Reuters:
"Shares in Saudi Arabia’s Alawwal Bank soared in early trade on Wednesday in response to news on its planned merger with Saudi British Bank, while Gulf stock markets were generally soft. The Saudi index was down 0.5 percent after an hour. But Alawwal jumped 10 percent to 13.92 riyals in its heaviest trade since April 2017, after it and SABB said they reached a preliminary, non-binding agreement to merge, creating Saudi Arabia’s third-biggest bank with assets of around $77 billion. The deal would value each Alawwal share at 16.3 dirhams, SABB said — a big premium to the market price. SABB shares sank 4.7 percent as some investors bet the bank was overpaying."
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"Shares in Saudi Arabia’s Alawwal Bank soared in early trade on Wednesday in response to news on its planned merger with Saudi British Bank, while Gulf stock markets were generally soft. The Saudi index was down 0.5 percent after an hour. But Alawwal jumped 10 percent to 13.92 riyals in its heaviest trade since April 2017, after it and SABB said they reached a preliminary, non-binding agreement to merge, creating Saudi Arabia’s third-biggest bank with assets of around $77 billion. The deal would value each Alawwal share at 16.3 dirhams, SABB said — a big premium to the market price. SABB shares sank 4.7 percent as some investors bet the bank was overpaying."
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