Dubai Airport On Hold - Bloomberg:
Dubai halted construction on its $36 billion mega airport (Source: TicToc)
Saturday, 31 August 2019
#SaudiArabia Creates New Ministry, Shrinking Falih Portfolio - Bloomberg
Saudi Arabia Creates New Ministry, Shrinking Falih Portfolio - Bloomberg:
Saudi Arabia created a new ministry for industry and mineral resources that’s separate from the current energy ministry, reducing the remit of Energy Minister Khalid Al-Falih.
The shift was part of a series of royal orders by King Salman, issued just before the Islamic new year and reported Friday night by the official Saudi Press Agency. The existing Ministry of Energy, Industry and Mineral Resources, led by Al-Falih, will be renamed the Ministry of Energy and hand over its other files to the new ministry at the start of the next fiscal year, the agency said. He appointed Bandar Alkhorayef to head the new ministry.
The king also replaced the head of the royal court, who had served under the late King Abdullah, with a new appointee who’s viewed to be closer to Crown Prince Mohammed bin Salman.
Khalid Al-FalihPhotographer: Mohammed Al-Nemer/Bloomberg
Saudi Arabia created a new ministry for industry and mineral resources that’s separate from the current energy ministry, reducing the remit of Energy Minister Khalid Al-Falih.
The shift was part of a series of royal orders by King Salman, issued just before the Islamic new year and reported Friday night by the official Saudi Press Agency. The existing Ministry of Energy, Industry and Mineral Resources, led by Al-Falih, will be renamed the Ministry of Energy and hand over its other files to the new ministry at the start of the next fiscal year, the agency said. He appointed Bandar Alkhorayef to head the new ministry.
The king also replaced the head of the royal court, who had served under the late King Abdullah, with a new appointee who’s viewed to be closer to Crown Prince Mohammed bin Salman.
Khalid Al-FalihPhotographer: Mohammed Al-Nemer/Bloomberg
U.S. engages in threats to stop #Iran oil sales to traditional clients: Zarif - Reuters
U.S. engages in threats to stop Iran oil sales to traditional clients: Zarif - Reuters:
Iran’s foreign minister accused the United States on Twitter on Saturday of engaging in “piracy and threats” to stop Tehran from selling oil to traditional clients, after Washington blacklisted an Iranian oil tanker that it said was headed to Syria.
U.S. Secretary of State Mike Pompeo said on Friday the United States had reliable information the Iranian oil tanker Adrian Darya, which the U.S. Treasury Department has blacklisted, was headed to Syria.
“US engages in piracy & threats to prevent Iran from selling oil to traditional customers,” Mohammad Javad Zarif tweeted. “Stop nagging @SecPompeo: We will sell oil to any & all buyers.”
Iran’s foreign minister accused the United States on Twitter on Saturday of engaging in “piracy and threats” to stop Tehran from selling oil to traditional clients, after Washington blacklisted an Iranian oil tanker that it said was headed to Syria.
U.S. Secretary of State Mike Pompeo said on Friday the United States had reliable information the Iranian oil tanker Adrian Darya, which the U.S. Treasury Department has blacklisted, was headed to Syria.
“US engages in piracy & threats to prevent Iran from selling oil to traditional customers,” Mohammad Javad Zarif tweeted. “Stop nagging @SecPompeo: We will sell oil to any & all buyers.”
#SaudiArabia splits industry and mining from energy ministry - Reuters
Saudi Arabia splits industry and mining from energy ministry - Reuters:
Saudi Arabia created a new ministry for industry and mineral resources, separating it from the kingdom’s colossal energy ministry, and replaced the powerful head of the royal court, in a series of royal orders issued late on Friday.
Bandar Alkhorayef, an investor and industrialist plucked from the private sector, was named to head the new entity, which will become independent on Jan. 1. The move appears to diminish the sprawling authority of Khalid al-Falih, who retains control of the energy portfolio and chairmanship of state oil giant Saudi Aramco.
Falih had overseen more than half the Saudi economy through the super-ministry, which was created in 2016 to help streamline new reforms. But despite ambitious plans for industry and mining, the sectors have seen relatively little development.
Saudi Arabia created a new ministry for industry and mineral resources, separating it from the kingdom’s colossal energy ministry, and replaced the powerful head of the royal court, in a series of royal orders issued late on Friday.
Bandar Alkhorayef, an investor and industrialist plucked from the private sector, was named to head the new entity, which will become independent on Jan. 1. The move appears to diminish the sprawling authority of Khalid al-Falih, who retains control of the energy portfolio and chairmanship of state oil giant Saudi Aramco.
Falih had overseen more than half the Saudi economy through the super-ministry, which was created in 2016 to help streamline new reforms. But despite ambitious plans for industry and mining, the sectors have seen relatively little development.
OPEC posts first 2019 oil-output rise despite Saudi cuts - Reuters survey - Reuters
OPEC posts first 2019 oil-output rise despite Saudi cuts - Reuters survey - Reuters:
OPEC oil output has risen in August for the first month this year as higher supply from Iraq and Nigeria outweighed restraint by top exporter Saudi Arabia and losses caused by U.S. sanctions on Iran, a Reuters survey found.
The 14-member Organization of the Petroleum Exporting Countries has pumped 29.61 million barrels per day (bpd) this month, the survey showed, up 80,000 bpd from July’s revised figure which was the lowest OPEC total since 2014.
The survey indicates Saudi Arabia is not deviating from its plan of restraining output by more than called for by an OPEC-led supply deal to support the market. Despite calls this year from U.S. President Donald Trump on OPEC to raise output, the producers renewed the supply pact in July.
OPEC oil output has risen in August for the first month this year as higher supply from Iraq and Nigeria outweighed restraint by top exporter Saudi Arabia and losses caused by U.S. sanctions on Iran, a Reuters survey found.
The 14-member Organization of the Petroleum Exporting Countries has pumped 29.61 million barrels per day (bpd) this month, the survey showed, up 80,000 bpd from July’s revised figure which was the lowest OPEC total since 2014.
The survey indicates Saudi Arabia is not deviating from its plan of restraining output by more than called for by an OPEC-led supply deal to support the market. Despite calls this year from U.S. President Donald Trump on OPEC to raise output, the producers renewed the supply pact in July.
Friday, 30 August 2019
Oil falls ahead of hurricane but posts weekly gain as U.S.-China trade war eases - Reuters
Oil falls ahead of hurricane but posts weekly gain as U.S.-China trade war eases - Reuters:
Oil futures fell on Friday, with U.S. crude down nearly 3% ahead of a hurricane near the Florida coast that could dampen demand, but prices were still headed for the biggest weekly increase since early July, boosted by an easing of U.S.-China trade rhetoric.
Brent crude LCOc1 futures fell 65 cents, or 1.1%, to settle at $60.43 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures settled down $1.61, or 2.8%, at $55.10 a barrel.
Hurricane Dorian gained strength as it crept closer to Florida’s coast on Friday, raising the risk that parts of the U.S. state will be hit by strong winds, a storm surge and heavy rain for a prolonged period after it makes landfall early next week.
Oil futures fell on Friday, with U.S. crude down nearly 3% ahead of a hurricane near the Florida coast that could dampen demand, but prices were still headed for the biggest weekly increase since early July, boosted by an easing of U.S.-China trade rhetoric.
Brent crude LCOc1 futures fell 65 cents, or 1.1%, to settle at $60.43 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures settled down $1.61, or 2.8%, at $55.10 a barrel.
Hurricane Dorian gained strength as it crept closer to Florida’s coast on Friday, raising the risk that parts of the U.S. state will be hit by strong winds, a storm surge and heavy rain for a prolonged period after it makes landfall early next week.
Oil Narrows Weekly Advance as Trade, Economic Concerns Linger - Bloomberg
Oil Narrows Weekly Advance as Trade, Economic Concerns Linger - Bloomberg:
Oil gave back much of the week’s gains ahead of a long weekend in the U.S., with investors eyeing simmering U.S.-China trade tensions.
Futures in New York fell below $55 a barrel Friday, extending the month’s drop to more than 6%. China is set to impose a 5% tariff on American crude from Sept. 1 that may slow the flow to a key market just as U.S. output hits fresh records. Also, Russia indicated that it reduced crude output in August less than promised in the agreement with OPEC and its allies.
“It’s simply positioning ahead of the long weekend,” said Bob Yawger, futures director at Mizuho Securities USA in New York. “It’s been the best week in the past seven. If you were long, would you want to go home this weekend still long, really no idea what kind of twitter feed the POTUS is going to unload while you hanging out at the beach bar?”
Oil gave back much of the week’s gains ahead of a long weekend in the U.S., with investors eyeing simmering U.S.-China trade tensions.
Futures in New York fell below $55 a barrel Friday, extending the month’s drop to more than 6%. China is set to impose a 5% tariff on American crude from Sept. 1 that may slow the flow to a key market just as U.S. output hits fresh records. Also, Russia indicated that it reduced crude output in August less than promised in the agreement with OPEC and its allies.
“It’s simply positioning ahead of the long weekend,” said Bob Yawger, futures director at Mizuho Securities USA in New York. “It’s been the best week in the past seven. If you were long, would you want to go home this weekend still long, really no idea what kind of twitter feed the POTUS is going to unload while you hanging out at the beach bar?”
#Lebanon Holds Firm on Peg With $1.4 Billion Boost to Reserves - Bloomberg
Lebanon Holds Firm on Peg With $1.4 Billion Boost to Reserves - Bloomberg:
Lebanon’s central bank has secured up to $1.4 billion in five-year deposits from private investors overseas, boosting dollar reserves in one of the world’s most-indebted countries and easing concerns that it could struggle to repay its debts and defend its currency.
Governor Riad Salameh said in an interview with Bloomberg TV in Beirut that Banque du Liban remains committed to preserving the Lebanese pound’s peg of about 1,507.5 to the dollar, in place for more than two decades, and has “ample” cash to do so.
“Contrary to what is being said, the supply of dollars is ample in the market,” he said on Friday. “Today, the central bank has closed deals of deposits with private, non-resident institutions, whereby in the second half of August our reserves went up by $1.4 billion to reach $38.6 billion. This is private non-resident money and not government money.”
Lebanon’s central bank has secured up to $1.4 billion in five-year deposits from private investors overseas, boosting dollar reserves in one of the world’s most-indebted countries and easing concerns that it could struggle to repay its debts and defend its currency.
Governor Riad Salameh said in an interview with Bloomberg TV in Beirut that Banque du Liban remains committed to preserving the Lebanese pound’s peg of about 1,507.5 to the dollar, in place for more than two decades, and has “ample” cash to do so.
“Contrary to what is being said, the supply of dollars is ample in the market,” he said on Friday. “Today, the central bank has closed deals of deposits with private, non-resident institutions, whereby in the second half of August our reserves went up by $1.4 billion to reach $38.6 billion. This is private non-resident money and not government money.”
Analysts slash oil price forecasts due to fears over economy, trade: Reuters poll - Reuters
Analysts slash oil price forecasts due to fears over economy, trade: Reuters poll - Reuters:
Analysts have slashed their oil price forecasts to the lowest in more than 16 months, citing softening global demand as an economic slowdown looms and uncertainty prevails on the U.S.-China trade front, a Reuters poll showed on Friday.
The survey of 51 economists and analysts forecast Brent crude LCOc1 would average $65.02 a barrel in 2019, down about 4% from the previous month’s $67.47 projection and compared with the $65.08 average for the global benchmark so far this year.
It is also the lowest 2019 average forecast for Brent since March 2018.
