Dubai's Slide Goes Deeper as Stocks Drop to Lowest Since 2013 - Bloomberg: Shares listed in the biggest city of the United Arab Emirates tumbled 2 percent Thursday to the lowest in more than five years as a slump in real estate stocks showed no signs of abating.
Dubai’s DFM General Index has fallen 23 percent this year, making the gauge the worst performer globally, with Emaar Properties PJSC, Damac Properties PJSC and Union Properties PJSC losing at least 40 percent of their market value.
With hopes for a short-term recovery faltering, Dubai shares trade cheaper when compared to peers in other emerging markets. Emaar Properties, the developer of the world’s tallest tower and which fell 4.3 percent on Thursday, is trading at 4.5 times estimated earnings for the next 12 months, the lowest since 2010.
Thursday, 6 December 2018
US Is Net Oil Exporter For First Time in 75 Years - Bloomberg
US Is Net Oil Exporter For First Time in 75 Years - Bloomberg:
America turned into a net oil exporter last week, breaking 75 years of continued dependence on foreign oil and marking a pivotal -- even if likely brief -- moment toward what U.S. President Donald Trump has branded as "energy independence."
The shift to net exports is the dramatic result of an unprecedented boom in American oil production, with thousands of wells pumping from the Permian region of Texas and New Mexico to the Bakken in North Dakota to the Marcellus in Pennsylvania.
While the country has been heading in that direction for years, this week’s dramatic shift came as data showed a sharp drop in imports and a jump in exports to a record high. Given the volatility in weekly data, the U.S. will likely remain a small net importer most of the time.
America turned into a net oil exporter last week, breaking 75 years of continued dependence on foreign oil and marking a pivotal -- even if likely brief -- moment toward what U.S. President Donald Trump has branded as "energy independence."
The shift to net exports is the dramatic result of an unprecedented boom in American oil production, with thousands of wells pumping from the Permian region of Texas and New Mexico to the Bakken in North Dakota to the Marcellus in Pennsylvania.
While the country has been heading in that direction for years, this week’s dramatic shift came as data showed a sharp drop in imports and a jump in exports to a record high. Given the volatility in weekly data, the U.S. will likely remain a small net importer most of the time.
OPEC Talks End Without Oil-Cuts Deal as Russia Holds Back - Bloomberg
OPEC Talks End Without Oil-Cuts Deal as Russia Holds Back - Bloomberg:
OPEC ended talks without a deal on oil production cuts for the first time in nearly five years as Russia flexed its muscles by so far refusing to commit to the big output curb that Saudi Arabia is demanding.
After two days of talks in Vienna, Saudi Energy Minister Khalid Al-Falih said he isn’t confident of an agreement when the Organization of Petroleum Exporting Countries meets again with its allies on Friday. A proposal for a combined OPEC and non-OPEC cut of 1 million barrels a day was left dangling in uncertainty.
“Not everybody is ready to cut equally,” Al-Falih told reporters in Vienna. “Russia is not ready for a substantial cut.”
OPEC ended talks without a deal on oil production cuts for the first time in nearly five years as Russia flexed its muscles by so far refusing to commit to the big output curb that Saudi Arabia is demanding.
After two days of talks in Vienna, Saudi Energy Minister Khalid Al-Falih said he isn’t confident of an agreement when the Organization of Petroleum Exporting Countries meets again with its allies on Friday. A proposal for a combined OPEC and non-OPEC cut of 1 million barrels a day was left dangling in uncertainty.
“Not everybody is ready to cut equally,” Al-Falih told reporters in Vienna. “Russia is not ready for a substantial cut.”
Abu Dhabi meets bond investors in non-deal roadshow, sources say | Reuters
Abu Dhabi meets bond investors in non-deal roadshow, sources say | Reuters:
Abu Dhabi held meetings with international bond investors in a so-called non-deal roadshow before a potential bond issue next year, sources familiar with the matter said, as a recent drop in oil prices might prompt Gulf countries to borrow soon.
Governments in the Gulf Cooperation Council region have raised billions of dollars in the international debt markets over the past few years to offset budget deficits caused by lower oil prices.
