OPEC oil output hits lowest since 2011 on Saudi cut, sanctions: Reuters survey - Reuters:
OPEC oil output hit an eight-year low in July as a further voluntary cut by top exporter Saudi Arabia deepened losses caused by U.S. sanctions on Iran and outages elsewhere in the group, a Reuters survey found.
The 14-member Organization of the Petroleum Exporting Countries pumped 29.42 million barrels per day (bpd) this month, the survey showed, down 280,000 bpd from June’s revised figure and the lowest OPEC total since 2011.
The survey suggests Saudi Arabia is sticking to its plan of voluntarily restraining output by more than called for by an OPEC-led supply deal to support the market. OPEC renewed the supply pact this month, shrugging off pressure from U.S. President Donald Trump to pump more.
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Wednesday 31 July 2019
Oil rises as U.S. crude stocks fall again, Fed cuts interest rates - Reuters
Oil rises as U.S. crude stocks fall again, Fed cuts interest rates - Reuters:
Oil prices rose for a fifth day on Wednesday following a larger-than-expected drop in U.S. inventories and after the Federal Reserve cut U.S. interest rates for the first time in more than a decade.
The front-month Brent crude LCOc1 futures contract, which expired Wednesday, rose 45 cents to settle at $65.17 a barrel. Brent posted a monthly decline of 2.1%.
U.S. West Texas Intermediate (WTI) crude CLc1 futures gained 53 cents to settle at $58.58 a barrel, and inched up 0.2% in July.
U.S. crude stockpiles USOILC=ECI fell for a seventh straight week, slumping 8.5 million barrels last week, the Energy Information Administration said, far exceeding analysts’ expectations for a decrease of 2.6 million barrels.
At 436.5 million barrels, U.S. crude inventories, not including strategic oil reserves, were at the five year average for this time of year, the EIA said.
Oil prices rose for a fifth day on Wednesday following a larger-than-expected drop in U.S. inventories and after the Federal Reserve cut U.S. interest rates for the first time in more than a decade.
The front-month Brent crude LCOc1 futures contract, which expired Wednesday, rose 45 cents to settle at $65.17 a barrel. Brent posted a monthly decline of 2.1%.
U.S. West Texas Intermediate (WTI) crude CLc1 futures gained 53 cents to settle at $58.58 a barrel, and inched up 0.2% in July.
U.S. crude stockpiles USOILC=ECI fell for a seventh straight week, slumping 8.5 million barrels last week, the Energy Information Administration said, far exceeding analysts’ expectations for a decrease of 2.6 million barrels.
At 436.5 million barrels, U.S. crude inventories, not including strategic oil reserves, were at the five year average for this time of year, the EIA said.
#Iran Cabinet Approves Plan to Slash Four Zeros From Currency - Bloomberg
Iran Cabinet Approves Plan to Slash Four Zeros From Currency - Bloomberg:
Iran’s cabinet has approved a plan to slash four zeros from the national currency, the rial, the official Islamic Republic News Agency reported Wednesday, citing government spokesman Ali Rabiei.
The redenomination of the currency has been discussed for years as the rial’s value has plummeted. Rabiei did not specify whether the plan requires parliamentary support or when it would take effect.
Iran’s cabinet has approved a plan to slash four zeros from the national currency, the rial, the official Islamic Republic News Agency reported Wednesday, citing government spokesman Ali Rabiei.
The redenomination of the currency has been discussed for years as the rial’s value has plummeted. Rabiei did not specify whether the plan requires parliamentary support or when it would take effect.
UPDATE 1- #SaudiArabia keeps July oil output below 10 mln bpd- Saudi source - Reuters
UPDATE 1-Saudi Arabia keeps July oil output below 10 mln bpd- Saudi source - Reuters:
Saudi Arabia’s oil production fell to 9.6 million barrels per day in July and will stay below 10 million bpd in the coming months, a Saudi oil source told Reuters on Wednesday.
Saudi’s July crude output is lower than its June production by around 200,000 bpd, the source said.
“We believe now after talking with customers and consumers that the market is getting tighter, as we see that the U.S. commercial stocks are going down,” the source said.
Saudi Arabia’s oil production fell to 9.6 million barrels per day in July and will stay below 10 million bpd in the coming months, a Saudi oil source told Reuters on Wednesday.
Saudi’s July crude output is lower than its June production by around 200,000 bpd, the source said.
“We believe now after talking with customers and consumers that the market is getting tighter, as we see that the U.S. commercial stocks are going down,” the source said.
Mideast Stocks: Petchems lead #Saudi lower, financials drag down #Qatar | ZAWYA MENA Edition
Mideast Stocks: Petchems lead Saudi lower, financials drag down Qatar | ZAWYA MENA Edition:
Saudi stocks dropped on Wednesday as losses in petrochemical shares outweighed earnings-fuelled gains in some banking stocks, while Qatar Insurance pulled the Qatari market down.
Saudi's index slipped 0.1%, with petrochemical maker Saudi Basic Industries Co 2010.SE shedding 1.1% after earlier this week reporting its lowest quarterly profit since late 2009.
The kingdom has returned to deficit in the second quarter after posting its first surplus in the first quarter since 2014, as oil revenues fell 5% and non-oil revenues declined 4%.
Saudi stocks dropped on Wednesday as losses in petrochemical shares outweighed earnings-fuelled gains in some banking stocks, while Qatar Insurance pulled the Qatari market down.
Saudi's index slipped 0.1%, with petrochemical maker Saudi Basic Industries Co 2010.SE shedding 1.1% after earlier this week reporting its lowest quarterly profit since late 2009.
The kingdom has returned to deficit in the second quarter after posting its first surplus in the first quarter since 2014, as oil revenues fell 5% and non-oil revenues declined 4%.
Emirates NBD will support Denizbank if it needs capital increase -NBD CEO | ZAWYA MENA Edition
Emirates NBD will support Denizbank if it needs capital increase -NBD CEO | ZAWYA MENA Edition:
Emirates NBD Group CEO Shayne Nelson said that the bank would support Turkey's Denizbank if it needed a capital increase, as the Dubai-based bank completed the purchase of Denizbank on Wednesday.
Speaking at the signing ceremony of Sberbank's sale of its shares in Denizbank to Emirates NBD, Nelson said that NBD is a long-term investor in Turkey.
In April, Emirates NBD said it was buying Denizbank from Sberbank for 15.48 billion lira ($2.8 billion), lower than a previously agreed price. Turkey's BDDK banking watchdog approved the transaction in June and the sale was completed on Wednesday.
Emirates NBD Group CEO Shayne Nelson said that the bank would support Turkey's Denizbank if it needed a capital increase, as the Dubai-based bank completed the purchase of Denizbank on Wednesday.
Speaking at the signing ceremony of Sberbank's sale of its shares in Denizbank to Emirates NBD, Nelson said that NBD is a long-term investor in Turkey.
In April, Emirates NBD said it was buying Denizbank from Sberbank for 15.48 billion lira ($2.8 billion), lower than a previously agreed price. Turkey's BDDK banking watchdog approved the transaction in June and the sale was completed on Wednesday.
#Saudi Binladin group seeks adviser for jumbo debt restructuring: sources - Reuters
Saudi Binladin group seeks adviser for jumbo debt restructuring: sources - Reuters:
The Saudi Binladin Group is seeking a financial adviser for a restructuring of the group’s debt, which could range between $20 and $30 billion, sources familiar with the matter said.
The move is the latest in state efforts to restructure the construction giant, in which the Saudi government took a roughly one-third stake from Bin Laden family members that were swept up in an anti-graft campaign that Riyadh launched in late 2017.
The company, which has dominated the construction sector for years, is crucial to the kingdom’s plans for tourism and infrastructure projects aimed at diversifying the economy away from oil revenues by 2030.
The Saudi Binladin Group is seeking a financial adviser for a restructuring of the group’s debt, which could range between $20 and $30 billion, sources familiar with the matter said.
The move is the latest in state efforts to restructure the construction giant, in which the Saudi government took a roughly one-third stake from Bin Laden family members that were swept up in an anti-graft campaign that Riyadh launched in late 2017.
The company, which has dominated the construction sector for years, is crucial to the kingdom’s plans for tourism and infrastructure projects aimed at diversifying the economy away from oil revenues by 2030.
Oil Trades Near Two-Week High on Tighter Supply, Mideast Risks - Bloomberg
Oil Trades Near Two-Week High on Tighter Supply, Mideast Risks - Bloomberg:
Oil traded near a two-week high in New York amid signs of a further drop in U.S. stockpiles and ongoing concerns that political friction in the Persian Gulf could disrupt exports.
Futures rose as much as 1.1%. American crude inventories dropped by 6.02 million barrels last week, according to an industry report. If confirmed by government data on Wednesday, it will be a seventh weekly decline. BP Plc is avoiding sending ships through the Strait of Hormuz, Chief Executive Officer Bob Dudley said Tuesday, in a sign Middle East tensions could affect the flow of crude. Libya’s oil production dropped to the lowest in five months after an issue with a pipeline connected to its biggest field.
West Texas Intermediate for September delivery rose as much as 62 cents to $58.67 a barrel on the New York Mercantile Exchange, and traded at $58.65 as of 8:47 a.m. local time. Prices are up for a fifth day, after climbing 2.1% on Tuesday, the biggest gain since July 10.
Brent crude for September, which expires Wednesday, added 54 cents to $65.26 a barrel on the ICE Futures Europe exchange, after rising 1.6% on Tuesday. The more-active October contract was at $65.19, up 56 cents. The September contract traded at a $6.85 premium to WTI for the same month.
Oil traded near a two-week high in New York amid signs of a further drop in U.S. stockpiles and ongoing concerns that political friction in the Persian Gulf could disrupt exports.
Futures rose as much as 1.1%. American crude inventories dropped by 6.02 million barrels last week, according to an industry report. If confirmed by government data on Wednesday, it will be a seventh weekly decline. BP Plc is avoiding sending ships through the Strait of Hormuz, Chief Executive Officer Bob Dudley said Tuesday, in a sign Middle East tensions could affect the flow of crude. Libya’s oil production dropped to the lowest in five months after an issue with a pipeline connected to its biggest field.
West Texas Intermediate for September delivery rose as much as 62 cents to $58.67 a barrel on the New York Mercantile Exchange, and traded at $58.65 as of 8:47 a.m. local time. Prices are up for a fifth day, after climbing 2.1% on Tuesday, the biggest gain since July 10.
Brent crude for September, which expires Wednesday, added 54 cents to $65.26 a barrel on the ICE Futures Europe exchange, after rising 1.6% on Tuesday. The more-active October contract was at $65.19, up 56 cents. The September contract traded at a $6.85 premium to WTI for the same month.
#Dubai Stocks Shine in July as Regional Rotation Picks Up - Bloomberg
Dubai Stocks Shine in July as Regional Rotation Picks Up - Bloomberg:
Equity investors rotating from expensive Saudi and Kuwaiti markets into cheaper Dubai are helping the Emirate’s main equity index enjoy its best monthly performance in over four years.
The DFM General Index finished July 9.8% higher, its biggest monthly gain since April 2015 and the third-best among major gauges globally after Jamaica and Sri Lanka. The positive performance contrasts with a decline of 1.5% for the MSCI EM Index.
Analysts and money managers say that valuations for some of Dubai’s biggest and most liquid stocks are attractive even as economic growth remains subdued. They also note that other markets in the region, such as Saudi Arabia and Kuwait, are losing the appeal initially triggered by their inclusion in emerging-market benchmarks.
Equity investors rotating from expensive Saudi and Kuwaiti markets into cheaper Dubai are helping the Emirate’s main equity index enjoy its best monthly performance in over four years.
The DFM General Index finished July 9.8% higher, its biggest monthly gain since April 2015 and the third-best among major gauges globally after Jamaica and Sri Lanka. The positive performance contrasts with a decline of 1.5% for the MSCI EM Index.
Analysts and money managers say that valuations for some of Dubai’s biggest and most liquid stocks are attractive even as economic growth remains subdued. They also note that other markets in the region, such as Saudi Arabia and Kuwait, are losing the appeal initially triggered by their inclusion in emerging-market benchmarks.
#Abraaj Used Colors and Noise to Prioritize Payments to Investors - Bloomberg
Abraaj Used Colors and Noise to Prioritize Payments to Investors - Bloomberg:
It paid to make noise as an investor in the now defunct Abraaj Group.
As the buyout firm’s financial woes grew, senior management drew up a color chart to pay limited partners according to how much “noise” they made, a report by Dubai’s financial regulator showed.
Abraaj, which once managed about $14 billion, was forced into liquidation last year after being accused of mismanaging investor funds. The firm’s backers included the Bill & Melinda Gates Foundation and the World Bank’s International Finance Corp.
It paid to make noise as an investor in the now defunct Abraaj Group.
As the buyout firm’s financial woes grew, senior management drew up a color chart to pay limited partners according to how much “noise” they made, a report by Dubai’s financial regulator showed.
Abraaj, which once managed about $14 billion, was forced into liquidation last year after being accused of mismanaging investor funds. The firm’s backers included the Bill & Melinda Gates Foundation and the World Bank’s International Finance Corp.
MIDEAST STOCKS- #Saudi shares rise as NCB gains; financials weigh on #Qatar - Reuters
MIDEAST STOCKS-Saudi shares rise as NCB gains; financials weigh on Qatar - Reuters:
Saudi stocks rose on Wednesday as the earnings at National Commercial Bank boosted financial stocks. However, financial shares weighed down the Qatar market.
Saudi’s index edged up 0.1%. The country’s biggest bank, National Commercial Bank, gained 0.7% after posting a 24% rise in second-quarter profit, helped by higher fee and commission income and lower expenses.
Saudi banks have benefited from higher interest rates and increased demand for loans to support housing and government-related projects.
Saudi stocks rose on Wednesday as the earnings at National Commercial Bank boosted financial stocks. However, financial shares weighed down the Qatar market.
Saudi’s index edged up 0.1%. The country’s biggest bank, National Commercial Bank, gained 0.7% after posting a 24% rise in second-quarter profit, helped by higher fee and commission income and lower expenses.
Saudi banks have benefited from higher interest rates and increased demand for loans to support housing and government-related projects.
Oil price swings won’t cause stocks to slide | Financial Times
Oil price swings won’t cause stocks to slide | Financial Times:
Depending who you ask about oil, you currently get one of two answers. Either mounting Middle Eastern tensions will soon send prices surging — wreaking havoc on the world economy. Or faltering global economic growth will crater oil prices. Either way, pundits posit that the global economy — and stocks — will suffer. No.
Oil prices may swing, but investors should expect little economic fallout. Here’s why I think oil has lost its famed economic power of yesteryear.
Wild oil price swings over the past 12 months caused confusion. Between mid-August and early October last year, Brent crude oil prices jumped 25.9 per cent as folks feared the US president Donald Trump’s Iran sanctions would squeeze supply. Pundits projected prices would keep climbing. Instead, they plunged -41.2 per cent through year-end, as the global stock market correction in the fourth quarter stoked recession and demand fears.
Depending who you ask about oil, you currently get one of two answers. Either mounting Middle Eastern tensions will soon send prices surging — wreaking havoc on the world economy. Or faltering global economic growth will crater oil prices. Either way, pundits posit that the global economy — and stocks — will suffer. No.
Oil prices may swing, but investors should expect little economic fallout. Here’s why I think oil has lost its famed economic power of yesteryear.
Wild oil price swings over the past 12 months caused confusion. Between mid-August and early October last year, Brent crude oil prices jumped 25.9 per cent as folks feared the US president Donald Trump’s Iran sanctions would squeeze supply. Pundits projected prices would keep climbing. Instead, they plunged -41.2 per cent through year-end, as the global stock market correction in the fourth quarter stoked recession and demand fears.
#Saudi stocks attract billions of dollars in inflows | Financial Times
Saudi stocks attract billions of dollars in inflows | Financial Times:
Investors have flooded into Saudi stocks this year after the kingdom’s share market was included in widely followed benchmarks that guide trillions of dollars in assets.
Mutual and exchange traded funds that invest in companies on Riyadh’s Tadawul stock exchange have rocketed to $4.8bn in assets from just $356m at the start of the year, according to EPFR Global data. The growth comes after indexing groups MSCI, FTSE Russell and S&P Dow Jones Indices included the stocks in popular emerging markets benchmarks and as the government has eased rules governing foreign ownership of shares.
The surge in assets reflects the heft that index providers wield in guiding investor assets across global financial markets. Inclusion in a benchmark induces active fund managers to buy the stocks to keep pace with the indices they are ranked against, while passive funds automatically hoover up the shares by design.
Investors have flooded into Saudi stocks this year after the kingdom’s share market was included in widely followed benchmarks that guide trillions of dollars in assets.
Mutual and exchange traded funds that invest in companies on Riyadh’s Tadawul stock exchange have rocketed to $4.8bn in assets from just $356m at the start of the year, according to EPFR Global data. The growth comes after indexing groups MSCI, FTSE Russell and S&P Dow Jones Indices included the stocks in popular emerging markets benchmarks and as the government has eased rules governing foreign ownership of shares.
The surge in assets reflects the heft that index providers wield in guiding investor assets across global financial markets. Inclusion in a benchmark induces active fund managers to buy the stocks to keep pace with the indices they are ranked against, while passive funds automatically hoover up the shares by design.
#Saudi Private School Operator Jumps 10% in Riyadh Trading Debut - Bloomberg
Saudi Private School Operator Jumps 10% in Riyadh Trading Debut - Bloomberg:
One of Saudi Arabia’s biggest private-school operators surged in its first day of trading in Riyadh, the latest evidence of a push by the local exchange to attract smaller companies.
Shares of Ataa Educational Co. rose 10% shortly after open, the maximum allowed for the session. Twelve million shares were sold at 29 riyals apiece in an initial public offering, raising 348 million riyals ($93 million).