The 2019 outlook for West Texas Intermediate crude futures CLc1 was cut to the lowest since January 2018, at $57.90 per barrel, below last month’s $59.29 forecast. WTI has averaged $57.13 this year.
Analysts have slashed their oil price forecasts to the lowest in more than 16 months, citing softening global demand as an economic slowdown looms and uncertainty prevails on the U.S.-China trade front, a Reuters poll showed on Friday.
The survey of 51 economists and analysts forecast Brent crude LCOc1 would average $65.02 a barrel in 2019, down about 4% from the previous month’s $67.47 projection and compared with the $65.08 average for the global benchmark so far this year.
It is also the lowest 2019 average forecast for Brent since March 2018.
The 2019 outlook for West Texas Intermediate crude futures CLc1 was cut to the lowest since January 2018, at $57.90 per barrel, below last month’s $59.29 forecast. WTI has averaged $57.13 this year.
Russian firm battles Mideast for Chinese petroleum gas market - Reuters
Russian firm battles Mideast for Chinese petroleum gas market - Reuters:
An independent Russian producer has made a foray into China’s market for liquefied petroleum gas (LPG), jostling with Middle Eastern countries for what could be a lucrative foothold, market data showed and traders said.
China is one of the world’s largest importers and consumers of the fuel. Key suppliers to the country are the United Arab Emirates, Qatar, Kuwait and Saudi Arabia, which jointly account for more than 60% of China’s LPG imports.
Russia is one of the top oil exporters to China and is set to launch a gas export pipeline connecting the two countries by the end of this year. Its LPG supplies to China are small at this stage but Moscow is expanding production.
An independent Russian producer has made a foray into China’s market for liquefied petroleum gas (LPG), jostling with Middle Eastern countries for what could be a lucrative foothold, market data showed and traders said.
China is one of the world’s largest importers and consumers of the fuel. Key suppliers to the country are the United Arab Emirates, Qatar, Kuwait and Saudi Arabia, which jointly account for more than 60% of China’s LPG imports.
Russia is one of the top oil exporters to China and is set to launch a gas export pipeline connecting the two countries by the end of this year. Its LPG supplies to China are small at this stage but Moscow is expanding production.
Exclusive: #Saudi Aramco board sees too many risks for New York IPO - sources - Reuters
Exclusive: Saudi Aramco board sees too many risks for New York IPO - sources - Reuters:
The board of Saudi Aramco has determined that listing the state energy giant in New York would carry too many legal risks to make it a realistic option, five sources said, although they said a final decision lay with Saudi Arabia’s crown prince.
New York was the exchange favored by Crown Prince Mohammed bin Salman before plans for the initial public offering were put on hold last year, the sources said, even after Aramco’s lawyers and some government advisers had raised legal concerns.
New York offers the largest investor base in the world, vital for an IPO that aims to attract as much as $100 billion, a sum that could prove tough for other exchanges to raise. U.S. President Donald Trump urged the kingdom to list in New York.
The board of Saudi Aramco has determined that listing the state energy giant in New York would carry too many legal risks to make it a realistic option, five sources said, although they said a final decision lay with Saudi Arabia’s crown prince.
New York was the exchange favored by Crown Prince Mohammed bin Salman before plans for the initial public offering were put on hold last year, the sources said, even after Aramco’s lawyers and some government advisers had raised legal concerns.
New York offers the largest investor base in the world, vital for an IPO that aims to attract as much as $100 billion, a sum that could prove tough for other exchanges to raise. U.S. President Donald Trump urged the kingdom to list in New York.
Oil Heads for Biggest Weekly Gain in Seven on Trade War Optimism - Bloomberg
Oil Heads for Biggest Weekly Gain in Seven on Trade War Optimism - Bloomberg:
Oil headed for its biggest weekly increase since mid-July after a sizable drop in American crude inventories and an apparent pause in U.S.-China trade hostilities eased demand fears.
Futures in New York fell 0.9% on Friday but are up 3.7% for the week. China said Thursday that it wouldn’t immediately retaliate against the latest White House tariff increase, spurring optimism that Beijing wants to reach a deal. Traders were watching for any disruptions from Hurricane Dorian, which was forecast to become a major storm later on Friday as it heads toward Florida.
Oil headed for its biggest weekly increase since mid-July after a sizable drop in American crude inventories and an apparent pause in U.S.-China trade hostilities eased demand fears.
Futures in New York fell 0.9% on Friday but are up 3.7% for the week. China said Thursday that it wouldn’t immediately retaliate against the latest White House tariff increase, spurring optimism that Beijing wants to reach a deal. Traders were watching for any disruptions from Hurricane Dorian, which was forecast to become a major storm later on Friday as it heads toward Florida.
Breakingviews - China’s oil and gas titans heed the call to spend - Reuters
Breakingviews - China’s oil and gas titans heed the call to spend - Reuters:
China’s oil and gas titans are heeding the call to spend. President Xi Jinping called for a boost to energy security, and first-half figures suggest state giants listened: $81 billion Sinopec, for one, nearly doubled capital expenditure. That contrasts with caution seen abroad. U.S. sanctions only add urgency to national service.
Energy is a perennial concern among the country’s security hawks, and last year Xi put it firmly back on the agenda. Then, the state-owned majors pledged to explore more actively for new resources at home. They forecast spending this year would reach 517 billion yuan ($72 billion), nearly a fifth higher than in 2018.
Numbers for the first six months of 2019 suggest they are on track. Sinopec reported on Sunday that capex in the first half surged to 43 billion yuan, compared to just 24 billion yuan in the same period last year, while national offshore producer CNOOC reported that its own figure rose 60% year-on-year.
China’s oil and gas titans are heeding the call to spend. President Xi Jinping called for a boost to energy security, and first-half figures suggest state giants listened: $81 billion Sinopec, for one, nearly doubled capital expenditure. That contrasts with caution seen abroad. U.S. sanctions only add urgency to national service.
Energy is a perennial concern among the country’s security hawks, and last year Xi put it firmly back on the agenda. Then, the state-owned majors pledged to explore more actively for new resources at home. They forecast spending this year would reach 517 billion yuan ($72 billion), nearly a fifth higher than in 2018.
Numbers for the first six months of 2019 suggest they are on track. Sinopec reported on Sunday that capex in the first half surged to 43 billion yuan, compared to just 24 billion yuan in the same period last year, while national offshore producer CNOOC reported that its own figure rose 60% year-on-year.
Oil prices fall but set for big weekly gain on trade dispute hopes - Reuters
Oil prices fall but set for big weekly gain on trade dispute hopes - Reuters:
Oil gave back some of its recent gains on Friday, but was still headed for the biggest weekly increase since early July, boosted by a decline in U.S stocks, a looming hurricane in Florida and an easing of Sino-U.S. trade rhetoric.
Brent crude LCOc1 was down by 23 cents, or 0.4%, at $60.85 a barrel, by 0711 GMT, but was heading for a gain of more than 2% for the week.
U.S. West Texas Intermediate (WTI) crude futures CLc1 fell 40 cents, or 0.7%, to $56.31 a barrel. The contract is still set for a gain of nearly 4% this week.
“Oil prices remain elevated and we are in the middle of trading range here for both Brent and West Texas,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
Oil gave back some of its recent gains on Friday, but was still headed for the biggest weekly increase since early July, boosted by a decline in U.S stocks, a looming hurricane in Florida and an easing of Sino-U.S. trade rhetoric.
Brent crude LCOc1 was down by 23 cents, or 0.4%, at $60.85 a barrel, by 0711 GMT, but was heading for a gain of more than 2% for the week.
U.S. West Texas Intermediate (WTI) crude futures CLc1 fell 40 cents, or 0.7%, to $56.31 a barrel. The contract is still set for a gain of nearly 4% this week.
“Oil prices remain elevated and we are in the middle of trading range here for both Brent and West Texas,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
Thursday, 29 August 2019
#Saudi Mobile Operator Seeks to Cut Cost of $2.1 Billion Debt - Bloomberg
Saudi Mobile Operator Seeks to Cut Cost of $2.1 Billion Debt - Bloomberg:
Etihad Etisalat Co. held preliminary talks with banks to refinance as much 8 billion riyals ($2.1 billion) of debt as the Saudi Arabian mobile-network operator looks to lower borrowing costs following a turn around in its finances, according to people familiar with the matter.
Mobily, as the company is known, has been gauging appetite from lenders to participate in the refinancing and plans to start formal discussions before the end of the year, the people said, asking not to be identified as the information is private. Banks were told that the firm wants to reduce interest expenses with the new facility, they said.
Saudi Arabia’s second-largest wireless operator is trying to benefit from four straight quarters of profit growth after accounting irregularities discovered in 2014 led to years of losses. Amid the slump in earnings, Mobily in 2017 refinanced 8 billion riyals of loans at a rate that was said at the time to be 20% higher than the debt it was repaying.
Etihad Etisalat Co. held preliminary talks with banks to refinance as much 8 billion riyals ($2.1 billion) of debt as the Saudi Arabian mobile-network operator looks to lower borrowing costs following a turn around in its finances, according to people familiar with the matter.
Mobily, as the company is known, has been gauging appetite from lenders to participate in the refinancing and plans to start formal discussions before the end of the year, the people said, asking not to be identified as the information is private. Banks were told that the firm wants to reduce interest expenses with the new facility, they said.
Saudi Arabia’s second-largest wireless operator is trying to benefit from four straight quarters of profit growth after accounting irregularities discovered in 2014 led to years of losses. Amid the slump in earnings, Mobily in 2017 refinanced 8 billion riyals of loans at a rate that was said at the time to be 20% higher than the debt it was repaying.
#SaudiArabia’s Net Foreign Assets Fall Most in Over Two Years - Bloomberg
Saudi Arabia’s Net Foreign Assets Fall Most in Over Two Years - Bloomberg:
Saudi Arabia’s net foreign assets fell 1.8% in July, the biggest monthly drop in more than two years, potentially an effect of the government boosting spending.
Net foreign assets held by the Saudi Arabian Monetary Authority declined by about $9 billion last month to $498 billion, the largest fall since February 2017, according to the central bank’s latest monthly report. The government’s current account at the central bank fell by about $9.5 billion in July.
Saudi officials have long promised to inject more spending into the biggest Arab economy to boost lackluster growth, though the central bank data doesn’t specify where the government cash went. The world’s largest oil exporter has struggled to recover from a slowdown brought on by the crude price rout of 2014 while also reining in its budget deficit. 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 net foreign assets fell 1.8% in July, the biggest monthly drop in more than two years, potentially an effect of the government boosting spending.
Net foreign assets held by the Saudi Arabian Monetary Authority declined by about $9 billion last month to $498 billion, the largest fall since February 2017, according to the central bank’s latest monthly report. The government’s current account at the central bank fell by about $9.5 billion in July.
Saudi officials have long promised to inject more spending into the biggest Arab economy to boost lackluster growth, though the central bank data doesn’t specify where the government cash went. The world’s largest oil exporter has struggled to recover from a slowdown brought on by the crude price rout of 2014 while also reining in its budget deficit. 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.
#Dubai Halts Mega-Airport Project as Gulf Economies Stumble - Bloomberg
Dubai Halts Mega-Airport Project as Gulf Economies Stumble - Bloomberg:
Work on Dubai’s Al Maktoum Airport, designed to be one of the world’s biggest with an annual capacity of more than 250 million passengers, is on hold as Gulf Arab economies falter, people familiar with the matter said.