Representatives of the Abu Dhabi government met investors in Frankfurt, London, Boston and New York about a week ago, said one of the sources. A non-deal roadshow is a series of investor meetings not tied to a specific transaction.
Abu Dhabi held meetings with international bond investors in a so-called non-deal roadshow before a potential bond issue next year, sources familiar with the matter said, as a recent drop in oil prices might prompt Gulf countries to borrow soon.
Governments in the Gulf Cooperation Council region have raised billions of dollars in the international debt markets over the past few years to offset budget deficits caused by lower oil prices.
Representatives of the Abu Dhabi government met investors in Frankfurt, London, Boston and New York about a week ago, said one of the sources. A non-deal roadshow is a series of investor meetings not tied to a specific transaction.
#Kuwait to be added to S&P DJI Global Benchmark Indices with EM classification | Reuters
Kuwait to be added to S&P DJI Global Benchmark Indices with EM classification | Reuters:
Kuwait’s stock market will be added to S&P Dow Jones Indices’ Global Benchmark Indices with an emerging market classification, Kuwait’s market regulator said on Thursday, citing the index provider.
It is the latest piece of good news for Kuwait, one of the standout performers in Gulf markets this year, and comes ahead of MSCI’s decision next year on whether to reclassify its Kuwait index from the current frontier-market status to its widely used emerging-market benchmark.
In a statement, cited by the Capital Markets Authority, S&P DJI said it recognised the progress Kuwait had made in trade clearing and settlement, including changing to a T+3 settlement cycle, meaning trades are settled within three days of execution, and establishing a delivery versus payment system.
Kuwait’s stock market will be added to S&P Dow Jones Indices’ Global Benchmark Indices with an emerging market classification, Kuwait’s market regulator said on Thursday, citing the index provider.
It is the latest piece of good news for Kuwait, one of the standout performers in Gulf markets this year, and comes ahead of MSCI’s decision next year on whether to reclassify its Kuwait index from the current frontier-market status to its widely used emerging-market benchmark.
In a statement, cited by the Capital Markets Authority, S&P DJI said it recognised the progress Kuwait had made in trade clearing and settlement, including changing to a T+3 settlement cycle, meaning trades are settled within three days of execution, and establishing a delivery versus payment system.
Saudi's Saad Group and creditors select advisers in bid to resolve debt dispute | Reuters
Saudi's Saad Group and creditors select advisers in bid to resolve debt dispute | Reuters:
Saad Group and bank creditors of the Saudi Arabian conglomerate have both selected advisers in a bid to try to reach a deal that could help end the kingdom’s largest and longest-running debt dispute, financial sources said on Thursday.
The appointments of London-based Orchard Corporate Strategy by Saad and EY by creditors, is the latest attempt to reach an agreement that will be complicated by an ongoing auction of the company’s assets.
One of the sources said creditors were seeking to engage with the court overseeing an auction process to try to avoid a fire sale of assets and disorderly liquidation of the company in order to secure a better deal for creditors.
Saad Group and bank creditors of the Saudi Arabian conglomerate have both selected advisers in a bid to try to reach a deal that could help end the kingdom’s largest and longest-running debt dispute, financial sources said on Thursday.
The appointments of London-based Orchard Corporate Strategy by Saad and EY by creditors, is the latest attempt to reach an agreement that will be complicated by an ongoing auction of the company’s assets.
One of the sources said creditors were seeking to engage with the court overseeing an auction process to try to avoid a fire sale of assets and disorderly liquidation of the company in order to secure a better deal for creditors.
OPEC tentatively agrees to oil cut, waits for Russia to commit | Reuters
OPEC tentatively agrees to oil cut, waits for Russia to commit | Reuters:
OPEC tentatively agreed to an oil output cut on Thursday but was waiting for a commitment from non-OPEC heavyweight Russia before deciding the exact volumes for a production reduction aimed at propping up crude prices, two sources from the group said.
Russian Energy Minister Alexander Novak flew home from Vienna earlier for talks with President Vladimir Putin in St Petersburg. Novak returns to Austria’s capital for discussions among Saudi-led OPEC and the group’s allies on Friday.
The price of crude has fallen almost a third since October but U.S. President Donald Trump has demanded the Organization of the Petroleum Exporting Countries make oil even cheaper by refraining from output cuts.
