Crude Posts Worst May in Seven Years as Trade-War Anxiety Builds - Bloomberg:
Oil posted its worst May performance in seven years as global trade tensions escalated, undermining the outlook for energy demand growth.
Futures tumbled 5.5% in New York on Friday to a depth not seen in more than three months. Equities also plunged as investors deserted risky asset classes for the safety of gold and U.S. Treasuries. President Donald Trump’s threat to punish Mexico with tariffs because of illegal immigration darkened already-parlous global trade prospects.
Oil surged more than 40% to start the year on the strength of OPEC output cuts and crises in Venezuela, Iran and other suppliers. But since peaking in late April, prices have fallen off more than 19% as the U.S.-China trade dispute intensified. A jump in U.S. gasoline stockpiles disclosed in a government report this week added to angst about slackening demand.
Friday 31 May 2019
Oil falls over 3% on fresh trade worries, posts biggest monthly drop in six months - Reuters
Oil falls over 3% on fresh trade worries, posts biggest monthly drop in six months - Reuters:
Oil slumped over 3% on Friday and posted its biggest monthly drop in six months, after U.S. President Donald Trump stoked global trade tensions by threatening tariffs on Mexico, a key U.S. trade partner and major supplier of crude oil.
Brent crude futures fell $2.38, or 3.6%, to settle at $64.49 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell $3.09 to $53.50 a barrel, a 5.5% loss.
Brent touched a session low of $64.37 a barrel, lowest since March 8. WTI hit $53.41 a barrel, weakest since Feb. 14.
Brent futures posted an 11% slide in May and WTI a 16% drop, their biggest monthly losses since November.
Oil slumped over 3% on Friday and posted its biggest monthly drop in six months, after U.S. President Donald Trump stoked global trade tensions by threatening tariffs on Mexico, a key U.S. trade partner and major supplier of crude oil.
Brent crude futures fell $2.38, or 3.6%, to settle at $64.49 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell $3.09 to $53.50 a barrel, a 5.5% loss.
Brent touched a session low of $64.37 a barrel, lowest since March 8. WTI hit $53.41 a barrel, weakest since Feb. 14.
Brent futures posted an 11% slide in May and WTI a 16% drop, their biggest monthly losses since November.
Big Oil's Message to Permian Strugglers: We Won't Bail You Out - Bloomberg
Big Oil's Message to Permian Strugglers: We Won't Bail You Out - Bloomberg:
Big Oil probably won’t be buying up the Permian Basin’s struggling independent drillers any time soon.
Years of costly exploration and frantic buying sprees have gutted shareholder returns in the world’s largest shale basin. And management teams and their financial backers can’t count on shale-hungry, cash-rich supermajors to buy them out.
Exxon Mobil Corp., Royal Dutch Shell Plc, Chevron Corp. and ConocoPhillips are all on record saying they are wary of scooping up smaller rivals at a time when would-be sellers are demanding premium payouts and global crude prices are under pressure from ample supplies.
Big Oil probably won’t be buying up the Permian Basin’s struggling independent drillers any time soon.
Years of costly exploration and frantic buying sprees have gutted shareholder returns in the world’s largest shale basin. And management teams and their financial backers can’t count on shale-hungry, cash-rich supermajors to buy them out.
Exxon Mobil Corp., Royal Dutch Shell Plc, Chevron Corp. and ConocoPhillips are all on record saying they are wary of scooping up smaller rivals at a time when would-be sellers are demanding premium payouts and global crude prices are under pressure from ample supplies.
Oil drops 1%, set for biggest monthly fall since November as trade wars spreads - Reuters
Oil drops 1%, set for biggest monthly fall since November as trade wars spreads - Reuters:
Oil prices fell by more than 1% on Friday and were on track for their biggest monthly fall since November as trade conflicts spread and U.S. crude output returned to record levels.
Front-month Brent crude futures, the international benchmark for oil prices, were at $65.97 at 0639 GMT, down by 90 cents, or 1.4%, from last session’s close.
U.S. West Texas Intermediate (WTI) crude futures were at $55.92 per barrel, down 67 cents, or 1.2%, from their last settlement. WTI earlier marked its lowest since March 8 at $55.66 a barrel.
Oil prices fell by more than 1% on Friday and were on track for their biggest monthly fall since November as trade conflicts spread and U.S. crude output returned to record levels.
Front-month Brent crude futures, the international benchmark for oil prices, were at $65.97 at 0639 GMT, down by 90 cents, or 1.4%, from last session’s close.
U.S. West Texas Intermediate (WTI) crude futures were at $55.92 per barrel, down 67 cents, or 1.2%, from their last settlement. WTI earlier marked its lowest since March 8 at $55.66 a barrel.
Thursday 30 May 2019
Oil falls to two-mth lows on small U.S. crude stock draw, trade war worries - Reuters
Oil falls to two-mth lows on small U.S. crude stock draw, trade war worries - Reuters:
Oil prices fell almost 4% to their lowest in over two months on a smaller-than-expected decline in U.S. crude inventories and fears of a global economic slowdown due to the U.S.-China trade war.
The Energy Information Administration (EIA) said U.S. crude stockpiles fell nearly 300,000 barrels last week, less than the 900,000-barrel decline analysts forecast in a Reuters poll and well below the 5.3 million-barrel drawdown the American Petroleum Institute (API) reported late Wednesday.
The decline last week reduced crude stocks from their highest since July 2017 seen the previous week, but at 476.5 million barrels, they were still about 5% above the five-year average for this time of year.
“The oil inventories report has added to the bearish sentiment prevailing in today’s trading session,” said Abhishek Kumar, head of analytics at Interfax Energy in London, noting “Demand-side concerns emerging from the ongoing U.S.-China trade war are expected to remain the key driver weighing on oil prices.”
Brent futures fell $2.58, or 3.7%, to settle at $66.87 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped $2.22, or 3.8%, to close at $56.59.
Oil prices fell almost 4% to their lowest in over two months on a smaller-than-expected decline in U.S. crude inventories and fears of a global economic slowdown due to the U.S.-China trade war.
The Energy Information Administration (EIA) said U.S. crude stockpiles fell nearly 300,000 barrels last week, less than the 900,000-barrel decline analysts forecast in a Reuters poll and well below the 5.3 million-barrel drawdown the American Petroleum Institute (API) reported late Wednesday.
The decline last week reduced crude stocks from their highest since July 2017 seen the previous week, but at 476.5 million barrels, they were still about 5% above the five-year average for this time of year.
“The oil inventories report has added to the bearish sentiment prevailing in today’s trading session,” said Abhishek Kumar, head of analytics at Interfax Energy in London, noting “Demand-side concerns emerging from the ongoing U.S.-China trade war are expected to remain the key driver weighing on oil prices.”
Brent futures fell $2.58, or 3.7%, to settle at $66.87 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped $2.22, or 3.8%, to close at $56.59.
#Dubai-based GEMS buys largest #Saudi private school operator | Financial Times
Dubai-based GEMS buys largest Saudi private school operator | Financial Times:
Dubai-based GEMS Education and a Saudi Arabian state-run pension fund have acquired the kingdom’s largest private school operator, expanding into the country as the Gulf monarchy seeks to deepen economic reform.
GEMS, one of the world’s largest private education providers, did not reveal financial details, but a person briefed on the deal valued the investment between $500m-$600m.
The purchase of Ma’arif Education Group, which has more than 22,000 students enrolled in national and international schools, cements GEMS’ partnership with Hassana Investment Company, the investment arm of the state-run pension fund the General Organisation for Social Insurance.
Dubai-based GEMS Education and a Saudi Arabian state-run pension fund have acquired the kingdom’s largest private school operator, expanding into the country as the Gulf monarchy seeks to deepen economic reform.
GEMS, one of the world’s largest private education providers, did not reveal financial details, but a person briefed on the deal valued the investment between $500m-$600m.
The purchase of Ma’arif Education Group, which has more than 22,000 students enrolled in national and international schools, cements GEMS’ partnership with Hassana Investment Company, the investment arm of the state-run pension fund the General Organisation for Social Insurance.
Gazprom boosts first-quarter profit 44% despite lower gas sales | Financial Times
Gazprom boosts first-quarter profit 44% despite lower gas sales | Financial Times:
Russia’s state-owned gas giant Gazprom increased its first-quarter net profit by 44 per cent over the previous year as higher gas prices offset lower gas export volumes.
The company on Thursday reported net profit attributable to its shareholders of Rbs535.9bn ($8.2bn) for the January-March period. Net sales to Europe and other countries increased 10 per cent on the previous year to Rbs837.4bn, it said.
“This is due to average price growth (including excise and export duty) in rouble terms, which was partly compensated by a decline in the volume of sold gas by 13 per cent, or 9.1bn cubic meters,” Gazprom said. “At the same time, average prices rose 12 per cent in US dollar terms.”
Russia’s state-owned gas giant Gazprom increased its first-quarter net profit by 44 per cent over the previous year as higher gas prices offset lower gas export volumes.
The company on Thursday reported net profit attributable to its shareholders of Rbs535.9bn ($8.2bn) for the January-March period. Net sales to Europe and other countries increased 10 per cent on the previous year to Rbs837.4bn, it said.
“This is due to average price growth (including excise and export duty) in rouble terms, which was partly compensated by a decline in the volume of sold gas by 13 per cent, or 9.1bn cubic meters,” Gazprom said. “At the same time, average prices rose 12 per cent in US dollar terms.”
Oil futures fall on small U.S. crude stock decline, trade war worries - Reuters
Oil futures fall on small U.S. crude stock decline, trade war worries - Reuters:
Oil prices extended their losses following the release of a U.S. report showing a smaller-than-expected decline in crude inventories.
The U.S. Energy Information Administration (EIA) said crude stockpiles fell by 0.3 million barrels during the week ended May 24.
That was lower than the 0.9-million-barrel decline analysts forecast in a Reuters poll and compares with data from the American Petroleum Institute (API) on Wednesday showing crude inventories fell by 5.3 million barrels last week.
Brent LCOc1 futures were down $1.87, or 2.7%, at $67.58 a barrel by 11:33 a.m. EDT (1533 GMT), while U.S. West Texas Intermediate (WTI) crude CLc1 was down 97 cents, or 1.7%, at $57.84.
Oil prices extended their losses following the release of a U.S. report showing a smaller-than-expected decline in crude inventories.
The U.S. Energy Information Administration (EIA) said crude stockpiles fell by 0.3 million barrels during the week ended May 24.
That was lower than the 0.9-million-barrel decline analysts forecast in a Reuters poll and compares with data from the American Petroleum Institute (API) on Wednesday showing crude inventories fell by 5.3 million barrels last week.
Brent LCOc1 futures were down $1.87, or 2.7%, at $67.58 a barrel by 11:33 a.m. EDT (1533 GMT), while U.S. West Texas Intermediate (WTI) crude CLc1 was down 97 cents, or 1.7%, at $57.84.
#SaudiArabia seeks Arab unity over #Iran after attacks - Reuters
Saudi Arabia seeks Arab unity over Iran after attacks - Reuters:
Saudi Arabia prepared to hold emergency Arab summits on Thursday to deliver a strong message to Iran over regional security after attacks on Gulf oil assets this month as American officials said a U.S. military deployment had deterred Tehran.
Saudi Arabia and the United Arab Emirates, which have lobbied Washington to contain foe Shi’ite Muslim Iran, have said they want to avoid war after drone strikes on oil pumping stations in the kingdom and the sabotage of tankers off the UAE.
Riyadh accused Tehran of ordering the drone strikes, which were claimed by Yemen’s Iran-aligned Houthi group. U.S. national security adviser John Bolton said on Thursday that evidence of Iran being behind the tanker attacks would be presented to the United Nations Security Council as early as next week.
Saudi Arabia prepared to hold emergency Arab summits on Thursday to deliver a strong message to Iran over regional security after attacks on Gulf oil assets this month as American officials said a U.S. military deployment had deterred Tehran.
Saudi Arabia and the United Arab Emirates, which have lobbied Washington to contain foe Shi’ite Muslim Iran, have said they want to avoid war after drone strikes on oil pumping stations in the kingdom and the sabotage of tankers off the UAE.
Riyadh accused Tehran of ordering the drone strikes, which were claimed by Yemen’s Iran-aligned Houthi group. U.S. national security adviser John Bolton said on Thursday that evidence of Iran being behind the tanker attacks would be presented to the United Nations Security Council as early as next week.
MIDEAST STOCKS- #Qatar jumps on PM’s visit to #Saudi as major Gulf markets leap - Reuters
MIDEAST STOCKS-Qatar jumps on PM’s visit to Saudi as major Gulf markets leap - Reuters:
Qatar's stock market surged to its
biggest intra-day high in nine months on Thursday after report
that Qatar's prime minister will attend an Arab summit in Saudi
Arabia, while all major Gulf bourses also rallied mostly riding
on financial stocks.
Qatar's prime minister will attend an Arab summit in Saudi
Arabia on Thursday to discuss regional security, the Foreign
Ministry said on Wednesday, the highest level Qatari official to
visit the kingdom during a diplomatic rift.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt
imposed an economic and diplomatic boycott on Qatar in June 2017
over allegations that Doha supports terrorism, a charge Qatar
denies.
Qatar's stock market surged to its
biggest intra-day high in nine months on Thursday after report
that Qatar's prime minister will attend an Arab summit in Saudi
Arabia, while all major Gulf bourses also rallied mostly riding
on financial stocks.
Qatar's prime minister will attend an Arab summit in Saudi
Arabia on Thursday to discuss regional security, the Foreign
Ministry said on Wednesday, the highest level Qatari official to
visit the kingdom during a diplomatic rift.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt
imposed an economic and diplomatic boycott on Qatar in June 2017
over allegations that Doha supports terrorism, a charge Qatar
denies.
Iran Showdown Forces Sign of Breakthrough in Gulf Arab Spat - Bloomberg
Iran Showdown Forces Sign of Breakthrough in Gulf Arab Spat - Bloomberg:
It took the threat of war with Iran to force Gulf Arab rivals into a show of unity.
Qatar said that Prime Minister Sheikh Abdullah Bin Nasser Al Thani will attend regional summits in Saudi Arabia on Thursday, in the highest-level visit since the kingdom and its allies imposed an embargo on their neighbor in 2017.
The visit, the first concrete step toward ending a rift that severed diplomatic and trade ties, comes amid fears the region may be sliding into conflict as the U.S. raises economic and military pressure on Iran. Saudi Arabia called for three meetings -- one for Gulf leaders, another for Arab states and a third for all Muslim nations -- after attacks on its oil facilities and several ships near the Persian Gulf. Iran has denied any involvement in the incidents.
It took the threat of war with Iran to force Gulf Arab rivals into a show of unity.
Qatar said that Prime Minister Sheikh Abdullah Bin Nasser Al Thani will attend regional summits in Saudi Arabia on Thursday, in the highest-level visit since the kingdom and its allies imposed an embargo on their neighbor in 2017.
The visit, the first concrete step toward ending a rift that severed diplomatic and trade ties, comes amid fears the region may be sliding into conflict as the U.S. raises economic and military pressure on Iran. Saudi Arabia called for three meetings -- one for Gulf leaders, another for Arab states and a third for all Muslim nations -- after attacks on its oil facilities and several ships near the Persian Gulf. Iran has denied any involvement in the incidents.
Oil Rises as U.S. Inventory Decline Offsets Angst Over Trade War - Bloomberg
Oil Rises as U.S. Inventory Decline Offsets Angst Over Trade War - Bloomberg:
Oil recovered in New York as signs of tighter supplies in the U.S. offset concerns that the prolonged trade war between America and China will hurt demand.
Futures in New York gained 0.5%, but remain on track for a monthly loss. The American Petroleum Institute said that U.S. crude inventories fell by 5.27 million barrels last week, suggesting that more comprehensive government data due Thursday may show a larger decline than the 1.36 million-barrel drop expected by analysts.
Oil is headed for its first monthly loss this year after a shattering of the trade truce between the U.S. and China threw the global growth outlook into question. Volatility has risen as traders are torn between trade-war headlines and fears that tensions between America and Iran may lead to conflict in the oil-rich Persian Gulf.
West Texas Intermediate crude for July delivery rose 32 cents, or 0.5%, to $59.13 a barrel on the New York Mercantile Exchange as of 10:53 a.m. London time, after climbing as much as 89 cents earlier. The contract is down 7.4% so far this month.
Brent for July settlement was little changed at $69.39 a barrel on London’s ICE Europe Futures after closing down 0.9% on Wednesday. The global benchmark crude was trading at a premium of $10.22 a barrel to WTI.
Oil recovered in New York as signs of tighter supplies in the U.S. offset concerns that the prolonged trade war between America and China will hurt demand.
Futures in New York gained 0.5%, but remain on track for a monthly loss. The American Petroleum Institute said that U.S. crude inventories fell by 5.27 million barrels last week, suggesting that more comprehensive government data due Thursday may show a larger decline than the 1.36 million-barrel drop expected by analysts.
Oil is headed for its first monthly loss this year after a shattering of the trade truce between the U.S. and China threw the global growth outlook into question. Volatility has risen as traders are torn between trade-war headlines and fears that tensions between America and Iran may lead to conflict in the oil-rich Persian Gulf.
West Texas Intermediate crude for July delivery rose 32 cents, or 0.5%, to $59.13 a barrel on the New York Mercantile Exchange as of 10:53 a.m. London time, after climbing as much as 89 cents earlier. The contract is down 7.4% so far this month.
Brent for July settlement was little changed at $69.39 a barrel on London’s ICE Europe Futures after closing down 0.9% on Wednesday. The global benchmark crude was trading at a premium of $10.22 a barrel to WTI.
