U.S. lawmakers' concern on Saudi Arabia prompts Pompeo, Mattis briefing | Reuters:
Secretary of State Mike Pompeo and Secretary of Defense Jim Mattis will brief the U.S. Senate on Wednesday on the latest developments related to Saudi Arabia, Senator John Cornyn, the number two Senate Republican, told reporters on Monday.
Many U.S. lawmakers, including some of President Donald Trump’s fellow Republicans, have rejected Trump’s embrace of Saudi Arabia. They have called for a strong U.S. response to the murder of prominent Saudi journalist Jamal Khashoggi, and the war in Yemen, which has created one of the world’s most urgent humanitarian disasters.
Trump vowed last week to remain a “steadfast partner” of Saudi Arabia and said it was not clear whether Saudi Crown Prince Mohammed bin Salman knew about the plan to kill Khashoggi last month at the Saudi consulate in Istanbul.
Monday, 26 November 2018
Oil breaks above $60/bbl, but doubts about growth curb gains | Reuters
Oil breaks above $60/bbl, but doubts about growth curb gains | Reuters:
Oil prices rose nearly 3 percent on Monday, clawing back some of last week’s steep losses, but gains were capped by uncertainty over global economic growth and further signs of increasing supply, including record Saudi production.
Brent crude LCOc1 futures rose $1.68 to settle at $60.48 a barrel, a 2.9 percent gain. U.S. West Texas Intermediate (WTI) crude CLc1 gained $1.21, or 2.4 percent, to close at $51.63 a barrel.
Prices on Friday hit their lowest since October 2017 amid intensifying fears of a supply glut. Brent sank to $58.41 a barrel, while WTI fell to $50.15 a barrel.
Oil prices rose nearly 3 percent on Monday, clawing back some of last week’s steep losses, but gains were capped by uncertainty over global economic growth and further signs of increasing supply, including record Saudi production.
Brent crude LCOc1 futures rose $1.68 to settle at $60.48 a barrel, a 2.9 percent gain. U.S. West Texas Intermediate (WTI) crude CLc1 gained $1.21, or 2.4 percent, to close at $51.63 a barrel.
Prices on Friday hit their lowest since October 2017 amid intensifying fears of a supply glut. Brent sank to $58.41 a barrel, while WTI fell to $50.15 a barrel.
Dubai bourse sees continued selling
Dubai bourse sees continued selling:
The Dubai Financial Market (DFM) witnessed another round of selling on Monday as traders remained cautious ahead of a long holidays.
The DFM general index closed 0.44 per cent lower at 2,727.41, as it managed to stay above the support level of 2.706 that has proved critical after the gauged bounced back from these levels twice.
Emaar Properties closed 1.2 per cent lower at Dh4.74.
The Dubai Financial Market (DFM) witnessed another round of selling on Monday as traders remained cautious ahead of a long holidays.
The DFM general index closed 0.44 per cent lower at 2,727.41, as it managed to stay above the support level of 2.706 that has proved critical after the gauged bounced back from these levels twice.
Emaar Properties closed 1.2 per cent lower at Dh4.74.
Abu Dhabi's Al Hilal Bank uses blockchain to sell sukuk in secondary market | Reuters
Abu Dhabi's Al Hilal Bank uses blockchain to sell sukuk in secondary market | Reuters:
Abu Dhabi’s Al Hilal Bank has executed the world’s first sukuk transaction using blockchain technology, it said on Monday.
The Islamic bank used the distributed ledger technology, best known as the underpinning of crypto-currency Bitcoin, to sell and settle in the secondary market a small portion of its $500 million five-year sukuk, issued in September.
“Al Hilal Bank is aiming to transform the sukuk market through embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic sukuk,” it said.
Abu Dhabi’s Al Hilal Bank has executed the world’s first sukuk transaction using blockchain technology, it said on Monday.
The Islamic bank used the distributed ledger technology, best known as the underpinning of crypto-currency Bitcoin, to sell and settle in the secondary market a small portion of its $500 million five-year sukuk, issued in September.
“Al Hilal Bank is aiming to transform the sukuk market through embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic sukuk,” it said.
