U.S. Gas Exports Hit by China Tariffs as Trade War Escalates - Bloomberg:
China plans to slap tariffs on U.S. natural gas exports as trade tensions escalate, a likely setback for the burgeoning energy relationship between the world’s two largest economies.
The Asian nation said in a statement Tuesday it would levy a 10 percent duty on liquefied natural gas starting Sept. 24, retaliation for a fresh round of tariffs announced the day before by the U.S.
While China’s levy is less than the 25 percent it proposed last month, the tariff still brings additional pressure to bear on the U.S. gas industry, which is competing with Russia, Australia and Qatar for market share in China, the world’s biggest buyer. Just last year, American officials were courting Chinese companies to invest in new export projects.
Tuesday, 18 September 2018
Qatar's QIA Chief Is Said to Leave $320 Billion Wealth Fund - Bloomberg
Qatar's QIA Chief Is Said to Leave $320 Billion Wealth Fund - Bloomberg:
The chief executive officer of the Qatar Investment Authority is leaving the firm after almost four years at the helm of one of the world’s largest sovereign funds, according to people with knowledge of the matter.
The reasons behind the surprise departure of Qatari royal Sheikh Abdullah Bin Mohammed Al Thani, weren’t immediately clear and a replacement is yet to be officially named, the people said on condition of anonymity. A spokesman for the QIA wasn’t immediately able to comment.
Sheikh Abdullah was appointed in December 2014, replacing Ahmed Al-Sayed. Before joining the fund, he had served as the chairman of Ooredoo QSC, the country’s largest telecommunications company, since 2000. Sheikh Abdullah led the company’s expansion into Kuwait, Indonesia and more than a dozen other countries in Africa and Asia.
The chief executive officer of the Qatar Investment Authority is leaving the firm after almost four years at the helm of one of the world’s largest sovereign funds, according to people with knowledge of the matter.
The reasons behind the surprise departure of Qatari royal Sheikh Abdullah Bin Mohammed Al Thani, weren’t immediately clear and a replacement is yet to be officially named, the people said on condition of anonymity. A spokesman for the QIA wasn’t immediately able to comment.
Sheikh Abdullah was appointed in December 2014, replacing Ahmed Al-Sayed. Before joining the fund, he had served as the chairman of Ooredoo QSC, the country’s largest telecommunications company, since 2000. Sheikh Abdullah led the company’s expansion into Kuwait, Indonesia and more than a dozen other countries in Africa and Asia.
Crude Advances as Saudis Indicate Oil Over $80 Is Just Fine - Bloomberg
Crude Advances as Saudis Indicate Oil Over $80 Is Just Fine - Bloomberg:
Crude popped higher amid indications that Saudi Arabia is just fine with oil prices pushing past $80 a barrel given the looming supply losses from Iran.
Futures in New York climbed as much as 2.2 percent on Tuesday. The world’s biggest crude exporter is said to be comfortable with Brent prices rising above $80 a barrel as markets adjust to the loss of Iranian supply due to U.S.-imposed sanctions, with oil exports from the nation plunging about 35 percent since April. In the U.S., crude inventories are seen declining for a fifth straight week.
“The comments that the Saudis were happy with higher prices combined with what looks like dropping Iranian oil exports is making people think we’re going into another bull period,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts.
Crude popped higher amid indications that Saudi Arabia is just fine with oil prices pushing past $80 a barrel given the looming supply losses from Iran.
Futures in New York climbed as much as 2.2 percent on Tuesday. The world’s biggest crude exporter is said to be comfortable with Brent prices rising above $80 a barrel as markets adjust to the loss of Iranian supply due to U.S.-imposed sanctions, with oil exports from the nation plunging about 35 percent since April. In the U.S., crude inventories are seen declining for a fifth straight week.
“The comments that the Saudis were happy with higher prices combined with what looks like dropping Iranian oil exports is making people think we’re going into another bull period,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts.
Clariant, SABIC tighten links under new partnership | ZAWYA MENA Edition
Clariant, SABIC tighten links under new partnership | ZAWYA MENA Edition:
Switzerland's Clariant and new anchor shareholder Saudi Basic Industries Corp (SABIC) will merge their high-performance materials businesses and install a SABIC manager as head of the group as they strengthen their partnership.
The new joint venture and governance accord announced on Tuesday mark the first concrete signs of how SABIC's arrival as a white knight in January is reshaping the speciality chemicals group that U.S. activists had targeted.