UPDATE 1- #UAE's GEMS buys #SaudiArabia's biggest private school group Ma'arif - Reuters
UPDATE 1-UAE's GEMS buys Saudi Arabia's biggest private school group Ma'arif - Reuters:
United Arab Emirates-based GEMS Education has expanded into Saudi Arabia by buying Ma’arif Education Group, the largest private school owner and operator in the kingdom, through a joint venture with Hassana Investment.
GEMS, the Middle East-focused education group whose investors include Blackstone, said in October it may invest $800 million with Hassana over the next decade to develop a network of schools in Saudi Arabia.
GEMS, which is majority owned by Dubai-based Varkey Group, said in a statement that it had signed an agreement to acquire Ma’arif, which has more than 22,000 students across its national and international schools in Saudi, with Hassana.
United Arab Emirates-based GEMS Education has expanded into Saudi Arabia by buying Ma’arif Education Group, the largest private school owner and operator in the kingdom, through a joint venture with Hassana Investment.
GEMS, the Middle East-focused education group whose investors include Blackstone, said in October it may invest $800 million with Hassana over the next decade to develop a network of schools in Saudi Arabia.
GEMS, which is majority owned by Dubai-based Varkey Group, said in a statement that it had signed an agreement to acquire Ma’arif, which has more than 22,000 students across its national and international schools in Saudi, with Hassana.
MIDEAST STOCKS-Banks lift #Qatar as all major Gulf markets rise - Reuters
MIDEAST STOCKS-Banks lift Qatar as all major Gulf markets rise - Reuters:
Qatar’s stock market rose sharply on Thursday, buoyed by its banks and leading gains in all other major Gulf bourses.
Qatar’s index rose 2.2% as Qatar National Bank and Qatar Islamic Bank climbed 4.2% and 5% respectively.
Qatar’s stock exchange is developing two new Exchange Traded Funds, part of efforts by the Middle East’s strongest performing stock market in 2018 to boost foreign investment, Reuters reported last week, citing CEO Rashid al-Mansoori.
Qatar’s stock market rose sharply on Thursday, buoyed by its banks and leading gains in all other major Gulf bourses.
Qatar’s index rose 2.2% as Qatar National Bank and Qatar Islamic Bank climbed 4.2% and 5% respectively.
Qatar’s stock exchange is developing two new Exchange Traded Funds, part of efforts by the Middle East’s strongest performing stock market in 2018 to boost foreign investment, Reuters reported last week, citing CEO Rashid al-Mansoori.
Wednesday 29 May 2019
Oil prices fall as trade war worries outweigh supply disruptions - Reuters
Oil prices fall as trade war worries outweigh supply disruptions - Reuters:
Oil prices fell in volatile trade on Wednesday, weighed down by equity markets as China signaled readiness to escalate the trade war with the United States, stoking concerns that an ongoing stand-off could hurt demand.
Supply constraints linked to the Organization of the Petroleum Exporting Countries’ output cuts and political tensions in the Middle East offered some support, however.
Brent crude futures, the international benchmark for oil prices, ended the session at $69.45 a barrel, down 66 cents, or 0.9%, having hit a session low of $68.08.
U.S. West Texas Intermediate (WTI) crude futures fell 33 cents, or 0.6%, to settle at $58.81 per barrel, after hitting a low of $56.88, the lowest since March 12.
Oil prices fell in volatile trade on Wednesday, weighed down by equity markets as China signaled readiness to escalate the trade war with the United States, stoking concerns that an ongoing stand-off could hurt demand.
Supply constraints linked to the Organization of the Petroleum Exporting Countries’ output cuts and political tensions in the Middle East offered some support, however.
Brent crude futures, the international benchmark for oil prices, ended the session at $69.45 a barrel, down 66 cents, or 0.9%, having hit a session low of $68.08.
U.S. West Texas Intermediate (WTI) crude futures fell 33 cents, or 0.6%, to settle at $58.81 per barrel, after hitting a low of $56.88, the lowest since March 12.
Solar, onshore wind costs set to fall below new fossil fuel energy: report - Reuters
Solar, onshore wind costs set to fall below new fossil fuel energy: report - Reuters:
Electricity generated by onshore wind and solar photovoltaic (PV) technologies will in the next year be consistently cheaper than from any fossil fuel source, a report showed on Wednesday, boosting the case for energy sources that don’t emit carbon.
The trend for cut-price renewable energy is already set but the report by the International Renewable Energy Agency (IRENA) gives fresh evidence of the speed of the decline, driven by increased production runs and technology improvements.
“Onshore wind and solar PV are set by 2020 to consistently offer a less expensive source of new electricity than the least-cost fossil-fuel alternative without financial assistance,” said IRENA, a government-backed body that aims to support countries in their transition to sustainable energy sources.
The global weighted average cost of electricity generated by concentrated solar power fell by 26% last year from a year earlier, data compiled by the agency showed. Bioenegy fell by 14%, solar PV and onshore wind by 13%, hydropower by 12% and geothermal and offshore wind by 1%.
Electricity generated by onshore wind and solar photovoltaic (PV) technologies will in the next year be consistently cheaper than from any fossil fuel source, a report showed on Wednesday, boosting the case for energy sources that don’t emit carbon.
The trend for cut-price renewable energy is already set but the report by the International Renewable Energy Agency (IRENA) gives fresh evidence of the speed of the decline, driven by increased production runs and technology improvements.
“Onshore wind and solar PV are set by 2020 to consistently offer a less expensive source of new electricity than the least-cost fossil-fuel alternative without financial assistance,” said IRENA, a government-backed body that aims to support countries in their transition to sustainable energy sources.
The global weighted average cost of electricity generated by concentrated solar power fell by 26% last year from a year earlier, data compiled by the agency showed. Bioenegy fell by 14%, solar PV and onshore wind by 13%, hydropower by 12% and geothermal and offshore wind by 1%.
Speaking of EM: May's Been Cruel for Stocks. Now What? (Podcast) - Bloomberg
Bloomberg:
Emerging-market equity traders have been caught out making the same mistake that cost them $5.8 trillion last year: underestimating the strength of the U.S. dollar.
MSCI Inc.’s index for stocks is headed for a more than 8% drop in May, helping to erase in excess of $1 trillion in shareholder wealth. The greenback’s resilience after President Donald Trump revealed he was in no rush to end the U.S. trade war with China surprised traders, who had priced in a quick end to the tensions.
Editor Srinivasan Sivabalan in London talks to Dubai-based Dana El Baltaji about where stocks can go from here.
Emerging-market equity traders have been caught out making the same mistake that cost them $5.8 trillion last year: underestimating the strength of the U.S. dollar.
MSCI Inc.’s index for stocks is headed for a more than 8% drop in May, helping to erase in excess of $1 trillion in shareholder wealth. The greenback’s resilience after President Donald Trump revealed he was in no rush to end the U.S. trade war with China surprised traders, who had priced in a quick end to the tensions.
Editor Srinivasan Sivabalan in London talks to Dubai-based Dana El Baltaji about where stocks can go from here.
Ending #Qatar Blockade Should Be Priority for Donald Trump - Bloomberg
Ending Qatar Blockade Should Be Priority for Donald Trump - Bloomberg:
It’s now nearly two years since a coalition of Arab countries imposed a misguided economic blockade on Qatar. The group — Bahrain, Egypt, Saudi Arabia and the United Arab Emirates — said it was punishing the gas-rich emirate for its ties with Iran and the Muslim Brotherhood, but the embargo is widely perceived as part of a larger competition for preeminence in Arab affairs.
Ending it should be a priority for U.S. President Donald Trump. Of the Arab world’s many divisions, sectarian and political, none is more damaging to American interests than this one. The Saudi-led group’s objectives haven’t been met. On the contrary, denied food supplies from — and air routes over — the blockading states, Qatar has only grown more dependent on Iran, while its economy has weathered the blockade with ease.
Meanwhile, the dispute is putting U.S. allies Kuwait and Oman in an awkward position. Both countries have strong relationships with Qatar and maintain wary ties with Iran, which is close enough to menace their security. But neither can afford to antagonize Saudi Arabia, the region’s most powerful nation.
It’s now nearly two years since a coalition of Arab countries imposed a misguided economic blockade on Qatar. The group — Bahrain, Egypt, Saudi Arabia and the United Arab Emirates — said it was punishing the gas-rich emirate for its ties with Iran and the Muslim Brotherhood, but the embargo is widely perceived as part of a larger competition for preeminence in Arab affairs.
Ending it should be a priority for U.S. President Donald Trump. Of the Arab world’s many divisions, sectarian and political, none is more damaging to American interests than this one. The Saudi-led group’s objectives haven’t been met. On the contrary, denied food supplies from — and air routes over — the blockading states, Qatar has only grown more dependent on Iran, while its economy has weathered the blockade with ease.
Meanwhile, the dispute is putting U.S. allies Kuwait and Oman in an awkward position. Both countries have strong relationships with Qatar and maintain wary ties with Iran, which is close enough to menace their security. But neither can afford to antagonize Saudi Arabia, the region’s most powerful nation.
#AbuDhabi's airports, ports and power firms moved to new holding company - Reuters
Abu Dhabi's airports, ports and power firms moved to new holding company - Reuters:
Abu Dhabi is creating a new holding company for seven state-owned firms with operations ranging from airports to power supply to make it easier for them to raise debt and improve services, three sources told Reuters.
The new holding company, Abu Dhabi Development Holding Company (ADDHC), will be led by Mohamed Hassan al-Suwaidi, a former executive of Abu Dhabi state fund Mubadala, and the seven firms could eventually be privatised.
The holding company’s portfolio will include Abu Dhabi Airports, Abu Dhabi Ports, Abu Dhabi National Exhibition Centre, Abu Dhabi Media, Abu Dhabi Power Company, Khalifa Industrial Zone Abu Dhabi, and Abu Dhabi Health Services Co, said two of the sources.
Abu Dhabi is creating a new holding company for seven state-owned firms with operations ranging from airports to power supply to make it easier for them to raise debt and improve services, three sources told Reuters.
The new holding company, Abu Dhabi Development Holding Company (ADDHC), will be led by Mohamed Hassan al-Suwaidi, a former executive of Abu Dhabi state fund Mubadala, and the seven firms could eventually be privatised.
The holding company’s portfolio will include Abu Dhabi Airports, Abu Dhabi Ports, Abu Dhabi National Exhibition Centre, Abu Dhabi Media, Abu Dhabi Power Company, Khalifa Industrial Zone Abu Dhabi, and Abu Dhabi Health Services Co, said two of the sources.
Oil prices drop as trade war worries outweigh supply disruptions - Reuters
Oil prices drop as trade war worries outweigh supply disruptions - Reuters:
Oil prices fell more than 1% in volatile trade on Wednesday, weighed down by equity markets as China signaled readiness to escalate the trade war with the United States, stoking concerns that an ongoing stand-off could hurt demand.
Supply constraints linked to the Organization of the Petroleum Exporting Countries’ output cuts and political tensions in the Middle East offered some support, however.
Brent crude futures, the international benchmark for oil prices, were at $69.07 a barrel at 1:13 p.m. ET (1713 GMT), down $1.04, or 1.5%, having hit a session low of $68.08.
U.S. West Texas Intermediate (WTI) crude futures fell 62 cents, or 1.1%, to $58.52 per barrel, after hitting a low of $56.88, their lowest level since March 12.
Oil prices fell more than 1% in volatile trade on Wednesday, weighed down by equity markets as China signaled readiness to escalate the trade war with the United States, stoking concerns that an ongoing stand-off could hurt demand.
Supply constraints linked to the Organization of the Petroleum Exporting Countries’ output cuts and political tensions in the Middle East offered some support, however.
Brent crude futures, the international benchmark for oil prices, were at $69.07 a barrel at 1:13 p.m. ET (1713 GMT), down $1.04, or 1.5%, having hit a session low of $68.08.
U.S. West Texas Intermediate (WTI) crude futures fell 62 cents, or 1.1%, to $58.52 per barrel, after hitting a low of $56.88, their lowest level since March 12.
#Qatar denies banning #UAE goods after WTO dispute panel formed - Reuters
Qatar denies banning UAE goods after WTO dispute panel formed - Reuters:
Qatar denied on Wednesday it had been restricting imports of goods from the United Arab Emirates, a day after the World Trade Organisation (WTO) agreed to investigate a UAE complaint.
The UAE, Saudi Arabia, Bahrain, and Egypt have imposed a diplomatic, trade and transport boycott of Qatar since June 2017 over allegations Doha supports terrorism, a charge Qatar denies.
The UAE has said that Qatar began banning its goods following the boycott, and filed a complaint with WTO earlier this year that was accepted on Tuesday.
Qatar denied on Wednesday it had been restricting imports of goods from the United Arab Emirates, a day after the World Trade Organisation (WTO) agreed to investigate a UAE complaint.
The UAE, Saudi Arabia, Bahrain, and Egypt have imposed a diplomatic, trade and transport boycott of Qatar since June 2017 over allegations Doha supports terrorism, a charge Qatar denies.
The UAE has said that Qatar began banning its goods following the boycott, and filed a complaint with WTO earlier this year that was accepted on Tuesday.
MIDEAST STOCKS-Profit-taking, global stock slide weigh on #Saudi stocks - Agricultural Commodities - Reuters
MIDEAST STOCKS-Profit-taking, global stock slide weigh on Saudi stocks - Agricultural Commodities - Reuters:
Saudi Arabian stocks dropped on Wednesday
as falling oil prices and weak global sentiment pulled down
banking shares on the market's first of trading as a member of
the MSCI emerging markets index.
Some investors also cashed in their holdings ahead of the
long Eid Holiday in the next week.
Thirty Saudi-listed securities were added to MSCI's index
after the close of trading on Tuesday, representing an aggregate
weight of 1.42% in the Emerging Markets Index.
Saudi Arabian stocks dropped on Wednesday
as falling oil prices and weak global sentiment pulled down
banking shares on the market's first of trading as a member of
the MSCI emerging markets index.
Some investors also cashed in their holdings ahead of the
long Eid Holiday in the next week.
Thirty Saudi-listed securities were added to MSCI's index
after the close of trading on Tuesday, representing an aggregate
weight of 1.42% in the Emerging Markets Index.
#UAE Central Bank More Pessimistic on 2019 Than IMF - Bloomberg
U.A.E. Central Bank More Pessimistic on 2019 Than IMF - Bloomberg:
Economic growth in OPEC’s third-biggest producer this year will fall far short of previous estimates and could undershoot the latest projections from the International Monetary Fund, according to the central bank of the United Arab Emirates.
Gross domestic product will expand only 2% in 2019, compared with a previous forecast for 3.5% published in March, the central bank said in its annual report. The IMF sees a pickup to 2.8% from 1.7% last year, according to its April regional economic outlook. In a May 2 statement, the fund said “growth could exceed” 2% this year and approach 3% in 2020-21.
The oil economy is set to grow 2.7%, a downward revision from 3.7%, according to the central bank. The non-oil economy will expand an estimated 1.8%, versus an earlier forecast for 3.4%, it said.
Economic growth in OPEC’s third-biggest producer this year will fall far short of previous estimates and could undershoot the latest projections from the International Monetary Fund, according to the central bank of the United Arab Emirates.
Gross domestic product will expand only 2% in 2019, compared with a previous forecast for 3.5% published in March, the central bank said in its annual report. The IMF sees a pickup to 2.8% from 1.7% last year, according to its April regional economic outlook. In a May 2 statement, the fund said “growth could exceed” 2% this year and approach 3% in 2020-21.
The oil economy is set to grow 2.7%, a downward revision from 3.7%, according to the central bank. The non-oil economy will expand an estimated 1.8%, versus an earlier forecast for 3.4%, it said.
Tadawul's MSCI upgrade to attract $40bln of foreign inflows | ZAWYA MENA Edition
Tadawul's MSCI upgrade to attract $40bln of foreign inflows | ZAWYA MENA Edition:
Saudi Arabia’s stock market joined the MSCI emerging market (EM) index at the close of the trading session on Tuesday. A total of $40 billion of foreign fund inflows is expected to come into the market from the inclusion, an analyst told Zawya.
The kingdom's stock exchange (Tadawul) is the Arab world’s largest bourse with a total market capitalisation of over half a trillion dollars.
“There has been more than $8.6 billion of foreign inflows into Saudi since the beginning of 2019 and we expect a total of $40 billion to come into the market as a result of Saudi’s inclusion in the MSCI Emerging Markets Index,” Salah Shamma, head of investment, MENA, at Franklin Templeton emerging markets equity, told Zawya by email.
Saudi Arabia’s stock market joined the MSCI emerging market (EM) index at the close of the trading session on Tuesday. A total of $40 billion of foreign fund inflows is expected to come into the market from the inclusion, an analyst told Zawya.
The kingdom's stock exchange (Tadawul) is the Arab world’s largest bourse with a total market capitalisation of over half a trillion dollars.
“There has been more than $8.6 billion of foreign inflows into Saudi since the beginning of 2019 and we expect a total of $40 billion to come into the market as a result of Saudi’s inclusion in the MSCI Emerging Markets Index,” Salah Shamma, head of investment, MENA, at Franklin Templeton emerging markets equity, told Zawya by email.
#Abraaj founder released from custody after $19 million bail payment - Reuters
Abraaj founder released from custody after $19 million bail payment - Reuters:
Arif Naqvi, the Pakistani founder of collapsed private equity firm Abraaj Group, has been released from custody after meeting bail conditions including the payment of a 15 million pound ($19 million) security, a court official said.