Foreign institutional buying interests lifts Qatar shares
Foreign institutional buying interests lifts Qatar shares:
Foreign institutions’ strengthened buying interests lifted the Qatar Stock Exchange as its key index on Monday surpassed the 10,350 levels.
An across the board buying – particularly in telecom, real estate and banking – helped the 20-stock Qatar Index to gain more than 1% to 10,356.62 points.
However, there was increased net selling pressure from domestic institutions and local retail investors in the market, which is up 21.51% year-to-date.
Foreign institutions’ strengthened buying interests lifted the Qatar Stock Exchange as its key index on Monday surpassed the 10,350 levels.
An across the board buying – particularly in telecom, real estate and banking – helped the 20-stock Qatar Index to gain more than 1% to 10,356.62 points.
However, there was increased net selling pressure from domestic institutions and local retail investors in the market, which is up 21.51% year-to-date.
Crude Jumps Most in Five Months on Optimism Over End to Oil Glut - Bloomberg
Crude Jumps Most in Five Months on Optimism Over End to Oil Glut - Bloomberg:
Crude is on track for its biggest advance in five months as the world’s biggest oil exporters prepare to discuss global supplies.
Futures rose as much as 3.6 percent in New York on Monday, clawing back almost half of Friday’s loss. All eyes are on this week’s G20 gathering in Argentina that will include Saudi Crown Prince Mohammed Bin Salman and Russian President Vladimir Putin. That event will be followed by a key OPEC meeting next week in Vienna.
“There has been sufficient commentary out of various OPEC members about addressing this oversupply situation, either at the G20 or at the upcoming OPEC meeting,” said John Kilduff, a partner at New York-based hedge fund Again Capital LLC.
Crude is on track for its biggest advance in five months as the world’s biggest oil exporters prepare to discuss global supplies.
Futures rose as much as 3.6 percent in New York on Monday, clawing back almost half of Friday’s loss. All eyes are on this week’s G20 gathering in Argentina that will include Saudi Crown Prince Mohammed Bin Salman and Russian President Vladimir Putin. That event will be followed by a key OPEC meeting next week in Vienna.
“There has been sufficient commentary out of various OPEC members about addressing this oversupply situation, either at the G20 or at the upcoming OPEC meeting,” said John Kilduff, a partner at New York-based hedge fund Again Capital LLC.
UAE Dangles Billions of Dollars Before Brazil, With One Catch - Bloomberg
UAE Dangles Billions of Dollars Before Brazil, With One Catch - Bloomberg:
The United Arab Emirates is willing to expand its multi-billion dollar investments in Brazil as long as it’s no longer labeled a tax haven by Latin America’s largest economy.
The UAE Ambassador to Brazil, Hafsa Abdulla Al Ulama, said her country’s sovereign wealth funds are ready to boost investments in infrastructure, energy and agriculture should the nation be removed from the list.
"Our sovereign funds would like to see that there are incentives for people to come and invest", she said in an interview in Brazil’s capital city, Brasilia. "Singapore and Switzerland have been removed from the tax haven list. Why not UAE?"
The United Arab Emirates is willing to expand its multi-billion dollar investments in Brazil as long as it’s no longer labeled a tax haven by Latin America’s largest economy.
The UAE Ambassador to Brazil, Hafsa Abdulla Al Ulama, said her country’s sovereign wealth funds are ready to boost investments in infrastructure, energy and agriculture should the nation be removed from the list.
"Our sovereign funds would like to see that there are incentives for people to come and invest", she said in an interview in Brazil’s capital city, Brasilia. "Singapore and Switzerland have been removed from the tax haven list. Why not UAE?"
Interview: Saudi's SEDCO Capital looking to create its own ethical fund | ZAWYA MENA Edition
Interview: Saudi's SEDCO Capital looking to create its own ethical fund | ZAWYA MENA Edition:
A decision taken last year by one of Saudi Arabia's biggest asset managers to adopt a new Prudent Ethical Investing strategy has already had a significant effect on its investment decisions, with the firm now sizing up the launch of a new ethical fund, the company's senior director of business development has said.