Construction activity has been halted and finances for expansion frozen until further notice, according to the people, who asked not to be named due to the sensitivity of the topic.
The completion date for the first phase of the airport, envisaged as a $36 billion super-hub allowing local airline Emirates to consolidate its position as the world’s No. 1 long-haul carrier, had already been pushed back five years to 2030 in October.
Work on Dubai’s Al Maktoum Airport, designed to be one of the world’s biggest with an annual capacity of more than 250 million passengers, is on hold as Gulf Arab economies falter, people familiar with the matter said.
Construction activity has been halted and finances for expansion frozen until further notice, according to the people, who asked not to be named due to the sensitivity of the topic.
The completion date for the first phase of the airport, envisaged as a $36 billion super-hub allowing local airline Emirates to consolidate its position as the world’s No. 1 long-haul carrier, had already been pushed back five years to 2030 in October.
U.S. crude rises 1.7% on big inventory draw, hurricane fears - Reuters
U.S. crude rises 1.7% on big inventory draw, hurricane fears - Reuters:
U.S. oil futures rose 1.7% on Thursday, lifted by a deep draw on U.S. crude inventories, especially at the benchmark’s delivery hub due to increased demand with the start-up of two new West Texas pipelines.
The approach of Hurricane Dorian toward Florida also raised fears that offshore U.S. crude producers may slow output if the storm passes into the Gulf of Mexico over the weekend, analysts said.
Meanwhile, international benchmark Brent oil rose above the $61 a barrel mark as concerns about economic growth eased.
West Texas International (WTI) crude settled at $56.71 a barrel, up 93 cents, or 1.7%. Brent crude settled at $61.08, up 59 cents, or 0.98%.
U.S. oil futures rose 1.7% on Thursday, lifted by a deep draw on U.S. crude inventories, especially at the benchmark’s delivery hub due to increased demand with the start-up of two new West Texas pipelines.
The approach of Hurricane Dorian toward Florida also raised fears that offshore U.S. crude producers may slow output if the storm passes into the Gulf of Mexico over the weekend, analysts said.
Meanwhile, international benchmark Brent oil rose above the $61 a barrel mark as concerns about economic growth eased.
West Texas International (WTI) crude settled at $56.71 a barrel, up 93 cents, or 1.7%. Brent crude settled at $61.08, up 59 cents, or 0.98%.
Political uncertainty puts London listing for #Saudi Aramco in doubt | Business | The Guardian
Political uncertainty puts London listing for Saudi Aramco in doubt | Business | The Guardian:
Saudi Arabia’s revived plans for a $2tn mega-listing of its state oil company may rule out the London Stock Exchange amid Britain’s rising political uncertainty, according to reports.
Saudi Aramco, the world’s most profitable company, may instead look to Japan’s Tokyo stock exchange to host the second phase of what would be the biggest public offering in history.
The oil giant’s advisers had originally favoured an international stock market debut in either London or Hong Kong but political instability has reduced their appeal, according to the Wall Street Journal.
Saudi Arabia’s revived plans for a $2tn mega-listing of its state oil company may rule out the London Stock Exchange amid Britain’s rising political uncertainty, according to reports.
Saudi Aramco, the world’s most profitable company, may instead look to Japan’s Tokyo stock exchange to host the second phase of what would be the biggest public offering in history.
The oil giant’s advisers had originally favoured an international stock market debut in either London or Hong Kong but political instability has reduced their appeal, according to the Wall Street Journal.
#Saudi stock exchange now full MSCI member, but market euphoria may fade - Reuters
Saudi stock exchange now full MSCI member, but market euphoria may fade - Reuters:
The Saudi Stock Exchange (Tadawul), the region’s largest market, has completed the second and final phase of joining the MSCI Emerging Markets Index, raising its weight on the closely monitored index to 2.8 percent.
Its inclusion has generated foreign inflows worth billions of dollars since the start of the year and has helped the Saudi index make double-digit gains. Those benefits may fade as trading wanes amid gloomy economic conditions.
“Full inclusion in the MSCI Emerging Market Index represents an important milestone in advancing the Saudi capital market and further opening Tadawul to international investors,” Khalid al-Hussan, Tadawul’s chief executive, said in an exchange filing on Thursday.
The Saudi Stock Exchange (Tadawul), the region’s largest market, has completed the second and final phase of joining the MSCI Emerging Markets Index, raising its weight on the closely monitored index to 2.8 percent.
Its inclusion has generated foreign inflows worth billions of dollars since the start of the year and has helped the Saudi index make double-digit gains. Those benefits may fade as trading wanes amid gloomy economic conditions.
“Full inclusion in the MSCI Emerging Market Index represents an important milestone in advancing the Saudi capital market and further opening Tadawul to international investors,” Khalid al-Hussan, Tadawul’s chief executive, said in an exchange filing on Thursday.
#Dubai mall operator Majid Al Futtaim posts H1 revenue at $4.87bln | ZAWYA MENA Edition
Dubai mall operator Majid Al Futtaim posts H1 revenue at $4.87bln | ZAWYA MENA Edition:
Shopping mall and leisure pioneer Majid Al Futtaim has posted a revenue of $4.87 billion (17.9 billion dirhams) for the first six months (H1) of the year, an increase of one per cent year-on-year, the company said in a statement.
EBITDA increased by 1 per cent at 2.1 billion dirhams, while the group’s increased focus on working capital management and operational excellence resulted in operating cash flow amounting to 115 per cent of EBITDA.
The group’s assets increased 7 per cent to approximately 64 billion dirhams, on account of the introduction of IFRS16. Net borrowings for the first half of the year stood at around 12.8 billion dirhams.
Shopping mall and leisure pioneer Majid Al Futtaim has posted a revenue of $4.87 billion (17.9 billion dirhams) for the first six months (H1) of the year, an increase of one per cent year-on-year, the company said in a statement.
EBITDA increased by 1 per cent at 2.1 billion dirhams, while the group’s increased focus on working capital management and operational excellence resulted in operating cash flow amounting to 115 per cent of EBITDA.
The group’s assets increased 7 per cent to approximately 64 billion dirhams, on account of the introduction of IFRS16. Net borrowings for the first half of the year stood at around 12.8 billion dirhams.
Brent oil holds above $60 as lower inventories boost WTI - Reuters
Brent oil holds above $60 as lower inventories boost WTI - Reuters:
Brent oil held above $60 a barrel on Thursday, withstanding pressure from concerns about economic growth, while a sharp fall in U.S. inventories boosted West Texas Intermediate (WTI) crude futures.
International benchmark Brent crude was up 2 cents at $60.51 a barrel by 1215 GMT. WTI was up 48 cents at $56.26 a barrel.
“If the API (American Petroleum Institute) unexpectedly supplied bullets to oil bulls on Tuesday evening so that they could fire from all cylinders, the EIA flung the door of the ammunition depot wide open yesterday,” Tamas Varga of oil brokerage PVM said.
Brent oil held above $60 a barrel on Thursday, withstanding pressure from concerns about economic growth, while a sharp fall in U.S. inventories boosted West Texas Intermediate (WTI) crude futures.
International benchmark Brent crude was up 2 cents at $60.51 a barrel by 1215 GMT. WTI was up 48 cents at $56.26 a barrel.
“If the API (American Petroleum Institute) unexpectedly supplied bullets to oil bulls on Tuesday evening so that they could fire from all cylinders, the EIA flung the door of the ammunition depot wide open yesterday,” Tamas Varga of oil brokerage PVM said.
#UAE's Utico confident of securing deal for Singapore's Hyflux: CEO - Reuters
UAE's Utico confident of securing deal for Singapore's Hyflux: CEO - Reuters:
United Arab Emirates-based Utico FZC said on Thursday it was confident a restructuring deal with Singapore’s indebted Hyflux Ltd (HYFL.SI) could be reached, after the two sides earlier issued conflicting statements about progress on an agreement.
Utico announced at the start of the week that a deal had been reached in which it would take 88% of Hyflux, but the Singaporean firm said on Wednesday no definitive agreement had been struck although discussions were advanced.
Hyflux, which is under a court-supervised restructuring process, was once considered a national champion running a strategically important water source for the city-state.
United Arab Emirates-based Utico FZC said on Thursday it was confident a restructuring deal with Singapore’s indebted Hyflux Ltd (HYFL.SI) could be reached, after the two sides earlier issued conflicting statements about progress on an agreement.
Utico announced at the start of the week that a deal had been reached in which it would take 88% of Hyflux, but the Singaporean firm said on Wednesday no definitive agreement had been struck although discussions were advanced.
Hyflux, which is under a court-supervised restructuring process, was once considered a national champion running a strategically important water source for the city-state.
MIDEAST STOCKS- #Saudi index hits 8-month low; #Qatar outweighs regional markets - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi index hits 8-month low; Qatar outweighs regional markets - Agricultural Commodities - Reuters:
Saudi Arabian stocks closed at an
eight-month low on Thursday as banking shares continued to weigh
on the market, while Qatar outperformed other major Gulf markets
mainly boosted by financial shares.
On Wednesday, a second batch of Saudi shares was added to
the MSCI emerging markets index after the country's stocks were
first included in the index in May.
The inclusion brought Saudi's share to 2.8% of the index's
total market capitalization.
However, the event failed to provide upward momentum for the
Saudi stocks as receding fund inflows rattled investor
confidence.
Saudi Arabian stocks closed at an
eight-month low on Thursday as banking shares continued to weigh
on the market, while Qatar outperformed other major Gulf markets
mainly boosted by financial shares.
On Wednesday, a second batch of Saudi shares was added to
the MSCI emerging markets index after the country's stocks were
first included in the index in May.
The inclusion brought Saudi's share to 2.8% of the index's
total market capitalization.
However, the event failed to provide upward momentum for the
Saudi stocks as receding fund inflows rattled investor
confidence.
Majid Al Futtaim CEO: Egypt Continues to Be Growth Market
Bloomberg.com:
Alain Bejjani, chief executive officer of Majid Al Futtaim Holding LLC, talks about the company's financial results and business outlook. The Middle East operator of Carrefour SA stores posted a 1% increase in first-half revenue amid "challenging market conditions and more cost-conscious consumer behavior." Bejjani speaks with Bloomberg's Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Alain Bejjani, chief executive officer of Majid Al Futtaim Holding LLC, talks about the company's financial results and business outlook. The Middle East operator of Carrefour SA stores posted a 1% increase in first-half revenue amid "challenging market conditions and more cost-conscious consumer behavior." Bejjani speaks with Bloomberg's Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
IShares MSCI #SaudiArabia ETF Sees Record NYSE Outflows - Bloomberg
IShares MSCI Saudi Arabia ETF Sees Record NYSE Outflows - Bloomberg:
Investors in a New York-listed exchange-traded fund tracking Saudi Arabian stocks withdrew the most money on record, just as MSCI Inc. completed the country’s long-waited upgrade to its widely tracked emerging-markets benchmark.
Outflows from the iShares MSCI Saudi Arabia soared to $119 million on Aug. 27, the most for any day since its inception in 2015, Bloomberg Data show. It’s the biggest ETF focused on Saudi equities trading in the U.S., with $659 million in assets.
It’s been a good week for those seeking to pare bets on a market that brokers including Morgan Stanley say has become too expensive, given weakening fundamentals. MSCI on Tuesday wrapped up the second phase of including Saudi shares in its developing nations index, prompting billions of dollars in inflows from passive funds. Some active managers took advantage of the increased liquidity to reduce their holdings. The main gauge in Riyadh is down 3.3% this week.