Naqvi was being held at Wandsworth Prison in London after he was arrested in April in connection with charges he faces in the United States of defrauding investors including the Bill & Melinda Gates Foundation.
“These past weeks have been an extremely challenging time for Mr Naqvi and his family,” said a statement released on Naqvi’s behalf via a PR firm.
Arif Naqvi, the Pakistani founder of collapsed private equity firm Abraaj Group, has been released from custody after meeting bail conditions including the payment of a 15 million pound ($19 million) security, a court official said.
Naqvi was being held at Wandsworth Prison in London after he was arrested in April in connection with charges he faces in the United States of defrauding investors including the Bill & Melinda Gates Foundation.
“These past weeks have been an extremely challenging time for Mr Naqvi and his family,” said a statement released on Naqvi’s behalf via a PR firm.
MIDEAST STOCKS-Global woes weigh on #Saudi stocks as they join MSCI index - Reuters
MIDEAST STOCKS-Global woes weigh on Saudi stocks as they join MSCI index - Reuters:
Saudi Arabia’s stock market slipped on Wednesday as weak global sentiment clouded the first day of trading for the market as a new member of the MSCI emerging markets index. Most other Gulf markets also dropped.
Thirty Saudi-listed securities were added to the index after the market close on Tuesday, representing an aggregate weight of 1.42% in the MSCI Emerging Markets Index.
Saudi’s index fell 1.6%, weighed down by financial stocks, with Al Rajhi Bank decreasing 1.9% and Banque Saudi Fransi sliding 4.6%.
Saudi Arabia’s stock market slipped on Wednesday as weak global sentiment clouded the first day of trading for the market as a new member of the MSCI emerging markets index. Most other Gulf markets also dropped.
Thirty Saudi-listed securities were added to the index after the market close on Tuesday, representing an aggregate weight of 1.42% in the MSCI Emerging Markets Index.
Saudi’s index fell 1.6%, weighed down by financial stocks, with Al Rajhi Bank decreasing 1.9% and Banque Saudi Fransi sliding 4.6%.
Tuesday 28 May 2019
Uncertainty clouds #UAE businessman’s bid for Newcastle Utd | Financial Times
Uncertainty clouds UAE businessman’s bid for Newcastle Utd | Financial Times:
Sheikh Khaled bin Zayed Al Nahyan, a member of a United Arab Emirates’ ruling family, has announced he is in talks to buy English Premier League club Newcastle United, becoming the latest Gulf investor to show interest in entering European football.
Newcastle was put up for sale by its owner Mike Ashley, the British retail magnate, two years ago and has been subject to a number of bids from several parties over that time without success. The founder of Sports Direct had been seeking a deal that would value the club at up to £300m, according to people familiar with previous talks to buy the club.
On Tuesday, however, there remained confusion as to whether Mr Ashley had accepted Sheikh Khaled’s approach or how close a deal was to completion.
Sheikh Khaled bin Zayed Al Nahyan, a member of a United Arab Emirates’ ruling family, has announced he is in talks to buy English Premier League club Newcastle United, becoming the latest Gulf investor to show interest in entering European football.
Newcastle was put up for sale by its owner Mike Ashley, the British retail magnate, two years ago and has been subject to a number of bids from several parties over that time without success. The founder of Sports Direct had been seeking a deal that would value the club at up to £300m, according to people familiar with previous talks to buy the club.
On Tuesday, however, there remained confusion as to whether Mr Ashley had accepted Sheikh Khaled’s approach or how close a deal was to completion.
U.S. oil prices up as flooding hits Cushing hub - Reuters
U.S. oil prices up as flooding hits Cushing hub - Reuters:
U.S. crude futures gained almost 1% on Tuesday after flooding throughout the Midwest constrained crude flow from the main U.S. storage hub in Cushing, Oklahoma.
U.S. West Texas Intermediate (WTI) futures settled at $59.14 a barrel, up 51 cents, or 0.9%, from its close on Friday before the long Memorial Day holiday weekend.
“Flooding seems to have impacted distribution hubs around the United States, slowing stuff coming out of Cushing and creating a bid on WTI,” said Phillip Streible, senior market strategist at RJO Futures in Chicago.
U.S. crude futures gained almost 1% on Tuesday after flooding throughout the Midwest constrained crude flow from the main U.S. storage hub in Cushing, Oklahoma.
U.S. West Texas Intermediate (WTI) futures settled at $59.14 a barrel, up 51 cents, or 0.9%, from its close on Friday before the long Memorial Day holiday weekend.
“Flooding seems to have impacted distribution hubs around the United States, slowing stuff coming out of Cushing and creating a bid on WTI,” said Phillip Streible, senior market strategist at RJO Futures in Chicago.
Oil Rises as Supply Risks Ripple Through Mideast, Great Plains - Bloomberg
Oil Rises as Supply Risks Ripple Through Mideast, Great Plains - Bloomberg:
Oil climbed for a second day as supply risks from the Middle East to the U.S. Great Plains overwhelmed concerns that trade tensions will swamp energy demand.
Futures advanced as much as 1.6% in New York on Tuesday, joining a recovery in equity markets. A jump in consumer confidence fueled optimism among traders returning to work after crude logged the steepest weekly decline of 2019.
“A lot of guys looked at the washout we saw last week as an opportunity,” said Phil Streible, senior market strategist at RJO Futures Group Inc. in Chicago. “There was a lot of money on the sides with people who think oil is going to press back upwards.”
Oil climbed for a second day as supply risks from the Middle East to the U.S. Great Plains overwhelmed concerns that trade tensions will swamp energy demand.
Futures advanced as much as 1.6% in New York on Tuesday, joining a recovery in equity markets. A jump in consumer confidence fueled optimism among traders returning to work after crude logged the steepest weekly decline of 2019.
“A lot of guys looked at the washout we saw last week as an opportunity,” said Phil Streible, senior market strategist at RJO Futures Group Inc. in Chicago. “There was a lot of money on the sides with people who think oil is going to press back upwards.”
#Saudi Stocks Surge as Investors Prepare for MSCI Inclusion - Bloomberg
Saudi Stocks Surge as Investors Prepare for MSCI Inclusion - Bloomberg:
Shares in Saudi Arabia surged at the close as MSCI Inc. was set to begin including some of the kingdom’s shares into its main emerging-market index.
The Tadawul All Share Index rose 2% on the day, after fluctuating throughout the session, with banks contributing the most to the increase. The Tadawul trimmed this month’s losses to 8%. MSCI is set to add the kingdom to its developing country benchmark, using Tuesday’s closing prices.
Saudi Basic Industries Corp., Al Rajhi Bank, National Commercial Bank, Saudi Telecom Co. and Samba Financial Group are expected to draw the most inflows from the first stage of the MSCI inclusion. Together, they should attract about $3.5 billion from money managers passively tracking the index, according to estimates by Mohamad Al Hajj, equities strategist at EFG-Hermes in Dubai.
Shares in Saudi Arabia surged at the close as MSCI Inc. was set to begin including some of the kingdom’s shares into its main emerging-market index.
The Tadawul All Share Index rose 2% on the day, after fluctuating throughout the session, with banks contributing the most to the increase. The Tadawul trimmed this month’s losses to 8%. MSCI is set to add the kingdom to its developing country benchmark, using Tuesday’s closing prices.
Saudi Basic Industries Corp., Al Rajhi Bank, National Commercial Bank, Saudi Telecom Co. and Samba Financial Group are expected to draw the most inflows from the first stage of the MSCI inclusion. Together, they should attract about $3.5 billion from money managers passively tracking the index, according to estimates by Mohamad Al Hajj, equities strategist at EFG-Hermes in Dubai.
#UAE Cabinet cancels fees for more than 1,500 govt services | ZAWYA MENA Edition
UAE Cabinet cancels fees for more than 1,500 govt services | ZAWYA MENA Edition:
The UAE Cabinet adopted a decision to amend and waive fees for a number of federal services within the framework of Government’s effort to enhance the national economy, reduce costs to business owners and increase the competitiveness of the UAE.
The decision promotes economic growth in the UAE and it includes the amendment or cancellation of fees for more than 1,500 government services provided by the Ministry of Interior, Ministry of Economy, Ministry of Human Resources and Emiratisation.
The decision contributes to attracting more foreign investments and position the UAE a hub for business by reducing administrative costs and fees. The decision also balances the revenue system of the government in parallel with the tax system.
The UAE Cabinet adopted a decision to amend and waive fees for a number of federal services within the framework of Government’s effort to enhance the national economy, reduce costs to business owners and increase the competitiveness of the UAE.
The decision promotes economic growth in the UAE and it includes the amendment or cancellation of fees for more than 1,500 government services provided by the Ministry of Interior, Ministry of Economy, Ministry of Human Resources and Emiratisation.
The decision contributes to attracting more foreign investments and position the UAE a hub for business by reducing administrative costs and fees. The decision also balances the revenue system of the government in parallel with the tax system.
REFILE- #Saudi Real Estate Refinance Co to obtain sovereign guarantees on sukuk - Reuters
REFILE-Saudi Real Estate Refinance Co to obtain sovereign guarantees on sukuk - Reuters:
Saudi Real Estate Refinance Co (SRC), modelled on U.S. mortgage finance firm Fannie Mae, said on Tuesday it will obtain from the Ministry of Finance sovereign guarantees on its planned issues of sukuk, or Islamic bonds.
SRC, a subsidiary of Saudi Arabia’s sovereign Public Investment Fund, plans to issue 4 billion riyals ($1.07 billion) in sukuk this year, the firm’s chief executive told Reuters last month.
The bond issuance comes amid plans to purchase more home loan portfolios from mortgage financing companies and banks to boost the kingdom’s secondary mortgage market.
Saudi Real Estate Refinance Co (SRC), modelled on U.S. mortgage finance firm Fannie Mae, said on Tuesday it will obtain from the Ministry of Finance sovereign guarantees on its planned issues of sukuk, or Islamic bonds.
SRC, a subsidiary of Saudi Arabia’s sovereign Public Investment Fund, plans to issue 4 billion riyals ($1.07 billion) in sukuk this year, the firm’s chief executive told Reuters last month.
The bond issuance comes amid plans to purchase more home loan portfolios from mortgage financing companies and banks to boost the kingdom’s secondary mortgage market.
Hedge funds bang defensive drum on oil: Kemp - Reuters
Hedge funds bang defensive drum on oil: Kemp - Reuters:
Hedge funds liquidated more of their bullish petroleum positions as concerns about the health of the global economy and oil usage outweighed European and Middle Eastern supply disruptions.
But selling in the most recent week was notably lighter than in the three previous, suggesting at least some managers think prices have pulled back enough for the time being.
Positions were reported at the close on May 21, before oil prices slumped on May 23 amid fears about the economic impact of a prolonged trade conflict between China and the United States.
Hedge funds liquidated more of their bullish petroleum positions as concerns about the health of the global economy and oil usage outweighed European and Middle Eastern supply disruptions.
But selling in the most recent week was notably lighter than in the three previous, suggesting at least some managers think prices have pulled back enough for the time being.
Positions were reported at the close on May 21, before oil prices slumped on May 23 amid fears about the economic impact of a prolonged trade conflict between China and the United States.
#UAE economic growth expected at 2% in 2019 - central bank - Reuters
UAE economic growth expected at 2% in 2019 - central bank - Reuters:
The United Arab Emirates has revised downwards its expectations for economic growth in 2019, with real gross domestic product (GDP) now expected to grow 2% this year, the central bank said on Tuesday.
In its last quarterly report in March, the central bank said it expected GDP to grow 3.5%.
Economic growth coming from the oil sector is expected to be 2.7%, against 2.8% last year, because of lower oil production, the bank said in a statement.
The United Arab Emirates has revised downwards its expectations for economic growth in 2019, with real gross domestic product (GDP) now expected to grow 2% this year, the central bank said on Tuesday.
In its last quarterly report in March, the central bank said it expected GDP to grow 3.5%.
Economic growth coming from the oil sector is expected to be 2.7%, against 2.8% last year, because of lower oil production, the bank said in a statement.
#Bahrain misses key fiscal adjustment goals with 2019-2020 budget - Reuters
Bahrain misses key fiscal adjustment goals with 2019-2020 budget - Reuters:
Bahrain does not expect to meet some of the key goals it set out last year as part of a fiscal adjustment program linked to a $10 billion bailout received from its Gulf allies, a final draft of its state budget for the next two years shows.
Saudi Arabia, Kuwait and the United Arab Emirates last year pledged $10 billion in financial aid for the small Gulf oil producer as it headed for a credit crunch after piling up debt to offset the impact on revenues of lower oil prices.
The aid, however, was linked to a series of reforms aimed at eliminating Bahrain’s budget deficit by 2022.
Bahrain does not expect to meet some of the key goals it set out last year as part of a fiscal adjustment program linked to a $10 billion bailout received from its Gulf allies, a final draft of its state budget for the next two years shows.
Saudi Arabia, Kuwait and the United Arab Emirates last year pledged $10 billion in financial aid for the small Gulf oil producer as it headed for a credit crunch after piling up debt to offset the impact on revenues of lower oil prices.
The aid, however, was linked to a series of reforms aimed at eliminating Bahrain’s budget deficit by 2022.
Oil mixed as trade fears weigh despite tight supply - Reuters
Oil mixed as trade fears weigh despite tight supply - Reuters:
Oil prices were mixed on Tuesday as prices were caught between concerns over global supply and fears that the U.S.-Chinese trade conflict will hurt demand.
Brent crude fell by 9 cents, or 0.1%, to $70.02 a barrel by 1245 GMT, with prices repeatedly veering above and below $70 in choppy trading.
U.S. West Texas Intermediate (WTI) was up 47 cents, or 0.8%, at $59.10. U.S. crude futures were trading for the first time since Friday after a long holiday weekend.
Oil prices were mixed on Tuesday as prices were caught between concerns over global supply and fears that the U.S.-Chinese trade conflict will hurt demand.
Brent crude fell by 9 cents, or 0.1%, to $70.02 a barrel by 1245 GMT, with prices repeatedly veering above and below $70 in choppy trading.
U.S. West Texas Intermediate (WTI) was up 47 cents, or 0.8%, at $59.10. U.S. crude futures were trading for the first time since Friday after a long holiday weekend.
MIDEAST STOCKS- #Saudi rises to its best day in 7 months, leading Gulf rally - Reuters
MIDEAST STOCKS-Saudi rises to its best day in 7 months, leading Gulf rally - Reuters:
Saudi Arabia's stock market rose sharply
on Tuesday ahead of its introduction into the MSCI emerging
markets index after this session's close, while all major Gulf
bourses rallied.
Saudi's index rose 2% for its biggest single-day
gain since October 2018. Al Rajhi Bank increased 2.1%
and petrochemical maker Saudi Basic Industries added
2%.
The two stocks will be among the largest additions to the
MSCI emerging markets index measured by full company market
capitalization.
Saudi Arabia's stock market rose sharply
on Tuesday ahead of its introduction into the MSCI emerging
markets index after this session's close, while all major Gulf
bourses rallied.
Saudi's index rose 2% for its biggest single-day
gain since October 2018. Al Rajhi Bank increased 2.1%
and petrochemical maker Saudi Basic Industries added
2%.
The two stocks will be among the largest additions to the
MSCI emerging markets index measured by full company market
capitalization.
Iranians adjust to living under Trump’s sanctions | Financial Times
Iranians adjust to living under Trump’s sanctions | Financial Times: Today, Iran is more stable than at this time last year. This may surprise Donald Trump’s US administration, which has imposed the toughest ever sanctions against the Islamic republic over its controversial regional and defence policies. Iranians had no clue where the US’s economic war was dragging them to last year as they saw their currency plunge about 60 per cent on the open market.
But as the republic tries to rebalance the economy, people have found some certainty in the uncertainty and have acted to lessen their economic vulnerability. Their resilience and hedging against rampant inflation will make it difficult for US hawks to push Iran towards the street protests — as in the 1979 revolution — and eventual regime change that they may seek.
Perhaps the US miscalculated the level of Iranians’ disillusionment with their rulers. Maybe Americans were misguided by opposition groups. It is true that the political establishment is challenged with anti-regime slogans and claims of corruption and that protests continue, although these are small and sporadic. The economy is contracting and an army of unemployed young people think they have no future in their homeland. The hopelessness is alarming.
But as the republic tries to rebalance the economy, people have found some certainty in the uncertainty and have acted to lessen their economic vulnerability. Their resilience and hedging against rampant inflation will make it difficult for US hawks to push Iran towards the street protests — as in the 1979 revolution — and eventual regime change that they may seek.
Perhaps the US miscalculated the level of Iranians’ disillusionment with their rulers. Maybe Americans were misguided by opposition groups. It is true that the political establishment is challenged with anti-regime slogans and claims of corruption and that protests continue, although these are small and sporadic. The economy is contracting and an army of unemployed young people think they have no future in their homeland. The hopelessness is alarming.
IndiGo Targets Emirates After Indian Airline Success - Bloomberg
IndiGo Targets Emirates After Indian Airline Success - Bloomberg:
Think Emirates just had a bad year? It’s about to get a whole lot worse.
The world’s largest airline by international passengers hit an air pocket in the 12 months through April, with net income falling by more than two-thirds to its lowest level since 2002.
On the far side of the Arabian Sea, meanwhile, an upstart competitor has been limbering up. InterGlobe Aviation Ltd. looks to have flown clear of a horror year for India’s aviation industry, posting a fourfold increase in fourth-quarter profit Monday as the collapse of Jet Airways India Ltd. allowed the rest of the industry to bounce back.