The partners had agreed that SABIC would not take over Clariant but could boost the 24.99 percent stake it bought from the activists to rescue Clariant from a hostile takeover threat, Clariant Chief Executive Hariolf Kottmann told a news conference.
Switzerland's Clariant and new anchor shareholder Saudi Basic Industries Corp (SABIC) will merge their high-performance materials businesses and install a SABIC manager as head of the group as they strengthen their partnership.
The new joint venture and governance accord announced on Tuesday mark the first concrete signs of how SABIC's arrival as a white knight in January is reshaping the speciality chemicals group that U.S. activists had targeted.
The partners had agreed that SABIC would not take over Clariant but could boost the 24.99 percent stake it bought from the activists to rescue Clariant from a hostile takeover threat, Clariant Chief Executive Hariolf Kottmann told a news conference.
REFILE-Abu Dhabi Islamic aims to boost lending after capital increase | Reuters
REFILE-Abu Dhabi Islamic aims to boost lending after capital increase | Reuters:
Abu Dhabi Islamic Bank expects to increase lending in 2018 after boosting its capital, its acting chief executive said, as the sharia-compliant bank’s rate of profit growth slows as it battles against a sluggish economy.
An economy weakened by lower oil prices and a crowded banking market has hit the balance sheets of United Arab Emirates’ banks and hobbled loan growth.
ADIB, the largest sharia-compliant lender in Abu Dhabi, expects to increase profit in 2018 in single digit percentage terms, acting-CEO Khamis Buharoon al-Shamsi said. This compares with growth of 18 percent in 2017.
Abu Dhabi Islamic Bank expects to increase lending in 2018 after boosting its capital, its acting chief executive said, as the sharia-compliant bank’s rate of profit growth slows as it battles against a sluggish economy.
An economy weakened by lower oil prices and a crowded banking market has hit the balance sheets of United Arab Emirates’ banks and hobbled loan growth.
ADIB, the largest sharia-compliant lender in Abu Dhabi, expects to increase profit in 2018 in single digit percentage terms, acting-CEO Khamis Buharoon al-Shamsi said. This compares with growth of 18 percent in 2017.
Qatar National Bank in talks to refinance 2.25 bln euro loan - sources | Reuters
Qatar National Bank in talks to refinance 2.25 bln euro loan - sources | Reuters:
Qatar National Bank, the largest bank by assets in the Middle East and Africa, is in discussions with lenders to refinance a 2.25 billion euro syndicated loan, sources familiar with the matter said.
QNB, which is 50 percent owned by Qatar’s sovereign wealth fund Qatar Investment Authority, is a regular borrower in the international syndicated loan market. Over the past three years it has raised over $7 billion in loans.
But a diplomatic crisis which erupted in the Gulf last year has made some international lenders more cautious about their exposure to Qatari entities, several sources told Reuters over the past year.
Qatar National Bank, the largest bank by assets in the Middle East and Africa, is in discussions with lenders to refinance a 2.25 billion euro syndicated loan, sources familiar with the matter said.
QNB, which is 50 percent owned by Qatar’s sovereign wealth fund Qatar Investment Authority, is a regular borrower in the international syndicated loan market. Over the past three years it has raised over $7 billion in loans.
But a diplomatic crisis which erupted in the Gulf last year has made some international lenders more cautious about their exposure to Qatari entities, several sources told Reuters over the past year.
Oil rises 1 percent on signs OPEC not prepared to boost output | Reuters
Oil rises 1 percent on signs OPEC not prepared to boost output | Reuters:
Oil futures rose more than 1 percent on Tuesday on signs that OPEC would not be prepared to raise output to address shrinking supplies from Iran, and as Saudi Arabia signaled an informal target near current levels.
Brent crude LCOc1 futures were up 89 cents, or 1.1 percent, to $78.94 a barrel by 12:58 p.m. EDT (1658 GMT).
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 88 cents, or 1.3 percent, to $69.79 a barrel.
Oil futures rose more than 1 percent on Tuesday on signs that OPEC would not be prepared to raise output to address shrinking supplies from Iran, and as Saudi Arabia signaled an informal target near current levels.
Brent crude LCOc1 futures were up 89 cents, or 1.1 percent, to $78.94 a barrel by 12:58 p.m. EDT (1658 GMT).
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 88 cents, or 1.3 percent, to $69.79 a barrel.
MIDEAST STOCKS-Saudi stocks lifted by oil rise, SABIC-Clariant partnership | Reuters
MIDEAST STOCKS-Saudi stocks lifted by oil rise, SABIC-Clariant partnership | Reuters:
Saudi Arabia’s stock market closed higher on Tuesday, buoyed by rising oil prices and more details on Saudi Basic Industries Corp’s (SABIC) partnership with Switzerland’s Clariant.