OPEC tentatively agreed to an oil output cut on Thursday but was waiting for a commitment from non-OPEC heavyweight Russia before deciding the exact volumes for a production reduction aimed at propping up crude prices, two sources from the group said.
Russian Energy Minister Alexander Novak flew home from Vienna earlier for talks with President Vladimir Putin in St Petersburg. Novak returns to Austria’s capital for discussions among Saudi-led OPEC and the group’s allies on Friday.
The price of crude has fallen almost a third since October but U.S. President Donald Trump has demanded the Organization of the Petroleum Exporting Countries make oil even cheaper by refraining from output cuts.
MIDEAST STOCKS- #Dubai plummets to multi-year lows, oil trips up Saudi | Reuters
MIDEAST STOCKS-Dubai plummets to multi-year lows, oil trips up Saudi | Reuters:
Dubai’s stock market plunged to its lowest level in more than five years on Thursday as real estate stocks continued to slide while weak oil prices pressured the Saudi market.
Oil lost nearly 5 percent after producer group OPEC signalled that it may agree to a smaller output cut than expected and as concern over the economic impact of trade tensions hit global stocks.
The Dubai index slumped 2 percent to its lowest since September 2013, with its largest listed-developer, Emaar Properties, dropping 4.3 percent. The stock has lost a third of its value this year.
Dubai’s stock market plunged to its lowest level in more than five years on Thursday as real estate stocks continued to slide while weak oil prices pressured the Saudi market.
Oil lost nearly 5 percent after producer group OPEC signalled that it may agree to a smaller output cut than expected and as concern over the economic impact of trade tensions hit global stocks.
The Dubai index slumped 2 percent to its lowest since September 2013, with its largest listed-developer, Emaar Properties, dropping 4.3 percent. The stock has lost a third of its value this year.
Brent oil price sinks under 60 on Saudi comments
Brent oil price sinks under 60 on Saudi comments:
Brent oil prices sank under $60 on Thursday after Saudi Arabia made remarks that were deemed overly cautious by analysts ahead of OPEC's latest output decision.
London's Brent North Sea oil sank $2.94 to $58.62 per barrel at 1035 GMT, compared with Wednesday's close, after Saudi Arabia's oil minister Khalid al-Falih said OPEC was seeking a "sufficient" cut in output to prop up prices. (AFP) AMS
AMS
Brent oil prices sank under $60 on Thursday after Saudi Arabia made remarks that were deemed overly cautious by analysts ahead of OPEC's latest output decision.
London's Brent North Sea oil sank $2.94 to $58.62 per barrel at 1035 GMT, compared with Wednesday's close, after Saudi Arabia's oil minister Khalid al-Falih said OPEC was seeking a "sufficient" cut in output to prop up prices. (AFP) AMS
AMS
#Dubai's Biggest Developer Can't Shake Off Real Estate Woes - Bloomberg
Dubai's Biggest Developer Can't Shake Off Real Estate Woes - Bloomberg:
Emaar Properties PJSC may have the backing of analysts but investors aren’t buying it, deterred by the gloomy prospects for Dubai’s real estate market.
Shares of the developer of the iconic Burj Khalifa skyscraper have lost 39 percent this year, bringing its estimated price-to-earnings ratio for the next 12 months to the lowest level since late 2009. The valuation has prompted six analysts to update their view with either a buy or overweight recommendation. So far to no avail.
A recovery of the local real-estate market doesn’t appear to be happening any time soon with rival developers predicting a difficult year ahead. Demand is faltering as the oversupply has become more evident mostly in the residential market.
Emaar Properties PJSC may have the backing of analysts but investors aren’t buying it, deterred by the gloomy prospects for Dubai’s real estate market.
Shares of the developer of the iconic Burj Khalifa skyscraper have lost 39 percent this year, bringing its estimated price-to-earnings ratio for the next 12 months to the lowest level since late 2009. The valuation has prompted six analysts to update their view with either a buy or overweight recommendation. So far to no avail.
A recovery of the local real-estate market doesn’t appear to be happening any time soon with rival developers predicting a difficult year ahead. Demand is faltering as the oversupply has become more evident mostly in the residential market.