Think Emirates just had a bad year? It’s about to get a whole lot worse.
The world’s largest airline by international passengers hit an air pocket in the 12 months through April, with net income falling by more than two-thirds to its lowest level since 2002.
On the far side of the Arabian Sea, meanwhile, an upstart competitor has been limbering up. InterGlobe Aviation Ltd. looks to have flown clear of a horror year for India’s aviation industry, posting a fourfold increase in fourth-quarter profit Monday as the collapse of Jet Airways India Ltd. allowed the rest of the industry to bounce back.
#Saudi Stocks Set to Join MSCI Emerging-Market Benchmarks – Bloomberg
Saudi Stocks Set to Join MSCI Emerging-Market Benchmarks – Bloomberg:
Ahmed Badr, head of equities for the Middle East, North Africa at Credit Suisse, talks about Saudi Arabian stocks. 30 equities from Saudi Arabia will join MSCI Inc.’s emerging-market stock benchmarks as of the close of trading on May 28. Badr speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Ahmed Badr, head of equities for the Middle East, North Africa at Credit Suisse, talks about Saudi Arabian stocks. 30 equities from Saudi Arabia will join MSCI Inc.’s emerging-market stock benchmarks as of the close of trading on May 28. Badr speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Lebanon's Budget Saga Closer to Resolution as Austerity Gets Nod - Bloomberg
Lebanon's Budget Saga Closer to Resolution as Austerity Gets Nod - Bloomberg:
Lebanon’s government approved its 2019 draft budget after months of delays, the latest effort to get the nation’s fiscal house in order despite public anger over cutbacks.
The proposals must now be passed by parliament, where lawmakers might fiercely resist footing the bill for decades of mismanagement of government finances. The budget sets a deficit target of 7.6% of gross domestic product for 2019, down from the current 11.4%, Finance Minister Ali Hassan Khalil said in televised remarks on Monday.
“We can maintain this number and we can improve it,” Khalil said. “We are serious in this, and it will be translated through an injection of new investment projects that will revive the economy.”
Lebanon’s government approved its 2019 draft budget after months of delays, the latest effort to get the nation’s fiscal house in order despite public anger over cutbacks.
The proposals must now be passed by parliament, where lawmakers might fiercely resist footing the bill for decades of mismanagement of government finances. The budget sets a deficit target of 7.6% of gross domestic product for 2019, down from the current 11.4%, Finance Minister Ali Hassan Khalil said in televised remarks on Monday.
“We can maintain this number and we can improve it,” Khalil said. “We are serious in this, and it will be translated through an injection of new investment projects that will revive the economy.”
Bond Demand in Gulf Compared to Stocks Is `Like Mars and Venus' - Bloomberg
Bond Demand in Gulf Compared to Stocks Is `Like Mars and Venus' - Bloomberg:
The Gulf Arab states are proving to be fertile ground for bond investors.
Yield-hungry global funds are plowing into regional bonds at the expense of local stock markets, where liquidity has dwindled following the 2014 oil-price crash. The last initial public offering in the United Arab Emirates was in 2017.
Once debt-averse, the petrostates of the Gulf have pivoted to borrowing to finance ballooning budget deficits. They’ve tried to cut capital spending and slash subsidies -- steps that helped shore up finances but spelled trouble for equity investments as austerity undermined consumer spending and credit growth.
The Gulf Arab states are proving to be fertile ground for bond investors.
Yield-hungry global funds are plowing into regional bonds at the expense of local stock markets, where liquidity has dwindled following the 2014 oil-price crash. The last initial public offering in the United Arab Emirates was in 2017.
Once debt-averse, the petrostates of the Gulf have pivoted to borrowing to finance ballooning budget deficits. They’ve tried to cut capital spending and slash subsidies -- steps that helped shore up finances but spelled trouble for equity investments as austerity undermined consumer spending and credit growth.
'It's time to tell our story': Australia's LNG industry finally fights - Russell - Reuters
'It's time to tell our story': Australia's LNG industry finally fights - Russell - Reuters:
It’s taken a while but Australia’s liquefied natural gas (LNG) industry is putting on the gloves and stepping into the ring against the activists who want to condemn it and all fossil fuels to history’s dustbin.
The central theme of virtually every speech on the opening day of the annual Australian Petroleum Production and Exploration Association (APPEA) conference was that the industry has to fight its corner and not allow environmentalists all the space in the fight for the hearts and minds of the populace.
Australia’s LNG industry is now the largest in the world by capacity, having overtaken Qatar as the last of eight new projects prepares to start up, taking the country’s annual export capacity to more than 80 million tonnes of the super-chilled fuel.
It’s taken a while but Australia’s liquefied natural gas (LNG) industry is putting on the gloves and stepping into the ring against the activists who want to condemn it and all fossil fuels to history’s dustbin.
The central theme of virtually every speech on the opening day of the annual Australian Petroleum Production and Exploration Association (APPEA) conference was that the industry has to fight its corner and not allow environmentalists all the space in the fight for the hearts and minds of the populace.
Australia’s LNG industry is now the largest in the world by capacity, having overtaken Qatar as the last of eight new projects prepares to start up, taking the country’s annual export capacity to more than 80 million tonnes of the super-chilled fuel.
MIDEAST STOCKS- #Saudi gains ahead of MSCI entry while #Qatar rises - Reuters
MIDEAST STOCKS-Saudi gains ahead of MSCI entry while Qatar rises - Reuters:
Saudi Arabia’s stock market rose on Tuesday ahead of its introduction into the MSCI emerging markets index after this session’s close, while Qatar rose sharply as most of its stocks gained.
Saudi’s index rose 0.6% in early trade. Riyad Bank added 1.9% and Al Rajhi Bank increased 0.4%.
MSCI said this month it would include MSCI Saudi Arabia in its emerging-markets index, effective from the close on May 28, a move that could draw billions of dollars into the market.
Saudi Arabia’s stock market rose on Tuesday ahead of its introduction into the MSCI emerging markets index after this session’s close, while Qatar rose sharply as most of its stocks gained.
Saudi’s index rose 0.6% in early trade. Riyad Bank added 1.9% and Al Rajhi Bank increased 0.4%.
MSCI said this month it would include MSCI Saudi Arabia in its emerging-markets index, effective from the close on May 28, a move that could draw billions of dollars into the market.
Asset managers show keener interest in #UAE funds market | ZAWYA MENA Edition
Asset managers show keener interest in UAE funds market | ZAWYA MENA Edition:
Asset managers are gearing up for growth ahead of new rules from the Emirates Securities and Commodities Authority (SCA) and the Insurance Authority (IA) that could change the investment landscape in the UAE.
The IA has signalled it will launch new rules impacting the sale of life insurance investment products, such as commission caps, cooling off periods, and transparency around fees. A third draft of the new rules was released on January 31. It comes following numerous complaints from investors about issues including onerous fees, inflexible contracts with high redemption penalties, fund churn to generate additional commission fees for advisors, and investors buying products they don’t properly understand from advisors who don’t have their best interests at heart.
But there’s expectation that the SCA will also announce that independent financial advisors (IFAs) will have to be licensed by the security authority and be compliant with SCA rules, and will only be able to wrap SCA-registered funds into life insurance products sold, Patrick Oerer, the chief executive officer of Emirates Wealth, a mutual funds distribution platform, said in a phone interview last week. A statement on the regulator’s website earlier this month said it was “studying regulating the transfer of jurisdiction over financial and monetary intermediaries”. The study is being undertaken alongside the UAE Central Bank, it added.
Asset managers are gearing up for growth ahead of new rules from the Emirates Securities and Commodities Authority (SCA) and the Insurance Authority (IA) that could change the investment landscape in the UAE.
The IA has signalled it will launch new rules impacting the sale of life insurance investment products, such as commission caps, cooling off periods, and transparency around fees. A third draft of the new rules was released on January 31. It comes following numerous complaints from investors about issues including onerous fees, inflexible contracts with high redemption penalties, fund churn to generate additional commission fees for advisors, and investors buying products they don’t properly understand from advisors who don’t have their best interests at heart.
But there’s expectation that the SCA will also announce that independent financial advisors (IFAs) will have to be licensed by the security authority and be compliant with SCA rules, and will only be able to wrap SCA-registered funds into life insurance products sold, Patrick Oerer, the chief executive officer of Emirates Wealth, a mutual funds distribution platform, said in a phone interview last week. A statement on the regulator’s website earlier this month said it was “studying regulating the transfer of jurisdiction over financial and monetary intermediaries”. The study is being undertaken alongside the UAE Central Bank, it added.
Oil mixed as China's economy weakens, but OPEC cuts still support crude | ZAWYA MENA Edition
Oil mixed as China's economy weakens, but OPEC cuts still support crude | ZAWYA MENA Edition:
Oil prices were mixed on Tuesday, pressured by a weakening economy, especially in China, yet still supported by ongoing supply cuts from producer club OPEC and U.S. sanctions against Iran and Venezuela.
Front-month Brent crude futures LCOc1 , the international benchmark for oil prices, were at $69.90 at 0106 GMT. That was 21 cents, or 0.3%, below the last session's close, when Brent rose 2.1%.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $59.03 per barrel. They did not trade on Monday due to a public holiday in the United States, but stood 40 cents, or 0.7%, higher than their last close on Friday.
Oil prices were mixed on Tuesday, pressured by a weakening economy, especially in China, yet still supported by ongoing supply cuts from producer club OPEC and U.S. sanctions against Iran and Venezuela.
Front-month Brent crude futures LCOc1 , the international benchmark for oil prices, were at $69.90 at 0106 GMT. That was 21 cents, or 0.3%, below the last session's close, when Brent rose 2.1%.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $59.03 per barrel. They did not trade on Monday due to a public holiday in the United States, but stood 40 cents, or 0.7%, higher than their last close on Friday.
Monday 27 May 2019
Crude Rebounds as Supply Risks Help Offset Trade War Concerns - Bloomberg
Crude Rebounds as Supply Risks Help Offset Trade War Concerns - Bloomberg:
Brent crude rebounded from last week's rout as the outlook for supply disruptions from Iran and Libya help offset concerns that a U.S.-China trade war will sap demand.
Futures rose 2.1% in London, following a 4.9% slump in oil's worst week this year. OPEC meets next month in Vienna to decide on the future of production cuts amid rising tensions between the U.S. and Iran that could endanger a region that’s the source of much of the world’s oil supply. In Libya, strongman Khalifa Haftar said over the weekend that his offensive on Tripoli won’t stop until the country’s militias have been disarmed, risking a renewed blow to the country’s recovering oil output.
“This is a bit of a bounce from the very sharp decline last week,” Bart Melek, head of commodity strategy at Toronto’s TD Securities, said by phone. “OPEC continues to keep supply tight. We will no doubt have geopolitical risk with us as it pertains to Iran and Libya.”
Following the escalating trade dispute that rattled markets last week, U.S. President Donald Trump said Monday that the country isn’t ready to make a deal with China. A drop in Chinese industrial profits for April provided more evidence of the trade war’s impact. Trump also said that he isn’t pursuing regime change in Iran but aims to keep it from developing nuclear weapons, an apparent effort to tamp down tensions.
Brent crude for July rose $1.42 to $70.11 a barrel on London’s ICE Europe Futures. West Texas Intermediate crude gained 61 cents to $59.24 on the New York Mercantile Exchange. It was a public holiday in both the U.S. and the U.K.
Brent crude rebounded from last week's rout as the outlook for supply disruptions from Iran and Libya help offset concerns that a U.S.-China trade war will sap demand.
Futures rose 2.1% in London, following a 4.9% slump in oil's worst week this year. OPEC meets next month in Vienna to decide on the future of production cuts amid rising tensions between the U.S. and Iran that could endanger a region that’s the source of much of the world’s oil supply. In Libya, strongman Khalifa Haftar said over the weekend that his offensive on Tripoli won’t stop until the country’s militias have been disarmed, risking a renewed blow to the country’s recovering oil output.
“This is a bit of a bounce from the very sharp decline last week,” Bart Melek, head of commodity strategy at Toronto’s TD Securities, said by phone. “OPEC continues to keep supply tight. We will no doubt have geopolitical risk with us as it pertains to Iran and Libya.”
Following the escalating trade dispute that rattled markets last week, U.S. President Donald Trump said Monday that the country isn’t ready to make a deal with China. A drop in Chinese industrial profits for April provided more evidence of the trade war’s impact. Trump also said that he isn’t pursuing regime change in Iran but aims to keep it from developing nuclear weapons, an apparent effort to tamp down tensions.
Brent crude for July rose $1.42 to $70.11 a barrel on London’s ICE Europe Futures. West Texas Intermediate crude gained 61 cents to $59.24 on the New York Mercantile Exchange. It was a public holiday in both the U.S. and the U.K.
#Saudi Miner Said to Weigh World's Biggest Rights Issue in a Year - Bloomberg
Saudi Miner Said to Weigh World's Biggest Rights Issue in a Year - Bloomberg:
Saudi Arabian Mining Co. is weighing a plan to raise as much as $5 billion through a rights offering that could be the biggest since mid-2018, according to people with knowledge of the matter. The shares slumped.
The company, also known as Maaden, is working with HSBC Holdings Plc’s Saudi Arabia unit on the possible offering that could happen later this year, some of the people said, asking not to be identified because the information is private. The size of the rights issue hasn’t been finalized and could end up being smaller, they said.
The Public Investment Fund, which owns a 65% stake in the mining firm, would also participate in the rights issue through a debt-for-equity swap and exchange its loans to Maaden subsidiaries into equity, the people said.
Saudi Arabian Mining Co. is weighing a plan to raise as much as $5 billion through a rights offering that could be the biggest since mid-2018, according to people with knowledge of the matter. The shares slumped.
The company, also known as Maaden, is working with HSBC Holdings Plc’s Saudi Arabia unit on the possible offering that could happen later this year, some of the people said, asking not to be identified because the information is private. The size of the rights issue hasn’t been finalized and could end up being smaller, they said.
The Public Investment Fund, which owns a 65% stake in the mining firm, would also participate in the rights issue through a debt-for-equity swap and exchange its loans to Maaden subsidiaries into equity, the people said.
ENOC targets 124 new service stations in #SaudiArabia | ZAWYA MENA Edition
ENOC targets 124 new service stations in Saudi Arabia | ZAWYA MENA Edition:
Enoc Group, a wholly-owned entity of the Government of Dubai, will increase its service station network by more than eight fold by 2030 to reach 124 stations to meet the growing fuel station demand in Saudi Arabia.
The new service stations will be strategically spread across different locations across the Kingdom covering east, west and central regions, with the objective of boosting the quality of infrastructure to bring last mile connectivity, especially for the rural parts of the country.
Over the next five years, Enoc plans to open 45 new service stations. From 2024 to 2028, the Group plans to further expand its retail operations across the Kingdom by opening 65 new Enoc stations. All upcoming service stations in the Kingdom will have provisions for solar PV panels to be installed on the roof of the canopy.
Enoc Group, a wholly-owned entity of the Government of Dubai, will increase its service station network by more than eight fold by 2030 to reach 124 stations to meet the growing fuel station demand in Saudi Arabia.
The new service stations will be strategically spread across different locations across the Kingdom covering east, west and central regions, with the objective of boosting the quality of infrastructure to bring last mile connectivity, especially for the rural parts of the country.
Over the next five years, Enoc plans to open 45 new service stations. From 2024 to 2028, the Group plans to further expand its retail operations across the Kingdom by opening 65 new Enoc stations. All upcoming service stations in the Kingdom will have provisions for solar PV panels to be installed on the roof of the canopy.
Oil rises to $69 as Mideast tension and supply cuts offset trade concerns - Reuters
Oil rises to $69 as Mideast tension and supply cuts offset trade concerns - Reuters:
Oil rose to about $69 a barrel on Monday, supported by Middle East tensions and OPEC-led supply cuts, though concern over the U.S.-China trade dispute and global economy capped gains.
Supply cuts - both voluntary by the Organization of the Petroleum Exporting Countries (OPEC) and allies, plus those resulting from U.S. sanctions - have helped Brent crude, the global benchmark, rise by about 29 percent this year.
Brent was up 33 cents at $69.02 a barrel by 1334 GMT, having fallen by about 4.5% last week. U.S. West Texas Intermediate crude was down 30 cents at $58.33.
Oil rose to about $69 a barrel on Monday, supported by Middle East tensions and OPEC-led supply cuts, though concern over the U.S.-China trade dispute and global economy capped gains.
Supply cuts - both voluntary by the Organization of the Petroleum Exporting Countries (OPEC) and allies, plus those resulting from U.S. sanctions - have helped Brent crude, the global benchmark, rise by about 29 percent this year.
Brent was up 33 cents at $69.02 a barrel by 1334 GMT, having fallen by about 4.5% last week. U.S. West Texas Intermediate crude was down 30 cents at $58.33.
#SaudiArabia's Napco National plans float, picks Saudi Fransi to advise-sources - Reuters
Saudi Arabia's Napco National plans float, picks Saudi Fransi to advise-sources - Reuters:
Saudi Arabia-based home disposables manufacturer Napco National is planning a potential public share sale and has hired the investment banking arm of Banque Saudi Fransi to advise on the deal, sources told Reuters.
Based in Dammam, Napco National produces paper and hygiene products like facial tissues, feminine napkins and adult and child diapers.
The company is working with Saudi Fransi Capital on an initial public offering (IPO) that could take place at the end of this year or next, said the sources who declined to be named due to commercial sensitivities.
Saudi Arabia-based home disposables manufacturer Napco National is planning a potential public share sale and has hired the investment banking arm of Banque Saudi Fransi to advise on the deal, sources told Reuters.