Investors in a New York-listed exchange-traded fund tracking Saudi Arabian stocks withdrew the most money on record, just as MSCI Inc. completed the country’s long-waited upgrade to its widely tracked emerging-markets benchmark.
Outflows from the iShares MSCI Saudi Arabia soared to $119 million on Aug. 27, the most for any day since its inception in 2015, Bloomberg Data show. It’s the biggest ETF focused on Saudi equities trading in the U.S., with $659 million in assets.
It’s been a good week for those seeking to pare bets on a market that brokers including Morgan Stanley say has become too expensive, given weakening fundamentals. MSCI on Tuesday wrapped up the second phase of including Saudi shares in its developing nations index, prompting billions of dollars in inflows from passive funds. Some active managers took advantage of the increased liquidity to reduce their holdings. The main gauge in Riyadh is down 3.3% this week.
Oil Drops as U.S. Inventories Optimism Gives Way to Trade Gloom - Bloomberg
Oil Drops as U.S. Inventories Optimism Gives Way to Trade Gloom - Bloomberg:
Oil snapped a two-day gain as investors weighed a sizable drop in U.S. inventories against a trade war that shows few signs it will be resolved.
Futures in New York dropped as much as 0.6% after rallying 4% over the previous two sessions. U.S. stockpiles fell by 10 million barrels last week to the lowest since October 2018, the Energy Information Administration reported. Treasury Secretary Steven Mnuchin said Wednesday that U.S. trade officials expect Chinese negotiators to visit Washington, but he wouldn’t say whether a previously planned September meeting would take place.
Oil snapped a two-day gain as investors weighed a sizable drop in U.S. inventories against a trade war that shows few signs it will be resolved.
Futures in New York dropped as much as 0.6% after rallying 4% over the previous two sessions. U.S. stockpiles fell by 10 million barrels last week to the lowest since October 2018, the Energy Information Administration reported. Treasury Secretary Steven Mnuchin said Wednesday that U.S. trade officials expect Chinese negotiators to visit Washington, but he wouldn’t say whether a previously planned September meeting would take place.
#Dubai Property Developer Sobha Plans IPO Even as Prices Decline - Bloomberg
Dubai Property Developer Sobha Plans IPO Even as Prices Decline - Bloomberg:
Property developer Sobha LLC is planning an initial public offering of its United Arab Emirates business in 2022 even as a slump in prices weighs on developers in its Dubai base.
The company will wait to meet profitability projections before making a final decision on the IPO, founder P.N.C. Menon said in an interview. It hasn’t decided where to list the shares.
Sobha expects revenue to jump to about 2 billion dirhams ($545 million) this year from 620 million dirhams in 2018 as it hands over more homes in its Sobha Hartland development, Menon said. About 6,000 homes will be delivered at the $4 billion project over the next six years.
Property developer Sobha LLC is planning an initial public offering of its United Arab Emirates business in 2022 even as a slump in prices weighs on developers in its Dubai base.
The company will wait to meet profitability projections before making a final decision on the IPO, founder P.N.C. Menon said in an interview. It hasn’t decided where to list the shares.
Sobha expects revenue to jump to about 2 billion dirhams ($545 million) this year from 620 million dirhams in 2018 as it hands over more homes in its Sobha Hartland development, Menon said. About 6,000 homes will be delivered at the $4 billion project over the next six years.
#SaudiArabia's Tadawul to attract $5bln in second phase of MSCI upgrade | ZAWYA MENA Edition
Saudi Arabia's Tadawul to attract $5bln in second phase of MSCI upgrade | ZAWYA MENA Edition:
Having completed its full inclusion on the MSCI emerging markets index, Saudi Arabia’s stock exchange, the Tadawul, is expected to attract an additional $5 billion (18.36 billion dirhams) in equity inflows, according to the Institute of International Finance (IIF).
Saudi Arabia’s stock market, worth approximately $549 billion, is the largest in the region. It will have a weight of 2.8 per cent on the MSCI index.
Investor appetite for Saudi equities spiked in August, and foreign equity inflows to the kingdom surpassed those of India and China during first eight months of this year. The IIF has hailed this as a “remarkable” development given that Saudi Arabia’s economy is just a fraction of the size of the two other countries.
Having completed its full inclusion on the MSCI emerging markets index, Saudi Arabia’s stock exchange, the Tadawul, is expected to attract an additional $5 billion (18.36 billion dirhams) in equity inflows, according to the Institute of International Finance (IIF).
Saudi Arabia’s stock market, worth approximately $549 billion, is the largest in the region. It will have a weight of 2.8 per cent on the MSCI index.
Investor appetite for Saudi equities spiked in August, and foreign equity inflows to the kingdom surpassed those of India and China during first eight months of this year. The IIF has hailed this as a “remarkable” development given that Saudi Arabia’s economy is just a fraction of the size of the two other countries.
Exclusive: Oil giants shower #Qatar with crown jewels in race for LNG prize - Reuters
Exclusive: Oil giants shower Qatar with crown jewels in race for LNG prize - Reuters:
When Royal Dutch Shell wanted to buy a stake last year in a promising exploration block off South Africa, Total, the asset’s main shareholder, used its right to stymie the deal and acquired the share itself, only to sell it on to Qatar Petroleum.
The rapid turn of events caught some of those involved by surprise, according to company sources close to the transaction, whose details have not previously been reported.
For Total, it was part of a wider quest to tighten ties with Qatar Petroleum (QP) in an effort to secure a stake in the Gulf country’s planned expansion of its liquefied natural gas (LNG) facilities, already the world’s largest and one of the most lucrative projects in the energy sector.
When Royal Dutch Shell wanted to buy a stake last year in a promising exploration block off South Africa, Total, the asset’s main shareholder, used its right to stymie the deal and acquired the share itself, only to sell it on to Qatar Petroleum.
The rapid turn of events caught some of those involved by surprise, according to company sources close to the transaction, whose details have not previously been reported.
For Total, it was part of a wider quest to tighten ties with Qatar Petroleum (QP) in an effort to secure a stake in the Gulf country’s planned expansion of its liquefied natural gas (LNG) facilities, already the world’s largest and one of the most lucrative projects in the energy sector.
MIDEAST STOCKS-Banks hurt #Saudi; other major Gulf markets up - Reuters
MIDEAST STOCKS-Banks hurt Saudi; other major Gulf markets up - Reuters:
Saudi stocks slipped on Thursday, extending losses for the second straight session pressured by banking shares, as receding fund inflows continued to keep investors at bay while other major Gulf markets rose.
On Wednesday, a second batch of Saudi shares was added to the MSCI emerging markets index but the move failed to lift the market as funds remain bearish.
Sixty percent of fund managers said they would reduce their investments in Saudi Arabia, displaying bearishness that has carried over from last month.
Saudi stocks slipped on Thursday, extending losses for the second straight session pressured by banking shares, as receding fund inflows continued to keep investors at bay while other major Gulf markets rose.
On Wednesday, a second batch of Saudi shares was added to the MSCI emerging markets index but the move failed to lift the market as funds remain bearish.
Sixty percent of fund managers said they would reduce their investments in Saudi Arabia, displaying bearishness that has carried over from last month.
Wednesday, 28 August 2019
Oil prices gain nearly 2% after drop in U.S. crude inventories - Reuters
Oil prices gain nearly 2% after drop in U.S. crude inventories - Reuters:
Oil prices rose nearly 2% on Wednesday after a larger-than-expected decline in U.S. crude stockpiles helped ease worries about weakening oil demand caused by the trade war between Washington and Beijing.
Brent crude LCOc1 futures settled 98 cents, or 1.7%, higher at $60.49 a barrel. West Texas Intermediate crude CLc1 ended at $55.78 a barrel, rising 85 cents, or 1.6%.
U.S. crude oil inventories fell last week by 10 million barrels, compared with analysts’ expectations for a decrease of 2.1 million barrels, as imports slowed, the Energy Information Administration said.
Oil prices rose nearly 2% on Wednesday after a larger-than-expected decline in U.S. crude stockpiles helped ease worries about weakening oil demand caused by the trade war between Washington and Beijing.
Brent crude LCOc1 futures settled 98 cents, or 1.7%, higher at $60.49 a barrel. West Texas Intermediate crude CLc1 ended at $55.78 a barrel, rising 85 cents, or 1.6%.
U.S. crude oil inventories fell last week by 10 million barrels, compared with analysts’ expectations for a decrease of 2.1 million barrels, as imports slowed, the Energy Information Administration said.
Singapore's Hyflux says no definitive deal reached with #UAE's Utico - Reuters
Singapore's Hyflux says no definitive deal reached with UAE's Utico - Reuters:
Singapore’s indebted Hyflux Ltd (HYFL.SI) said no definitive restructuring deal with Utico FZC has been reached yet after the United Arab Emirates-based utility company said a deal had been agreed where it would take 88% of the water treatment firm.
Both companies are, however, in advanced discussions and were trying to resolve some final issues before a definitive deal could be signed, Hyflux said in a statement to the Singapore Exchange late on Wednesday.
At the start of the week, Utico said a deal had been reached without disclosing financial details.
Singapore’s indebted Hyflux Ltd (HYFL.SI) said no definitive restructuring deal with Utico FZC has been reached yet after the United Arab Emirates-based utility company said a deal had been agreed where it would take 88% of the water treatment firm.
Both companies are, however, in advanced discussions and were trying to resolve some final issues before a definitive deal could be signed, Hyflux said in a statement to the Singapore Exchange late on Wednesday.
At the start of the week, Utico said a deal had been reached without disclosing financial details.
MIDEAST STOCKS- #Saudi stocks slide as funds turn bearish - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi stocks slide as funds turn bearish - Agricultural Commodities - Reuters:
Saudi Arabia's stock market fell sharply
on Wednesday with all its banking shares dropping as receding
fund inflows dampened investor appetite on a day when second
phase of Saudi stocks joined the MSCI emerging markets index.
EFG Hermes said in a note on Wednesday the investment case
for Saudi banks is no longer 'compelling' in their view on the
backdrop of receding passive flows, rates becoming a headwind,
and the emergence of credit quality concerns.
"We think Saudi can drift lower, before finding a support
above the 8k mark. Stock picking would be the name of the game
hereon and companies that deliver good results shall outperform
the broader Index," said Vrajesh Bhandari, senior portfolio
manager at Al Mal Capital.
Saudi Arabia's stock market fell sharply
on Wednesday with all its banking shares dropping as receding
fund inflows dampened investor appetite on a day when second
phase of Saudi stocks joined the MSCI emerging markets index.
EFG Hermes said in a note on Wednesday the investment case
for Saudi banks is no longer 'compelling' in their view on the
backdrop of receding passive flows, rates becoming a headwind,
and the emergence of credit quality concerns.
"We think Saudi can drift lower, before finding a support
above the 8k mark. Stock picking would be the name of the game
hereon and companies that deliver good results shall outperform
the broader Index," said Vrajesh Bhandari, senior portfolio
manager at Al Mal Capital.
Liquidity Fears Stalk the $4 Trillion ETF Market. Here's One Fix - Bloomberg
Liquidity Fears Stalk the $4 Trillion ETF Market. Here's One Fix - Bloomberg:
Market mayhem this month has re-ignited fears about how the $4 trillion U.S. ETF industry will react in a liquidity crunch. Europe may have an answer for averting disaster.
The nightmare scenario: volatility prompts market-makers to withdraw when they’re needed most, blowing out transaction costs and freezing trading. It’s an outcome that’s been raised by the likes of Moody’s Investors Service Inc. and T. Rowe Price Group Inc. this year as late-cycle swings convulse markets.