The education company is the fourth to list in the kingdom’s capital this year, with all deals involving share sales of less than $700 million. The bourse is attempting to add more names to the biggest stock exchange in the Middle East and Africa and expects 2019 to be one of the best in the past five years for new deals, its head said in an April interview.
One of Saudi Arabia’s biggest private-school operators surged in its first day of trading in Riyadh, the latest evidence of a push by the local exchange to attract smaller companies.
Shares of Ataa Educational Co. rose 10% shortly after open, the maximum allowed for the session. Twelve million shares were sold at 29 riyals apiece in an initial public offering, raising 348 million riyals ($93 million).
The education company is the fourth to list in the kingdom’s capital this year, with all deals involving share sales of less than $700 million. The bourse is attempting to add more names to the biggest stock exchange in the Middle East and Africa and expects 2019 to be one of the best in the past five years for new deals, its head said in an April interview.
Oil rises for fifth straight day as market awaits Fed, stockpiles fall - Reuters
Oil rises for fifth straight day as market awaits Fed, stockpiles fall - Reuters:
Oil prices rose for a fifth day on Wednesday, buoyed by a bigger-than-expected drop in U.S. inventories and as investors awaited a widely expected cut in interest rates by the U.S. Federal Reserve, the first in more than 10 years.
Brent crude LCOc1 was up 57 cents, or 0.9%, at $65.29 a barrel by 0716 GMT.
U.S. West Texas Intermediate crude CLc1 gained 41 cents, or 0.7%, to $58.46 a barrel.
“The market is quite optimistic leading into what the Fed is going to do on interest rates and as a result of that we’ll see more demand,” Jonathan Barratt, chief investment officer at Probis Group in Sydney, said by telephone, referring to the widely expected cut.
Oil prices rose for a fifth day on Wednesday, buoyed by a bigger-than-expected drop in U.S. inventories and as investors awaited a widely expected cut in interest rates by the U.S. Federal Reserve, the first in more than 10 years.
Brent crude LCOc1 was up 57 cents, or 0.9%, at $65.29 a barrel by 0716 GMT.
U.S. West Texas Intermediate crude CLc1 gained 41 cents, or 0.7%, to $58.46 a barrel.
“The market is quite optimistic leading into what the Fed is going to do on interest rates and as a result of that we’ll see more demand,” Jonathan Barratt, chief investment officer at Probis Group in Sydney, said by telephone, referring to the widely expected cut.
#Dubai-based GEMS Education issues $900mln bonds | ZAWYA MENA Edition
Dubai-based GEMS Education issues $900mln bonds | ZAWYA MENA Edition:
Dubai-based GEMS Education has raised $900 million in senior secured notes maturing in 2026, a document issued by one of the banks leading the deal showed.
The bonds, which were priced late on Tuesday, offer a yield of 7.125%, according to the document.
Goldman Sachs GS.N was sole bookrunner and global coordinator for the transaction. Other banks involved in arranging the deal were Credit Suisse - as global coordinator and joint bookrunner - and Citi, Emirates NBD, and HSBC as joint bookrunners.
Dubai-based GEMS Education has raised $900 million in senior secured notes maturing in 2026, a document issued by one of the banks leading the deal showed.
The bonds, which were priced late on Tuesday, offer a yield of 7.125%, according to the document.
Goldman Sachs GS.N was sole bookrunner and global coordinator for the transaction. Other banks involved in arranging the deal were Credit Suisse - as global coordinator and joint bookrunner - and Citi, Emirates NBD, and HSBC as joint bookrunners.
#Oman to delay VAT to 2021 amid sluggish growth - Reuters
Oman to delay VAT to 2021 amid sluggish growth - Reuters:
Oman plans to introduce value-added tax in 2021, it said in a document, further delaying a fiscal consolidation measure that economists say could be politically sensitive at a time of sluggish growth and high unemployment.
All six Gulf Arab states agreed to introduce 5% VAT in 2018 after a slump in oil prices hit their revenues, but Oman, whose financial position is the weakest of the six, delayed its tax to 2019.
Moody’s, Fitch and S&P Global Ratings have said they expect Oman, rated junk by all three major rating agencies, to introduce VAT in 2020.
Oman plans to introduce value-added tax in 2021, it said in a document, further delaying a fiscal consolidation measure that economists say could be politically sensitive at a time of sluggish growth and high unemployment.
All six Gulf Arab states agreed to introduce 5% VAT in 2018 after a slump in oil prices hit their revenues, but Oman, whose financial position is the weakest of the six, delayed its tax to 2019.
Moody’s, Fitch and S&P Global Ratings have said they expect Oman, rated junk by all three major rating agencies, to introduce VAT in 2020.
MENA fund managers to boost #UAE investments, bearish on #Saudi: Reuters poll - Reuters
MENA fund managers to boost UAE investments, bearish on Saudi: Reuters poll - Reuters:
Middle Eastern funds plan to increase their investments in the United Arab Emirates and decrease their investments in Saudi Arabia, while keeping their exposure to other countries in the region at current levels, according to a Reuters poll.
Seven of the 10 fund managers polled said they would increase their investments in the United Arab Emirates, building on a trend over recent months.
Dubai was one of the worst-performing markets globally last year, but has rebounded with its benchmark index .DFMGI up almost 15% so far. On Monday, it had its best day in almost a year, rising 1.2%, buoyed by rising real estate shares.
Middle Eastern funds plan to increase their investments in the United Arab Emirates and decrease their investments in Saudi Arabia, while keeping their exposure to other countries in the region at current levels, according to a Reuters poll.
Seven of the 10 fund managers polled said they would increase their investments in the United Arab Emirates, building on a trend over recent months.
Dubai was one of the worst-performing markets globally last year, but has rebounded with its benchmark index .DFMGI up almost 15% so far. On Monday, it had its best day in almost a year, rising 1.2%, buoyed by rising real estate shares.
#Saudi NCB posts 24% rise in quarterly profit - Reuters
Saudi NCB posts 24% rise in quarterly profit - Reuters:
National Commercial Bank , Saudi Arabia’s biggest lender, posted a 24% rise in second-quarter profit on Wednesday, helped by higher fee and commission income, as well as lower expenses.
The bank reported a net profit of 2.69 billion riyals ($717.24 million) in the quarter ended June 30, compared to 2.17 billion riyals in the same quarter a year earlier.
EFG Hermes had projected a net profit of 2.63 billion riyals for the second quarter.
National Commercial Bank , Saudi Arabia’s biggest lender, posted a 24% rise in second-quarter profit on Wednesday, helped by higher fee and commission income, as well as lower expenses.
The bank reported a net profit of 2.69 billion riyals ($717.24 million) in the quarter ended June 30, compared to 2.17 billion riyals in the same quarter a year earlier.
EFG Hermes had projected a net profit of 2.63 billion riyals for the second quarter.
Tuesday 30 July 2019
Oil rises on expectations of Fed rate cut, another U.S crude drawdown - Reuters
Oil rises on expectations of Fed rate cut, another U.S crude drawdown - Reuters:
Oil prices rose about 2% to a two-week high on Tuesday on optimism the U.S. Federal Reserve will cut interest rates this week for the first time in more than 10 years, boosting demand expectations in the world’s biggest oil user.
Meanwhile, ahead of weekly data, crude oil inventories in the United States were forecast to have dropped for a seventh straight week.
On its second-to-last day as the front-month contract, Brent LCOc1 futures for September delivery gained $1.01, or 1.6%, to settle at $64.72 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 gained $1.18, or 2.1%, to settle at $58.05.
That put both contracts up for a fourth day in a row to their highest closes since July 15.
Oil prices rose about 2% to a two-week high on Tuesday on optimism the U.S. Federal Reserve will cut interest rates this week for the first time in more than 10 years, boosting demand expectations in the world’s biggest oil user.
Meanwhile, ahead of weekly data, crude oil inventories in the United States were forecast to have dropped for a seventh straight week.
On its second-to-last day as the front-month contract, Brent LCOc1 futures for September delivery gained $1.01, or 1.6%, to settle at $64.72 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 gained $1.18, or 2.1%, to settle at $58.05.
That put both contracts up for a fourth day in a row to their highest closes since July 15.
#Saudi Arabian wealth fund to invest in NHS chatbot maker Babylon Health | Financial Times
Saudi Arabian wealth fund to invest in NHS chatbot maker Babylon Health | Financial Times:
Saudi Arabia’s sovereign wealth fund is in advanced discussions to invest in the UK’s Babylon Health, a digital health start-up used by the National Health Service, according to people with direct knowledge of its plans.
The investment, which is part of a new funding round for the UK start-up that will run into hundreds of millions of dollars, could be announced as soon as later this week, these people said.
Founded in 2013 by Ali Parsa, a British-Iranian entrepreneur and banker, Babylon has developed a “chatbot” that checks the symptoms of patients used by the NHS. It also offers a service connecting patients in south-west London to doctors through video calls on smartphones.
Saudi Arabia’s sovereign wealth fund is in advanced discussions to invest in the UK’s Babylon Health, a digital health start-up used by the National Health Service, according to people with direct knowledge of its plans.
The investment, which is part of a new funding round for the UK start-up that will run into hundreds of millions of dollars, could be announced as soon as later this week, these people said.
Founded in 2013 by Ali Parsa, a British-Iranian entrepreneur and banker, Babylon has developed a “chatbot” that checks the symptoms of patients used by the NHS. It also offers a service connecting patients in south-west London to doctors through video calls on smartphones.
#Saudi Quarterly Budget Deficit Widens as Capital Spending Jumps - Bloomberg
Saudi Quarterly Budget Deficit Widens as Capital Spending Jumps - Bloomberg:
Saudi Arabia’s budget deficit widened in the second quarter as officials ramp up spending to stimulate a sluggish economy.
The budget gap of 33.5 billion riyals ($8.9 billion) compared to 7.4 billion riyals in the same period last year, the Finance Ministry said in a statement on Tuesday. Spending rose 5% from the second quarter last year, with significant jumps in capital spending and outlays on subsidies and social benefits. Oil revenue dropped 5% year-on-year and non-oil revenue declined 4%.
The data suggests that a long-promised injection of government cash is finally materializing as officials try to boost economic growth in the world’s largest oil exporter. Gross domestic product is expected to grow 1.7% this year, a second year of expansion after contracting 0.7% in 2017, according to data compiled by Bloomberg.
Saudi Arabia’s budget deficit widened in the second quarter as officials ramp up spending to stimulate a sluggish economy.
The budget gap of 33.5 billion riyals ($8.9 billion) compared to 7.4 billion riyals in the same period last year, the Finance Ministry said in a statement on Tuesday. Spending rose 5% from the second quarter last year, with significant jumps in capital spending and outlays on subsidies and social benefits. Oil revenue dropped 5% year-on-year and non-oil revenue declined 4%.
The data suggests that a long-promised injection of government cash is finally materializing as officials try to boost economic growth in the world’s largest oil exporter. Gross domestic product is expected to grow 1.7% this year, a second year of expansion after contracting 0.7% in 2017, according to data compiled by Bloomberg.
Oil rises on expectations of Fed rate cut, another U.S. crude drawdown - Reuters
Oil rises on expectations of Fed rate cut, another U.S. crude drawdown - Reuters:
Oil prices rose on Tuesday, on track to close at a two-week high, on optimism the U.S. Federal Reserve will cut interest rates this week for the first time in more than 10 years, boosting demand expectations in the world’s biggest oil user.
Meanwhile, ahead of weekly data, crude oil inventories in the United States were also forecast to have dropped for a seventh straight week.
Analysts also noted the market was up on optimism over U.S.-China trade talks, which could boost oil demand around the world.
On its second to last day as the front-month Brent LCOc1 futures for September delivery were up 42 cents, or 0.7%, at $64.13 a barrel at 12:06 p.m. EDT (1606 GMT), while U.S. West Texas Intermediate (WTI) crude CLc1 rose 33 cents, or 0.6% to $57.20.
Oil prices rose on Tuesday, on track to close at a two-week high, on optimism the U.S. Federal Reserve will cut interest rates this week for the first time in more than 10 years, boosting demand expectations in the world’s biggest oil user.
Meanwhile, ahead of weekly data, crude oil inventories in the United States were also forecast to have dropped for a seventh straight week.
Analysts also noted the market was up on optimism over U.S.-China trade talks, which could boost oil demand around the world.
On its second to last day as the front-month Brent LCOc1 futures for September delivery were up 42 cents, or 0.7%, at $64.13 a barrel at 12:06 p.m. EDT (1606 GMT), while U.S. West Texas Intermediate (WTI) crude CLc1 rose 33 cents, or 0.6% to $57.20.
MIDEAST STOCKS- #Saudi edges up on strong earnings, #Dubai extends gains - Reuters
MIDEAST STOCKS-Saudi edges up on strong earnings, Dubai extends gains - Reuters:
Saudi Arabian stocks edged up on
Tuesday, recovering from the previous session's biggest
single-day loss in a month, as strong earnings from two lenders
boosted most bank shares.
Dubai's bourse consolidated gains after touching nearly a
year-high on Monday.
The Saudi index was up 0.1%. Al Rajhi Bank
gained 1% after it posted a more than 4% rise in second-quarter
profit, as revenue from special commissions and investments
increased.
Saudi Arabian stocks edged up on
Tuesday, recovering from the previous session's biggest
single-day loss in a month, as strong earnings from two lenders
boosted most bank shares.
Dubai's bourse consolidated gains after touching nearly a
year-high on Monday.
The Saudi index was up 0.1%. Al Rajhi Bank
gained 1% after it posted a more than 4% rise in second-quarter
profit, as revenue from special commissions and investments
increased.
Singapore’s GIC invests in $5bn #AbuDhabi pipeline unit | Financial Times
Singapore’s GIC invests in $5bn Abu Dhabi pipeline unit | Financial Times:
Singapore’s GIC has signed a deal to invest in a nearly $5bn pipeline infrastructure entity that Abu Dhabi’s national oil company is setting up with Wall Street groups BlackRock and KKR.
GIC, one of the largest institutional investors in the world, will invest $600m and will acquire a 6 per cent stake in the newly formed entity called ADNOC Oil Pipelines.
BlackRock and KKR own 40 per cent while ADNOC owns 51 per cent, ADNOC said on Tuesday. The Abu Dhabi Retirement Pensions and Benefits Fund said earlier this year it would acquire a 3 per cent stake.
Singapore’s GIC has signed a deal to invest in a nearly $5bn pipeline infrastructure entity that Abu Dhabi’s national oil company is setting up with Wall Street groups BlackRock and KKR.
GIC, one of the largest institutional investors in the world, will invest $600m and will acquire a 6 per cent stake in the newly formed entity called ADNOC Oil Pipelines.
BlackRock and KKR own 40 per cent while ADNOC owns 51 per cent, ADNOC said on Tuesday. The Abu Dhabi Retirement Pensions and Benefits Fund said earlier this year it would acquire a 3 per cent stake.
Riyad Bank reports rise in Q2 earnings, beats forecasts | ZAWYA MENA Edition
Riyad Bank reports rise in Q2 earnings, beats forecasts | ZAWYA MENA Edition:
Riyad Bank, Saudi Arabia’s fourth-largest lender by assets, reported a rise in Q2 2019 earnings, beating analysts’ estimates.
The bank’s net profit amounted to 1.5 billion Saudi riyals ($399.96 million), compared to 842 million riyals in Q2 2018, a 78.15 percent increase.
“Earnings were 13 percent ahead of our estimate of SAR1.3bn, driven by stronger net interest income and lower-than-expected provisioning,” Shabbir Malik, a banking analyst at EFG-Hermes, told Zawya.
Riyad Bank, Saudi Arabia’s fourth-largest lender by assets, reported a rise in Q2 2019 earnings, beating analysts’ estimates.
The bank’s net profit amounted to 1.5 billion Saudi riyals ($399.96 million), compared to 842 million riyals in Q2 2018, a 78.15 percent increase.
“Earnings were 13 percent ahead of our estimate of SAR1.3bn, driven by stronger net interest income and lower-than-expected provisioning,” Shabbir Malik, a banking analyst at EFG-Hermes, told Zawya.
UPDATE 2- #Dubai regulator imposes its largest fine over #Abraaj saga - Reuters
UPDATE 2-Dubai regulator imposes its largest fine over Abraaj saga - Reuters:
The Dubai Financial Services Authority (DFSA) said on Tuesday it had fined two entities of private equity firm Abraaj $315 million, the largest financial penalties it had ever imposed.
In the first major fines on Abraaj, which collapsed last year, DFSA imposed a penalty of around $300 million on Abraaj Investment Management Ltd (AIML) and $15.3 million on Abraaj Capital Ltd, the regulator said in a statement.
The fines were imposed for “serious wrongdoing by two Abraaj group companies included carrying out unauthorised activities in the DIFC and misusing investors’ monies,” the regulator said.
The Dubai Financial Services Authority (DFSA) said on Tuesday it had fined two entities of private equity firm Abraaj $315 million, the largest financial penalties it had ever imposed.
In the first major fines on Abraaj, which collapsed last year, DFSA imposed a penalty of around $300 million on Abraaj Investment Management Ltd (AIML) and $15.3 million on Abraaj Capital Ltd, the regulator said in a statement.
The fines were imposed for “serious wrongdoing by two Abraaj group companies included carrying out unauthorised activities in the DIFC and misusing investors’ monies,” the regulator said.
Oil prices boosted by expectations of Fed rate cut - Reuters
Oil prices boosted by expectations of Fed rate cut - Reuters:
Oil prices rose for a fourth day on Tuesday on optimism the U.S. Federal Reserve will this week cut interest rates for the first time in more than 10 years, supporting fuel consumption in the world’s biggest oil user.