Based in Dammam, Napco National produces paper and hygiene products like facial tissues, feminine napkins and adult and child diapers.
The company is working with Saudi Fransi Capital on an initial public offering (IPO) that could take place at the end of this year or next, said the sources who declined to be named due to commercial sensitivities.
MIDEAST STOCKS- #Qatar, #Saudi rise on financials; Property drags #Dubai - Reuters
MIDEAST STOCKS-Qatar, Saudi rise on financials; Property drags Dubai - Reuters:
Qatar and Saudi Arabia's stock markets
rose on Monday, helped by financial companies, while Dubai's was
pressured by the real estate sector.
Qatar's index rose 0.9% as banks gained. Qatar
Islamic Bank surged 8.7% and the Middle East's biggest
lender, Qatar National Bank, added 2.2%.
Qatar's stock exchange is developing two new Exchange Traded
Funds, part of efforts by the Middle East's strongest performing
stock market in 2018 to boost foreign investment, Reuters
reported last week, citing CEO Rashid al-Mansoori.
Qatar and Saudi Arabia's stock markets
rose on Monday, helped by financial companies, while Dubai's was
pressured by the real estate sector.
Qatar's index rose 0.9% as banks gained. Qatar
Islamic Bank surged 8.7% and the Middle East's biggest
lender, Qatar National Bank, added 2.2%.
Qatar's stock exchange is developing two new Exchange Traded
Funds, part of efforts by the Middle East's strongest performing
stock market in 2018 to boost foreign investment, Reuters
reported last week, citing CEO Rashid al-Mansoori.
#Kuwait oil minister sees balanced oil market towards end 2019 | ZAWYA MENA Edition
Kuwait oil minister sees balanced oil market towards end 2019 | ZAWYA MENA Edition:
The oil market is expected to be in balance towards the end of 2019, as global inventories fall and demand remains strong, but OPEC's job is not done yet, Kuwait's oil minister told Reuters.
There are still uncertainties around oil demand growth due to concerns about the impact of the U.S./China trade dispute on global economy, while U.S. shale oil production is still rising, Khaled al-Fadhel said on Monday.
This uncertain outlook is making it tough for OPEC and its allies to have a clear oil supply plan for the second half of the year. Fadhel said it was too early to say now if the oil producers will extend their current output targets after June.
The oil market is expected to be in balance towards the end of 2019, as global inventories fall and demand remains strong, but OPEC's job is not done yet, Kuwait's oil minister told Reuters.
There are still uncertainties around oil demand growth due to concerns about the impact of the U.S./China trade dispute on global economy, while U.S. shale oil production is still rising, Khaled al-Fadhel said on Monday.
This uncertain outlook is making it tough for OPEC and its allies to have a clear oil supply plan for the second half of the year. Fadhel said it was too early to say now if the oil producers will extend their current output targets after June.
Small shale companies under pressure, says Fed official | Financial Times
Small shale companies under pressure, says Fed official | Financial Times:
Independent shale drillers in the US are facing pressure to either expand or be acquired, Robert Kaplan, president of the Federal Reserve Bank of Dallas, has said.
Despite the classic “wildcatting” image of plucky entrepreneurs trying their luck, smaller, independent drillers are losing access to capital and hearing complaints from shareholders, he said in an interview with the Financial Times.
Mr Kaplan’s comments come less than two weeks after Occidental Petroleum agreed to acquire rival Anadarko Petroleum, one of the largest US independent oil and gas groups, for $56bn.
Independent shale drillers in the US are facing pressure to either expand or be acquired, Robert Kaplan, president of the Federal Reserve Bank of Dallas, has said.
Despite the classic “wildcatting” image of plucky entrepreneurs trying their luck, smaller, independent drillers are losing access to capital and hearing complaints from shareholders, he said in an interview with the Financial Times.
Mr Kaplan’s comments come less than two weeks after Occidental Petroleum agreed to acquire rival Anadarko Petroleum, one of the largest US independent oil and gas groups, for $56bn.
Qatari sovereign wealth fund takes £200m stake in Severn Trent | Financial Times
Qatari sovereign wealth fund takes £200m stake in Severn Trent | Financial Times:
Qatar’s sovereign wealth fund has taken a £200m stake in Severn Trent, one of the UK’s biggest water companies.
Severn Trent is among the largest of the UK’s 10 regional water supply and sewerage monopolies, serving about 8m people in Birmingham, Gloucester and the Bristol Channel area. It is one of three water companies listed on the London Stock Exchange, while the others are owned mostly by overseas investors, including sovereign wealth and private equity funds.
The opposition Labour party has set out plans to renationalise UK water companies should it win a general election. Shadow chancellor John McDonnell has said a Labour government would pay less than £15bn to investors when it renationalises the industry, compared with an estimated £44bn market value of their investments.
Qatar’s sovereign wealth fund has taken a £200m stake in Severn Trent, one of the UK’s biggest water companies.
Severn Trent is among the largest of the UK’s 10 regional water supply and sewerage monopolies, serving about 8m people in Birmingham, Gloucester and the Bristol Channel area. It is one of three water companies listed on the London Stock Exchange, while the others are owned mostly by overseas investors, including sovereign wealth and private equity funds.
The opposition Labour party has set out plans to renationalise UK water companies should it win a general election. Shadow chancellor John McDonnell has said a Labour government would pay less than £15bn to investors when it renationalises the industry, compared with an estimated £44bn market value of their investments.
#UAE's Gulf Capital eyes acquisitions, plans new fund - CEO - Reuters
UAE's Gulf Capital eyes acquisitions, plans new fund - CEO - Reuters:
Gulf Capital said on Monday it had bought a majority stake in health aesthetics firm Medica Holding and was looking for more acquisitions in the Middle East, Africa and Southeast Asia.
United Arab Emirates-based private equity firm Gulf Capital bought a 70 percent stake in Medica, which provides aesthetics, cosmetics and dermatology equipment and products in the Middle East. It did not disclose the deal value.
“We are willing to fund any bolt-on acquisitions. We are looking at two acquisitions in the Gulf, a joint venture in Africa and also in southeast Asia,” Karim el Solh, chief executive of Gulf Capital, told Reuters.
Gulf Capital said on Monday it had bought a majority stake in health aesthetics firm Medica Holding and was looking for more acquisitions in the Middle East, Africa and Southeast Asia.
United Arab Emirates-based private equity firm Gulf Capital bought a 70 percent stake in Medica, which provides aesthetics, cosmetics and dermatology equipment and products in the Middle East. It did not disclose the deal value.
“We are willing to fund any bolt-on acquisitions. We are looking at two acquisitions in the Gulf, a joint venture in Africa and also in southeast Asia,” Karim el Solh, chief executive of Gulf Capital, told Reuters.
#Qatar Petroleum awards pipelines design contract for North Field project - Reuters
Qatar Petroleum awards pipelines design contract for North Field project - Reuters:
Qatar Petroleum awarded McDermott Middle East Inc. an engineering and design contract for pipelines and other facilities in the project to expand the offshore North Field, the energy firm said on Monday.
The contract is a front end engineering design (FEED) contract, the Qatari firm said in an emailed statement.
Qatar Petroleum awarded McDermott Middle East Inc. an engineering and design contract for pipelines and other facilities in the project to expand the offshore North Field, the energy firm said on Monday.
The contract is a front end engineering design (FEED) contract, the Qatari firm said in an emailed statement.
MIDEAST STOCKS- #Saudi slips in wider Gulf falls ahead of holiday - Reuters
MIDEAST STOCKS-Saudi slips in wider Gulf falls ahead of holiday - Reuters:
Saudi Arabian stocks were weighed down by falls in financial shares on Monday as Gulf markets slipped ahead of Eid al-Fitr.
Many investors prefer to cash in holdings ahead of the Eid holiday, which lasts for a week in Saudi Arabia and at least three days in other Gulf countries.
Saudi’s stock index was down 0.3%, with market heavyweight Al Rajhi Bank shedding 0.9% and Samba Financial Group dropping 2%, while Arabian Centres dipped 1.9%. The mall operator’s stock has fallen in all four sessions since its listing on May 22.
Saudi Arabian stocks were weighed down by falls in financial shares on Monday as Gulf markets slipped ahead of Eid al-Fitr.
Many investors prefer to cash in holdings ahead of the Eid holiday, which lasts for a week in Saudi Arabia and at least three days in other Gulf countries.
Saudi’s stock index was down 0.3%, with market heavyweight Al Rajhi Bank shedding 0.9% and Samba Financial Group dropping 2%, while Arabian Centres dipped 1.9%. The mall operator’s stock has fallen in all four sessions since its listing on May 22.
Trump Says He's Not Looking to Topple Iranian Leadership - Bloomberg
Trump Says He's Not Looking to Topple Iranian Leadership - Bloomberg:
U.S. President Donald Trump said he isn’t pursuing regime change in Iran and his main goal is to ensure the Gulf country won’t develop nuclear weapons.
Iran “has a chance to be a great country with the same leadership,’’ Trump said at a joint press conference in Tokyo on Monday alongside Japanese Prime Minister Shinzo Abe. “We are not looking for regime change. I just want to make that clear.’’
Iranian officials have said that the raft of U.S. sanctions against their country, which was tightened last month, is aimed at fueling popular dissent in an effort to topple the leadership.
U.S. President Donald Trump said he isn’t pursuing regime change in Iran and his main goal is to ensure the Gulf country won’t develop nuclear weapons.
Iran “has a chance to be a great country with the same leadership,’’ Trump said at a joint press conference in Tokyo on Monday alongside Japanese Prime Minister Shinzo Abe. “We are not looking for regime change. I just want to make that clear.’’
Iranian officials have said that the raft of U.S. sanctions against their country, which was tightened last month, is aimed at fueling popular dissent in an effort to topple the leadership.
BoAML Sees Valuation Concerns in #Saudi Stock Market – Bloomberg
BoAML Sees Valuation Concerns in Saudi Stock Market – Bloomberg:
Hootan Yazhari, head of MENA and global frontier markets at Bank of America Merrill Lynch, talks about Saudi Arabian stocks and bonds. He speaks on "Bloomberg Daybreak: MIddle East." (Source: Bloomberg)
Hootan Yazhari, head of MENA and global frontier markets at Bank of America Merrill Lynch, talks about Saudi Arabian stocks and bonds. He speaks on "Bloomberg Daybreak: MIddle East." (Source: Bloomberg)
Oil Holds Gain as U.S. Rigs Data Gives Respite From Trade Gloom - Bloomberg
Oil Holds Gain as U.S. Rigs Data Gives Respite From Trade Gloom - Bloomberg:
Oil held gains above $58 a barrel after American explorers reduced drilling activity to the least in more than a year, providing some respite from a demand outlook thrown into doubt by the U.S.-China trade war.
Futures in New York edged lower after closing up 1.2% on Friday. Working U.S. rigs fell for the fifth time in six weeks to reach the lowest level since March 2018, according to Baker Hughes data released Friday. As tensions with China simmer, President Donald Trump is in Tokyo to try and reach a deal after the White House threatened to raise tariffs on Japanese cars.
Oil posted its biggest loss of the year last week -- including a 5.7% drop on Thursday -- as the intensifying trade war caused investors to reassess their outlook for the global economy. Even before the plunge, money managers had reduced bullish bets on West Texas Intermediate to the lowest in two months. Meanwhile, the situation in the Middle East remained tense but didn’t worsen, allaying fears that crude shipments would be disrupted.
Oil held gains above $58 a barrel after American explorers reduced drilling activity to the least in more than a year, providing some respite from a demand outlook thrown into doubt by the U.S.-China trade war.
Futures in New York edged lower after closing up 1.2% on Friday. Working U.S. rigs fell for the fifth time in six weeks to reach the lowest level since March 2018, according to Baker Hughes data released Friday. As tensions with China simmer, President Donald Trump is in Tokyo to try and reach a deal after the White House threatened to raise tariffs on Japanese cars.
Oil posted its biggest loss of the year last week -- including a 5.7% drop on Thursday -- as the intensifying trade war caused investors to reassess their outlook for the global economy. Even before the plunge, money managers had reduced bullish bets on West Texas Intermediate to the lowest in two months. Meanwhile, the situation in the Middle East remained tense but didn’t worsen, allaying fears that crude shipments would be disrupted.
Gulf's Weakest Links See Cost of Money Rise With Political Risk - Bloomberg
Gulf's Weakest Links See Cost of Money Rise With Political Risk - Bloomberg:
Bahrain and Oman may have missed a golden opportunity to lock in cheap foreign financing.
Ever since tensions between Iran and its Arab neighbors began boiling over this month, the countries’ bonds have been leading losses across the six-nation Gulf Cooperation Council. The sell-off is unwinding gains that pushed the yield on Bahrain’s 10-year dollar debt to an all-time low in April, and that on Oman’s equivalent note to a six-month low earlier in May.
If the rout has legs, the higher borrowing costs could strain the nations’ public finances, already considered the weakest in the region. Oman risks slipping deeper into junk-level credit ratings, while Bahrain’s ability to eliminate a budget deficit remains a challenge, according to S&P Global Ratings. The island kingdom plans to return to international bond markets this year for the first time since its Gulf allies pledged a $10 billion aid package.
Bahrain and Oman may have missed a golden opportunity to lock in cheap foreign financing.
Ever since tensions between Iran and its Arab neighbors began boiling over this month, the countries’ bonds have been leading losses across the six-nation Gulf Cooperation Council. The sell-off is unwinding gains that pushed the yield on Bahrain’s 10-year dollar debt to an all-time low in April, and that on Oman’s equivalent note to a six-month low earlier in May.
If the rout has legs, the higher borrowing costs could strain the nations’ public finances, already considered the weakest in the region. Oman risks slipping deeper into junk-level credit ratings, while Bahrain’s ability to eliminate a budget deficit remains a challenge, according to S&P Global Ratings. The island kingdom plans to return to international bond markets this year for the first time since its Gulf allies pledged a $10 billion aid package.
#Saudi Maaden Said to Weigh Rights Issue of as Much as $5 Billion - Bloomberg
Saudi Maaden Said to Weigh Rights Issue of as Much as $5 Billion - Bloomberg:
Saudi Arabian Mining Co. is weighing a plan to raise as much as $5 billion through a rights offering to finance potential acquisitions, according to people with knowledge of the matter.
The company, also known as Maaden, is working with HSBC Holdings Plc’s Saudi Arabia unit on the possible offering that could happen later this year, some of the people said, asking not to be identified because the information is private. The size of the rights issue hasn’t been finalized and could end up being smaller than $5 billion, they said.
The Public Investment Fund, which owns a 65% stake in the mining firm, would also participate in the rights issue through a debt-for-equity swap and exchange its loans to Maaden subsidiaries into equity, the people said.
Saudi Arabian Mining Co. is weighing a plan to raise as much as $5 billion through a rights offering to finance potential acquisitions, according to people with knowledge of the matter.
The company, also known as Maaden, is working with HSBC Holdings Plc’s Saudi Arabia unit on the possible offering that could happen later this year, some of the people said, asking not to be identified because the information is private. The size of the rights issue hasn’t been finalized and could end up being smaller than $5 billion, they said.
The Public Investment Fund, which owns a 65% stake in the mining firm, would also participate in the rights issue through a debt-for-equity swap and exchange its loans to Maaden subsidiaries into equity, the people said.
Sunday 26 May 2019
#Qatar in talks to buy stake in Leeds United | Financial Times
Qatar in talks to buy stake in Leeds United | Financial Times:
Qatar is in talks to buy a stake in Leeds United in a deal that would allow the gas-rich Gulf state to enter English football for the first time, according to people with direct knowledge of the negotiations.
Qatar Sports Investments, a state-backed group which controls France’s Paris Saint-Germain, has been in talks over a deal with Leeds United and its owner Andrea Radrizzani in recent months, these people said.
A person familiar with the talks said Qatar was seeking a controlling stake in Leeds United, which plays in the Championship, the second tier of English professional football, and narrowly missed promotion into the Premier League this season.
Qatar is in talks to buy a stake in Leeds United in a deal that would allow the gas-rich Gulf state to enter English football for the first time, according to people with direct knowledge of the negotiations.
Qatar Sports Investments, a state-backed group which controls France’s Paris Saint-Germain, has been in talks over a deal with Leeds United and its owner Andrea Radrizzani in recent months, these people said.
A person familiar with the talks said Qatar was seeking a controlling stake in Leeds United, which plays in the Championship, the second tier of English professional football, and narrowly missed promotion into the Premier League this season.
Finablr to spend $200mln of IPO money on expansion - CEO | ZAWYA MENA Edition
Finablr to spend $200mln of IPO money on expansion - CEO | ZAWYA MENA Edition:
Payments and foreign exchange company Finablr plans to use half of the proceeds from its share sale in London earlier this month to expand both organically and via acquisitions, its chief executive said on Sunday.
The United Arab Emirates-based company, whose brands include UAE Exchange, Travelex Holdings and Xpress Money, raised $400 million in an initial public offering on the London Stock Exchange. Half of that amount was raised selling new shares.
"This money will strengthen our balance sheet and give us more fire power to execute our expansion strategy," Promoth Manghat told Reuters.
Payments and foreign exchange company Finablr plans to use half of the proceeds from its share sale in London earlier this month to expand both organically and via acquisitions, its chief executive said on Sunday.
The United Arab Emirates-based company, whose brands include UAE Exchange, Travelex Holdings and Xpress Money, raised $400 million in an initial public offering on the London Stock Exchange. Half of that amount was raised selling new shares.