Other Gulf markets closed mostly lower.
In Egypt, the stock index was flat, closing up 0.02 percent after tumbling to its lowest level this year on Monday due to fallout from the arrest of ousted President Hosni Mubarak’s two sons on charges of stock market manipulation.
Saudi Arabia’s stock market closed higher on Tuesday, buoyed by rising oil prices and more details on Saudi Basic Industries Corp’s (SABIC) partnership with Switzerland’s Clariant.
Other Gulf markets closed mostly lower.
In Egypt, the stock index was flat, closing up 0.02 percent after tumbling to its lowest level this year on Monday due to fallout from the arrest of ousted President Hosni Mubarak’s two sons on charges of stock market manipulation.
Saudi Reforms Could Cause a Crisis for Egypt - Bloomberg
Saudi Reforms Could Cause a Crisis for Egypt - Bloomberg:
In August, as the Turkish lira crisis set off anxieties of financial turmoil in other developing economies, the Egyptian pound held firm. That was thanks to painful reforms the government of President Abdel-Fattah El-Sisi began in 2016. Allowing the currency to trade freely, along with a rise in tourism and in remittances from Egyptians working abroad, had helped to stabilize the Egyptian economy, prompting S&P Global Ratings to raise the nation’s credit rating.
Now, Egypt’s reforms face an unexpected challenge from the reform agenda of its most important political and economic allies, Saudi Arabia. The knock-on effect of Crown Prince Mohammed bin Salman’s plan for economic modernization could force El-Sisi to deepen spending cuts and seek more expensive borrowing. The way out for the president is to make bolder changes, to cut the Egyptian economy loose from the restricting ties to the state, and its all-powerful military.
On Sept. 11, the Saudi government began to enforce strict labor-market regulations, to boost employment of its own nationals at the expense of foreign workers. The hiring restrictions, part of Prince Mohammed’s Vision 2030 program, were announced in January, and there has been a steady exodus of foreigners ever since. According to Saudi government statistics, the number of foreigners employed in the kingdom fell from 10,883,335 in the fourth quarter of 2016 to 10,183,104 in the first quarter of 2018.
In August, as the Turkish lira crisis set off anxieties of financial turmoil in other developing economies, the Egyptian pound held firm. That was thanks to painful reforms the government of President Abdel-Fattah El-Sisi began in 2016. Allowing the currency to trade freely, along with a rise in tourism and in remittances from Egyptians working abroad, had helped to stabilize the Egyptian economy, prompting S&P Global Ratings to raise the nation’s credit rating.
Now, Egypt’s reforms face an unexpected challenge from the reform agenda of its most important political and economic allies, Saudi Arabia. The knock-on effect of Crown Prince Mohammed bin Salman’s plan for economic modernization could force El-Sisi to deepen spending cuts and seek more expensive borrowing. The way out for the president is to make bolder changes, to cut the Egyptian economy loose from the restricting ties to the state, and its all-powerful military.
On Sept. 11, the Saudi government began to enforce strict labor-market regulations, to boost employment of its own nationals at the expense of foreign workers. The hiring restrictions, part of Prince Mohammed’s Vision 2030 program, were announced in January, and there has been a steady exodus of foreigners ever since. According to Saudi government statistics, the number of foreigners employed in the kingdom fell from 10,883,335 in the fourth quarter of 2016 to 10,183,104 in the first quarter of 2018.
Qatar Fund Said to Near Investment in China's Top Online Lender - Bloomberg
Qatar Fund Said to Near Investment in China's Top Online Lender - Bloomberg:
The Qatar Investment Authority is in advanced talks about an investment in Lufax, China’s biggest online lender, as the sovereign wealth fund seeks to tap into the world’s second-largest economy, people familiar with the matter said.
QIA has been negotiating the potential purchase of a minority stake in Lufax, which is an arm of China’s Ping An Insurance (Group) Co., according to the people. It could spend about $500 million to $1 billion, the people said, asking not to be identified because the matter is private.
A deal could be announced as soon as the next few weeks, the people said. Shanghai-based Lufax, which became profitable for the first time last year, completed a fundraising in 2016 that valued it at $18.5 billion.
The Qatar Investment Authority is in advanced talks about an investment in Lufax, China’s biggest online lender, as the sovereign wealth fund seeks to tap into the world’s second-largest economy, people familiar with the matter said.