Brent crude LCOc1 rose 63 cents to $64.34 a barrel by 1127 GMT. It is set for a monthly fall of more than 3%, however, due to lingering worries about oil demand.
U.S. crude CLc1 was up 46 cents at $57.33 a barrel, but also set for a monthly decrease of around 1.8%.
“Regarding the Fed, the market has priced in a 25 basis point cut for Wednesday,” global oil strategist at BNP Paribas in London Harry Tchilinguirian told the Reuters Global Oil Forum.
Oil prices rose for a fourth day on Tuesday on optimism the U.S. Federal Reserve will this week cut interest rates for the first time in more than 10 years, supporting fuel consumption in the world’s biggest oil user.
Brent crude LCOc1 rose 63 cents to $64.34 a barrel by 1127 GMT. It is set for a monthly fall of more than 3%, however, due to lingering worries about oil demand.
U.S. crude CLc1 was up 46 cents at $57.33 a barrel, but also set for a monthly decrease of around 1.8%.
“Regarding the Fed, the market has priced in a 25 basis point cut for Wednesday,” global oil strategist at BNP Paribas in London Harry Tchilinguirian told the Reuters Global Oil Forum.
#Saudi Sulaiman Al-Habib Medical in IPO talks with banks: sources - Reuters
Saudi Sulaiman Al-Habib Medical in IPO talks with banks: sources - Reuters:
Saudi Arabia’s Sulaiman Al Habib Medical Group, one of the biggest hospital operators in the Middle East, is talking to banks about a potential listing in Riyadh that could value the company at $2.5 billion, three sources familiar with the matter said.
The group, which operates hospitals and clinics in Saudi Arabia, the United Arab Emirates and Bahrain, has been in preliminary talks with foreign and local banks for listing and potential advisory roles, the sources said.
The company, which abandoned plans to float in 2014 as oil prices dropped and local market conditions deteriorated, could sell as much as a 30% stake in the IPO, although one source said it could sell less if Saudi regulators permit.
Saudi Arabia’s Sulaiman Al Habib Medical Group, one of the biggest hospital operators in the Middle East, is talking to banks about a potential listing in Riyadh that could value the company at $2.5 billion, three sources familiar with the matter said.
The group, which operates hospitals and clinics in Saudi Arabia, the United Arab Emirates and Bahrain, has been in preliminary talks with foreign and local banks for listing and potential advisory roles, the sources said.
The company, which abandoned plans to float in 2014 as oil prices dropped and local market conditions deteriorated, could sell as much as a 30% stake in the IPO, although one source said it could sell less if Saudi regulators permit.
AGSIW | Diversified Investment in #UAE Shaping China’s Economic Role in the Gulf
AGSIW | Diversified Investment in UAE Shaping China’s Economic Role in the Gulf:
Abu Dhabi Crown Prince Mohammed bin Zayed al-Nahyan’s three-day state visit to Beijing reaffirmed the United Arab Emirate’s central role in shaping China’s economic influence in the Gulf. The UAE-China Economic Forum, which the UAE Ministry of Economy organized to take place alongside the state visit, led to the signing of 16 memorandums of understanding. Mohamed Alabbar, the forum’s guest of honor and chairman of the Dubai-based Emaar Properties, announced that his firm will implement an $11 billion project with the Beijing Daxing International Airport over the next 10 years. The Abu Dhabi National Oil Company and the China National Offshore Oil Corporation agreed to boost collaboration on upstream, downstream, and liquefied natural gas activities. This flurry of commercial agreements came three months after Mohammed bin Rashid al-Maktoum, the UAE’s vice president and prime minister as well as ruler of Dubai, traveled to Beijing, where he led an Emirati delegation at the Second Belt and Road Conference for International Cooperation.
Abu Dhabi Crown Prince Mohammed bin Zayed al-Nahyan’s three-day state visit to Beijing reaffirmed the United Arab Emirate’s central role in shaping China’s economic influence in the Gulf. The UAE-China Economic Forum, which the UAE Ministry of Economy organized to take place alongside the state visit, led to the signing of 16 memorandums of understanding. Mohamed Alabbar, the forum’s guest of honor and chairman of the Dubai-based Emaar Properties, announced that his firm will implement an $11 billion project with the Beijing Daxing International Airport over the next 10 years. The Abu Dhabi National Oil Company and the China National Offshore Oil Corporation agreed to boost collaboration on upstream, downstream, and liquefied natural gas activities. This flurry of commercial agreements came three months after Mohammed bin Rashid al-Maktoum, the UAE’s vice president and prime minister as well as ruler of Dubai, traveled to Beijing, where he led an Emirati delegation at the Second Belt and Road Conference for International Cooperation.
MIDEAST STOCKS-Positive bank results boost #Saudi, other Gulf markets mixed - Reuters
MIDEAST STOCKS-Positive bank results boost Saudi, other Gulf markets mixed - Reuters:
Saudi Arabia’s stock market rose on Tuesday in a recovery from the previous session’s biggest single-day loss in a month as strong earnings from two lenders boosted bank shares, while other Gulf bourses were mixed.
The Saudi index was up 0.4%. Al Rajhi Bank gained 1.3% after it posted a more than 4% rise in second-quarter profit as revenue from special commissions and investments increased.
Riyad Bank, whose profit surged over the same period on a 22.9% jump in operating income, added 1.7%.
Saudi Arabia’s stock market rose on Tuesday in a recovery from the previous session’s biggest single-day loss in a month as strong earnings from two lenders boosted bank shares, while other Gulf bourses were mixed.
The Saudi index was up 0.4%. Al Rajhi Bank gained 1.3% after it posted a more than 4% rise in second-quarter profit as revenue from special commissions and investments increased.
Riyad Bank, whose profit surged over the same period on a 22.9% jump in operating income, added 1.7%.
#Dubai Financial Services Authority Fines Two #Abraaj Group Companies A Total Of USD 315 Million For Deceiving Investors And The Regulator
Dubai Financial Services Authority Fines Two Abraaj Group Companies A Total Of USD 315 Million For Deceiving Investors And The Regulator:
The Dubai Financial Services Authority (DFSA) has today imposed financial penalties of USD 299,300,000 (AED 1,098,431,000) and USD 15,275,925 (AED 56,062,645) on Abraaj Investment Management Limited (AIML) and Abraaj Capital Limited (ACLD), respectively.
The DFSA investigation, which commenced in January 2018, was complex and spanned multiple jurisdictions, and found that AIML, a Cayman Islands company now in provisional liquidation:
The Dubai Financial Services Authority (DFSA) has today imposed financial penalties of USD 299,300,000 (AED 1,098,431,000) and USD 15,275,925 (AED 56,062,645) on Abraaj Investment Management Limited (AIML) and Abraaj Capital Limited (ACLD), respectively.
The DFSA investigation, which commenced in January 2018, was complex and spanned multiple jurisdictions, and found that AIML, a Cayman Islands company now in provisional liquidation:
- carried out unauthorised financial services, including fund management, within and from the DIFC;
- actively misled and deceived investors in Abraaj funds over an extended period;
- misused investors’ monies in various funds to meet its own operating and other expenses, which included payments to entities connected to some members of AIML staff, and to meet ever-increasing cash shortfalls; and
- concealed this by providing misleading financial information to investors and making false statements about the use of money drawn down from investors and distributions.
Etihad Finds Solace in London Demand as Global Network Shrinks - Bloomberg
Etihad Finds Solace in London Demand as Global Network Shrinks - Bloomberg:
Etihad Airways may be cutting routes and slashing jet orders after racking up billions of dollars in losses, but one market at least is providing the Abu Dhabi-based carrier with much-needed growth: the U.K.
Etihad will offer a fourth daily trip to London year-round for the first time after introducing the service in May to tap the usual jump in summer demand. Flights to Heathrow airport will be operated by Boeing Co. 787-9 planes, adding 299 seats to the 1,458 already available on three Airbus SE A380 superjumbos.
The embattled carrier scrapped $21 billion of jet orders in February amid a restructuring that’s seen it cut thousands of jobs and eliminate more than a dozen marginal routes. The move to swell London capacity means the extra daily service will be maintained beyond the planned cutoff point of Oct. 26 -- just days before the new deadline for Britain to quit the European Union.
Etihad Airways may be cutting routes and slashing jet orders after racking up billions of dollars in losses, but one market at least is providing the Abu Dhabi-based carrier with much-needed growth: the U.K.
Etihad will offer a fourth daily trip to London year-round for the first time after introducing the service in May to tap the usual jump in summer demand. Flights to Heathrow airport will be operated by Boeing Co. 787-9 planes, adding 299 seats to the 1,458 already available on three Airbus SE A380 superjumbos.
The embattled carrier scrapped $21 billion of jet orders in February amid a restructuring that’s seen it cut thousands of jobs and eliminate more than a dozen marginal routes. The move to swell London capacity means the extra daily service will be maintained beyond the planned cutoff point of Oct. 26 -- just days before the new deadline for Britain to quit the European Union.
#Dubai Fines Collapsed Private Equity Firm #Abraaj $315 Million - Bloomberg
Dubai Fines Collapsed Private Equity Firm Abraaj $315 Million - Bloomberg:
The Dubai Financial Services Authority has fined collapsed private-equity firm Abraaj a total of $315 million, citing serious wrongdoing by two Abraaj companies. It is the largest financial penalty ever imposed by the authority.
The Dubai Financial Services Authority has fined collapsed private-equity firm Abraaj a total of $315 million, citing serious wrongdoing by two Abraaj companies. It is the largest financial penalty ever imposed by the authority.
Reserves in #UAE Central Bank total $83bln in June 2019 | ZAWYA MENA Edition
Reserves in UAE Central Bank total $83bln in June 2019 | ZAWYA MENA Edition:
The value of total reserves in the UAE Central Bank rose to around AED305 billion ($83 billion) at the end of the first half of 2019, compared to AED298 billion in May, an increase of 2.5 percent.
According to the "Banking Indexes Report" issued by the bank on Monday, this increase was due to the rise in the value of certificates of deposit, from AED147.1 billion to AED155.8 billion at the end of June, while the total balance of current accounts in Emirati banks increased to AED24.7 billion.
Meanwhile, the balance of reserve requirements in Emirati banks decreased from AED126.3 billion in May to a current value of AED124.8 billion. With regards to credit, the report highlighted an increase in the total balance of credit provided to the industrial and commercial sector, amounting to around AED815.6 billion at the end of June, a rise of 1.1 percent compared to the previous month, while the government’s credit value reached AED201.6 billion.
The value of total reserves in the UAE Central Bank rose to around AED305 billion ($83 billion) at the end of the first half of 2019, compared to AED298 billion in May, an increase of 2.5 percent.
According to the "Banking Indexes Report" issued by the bank on Monday, this increase was due to the rise in the value of certificates of deposit, from AED147.1 billion to AED155.8 billion at the end of June, while the total balance of current accounts in Emirati banks increased to AED24.7 billion.
Meanwhile, the balance of reserve requirements in Emirati banks decreased from AED126.3 billion in May to a current value of AED124.8 billion. With regards to credit, the report highlighted an increase in the total balance of credit provided to the industrial and commercial sector, amounting to around AED815.6 billion at the end of June, a rise of 1.1 percent compared to the previous month, while the government’s credit value reached AED201.6 billion.
#AbuDhabi's $163mln fund aims to spur investments in leisure, business events | ZAWYA MENA Edition
Abu Dhabi's $163mln fund aims to spur investments in leisure, business events | ZAWYA MENA Edition:
A “mega events fund” has been announced by Abu Dhabi’s Department of Culture and Tourism (DCT) to enhance the city’s portfolio of leisure and business events and to attract global event organisers.
The 600-million-dirham ($163.4 million) fund is part of the Ghadan 21 programme, which seeks to accelerate Abu Dhabi’s economy and make it a preferred world destination for people to do business, invest, live, work and visit.
The new financial stimulus will focus exclusively on the development of major entertainment and business activities and festivals in the emirate, a statement from DCT Abu Dhabi said.
A “mega events fund” has been announced by Abu Dhabi’s Department of Culture and Tourism (DCT) to enhance the city’s portfolio of leisure and business events and to attract global event organisers.
The 600-million-dirham ($163.4 million) fund is part of the Ghadan 21 programme, which seeks to accelerate Abu Dhabi’s economy and make it a preferred world destination for people to do business, invest, live, work and visit.
The new financial stimulus will focus exclusively on the development of major entertainment and business activities and festivals in the emirate, a statement from DCT Abu Dhabi said.
#Qatar Petroleum buys stake in Total's Guyana assets; government reviewing deal - Reuters
Qatar Petroleum buys stake in Total's Guyana assets; government reviewing deal - Reuters:
Qatar Petroleum said on Monday it had agreed a deal with Total SA to acquire a stake in the French firm’s two oil and gas blocks offshore Guyana, but the South American country’s government said it was still reviewing the deal.
Qatar Petroleum said it would hold 40% of Total’s 25% participating interest in the Orinduik block, and 40 percent of Total’s 25% participating interest in the neighboring Kanuku. The block’s other partners are Tullow Oil Plc, with a 60% participating interest and EcoAtlantic with a 15% interest.
The statement from Qatar Petroleum did not contain any financial terms.
Mark Bynoe, Guyana’s director of energy, said the government was “studying” a letter from Total detailing the transaction but did not yet “understand the full implications” of the deal.
Qatar Petroleum said on Monday it had agreed a deal with Total SA to acquire a stake in the French firm’s two oil and gas blocks offshore Guyana, but the South American country’s government said it was still reviewing the deal.
Qatar Petroleum said it would hold 40% of Total’s 25% participating interest in the Orinduik block, and 40 percent of Total’s 25% participating interest in the neighboring Kanuku. The block’s other partners are Tullow Oil Plc, with a 60% participating interest and EcoAtlantic with a 15% interest.
The statement from Qatar Petroleum did not contain any financial terms.
Mark Bynoe, Guyana’s director of energy, said the government was “studying” a letter from Total detailing the transaction but did not yet “understand the full implications” of the deal.
Singapore to stop 'Sling' LNG indices, sheds hopes of main price hub - Reuters
Singapore to stop 'Sling' LNG indices, sheds hopes of main price hub - Reuters:
Singapore Exchange will stop producing and publishing its spot price indices - Sling - for liquefied natural gas (LNG), less than four years after their launch, dashing the city-state’s hopes of becoming Asia’s main pricing hub for the fuel.
Sling - short for SGX LNG Index Group - indices will be published until Oct. 31 this year, provided “there is sufficient data for an accurate and robust index to be published”, Energy Market Company (EMC) said in an undated statement on its website.
Sling was developed jointly by EMC, the market operator of Singapore’s wholesale electricity market, and Singapore Exchange (SGX) SGX.SI, and introduced in late 2015 in a bid to develop Singapore as a price hub for the super-chilled fuel. EMC is a wholly owned unit of Asian Gateway Investments, which is also a SGX subsidiary.
Singapore Exchange will stop producing and publishing its spot price indices - Sling - for liquefied natural gas (LNG), less than four years after their launch, dashing the city-state’s hopes of becoming Asia’s main pricing hub for the fuel.
Sling - short for SGX LNG Index Group - indices will be published until Oct. 31 this year, provided “there is sufficient data for an accurate and robust index to be published”, Energy Market Company (EMC) said in an undated statement on its website.
Sling was developed jointly by EMC, the market operator of Singapore’s wholesale electricity market, and Singapore Exchange (SGX) SGX.SI, and introduced in late 2015 in a bid to develop Singapore as a price hub for the super-chilled fuel. EMC is a wholly owned unit of Asian Gateway Investments, which is also a SGX subsidiary.
Senate fails to override Trump vetoes of bills stopping #Saudi, #UAE weapons sales - Reuters
Senate fails to override Trump vetoes of bills stopping Saudi weapons sales - Reuters:
The U.S. Senate on Monday failed to override President Donald Trump’s vetoes of legislation passed by Congress that would have blocked the sales of certain weapons to Saudi Arabia.
In the first of three separate efforts to overturn the Republican president’s vetoes, supporters failed by a vote of 45-40, well short of the two-thirds needed. Five of the chamber’s 53 Republicans joined Democrats in voting to override Trump.
The vote tallies were similar in the two subsequent roll-call votes to override vetoes of legislation blocking additional weapons sales to Saudi Arabia, the United Arab Emirates and other countries.
The U.S. Senate on Monday failed to override President Donald Trump’s vetoes of legislation passed by Congress that would have blocked the sales of certain weapons to Saudi Arabia.
In the first of three separate efforts to overturn the Republican president’s vetoes, supporters failed by a vote of 45-40, well short of the two-thirds needed. Five of the chamber’s 53 Republicans joined Democrats in voting to override Trump.
The vote tallies were similar in the two subsequent roll-call votes to override vetoes of legislation blocking additional weapons sales to Saudi Arabia, the United Arab Emirates and other countries.
Oil prices rise as market eyes likely Fed rate cut - Reuters
Oil prices rise as market eyes likely Fed rate cut - Reuters:
Oil prices rose for a fourth day on Tuesday on optimism the U.S. Federal Reserve will this week cut interest rates for the first time in more than 10 years, supporting fuel demand growth in the world’s biggest oil user.
Brent crude LCOc1 rose 46 cents, or 0.7%, to $64.17 a barrel by 0651 GMT, after gaining 0.4% the previous session.
U.S. crude CLc1 was up 41 cents or 0.7%, at $57.28 a barrel, having risen 1.2% on Monday.
Lower U.S. interest rates would “support a continuation in global expansionary activities and fuel demand growth” for the second half of 2019, Benjamin Lu, an analyst at Phillip Futures in Singapore, said in a note.
Oil prices rose for a fourth day on Tuesday on optimism the U.S. Federal Reserve will this week cut interest rates for the first time in more than 10 years, supporting fuel demand growth in the world’s biggest oil user.