In an interview with Zawya on the sidelines of the Global Islamic Economy Summit on October 31, SEDCO Capital’s Ayman Al Bashir said that the Jeddah-based asset management firm has already reviewed its line-up of existing asset managers, and no longer invests with firms unless they are either signatories to the United Nations-based Principles for Responsible Investing (PRI), or have an environmental, social and governance layer within their investment offerings.
"In the past, we used just to follow performance. So this is a new change. Any active manager has to have one of these two options," he said.
A decision taken last year by one of Saudi Arabia's biggest asset managers to adopt a new Prudent Ethical Investing strategy has already had a significant effect on its investment decisions, with the firm now sizing up the launch of a new ethical fund, the company's senior director of business development has said.
In an interview with Zawya on the sidelines of the Global Islamic Economy Summit on October 31, SEDCO Capital’s Ayman Al Bashir said that the Jeddah-based asset management firm has already reviewed its line-up of existing asset managers, and no longer invests with firms unless they are either signatories to the United Nations-based Principles for Responsible Investing (PRI), or have an environmental, social and governance layer within their investment offerings.
"In the past, we used just to follow performance. So this is a new change. Any active manager has to have one of these two options," he said.
Breakingviews - Trump’s Saudi amorality can make Gulf great again | Reuters
Breakingviews - Trump’s Saudi amorality can make Gulf great again | Reuters:
U.S. President Donald Trump’s Thanksgiving-week absolution of Mohammed bin Salman for the murder of journalist Jamal Khashoggi by Saudi agents has undermined any claims to global moral leadership by the U.S. administration. But America’s reputational loss today may benefit the Gulf in 2019.
Though Trump gave MbS a pass on Khashoggi’s killing, the 33-year-old monarch surely realises how close a call he faced and may owe his eventual accession to the U.S. president alone. That gives Trump leverage to undo many of MbS’s recent blunders.
Start with forcing an end to the pointless four-nation blockade of Qatar, where the United States has a military base. Pressuring Saudi to lift this embargo would improve a regional economy hurt by lost Qatari business, ratchet down tensions in the Gulf that have concerned global investors and reunite families.
U.S. President Donald Trump’s Thanksgiving-week absolution of Mohammed bin Salman for the murder of journalist Jamal Khashoggi by Saudi agents has undermined any claims to global moral leadership by the U.S. administration. But America’s reputational loss today may benefit the Gulf in 2019.
Though Trump gave MbS a pass on Khashoggi’s killing, the 33-year-old monarch surely realises how close a call he faced and may owe his eventual accession to the U.S. president alone. That gives Trump leverage to undo many of MbS’s recent blunders.
Start with forcing an end to the pointless four-nation blockade of Qatar, where the United States has a military base. Pressuring Saudi to lift this embargo would improve a regional economy hurt by lost Qatari business, ratchet down tensions in the Gulf that have concerned global investors and reunite families.
Column: Oil market power ebbs from OPEC to the troika - Kemp | Reuters
Column: Oil market power ebbs from OPEC to the troika - Kemp | Reuters:
The Organization of the Petroleum Exporting Countries has been marginalized as critical decisions about the oil market are taken by a troika of the United States, Russia and Saudi Arabia.
The rise and subsequent fall in oil prices this year has been almost entirely driven by production decisions in these three countries and their policies towards managing the impact of renewed sanctions on Iran.
The troika accounted for 36 million barrels per day of crude and condensates production in 2017 (39 percent of the global total) compared with just 27 million bpd from the rest of OPEC (30 percent of the global total).
The Organization of the Petroleum Exporting Countries has been marginalized as critical decisions about the oil market are taken by a troika of the United States, Russia and Saudi Arabia.
The rise and subsequent fall in oil prices this year has been almost entirely driven by production decisions in these three countries and their policies towards managing the impact of renewed sanctions on Iran.
The troika accounted for 36 million barrels per day of crude and condensates production in 2017 (39 percent of the global total) compared with just 27 million bpd from the rest of OPEC (30 percent of the global total).