"This money will strengthen our balance sheet and give us more fire power to execute our expansion strategy," Promoth Manghat told Reuters.
#Kuwait's KIPCO has no imminent issuance plans after upgrading bond programme | ZAWYA MENA Edition
Kuwait's KIPCO has no imminent issuance plans after upgrading bond programme | ZAWYA MENA Edition:
Kuwait Projects Co (KIPCO), the Gulf state's largest listed investment company, has no imminent plans to issue U.S. dollar-denominated bonds but will keep monitoring the market closely, said a company executive.
KIPCO last week updated its bond programme, under which it may issue bonds worth up to $3 billion.
HSBC has been hired as arranger and dealer for the programme, with other dealers including Emirates NBD Capital, First Abu Dhabi Bank, JPMorgan, KAMCO Investment Company and MUFG.
Kuwait Projects Co (KIPCO), the Gulf state's largest listed investment company, has no imminent plans to issue U.S. dollar-denominated bonds but will keep monitoring the market closely, said a company executive.
KIPCO last week updated its bond programme, under which it may issue bonds worth up to $3 billion.
HSBC has been hired as arranger and dealer for the programme, with other dealers including Emirates NBD Capital, First Abu Dhabi Bank, JPMorgan, KAMCO Investment Company and MUFG.
#Dubai's Emaar Properties hires StanChart for sale of district cooling unit -sources - Reuters
Dubai's Emaar Properties hires StanChart for sale of district cooling unit -sources - Reuters:
Dubai’s Emaar Properties has hired advisors including Standard Chartered for the sale of its district cooling business, sources familiar with the matter told Reuters.
Emaar was not immediately available to comment when contacted by Reuters on Sunday, while Standard Chartered declined to comment.
The developer of the world’s tallest skyscraper, the Burj Khalifa, last year hired the London-headquartered bank for the sale of five hospitality assets, which were sold to Abu Dhabi National Hotels.
Dubai’s Emaar Properties has hired advisors including Standard Chartered for the sale of its district cooling business, sources familiar with the matter told Reuters.
Emaar was not immediately available to comment when contacted by Reuters on Sunday, while Standard Chartered declined to comment.
The developer of the world’s tallest skyscraper, the Burj Khalifa, last year hired the London-headquartered bank for the sale of five hospitality assets, which were sold to Abu Dhabi National Hotels.
#Iran Deputy FM discusses regional development in #Oman - Reuters
Iran Deputy FM discusses regional development in Oman - Reuters:
Iranian Deputy Foreign Minister Abbas Araqchi arrived on Sunday in Oman and discussed “regional developments” with Yousuf bin Alawi bin Abdullah, the sultanate’s minister responsible for foreign affairs, the state-run Oman News Agency reported.
Bin Alawi said earlier this week that his country is trying “with other parties” to calm tensions between the United States and Iran.
Iranian Deputy Foreign Minister Abbas Araqchi arrived on Sunday in Oman and discussed “regional developments” with Yousuf bin Alawi bin Abdullah, the sultanate’s minister responsible for foreign affairs, the state-run Oman News Agency reported.
Bin Alawi said earlier this week that his country is trying “with other parties” to calm tensions between the United States and Iran.
China's East Hope Group considers $10 billion investment in #UAE - Reuters
China's East Hope Group considers $10 billion investment in UAE - Reuters:
China’s East Hope Group is evaluating plans to invest $10 billion in an industrial zone in the United Arab Emirates, joining other Chinese companies, seeking a slice of China’s Belt and Road initiative.
Chinese companies are increasingly seizing opportunities in the Gulf, expanding overseas in line with the investment policy championed by Chinese President Xi Jinping.
Shanghai-based manufacturing giant East Hope is working with the Khalifa Industrial Zone Abu Dhabi (Kizad) to develop industries over 15 years in a three-phase plan, a statement from Kizad said on Sunday.
China’s East Hope Group is evaluating plans to invest $10 billion in an industrial zone in the United Arab Emirates, joining other Chinese companies, seeking a slice of China’s Belt and Road initiative.
Chinese companies are increasingly seizing opportunities in the Gulf, expanding overseas in line with the investment policy championed by Chinese President Xi Jinping.
Shanghai-based manufacturing giant East Hope is working with the Khalifa Industrial Zone Abu Dhabi (Kizad) to develop industries over 15 years in a three-phase plan, a statement from Kizad said on Sunday.
MIDEAST STOCKS-Financials weigh on #Saudi, blue chips gain in Egypt - Reuters
MIDEAST STOCKS-Financials weigh on Saudi, blue chips gain in Egypt - Reuters:
Saudi Arabia's stock market fell
sharply on Sunday, dragged down by the financial and
petrochemical sectors, while Egypt's blue chips gained.
Saudi's index dropped 2%, with Saudi British Bank
(SABB) falling 3.5%, Samba Financial Group,
the Kingdom's third-largest bank by assets, shedding 3.4%, and
National Commercial Bank, the country's largest
lender, 3.3%.
Saudi International Petrochemical Co (Sipchem)
lost 4.2% and petrochemical giant Saudi Basic Industries
Corporation (SABIC) shed 2.4%.
Saudi Arabia's stock market fell
sharply on Sunday, dragged down by the financial and
petrochemical sectors, while Egypt's blue chips gained.
Saudi's index dropped 2%, with Saudi British Bank
(SABB) falling 3.5%, Samba Financial Group,
the Kingdom's third-largest bank by assets, shedding 3.4%, and
National Commercial Bank, the country's largest
lender, 3.3%.
Saudi International Petrochemical Co (Sipchem)
lost 4.2% and petrochemical giant Saudi Basic Industries
Corporation (SABIC) shed 2.4%.
What Are Frontier Markets and Why Invest in Them?: QuickTake - Bloomberg
What Are Frontier Markets and Why Invest in Them?: QuickTake - Bloomberg:
If emerging markets are the wild child of the investment family, offering potentially higher rewards in return for greater risk, then what about their smaller sibling, frontier markets? These include countries such as Sri Lanka, Kazakhstan and Nigeria where stock exchanges and currency markets are too small or underdeveloped to be classified as emerging markets. While frontier markets may bring investors more exotic thrills, and spills, they also somewhat counterintuitively can be a safe haven when markets are rocky.
1. What are frontier markets?
In the investing hierarchy, they are the bottom rung of three. At the top are developed markets (such as the U.S. and U.K.), in the middle are emerging markets (such as China and Russia). The denomination is not so much a judgment on a country’s wealth or stage of development as about its markets. Depending on who’s doing the classifying, there are around 30 frontier markets, mostly in the Middle East, South Asia, Africa and Eastern Europe.
If emerging markets are the wild child of the investment family, offering potentially higher rewards in return for greater risk, then what about their smaller sibling, frontier markets? These include countries such as Sri Lanka, Kazakhstan and Nigeria where stock exchanges and currency markets are too small or underdeveloped to be classified as emerging markets. While frontier markets may bring investors more exotic thrills, and spills, they also somewhat counterintuitively can be a safe haven when markets are rocky.
1. What are frontier markets?
In the investing hierarchy, they are the bottom rung of three. At the top are developed markets (such as the U.S. and U.K.), in the middle are emerging markets (such as China and Russia). The denomination is not so much a judgment on a country’s wealth or stage of development as about its markets. Depending on who’s doing the classifying, there are around 30 frontier markets, mostly in the Middle East, South Asia, Africa and Eastern Europe.
#Saudi Stock Euphoria Is Unwinding as the End of Catalyst Nears - Bloomberg
Saudi Stock Euphoria Is Unwinding as the End of Catalyst Nears - Bloomberg:
This week could mark the beginning of the end for the biggest equities play in Middle Eastern markets: the upgrade of Saudi Arabia to emerging-markets gauges.
As index compiler MSCI Inc. starts adding Saudi stocks to its EM benchmark as of the close of May 28, passive flows are expected to flock to Riyadh. But many active traders are already focusing on expensive valuations, falling earnings estimates and geopolitics.
The main Saudi index is heading for its biggest monthly drop since January 2016, indicating a rally anticipating the event may be losing steam. MSCI moves on to the second stage of the addition in August, while FTSE Russell finishes its own upgrade next year.
This week could mark the beginning of the end for the biggest equities play in Middle Eastern markets: the upgrade of Saudi Arabia to emerging-markets gauges.
As index compiler MSCI Inc. starts adding Saudi stocks to its EM benchmark as of the close of May 28, passive flows are expected to flock to Riyadh. But many active traders are already focusing on expensive valuations, falling earnings estimates and geopolitics.
The main Saudi index is heading for its biggest monthly drop since January 2016, indicating a rally anticipating the event may be losing steam. MSCI moves on to the second stage of the addition in August, while FTSE Russell finishes its own upgrade next year.
#Oman outlook: Sovereign debt continues to climb as pace of change remains slow | ZAWYA MENA Edition
Oman outlook: Sovereign debt continues to climb as pace of change remains slow | ZAWYA MENA Edition:
Illuminated in an eerie blue light as they float past coral, the fish swimming around Muscat's newest visitor attraction may not be enough to reel in the punters and steer Oman's floundering economy away from the rocks.
For the tourists frequenting the vast Oman Aquarium which opened in April, even the presence of diving turtles and penguins cannot disguise the fact that many of the shops in the surrounding Mall of Muscat remain boarded up.
Property brokers say that many retailers are waiting to see how difficult trading conditions, driven by a sluggish economy and declining expat population pan out this year before taking the plunge.
Illuminated in an eerie blue light as they float past coral, the fish swimming around Muscat's newest visitor attraction may not be enough to reel in the punters and steer Oman's floundering economy away from the rocks.
For the tourists frequenting the vast Oman Aquarium which opened in April, even the presence of diving turtles and penguins cannot disguise the fact that many of the shops in the surrounding Mall of Muscat remain boarded up.
Property brokers say that many retailers are waiting to see how difficult trading conditions, driven by a sluggish economy and declining expat population pan out this year before taking the plunge.
Mideast Stocks - #Saudi index falls on profit taking, other markets mixed | ZAWYA MENA Edition
Mideast Stocks - Saudi index falls on profit taking, other markets mixed | ZAWYA MENA Edition:
The Saudi market slipped early on Sunday, while other Gulf markets were mixed, as investors monitored geopolitical tensions in the region and some liquidated positions ahead of a long public holiday next week.
Saudi Arabia's King Salman will host two emergency summits on May 30 for Gulf and Arab leaders to discuss the implications of attacks against the kingdom and neighbouring United Arab Emirates earlier this month.
Riyadh has accused Tehran of ordering the recent drone strikes on two oil pumping stations in the kingdom, claimed by Yemen’s Iran-aligned Houthi group. The attack came two days after four vessels, including two Saudi oil tankers, were sabotaged off the coast of the United Arab Emirates. Iran has denied the claims.
The Saudi market slipped early on Sunday, while other Gulf markets were mixed, as investors monitored geopolitical tensions in the region and some liquidated positions ahead of a long public holiday next week.
Saudi Arabia's King Salman will host two emergency summits on May 30 for Gulf and Arab leaders to discuss the implications of attacks against the kingdom and neighbouring United Arab Emirates earlier this month.
Riyadh has accused Tehran of ordering the recent drone strikes on two oil pumping stations in the kingdom, claimed by Yemen’s Iran-aligned Houthi group. The attack came two days after four vessels, including two Saudi oil tankers, were sabotaged off the coast of the United Arab Emirates. Iran has denied the claims.
Saturday 25 May 2019
#Qatar says economic conditions for Israeli-Palestinian peace require 'fair political solutions' - Reuters
Qatar says economic conditions for Israeli-Palestinian peace require 'fair political solutions' - Reuters:
Qatar said on Friday that economic development needed for Israeli-Palestinian peace could not be achieved without “fair political solutions” acceptable to Palestinians, referring to a U.S. plan set to be unveiled next month.
The White House will lay out the first part of President Donald Trump’s long-awaited Israeli-Palestinian peace plan when it holds an international conference in Bahrain in late June.
The plan, touted by Trump as the “deal of the century,” is expected to encourage investment in the West Bank and Gaza Strip by Arab donor countries before grappling with thorny political issues at the heart of the conflict.
Qatar said on Friday that economic development needed for Israeli-Palestinian peace could not be achieved without “fair political solutions” acceptable to Palestinians, referring to a U.S. plan set to be unveiled next month.
The White House will lay out the first part of President Donald Trump’s long-awaited Israeli-Palestinian peace plan when it holds an international conference in Bahrain in late June.
The plan, touted by Trump as the “deal of the century,” is expected to encourage investment in the West Bank and Gaza Strip by Arab donor countries before grappling with thorny political issues at the heart of the conflict.
Trump Bypasses Congress Over #Saudi Arms, Sparking Lawmakers' Ire - Bloomberg
Trump Bypasses Congress Over Saudi Arms, Sparking Lawmakers' Ire - Bloomberg:
The Trump administration is bypassing Congress to approve the sale of more than $2 billion in weapons to Saudi Arabia, citing a rarely used provision in the Arms Export Control Act despite bipartisan objections by lawmakers.
The provision lets President Donald Trump circumvent the normal process for congressional approval by declaring an emergency that requires the sales to go through immediately “in the national security interests of the United States.” Secretary of State Michael Pompeo cited the threat from Iran as justification, but said in a later statement that he viewed the decision “to be a one-time event.” Lawmakers were upset regardless.
“I am disappointed, but not surprised, that the Trump administration has failed once again to prioritize our long term national security interests or stand up for human rights, and instead is granting favors to authoritarian countries like Saudi Arabia,” Senator Bob Menendez of New Jersey, the top Democrat on the Senate Foreign Relations Committee, said in a statement Friday.
The Trump administration is bypassing Congress to approve the sale of more than $2 billion in weapons to Saudi Arabia, citing a rarely used provision in the Arms Export Control Act despite bipartisan objections by lawmakers.
The provision lets President Donald Trump circumvent the normal process for congressional approval by declaring an emergency that requires the sales to go through immediately “in the national security interests of the United States.” Secretary of State Michael Pompeo cited the threat from Iran as justification, but said in a later statement that he viewed the decision “to be a one-time event.” Lawmakers were upset regardless.
“I am disappointed, but not surprised, that the Trump administration has failed once again to prioritize our long term national security interests or stand up for human rights, and instead is granting favors to authoritarian countries like Saudi Arabia,” Senator Bob Menendez of New Jersey, the top Democrat on the Senate Foreign Relations Committee, said in a statement Friday.
Friday 24 May 2019
Donald Trump bypasses Congress on #Saudi, #UAE arms sales | Financial Times
Donald Trump bypasses Congress on Saudi, UAE arms sales | Financial Times:
The Trump administration has formally notified US lawmakers that it is invoking an emergency provision to go ahead with multibillion-dollar arms sales to Saudi Arabia and the United Arab Emirates without congressional approval.
The emergency provision, part of the Arms Export Control act, would allow the US to proceed with sales of planned precision bombs to those two countries, without fear of Congress blocking the measure.
However, the move is likely to inflame tensions between President Donald Trump and Congress, where members of both parties have criticised the president for not taking a harsher stance on Saudi Arabia in the wake of the killing of the journalist Jamal Khashoggi.
The Trump administration has formally notified US lawmakers that it is invoking an emergency provision to go ahead with multibillion-dollar arms sales to Saudi Arabia and the United Arab Emirates without congressional approval.
The emergency provision, part of the Arms Export Control act, would allow the US to proceed with sales of planned precision bombs to those two countries, without fear of Congress blocking the measure.
However, the move is likely to inflame tensions between President Donald Trump and Congress, where members of both parties have criticised the president for not taking a harsher stance on Saudi Arabia in the wake of the killing of the journalist Jamal Khashoggi.
Oil rises more than 1% but sets biggest weekly loss of 2019 - Reuters
Oil rises more than 1% but sets biggest weekly loss of 2019 - Reuters:
Oil prices climbed more than 1% on Friday ahead of long U.S. and UK holiday weekends, but posted the biggest weekly drop of the year, pressured by rising inventories and worries about the global economy.
Brent crude rose 93 cents, or 1.4%, to settle at $68.69 a barrel, but the global benchmark notched a weekly decline of about 4.5%.
U.S. West Texas Intermediate crude rose 72 cents, or 1.2%, to end at $58.63 a barrel. It notched a weekly decline of about 6.4%, its steepest since December.
Oil prices climbed more than 1% on Friday ahead of long U.S. and UK holiday weekends, but posted the biggest weekly drop of the year, pressured by rising inventories and worries about the global economy.
Brent crude rose 93 cents, or 1.4%, to settle at $68.69 a barrel, but the global benchmark notched a weekly decline of about 4.5%.
U.S. West Texas Intermediate crude rose 72 cents, or 1.2%, to end at $58.63 a barrel. It notched a weekly decline of about 6.4%, its steepest since December.
Chinese group eyes $10bn industrial investment in #UAE | Financial Times
Chinese group eyes $10bn industrial investment in UAE | Financial Times:
A Chinese conglomerate is exploring a landmark $10bn industrial investment in the United Arab Emirates as the Gulf state seeks to become the leading Middle Eastern partner for China’s Belt and Road Initiative.
The UAE, which is trying to diversify its economy away from oil, is keen to become a hub on the “new Silk road” by promoting its infrastructure and strategic location as a natural fit for China’s drive to enhance trade with Europe and Africa via sea and land routes.
The East Hope Group conglomerate said it was working with Khalifa Industrial Zone Abu Dhabi, or Kizad, on a feasibility study for a three-phase, 15-year development at the port facility located near the UAE capital’s border with Dubai.