Brent crude LCOc1 rose 46 cents, or 0.7%, to $64.17 a barrel by 0651 GMT, after gaining 0.4% the previous session.
U.S. crude CLc1 was up 41 cents or 0.7%, at $57.28 a barrel, having risen 1.2% on Monday.
Lower U.S. interest rates would “support a continuation in global expansionary activities and fuel demand growth” for the second half of 2019, Benjamin Lu, an analyst at Phillip Futures in Singapore, said in a note.
Monday 29 July 2019
Oil edges up on prospect of U.S. interest rate cut - Reuters
Oil edges up on prospect of U.S. interest rate cut - Reuters:
Oil prices rose on Monday as the prospect of an expected interest rate cut by the U.S. Federal Reserve overshadowed pessimism over U.S.-China trade talks and worries about slower global economic growth.
Brent crude LCOc1 gained 25 cents to settle at $63.71 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 67 cents to settle at $56.87 a barrel.
“Prices appear to be treading water ahead of this week’s events,” said John Kilduff, partner at Again Capital Management.
Oil prices rose on Monday as the prospect of an expected interest rate cut by the U.S. Federal Reserve overshadowed pessimism over U.S.-China trade talks and worries about slower global economic growth.
Brent crude LCOc1 gained 25 cents to settle at $63.71 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 67 cents to settle at $56.87 a barrel.
“Prices appear to be treading water ahead of this week’s events,” said John Kilduff, partner at Again Capital Management.
INTERVIEW: Major Gulf sovereign wealth funds gear up for ESG investing | ZAWYA MENA Edition
INTERVIEW: Major Gulf sovereign wealth funds gear up for ESG investing | ZAWYA MENA Edition:
Despite being hydrocarbon-based economies, four Gulf countries are laying the groundwork to be aligned to Environmental, Social, and Governance (ESG) standards through their sovereign wealth funds’ (SWF) undertakings, global head of ESG Investment at the world’s fifth largest asset manager said.
Speaking to Zawya at State Street Global Advisors’ (SSGA) office in Abu Dhabi, Nathalie Wallace sounded optimistic about the outlook of the region’s integration of ESG risks and investing into their economies.
“We think tremendous change has taken place in Gulf region in terms of ESG adoption over the last two or three years. It has been driven by government-led ambitions to change the way capital is allocated, companies are run, and integrating those ESG factors and metrics in the way companies drive their strategies,” Wallace said.
Despite being hydrocarbon-based economies, four Gulf countries are laying the groundwork to be aligned to Environmental, Social, and Governance (ESG) standards through their sovereign wealth funds’ (SWF) undertakings, global head of ESG Investment at the world’s fifth largest asset manager said.
Speaking to Zawya at State Street Global Advisors’ (SSGA) office in Abu Dhabi, Nathalie Wallace sounded optimistic about the outlook of the region’s integration of ESG risks and investing into their economies.
“We think tremendous change has taken place in Gulf region in terms of ESG adoption over the last two or three years. It has been driven by government-led ambitions to change the way capital is allocated, companies are run, and integrating those ESG factors and metrics in the way companies drive their strategies,” Wallace said.
Oil edges up on prospect of U.S. interest rate cut - Reuters
Oil edges up on prospect of U.S. interest rate cut - Reuters:
Oil prices edged higher on Monday as the prospect of an expected interest rate cut by the U.S. Federal Reserve overshadowed pessimism over U.S.-China trade talks and worries about slower global economic growth.
Brent crude LCOc1 rose 7 cents to $63.53 a barrel by 11:12 a.m. EDT (1512 GMT), while U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 15 cents at $56.35 a barrel.
“Prices appear to be treading water ahead of this week’s events,” said John Kilduff, partner at Again Capital Management.
Oil prices edged higher on Monday as the prospect of an expected interest rate cut by the U.S. Federal Reserve overshadowed pessimism over U.S.-China trade talks and worries about slower global economic growth.
Brent crude LCOc1 rose 7 cents to $63.53 a barrel by 11:12 a.m. EDT (1512 GMT), while U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 15 cents at $56.35 a barrel.
“Prices appear to be treading water ahead of this week’s events,” said John Kilduff, partner at Again Capital Management.
MIDEAST STOCKS- #Saudi posts worst day in a month, #Dubai best in nearly a year - Reuters
MIDEAST STOCKS-Saudis post worst day in a month, Dubai best in nearly a year - Reuters:
Saudi Arabia's stock index suffered it
biggest single-day loss in a month amid a host of poor
earnings, while Emaar Properties pushed Dubai's market to nearly
a year-high.
Saudi's index fell 1.5% in its worst day since June
24, with all banking shares dropping and Al Rajhi Bank
plunging 3% in the biggest drag on the index.
Saudi Basic Industries Co (SABIC), the world's
fourth-biggest petrochemicals firm, shed a further 1.6%,
extending losses from the last session after reporting its
lowest quarterly profit since late 2009.
Saudi Arabia's stock index suffered it
biggest single-day loss in a month amid a host of poor
earnings, while Emaar Properties pushed Dubai's market to nearly
a year-high.
Saudi's index fell 1.5% in its worst day since June
24, with all banking shares dropping and Al Rajhi Bank
plunging 3% in the biggest drag on the index.
Saudi Basic Industries Co (SABIC), the world's
fourth-biggest petrochemicals firm, shed a further 1.6%,
extending losses from the last session after reporting its
lowest quarterly profit since late 2009.
ADCB shares retreat as Q2 profit plunges | ZAWYA MENA Edition
ADCB shares retreat as Q2 profit plunges | ZAWYA MENA Edition:
Abu Dhabi Commercial Bank’s (ADCB) net profit for Q2 2019 plunged 10.49 percent triggering a drop in the bank’s shares.
The bank’s Q2 2019 net profit amounted to 1.45 billion dirhams ($394.76 million) compared to 1.62 billion dirhams in the same period last year.
The bank’s shares were trading 1.54 percent lower at 8.95 dirhams by 12:50 GST. It has added 9.68 percent so far since the start of the year 2019.
Abu Dhabi Commercial Bank’s (ADCB) net profit for Q2 2019 plunged 10.49 percent triggering a drop in the bank’s shares.
The bank’s Q2 2019 net profit amounted to 1.45 billion dirhams ($394.76 million) compared to 1.62 billion dirhams in the same period last year.
The bank’s shares were trading 1.54 percent lower at 8.95 dirhams by 12:50 GST. It has added 9.68 percent so far since the start of the year 2019.
Hedge funds dump oil as fragile calm settles on Mideast: Kemp - Reuters
Hedge funds dump oil as fragile calm settles on Mideast: Kemp - Reuters:
Hedge funds sold oil last week, reversing most of the purchases made the week before, as tensions in the Middle East reached a fragile equilibrium and prospect of armed conflict receded.
Hedge fund and other money managers were net sellers of 65 million barrels of futures and options linked to petroleum prices in the week to July 23, after buying 84 million barrels in the week to July 16.
The United Kingdom and Iran have now each detained a tanker and show signs of trying to negotiate a face-saving swap, which makes further seizures by either side unlikely for the time being. Maritime deterrence has been restored.
Hedge funds sold oil last week, reversing most of the purchases made the week before, as tensions in the Middle East reached a fragile equilibrium and prospect of armed conflict receded.
Hedge fund and other money managers were net sellers of 65 million barrels of futures and options linked to petroleum prices in the week to July 23, after buying 84 million barrels in the week to July 16.
The United Kingdom and Iran have now each detained a tanker and show signs of trying to negotiate a face-saving swap, which makes further seizures by either side unlikely for the time being. Maritime deterrence has been restored.
China Feasts on Record #Saudi Crude Imports as Sanctions Hit Iran - Bloomberg
China Feasts on Record Saudi Crude Imports as Sanctions Hit Iran - Bloomberg:
China has tapped Saudi Arabia for a record volume of crude as the world’s biggest exporter plugs a shortage from sanctions-hit Iran.
Asia’s biggest buyer shipped 7.72 million metric tons of crude, or 1.89 million barrels a day, from Saudi Arabia last month, according to data from China’s General Administration of Customs. Shipments from the OPEC producer made up almost a fifth of its total oil purchases in June and was 64% higher than the previous month. Imports from Iran fell to the lowest since May 2010.
China has tapped Saudi Arabia for a record volume of crude as the world’s biggest exporter plugs a shortage from sanctions-hit Iran.
Asia’s biggest buyer shipped 7.72 million metric tons of crude, or 1.89 million barrels a day, from Saudi Arabia last month, according to data from China’s General Administration of Customs. Shipments from the OPEC producer made up almost a fifth of its total oil purchases in June and was 64% higher than the previous month. Imports from Iran fell to the lowest since May 2010.
#Dubai's Jumeirah Cuts 500 Jobs as Tourism Industry Struggles - Bloomberg
Dubai's Jumeirah Cuts 500 Jobs as Tourism Industry Struggles - Bloomberg:
Jumeirah Group LLC cut hundreds of jobs as a slowdown in the emirate’s tourism industry weighs on the operator of Dubai’s sail-shaped Burj Al Arab hotel, according to people familiar with the matter.
The government-owned luxury hotel chain, which manages 24 properties in eight countries, recently shed about 500 jobs, the people said, asking not to be identified as the information is private. Most of the cuts were support roles, they said. Jumeirah has more than 13,500 employees, according to its website.
A spokeswoman for Jumeirah declined to comment.
Dubai’s hotels are struggling as growth in the tourism sector, one of the emirate’s main economic pillars, stalls. Occupancy levels during the second quarter were at their lowest since 2009, while average daily rates and revenue available per room fell to 2003 levels, according to STR, a global hotel data provider. New openings ahead of the 2020 World Expo have also led to oversupply.
Jumeirah Group LLC cut hundreds of jobs as a slowdown in the emirate’s tourism industry weighs on the operator of Dubai’s sail-shaped Burj Al Arab hotel, according to people familiar with the matter.
The government-owned luxury hotel chain, which manages 24 properties in eight countries, recently shed about 500 jobs, the people said, asking not to be identified as the information is private. Most of the cuts were support roles, they said. Jumeirah has more than 13,500 employees, according to its website.
A spokeswoman for Jumeirah declined to comment.
Dubai’s hotels are struggling as growth in the tourism sector, one of the emirate’s main economic pillars, stalls. Occupancy levels during the second quarter were at their lowest since 2009, while average daily rates and revenue available per room fell to 2003 levels, according to STR, a global hotel data provider. New openings ahead of the 2020 World Expo have also led to oversupply.
MIDEAST STOCKS-Poor earnings lead major Gulf markets lower - Reuters
MIDEAST STOCKS-Poor earnings lead major Gulf markets lower - Reuters:
Major Gulf markets dropped on Monday as a string of disappointing corporate earnings hurt the investor sentiment in the region, with Saudi Arabia underperforming other bourses amid falling banking shares.
Saudi’s index was down 0.7% as all its lenders slipped into negative territory with Al Rajhi Bank dropping 1.7% in the biggest drag on the index.
Dallah Healthcare was down 3.8% after its second-quarter profit fell, hurt by increased operating and financing costs.
Major Gulf markets dropped on Monday as a string of disappointing corporate earnings hurt the investor sentiment in the region, with Saudi Arabia underperforming other bourses amid falling banking shares.
Saudi’s index was down 0.7% as all its lenders slipped into negative territory with Al Rajhi Bank dropping 1.7% in the biggest drag on the index.
Dallah Healthcare was down 3.8% after its second-quarter profit fell, hurt by increased operating and financing costs.
Mubadala Spends $19 Billion as Fund Expands Into New Industries - Bloomberg
Mubadala Spends $19 Billion as Fund Expands Into New Industries - Bloomberg:
Mubadala Investment Co., an investor in SoftBank Group Corp.’s technology fund, spent about $19 billion last year as the Abu Dhabi wealth fund expanded into more industries.
The fund invested additional and recycled capital across its existing sectors including technology, aerospace, commodities and financial services, as well as in new areas such as medtech, pharma and agribusiness, according to a statement. At the same time, Mubadala monetized assets for about $15 billion.
Mubadala is part of Abu Dhabi’s efforts to diversify its economy by turning oil revenue into profitable investments while also attracting expertise and jobs. The firm merged with International Petroleum Investment Co. in 2017 and absorbed Abu Dhabi Investment Council last year, making it the world’s 13th-largest fund, according to the Sovereign Wealth Fund Institute.
Mubadala Investment Co., an investor in SoftBank Group Corp.’s technology fund, spent about $19 billion last year as the Abu Dhabi wealth fund expanded into more industries.
The fund invested additional and recycled capital across its existing sectors including technology, aerospace, commodities and financial services, as well as in new areas such as medtech, pharma and agribusiness, according to a statement. At the same time, Mubadala monetized assets for about $15 billion.
Mubadala is part of Abu Dhabi’s efforts to diversify its economy by turning oil revenue into profitable investments while also attracting expertise and jobs. The firm merged with International Petroleum Investment Co. in 2017 and absorbed Abu Dhabi Investment Council last year, making it the world’s 13th-largest fund, according to the Sovereign Wealth Fund Institute.
Very Strong Overweight Position on #UAE Banks: Arqaam Capital – Bloomberg
Very Strong Overweight Position on UAE Banks: Arqaam Capital – Bloomberg:
Jaap Meijer, head of equities research at Arqaam Capital, talks about Saudi Basic Industries Corp.’s results, the prospects for the region's stock markets and corporate earnings. Sabic's second-quarter profit plunged to the lowest level since 2009 as demand for chemicals and plastics declined. Meijer speaks with Tracy Alloway and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Jaap Meijer, head of equities research at Arqaam Capital, talks about Saudi Basic Industries Corp.’s results, the prospects for the region's stock markets and corporate earnings. Sabic's second-quarter profit plunged to the lowest level since 2009 as demand for chemicals and plastics declined. Meijer speaks with Tracy Alloway and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Oil loses ground on jitters over economy, hint of MidEast tensions easing - Reuters
Oil loses ground on jitters over economy, hint of MidEast tensions easing - Reuters:
Oil prices fell on Monday as investors fretted over the outlook for global economic growth, while weekend talks between Iran and major powers ended on a generally positive note, suggesting an easing of tensions in the Middle East.
Brent crude futures were down by 37 cents, or 0.6%, at $63.09 a barrel by 0717 GMT. Prices rose 1.6% last week.
U.S. West Texas Intermediate crude was down by 20 cents, or 0.4%, at $56.00 a barrel. WTI gained 1% last week.
Economic growth in the United States slowed less than expected in the second quarter with a boom in consumer spending, strengthening the outlook for oil consumption.
Oil prices fell on Monday as investors fretted over the outlook for global economic growth, while weekend talks between Iran and major powers ended on a generally positive note, suggesting an easing of tensions in the Middle East.
Brent crude futures were down by 37 cents, or 0.6%, at $63.09 a barrel by 0717 GMT. Prices rose 1.6% last week.
U.S. West Texas Intermediate crude was down by 20 cents, or 0.4%, at $56.00 a barrel. WTI gained 1% last week.
Economic growth in the United States slowed less than expected in the second quarter with a boom in consumer spending, strengthening the outlook for oil consumption.
Sunday 28 July 2019
#Dubai Financial Hub Adds Companies Even as Slowing Growth Weighs - Bloomberg
Dubai Financial Hub Adds Companies Even as Slowing Growth Weighs - Bloomberg:
The number of financial companies operating in the Dubai International Financial Centre rose 11% during the first half, even as a slowing global economy forced some banks to cut jobs.
Almost 2,290 companies, including 671 financial firms, are now based in the tax-free business park with the number of jobs increasing by 660 to more than 24,000, according to a statement on the DIFC’s website. Malaysia’s Maybank Islamic Berhad, Cantor Fitzgerald and Australia’s Atlas Wealth Management were among the financial firms that joined.
Dubai ranked as the Middle East’s leading financial center in a March study by consulting firm Z/Yen. The hub climbed three places to No. 12, ahead of Abu Dhabi by 14 places. Riyadh ranked 61st. Still, Barclays Plc and Deutsche Bank AG have reduced their presence in the financial district in recent years and the hub has turned to African and Asian institutions to fill office space.
The number of financial companies operating in the Dubai International Financial Centre rose 11% during the first half, even as a slowing global economy forced some banks to cut jobs.
Almost 2,290 companies, including 671 financial firms, are now based in the tax-free business park with the number of jobs increasing by 660 to more than 24,000, according to a statement on the DIFC’s website. Malaysia’s Maybank Islamic Berhad, Cantor Fitzgerald and Australia’s Atlas Wealth Management were among the financial firms that joined.
Dubai ranked as the Middle East’s leading financial center in a March study by consulting firm Z/Yen. The hub climbed three places to No. 12, ahead of Abu Dhabi by 14 places. Riyadh ranked 61st. Still, Barclays Plc and Deutsche Bank AG have reduced their presence in the financial district in recent years and the hub has turned to African and Asian institutions to fill office space.
#Dubai Is Back and a Bargain, at Least to Stock Pickers With Time - Bloomberg
Dubai Is Back and a Bargain, at Least to Stock Pickers With Time - Bloomberg:
After Dubai’s benchmark stock index lost almost half its value in the past five years, it’s beginning to attract investors on the lookout for bargains.
Hobbled by a lackluster economy and languishing in the shadow of its Gulf Arab neighbors, the emirate’s stocks have dropped in three of the last four years. The main gauge peaked in 2014, when MSCI Inc. officially included the United Arab Emirates -- of which Dubai is a part -- in the emerging-markets category.
#Shares in Dubai companies have now become so cheap relative to developing-nation equities that the gap in their estimated price-to-earnings ratios is near the widest since 2011.
After Dubai’s benchmark stock index lost almost half its value in the past five years, it’s beginning to attract investors on the lookout for bargains.