The wealthy Middle Eastern families who want their daughters to inherit more | Financial Times
The wealthy Middle Eastern families who want their daughters to inherit more | Financial Times:
When the founder of an immensely successful family business in Kuwait passed leaving no will or foundation to manage his wealth, his estate and business were distributed to his wife, three sons and daughter according to the inheritance principles set forth by Sharia law.
His daughter had worked with him, while his sons had not been involved. Despite the expertise that made her an obvious candidate to take over the business operations, the application of the distribution law meant that she received just one small share of the business, while her brothers collectively received the vast majority. Jealous of their sister’s relationship with their father, her brothers quickly voted her out of the business.
“They ran it into the ground,” says Mahmoud Selim, a lawyer with Pinsent Masons in Dubai and Islamic law scholar. “That’s a typical example. There were no protections for her.”
When the founder of an immensely successful family business in Kuwait passed leaving no will or foundation to manage his wealth, his estate and business were distributed to his wife, three sons and daughter according to the inheritance principles set forth by Sharia law.
His daughter had worked with him, while his sons had not been involved. Despite the expertise that made her an obvious candidate to take over the business operations, the application of the distribution law meant that she received just one small share of the business, while her brothers collectively received the vast majority. Jealous of their sister’s relationship with their father, her brothers quickly voted her out of the business.
“They ran it into the ground,” says Mahmoud Selim, a lawyer with Pinsent Masons in Dubai and Islamic law scholar. “That’s a typical example. There were no protections for her.”
MIDEAST STOCKS-Egypt falls for fifth day, banks boost Qatar | Reuters
MIDEAST STOCKS-Egypt falls for fifth day, banks boost Qatar | Reuters:
Egypt’s blue-chip stock index fell for a fifth straight day on Monday, while Saudi Arabia edged up as oil prices rebounded moderately after plunging nearly 8 percent at the end of last week.
The Egyptian index, which had plunged 3.8 percent on Sunday, fell a further 0.8 percent on Monday with the country’s biggest lender, Commercial International Bank (COMI) , losing 1.8 percent.
All eight traded banking stocks fell. Investors have been spooked partly by concern about authorities’ proposed changes to the way banks’ earnings from Egyptian Treasury bonds are calculated for tax purposes; a report released by Pharos Holding on Sunday said this would raise banks’ effective tax rates, shaving 17 percent off COMI’s bottom line last year.
Egypt’s blue-chip stock index fell for a fifth straight day on Monday, while Saudi Arabia edged up as oil prices rebounded moderately after plunging nearly 8 percent at the end of last week.
The Egyptian index, which had plunged 3.8 percent on Sunday, fell a further 0.8 percent on Monday with the country’s biggest lender, Commercial International Bank (COMI) , losing 1.8 percent.
All eight traded banking stocks fell. Investors have been spooked partly by concern about authorities’ proposed changes to the way banks’ earnings from Egyptian Treasury bonds are calculated for tax purposes; a report released by Pharos Holding on Sunday said this would raise banks’ effective tax rates, shaving 17 percent off COMI’s bottom line last year.
Oil Rises From One-Year Low Even as Concerns of Glut Persist - Bloomberg
Oil Rises From One-Year Low Even as Concerns of Glut Persist - Bloomberg:
Oil rose from its lowest settlement in more than a year in New York, though signs of record output from Saudi Arabia amid pressure from President Donald Trump continued to weigh on the market.
Futures added 1.5 percent, after slumping 7.7 percent on Friday. Saudi Arabia is pumping as much as 11.2 million barrels of crude a day, the most since the kingdom extracted its first oil eight decades ago, according to a person familiar with the matter. Trump has reiterated his view that falling oil prices are great after the U.S. benchmark plunged the most last week since January 2016.
The American crude marker teeters near the $50 threshold as the Saudi output surge combines with larger-than-expected exports of Iranian oil after Trump granted sanctions waivers to some nations. In the U.S., growing inventories have added to the pressure on prices. Traders are assessing whether the Organization of Petroleum Exporting Countries and its allies will decide to trim output when they meet early next month in Vienna.
Oil rose from its lowest settlement in more than a year in New York, though signs of record output from Saudi Arabia amid pressure from President Donald Trump continued to weigh on the market.