QIA has been negotiating the potential purchase of a minority stake in Lufax, which is an arm of China’s Ping An Insurance (Group) Co., according to the people. It could spend about $500 million to $1 billion, the people said, asking not to be identified because the matter is private.
A deal could be announced as soon as the next few weeks, the people said. Shanghai-based Lufax, which became profitable for the first time last year, completed a fundraising in 2016 that valued it at $18.5 billion.
Rebounding Qatar Stocks Shine in 2018 as Dubai Lacks Sparkle - Bloomberg
Rebounding Qatar Stocks Shine in 2018 as Dubai Lacks Sparkle - Bloomberg:
When it comes to their Gulf stock-market rivalry, Doha is easily outshining Dubai.
The main Qatari equities index is 2018’s best performer worldwide in dollar terms, up 15 percent. Earlier this year, it recovered all the losses caused by Qatar’s diplomatic standoff with a group of countries including the United Arab Emirates and Saudi Arabia that began 15 months ago. In bleak contrast, Dubai stocks are languishing at their lowest level since January 2016 after falling 19 percent this year.
Qatar responded to the spat with steps to entice investors. Several companies have allowed increased foreign ownership, while the country has made permanent residency an option for some non-nationals. A minister even described the embargo as “a blessing” for the gas-rich nation, with exports and global trade rising. The U.A.E. has taken steps of its own to stimulate its economy at a time of dropping Dubai real-estate prices and faltering demand, but these efforts are yet to reflect in stock performances.
When it comes to their Gulf stock-market rivalry, Doha is easily outshining Dubai.
The main Qatari equities index is 2018’s best performer worldwide in dollar terms, up 15 percent. Earlier this year, it recovered all the losses caused by Qatar’s diplomatic standoff with a group of countries including the United Arab Emirates and Saudi Arabia that began 15 months ago. In bleak contrast, Dubai stocks are languishing at their lowest level since January 2016 after falling 19 percent this year.
Qatar responded to the spat with steps to entice investors. Several companies have allowed increased foreign ownership, while the country has made permanent residency an option for some non-nationals. A minister even described the embargo as “a blessing” for the gas-rich nation, with exports and global trade rising. The U.A.E. has taken steps of its own to stimulate its economy at a time of dropping Dubai real-estate prices and faltering demand, but these efforts are yet to reflect in stock performances.
Dubai's DP World markets 30-year conventional bond, 10-year sukuk | ZAWYA MENA Edition
Dubai's DP World markets 30-year conventional bond, 10-year sukuk | ZAWYA MENA Edition:
Dubai's port operator DP World has started marketing a 30-year conventional bond and 10-year sukuk, or Islamic bonds, a document by one of the banks leading the transaction showed.
The company has given initial price guidance in the 5.875 percent area for the 30-year paper, and in the 200 basis points over mid-swaps area for the 10-year sukuk.
Barclays, Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JPMorgan, Societe Generale and Standard Chartered Bank are the joint bookrunners of the 30-year bond deal, while the list of bookrunners for the planned sukuk comprises the same lenders and Dubai Islamic Bank.
Dubai's port operator DP World has started marketing a 30-year conventional bond and 10-year sukuk, or Islamic bonds, a document by one of the banks leading the transaction showed.
The company has given initial price guidance in the 5.875 percent area for the 30-year paper, and in the 200 basis points over mid-swaps area for the 10-year sukuk.
Barclays, Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JPMorgan, Societe Generale and Standard Chartered Bank are the joint bookrunners of the 30-year bond deal, while the list of bookrunners for the planned sukuk comprises the same lenders and Dubai Islamic Bank.
Boursa Kuwait's listing on FTSE EM index to attract $800mln liquidity | ZAWYA MENA Edition
Boursa Kuwait's listing on FTSE EM index to attract $800mln liquidity | ZAWYA MENA Edition:
Boursa Kuwait is closely awaiting the actual listing on the FTSE Russell index for emerging markets within the coming few days, which will positively affect its performance through attracting more investments.
The stock index compiler previously announced the inclusion of the Kuwaiti bourse in its EM index in two stages, one in late September, while the other will be in December 2018.
FTSE projected that Kuwait would have a total 0.4% weighting in the index.
Boursa Kuwait is closely awaiting the actual listing on the FTSE Russell index for emerging markets within the coming few days, which will positively affect its performance through attracting more investments.
The stock index compiler previously announced the inclusion of the Kuwaiti bourse in its EM index in two stages, one in late September, while the other will be in December 2018.