Hobbled by a lackluster economy and languishing in the shadow of its Gulf Arab neighbors, the emirate’s stocks have dropped in three of the last four years. The main gauge peaked in 2014, when MSCI Inc. officially included the United Arab Emirates -- of which Dubai is a part -- in the emerging-markets category.
#Shares in Dubai companies have now become so cheap relative to developing-nation equities that the gap in their estimated price-to-earnings ratios is near the widest since 2011.
#SaudiArabia to start next phase of flour mill privatization - Reuters
Saudi Arabia to start next phase of flour mill privatization - Reuters:
Saudi Arabia’s state grain buyer SAGO said it will start the next phase of the sale of its flour mills on Wednesday, which will see pre-qualified bidders perform due diligence and present financial offers.
The sale is one of the first privatizations the kingdom is planning as part of a wide-reaching overhaul of its economy.
It has attracted interest from some of the world’s largest agribusiness firms, including Archer Daniels Midland Co (ADM.N) and Bunge Ltd (BG.N).
Saudi Arabia’s state grain buyer SAGO said it will start the next phase of the sale of its flour mills on Wednesday, which will see pre-qualified bidders perform due diligence and present financial offers.
The sale is one of the first privatizations the kingdom is planning as part of a wide-reaching overhaul of its economy.
It has attracted interest from some of the world’s largest agribusiness firms, including Archer Daniels Midland Co (ADM.N) and Bunge Ltd (BG.N).
#Saudi Equity Index Shrugs Off Sabic’s Lower 2Q Profit: Inside EM - Bloomberg
Saudi Equity Index Shrugs Off Sabic’s Lower 2Q Profit: Inside EM - Bloomberg:
Saudi Arabia’s stocks gauge ended Sunday’s session higher even after the country’s biggest publicly traded company reported profit for the second quarter that was the lowest in a decade.
Saudi Basic Industries Corp.’s net income dropped to 2.12 billion riyals ($565 million) in the three months ended in June, shrinking 68% from last year, as lower petrochemical prices impacted performance. The biggest petrochemicals maker in the Middle East fell as much as 3.8% in Riyadh, before trimming the loss to 0.7% at close. Sabic is the third-largest individual constituent of the main Saudi gauge.
“The new capacities in key products lines that pressured Sabic’s product prices and margins in the first half of 2019 are expected to continue to impact the company’s earnings in the second half of 2019,” the company said.
Saudi Arabia’s stocks gauge ended Sunday’s session higher even after the country’s biggest publicly traded company reported profit for the second quarter that was the lowest in a decade.
Saudi Basic Industries Corp.’s net income dropped to 2.12 billion riyals ($565 million) in the three months ended in June, shrinking 68% from last year, as lower petrochemical prices impacted performance. The biggest petrochemicals maker in the Middle East fell as much as 3.8% in Riyadh, before trimming the loss to 0.7% at close. Sabic is the third-largest individual constituent of the main Saudi gauge.
“The new capacities in key products lines that pressured Sabic’s product prices and margins in the first half of 2019 are expected to continue to impact the company’s earnings in the second half of 2019,” the company said.
#SaudiArabia to Ban Foreigners From Slew of Hospitality Jobs - Bloomberg
Saudi Arabia to Ban Foreigners From Slew of Hospitality Jobs - Bloomberg:
Saudi Arabia plans to restrict certain hospitality jobs to its own citizens by the end of the year, banning the recruitment of foreign workers for those positions.
The decision, announced in a Labor Ministry statement on Friday, will apply to resorts, hotels rated three stars or higher, and hotel apartments rated four stars or higher. Positions that must be filled by Saudis range from front-desk jobs to management. Among the exceptions are drivers, doormen and porters, the ministry said in the statement. Other jobs that will be restricted to nationals include restaurant host and health club supervisor.
As Saudi Arabia tries to develop its fledgling tourism industry, it’s also tackling citizen unemployment, which hit a high of nearly 13% last year. Hospitality is the latest sector to face stricter “Saudization” policies, which call for replacing the foreigners who dominate many parts of the private sector -- particularly blue collar and service jobs.
Saudi Arabia plans to restrict certain hospitality jobs to its own citizens by the end of the year, banning the recruitment of foreign workers for those positions.
The decision, announced in a Labor Ministry statement on Friday, will apply to resorts, hotels rated three stars or higher, and hotel apartments rated four stars or higher. Positions that must be filled by Saudis range from front-desk jobs to management. Among the exceptions are drivers, doormen and porters, the ministry said in the statement. Other jobs that will be restricted to nationals include restaurant host and health club supervisor.
As Saudi Arabia tries to develop its fledgling tourism industry, it’s also tackling citizen unemployment, which hit a high of nearly 13% last year. Hospitality is the latest sector to face stricter “Saudization” policies, which call for replacing the foreigners who dominate many parts of the private sector -- particularly blue collar and service jobs.
MIDEAST STOCKS- #Saudi rises for second straight session as #AbuDhabi winning streak ends - Reuters
MIDEAST STOCKS-Saudi rises for second straight session as Abu Dhabi winning streak ends - Reuters:
Financial shares helped lift
Saudi Arabia's stock market for a second consecutive session on
Sunday, while top lender First Abu Dhabi Bank (FAB) weighed on
the Abu Dhabi bourse, bringing an eight-session streak of gains
to an end.
The Saudi index rose 0.5% with Al Rajhi Bank
and Riyad Bank gaining 1% and 3.1%
respectively. National Commercial Bank ended the day
0.6% higher.
Saudi Basic Industries Co (SABIC), the world's
fourth-biggest petrochemicals firm, fell 0.7% after reporting
its lowest quarterly profit since late 2009.
Financial shares helped lift
Saudi Arabia's stock market for a second consecutive session on
Sunday, while top lender First Abu Dhabi Bank (FAB) weighed on
the Abu Dhabi bourse, bringing an eight-session streak of gains
to an end.
The Saudi index rose 0.5% with Al Rajhi Bank
and Riyad Bank gaining 1% and 3.1%
respectively. National Commercial Bank ended the day
0.6% higher.
Saudi Basic Industries Co (SABIC), the world's
fourth-biggest petrochemicals firm, fell 0.7% after reporting
its lowest quarterly profit since late 2009.
#AbuDhabi Commercial Bank second quarter profit falls 11% - Reuters
Abu Dhabi Commercial Bank second quarter profit falls 11% - Reuters:
Abu Dhabi Commercial Bank ADCB.AD, which formally merged with two other banks this year, reported an 11% drop in second quarter profit on Sunday, as both interest income and non interest income declined.
ADCB made a net profit of 1.45 billion dirhams ($ 395 million) in the three months ending June 30, compared to 1.62 billion dirhams in the prior-year period, it said in a statement. EFG Hermes had projected a net profit of 1.3 billion dirhams for the second quarter.
Net interest income fell 7% to 2.59 billion dirhams, while non-interest income dropped 9% to 656 million dirhams.
Abu Dhabi Commercial Bank ADCB.AD, which formally merged with two other banks this year, reported an 11% drop in second quarter profit on Sunday, as both interest income and non interest income declined.
ADCB made a net profit of 1.45 billion dirhams ($ 395 million) in the three months ending June 30, compared to 1.62 billion dirhams in the prior-year period, it said in a statement. EFG Hermes had projected a net profit of 1.3 billion dirhams for the second quarter.
Net interest income fell 7% to 2.59 billion dirhams, while non-interest income dropped 9% to 656 million dirhams.
#SaudiArabia Plan to Avoid Oil Danger at Hormuz Isn't Much Safer - Bloomberg
Saudi Arabia Plan to Avoid Oil Danger at Hormuz Isn't Much Safer - Bloomberg:
After all of the incidents in the Strait of Hormuz in recent months, Saudi Arabia is understandably nervous about its dependence on using the chokepoint to ship its oil to vital overseas markets. But its plan to pump more of its crude all the way across the country and export it through the Red Sea instead may not bring it as much security as it hopes.
Two separate attacks on oil tankers in May and June just outside Hormuz – a narrow neck of water that links the Persian Gulf to the high seas – have caused costs and insurance rates to skyrocket. British-flagged vessels have shunned the strait after one was seized by Iran’s Revolutionary Guard in retaliation for the arrest of the supertanker Grace 1 off Gibraltar earlier this month.
It’s perfectly understandable that producers are weighing up their options. But unlike most of the others in the region, Saudi Arabia actually does have some. It and the United Arab Emirates are the only countries in the Persian Gulf that have a coastline on another sea. In Saudi Arabia’s case it’s the Red Sea, which forms the country’s western boundary.
After all of the incidents in the Strait of Hormuz in recent months, Saudi Arabia is understandably nervous about its dependence on using the chokepoint to ship its oil to vital overseas markets. But its plan to pump more of its crude all the way across the country and export it through the Red Sea instead may not bring it as much security as it hopes.
Two separate attacks on oil tankers in May and June just outside Hormuz – a narrow neck of water that links the Persian Gulf to the high seas – have caused costs and insurance rates to skyrocket. British-flagged vessels have shunned the strait after one was seized by Iran’s Revolutionary Guard in retaliation for the arrest of the supertanker Grace 1 off Gibraltar earlier this month.
It’s perfectly understandable that producers are weighing up their options. But unlike most of the others in the region, Saudi Arabia actually does have some. It and the United Arab Emirates are the only countries in the Persian Gulf that have a coastline on another sea. In Saudi Arabia’s case it’s the Red Sea, which forms the country’s western boundary.
UPDATE 1-SABIC still keen on Clariant joint venture once conditions improve - Reuters
UPDATE 1-SABIC still keen on Clariant joint venture once conditions improve - Reuters:
Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals firm, said on Sunday it has no interest in taking over Swiss chemicals firm Clariant but remains keen on a partnership once market conditions improve.
Some analysts have said that SABIC, which owns a 25% stake in Clariant, could consider taking over the company after the Swiss firm last week saw its chief executive quit, announced a loss for the first half of the year and shelved its joint venture plans with SABIC.
“We have no interest in a full takeover, if that’s your question, but we have interest to grow our share and make sure that we can bring positive growth and retain investment for SABIC and Clariant shareholders,” SABIC CEO Yousef al-Benyan told a news conference.
Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals firm, said on Sunday it has no interest in taking over Swiss chemicals firm Clariant but remains keen on a partnership once market conditions improve.
Some analysts have said that SABIC, which owns a 25% stake in Clariant, could consider taking over the company after the Swiss firm last week saw its chief executive quit, announced a loss for the first half of the year and shelved its joint venture plans with SABIC.
“We have no interest in a full takeover, if that’s your question, but we have interest to grow our share and make sure that we can bring positive growth and retain investment for SABIC and Clariant shareholders,” SABIC CEO Yousef al-Benyan told a news conference.
Exclusive: #UAE's Dana Gas hires adviser to sell Egypt assets - Reuters
Exclusive: UAE's Dana Gas hires adviser to sell Egypt assets - Reuters:
United Arab Emirates’ Dana Gas has hired investment bank Tudor, Pickering, Holt & Co. (TPH) to advise it on the sale of its Egyptian assets, worth over $500 million, two sources familiar with the matter said, as the company shifts its focus to its Kurdistan operations.
The Abu Dhabi-listed energy producer - whose main assets are in Egypt and in the Kurdistan Region of Iraq (KRI) - has been considering an alternative listing in London, and focusing on a single geographical area could be appealing to future investors in the company, said one of the sources. The sources did not wish to be identified because the information has not been made public.
A spokesman for Dana Gas declined to comment while TPH did not immediately respond to a request for comment, sent outside working hours.
United Arab Emirates’ Dana Gas has hired investment bank Tudor, Pickering, Holt & Co. (TPH) to advise it on the sale of its Egyptian assets, worth over $500 million, two sources familiar with the matter said, as the company shifts its focus to its Kurdistan operations.
The Abu Dhabi-listed energy producer - whose main assets are in Egypt and in the Kurdistan Region of Iraq (KRI) - has been considering an alternative listing in London, and focusing on a single geographical area could be appealing to future investors in the company, said one of the sources. The sources did not wish to be identified because the information has not been made public.
A spokesman for Dana Gas declined to comment while TPH did not immediately respond to a request for comment, sent outside working hours.
MIDEAST STOCKS-SABIC weighs on #Saudi index, banks help lift #Dubai - Reuters
MIDEAST STOCKS-SABIC weighs on Saudi index, banks help lift Dubai - Reuters:
Saudi Arabia’s stock market opened lower on Sunday, with Saudi Basic Industries Co (SABIC) ,the world’s fourth-biggest petrochemicals firm, weighing on the index after reporting its lowest quarterly profit since late 2009.
Saudi Arabia’s benchmark index slipped 0.1% with SABIC and Saudi Electric falling 1.8% and 2.6% respectively.
SABIC reported second-quarter net profit slid 68% to 2.12 billion riyals ($565 million), citing lower average selling prices and a decrease in the share of contributions from associates and joint ventures.
Saudi Arabia’s stock market opened lower on Sunday, with Saudi Basic Industries Co (SABIC) ,the world’s fourth-biggest petrochemicals firm, weighing on the index after reporting its lowest quarterly profit since late 2009.
Saudi Arabia’s benchmark index slipped 0.1% with SABIC and Saudi Electric falling 1.8% and 2.6% respectively.
SABIC reported second-quarter net profit slid 68% to 2.12 billion riyals ($565 million), citing lower average selling prices and a decrease in the share of contributions from associates and joint ventures.
Brookfield Said to Weigh Stake Purchase in Meraas Retail Venture - Bloomberg
Brookfield Said to Weigh Stake Purchase in Meraas Retail Venture - Bloomberg:
Brookfield Asset Management Inc. is exploring a purchase of a stake in a new company that will hold some of Dubai property developer Meraas Holding’s retail assets, people familiar with the matter said.
The Canadian investment firm is considering putting as much as $1 billion in the venture, the people said, asking not to be identified as the information is private. No final agreements have been reached and the discussions may not result in a deal, they said.
Brookfield Asset Management Inc. is exploring a purchase of a stake in a new company that will hold some of Dubai property developer Meraas Holding’s retail assets, people familiar with the matter said.
The Canadian investment firm is considering putting as much as $1 billion in the venture, the people said, asking not to be identified as the information is private. No final agreements have been reached and the discussions may not result in a deal, they said.
UPDATE 1-Jordan's Arab Bank group says H1 net profit rises 4% to $453 mln - Reuters
UPDATE 1-Jordan's Arab Bank group says H1 net profit rises 4% to $453 mln - Reuters:
Jordan’s largest lender, Arab Bank Group, reported a 4% rise in first-half net profit to $453 million, from $436 million a year earlier driven by growth in core banking income.
A statement on Sunday by the bank, one of the Middle East’s major financial institutions, said total loans rose 3% to $26.2 billion as of the end of June, while deposits also rose 3% to $34.1 billion. Group equity stood at $8.7 billion, it said.
Chairman Sabih al Masri said the “strong performance despite the continued slowdown of economic growth in the region” reflected the bank’s ability to adjust to a “challenging banking environment.”
Jordan’s largest lender, Arab Bank Group, reported a 4% rise in first-half net profit to $453 million, from $436 million a year earlier driven by growth in core banking income.
A statement on Sunday by the bank, one of the Middle East’s major financial institutions, said total loans rose 3% to $26.2 billion as of the end of June, while deposits also rose 3% to $34.1 billion. Group equity stood at $8.7 billion, it said.
Chairman Sabih al Masri said the “strong performance despite the continued slowdown of economic growth in the region” reflected the bank’s ability to adjust to a “challenging banking environment.”
#AbuDhabi's Growth Masks Weakness as Non-Oil GDP Shrinks: Chart - Bloomberg
Abu Dhabi's Growth Masks Weakness as Non-Oil GDP Shrinks: Chart - Bloomberg:
Revved-up spending plans by Abu Dhabi’s government have yet to spur growth in the non-oil sector of the emirate’s economy. While first-quarter gross domestic product grew 5.7% from the previous year, the non-oil part shrank for a third successive quarter. A $13.6 billion stimulus program announced a year ago is “supportive of growth, but will take more time to filter through,” said Jean-Paul Pigat, the head of research and founder of Lighthouse Research.
Revved-up spending plans by Abu Dhabi’s government have yet to spur growth in the non-oil sector of the emirate’s economy. While first-quarter gross domestic product grew 5.7% from the previous year, the non-oil part shrank for a third successive quarter. A $13.6 billion stimulus program announced a year ago is “supportive of growth, but will take more time to filter through,” said Jean-Paul Pigat, the head of research and founder of Lighthouse Research.
Sabic Profit Plunges to Lowest in 10 Years on Chemicals Slump - Bloomberg
Sabic Profit Plunges to Lowest in 10 Years on Chemicals Slump - Bloomberg:
Saudi Basic Industries Corp.’s second-quarter profit plunged to the lowest level since 2009 as demand for chemicals and plastics declined.
Net income dropped to 2.12 billion riyals ($565 million) from 6.7 billion riyals a year ago, the biggest petrochemicals maker in the Middle East said in a statement. The average estimate of five analysts was for a profit of 3.37 billion riyals.
A downturn in the global economy, including the car industry, has dented demand for plastics and chemicals, leading to a spate of profit warnings at companies such as BASF SE.
Saudi Basic Industries Corp.’s second-quarter profit plunged to the lowest level since 2009 as demand for chemicals and plastics declined.
Net income dropped to 2.12 billion riyals ($565 million) from 6.7 billion riyals a year ago, the biggest petrochemicals maker in the Middle East said in a statement. The average estimate of five analysts was for a profit of 3.37 billion riyals.
A downturn in the global economy, including the car industry, has dented demand for plastics and chemicals, leading to a spate of profit warnings at companies such as BASF SE.
Saturday 27 July 2019
Labor Ministry: 100% Saudization of 20 hospitality jobs as of next year | ZAWYA MENA Edition
Labor Ministry: 100% Saudization of 20 hospitality jobs as of next year | ZAWYA MENA Edition:
The Minister of Labor and Social Development Eng. Ahmed Al-Rajhi has issued a decision to Saudize the management, and leading and specialist professions in the tourism hospitality sector.