Some see a potential cure in a practice that’s commonplace from Italy to the U.K. but banned in America: ETF providers paying market-makers directly. The argument goes that conflict-of-interest concerns are misplaced -- and that traders under contract to keep transacting in passive instruments will do so come hell or high water.
Market mayhem this month has re-ignited fears about how the $4 trillion U.S. ETF industry will react in a liquidity crunch. Europe may have an answer for averting disaster.
The nightmare scenario: volatility prompts market-makers to withdraw when they’re needed most, blowing out transaction costs and freezing trading. It’s an outcome that’s been raised by the likes of Moody’s Investors Service Inc. and T. Rowe Price Group Inc. this year as late-cycle swings convulse markets.
Some see a potential cure in a practice that’s commonplace from Italy to the U.K. but banned in America: ETF providers paying market-makers directly. The argument goes that conflict-of-interest concerns are misplaced -- and that traders under contract to keep transacting in passive instruments will do so come hell or high water.
Oil prices rise on drop in U.S. crude inventories - Reuters
Oil prices rise on drop in U.S. crude inventories - Reuters:
Oil prices rose on Wednesday after industry data showing a fall in stockpiles of U.S. crude somewhat eased worries about subdued demand due to the China-U.S. trade war.
Brent crude futures LCOc1 climbed 70 cents to $60.21 a barrel by 1204 GMT. West Texas Intermediate (WTI) crude futures CLc1 gained 79 cents to $55.72 a barrel.
The two benchmarks are headed for monthly losses of around 8% and 5%, respectively, weighed down by trade barriers between the world’s two biggest oil consumers.
Oil prices rose on Wednesday after industry data showing a fall in stockpiles of U.S. crude somewhat eased worries about subdued demand due to the China-U.S. trade war.
Brent crude futures LCOc1 climbed 70 cents to $60.21 a barrel by 1204 GMT. West Texas Intermediate (WTI) crude futures CLc1 gained 79 cents to $55.72 a barrel.
The two benchmarks are headed for monthly losses of around 8% and 5%, respectively, weighed down by trade barriers between the world’s two biggest oil consumers.
MENA fund managers to boost Egypt, #UAE investments, still bearish on #Saudi: Reuters poll - Reuters
MENA fund managers to boost Egypt, UAE investments, still bearish on Saudi: Reuters poll - Reuters:
Middle Eastern funds plan to increase their investments in Egypt and UAE and decrease allocations in Saudi Arabia, while keeping their exposure to other countries in the region at current levels, according to a Reuters poll.
Six of 10 managers polled said they would increase their investments in Egypt, noting falling inflation and interest rates.
Earlier this month, Egypt reported its lowest headline inflation rate in nearly four years, and its central bank cut interest rates by 150 basis points.
Middle Eastern funds plan to increase their investments in Egypt and UAE and decrease allocations in Saudi Arabia, while keeping their exposure to other countries in the region at current levels, according to a Reuters poll.
Six of 10 managers polled said they would increase their investments in Egypt, noting falling inflation and interest rates.
Earlier this month, Egypt reported its lowest headline inflation rate in nearly four years, and its central bank cut interest rates by 150 basis points.
MENA Equities: Best and worst performers in H1 2019 | ZAWYA MENA Edition
MENA Equities: Best and worst performers in H1 2019 | ZAWYA MENA Edition:
Stock markets in the region performed well in H1 2019, as oil and world stocks surged during the first six months of the year.
Zawya has compiled data on the top and worst performing stocks in the UAE, Saudi Arabia and Egypt the first half of the year and calculated the change in market capitalisation in each of the listed countries, based on data from Refintiv’s Eikon.
Sharing views on MENA markets’ performance in H1 2019, Charles-Henry Monchau, head of investment management at Dubai-based Al Mal Capital said: “When looking back at macro numbers over H1 in the region, we can see clear signs of a divergence in local business cycles. Encouragingly, some of the largest regional economies – including Saudi Arabia, the UAE and Egypt – are all showing signs of an acceleration in consumption and investment.”
Stock markets in the region performed well in H1 2019, as oil and world stocks surged during the first six months of the year.
Zawya has compiled data on the top and worst performing stocks in the UAE, Saudi Arabia and Egypt the first half of the year and calculated the change in market capitalisation in each of the listed countries, based on data from Refintiv’s Eikon.
Sharing views on MENA markets’ performance in H1 2019, Charles-Henry Monchau, head of investment management at Dubai-based Al Mal Capital said: “When looking back at macro numbers over H1 in the region, we can see clear signs of a divergence in local business cycles. Encouragingly, some of the largest regional economies – including Saudi Arabia, the UAE and Egypt – are all showing signs of an acceleration in consumption and investment.”
Oil rises after inventory draw eases recession worries - Reuters
Oil rises after inventory draw eases recession worries - Reuters:
Oil prices rose on Wednesday, with U.S. crude gaining 1.3% after an industry report showed stockpiles in the United States, the world’s biggest oil user, fell more than expected, easing worries about economic growth due to the China-U.S. trade war.
Brent crude futures LCOc1 climbed 59 cents, or 1.0%, to $60.10 a barrel by 0652 GMT. West Texas Intermediate (WTI) crude futures CLc1 gained 70 cents, or 1.3%, to $55.63 a barrel.
U.S. crude stockpiles fell sharply last week as imports dropped, plummeting by 11.1 million barrels, compared with expectations for a 2 million-barrel draw, data from industry group the American Petroleum Institute (API), showed.
Oil prices rose on Wednesday, with U.S. crude gaining 1.3% after an industry report showed stockpiles in the United States, the world’s biggest oil user, fell more than expected, easing worries about economic growth due to the China-U.S. trade war.
Brent crude futures LCOc1 climbed 59 cents, or 1.0%, to $60.10 a barrel by 0652 GMT. West Texas Intermediate (WTI) crude futures CLc1 gained 70 cents, or 1.3%, to $55.63 a barrel.
U.S. crude stockpiles fell sharply last week as imports dropped, plummeting by 11.1 million barrels, compared with expectations for a 2 million-barrel draw, data from industry group the American Petroleum Institute (API), showed.
MIDEAST STOCKS- #Saudi stocks fall as second batch joins MSCI index - Reuters
MIDEAST STOCKS-Saudi stocks fall as second batch joins MSCI index - Reuters:
Saudi stocks fell sharply in early trading on Wednesday, as almost all the kingdom’s banks dropped at the start of the second phase of introducing Saudi stocks into the MSCI emerging markets index.
The inclusion of Saudi stocks in the MSCI and FTSE indexes has attracted billions of dollars from foreign investors, who have been net buyers every month this year, sending the Saudi index up nearly 20% at its peak in May.
But since then, geopolitical and trade tensions have reduced the Saudi index’s year-to-date gains to 4.4%.
Saudi stocks fell sharply in early trading on Wednesday, as almost all the kingdom’s banks dropped at the start of the second phase of introducing Saudi stocks into the MSCI emerging markets index.
The inclusion of Saudi stocks in the MSCI and FTSE indexes has attracted billions of dollars from foreign investors, who have been net buyers every month this year, sending the Saudi index up nearly 20% at its peak in May.
But since then, geopolitical and trade tensions have reduced the Saudi index’s year-to-date gains to 4.4%.
Swiss fintech start-up backed by #Dubai is valued at $1bln | ZAWYA MENA Edition
Swiss fintech start-up backed by Dubai is valued at $1bln | ZAWYA MENA Edition:
Swiss financial technology company, Numbrs, backed by the Investment Corporation of Dubai and Josef Ackermann, has taken its value to $1 billion by raising further funding.
Numbrs, available as an app, helps users to manage their existing bank accounts, credit card information, and conduct mobile banking along with personal financial planning.
The Zurich-based fintech start-up raised an additional €36 million ($40 million), bringing the total amount raised to over €200 million ($222.1 million) and its valuation to over $1 billion, making it Europe’s newest unicorn, Bloomberg reported.
Swiss financial technology company, Numbrs, backed by the Investment Corporation of Dubai and Josef Ackermann, has taken its value to $1 billion by raising further funding.
Numbrs, available as an app, helps users to manage their existing bank accounts, credit card information, and conduct mobile banking along with personal financial planning.
The Zurich-based fintech start-up raised an additional €36 million ($40 million), bringing the total amount raised to over €200 million ($222.1 million) and its valuation to over $1 billion, making it Europe’s newest unicorn, Bloomberg reported.
#Kuwait Petroleum to raise $1 billion revolving loan: sources - Reuters
Kuwait Petroleum to raise $1 billion revolving loan: sources - Reuters:
Kuwait Petroleum Corp (KPC) is finalizing a $1 billion loan with a small group of international banks, three sources familiar with the deal said.
The loan, a revolving credit facility, comes amid a slowdown in the regional loan market, as borrowers have increasingly raised financing through bonds to take advantage of lower rates.
The state-owned oil company, which did not respond to a request for comment, plans to invest hundreds of billions of dollars by 2040 as it aims to boost its crude oil production capacity to 4.75 million barrels per day by that date.
Kuwait Petroleum Corp (KPC) is finalizing a $1 billion loan with a small group of international banks, three sources familiar with the deal said.
The loan, a revolving credit facility, comes amid a slowdown in the regional loan market, as borrowers have increasingly raised financing through bonds to take advantage of lower rates.
The state-owned oil company, which did not respond to a request for comment, plans to invest hundreds of billions of dollars by 2040 as it aims to boost its crude oil production capacity to 4.75 million barrels per day by that date.
Remittances: the hidden engine of globalisation
Remittances: the hidden engine of globalisation:
Every month Joy Kyakwita presses a button on her phone and does something in common with millions of other people across the globe: she sends money home.
Ms Kyakwita, a London-based lawyer, gives a third of her salary to her family back home in Uganda, including paying money for school fees for her brothers and nephews.
“I believe that when you pay for them to go on a good course, then there is a good chance of them becoming employable,” she says. “And if they are employed then they will be able to help their siblings as well.”
Every month Joy Kyakwita presses a button on her phone and does something in common with millions of other people across the globe: she sends money home.
Ms Kyakwita, a London-based lawyer, gives a third of her salary to her family back home in Uganda, including paying money for school fees for her brothers and nephews.
“I believe that when you pay for them to go on a good course, then there is a good chance of them becoming employable,” she says. “And if they are employed then they will be able to help their siblings as well.”
Tuesday, 27 August 2019
Oil strengthens in volatile trade ahead of expected U.S. crude drawdown - Reuters
Oil strengthens in volatile trade ahead of expected U.S. crude drawdown - Reuters:
Oil prices rose in volatile trade on Tuesday supported by expectations of a drawdown in U.S. crude inventories, though gains were capped by worries about a recession and uncertainty over a China-U.S. trade deal.
Brent crude LCOc1 settled up 81 cents, or 1.4%, at $59.51 a barrel. U.S. West Texas Intermediate crude CLc1 ended $1.29, or 2.4%, higher at $54.93 a barrel.
“We could have another one of these blockbuster (U.S. oil inventory) drawdowns - that’s supportive,” said John Kilduff, a partner at Again Capital Management in New York.
U.S. crude oil inventories were forecast to have fallen by over 2 million barrels last week, a Reuters poll showed, ahead of industry data at 4:30 p.m. EDT (2030 GMT) and the government’s report on Wednesday morning.
Oil prices rose in volatile trade on Tuesday supported by expectations of a drawdown in U.S. crude inventories, though gains were capped by worries about a recession and uncertainty over a China-U.S. trade deal.