As OPEC Meets, New Energy ETFs Spy Opportunity in Oil's Decline - Bloomberg
As OPEC Meets, New Energy ETFs Spy Opportunity in Oil's Decline - Bloomberg:
Cushing Asset Management has a lot riding on the meeting of OPEC in Vienna Thursday -- specifically, the success of its first exchange-traded funds.
On the heels of the worst month for crude since 2008, the Dallas-based investment firm, which manages about $3.3 billion in energy-related portfolios, is listing four sector ETFs connected to petroleum. The funds -- which focus on energy, utilities, transportation and the energy supply chain -- will look to deliver extra yield by investing some of their assets in companies set up as master limited partnerships.
It’s either terrible timing, or a stroke of genius. With oil having lost 22 percent in November and now trading at around $54 a barrel, OPEC could put a floor under the price by cutting its production. But with President Donald Trump pushing for lower prices, there’s a chance that exporters could let the price hold at this level, or slide even further.
Cushing Asset Management has a lot riding on the meeting of OPEC in Vienna Thursday -- specifically, the success of its first exchange-traded funds.
On the heels of the worst month for crude since 2008, the Dallas-based investment firm, which manages about $3.3 billion in energy-related portfolios, is listing four sector ETFs connected to petroleum. The funds -- which focus on energy, utilities, transportation and the energy supply chain -- will look to deliver extra yield by investing some of their assets in companies set up as master limited partnerships.
It’s either terrible timing, or a stroke of genius. With oil having lost 22 percent in November and now trading at around $54 a barrel, OPEC could put a floor under the price by cutting its production. But with President Donald Trump pushing for lower prices, there’s a chance that exporters could let the price hold at this level, or slide even further.
Piggy Banks and Punishment: How the Ruble's Oil Link Came Apart - Bloomberg
Piggy Banks and Punishment: How the Ruble's Oil Link Came Apart - Bloomberg:
The last time crude fell off a cliff in late 2015, it took the currency of the world’s biggest energy exporter along for the ride. As Brent lurched below $30 a barrel, Russia’s ruble plummeted to its weakest level on record.
Last month, with oil charting its steepest drop in a decade, a comparable move in the ruble was nowhere to be seen.
A multitude of factors -- from central bank measures to sanctions -- have contributed to the shift. Below is a summary of the biggest contributors and how they have eroded the link.
The last time crude fell off a cliff in late 2015, it took the currency of the world’s biggest energy exporter along for the ride. As Brent lurched below $30 a barrel, Russia’s ruble plummeted to its weakest level on record.
Last month, with oil charting its steepest drop in a decade, a comparable move in the ruble was nowhere to be seen.
A multitude of factors -- from central bank measures to sanctions -- have contributed to the shift. Below is a summary of the biggest contributors and how they have eroded the link.
London's MENA Capital and Dubai's Al Mal agree collaboration deal | ZAWYA MENA Edition
London's MENA Capital and Dubai's Al Mal agree collaboration deal | ZAWYA MENA Edition:
A tie-up between a London-based investment manager and Dubai's Al Mal Capital will see the former's managing partner, Khaled Abdel Majeed, move to Dubai and manage an enlarged team responsible for the investment strategy of a series of funds owned by both organisations.
MENA Capital said in a press release issued on Monday that Al Mal Capital had appointed Abdel Majeed as its lead portfolio manager for all of its MENA equities products including the Al Mal UAE Equity Fund launched in April 2006 and a new AZ Al Mal MENA Equities UCITS Fund, due to be launched early next year alongside Italian asset management firm Azimut.
In a telephone interview with Zawya on Wednesday, MENA Capital managing partner Roger Allen explained that Abdel Majeed, with whom he co-founded MENA Capital in 2004, would be directly employed by Al Mal Capital, but would also continue to run MENA Capital's own MENA Admiral hedge fund - a long-short fund launched in March 2006 - and the long-only MENA Alchemy Fund launched in August 2010.
A tie-up between a London-based investment manager and Dubai's Al Mal Capital will see the former's managing partner, Khaled Abdel Majeed, move to Dubai and manage an enlarged team responsible for the investment strategy of a series of funds owned by both organisations.