The decision includes hotels classified as 3-star and above, resorts, hotel suites, and villas classified as 4-star and above.
The ministry’s decision stipulates 100 percent Saudization of jobs in the tourism hospitality sector in three tracks.
The Minister of Labor and Social Development Eng. Ahmed Al-Rajhi has issued a decision to Saudize the management, and leading and specialist professions in the tourism hospitality sector.
The decision includes hotels classified as 3-star and above, resorts, hotel suites, and villas classified as 4-star and above.
The ministry’s decision stipulates 100 percent Saudization of jobs in the tourism hospitality sector in three tracks.
#AbuDhabi Securities Exchange issues guidelines for listed companies | ZAWYA MENA Edition
Abu Dhabi Securities Exchange issues guidelines for listed companies | ZAWYA MENA Edition:
Abu Dhabi Securities Exchange (ADX) has issued Environmental Social & Governance (ESG) disclosure guidelines for listed companies.
The launch of this set of 31 Key Performance Indicators (KPIs) is aligned with ADX strategy which is designed to support economic growth, while providing a sustainable trading environment and encouraging the business community to adopt societal sustainability practices. It will also raise the standard of governance, by putting into operation sustainability standards and integrating them into both ADX strategy and listed companies alike.
Khalifa Salem Al Mansouri, Acting Chief Executive of ADX said: "ADX has made a formal commitment to drive sustainability in financial markets by becoming a partner exchange of this United Nations-led ‘The Sustainable Stock Exchanges’ initiative. We have carried out this programme to support our listed issuers in their sustainability reporting journey. The ESG Disclosure Guidance represents a natural evolution of our status as a regional-leading exchange, stemming from ADX’s status as a member of the Sustainability Group in the World Federation of Exchanges." The newly-released standards "will enhance ADX’s competitivene
Abu Dhabi Securities Exchange (ADX) has issued Environmental Social & Governance (ESG) disclosure guidelines for listed companies.
The launch of this set of 31 Key Performance Indicators (KPIs) is aligned with ADX strategy which is designed to support economic growth, while providing a sustainable trading environment and encouraging the business community to adopt societal sustainability practices. It will also raise the standard of governance, by putting into operation sustainability standards and integrating them into both ADX strategy and listed companies alike.
Khalifa Salem Al Mansouri, Acting Chief Executive of ADX said: "ADX has made a formal commitment to drive sustainability in financial markets by becoming a partner exchange of this United Nations-led ‘The Sustainable Stock Exchanges’ initiative. We have carried out this programme to support our listed issuers in their sustainability reporting journey. The ESG Disclosure Guidance represents a natural evolution of our status as a regional-leading exchange, stemming from ADX’s status as a member of the Sustainability Group in the World Federation of Exchanges." The newly-released standards "will enhance ADX’s competitivene
London Stock Exchange confirms talks to buy Refinitiv for $27bn | Financial Times
London Stock Exchange confirms talks to buy Refinitiv for $27bn | Financial Times:
The London Stock Exchange Group has confirmed that it is in advanced talks to buy Refinitiv in a $27bn deal that would turn it into a global exchanges and data powerhouse.
The statement came after talks between the parties were revealed by the Financial Times earlier on Friday.
A deal for Refinitiv, carved out of Thomson Reuters only last year in a deal with Blackstone, would transform the LSE into the main rival to billionaire Michael Bloomberg’s financial news and data empire with annual combined revenues of more than £6bn.
The London Stock Exchange Group has confirmed that it is in advanced talks to buy Refinitiv in a $27bn deal that would turn it into a global exchanges and data powerhouse.
The statement came after talks between the parties were revealed by the Financial Times earlier on Friday.
A deal for Refinitiv, carved out of Thomson Reuters only last year in a deal with Blackstone, would transform the LSE into the main rival to billionaire Michael Bloomberg’s financial news and data empire with annual combined revenues of more than £6bn.
U.S. approves commercial service for Sempra Louisiana Cameron LNG export plant - Reuters
U.S. approves commercial service for Sempra Louisiana Cameron LNG export plant - Reuters:
U.S. energy regulators on Friday approved Sempra Energy’s request to commence commercial service of the first liquefaction train at its $10 billion Cameron liquefied natural gas export (LNG) terminal in Louisiana.
The plant exported its first cargo in May, making it the fourth big LNG export terminal operating in the United States. In total, the facility has exported four cargoes, according to data firm Refinitiv.
Natural gas use is growing fast around the world as countries wean their industrial and power sectors off coal as they seek cleaner forms of energy. Gas emits about half the carbon dioxide of coal when burned.
U.S. energy regulators on Friday approved Sempra Energy’s request to commence commercial service of the first liquefaction train at its $10 billion Cameron liquefied natural gas export (LNG) terminal in Louisiana.
The plant exported its first cargo in May, making it the fourth big LNG export terminal operating in the United States. In total, the facility has exported four cargoes, according to data firm Refinitiv.
Natural gas use is growing fast around the world as countries wean their industrial and power sectors off coal as they seek cleaner forms of energy. Gas emits about half the carbon dioxide of coal when burned.
Friday 26 July 2019
Oil Ends Week Higher as Supply Threats Outweigh Doubts on Demand - Bloomberg
Oil Ends Week Higher as Supply Threats Outweigh Doubts on Demand - Bloomberg:
Oil finished higher for the week after a volatile trading session that pitted gnawing doubts about global demand against supply threats from the Middle East and beyond.
Futures gained 0.3% in New York on Friday and ended the week up 1%, reversing from last week’s steep loss. Oil turned higher after Mexico’s state-run oil company said crude output fell about 10% in the second quarter, adding to tensions after Iran reportedly tested a medium-range ballistic missile in the Persia Gulf region.
West Texas Intermediate for September closed up 18 cents at $56.20 a barrel, notching its fifth increase in six days on the New York Mercantile Exchange. Brent for September settlement gained 7 cents to $63.46 on the ICE Futures Europe Exchange.
Oil finished higher for the week after a volatile trading session that pitted gnawing doubts about global demand against supply threats from the Middle East and beyond.
Futures gained 0.3% in New York on Friday and ended the week up 1%, reversing from last week’s steep loss. Oil turned higher after Mexico’s state-run oil company said crude output fell about 10% in the second quarter, adding to tensions after Iran reportedly tested a medium-range ballistic missile in the Persia Gulf region.
West Texas Intermediate for September closed up 18 cents at $56.20 a barrel, notching its fifth increase in six days on the New York Mercantile Exchange. Brent for September settlement gained 7 cents to $63.46 on the ICE Futures Europe Exchange.
DSA, Union May Bid for Mines Once Owned by Guptas, Glencore - Bloomberg
DSA, Union May Bid for Mines Once Owned by Guptas, Glencore - Bloomberg:
Dubai’s DSA Investments is considering forming a venture with a South African labor union to bid for coal assets that Glencore Plc was pressured into selling to a company controlled by the politically-connected Gupta family in 2015.
The venture would be between Orchid Mining, a unit of DSA, and Nehawu Investment Holdings, which invests funds on behalf of the National Education, Health and Allied Workers’ Union, the person said, asking not to be identified because the talks haven’t been publicly announced. The proposed venture could target the coal assets of Tegeta Exploration & Resources (Pty) Ltd. after the company was placed under administration last year, the person said.
“Our investment focus is extractive resources investment opportunities in Africa,” the company said in a response to queries. “Once we are able to comment on specific opportunities we will provide an official release.”
Dubai’s DSA Investments is considering forming a venture with a South African labor union to bid for coal assets that Glencore Plc was pressured into selling to a company controlled by the politically-connected Gupta family in 2015.
The venture would be between Orchid Mining, a unit of DSA, and Nehawu Investment Holdings, which invests funds on behalf of the National Education, Health and Allied Workers’ Union, the person said, asking not to be identified because the talks haven’t been publicly announced. The proposed venture could target the coal assets of Tegeta Exploration & Resources (Pty) Ltd. after the company was placed under administration last year, the person said.
“Our investment focus is extractive resources investment opportunities in Africa,” the company said in a response to queries. “Once we are able to comment on specific opportunities we will provide an official release.”
Oil Declines as Dollar Strengthens on Kudlow's Currency Remarks - Bloomberg
Oil Declines as Dollar Strengthens on Kudlow's Currency Remarks - Bloomberg:
Oil slumped after remarks by a key aide to U.S. President Donald Trump sent the dollar higher, reducing the attractiveness of commodities priced in greenbacks.
Futures dropped as much as 0.5% in New York on Friday after White House economic adviser Larry Kudlow told CNBC the U.S. ruled out any intervention in foreign-exchange markets. The Bloomberg dollar index jumped to the highest in more than a month. Trader shrugged off escalating tension in the Persian Gulf region, where Iran tested a medium-range ballistic missile and European powers worked to assemble a naval mission to protect shipping.
West Texas Intermediate for September fell 0.3% to $55.87 a barrel at 10:46 a.m. on the New York Mercantile Exchange. The contract was up 0.5% for the week.
Brent for September settlement was little changed at $63.31 on the ICE Futures Europe Exchange and has gained 1.7% this week. The global benchmark traded at a $7.44 premium to WTI.
Oil slumped after remarks by a key aide to U.S. President Donald Trump sent the dollar higher, reducing the attractiveness of commodities priced in greenbacks.
Futures dropped as much as 0.5% in New York on Friday after White House economic adviser Larry Kudlow told CNBC the U.S. ruled out any intervention in foreign-exchange markets. The Bloomberg dollar index jumped to the highest in more than a month. Trader shrugged off escalating tension in the Persian Gulf region, where Iran tested a medium-range ballistic missile and European powers worked to assemble a naval mission to protect shipping.
West Texas Intermediate for September fell 0.3% to $55.87 a barrel at 10:46 a.m. on the New York Mercantile Exchange. The contract was up 0.5% for the week.
Brent for September settlement was little changed at $63.31 on the ICE Futures Europe Exchange and has gained 1.7% this week. The global benchmark traded at a $7.44 premium to WTI.
MGM Resorts CEO Promises Decision on Selling Properties by Fall - Bloomberg #Dubai #CityCenter
MGM Resorts CEO Promises Decision on Selling Properties by Fall - Bloomberg:
Jim Murren, chief executive officer of MGM Resorts International, has worked hard to please his cranky shareholders.
He’s cut costs, eliminating more than 1,000 jobs. Under investor pressure, he sold most of MGM’s properties to a real estate investment trust in a lease-back deal. And he welcomed Corvex Management founder Keith Meister, a Carl Icahn protege, to his board after the hedge fund built up a nearly 4% stake in the Las Vegas casino company.
Now Murren may be on the verge of unloading the company’s most iconic Vegas properties -- the namesake MGM Grand and the Bellagio. Since January, Meister and two other board members have been reviewing MGM’s real estate holdings, with an eye toward boosting the company’s share price.
Jim Murren, chief executive officer of MGM Resorts International, has worked hard to please his cranky shareholders.
He’s cut costs, eliminating more than 1,000 jobs. Under investor pressure, he sold most of MGM’s properties to a real estate investment trust in a lease-back deal. And he welcomed Corvex Management founder Keith Meister, a Carl Icahn protege, to his board after the hedge fund built up a nearly 4% stake in the Las Vegas casino company.
Now Murren may be on the verge of unloading the company’s most iconic Vegas properties -- the namesake MGM Grand and the Bellagio. Since January, Meister and two other board members have been reviewing MGM’s real estate holdings, with an eye toward boosting the company’s share price.
Oil Set for Weekly Gain as Supplies Drop, Iran Tension Persists - Bloomberg
Oil Set for Weekly Gain as Supplies Drop, Iran Tension Persists - Bloomberg:
Oil is set for a weekly increase as U.S. crude stockpiles tighten and lingering tensions surrounding Iran stoke concerns that energy flows from the Middle East may be disrupted.
Futures gained 0.6% in New York on Friday and are up 1.4% this week. American crude inventories have declined for the past six weeks, the longest run since January 2018. Iran tested a medium-range ballistic missile on Wednesday, according to a CNN report. European governments are seeking to assemble a naval mission to provide safe passage for ships through the Persian Gulf after a British tanker was seized by Iranian forces last week.
West Texas Intermediate for September delivery rose 33 cents to $56.35 a barrel on the New York Mercantile Exchange as of 8:34 a.m. local time. The contract ended Thursday up 14 cents at $56.02 a barrel.
Brent for September settlement climbed 34 cents to $63.73 a barrel on the ICE Futures Europe Exchange after gaining 0.3% on Thursday. The contract is up 2% this week. The global benchmark traded at a $7.31 premium to WTI.
Oil is set for a weekly increase as U.S. crude stockpiles tighten and lingering tensions surrounding Iran stoke concerns that energy flows from the Middle East may be disrupted.
Futures gained 0.6% in New York on Friday and are up 1.4% this week. American crude inventories have declined for the past six weeks, the longest run since January 2018. Iran tested a medium-range ballistic missile on Wednesday, according to a CNN report. European governments are seeking to assemble a naval mission to provide safe passage for ships through the Persian Gulf after a British tanker was seized by Iranian forces last week.
West Texas Intermediate for September delivery rose 33 cents to $56.35 a barrel on the New York Mercantile Exchange as of 8:34 a.m. local time. The contract ended Thursday up 14 cents at $56.02 a barrel.
Brent for September settlement climbed 34 cents to $63.73 a barrel on the ICE Futures Europe Exchange after gaining 0.3% on Thursday. The contract is up 2% this week. The global benchmark traded at a $7.31 premium to WTI.
Oil advances as geopolitical tensions offset slack demand - Reuters
Oil advances as geopolitical tensions offset slack demand - Reuters:
Oil prices edged higher on Friday on worries about Middle East tensions, though a flagging global economic growth outlook amid the U.S.-China trade war capped gains.
Brent crude futures LCOc1 were up 25 cents, or 0.4%, at $63.64 a barrel by 0651 GMT. They rose 0.3% in the previous session.
U.S. West Texas Intermediate crude CLc1 was 36 cents higher, or 0.6%, at $56.20 a barrel, after gaining 0.25% overnight.
“Growing challenges in the macroeconomic environment have kept bullish bets in check as risk appetites remain soft over potential weakness in global fuel demand,” said Benjamin Lu, commodities analyst at Singapore-based brokerage Phillip Futures.
Oil prices edged higher on Friday on worries about Middle East tensions, though a flagging global economic growth outlook amid the U.S.-China trade war capped gains.
Brent crude futures LCOc1 were up 25 cents, or 0.4%, at $63.64 a barrel by 0651 GMT. They rose 0.3% in the previous session.
U.S. West Texas Intermediate crude CLc1 was 36 cents higher, or 0.6%, at $56.20 a barrel, after gaining 0.25% overnight.
“Growing challenges in the macroeconomic environment have kept bullish bets in check as risk appetites remain soft over potential weakness in global fuel demand,” said Benjamin Lu, commodities analyst at Singapore-based brokerage Phillip Futures.
US sanctions put chill on Iranian trade with #UAE | Financial Times
US sanctions put chill on Iranian trade with UAE | Financial Times:
The United Arab Emirates projects that its trade with Iran will plummet by half this year as the Middle East’s business and finance hub is buffeted by the impact of swinging US sanctions on the Islamic republic, according to a senior UAE official.
Dubai has traditionally been a centre for Iranian businesses operating offshore and the UAE’s trade with the republic was worth Dh70bn ($19bn) last year, the official said.
But nervousness over heightened tensions in the region, the collapse of the Iranian currency and companies’ fears of breaching US sanctions have combined to cause the sharp drop in bilateral commerce, the official said.
The United Arab Emirates projects that its trade with Iran will plummet by half this year as the Middle East’s business and finance hub is buffeted by the impact of swinging US sanctions on the Islamic republic, according to a senior UAE official.
Dubai has traditionally been a centre for Iranian businesses operating offshore and the UAE’s trade with the republic was worth Dh70bn ($19bn) last year, the official said.
But nervousness over heightened tensions in the region, the collapse of the Iranian currency and companies’ fears of breaching US sanctions have combined to cause the sharp drop in bilateral commerce, the official said.
Thursday 25 July 2019
Oil climbs on Iran tensions, U.S. inventory decline - Reuters
Oil climbs on Iran tensions, U.S. inventory decline - Reuters:
Oil prices edged higher on Thursday supported by rising tensions between the West and Iran and a big decline in U.S. crude stockpiles, but gains were capped due to lingering worries about slowing economic growth that could reduce fuel demand.
Brent crude futures LCOc1 settled 21 cents, or 0.33%, higher at $63.39 a barrel after hitting a session high of $64.23
U.S. West Texas Intermediate crude CLc1 ended the session up 14 cents, or 0.25%, at $56.02 a barrel, after hitting a session high of $56.99 earlier.
A week after Iran seized a British-flagged tanker in the Gulf, Britain has started sending a warship to accompany all British-flagged vessels through the Strait of Hormuz, a change in policy announced on Thursday after the government previously said it did not have resources to do so.
Oil prices edged higher on Thursday supported by rising tensions between the West and Iran and a big decline in U.S. crude stockpiles, but gains were capped due to lingering worries about slowing economic growth that could reduce fuel demand.
Brent crude futures LCOc1 settled 21 cents, or 0.33%, higher at $63.39 a barrel after hitting a session high of $64.23
U.S. West Texas Intermediate crude CLc1 ended the session up 14 cents, or 0.25%, at $56.02 a barrel, after hitting a session high of $56.99 earlier.
A week after Iran seized a British-flagged tanker in the Gulf, Britain has started sending a warship to accompany all British-flagged vessels through the Strait of Hormuz, a change in policy announced on Thursday after the government previously said it did not have resources to do so.