Brent crude LCOc1 settled up 81 cents, or 1.4%, at $59.51 a barrel. U.S. West Texas Intermediate crude CLc1 ended $1.29, or 2.4%, higher at $54.93 a barrel.
“We could have another one of these blockbuster (U.S. oil inventory) drawdowns - that’s supportive,” said John Kilduff, a partner at Again Capital Management in New York.
U.S. crude oil inventories were forecast to have fallen by over 2 million barrels last week, a Reuters poll showed, ahead of industry data at 4:30 p.m. EDT (2030 GMT) and the government’s report on Wednesday morning.
#Saudi Sovereign Wealth Fund Finalizes Terms on $10 Billion Loan - Bloomberg
Saudi Sovereign Wealth Fund Finalizes Terms on $10 Billion Loan - Bloomberg:
Saudi Arabia’s sovereign wealth fund finalized the terms of a $10 billion loan it’s seeking to raise from a group of banks, according to people familiar with the matter.
The Public Investment Fund will pay 30 basis points over the London Interbank Offered Rate for the bridge loan -- less than half the rate of its first borrowing, the people said, asking not to be identified because the information is private. The financing will have a one-year tenor with an option to extend by an additional 12 months, they said.
The fund received more than $20 billion of offers from the banks, the people said. The loan will provide some liquidity for the PIF ahead of its Saudi Basic Industries Corp. stake sale, said one of the people. A spokesman for the PIF declined to comment.
Saudi Arabia’s sovereign wealth fund finalized the terms of a $10 billion loan it’s seeking to raise from a group of banks, according to people familiar with the matter.
The Public Investment Fund will pay 30 basis points over the London Interbank Offered Rate for the bridge loan -- less than half the rate of its first borrowing, the people said, asking not to be identified because the information is private. The financing will have a one-year tenor with an option to extend by an additional 12 months, they said.
The fund received more than $20 billion of offers from the banks, the people said. The loan will provide some liquidity for the PIF ahead of its Saudi Basic Industries Corp. stake sale, said one of the people. A spokesman for the PIF declined to comment.
#UAE Central Bank's gross assets reaches $810.84bln | ZAWYA MENA Edition
UAE Central Bank's gross assets reaches $810.84bln | ZAWYA MENA Edition:
The UAE Central Bank has announced that gross bank assets, including bankers’ acceptances, rose by 0.6 percent, climbing from AED2958.6 billion at the end of June 2019 to AED2975.8 billion at the end of July 2019.
Gross credit increased by 0.7 percent from AED1692.7 billion at the end of June 2019 to AED1704.9 billion at the end of July 2019.
During July 2019, total bank deposits grew by AED3.3 billion, attributable to an AED6.3 billion rise in Non Resident Deposits, dominating the decline of AED3 billion in Resident Deposits.
The UAE Central Bank has announced that gross bank assets, including bankers’ acceptances, rose by 0.6 percent, climbing from AED2958.6 billion at the end of June 2019 to AED2975.8 billion at the end of July 2019.
Gross credit increased by 0.7 percent from AED1692.7 billion at the end of June 2019 to AED1704.9 billion at the end of July 2019.
During July 2019, total bank deposits grew by AED3.3 billion, attributable to an AED6.3 billion rise in Non Resident Deposits, dominating the decline of AED3 billion in Resident Deposits.
#Iran could restore oil output to pre-sanctions level within three days: minister - Reuters
Iran could restore oil output to pre-sanctions level within three days: minister - Reuters:
Iran would need three days to lift its oil production back to the level it was at before U.S. sanctions were imposed, the semi-official Mehr news agency quoted Iranian Oil Minister Bijan Zanganeh as saying on Tuesday.
“Three days are needed to return production to the levels before the reduction,” Zanganeh said, according to the report.
U.S. President Donald Trump withdrew from world powers’ landmark 2015 nuclear deal with Iran last year and reimposed sanctions in an effort to curb the Islamic Republic’s ballistic missile program and support for regional proxies.
Iran would need three days to lift its oil production back to the level it was at before U.S. sanctions were imposed, the semi-official Mehr news agency quoted Iranian Oil Minister Bijan Zanganeh as saying on Tuesday.
“Three days are needed to return production to the levels before the reduction,” Zanganeh said, according to the report.
U.S. President Donald Trump withdrew from world powers’ landmark 2015 nuclear deal with Iran last year and reimposed sanctions in an effort to curb the Islamic Republic’s ballistic missile program and support for regional proxies.
#Qatar Airways has full confidence in Cathay Pacific, eyes bigger stake - Reuters
Qatar Airways has full confidence in Cathay Pacific, eyes bigger stake - Reuters:
Qatar Airways has full confidence in Cathay Pacific Airways Ltd (0293.HK) and will increase its 10% stake in the Hong Kong carrier if it has any opportunity to do so, the Qatari airline’s chief executive said on Tuesday.
Cathay has become the biggest corporate casualty of political unrest in Hong Kong after China demanded it suspend staff involved in, or who support, anti-government demonstrations.
“Cathay Pacific is there to stay, and to expand and to serve the people of both Hong Kong and China, as Hong Kong is an integral part of mainland China,” Qatar Airways’ Chief Executive Akbar al-Baker said. “We have no concern about the brand, we have no concern on the viability of the airline.”
Qatar Airways has full confidence in Cathay Pacific Airways Ltd (0293.HK) and will increase its 10% stake in the Hong Kong carrier if it has any opportunity to do so, the Qatari airline’s chief executive said on Tuesday.
Cathay has become the biggest corporate casualty of political unrest in Hong Kong after China demanded it suspend staff involved in, or who support, anti-government demonstrations.
“Cathay Pacific is there to stay, and to expand and to serve the people of both Hong Kong and China, as Hong Kong is an integral part of mainland China,” Qatar Airways’ Chief Executive Akbar al-Baker said. “We have no concern about the brand, we have no concern on the viability of the airline.”
#Kuwait Petroleum to raise $1 billion revolving loan: sources - Reuters
Kuwait Petroleum to raise $1 billion revolving loan: sources - Reuters:
Kuwait Petroleum Corp (KPC) is finalizing a $1 billion loan with a small group of international banks, three sources familiar with the deal said.
The loan, a revolving credit facility, comes amid a slowdown in the regional loan market, as borrowers have increasingly raised financing through bonds to take advantage of lower rates.
The state-owned oil company, which did not respond to a request for comment, plans to invest hundreds of billions of dollars by 2040 as it aims to boost its crude oil production capacity to 4.75 million barrels per day by that date.
Kuwait Petroleum Corp (KPC) is finalizing a $1 billion loan with a small group of international banks, three sources familiar with the deal said.
The loan, a revolving credit facility, comes amid a slowdown in the regional loan market, as borrowers have increasingly raised financing through bonds to take advantage of lower rates.
The state-owned oil company, which did not respond to a request for comment, plans to invest hundreds of billions of dollars by 2040 as it aims to boost its crude oil production capacity to 4.75 million barrels per day by that date.
A complicated Lebanese marriage on the rocks | Financial Times
A complicated Lebanese marriage on the rocks | Financial Times:
Travelling to Beirut in September, air passengers found a paean to a central bank governor in the seat-back pockets in front of them. The in-flight magazine celebrated Riad Salamé’s 25th year at the helm of the Banque du Liban, which owns the national carrier Middle East Airlines — his face was in heroic profile on the glossy black and white cover.
Lauded as an “engineer of stability in a time of crises”, Mr Salamé was particularly praised for his management of the Lebanese lira-US dollar peg, held at about 1,500 lira to the dollar, for more than two decades.
But reports this month that the black-market value of the lira has slipped to 1,560 to the dollar have shaken that reputation. “It looks like he’s losing control of the peg,” said an ex-banker in a smart, semi-deserted restaurant — a sign of straitened times in Beirut’s ostentatious downtown.
Travelling to Beirut in September, air passengers found a paean to a central bank governor in the seat-back pockets in front of them. The in-flight magazine celebrated Riad Salamé’s 25th year at the helm of the Banque du Liban, which owns the national carrier Middle East Airlines — his face was in heroic profile on the glossy black and white cover.
Lauded as an “engineer of stability in a time of crises”, Mr Salamé was particularly praised for his management of the Lebanese lira-US dollar peg, held at about 1,500 lira to the dollar, for more than two decades.
But reports this month that the black-market value of the lira has slipped to 1,560 to the dollar have shaken that reputation. “It looks like he’s losing control of the peg,” said an ex-banker in a smart, semi-deserted restaurant — a sign of straitened times in Beirut’s ostentatious downtown.
Banks close to hiring adviser for debt talks with #AbuDhabi's Gulf Marine Services - sources - Reuters
Banks close to hiring adviser for debt talks with Abu Dhabi's Gulf Marine Services - sources - Reuters:
Creditors of Abu Dhabi-based Gulf Marine Services (GMS) are close to hiring an adviser to help them renegotiate debt terms, two sources familiar with the matter said.
London-listed GMS, which provides support vessels for offshore oil and gas and other energy installations, has been hurt by a downturn in the oil and gas services industry after a slump in oil prices in recent years reduced demand.
GMS had $400 million in total net debt at the end of last year and is renegotiating terms with creditors after it said it may not be able to meet principal debt repayments late next year.
Creditors of Abu Dhabi-based Gulf Marine Services (GMS) are close to hiring an adviser to help them renegotiate debt terms, two sources familiar with the matter said.
London-listed GMS, which provides support vessels for offshore oil and gas and other energy installations, has been hurt by a downturn in the oil and gas services industry after a slump in oil prices in recent years reduced demand.
GMS had $400 million in total net debt at the end of last year and is renegotiating terms with creditors after it said it may not be able to meet principal debt repayments late next year.
Property investment: #UAE rental yields higher than New York, London | ZAWYA MENA Edition
Property investment: UAE rental yields higher than New York, London | ZAWYA MENA Edition:
UAE could be one of the most favourable places for property investments if rental yields is taken as a benchmark.
Landlords get higher rental yields, one of the most important considerations for mid to long-term investors from apartments in Dubai, and make profit by renting studios than large apartments, property portal Property Finder said in its Trends report.
The average rental yield in property hotspots such as London (2.7 percent), Hong Kong (2.4 percent), New York (2.9 percent) and Singapore (2.5 percent) hover in the low single digits while Dubai properties consistently offer over 7 percent gross returns on average, the report said.
UAE could be one of the most favourable places for property investments if rental yields is taken as a benchmark.
Landlords get higher rental yields, one of the most important considerations for mid to long-term investors from apartments in Dubai, and make profit by renting studios than large apartments, property portal Property Finder said in its Trends report.
The average rental yield in property hotspots such as London (2.7 percent), Hong Kong (2.4 percent), New York (2.9 percent) and Singapore (2.5 percent) hover in the low single digits while Dubai properties consistently offer over 7 percent gross returns on average, the report said.
Oil rises as hopes grow for U.S.-China trade breakthrough - Reuters
Oil rises as hopes grow for U.S.-China trade breakthrough - Reuters:
Oil prices rose on Tuesday after U.S. President Donald Trump predicted a trade deal with China following positive comments by Beijing, calming concerns raised by an earlier round of tit-for-tat tariff hikes.
Brent crude LCOc1 was up 39 cents, or 0.7%, at $59.09 a barrel by 1220 GMT, after falling 1% in the previous session. Tuesday’s slide was the third daily decline in a row.
U.S. West Texas Intermediate crude futures CLc1 were up 57 cents, or 1.1%, at $54.21, after a 1% fall on Monday and heading for a fourth daily decline.