Futures added 1.5 percent, after slumping 7.7 percent on Friday. Saudi Arabia is pumping as much as 11.2 million barrels of crude a day, the most since the kingdom extracted its first oil eight decades ago, according to a person familiar with the matter. Trump has reiterated his view that falling oil prices are great after the U.S. benchmark plunged the most last week since January 2016.
The American crude marker teeters near the $50 threshold as the Saudi output surge combines with larger-than-expected exports of Iranian oil after Trump granted sanctions waivers to some nations. In the U.S., growing inventories have added to the pressure on prices. Traders are assessing whether the Organization of Petroleum Exporting Countries and its allies will decide to trim output when they meet early next month in Vienna.
Mideast Stocks: Saudi, other bourses gains marginally as oil edges up | ZAWYA MENA Edition
Mideast Stocks: Saudi, other bourses gains marginally as oil edges up | ZAWYA MENA Edition:
Saudi Arabia's stock market gained marginally early on Monday as oil prices rebounded moderately after plunging nearly 8 percent at the end of last week. Most other Gulf bourses were also firm.
The Saudi index was up 0.2 percent after an hour of trade; it had dropped 1.3 percent on Sunday. Top petrochemical producer Saudi Basic Industries was up 0.5 percent and National Commercial Bank added 0.4 percent.
Tabuk Cement initially rose 1.7 percent after signing a memorandum of understanding to export 6,000 tonnes of cement to Yemen, where Saudi authorities have announced infrastructure projects in areas they control. But the stock later pulled back to stand flat.
Saudi Arabia's stock market gained marginally early on Monday as oil prices rebounded moderately after plunging nearly 8 percent at the end of last week. Most other Gulf bourses were also firm.
The Saudi index was up 0.2 percent after an hour of trade; it had dropped 1.3 percent on Sunday. Top petrochemical producer Saudi Basic Industries was up 0.5 percent and National Commercial Bank added 0.4 percent.
Tabuk Cement initially rose 1.7 percent after signing a memorandum of understanding to export 6,000 tonnes of cement to Yemen, where Saudi authorities have announced infrastructure projects in areas they control. But the stock later pulled back to stand flat.
Qatar General Insurance to stop issuing new insurance policies in Dubai | Reuters
Qatar General Insurance to stop issuing new insurance policies in Dubai | Reuters:
Qatar General Insurance and Reinsurance Company said on Monday it would stop issuing any new insurance policies from its Dubai office and start winding down its business at the branch.
The company gave no detail as to whether the move was linked to a regional rift that started in June 2017 when Saudi Arabia, the United Arab Emirates, Egypt and Bahrain cut diplomatic and trade links with Qatar.
The firm, which said in December last year it had decided to exit the Dubai insurance market, said it would cease issuing new insurance policies as of Monday.
Qatar General Insurance and Reinsurance Company said on Monday it would stop issuing any new insurance policies from its Dubai office and start winding down its business at the branch.
The company gave no detail as to whether the move was linked to a regional rift that started in June 2017 when Saudi Arabia, the United Arab Emirates, Egypt and Bahrain cut diplomatic and trade links with Qatar.
The firm, which said in December last year it had decided to exit the Dubai insurance market, said it would cease issuing new insurance policies as of Monday.
Aramco eyes bigger market share in Asia ahead of possible OPEC cut - CEO | Reuters
Aramco eyes bigger market share in Asia ahead of possible OPEC cut - CEO | Reuters:
Saudi Aramco will expand its market share in Asia despite likely OPEC limits on output next year, and is eyeing deals in China and Africa as it aims to become a global leader in chemicals, the head of the world’s top oil producer said on Monday.
Amin Nasser, chief executive of the state oil giant, told Reuters that his company would abide by any OPEC agreement to cut crude production in 2019, less than two weeks before the exporter group meets to decide output policy.
But he added that he still sees growth opportunities in Asia - identifying China, India, Malaysia and Indonesia - and will push ahead with refining ventures to guarantee new outlets for Aramco’s crude.