UPDATE 2- #Oman receives nearly $14 billion in demand for dollar bonds - Reuters
UPDATE 2-Oman receives nearly $14 billion in demand for dollar bonds - Reuters:
Oman received strong demand from global investors for U.S. dollar bonds it marketed on Thursday in its first foray in the international debt markets this year, according to a document issued by one of the banks leading the sale.
Investors made orders worth nearly $14 billion for papers offered at a final yield of around 4.95% for the long five-year bonds and 6% for the 10-year, according to the document.
That is below an initial price guidance of around 5.375% and 6.375% earlier on Thursday.
Oman received strong demand from global investors for U.S. dollar bonds it marketed on Thursday in its first foray in the international debt markets this year, according to a document issued by one of the banks leading the sale.
Investors made orders worth nearly $14 billion for papers offered at a final yield of around 4.95% for the long five-year bonds and 6% for the 10-year, according to the document.
That is below an initial price guidance of around 5.375% and 6.375% earlier on Thursday.
#Saudi's Falih says Reliance-Aramco talks on Indian refinery stake continue - Reuters
Saudi's Falih says Reliance-Aramco talks on Indian refinery stake continue - Reuters:
Saudi Arabia’s Energy Minister Khalid al-Falih said state-run Saudi Aramco’s talks with Reliance Industries to buy a minority stake in the Indian conglomerate’s refining assets have not stalled.
“The two companies, Reliance and Aramco, are talking with a lot of goodwill, with good intention,” al-Falih told Reuters in an interview on Thursday.
Reliance, controlled by Asia’s richest man Mukesh Ambani, operates the world’s biggest refining complex with capacity to process 1.4 million barrels per day (bpd) of oil at Jamnagar in western India.
Saudi Arabia’s Energy Minister Khalid al-Falih said state-run Saudi Aramco’s talks with Reliance Industries to buy a minority stake in the Indian conglomerate’s refining assets have not stalled.
“The two companies, Reliance and Aramco, are talking with a lot of goodwill, with good intention,” al-Falih told Reuters in an interview on Thursday.
Reliance, controlled by Asia’s richest man Mukesh Ambani, operates the world’s biggest refining complex with capacity to process 1.4 million barrels per day (bpd) of oil at Jamnagar in western India.
#Saudi sovereign fund to cut banks' returns with new $10 billion loan: sources - Reuters
Saudi sovereign fund to cut banks' returns with new $10 billion loan: sources - Reuters:
Saudi Arabia’s Public Investment Fund (PIF) is putting together a $10 billion loan and plans to more than halve the returns it gave banks last year in its first multibillion dollar facility, two banking sources familiar with the matter said.
PIF raised $11 billion through a five-year loan last year and is in advanced talks to borrow $10 billion more. It plans to offer lenders an initial interest rate of around 30 basis points over the London Interbank Offered Rate (Libor) for the one-year loan, said the sources about the private talks.
The fund had offered banks 75 basis points over Libor last year with its $11 billion facility, sources said at the time.
Saudi Arabia’s Public Investment Fund (PIF) is putting together a $10 billion loan and plans to more than halve the returns it gave banks last year in its first multibillion dollar facility, two banking sources familiar with the matter said.
PIF raised $11 billion through a five-year loan last year and is in advanced talks to borrow $10 billion more. It plans to offer lenders an initial interest rate of around 30 basis points over the London Interbank Offered Rate (Libor) for the one-year loan, said the sources about the private talks.
The fund had offered banks 75 basis points over Libor last year with its $11 billion facility, sources said at the time.
MIDEAST STOCKS-Positive earnings end #Saudi losing streak, COMI weighs on Egypt - Reuters
MIDEAST STOCKS-Positive earnings end Saudi losing streak, COMI weighs on Egypt - Reuters:
Strong corporate earnings helped Saudi
Arabia's stock market snap five days of losses, while top lender
Commercial International Bank weighed on the Egyptian bourse.
In Saudi Arabia, the index bounced back 0.4%, with
Saudi Arabian Mining Company jumping 6.5%, and Sahara
International Petrochemical (SIPCHEM) climbing 5.2%
after it reported flat quarterly profit of 210.9 million riyals
($56.2 million) beating EFG Hermes' forecast of 188 million.
Jabal Omar Development was up 2.7% after it swung
to second quarter profit, which it credited to higher revenue.
Strong corporate earnings helped Saudi
Arabia's stock market snap five days of losses, while top lender
Commercial International Bank weighed on the Egyptian bourse.
In Saudi Arabia, the index bounced back 0.4%, with
Saudi Arabian Mining Company jumping 6.5%, and Sahara
International Petrochemical (SIPCHEM) climbing 5.2%
after it reported flat quarterly profit of 210.9 million riyals
($56.2 million) beating EFG Hermes' forecast of 188 million.
Jabal Omar Development was up 2.7% after it swung
to second quarter profit, which it credited to higher revenue.
Oil Advances as Tighter Supply Jostles With Demand Concerns - Bloomberg
Oil Advances as Tighter Supply Jostles With Demand Concerns - Bloomberg:
Oil advanced in New York as declining U.S. crude stockpiles and fears over Middle East exports mingled with concerns that slower economic growth will stifle demand.
West Texas Intermediate futures added 1% on Thursday as the dollar weakened before a meeting of the European Central Bank, boosting the appeal of commodities priced in the U.S. currency. A sixth weekly-decline in U.S. crude stockpiles also supported prices, the longest run of draws since early 2018.
WTI for September delivery added 58 cents, or 1%, to $56.46 a barrel on the New York Mercantile Exchange as of 12:29 a.m. in London. The contract has fallen 3.6% in July, and is on track for only its second monthly loss this year.
Brent for September settlement rose 68 cents to $63.86 on the ICE Futures Europe Exchange after closing down 1% on Wednesday. The global crude benchmark is trading at a $7.42 premium to WTI.
Oil advanced in New York as declining U.S. crude stockpiles and fears over Middle East exports mingled with concerns that slower economic growth will stifle demand.
West Texas Intermediate futures added 1% on Thursday as the dollar weakened before a meeting of the European Central Bank, boosting the appeal of commodities priced in the U.S. currency. A sixth weekly-decline in U.S. crude stockpiles also supported prices, the longest run of draws since early 2018.
WTI for September delivery added 58 cents, or 1%, to $56.46 a barrel on the New York Mercantile Exchange as of 12:29 a.m. in London. The contract has fallen 3.6% in July, and is on track for only its second monthly loss this year.
Brent for September settlement rose 68 cents to $63.86 on the ICE Futures Europe Exchange after closing down 1% on Wednesday. The global crude benchmark is trading at a $7.42 premium to WTI.
Qatari Sheikh Explores Sale of $869 Million London, Paris Hotels - Bloomberg
Qatari Sheikh Explores Sale of $869 Million London, Paris Hotels - Bloomberg:
The family office of former Qatari Prime Minister Sheikh Hamad bin Jassim Al Thani is considering the sale of luxury hotels in London and Paris valued at a total of about $869 million, according to people with knowledge of the matter.
Eastdil Secured LLC has been appointed to advise on the potential sale of the Hyatt Regency Paris Etoile hotel in Paris, which is owned by a company linked to the sheikh and valued at about 500 million euros ($557 million), said two of the people, who asked not to be identified because the plans are private.
Broker Jones Lang LaSalle has been hired to evaluate the potential sale of the Sanderson and St Martins Lane hotels in London, valued at a combined 250 million pounds ($312 million) and owned by another company under the sheikh’s control, two other people said. A handful of investors have been approached by JLL regarding the London hotels, but there’s no certainty that a deal will take place, the people said.
The family office of former Qatari Prime Minister Sheikh Hamad bin Jassim Al Thani is considering the sale of luxury hotels in London and Paris valued at a total of about $869 million, according to people with knowledge of the matter.
Eastdil Secured LLC has been appointed to advise on the potential sale of the Hyatt Regency Paris Etoile hotel in Paris, which is owned by a company linked to the sheikh and valued at about 500 million euros ($557 million), said two of the people, who asked not to be identified because the plans are private.
Broker Jones Lang LaSalle has been hired to evaluate the potential sale of the Sanderson and St Martins Lane hotels in London, valued at a combined 250 million pounds ($312 million) and owned by another company under the sheikh’s control, two other people said. A handful of investors have been approached by JLL regarding the London hotels, but there’s no certainty that a deal will take place, the people said.
Shares in #Saudi's Sipchem surge despite slight drop in Q2 profit | ZAWYA MENA Edition
Shares in Saudi's Sipchem surge despite slight drop in Q2 profit | ZAWYA MENA Edition:
Shares in Saudi Arabia’s Sahara International Petrochemical Company (Sipchem) rallied on Thursday despite the company reporting a drop in Q2 2019 net profit.
The company’s Q2 2019 net profit after zakat and tax amounted to 210.9 million Saudi riyals ($56.23 million), compared to 211.4 million riyals in Q2 2018, a 0.24 percent drop.
“Good set of numbers by Sipchem,” Pritish Devassy, head of equity research at Al Rajhi Capital told Zawya in an email statement.
Shares in Saudi Arabia’s Sahara International Petrochemical Company (Sipchem) rallied on Thursday despite the company reporting a drop in Q2 2019 net profit.
The company’s Q2 2019 net profit after zakat and tax amounted to 210.9 million Saudi riyals ($56.23 million), compared to 211.4 million riyals in Q2 2018, a 0.24 percent drop.
“Good set of numbers by Sipchem,” Pritish Devassy, head of equity research at Al Rajhi Capital told Zawya in an email statement.
#AbuDhabi to raise $109 million a year from new road toll - Reuters
Abu Dhabi to raise $109 million a year from new road toll - Reuters:
Abu Dhabi, the oil rich capital of the United Arab Emirates (UAE), expects to collect 400 million dirhams ($109 million) a year from a road toll to be introduced on Oct. 15, an official said on Thursday.
Abu Dhabi said it was to start charging the toll after a prolonged period of lower oil prices during which a federal value added tax (VAT) of 5% has been introduced.
“We expect 400 million dirhams per annum of revenues from this and we expect to invest back,” Ibrahim Sarhan al-Hamoudi, acting executive director of surface transport at Abu Dhabi’s Department of Transport told reporters.
Abu Dhabi, the oil rich capital of the United Arab Emirates (UAE), expects to collect 400 million dirhams ($109 million) a year from a road toll to be introduced on Oct. 15, an official said on Thursday.
Abu Dhabi said it was to start charging the toll after a prolonged period of lower oil prices during which a federal value added tax (VAT) of 5% has been introduced.
“We expect 400 million dirhams per annum of revenues from this and we expect to invest back,” Ibrahim Sarhan al-Hamoudi, acting executive director of surface transport at Abu Dhabi’s Department of Transport told reporters.
MIDEAST STOCKS-Banks hurt #Saudi; #Dubai continues to gain on Emaar - Agricultural Commodities - Reuters
MIDEAST STOCKS-Banks hurt Saudi; Dubai continues to gain on Emaar - Agricultural Commodities - Reuters:
Saudi Arabia’s stock market fell on Thursday, with Al Rajhi Bank, the country’s second largest lender by assets, weighing on the index, while Dubai extended its series of gains on the back of top developer Emaar Properties.
In Saudi Arabia, the index lost 0.4% with Al Rajhi Bank and National Commercial Bank falling 2.3% and 0.6% respectively.
Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals company, slid 0.2% after it halted negotiations with Clariant to form a new high performance materials company from the combined assets of the two companies.
Saudi Arabia’s stock market fell on Thursday, with Al Rajhi Bank, the country’s second largest lender by assets, weighing on the index, while Dubai extended its series of gains on the back of top developer Emaar Properties.
In Saudi Arabia, the index lost 0.4% with Al Rajhi Bank and National Commercial Bank falling 2.3% and 0.6% respectively.
Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals company, slid 0.2% after it halted negotiations with Clariant to form a new high performance materials company from the combined assets of the two companies.
'Very Bullish' on #UAE Banks, Shuaa Asset Says – Bloomberg
'Very Bullish' on UAE Banks, Shuaa Asset Says – Bloomberg:
Aarthi Chandrasekaran, portfolio manager at Shuaa Asset Management, talks about oil, Kuwait and U.A.E. banks. She speaks on "Bloomberg Daybreak: Middle East" with Yousef Gamal El-Din and Tracy Alloway. (Source: Bloomberg)
Aarthi Chandrasekaran, portfolio manager at Shuaa Asset Management, talks about oil, Kuwait and U.A.E. banks. She speaks on "Bloomberg Daybreak: Middle East" with Yousef Gamal El-Din and Tracy Alloway. (Source: Bloomberg)
Doha Bank in 'Transformation Mode,' CEO Says – Bloomberg
Doha Bank in 'Transformation Mode,' CEO Says – Bloomberg:
Doha Bank OSC Chief Executive Officer Raghavan Seetharaman discusses the lender's financial results, business outlook, and Qatar's economy. Doha Bank said net profit rose 10 percent to 519 million riyals. Seetharaman speaks with Yousef Gamal El-Din and Tracy Alloway on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Doha Bank OSC Chief Executive Officer Raghavan Seetharaman discusses the lender's financial results, business outlook, and Qatar's economy. Doha Bank said net profit rose 10 percent to 519 million riyals. Seetharaman speaks with Yousef Gamal El-Din and Tracy Alloway on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Clariant's Planned Sabic Tie Up Falls Victim to Chemicals Slump - Bloomberg
Clariant's Planned Sabic Tie Up Falls Victim to Chemicals Slump - Bloomberg:
Clariant AG and anchor investor Saudi Basic Industries Corp. suspended talks on their planned $3.1 billion specialty plastics venture as a sharp downturn in the global chemicals market renders deal-making more difficult.
The two companies struggled to agree on how much their respective businesses were worth, Clariant Chairman Hariolf Kottmann said in a telephone interview on Thursday. The Swiss manufacturer and its Riyadh-based shareholder said discussions could resume when markets improve. Clariant shares fell as much as 8.7% in early trading.
“You need to find a compromise, if you don’t it’s better to take a bit of time,” Clariant Chief Financial Officer Patrick Jany said on the same call. “We’ve been looking at it in detail and just came to this point given the current market and business development.”
Clariant AG and anchor investor Saudi Basic Industries Corp. suspended talks on their planned $3.1 billion specialty plastics venture as a sharp downturn in the global chemicals market renders deal-making more difficult.
The two companies struggled to agree on how much their respective businesses were worth, Clariant Chairman Hariolf Kottmann said in a telephone interview on Thursday. The Swiss manufacturer and its Riyadh-based shareholder said discussions could resume when markets improve. Clariant shares fell as much as 8.7% in early trading.
“You need to find a compromise, if you don’t it’s better to take a bit of time,” Clariant Chief Financial Officer Patrick Jany said on the same call. “We’ve been looking at it in detail and just came to this point given the current market and business development.”
#Saudi Prince’s Megacity Shows Signs of Life - Bloomberg
Saudi Prince’s Megacity Shows Signs of Life - Bloomberg:
The walls are covered with graffiti in the sleepy fishing village of Khurayba. There are supplications to God, advertisements for vacation rentals and house painters. Near the local school, there’s a scribbled plea: “Open the windows of hope and drive out the despair.”
It’s here in northwest Saudi Arabia that Crown Prince Mohammed bin Salman wants investors to put their money to realize his $500 billion vision for the region. Called “Neom,” it promises to be the most freewheeling part of the kingdom, with state-of-the-art resorts and smart technologies run by robots.
Mountains and desert sit alongside the Red Sea in part of the area that planners say will become Neom.
But it’s also here where the risks to the 33-year-old prince’s grand plan for his country are writ large. Neom is the boldest pillar of a social and economic transformation that so far has seen at least as many delays as successes. Indeed, the question since the prince announced the vast development at an extravaganza in 2017 has been whether it can become a reality.
The walls are covered with graffiti in the sleepy fishing village of Khurayba. There are supplications to God, advertisements for vacation rentals and house painters. Near the local school, there’s a scribbled plea: “Open the windows of hope and drive out the despair.”
It’s here in northwest Saudi Arabia that Crown Prince Mohammed bin Salman wants investors to put their money to realize his $500 billion vision for the region. Called “Neom,” it promises to be the most freewheeling part of the kingdom, with state-of-the-art resorts and smart technologies run by robots.
Mountains and desert sit alongside the Red Sea in part of the area that planners say will become Neom.
But it’s also here where the risks to the 33-year-old prince’s grand plan for his country are writ large. Neom is the boldest pillar of a social and economic transformation that so far has seen at least as many delays as successes. Indeed, the question since the prince announced the vast development at an extravaganza in 2017 has been whether it can become a reality.
Mega investment projects could trigger #Saudi's real estate growth | ZAWYA MENA Edition
Mega investment projects could trigger Saudi's real estate growth | ZAWYA MENA Edition:
The real estate market in Saudi Arabia softened during the second quarter of 2019, but the sector can expect a major reprieve from the continued government spending on giga-projects, as the kingdom is actively pursuing investments beyond the oil and gas sector.
With conditions remaining soft across most sectors of the real estate market in the first half of 2019, the hospitality and entertainment industries witnessed a number of major development announcements.
These included the unveiling of Al Qiddiya’s master plan in Riyadh, aiming to cement the city’s position as the ‘Capital of Entertainment, Sports, and the Arts’, as well as the launch of the Kingdom’s first arthouse ‘Cinema El Housh’ in Jeddah, apart from religious tourism, according to real estate and investment management firm JLL’s 2019 mid-year review report.
The real estate market in Saudi Arabia softened during the second quarter of 2019, but the sector can expect a major reprieve from the continued government spending on giga-projects, as the kingdom is actively pursuing investments beyond the oil and gas sector.
With conditions remaining soft across most sectors of the real estate market in the first half of 2019, the hospitality and entertainment industries witnessed a number of major development announcements.