Oil prices rose on Tuesday after U.S. President Donald Trump predicted a trade deal with China following positive comments by Beijing, calming concerns raised by an earlier round of tit-for-tat tariff hikes.
Brent crude LCOc1 was up 39 cents, or 0.7%, at $59.09 a barrel by 1220 GMT, after falling 1% in the previous session. Tuesday’s slide was the third daily decline in a row.
U.S. West Texas Intermediate crude futures CLc1 were up 57 cents, or 1.1%, at $54.21, after a 1% fall on Monday and heading for a fourth daily decline.
MIDEAST STOCKS- #Saudi stocks up ahead of MSCI entry, fund inflows boost #Qatar, #UAE - Reuters
MIDEAST STOCKS-Saudi stocks up ahead of MSCI entry, fund inflows boost Qatar, UAE - Reuters:
Saudi Arabian stocks closed higher on
Tuesday as investors bought ahead of the addition of more Saudi
stocks to the MSCI emerging markets index, while the United Arab
Emirates and Qatar markets also gained.
Saudi's benchmark index closed up 0.3% after
spending most of the day in the red. Samba Financial Group
rose 3.6% and Saudi Basic Industries
advanced 1.8%.
A second batch of Saudi shares will be added to the MSCI
emerging markets index on Wednesday after the country's stocks
were first included in the index in May.
Saudi Arabian stocks closed higher on
Tuesday as investors bought ahead of the addition of more Saudi
stocks to the MSCI emerging markets index, while the United Arab
Emirates and Qatar markets also gained.
Saudi's benchmark index closed up 0.3% after
spending most of the day in the red. Samba Financial Group
rose 3.6% and Saudi Basic Industries
advanced 1.8%.
A second batch of Saudi shares will be added to the MSCI
emerging markets index on Wednesday after the country's stocks
were first included in the index in May.
#Egypt’s economic turnround hailed by investors | Financial Times
Egypt’s economic turnround hailed by investors | Financial Times:
Three years ago, Egypt’s economy was teetering on the abyss, as entrepreneurs scoured the black market for dollars and foreign investors shunned the country. Now it is being hailed as one of the region’s fastest-growing economies, favoured by international bond investors seeking high yields in an increasingly uncertain global environment.
The turnround represents an important success for the authoritarian regime of President Abdel Fattah al-Sisi. His government has been widely criticised by human rights groups for a severe crackdown on freedoms, but investors have praised its implementation of bold and politically sensitive reforms that previous administrations balked at.
The challenge for Mr Sisi, a former general who ousted his elected predecessor in 2013, is to turn the country’s macroeconomic improvements into prosperity for its 100m people. Poverty has been rising, official statistics say, and foreign direct investment is paltry outside the oil and gas sector.
Three years ago, Egypt’s economy was teetering on the abyss, as entrepreneurs scoured the black market for dollars and foreign investors shunned the country. Now it is being hailed as one of the region’s fastest-growing economies, favoured by international bond investors seeking high yields in an increasingly uncertain global environment.
The turnround represents an important success for the authoritarian regime of President Abdel Fattah al-Sisi. His government has been widely criticised by human rights groups for a severe crackdown on freedoms, but investors have praised its implementation of bold and politically sensitive reforms that previous administrations balked at.
The challenge for Mr Sisi, a former general who ousted his elected predecessor in 2013, is to turn the country’s macroeconomic improvements into prosperity for its 100m people. Poverty has been rising, official statistics say, and foreign direct investment is paltry outside the oil and gas sector.
MIDEAST STOCKS-Banks lead #Saudi lower, #UAE extends gains - Agricultural Commodities - Reuters
MIDEAST STOCKS-Banks lead Saudi lower, UAE extends gains - Agricultural Commodities - Reuters:
Saudi Arabia’s shares gave up early gains on Tuesday as banks led the index lower, while markets in the United Arab Emirates extended gains after a recent sell-off made stock valuations more attractive to investors.
Saudi’s index rose as much as 0.8% at the open before changing tack to trade 1.1% lower. Al Rajhi Bank dropped 2.2% and Riyad Bank 4.4%.
A second batch of Saudi shares will be added to the MSCI emerging markets index on Wednesday after the country’s stocks were first included in the index in May.
Saudi Arabia’s shares gave up early gains on Tuesday as banks led the index lower, while markets in the United Arab Emirates extended gains after a recent sell-off made stock valuations more attractive to investors.
Saudi’s index rose as much as 0.8% at the open before changing tack to trade 1.1% lower. Al Rajhi Bank dropped 2.2% and Riyad Bank 4.4%.
A second batch of Saudi shares will be added to the MSCI emerging markets index on Wednesday after the country’s stocks were first included in the index in May.
Oil rises as hopes grow for U.S.-China trade breakthrough - Reuters
Oil rises as hopes grow for U.S.-China trade breakthrough - Reuters:
Oil prices rose on Tuesday after U.S. President Donald Trump predicted a trade deal with China after positive comments by Beijing, calming nerves after a round of tit-for-tat tariff hikes had sent markets reeling.
Brent crude LCOc1 was up by 26 cents, or 0.4%, at $58.96 a barrel by 0636 GMT, after falling 1% in the previous session, dropping for a third day in a row.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were up by 23 cents, or 0.4%, at $53.87 a barrel, having also dropped 1% on Monday for a fourth day of declines.
Trump on Monday said he believed China was sincere about wanting to reach a deal, while Chinese Vice Premier Liu He said China was willing to resolve the dispute through “calm” negotiations, settling global markets.
Oil prices rose on Tuesday after U.S. President Donald Trump predicted a trade deal with China after positive comments by Beijing, calming nerves after a round of tit-for-tat tariff hikes had sent markets reeling.
Brent crude LCOc1 was up by 26 cents, or 0.4%, at $58.96 a barrel by 0636 GMT, after falling 1% in the previous session, dropping for a third day in a row.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were up by 23 cents, or 0.4%, at $53.87 a barrel, having also dropped 1% on Monday for a fourth day of declines.
Trump on Monday said he believed China was sincere about wanting to reach a deal, while Chinese Vice Premier Liu He said China was willing to resolve the dispute through “calm” negotiations, settling global markets.
French oil major Total signs asset transfer deals with #Qatar Petroleum - Reuters
French oil major Total signs asset transfer deals with Qatar Petroleum - Reuters:
French oil major Total (TOTF.PA) said it had signed deals to transfer some of its assets in Kenya, Guyana and Namibia to Qatar Petroleum.
In Namibia, Total will transfer to Qatar Petroleum a 30% interest in Block 2913B while keeping a 40% interest. Total will also transfer 28.33% in Block 2912 while retaining a 37.78% stake.
In Guyana, Qatar Petroleum will have 40% of the company holding Total’s existing 25% interests in the Orinduik and Kanuku blocks. In Kenya, Total and Eni will transfer a combined 25% interest in Blocks L11A, L11B and L12 to Qatar Petroleum.
French oil major Total (TOTF.PA) said it had signed deals to transfer some of its assets in Kenya, Guyana and Namibia to Qatar Petroleum.
In Namibia, Total will transfer to Qatar Petroleum a 30% interest in Block 2913B while keeping a 40% interest. Total will also transfer 28.33% in Block 2912 while retaining a 37.78% stake.
In Guyana, Qatar Petroleum will have 40% of the company holding Total’s existing 25% interests in the Orinduik and Kanuku blocks. In Kenya, Total and Eni will transfer a combined 25% interest in Blocks L11A, L11B and L12 to Qatar Petroleum.
UPDATE 1- #UAE's Utico says signs deal to rescue Singapore's Hyflux - Reuters
UPDATE 1-UAE's Utico says signs deal to rescue Singapore's Hyflux - Reuters:
United Arab Emirates-based utility Utico FZC said on Tuesday it had agreed a restructuring deal with Singapore’s indebted water treatment firm Hyflux Ltd , giving it 88% of the company.
Once lauded as a national champion running a strategically important water source for the city-state, Hyflux is now under a court-supervised restructuring process that could wipe out the holdings of tens of thousands of retail investors.
Utico said it agreed a deal with Hyflux on Monday, the last day before an exclusive discussion agreement ended. The financial details were not disclosed.
United Arab Emirates-based utility Utico FZC said on Tuesday it had agreed a restructuring deal with Singapore’s indebted water treatment firm Hyflux Ltd , giving it 88% of the company.
Once lauded as a national champion running a strategically important water source for the city-state, Hyflux is now under a court-supervised restructuring process that could wipe out the holdings of tens of thousands of retail investors.
Utico said it agreed a deal with Hyflux on Monday, the last day before an exclusive discussion agreement ended. The financial details were not disclosed.
Monday, 26 August 2019
Emerging-Market ETF Flows on Brink of Turning Negative for Year - Bloomberg
Emerging-Market ETF Flows on Brink of Turning Negative for Year - Bloomberg:
Emerging-market exchange-traded funds flows are on the brink of turning negative for the year after investors extended a sell-off for a seventh consecutive week.
Outflows from U.S.-listed ETFs that invest across developing nations as well as those that target specific countries totaled $972.3 million in the week ended Aug. 23, according to data compiled by Bloomberg. The current run of outflows has drained $12.3 billion from the market, compared with a $7.8 billion loss during a six-week sell-off that started in May. This year’s net inflow now stands at a mere $109.9 million.
Outflows continued to be led by stock funds last week, while bond ETFs posted a small inflow. The $24.4 billion iShares MSCI Emerging Markets ETF was the biggest loser among developing-nation equity funds, dropping $556 million in the fifth straight week of outflows. The $52 billion iShares Core MSCI Emerging Markets ETF, meanwhile, was unchanged after four weeks of withdrawals.
Emerging-market exchange-traded funds flows are on the brink of turning negative for the year after investors extended a sell-off for a seventh consecutive week.
Outflows from U.S.-listed ETFs that invest across developing nations as well as those that target specific countries totaled $972.3 million in the week ended Aug. 23, according to data compiled by Bloomberg. The current run of outflows has drained $12.3 billion from the market, compared with a $7.8 billion loss during a six-week sell-off that started in May. This year’s net inflow now stands at a mere $109.9 million.
Outflows continued to be led by stock funds last week, while bond ETFs posted a small inflow. The $24.4 billion iShares MSCI Emerging Markets ETF was the biggest loser among developing-nation equity funds, dropping $556 million in the fifth straight week of outflows. The $52 billion iShares Core MSCI Emerging Markets ETF, meanwhile, was unchanged after four weeks of withdrawals.
OPEC supply cuts fail to ignite prices - Bloomberg
OPEC supply cuts fail to ignite prices - Bloomberg:
The consortium of oil-producing nations has seen few tangible results from the production cuts begun in January. Although prices moved slightly northward in April to $66 per barrel, WTI crude has actually fallen 19.5% since then, and some OPEC+ members are getting cold feet. Saudi Arabia has agreed to shoulder most of the burden of cuts until September, but slowing global demand may see the entire strategy abandoned. Insights via @CMEGroup (Source: TicToc)
The consortium of oil-producing nations has seen few tangible results from the production cuts begun in January. Although prices moved slightly northward in April to $66 per barrel, WTI crude has actually fallen 19.5% since then, and some OPEC+ members are getting cold feet. Saudi Arabia has agreed to shoulder most of the burden of cuts until September, but slowing global demand may see the entire strategy abandoned. Insights via @CMEGroup (Source: TicToc)
Oil falls 1% as U.S.-Iran optimism faces U.S.-China trade deal hopes - Reuters
Oil falls 1% as U.S.-Iran optimism faces U.S.-China trade deal hopes - Reuters:
Oil prices fell 1% on Monday on the outlook for increased supply of Iranian crude after France’s president lifted hopes for a deal between Washington and Tehran, but losses were limited by optimism surrounding a U.S.-China trade deal.