MENA Capital said in a press release issued on Monday that Al Mal Capital had appointed Abdel Majeed as its lead portfolio manager for all of its MENA equities products including the Al Mal UAE Equity Fund launched in April 2006 and a new AZ Al Mal MENA Equities UCITS Fund, due to be launched early next year alongside Italian asset management firm Azimut.
In a telephone interview with Zawya on Wednesday, MENA Capital managing partner Roger Allen explained that Abdel Majeed, with whom he co-founded MENA Capital in 2004, would be directly employed by Al Mal Capital, but would also continue to run MENA Capital's own MENA Admiral hedge fund - a long-short fund launched in March 2006 - and the long-only MENA Alchemy Fund launched in August 2010.
Mideast Stocks: #Dubai suffers real estate slide, other markets steady | ZAWYA MENA Edition
Mideast Stocks: Dubai suffers real estate slide, other markets steady | ZAWYA MENA Edition:
Dubai's stock market fell sharply on Thursday, as real estate stocks fell further following a property price slide, while most major Middle Eastern markets remained steady.
Trading in other markets was tepid in the countdown to an OPEC-meeting expected to result in a supply cut, but the Dubai index slipped 1.3 percent, after falling to its lowest in nearly three years in the previous trading session.
Property developer Emaar Properties was down 3.2 percent, while Deyaar Properties lost 2.6 percent.
Dubai's stock market fell sharply on Thursday, as real estate stocks fell further following a property price slide, while most major Middle Eastern markets remained steady.
Trading in other markets was tepid in the countdown to an OPEC-meeting expected to result in a supply cut, but the Dubai index slipped 1.3 percent, after falling to its lowest in nearly three years in the previous trading session.
Property developer Emaar Properties was down 3.2 percent, while Deyaar Properties lost 2.6 percent.
UAE says Gulf Arab bloc still strong despite Qatar row | Reuters
UAE says Gulf Arab bloc still strong despite Qatar row | Reuters:
The United Arab Emirates said on Thursday the Gulf Cooperation Council remained valid despite a bitter row with Qatar that has fractured the bloc ahead of an annual summit next week.
Saudi Arabia, the UAE, Bahrain and non-GCC member Egypt have imposed a diplomatic and economic boycott on Qatar since June 2017 over allegations Doha supports terrorism. Qatar denies the charges and says the boycott aims to curtail its sovereignty.
“The main success of the council is in its economic aspects and the creation of a Gulf common market,” UAE Minister of State for Foreign Affairs Anwar Gargash tweeted.
The United Arab Emirates said on Thursday the Gulf Cooperation Council remained valid despite a bitter row with Qatar that has fractured the bloc ahead of an annual summit next week.
Saudi Arabia, the UAE, Bahrain and non-GCC member Egypt have imposed a diplomatic and economic boycott on Qatar since June 2017 over allegations Doha supports terrorism. Qatar denies the charges and says the boycott aims to curtail its sovereignty.
“The main success of the council is in its economic aspects and the creation of a Gulf common market,” UAE Minister of State for Foreign Affairs Anwar Gargash tweeted.
OPEC waiting for Russia before deciding how much oil to cut | Reuters
OPEC waiting for Russia before deciding how much oil to cut | Reuters:
OPEC has made a planned cut in oil output effectively conditional on the contribution from non-OPEC producer Russia, delegates said on Thursday as the group gathered in Vienna for a meeting aimed at supporting battered oil prices.
Five delegates said the group was waiting for news from Russia as Energy Minister Alexander Novak had flown back from Vienna for a possible meeting with President Vladimir Putin.
Novak returns to Vienna on Friday for talks between OPEC and its allies, following discussions among OPEC producers on Thursday.
OPEC has made a planned cut in oil output effectively conditional on the contribution from non-OPEC producer Russia, delegates said on Thursday as the group gathered in Vienna for a meeting aimed at supporting battered oil prices.
Five delegates said the group was waiting for news from Russia as Energy Minister Alexander Novak had flown back from Vienna for a possible meeting with President Vladimir Putin.
Novak returns to Vienna on Friday for talks between OPEC and its allies, following discussions among OPEC producers on Thursday.
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