These included the unveiling of Al Qiddiya’s master plan in Riyadh, aiming to cement the city’s position as the ‘Capital of Entertainment, Sports, and the Arts’, as well as the launch of the Kingdom’s first arthouse ‘Cinema El Housh’ in Jeddah, apart from religious tourism, according to real estate and investment management firm JLL’s 2019 mid-year review report.
Oil advances on Gulf tensions but demand concerns cap gains - Reuters
Oil advances on Gulf tensions but demand concerns cap gains - Reuters:
Oil prices edged higher on Thursday amid Middle East tensions and a big fall in weekly U.S. crude stocks, but gains were stemmed by a frail demand outlook amid increasing signs of slowing global economic growth.
Brent crude LCOc1 futures rose 28 cents, or 0.4%, to $63.46 a barrel by 0650 GMT, after dropping 1% overnight - the first fall in four sessions.
U.S. West Texas Intermediate crude CLc1 was up 27 cents, or 0.5%, at $56.15 a barrel, having dropped 1.6% in the previous session.
“We see it as a current tug of war between the bull case of OPEC production cuts, political risk in the Gulf and the recent reduction in crude inventories, versus the bear case of slowing global growth and a ramp-up in U.S. production,” said Hue Frame, managing director at Frame Funds in Sydney.
Oil prices edged higher on Thursday amid Middle East tensions and a big fall in weekly U.S. crude stocks, but gains were stemmed by a frail demand outlook amid increasing signs of slowing global economic growth.
Brent crude LCOc1 futures rose 28 cents, or 0.4%, to $63.46 a barrel by 0650 GMT, after dropping 1% overnight - the first fall in four sessions.
U.S. West Texas Intermediate crude CLc1 was up 27 cents, or 0.5%, at $56.15 a barrel, having dropped 1.6% in the previous session.
“We see it as a current tug of war between the bull case of OPEC production cuts, political risk in the Gulf and the recent reduction in crude inventories, versus the bear case of slowing global growth and a ramp-up in U.S. production,” said Hue Frame, managing director at Frame Funds in Sydney.
Old habits die hard: #SaudiArabia struggles to end oil addiction - Reuters
Old habits die hard: Saudi Arabia struggles to end oil addiction - Reuters:
When Saudi Aramco was on the verge of a deal last year to buy a stake in an Indian oil refinery, its boss quickly boarded a company jet in Paris and flew to New Delhi.
Chief executive Amin Nasser arrived unannounced early on April 11, 2018, finalised the agreement and signed it later that day. Negotiators had just finished hammering out the details.
His last-minute flight, after a business trip to France with Crown Prince Mohammed bin Salman, underlined the importance of the deal both to Saudi Arabia and its huge state oil firm.
When Saudi Aramco was on the verge of a deal last year to buy a stake in an Indian oil refinery, its boss quickly boarded a company jet in Paris and flew to New Delhi.
Chief executive Amin Nasser arrived unannounced early on April 11, 2018, finalised the agreement and signed it later that day. Negotiators had just finished hammering out the details.
His last-minute flight, after a business trip to France with Crown Prince Mohammed bin Salman, underlined the importance of the deal both to Saudi Arabia and its huge state oil firm.
Total to sell $5bn of assets to protect against low oil prices | Financial Times
Total to sell $5bn of assets to protect against low oil prices | Financial Times:
French energy major Total will sell $5bn of assets by the end of 2020 as it looks to concentrate on businesses that can better withstand the low energy prices which hit its second-quarter results.
The planned sales — mostly in exploration and production — were announced as the company said its second-quarter adjusted net income had fallen by 19 per cent over the previous year to $2.9bn, hit by falling energy prices and refining margins. The figure was slightly below the $2.98 billion expected by analysts polled by Bloomberg.
“Markets remained volatile with Brent averaging $69 per barrel in the second quarter, an increase of 9 per cent compared to the previous quarter, but natural gas prices were down 36 per cent in Europe and 26 per cent in Asia,” said chief executive Patrick Pouyanné in a statement.
French energy major Total will sell $5bn of assets by the end of 2020 as it looks to concentrate on businesses that can better withstand the low energy prices which hit its second-quarter results.
The planned sales — mostly in exploration and production — were announced as the company said its second-quarter adjusted net income had fallen by 19 per cent over the previous year to $2.9bn, hit by falling energy prices and refining margins. The figure was slightly below the $2.98 billion expected by analysts polled by Bloomberg.
“Markets remained volatile with Brent averaging $69 per barrel in the second quarter, an increase of 9 per cent compared to the previous quarter, but natural gas prices were down 36 per cent in Europe and 26 per cent in Asia,” said chief executive Patrick Pouyanné in a statement.
Wednesday 24 July 2019
Oil falls 1% despite large U.S. stockpile decline - Reuters
Oil falls 1% despite large U.S. stockpile decline - Reuters:
Oil prices fell 1% on Wednesday, failing to draw lasting support from a large decrease in U.S. crude stockpiles as investors worried about global oil demand.
Brent crude LCOc1 futures dropped 65 cents, or 1%, to settle at $63.18 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 89 cents, or 1.6%, to settle at $55.88 a barrel.
Earlier in the session, the front-month Brent contract LCOc1 flipped to trade at a discount to the second-month contract LCOc2, a market structure known as contango, for the first time since March. Sentiment in the oil market has darkened as investors worry that slowing global economic growth will weaken demand for oil.
Oil prices fell 1% on Wednesday, failing to draw lasting support from a large decrease in U.S. crude stockpiles as investors worried about global oil demand.
Brent crude LCOc1 futures dropped 65 cents, or 1%, to settle at $63.18 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 89 cents, or 1.6%, to settle at $55.88 a barrel.
Earlier in the session, the front-month Brent contract LCOc1 flipped to trade at a discount to the second-month contract LCOc2, a market structure known as contango, for the first time since March. Sentiment in the oil market has darkened as investors worry that slowing global economic growth will weaken demand for oil.
Aramco to Finish Pipeline Expansion, Reducing Reliance on Hormuz - Bloomberg
Aramco to Finish Pipeline Expansion, Reducing Reliance on Hormuz - Bloomberg:
Saudi Aramco expects to complete the expansion of an oil pipeline that runs east-west across the country by September, according to a person familiar with the matter, increasing the amount the kingdom can ship from the Red Sea and avoiding the increasingly tense Strait of Hormuz.
The link currently operates well below capacity, but the long-planned expansion will give Saudi Arabia the option to ship more oil from the Red Sea rather than the Persian Gulf, bypassing Hormuz. About a fifth or the world’s oil production passes through the narrow seaway, but its vulnerability has been brought into focus in recent months as tensions between and the U.S. and Iran escalated.
The state oil company will finish the project by September, increasing the line’s capacity to carry crude oil from 5 million to 7 million barrels a day, according to person familiar with the situation, who asked not to be identified because the plan isn’t public yet. Aramco officials didn’t immediately comment. Aramco exported 6.84 million barrels a day in June, the vast bulk of it via Hormuz, according to Bloom
Saudi Aramco expects to complete the expansion of an oil pipeline that runs east-west across the country by September, according to a person familiar with the matter, increasing the amount the kingdom can ship from the Red Sea and avoiding the increasingly tense Strait of Hormuz.
The link currently operates well below capacity, but the long-planned expansion will give Saudi Arabia the option to ship more oil from the Red Sea rather than the Persian Gulf, bypassing Hormuz. About a fifth or the world’s oil production passes through the narrow seaway, but its vulnerability has been brought into focus in recent months as tensions between and the U.S. and Iran escalated.
The state oil company will finish the project by September, increasing the line’s capacity to carry crude oil from 5 million to 7 million barrels a day, according to person familiar with the situation, who asked not to be identified because the plan isn’t public yet. Aramco officials didn’t immediately comment. Aramco exported 6.84 million barrels a day in June, the vast bulk of it via Hormuz, according to Bloom
Kuwaiti, #Saudi officials discuss resuming Neutral Zone oil production: KUNA - Reuters
Kuwaiti, Saudi officials discuss resuming Neutral Zone oil production: KUNA - Reuters:
OPEC members Saudi Arabia and Kuwait have discussed resuming oil production in jointly operated fields in the Saudi–Kuwaiti Neutral Zone, Kuwaiti state news agency KUNA said on Wednesday.
Saudi Arabia’s minister of state for energy affairs visited Kuwait to “continue to discuss and cooperate on the resumption of oil production in the southern [Neutral Zone] after settling all required technical issues from both sides,” KUNA said, quoting a Kuwaiti government spokesman.
The Saudi–Kuwaiti Neutral Zone, or Divided Zone, is an area of 5,770 square km between the two countries’ borders that was left undefined when the border was established in 1922.
OPEC members Saudi Arabia and Kuwait have discussed resuming oil production in jointly operated fields in the Saudi–Kuwaiti Neutral Zone, Kuwaiti state news agency KUNA said on Wednesday.
Saudi Arabia’s minister of state for energy affairs visited Kuwait to “continue to discuss and cooperate on the resumption of oil production in the southern [Neutral Zone] after settling all required technical issues from both sides,” KUNA said, quoting a Kuwaiti government spokesman.
The Saudi–Kuwaiti Neutral Zone, or Divided Zone, is an area of 5,770 square km between the two countries’ borders that was left undefined when the border was established in 1922.
Oil Advances as Hefty Drop in U.S. Stockpiles Signals Tightness - Bloomberg
Oil Advances as Hefty Drop in U.S. Stockpiles Signals Tightness - Bloomberg:
Oil rose for a fourth straight session amid a hefty drop in U.S. crude inventories and new glimmers of hope for a trade truce between the world’s two largest economies.
Futures climbed as much as 0.9% on Wednesday in New York after rallying 2.7% over the previous three sessions. The American Petroleum Institute reported a 10.96 million-barrel decline in oil stockpiles last week, more than twice the estimate in a Bloomberg survey of analysts. Meanwhile, U.S. Trade Representative Robert Lighthizer will travel to China next week for the first high-level, face-to-face talks since May.
West Texas Intermediate for September delivery rose 33 cents to $57.10 a barrel at 9:43 a.m. on the New York Mercantile Exchange.
Oil rose for a fourth straight session amid a hefty drop in U.S. crude inventories and new glimmers of hope for a trade truce between the world’s two largest economies.
Futures climbed as much as 0.9% on Wednesday in New York after rallying 2.7% over the previous three sessions. The American Petroleum Institute reported a 10.96 million-barrel decline in oil stockpiles last week, more than twice the estimate in a Bloomberg survey of analysts. Meanwhile, U.S. Trade Representative Robert Lighthizer will travel to China next week for the first high-level, face-to-face talks since May.
West Texas Intermediate for September delivery rose 33 cents to $57.10 a barrel at 9:43 a.m. on the New York Mercantile Exchange.
Brent for September settlement advanced 22 cents to $64.05 on the ICE Futures Europe Exchange. The global benchmark crude traded at a $6.95 a barrel premium to WTI.
#Kuwait sovereign fund sells 16.1% stake in Gulf Bank - Reuters
Kuwait sovereign fund sells 16.1% stake in Gulf Bank - Reuters:
Kuwait Investment Authority (KIA) has sold a 16.1% stake in Gulf Bank to Alghanim Trading Co for 152.93 million dinars ($503 million), making the business conglomerate the biggest shareholder of the country’s fourth-biggest bank, according to a bourse filing.
The purchase will almost double the Kuwaiti group’s stake to about 33% from a previous level of 16.67%.
Alghanim, which has interests in manufacturing, automotive and food businesses, is controlled by Omar Kutayba Ahmad Alghanim, the chairman of Gulf Bank.
Kuwait Investment Authority (KIA) has sold a 16.1% stake in Gulf Bank to Alghanim Trading Co for 152.93 million dinars ($503 million), making the business conglomerate the biggest shareholder of the country’s fourth-biggest bank, according to a bourse filing.
The purchase will almost double the Kuwaiti group’s stake to about 33% from a previous level of 16.67%.
Alghanim, which has interests in manufacturing, automotive and food businesses, is controlled by Omar Kutayba Ahmad Alghanim, the chairman of Gulf Bank.
MIDEAST STOCKS- #Dubai extends gains on Emaar, other Gulf markets mixed - Reuters
MIDEAST STOCKS-Dubai extends gains on Emaar, other Gulf markets mixed - Reuters:
Dubai's stock market rose on Wednesday
as Emaar Properties continued to surge following news of a large
project in China, while other Middle Eastern shares were mixed.
The Dubai index added a further 0.8% after hitting
an eight-month high in the last session, with property stocks
leading the gains.
The country's largest listed developer Emaar Properties
advanced 1.2%, extending gains for the third straight
session. On Monday, the developer signed an agreement to help
deliver an $11 billion project at the site of Beijing's new mega
airport.
Dubai's stock market rose on Wednesday
as Emaar Properties continued to surge following news of a large
project in China, while other Middle Eastern shares were mixed.
The Dubai index added a further 0.8% after hitting
an eight-month high in the last session, with property stocks
leading the gains.
The country's largest listed developer Emaar Properties
advanced 1.2%, extending gains for the third straight
session. On Monday, the developer signed an agreement to help
deliver an $11 billion project at the site of Beijing's new mega
airport.
#SaudiArabia in Talks With Investors on Mega Entertainment City - Bloomberg
Saudi Arabia in Talks With Investors on Mega Entertainment City - Bloomberg:
Saudi Arabia is in talks with regional and global investors for its first mega entertainment and sports city that’s being developed as part of the kingdom’s plans for life after oil.
“The project will be built on a combination of our capital that is deployed alongside investment capital from many other sources,” Michael Reininger, chief executive officer of Qiddiya Investment Co., told reporters in Riyadh on Wednesday. “We’re now engaging in these discussions with people who are coming to us and saying this seems interesting.”
The company is looking at options such as joint ventures, land leasing and privatization to fund the project, Reininger said. Funds from investors “will be put alongside our money and we’ll be able to leverage that both on the debt and equity side in order to finance the project.”
Saudi Arabia is in talks with regional and global investors for its first mega entertainment and sports city that’s being developed as part of the kingdom’s plans for life after oil.
“The project will be built on a combination of our capital that is deployed alongside investment capital from many other sources,” Michael Reininger, chief executive officer of Qiddiya Investment Co., told reporters in Riyadh on Wednesday. “We’re now engaging in these discussions with people who are coming to us and saying this seems interesting.”
The company is looking at options such as joint ventures, land leasing and privatization to fund the project, Reininger said. Funds from investors “will be put alongside our money and we’ll be able to leverage that both on the debt and equity side in order to finance the project.”
National Bank of #Oman hires banks for $300 mln loan facility - Reuters
National Bank of Oman hires banks for $300 mln loan facility - Reuters:
National Bank of Oman has appointed Bank ABC and Emirates NBD to arrange a $300 million syndicated term loan facility, it said on Wednesday.
The facility has a tenor of three years, and the proceeds of will be utilized for NBO’s general corporate purposes, the statement said.
General syndication was launched on Tuesday with regional and international lenders invited to participate, the bank said.
National Bank of Oman has appointed Bank ABC and Emirates NBD to arrange a $300 million syndicated term loan facility, it said on Wednesday.
The facility has a tenor of three years, and the proceeds of will be utilized for NBO’s general corporate purposes, the statement said.
General syndication was launched on Tuesday with regional and international lenders invited to participate, the bank said.
Global oil market in glut, but not a big enough one for OPEC - Reuters
Global oil market in glut, but not a big enough one for OPEC - Reuters:
OPEC has shifted the goalposts for assessing an overhang in oil inventories, giving the group more room to prolong production cuts, while analysts warn the move will offer a distorted view of market conditions.
Ever since the Organization of the Petroleum Exporting Countries and allies led by Russia - a grouping known as OPEC+ - started curbing oil output two and a half years ago, they have targeted bringing oil in storage in the industrialized world in line with the five-year average.
In OPEC’s view, eliminating the glut in inventories would achieve a balanced oil market.
OPEC has shifted the goalposts for assessing an overhang in oil inventories, giving the group more room to prolong production cuts, while analysts warn the move will offer a distorted view of market conditions.
Ever since the Organization of the Petroleum Exporting Countries and allies led by Russia - a grouping known as OPEC+ - started curbing oil output two and a half years ago, they have targeted bringing oil in storage in the industrialized world in line with the five-year average.
In OPEC’s view, eliminating the glut in inventories would achieve a balanced oil market.
#Dubai's Du reports higher Q2 net profit, drop in revenue | ZAWYA MENA Edition
Dubai's Du reports higher Q2 net profit, drop in revenue | ZAWYA MENA Edition:
Dubai-based telecoms operator Emirates Integrated Telecommunications Company (Du) reported a 2.43 percent rise in net profit for Q2 2019 at 464 million dirhams ($126.33 million) after royalty payments.
The company’s revenues dropped 4.78 percent to 3.19 billion dirhams in Q2 2019, from 3.35 billion dirhams in Q2 2018, missing EFG Hermes' estimate.
Omar Maher, vice president of equity research at EFG Hermes told Zawya that despite a “slight miss” in revenues, Du’s net profit came right in line with EFG Hermes’ estimate, as the top-line miss “was offset by stronger-than-expected margin performance.”
Dubai-based telecoms operator Emirates Integrated Telecommunications Company (Du) reported a 2.43 percent rise in net profit for Q2 2019 at 464 million dirhams ($126.33 million) after royalty payments.
The company’s revenues dropped 4.78 percent to 3.19 billion dirhams in Q2 2019, from 3.35 billion dirhams in Q2 2018, missing EFG Hermes' estimate.
Omar Maher, vice president of equity research at EFG Hermes told Zawya that despite a “slight miss” in revenues, Du’s net profit came right in line with EFG Hermes’ estimate, as the top-line miss “was offset by stronger-than-expected margin performance.”