A Chinese conglomerate is exploring a landmark $10bn industrial investment in the United Arab Emirates as the Gulf state seeks to become the leading Middle Eastern partner for China’s Belt and Road Initiative.
The UAE, which is trying to diversify its economy away from oil, is keen to become a hub on the “new Silk road” by promoting its infrastructure and strategic location as a natural fit for China’s drive to enhance trade with Europe and Africa via sea and land routes.
The East Hope Group conglomerate said it was working with Khalifa Industrial Zone Abu Dhabi, or Kizad, on a feasibility study for a three-phase, 15-year development at the port facility located near the UAE capital’s border with Dubai.
Qatari sovereign wealth fund reveals stake in UK’s Sirius Minerals | Financial Times
Qatari sovereign wealth fund reveals stake in UK’s Sirius Minerals | Financial Times:
Qatar’s sovereign wealth fund has emerged as a shareholder in Sirius Minerals, the London-listed company building a giant fertiliser mine under a national park in North Yorkshire.
The Qatar Investment Authority owns 3.3 per cent of Sirius, according to a regulatory filing. Traders said the QIA had probably picked up its stake when the company issued $425m worth of new shares last month.
Sirius is trying to raise a total of $3.8bn so it can complete development of its Woodsmith mine and start mining a huge underground deposit of polyhalite, a type of fertiliser.
Qatar’s sovereign wealth fund has emerged as a shareholder in Sirius Minerals, the London-listed company building a giant fertiliser mine under a national park in North Yorkshire.
The Qatar Investment Authority owns 3.3 per cent of Sirius, according to a regulatory filing. Traders said the QIA had probably picked up its stake when the company issued $425m worth of new shares last month.
Sirius is trying to raise a total of $3.8bn so it can complete development of its Woodsmith mine and start mining a huge underground deposit of polyhalite, a type of fertiliser.
Trump Sparks Oil Rally With #Iran Spat, Then Rout With Trade War - Bloomberg
Trump Sparks Oil Rally With Iran Spat, Then Rout With Trade War - Bloomberg:
Just over a week ago, crude prices were surging as attacks on Saudi Arabia’s oil tankers and pipeline network spurred fears that the Middle East was on the brink of military confrontation.
In the past two days, however, oil has suffered its biggest losses this year as those concerns are shunted aside by another type of conflict: the escalating trade war between the U.S. and China.
At the heart of both price moves is the foreign and economic policy of Donald Trump. In the former case, political tensions are flaring as the U.S. president puts a diplomatic squeeze on Iran and presses its rivals in Riyadh to keep oil markets well-supplied. In the latter, it’s Trump’s trade battle with China that’s now weighing on the outlook for the world economy and oil demand.
Just over a week ago, crude prices were surging as attacks on Saudi Arabia’s oil tankers and pipeline network spurred fears that the Middle East was on the brink of military confrontation.
In the past two days, however, oil has suffered its biggest losses this year as those concerns are shunted aside by another type of conflict: the escalating trade war between the U.S. and China.
At the heart of both price moves is the foreign and economic policy of Donald Trump. In the former case, political tensions are flaring as the U.S. president puts a diplomatic squeeze on Iran and presses its rivals in Riyadh to keep oil markets well-supplied. In the latter, it’s Trump’s trade battle with China that’s now weighing on the outlook for the world economy and oil demand.
#SaudiArabia’s Ambitious Housing Goals Needs Empowered Women - Bloomberg
Saudi Arabia’s Ambitious Housing Goals Needs Empowered Women - Bloomberg:
A year ago, much of the conversation about women’s empowerment in Saudi Arabia centered on the government’s decision to let them drive. Other well-publicized reforms since then have opened up opportunities for women in the military and aviation, as well as access to previously proscribed or restricted spaces, like sports stadiums and music concerts.
But away from the headlines and photo-ops, Saudi women are also being empowered by gender-neutral policy changes. One example: the government’s aim to increase home ownership among citizens to 70% by 2030.
One essential requirement to reaching this goal is the growth of the mortgage industry, giving more young people—women as well as men—the opportunity to buy their first homes. Another is the acceleration of women’s employment: more working women will greatly expand the demand for mortgages among women looking to buy homes, either on their own or as part of dual-income families.
A year ago, much of the conversation about women’s empowerment in Saudi Arabia centered on the government’s decision to let them drive. Other well-publicized reforms since then have opened up opportunities for women in the military and aviation, as well as access to previously proscribed or restricted spaces, like sports stadiums and music concerts.
But away from the headlines and photo-ops, Saudi women are also being empowered by gender-neutral policy changes. One example: the government’s aim to increase home ownership among citizens to 70% by 2030.
One essential requirement to reaching this goal is the growth of the mortgage industry, giving more young people—women as well as men—the opportunity to buy their first homes. Another is the acceleration of women’s employment: more working women will greatly expand the demand for mortgages among women looking to buy homes, either on their own or as part of dual-income families.
Oil steady but set for 2019's biggest weekly loss - Reuters
Oil steady but set for 2019's biggest weekly loss - Reuters:
Oil prices were steady on Friday ahead of long U.S. and UK holiday weekends, but were on track for its biggest weekly drop of the year, pressured by rising inventories and concern over an economic slowdown.
Brent crude rose 12 cents to $67.88 a barrel by 11:57 a.m. ET (1557 GMT) but the global benchmark remained on course for a weekly decline of about 6%.
U.S. West Texas Intermediate crude was unchanged at$57.91 a barrel. The benchmark was on track for a weekly drop of nearly 8%, the biggest weekly decline since December.
Oil prices were steady on Friday ahead of long U.S. and UK holiday weekends, but were on track for its biggest weekly drop of the year, pressured by rising inventories and concern over an economic slowdown.
Brent crude rose 12 cents to $67.88 a barrel by 11:57 a.m. ET (1557 GMT) but the global benchmark remained on course for a weekly decline of about 6%.
U.S. West Texas Intermediate crude was unchanged at$57.91 a barrel. The benchmark was on track for a weekly drop of nearly 8%, the biggest weekly decline since December.
Oil rises towards $69 but set for 2019's biggest weekly loss - Reuters
Oil rises towards $69 but set for 2019's biggest weekly loss - Reuters:
Oil rose towards $69 a barrel on Friday after two sessions of losses, but remained on track for its biggest weekly drop this year due to rising inventories and concerns about an economic slowdown.
U.S. crude inventories rose to hit the highest since July 2017, suggesting ample supplies in the world’s top consumer. [EIA/S] Meanwhile, worries that the U.S.-China trade is developing into a more entrenched dispute have also hit prices.
“Clearly, bargain hunters are back in town,” Naeem Aslam, chief market analyst at TF Global Markets, said of the bounce. “However, it is still set to record the worst week of the year and this is due to the increase in trade war tensions between the U.S. and China.”
Brent crude, the global benchmark, rose 98 cents to $68.74 a barrel at 1121 GMT but remained on course for a decline of nearly 5% this week. U.S. West Texas Intermediate crude added 75 cents at $58.66.
Oil rose towards $69 a barrel on Friday after two sessions of losses, but remained on track for its biggest weekly drop this year due to rising inventories and concerns about an economic slowdown.
U.S. crude inventories rose to hit the highest since July 2017, suggesting ample supplies in the world’s top consumer. [EIA/S] Meanwhile, worries that the U.S.-China trade is developing into a more entrenched dispute have also hit prices.
“Clearly, bargain hunters are back in town,” Naeem Aslam, chief market analyst at TF Global Markets, said of the bounce. “However, it is still set to record the worst week of the year and this is due to the increase in trade war tensions between the U.S. and China.”
Brent crude, the global benchmark, rose 98 cents to $68.74 a barrel at 1121 GMT but remained on course for a decline of nearly 5% this week. U.S. West Texas Intermediate crude added 75 cents at $58.66.
Trump Considers Emergency to Bypass Congress on #Saudi Arms Deal - Bloomberg
Trump Considers Emergency to Bypass Congress on Saudi Arms Deal - Bloomberg:
The Trump administration is considering using a rarely cited provision in the Arms Control Act to clear arms sales to Saudi Arabia over congressional opposition, according to a person familiar with the matter and U.S. lawmakers.
The provision allows President Donald Trump to circumvent the normal approval process by declaring that an emergency exists that requires the sales to go through immediately “in the national security interests of the United States.”
Trump’s first foreign visit as president was to Saudi Arabia and he considers the kingdom a crucial ally in his efforts to isolate Iran. Yet both Democrats and Republicans have urged the U.S. to hold the Saudis accountable for the killing last October of columnist Jamal Khashoggi and for their role in Yemen’s civil war.
The Trump administration is considering using a rarely cited provision in the Arms Control Act to clear arms sales to Saudi Arabia over congressional opposition, according to a person familiar with the matter and U.S. lawmakers.
The provision allows President Donald Trump to circumvent the normal approval process by declaring that an emergency exists that requires the sales to go through immediately “in the national security interests of the United States.”
Trump’s first foreign visit as president was to Saudi Arabia and he considers the kingdom a crucial ally in his efforts to isolate Iran. Yet both Democrats and Republicans have urged the U.S. to hold the Saudis accountable for the killing last October of columnist Jamal Khashoggi and for their role in Yemen’s civil war.
In the Mideast, the Enemy of My Enemy Can Still Be My Enemy - Bloomberg
In the Mideast, the Enemy of My Enemy Can Still Be My Enemy - Bloomberg:
In April 2008, Iran’s then-Foreign Minister Manouchehr Mottaki flew to Riyadh to meet with Saudi Arabia’s King Abdullah. It did not go well.
Mottaki was seeking better relations with his country’s chief regional rival. Instead he got a lecture from the king about Tehran’s interference in Palestinian affairs. But “these are Muslims,” Mottaki responded, according to U.S. diplomatic cables made public by WikiLeaks. “No, Arabs,” replied the king. “You as Persians have no business meddling in Arab affairs.” The king said Mottaki had one year to improve ties.
Abdullah didn’t wait that long to make his next move. Moments later he told a delegation of visiting U.S. officials that the Iranians couldn’t be trusted and implored them, in the words of a senior adviser, to “cut off the head of the snake” by attacking Iran’s nuclear facilities and hitting it with economic sanctions, according to the same classified U.S. diplomatic summary of the meeting, which was published in 2012. President Obama did nothing of the sort. And the Saudi royals would have to wait almost a decade until they got a more amenable American president. Indeed, Abdullah wouldn’t live to see the shift.
In April 2008, Iran’s then-Foreign Minister Manouchehr Mottaki flew to Riyadh to meet with Saudi Arabia’s King Abdullah. It did not go well.
Mottaki was seeking better relations with his country’s chief regional rival. Instead he got a lecture from the king about Tehran’s interference in Palestinian affairs. But “these are Muslims,” Mottaki responded, according to U.S. diplomatic cables made public by WikiLeaks. “No, Arabs,” replied the king. “You as Persians have no business meddling in Arab affairs.” The king said Mottaki had one year to improve ties.
Abdullah didn’t wait that long to make his next move. Moments later he told a delegation of visiting U.S. officials that the Iranians couldn’t be trusted and implored them, in the words of a senior adviser, to “cut off the head of the snake” by attacking Iran’s nuclear facilities and hitting it with economic sanctions, according to the same classified U.S. diplomatic summary of the meeting, which was published in 2012. President Obama did nothing of the sort. And the Saudi royals would have to wait almost a decade until they got a more amenable American president. Indeed, Abdullah wouldn’t live to see the shift.
#Oman trying to reduce U.S.-Iran tensions: foreign ministry tweet - Reuters
Oman trying to reduce U.S.-Iran tensions: foreign ministry tweet - Reuters:
Oman is trying “with other parties” to reduce tensions between the United States and Iran, the Omani Foreign Ministry tweeted on Friday.
The tweet cited Yousuf bin Alawi bin Abdullah, the sultanate’s minister responsible for foreign affairs, who met on Monday in Tehran with Iranian Foreign Minister Mohammad Javad Zarif.
“There is a danger that a war breaks out, hurting the whole world ... Both parties, the American and the Iranian, are aware of the danger,” the tweet cited the Omani minister as saying in an interview with an Arabic publication.
Oman is trying “with other parties” to reduce tensions between the United States and Iran, the Omani Foreign Ministry tweeted on Friday.
The tweet cited Yousuf bin Alawi bin Abdullah, the sultanate’s minister responsible for foreign affairs, who met on Monday in Tehran with Iranian Foreign Minister Mohammad Javad Zarif.
“There is a danger that a war breaks out, hurting the whole world ... Both parties, the American and the Iranian, are aware of the danger,” the tweet cited the Omani minister as saying in an interview with an Arabic publication.
Oil recovers 1%, but set for biggest weekly loss of 2019 - Reuters
Oil recovers 1%, but set for biggest weekly loss of 2019 - Reuters:
Oil prices recouped around 1% on Friday but were on track for their biggest weekly loss this year after swelling inventories and jitters over an economic slowdown led to big falls earlier in the week.
Brent crude futures were at $68.48 per barrel at 0654 GMT, up 72 cents, or 1.1%, from their last close, with prices underpinned by OPEC supply cuts and Middle East tensions.
U.S. West Texas Intermediate (WTI) crude futures were up 66 cents, or 1.1%, at $58.57 per barrel.
Oil prices recouped around 1% on Friday but were on track for their biggest weekly loss this year after swelling inventories and jitters over an economic slowdown led to big falls earlier in the week.
Brent crude futures were at $68.48 per barrel at 0654 GMT, up 72 cents, or 1.1%, from their last close, with prices underpinned by OPEC supply cuts and Middle East tensions.
U.S. West Texas Intermediate (WTI) crude futures were up 66 cents, or 1.1%, at $58.57 per barrel.
Thursday 23 May 2019
Deutsche Bank CEO Targets Investment Bank for `Tough' Cuts - Bloomberg
Deutsche Bank CEO Targets Investment Bank for `Tough' Cuts - Bloomberg:
Deutsche Bank AG Chief Executive Officer Christian Sewing is targeting the investment bank for “tough cutbacks,” notably in equity trading, in a campaign to restore market confidence following the breakdown of takeover talks with Commerzbank AG.
“I can assure you: we are prepared to make tough cutbacks” to the securities unit, Sewing said Thursday at the bank’s annual shareholders’ meeting in Frankfurt. The CEO said he’s “rigorously focusing” on building up profitable and growing businesses.
Sewing didn’t say where the cuts would be, but he highlighted businesses where they’re unlikely to happen, such as origination and advisory as well as as foreign exchange, global credit trading and U.S. commercial real estate. He didn’t mention equities trading, an omission that was intentional, according to a person familiar with the matter.
Deutsche Bank AG Chief Executive Officer Christian Sewing is targeting the investment bank for “tough cutbacks,” notably in equity trading, in a campaign to restore market confidence following the breakdown of takeover talks with Commerzbank AG.
“I can assure you: we are prepared to make tough cutbacks” to the securities unit, Sewing said Thursday at the bank’s annual shareholders’ meeting in Frankfurt. The CEO said he’s “rigorously focusing” on building up profitable and growing businesses.
Sewing didn’t say where the cuts would be, but he highlighted businesses where they’re unlikely to happen, such as origination and advisory as well as as foreign exchange, global credit trading and U.S. commercial real estate. He didn’t mention equities trading, an omission that was intentional, according to a person familiar with the matter.
Stake in World's Biggest Airport Said on Sale Weeks After Open - Bloomberg
Stake in World's Biggest Airport Said on Sale Weeks After Open - Bloomberg:
Some of the owners of the joint venture that operates Istanbul’s giant new airport hired Lazard Ltd. to sell their stake in the $11 billion hub, according to people with knowledge of the matter.
The U.S. investment bank is working with some members of the IGA consortium to provide a valuation of the airport and manage discussions with potential buyers, the people said, asking not to be identified because the process is confidential.
Vinci SA, Aeroports de Paris and its Turkish unit TAV Havaliamanlari Holding AS, and Ferrovial SA are among interested parties, two of the people said.
Some of the owners of the joint venture that operates Istanbul’s giant new airport hired Lazard Ltd. to sell their stake in the $11 billion hub, according to people with knowledge of the matter.
The U.S. investment bank is working with some members of the IGA consortium to provide a valuation of the airport and manage discussions with potential buyers, the people said, asking not to be identified because the process is confidential.
Vinci SA, Aeroports de Paris and its Turkish unit TAV Havaliamanlari Holding AS, and Ferrovial SA are among interested parties, two of the people said.
Oil Suffers Worst Day of 2019 as Trade Dispute Swamps Confidence - Bloomberg
Oil Suffers Worst Day of 2019 as Trade Dispute Swamps Confidence - Bloomberg:
Oil spiraled to its worst daily performance of the year as mounting trade tensions between the world’s biggest economies sent investors fleeing from risky assets.
Futures in New York fell as much as 5.7% on Thursday for the steepest intraday decline since Dec. 24. Equity markets also slumped: the Dow Jones Industrial Average dropped more than 400 points after the Chinese Communist Party’s flagship newspaper published two commentaries warning of a “technology cold war” with the U.S.
West Texas Intermediate crude for July delivery fell 5.2% to $58.21 a barrel at 10:29 a.m. on the New York Mercantile Exchange. Brent, the international crude benchmark, fell as much as 4.9% to $67.53.
Oil spiraled to its worst daily performance of the year as mounting trade tensions between the world’s biggest economies sent investors fleeing from risky assets.
Futures in New York fell as much as 5.7% on Thursday for the steepest intraday decline since Dec. 24. Equity markets also slumped: the Dow Jones Industrial Average dropped more than 400 points after the Chinese Communist Party’s flagship newspaper published two commentaries warning of a “technology cold war” with the U.S.