FTSE projected that Kuwait would have a total 0.4% weighting in the index.
Oil prices fall as U.S.-China trade war clouds demand outlook | Reuters
Oil prices fall as U.S.-China trade war clouds demand outlook | Reuters:
Oil markets slipped on Tuesday as the latest escalation in the Sino-U.S. trade war clouded the outlook for crude demand from the two countries, the world’s top crude consumers.
Brent crude LCOc1 futures had dropped 29 cents, or 0.37 percent, to $77.76 per barrel by 0632 GMT.
U.S. West Texas Intermediate (WTI) crude CLc1 was down 15 cents, or 0.22 percent, at $68.76 per barrel.
Oil markets slipped on Tuesday as the latest escalation in the Sino-U.S. trade war clouded the outlook for crude demand from the two countries, the world’s top crude consumers.
Brent crude LCOc1 futures had dropped 29 cents, or 0.37 percent, to $77.76 per barrel by 0632 GMT.
U.S. West Texas Intermediate (WTI) crude CLc1 was down 15 cents, or 0.22 percent, at $68.76 per barrel.
Qatar Airways blames $69 million annual loss on Gulf dispute | Reuters
Qatar Airways blames $69 million annual loss on Gulf dispute | Reuters:
Qatar Airways reported on Tuesday a 252 million riyals ($69 million) loss for the financial year ending March 31, citing a regional political dispute that has seen it banned from four Arab countries.
Saudi Arabia, the United Arab Emirates (UAE), Egypt, and Bahrain have banned Qatar Airways since June 2017 as part of a dispute they have with the government of Qatar.
“This turbulent year has inevitably had an impact on our financial results,” Qatar Airways Chief Executive Akbar al-Baker said in a statement.
Qatar Airways reported on Tuesday a 252 million riyals ($69 million) loss for the financial year ending March 31, citing a regional political dispute that has seen it banned from four Arab countries.
Saudi Arabia, the United Arab Emirates (UAE), Egypt, and Bahrain have banned Qatar Airways since June 2017 as part of a dispute they have with the government of Qatar.
“This turbulent year has inevitably had an impact on our financial results,” Qatar Airways Chief Executive Akbar al-Baker said in a statement.
OPEC chief: Cartel must stay together as US sanctions Iran
OPEC chief: Cartel must stay together as US sanctions Iran:
OPEC must stick together for the good of the global economy as founding member Iran faces renewed U.S. sanctions, the head of the cartel said Tuesday — though he did not address how an already-tight market will make up for the loss of Iranian supply.
Mohammed Sanusi Barkindo also said an agreement between OPEC and non-members that cut production and helped bring prices back up from lows of $30 a barrel in January 2016 was now “a permanent feature.”
Cementing that arrangement would be one of the topics of discussion as OPEC meets this Sunday in Algeria, he added.
OPEC must stick together for the good of the global economy as founding member Iran faces renewed U.S. sanctions, the head of the cartel said Tuesday — though he did not address how an already-tight market will make up for the loss of Iranian supply.
Mohammed Sanusi Barkindo also said an agreement between OPEC and non-members that cut production and helped bring prices back up from lows of $30 a barrel in January 2016 was now “a permanent feature.”
Cementing that arrangement would be one of the topics of discussion as OPEC meets this Sunday in Algeria, he added.
MIDEAST STOCKS-Gulf markets open weaker, Deyaar soars in Dubai | Reuters
MIDEAST STOCKS-Gulf markets open weaker, Deyaar soars in Dubai | Reuters:
Most Gulf markets opened in negative territory on Tuesday, mirroring a slip in Asian shares after Washington announced new tariffs on Chinese imports, escalating trade tensions between the world’s two biggest economies.
In Dubai, where the index was down 0.7 percent in the first hour of trade, second-tier real estate developer Deyaar Development soared 7 percent to 0.45 dirhams, and was one of the most heavily traded stocks by a large margin.
Shares in the company have rebounded from a five-year low hit last month and last week rose above their 100-day average for the first time since March.
Most Gulf markets opened in negative territory on Tuesday, mirroring a slip in Asian shares after Washington announced new tariffs on Chinese imports, escalating trade tensions between the world’s two biggest economies.
In Dubai, where the index was down 0.7 percent in the first hour of trade, second-tier real estate developer Deyaar Development soared 7 percent to 0.45 dirhams, and was one of the most heavily traded stocks by a large margin.
Shares in the company have rebounded from a five-year low hit last month and last week rose above their 100-day average for the first time since March.
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