Saudi Aramco will expand its market share in Asia despite likely OPEC limits on output next year, and is eyeing deals in China and Africa as it aims to become a global leader in chemicals, the head of the world’s top oil producer said on Monday.
Amin Nasser, chief executive of the state oil giant, told Reuters that his company would abide by any OPEC agreement to cut crude production in 2019, less than two weeks before the exporter group meets to decide output policy.
But he added that he still sees growth opportunities in Asia - identifying China, India, Malaysia and Indonesia - and will push ahead with refining ventures to guarantee new outlets for Aramco’s crude.
General Atlantic leads $120 mln investment in Dubai's Property Finder | Reuters
General Atlantic leads $120 mln investment in Dubai's Property Finder | Reuters:
Private equity firm General Atlantic has led a $120 million investment and acquired a minority stake in Middle East real estate classifieds website Property Finder.
Property Finder’s chief executive told Reuters the money would be invested in product and technology.
“We want to continue building the best product and data information available to the public,” Michael Lahyani said at the company’s headquarters in Dubai.
Private equity firm General Atlantic has led a $120 million investment and acquired a minority stake in Middle East real estate classifieds website Property Finder.
Property Finder’s chief executive told Reuters the money would be invested in product and technology.
“We want to continue building the best product and data information available to the public,” Michael Lahyani said at the company’s headquarters in Dubai.
Saudi Arabia oil pumping at record high as Trump raises pressure | Reuters
Saudi Arabia oil pumping at record high as Trump raises pressure | Reuters:
Saudi Arabia raised oil production to an all-time high in November, an industry source said on Monday, as U.S. President Donald Trump piled pressure on the kingdom to refrain from production cuts at an OPEC meeting next week.
The industry source, who is familiar with the matter, said Saudi crude oil production hit 11.1-11.3 million barrels per day (bpd) in November, although it will not be clear what the exact average November output is until the month is over.
Those levels are up around 0.5 million bpd - equal to 0.5 percent of global demand - from October and more than 1 million bpd higher than in early 2018, when Riyadh was curtailing production together with other OPEC members.
Saudi Arabia raised oil production to an all-time high in November, an industry source said on Monday, as U.S. President Donald Trump piled pressure on the kingdom to refrain from production cuts at an OPEC meeting next week.
The industry source, who is familiar with the matter, said Saudi crude oil production hit 11.1-11.3 million barrels per day (bpd) in November, although it will not be clear what the exact average November output is until the month is over.
Those levels are up around 0.5 million bpd - equal to 0.5 percent of global demand - from October and more than 1 million bpd higher than in early 2018, when Riyadh was curtailing production together with other OPEC members.
Leaders of Qatar and Turkey meet for strategic dialogue as partnership strengthens | Foreign Brief
Leaders of Qatar and Turkey meet for strategic dialogue as partnership strengthens | Foreign Brief:
Qatari Emir Sheikh Tamim bin Hamad Al-Thani and Turkish President Recep Tayyip Erdogan will meet in Istanbul today for the fourth Turkey-Qatar Supreme Strategic Committee meeting.
The two leaders will likely discuss, among other things, a more unified response to the murder of Saudi journalist Jamal Khashoggi. Erdogan has demanded accountability from Riyadh, which continues to deny that Crown Prince Mohammed bin Salman had any involvement in the killing.
Last week, Doha called for similar accountability from the Saudi regime, an indication that it has few intentions of precipitating a thaw in tensions between itself and the other gulf monarchies and will continue strengthening relations with Turkey and Iran.
Qatari Emir Sheikh Tamim bin Hamad Al-Thani and Turkish President Recep Tayyip Erdogan will meet in Istanbul today for the fourth Turkey-Qatar Supreme Strategic Committee meeting.
The two leaders will likely discuss, among other things, a more unified response to the murder of Saudi journalist Jamal Khashoggi. Erdogan has demanded accountability from Riyadh, which continues to deny that Crown Prince Mohammed bin Salman had any involvement in the killing.
Last week, Doha called for similar accountability from the Saudi regime, an indication that it has few intentions of precipitating a thaw in tensions between itself and the other gulf monarchies and will continue strengthening relations with Turkey and Iran.
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