West Texas Intermediate crude for July delivery fell 5.2% to $58.21 a barrel at 10:29 a.m. on the New York Mercantile Exchange. Brent, the international crude benchmark, fell as much as 4.9% to $67.53.
MENA fund managers increase investments in Egypt,# UAE: Poll | ZAWYA MENA Edition
MENA fund managers increase investments in Egypt, UAE: Poll | ZAWYA MENA Edition:
Middle Eastern funds plan to increase their investments in Egypt and the United Arab Emirates over the next three months, while largely keeping their exposure to other countries in the region at current levels, according to a Reuters poll.
Six of the 11 fund managers polled said they would increase their investments in Egypt.
"We see UAE and Egypt being structurally the most attractive markets in MENA," said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital.
Middle Eastern funds plan to increase their investments in Egypt and the United Arab Emirates over the next three months, while largely keeping their exposure to other countries in the region at current levels, according to a Reuters poll.
Six of the 11 fund managers polled said they would increase their investments in Egypt.
"We see UAE and Egypt being structurally the most attractive markets in MENA," said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital.
Higher capital adequacy requirements weigh on Omani banks' profitability | ZAWYA MENA Edition
Higher capital adequacy requirements weigh on Omani banks' profitability | ZAWYA MENA Edition:
Omani banks reported uninspiring first quarter (Q1) earnings for the current year, with profitability eroded by higher capital adequacy requirements, an analyst told Zawya.
“Earnings have been somewhat lacklustre,” Ayisha Zia Hassan Naseer, research analyst at Ubhar Capital, told Zawya by email on Thursday.
“Bank Muscat, NBO (National Bank of Oman), HSBC, and Ahli Bank met our Q1’19 forecasts for net profit. BKDB (Bank Dhofar) missed our estimate by about 7 percent. Sohar International beat our estimate by a whopping 24 percent on lower provisions,” she added.
Omani banks reported uninspiring first quarter (Q1) earnings for the current year, with profitability eroded by higher capital adequacy requirements, an analyst told Zawya.
“Earnings have been somewhat lacklustre,” Ayisha Zia Hassan Naseer, research analyst at Ubhar Capital, told Zawya by email on Thursday.
“Bank Muscat, NBO (National Bank of Oman), HSBC, and Ahli Bank met our Q1’19 forecasts for net profit. BKDB (Bank Dhofar) missed our estimate by about 7 percent. Sohar International beat our estimate by a whopping 24 percent on lower provisions,” she added.
MIDEAST STOCKS-Oil price fall weighs on #Saudi while blue chips gain in Egypt - Agricultural Commodities - Reuters
MIDEAST STOCKS-Oil price fall weighs on Saudi while blue chips gain in Egypt - Agricultural Commodities - Reuters:
Saudi Arabia's stock market fell sharply
on Thursday as banks and petrochemical shares dropped amid
falling oil prices, while Egypt's blue-chip index closed higher.
Saudi's index dropped 1.4% with 10 of its 11 banks
trading lower. Al Rajhi Bank shed 1.7% and Saudi Basic
Industries fell 2.5%.
Oil prices dropped on Thursday, extending falls from the
previous session amid growing U.S. crude inventories as low
refinery runs and trade standoffs weigh on the demand outlook.
Saudi Arabia's stock market fell sharply
on Thursday as banks and petrochemical shares dropped amid
falling oil prices, while Egypt's blue-chip index closed higher.
Saudi's index dropped 1.4% with 10 of its 11 banks
trading lower. Al Rajhi Bank shed 1.7% and Saudi Basic
Industries fell 2.5%.
Oil prices dropped on Thursday, extending falls from the
previous session amid growing U.S. crude inventories as low
refinery runs and trade standoffs weigh on the demand outlook.
Analysis: #Iran supreme leader comments signal strategy shift
Analysis: Iran supreme leader comments signal strategy shift:
For years, Iran’s supreme leader only criticized the West over Tehran’s nuclear deal with world powers. Now, Ayatollah Ali Khamenei is publicly chastising the country’s elected president and his foreign minister as the accord unravels amid heightened tensions with the U.S.
By naming President Hassan Rouhani and Foreign Minister Mohammad Javad Zarif as failing to implement his orders over the deal, Khamenei is signaling a hard-line tilt in how the Islamic Republic will react going forward.
That will include how Iran handles the ongoing maximalist pressure campaign of President Donald Trump, who has piled on new sanctions and dispatched an aircraft carrier strike group and B-52 bombers to the region over still-unspecified threats the White House perceives to be coming from Tehran. Now U.S. officials say the Pentagon will present a plan to the White House on Thursday calling for sending as many as an additional 10,000 troops to the Middle East over Iran.
For years, Iran’s supreme leader only criticized the West over Tehran’s nuclear deal with world powers. Now, Ayatollah Ali Khamenei is publicly chastising the country’s elected president and his foreign minister as the accord unravels amid heightened tensions with the U.S.
By naming President Hassan Rouhani and Foreign Minister Mohammad Javad Zarif as failing to implement his orders over the deal, Khamenei is signaling a hard-line tilt in how the Islamic Republic will react going forward.
That will include how Iran handles the ongoing maximalist pressure campaign of President Donald Trump, who has piled on new sanctions and dispatched an aircraft carrier strike group and B-52 bombers to the region over still-unspecified threats the White House perceives to be coming from Tehran. Now U.S. officials say the Pentagon will present a plan to the White House on Thursday calling for sending as many as an additional 10,000 troops to the Middle East over Iran.
Oil losses accelerate, Brent crude oil drops below $70 a barrel | Financial Times
Oil losses accelerate, Brent crude oil drops below $70 a barrel | Financial Times:
Brent crude oil dropped below $70 a barrel on Thursday, taking losses over the last two sessions to more than 3 per cent as traders weighed the risks from a US-China trade war and rising inventories in the US.
Brent was down 1.7 per cent in late-morning trading in London to $69.77 a barrel, while US marker West Texas Intermediate lost a similar amount to trade at $60.35 a barrel.
The sell-off weighed on oil companies traded in London, with BP and Royal Dutch Shell both losing 2.2 per cent, while midsized oil and gas explorers were some of the biggest fallers on the FTSE All-Share index.
Brent crude oil dropped below $70 a barrel on Thursday, taking losses over the last two sessions to more than 3 per cent as traders weighed the risks from a US-China trade war and rising inventories in the US.
Brent was down 1.7 per cent in late-morning trading in London to $69.77 a barrel, while US marker West Texas Intermediate lost a similar amount to trade at $60.35 a barrel.
The sell-off weighed on oil companies traded in London, with BP and Royal Dutch Shell both losing 2.2 per cent, while midsized oil and gas explorers were some of the biggest fallers on the FTSE All-Share index.
Aramco Starts Fuel Trading From #UAE With Ex-BP, Pemex Hires - Bloomberg
Aramco Starts Fuel Trading From U.A.E. With Ex-BP, Pemex Hires - Bloomberg:
Saudi Aramco hired two Singapore-based traders and began dealing in fuel at the Middle East’s main bunkering port as the world’s biggest oil exporter expands further into the trading business.
Aramco’s trading unit started doing deals earlier this month at its new office in the United Arab Emirates port of Fujairah, according to people with knowledge of the situation. It hired five people, including Avyay Saxena who formerly worked at BP Plc and Trafigura Group and Max Moran who worked at the trading unit of Mexico’s Pemex, they said.
The company also hired a specialist in blending different products, according to the people, who asked not to be identified because they’re not authorized to speak to the media. Aramco Trading media officials didn’t immediately respond to a request for comment.
Saudi Aramco hired two Singapore-based traders and began dealing in fuel at the Middle East’s main bunkering port as the world’s biggest oil exporter expands further into the trading business.
Aramco’s trading unit started doing deals earlier this month at its new office in the United Arab Emirates port of Fujairah, according to people with knowledge of the situation. It hired five people, including Avyay Saxena who formerly worked at BP Plc and Trafigura Group and Max Moran who worked at the trading unit of Mexico’s Pemex, they said.
The company also hired a specialist in blending different products, according to the people, who asked not to be identified because they’re not authorized to speak to the media. Aramco Trading media officials didn’t immediately respond to a request for comment.
'Very Bullish' on GCC Bond Market, Shuaa Capital Says – Bloomberg
'Very Bullish' on GCC Bond Market, Shuaa Capital Says – Bloomberg:
Aarthi Chandrasekaran, portfolio manager at Shuaa Capital Asset Management at talks about Saudi Arabian banks and the stock market, oil, and the bond markets in the six-nation Gulf Cooperation Council. She speaks "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Aarthi Chandrasekaran, portfolio manager at Shuaa Capital Asset Management at talks about Saudi Arabian banks and the stock market, oil, and the bond markets in the six-nation Gulf Cooperation Council. She speaks "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#Saudi Gas Deal Signals Commitment to Oil Cuts, Brookfield Says - Bloomberg
Saudi Gas Deal Signals Commitment to Oil Cuts, Brookfield Says - Bloomberg:
Saudi Aramco's deal to buy a stake in a U.S. gas export project is a sign the kingdom may be willing to support crude production cuts for longer as it seeks to reduce economic reliance on oil, according to Brookfield Asset Management Inc.
The state-owned company announced that it’s taking a 25% stake in Sempra Energy’s Port Arthur liquefied natural gas terminal in Texas. The investments are consistent with Saudi Arabia’s 2030 vision to diversify away from oil and has spurred the country’s willingness to cede crude market share to the U.S. and others through production cuts, said Jeff Jorgensen, portfolio manager and director of research at Brookfield’s Public Securities Group.
“To the extent that they make downstream investments, I think it’s a good sign on their willingness on the crude side to continue to support the production cuts and extend them,” Jorgensen said in an interview in New York.
Saudi Aramco's deal to buy a stake in a U.S. gas export project is a sign the kingdom may be willing to support crude production cuts for longer as it seeks to reduce economic reliance on oil, according to Brookfield Asset Management Inc.
The state-owned company announced that it’s taking a 25% stake in Sempra Energy’s Port Arthur liquefied natural gas terminal in Texas. The investments are consistent with Saudi Arabia’s 2030 vision to diversify away from oil and has spurred the country’s willingness to cede crude market share to the U.S. and others through production cuts, said Jeff Jorgensen, portfolio manager and director of research at Brookfield’s Public Securities Group.
“To the extent that they make downstream investments, I think it’s a good sign on their willingness on the crude side to continue to support the production cuts and extend them,” Jorgensen said in an interview in New York.
Oil set for worst week in 6 months as crude stockpiles surge | ZAWYA MENA Edition
Oil set for worst week in 6 months as crude stockpiles surge | ZAWYA MENA Edition:
Oil prices dropped on Thursday, extending falls from the previous session amid surging U.S. crude inventories as low refinery runs and ongoing trade tensions weighed on the demand outlook.
World shares made it four days in the red in the last five as concerns grew the China-U.S. trade conflict was fast turning into a technology cold war between the world's two largest economies.
Brent crude futures , the international benchmark for oil prices, were at $69.77 per barrel at 1016 GMT, down $1.22 from their last close.
U.S. West Texas Intermediate (WTI) crude futures were down by $1.09 cents at $60.33 per barrel, after falling 2.5% the previous day.
Oil prices dropped on Thursday, extending falls from the previous session amid surging U.S. crude inventories as low refinery runs and ongoing trade tensions weighed on the demand outlook.
World shares made it four days in the red in the last five as concerns grew the China-U.S. trade conflict was fast turning into a technology cold war between the world's two largest economies.
Brent crude futures , the international benchmark for oil prices, were at $69.77 per barrel at 1016 GMT, down $1.22 from their last close.
U.S. West Texas Intermediate (WTI) crude futures were down by $1.09 cents at $60.33 per barrel, after falling 2.5% the previous day.
#Saudi court accepts AHAB's bankruptcy filing, rejects liquidation: sources - Reuters
Saudi court accepts AHAB's bankruptcy filing, rejects liquidation: sources - Reuters:
A Saudi commercial court has accepted a filing by conglomerate AHAB to have its decade-long dispute with creditors resolved under the kingdom’s new bankruptcy law, and rejected a demand to liquidate the company filed by two of its creditors, sources familiar with the matter said.
The bankruptcy filing was seen as a key test of Saudi Arabia’s new law for handling insolvency disputes, which became effective last year as part of reforms aimed at making the country more investor friendly.
Following an appeal, the Dammam Commercial Court earlier this week reconsidered its previous rejection of AHAB’s (Ahmad Hamad Algosaibi and Brothers) filing for a financial restructuring procedure and approved it, the sources said.
A Saudi commercial court has accepted a filing by conglomerate AHAB to have its decade-long dispute with creditors resolved under the kingdom’s new bankruptcy law, and rejected a demand to liquidate the company filed by two of its creditors, sources familiar with the matter said.
The bankruptcy filing was seen as a key test of Saudi Arabia’s new law for handling insolvency disputes, which became effective last year as part of reforms aimed at making the country more investor friendly.
Following an appeal, the Dammam Commercial Court earlier this week reconsidered its previous rejection of AHAB’s (Ahmad Hamad Algosaibi and Brothers) filing for a financial restructuring procedure and approved it, the sources said.
Sovereign wealth funds hike investments in venture capital -report - Reuters
Sovereign wealth funds hike investments in venture capital -report - Reuters:
Sovereign wealth funds invested more equity in unlisted technology companies in 2018 than in any year since 2015, new research showed on Thursday, as public markets shrank due to fewer initial public offerings and large share repurchases.
The commitment of wealth funds to early-stage firms doubled from the previous year, while the number of transactions at the growth-capital stage rose by over 40%, according to the 2018 International Forum of Sovereign Wealth Funds (IFSWF) Annual Report.
Sovereign wealth funds invested more equity in unlisted technology companies in 2018 than in any year since 2015, new research showed on Thursday, as public markets shrank due to fewer initial public offerings and large share repurchases.
The commitment of wealth funds to early-stage firms doubled from the previous year, while the number of transactions at the growth-capital stage rose by over 40%, according to the 2018 International Forum of Sovereign Wealth Funds (IFSWF) Annual Report.
Oil continues slide on U.S. crude stockpiles surge - Reuters
Oil continues slide on U.S. crude stockpiles surge - Reuters:
Oil prices dropped on Thursday, extending falls from the previous session amid surging U.S. crude inventories as ample supply and weak refinery data weighed on demand.
Brent crude futures, the international benchmark for oil prices, were at $70.40 per barrel at 0857 GMT, down 59 cents from their last close.
U.S. West Texas Intermediate (WTI) crude futures were down by 43 cents at $60.99 per barrel, after falling 2.5% the previous day.
Oil prices dropped on Thursday, extending falls from the previous session amid surging U.S. crude inventories as ample supply and weak refinery data weighed on demand.
Brent crude futures, the international benchmark for oil prices, were at $70.40 per barrel at 0857 GMT, down 59 cents from their last close.
U.S. West Texas Intermediate (WTI) crude futures were down by 43 cents at $60.99 per barrel, after falling 2.5% the previous day.
#Brazil Senate clears runway for foreign airlines on domestic routes - Reuters
Brazil Senate clears runway for foreign airlines on domestic routes - Reuters:
Brazil’s Senate on Wednesday passed legislation allowing foreign-controlled airlines to operate domestic flights, opening up Latin America’s largest air travel market after years of debate.
The measure passed Brazil’s Senate on Wednesday following approval by the lower chamber on Tuesday. Because Congress added a provision barring airlines from charging passengers for their first checked bag, the bill will require the signature of President Jair Bolsonaro before becoming law.
The new rules could soon boost competition in Brazil’s increasingly concentrated airline market. But the change in baggage fees will face pushback from airlines, including industry group Latin American and Caribbean Air Transport Association.
Brazil’s Senate on Wednesday passed legislation allowing foreign-controlled airlines to operate domestic flights, opening up Latin America’s largest air travel market after years of debate.
The measure passed Brazil’s Senate on Wednesday following approval by the lower chamber on Tuesday. Because Congress added a provision barring airlines from charging passengers for their first checked bag, the bill will require the signature of President Jair Bolsonaro before becoming law.
The new rules could soon boost competition in Brazil’s increasingly concentrated airline market. But the change in baggage fees will face pushback from airlines, including industry group Latin American and Caribbean Air Transport Association.
#Qatar stock exchange looks to new ETFs to attract more foreign cash - Reuters
Qatar stock exchange looks to new ETFs to attract more foreign cash - Reuters:
Qatar’s stock exchange is developing two new Exchange Traded Funds, part of efforts by the Middle East’s strongest performing stock market in 2018 to boost foreign investment, CEO Rashid al-Mansoori said.
Qatar has been on a drive to attract capital from new sources since Saudi Arabia, the United Emirates, Bahrain, and Egypt imposed an economic boycott over what they allege is Qatar’s support of terrorism, which Doha denies.
Companies on Qatar’s exchange have since increased foreign ownership limits to 49%, most of which had previously been set at 25%, drawing a flood of cash that helped to boost the main index by more than 20% last year.
Qatar’s stock exchange is developing two new Exchange Traded Funds, part of efforts by the Middle East’s strongest performing stock market in 2018 to boost foreign investment, CEO Rashid al-Mansoori said.
Qatar has been on a drive to attract capital from new sources since Saudi Arabia, the United Emirates, Bahrain, and Egypt imposed an economic boycott over what they allege is Qatar’s support of terrorism, which Doha denies.
Companies on Qatar’s exchange have since increased foreign ownership limits to 49%, most of which had previously been set at 25%, drawing a flood of cash that helped to boost the main index by more than 20% last year.
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