Brent crude lost 64 cents, or 1.1%, to settle at $58.70 a barrel, after hitting a session high of $60.17.
U.S. West Texas Intermediate (WTI) crude futures settled 53 cents, or 1%, lower at $53.64 a barrel.
Prices fell after French President Emmanuel Macron said preparations were underway for a meeting between Iranian President Hassan Rouhani and U.S. President Donald Trump in the coming weeks to find a solution to a nuclear standoff.
Oil prices fell 1% on Monday on the outlook for increased supply of Iranian crude after France’s president lifted hopes for a deal between Washington and Tehran, but losses were limited by optimism surrounding a U.S.-China trade deal.
Brent crude lost 64 cents, or 1.1%, to settle at $58.70 a barrel, after hitting a session high of $60.17.
U.S. West Texas Intermediate (WTI) crude futures settled 53 cents, or 1%, lower at $53.64 a barrel.
Prices fell after French President Emmanuel Macron said preparations were underway for a meeting between Iranian President Hassan Rouhani and U.S. President Donald Trump in the coming weeks to find a solution to a nuclear standoff.
Oil steadies as U.S.-Iran optimism faces U.S.-China trade deal hopes - Reuters
Oil steadies as U.S.-Iran optimism faces U.S.-China trade deal hopes - Reuters:
Oil prices steadied on Monday after France’s president lifted hopes for a deal between the United States and Iran, while optimism for easing U.S.-China trade tensions supported prices.
Brent crude fell 13 cents to $59.21 a barrel by 11:35 a.m. EDT (1535 GMT), after earlier hitting a session high of $60.17.
U.S. West Texas Intermediate (WTI) crude futures rose 16 cents to $54.33 a barrel, after reaching $55.26 a barrel.
Prices fell after French President Emmanuel Macron said preparations were underway for a meeting between Iranian President Hassan Rouhani and U.S. President Donald Trump in the coming weeks to find a solution to a nuclear standoff.
Oil prices steadied on Monday after France’s president lifted hopes for a deal between the United States and Iran, while optimism for easing U.S.-China trade tensions supported prices.
Brent crude fell 13 cents to $59.21 a barrel by 11:35 a.m. EDT (1535 GMT), after earlier hitting a session high of $60.17.
U.S. West Texas Intermediate (WTI) crude futures rose 16 cents to $54.33 a barrel, after reaching $55.26 a barrel.
Prices fell after French President Emmanuel Macron said preparations were underway for a meeting between Iranian President Hassan Rouhani and U.S. President Donald Trump in the coming weeks to find a solution to a nuclear standoff.
#Saudi Aramco IPO Holds Biggest Prize for World's Top Banks - Bloomberg
Saudi Aramco IPO Holds Biggest Prize for World's Top Banks - Bloomberg:
Global banks are set to start making their case to Saudi Aramco this week in the hopes of being hired for what looks to be the world's largest initial public offering. Bloomberg's Sonali Basak and Bloomberg Opinion columnist Brooke Sutherland have the details on "Bloomberg Daybreak: Americas." Sutherland's opinions are her own. (Source: Bloomberg)
Global banks are set to start making their case to Saudi Aramco this week in the hopes of being hired for what looks to be the world's largest initial public offering. Bloomberg's Sonali Basak and Bloomberg Opinion columnist Brooke Sutherland have the details on "Bloomberg Daybreak: Americas." Sutherland's opinions are her own. (Source: Bloomberg)
BP, Chevron among approved bidders for Brazil October oil auction: ANP - Reuters
BP, Chevron among approved bidders for Brazil October oil auction: ANP - Reuters:
BP PLC (BP.L), Chevron Corp (CVX.N) and China’s CNOOC (0883.HK) are among 12 companies cleared to bid in an October exploration rights auction in Brazil, oil regulator ANP said on Monday.
Exxon Mobil Corp (XOM.N), Colombia’s Ecopetrol SA (ECO.CN), Norway’s Equinor ASA (EQNR.OL), Australia’s Karoon (KAR.AX), Qatar’s QPI, Spain’s Repsol SA (REP.MC), Royal Dutch Shell PLC (RDSa.L), France’s Total SA (TOTF.PA) and Brazil’s state-controlled Petroleo Brasileiro SA (PETR4.SA) also won approval to bid in the auction.
BP PLC (BP.L), Chevron Corp (CVX.N) and China’s CNOOC (0883.HK) are among 12 companies cleared to bid in an October exploration rights auction in Brazil, oil regulator ANP said on Monday.
Exxon Mobil Corp (XOM.N), Colombia’s Ecopetrol SA (ECO.CN), Norway’s Equinor ASA (EQNR.OL), Australia’s Karoon (KAR.AX), Qatar’s QPI, Spain’s Repsol SA (REP.MC), Royal Dutch Shell PLC (RDSa.L), France’s Total SA (TOTF.PA) and Brazil’s state-controlled Petroleo Brasileiro SA (PETR4.SA) also won approval to bid in the auction.
MIDEAST STOCKS- #Saudi inches up as trade tensions ease, cheaper valuations lift #UAE - Reuters
MIDEAST STOCKS-Saudi inches up as trade tensions ease, cheaper valuations lift UAE - Reuters:
Saudi Arabia's stocks bounced back from
earlier losses on Monday with the United States and China
seeking to soothe trade tensions, while markets in the United
Arab Emirates rose after recent sell-offs made stock valuations
more attractive.
Beijing called for calm and U.S. President Donald Trump
predicted a trade deal between the world's two largest economies
after markets fell in response to new tariffs from both
countries.
Oil prices also rose on the concillatory signs, following
losses incurred after both the sides had levelled more tariffs
on each other's exports.
Saudi Arabia's stocks bounced back from
earlier losses on Monday with the United States and China
seeking to soothe trade tensions, while markets in the United
Arab Emirates rose after recent sell-offs made stock valuations
more attractive.
Beijing called for calm and U.S. President Donald Trump
predicted a trade deal between the world's two largest economies
after markets fell in response to new tariffs from both
countries.
Oil prices also rose on the concillatory signs, following
losses incurred after both the sides had levelled more tariffs
on each other's exports.
Emerging Bond Investors Haven’t Been This Defensive Since Lehman - Bloomberg
Emerging Bond Investors Haven’t Been This Defensive Since Lehman - Bloomberg:
With the U.S. and China’s trade war appearing to take a new turn every day, emerging-market investors are getting more cautious. By one measure, they are the most defensive they have been in more than a decade.
High-grade bonds in developing nations have returned 3% this month, while junk-rated securities in emerging markets have lost 2.7%, according to JPMorgan Chase & Co.’s indexes. The last time the outperformance of the former was so big was in October 2008, the month after Lehman Brothers collapsed.
It was a different story earlier in the year as investors piled into riskier countries in a hunt for higher yields.
With the U.S. and China’s trade war appearing to take a new turn every day, emerging-market investors are getting more cautious. By one measure, they are the most defensive they have been in more than a decade.
High-grade bonds in developing nations have returned 3% this month, while junk-rated securities in emerging markets have lost 2.7%, according to JPMorgan Chase & Co.’s indexes. The last time the outperformance of the former was so big was in October 2008, the month after Lehman Brothers collapsed.
It was a different story earlier in the year as investors piled into riskier countries in a hunt for higher yields.
Oil rises on hopes of easing U.S.-China trade tension - Reuters
Oil rises on hopes of easing U.S.-China trade tension - Reuters:
Oil prices rose on Monday after the United States and China both suggested they could ease up in a trade war that has undermined the outlook for the global economy and crude demand.
Brent was up 38 cents, or 0.64%, at $59.72 a barrel by 1200 GMT, while U.S. oil was up 54 cents, or 1%, at $54.71 a barrel.
U.S. President Donald Trump said on Monday he believed China was seeking a trade deal after he said Beijing contacted U.S. officials overnight to say it wanted a return to dialogue, adding on Twitter: “talks are continuing!”
Oil prices rose on Monday after the United States and China both suggested they could ease up in a trade war that has undermined the outlook for the global economy and crude demand.
Brent was up 38 cents, or 0.64%, at $59.72 a barrel by 1200 GMT, while U.S. oil was up 54 cents, or 1%, at $54.71 a barrel.
U.S. President Donald Trump said on Monday he believed China was seeking a trade deal after he said Beijing contacted U.S. officials overnight to say it wanted a return to dialogue, adding on Twitter: “talks are continuing!”
#Dubai's GEMS Education says #Saudi venture buys Ma'arif - Reuters
Dubai's GEMS Education says Saudi venture buys Ma'arif - Reuters:
Dubai-based school operator GEMS Education said on Monday its joint venture in Saudi Arabia had completed the acquisition of Ma’arif, the largest education company in the kingdom.
Blackstone-backed GEMS did not give a value for the purchase by its joint venture, which is co-owned by Saudi Arabia’s General Organization for Social Insurance.
Dubai-based school operator GEMS Education said on Monday its joint venture in Saudi Arabia had completed the acquisition of Ma’arif, the largest education company in the kingdom.
Blackstone-backed GEMS did not give a value for the purchase by its joint venture, which is co-owned by Saudi Arabia’s General Organization for Social Insurance.
#Dubai FDI CEO Fahad Al Gergawi on Dubai FDI - Bloomberg
Dubai FDI CEO Fahad Al Gergawi on Dubai FDI - Bloomberg:
Fahad Al Gergawi, chief executive officer at Dubai FDI, discusses foreign direct investment in Dubai and where he’s targeting. He speaks exclusively on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Fahad Al Gergawi, chief executive officer at Dubai FDI, discusses foreign direct investment in Dubai and where he’s targeting. He speaks exclusively on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
#Saudi Share Trading Set to Jump on MSCI as Trade Woes Dominate - Bloomberg
Saudi Share Trading Set to Jump on MSCI as Trade Woes Dominate - Bloomberg:
It’s set to be a busy week for Saudi stocks, with volumes likely to surge as index compiler MSCI Inc. completes the country’s promotion to an emerging market just as trade tensions dominate investor sentiment.
Saudi Arabia’s weighting on the New York-based company’s MSCI Emerging Markets Index will increase to 2.83% from 1.45%, based on Aug. 27 closing prices, the compiler said in a statement earlier this month. When the first part of the upgrade took place in May, share trading in the country leapt to almost $8 billion in a single day, the most in almost 13 years.
The heightened interest expected for Tuesday would be driven mostly by foreign investors who passively track MSCI indexes. Their purchases from abroad have helped the index in Riyadh outperform equities markets in developing markets this year.
It’s set to be a busy week for Saudi stocks, with volumes likely to surge as index compiler MSCI Inc. completes the country’s promotion to an emerging market just as trade tensions dominate investor sentiment.
Saudi Arabia’s weighting on the New York-based company’s MSCI Emerging Markets Index will increase to 2.83% from 1.45%, based on Aug. 27 closing prices, the compiler said in a statement earlier this month. When the first part of the upgrade took place in May, share trading in the country leapt to almost $8 billion in a single day, the most in almost 13 years.
The heightened interest expected for Tuesday would be driven mostly by foreign investors who passively track MSCI indexes. Their purchases from abroad have helped the index in Riyadh outperform equities markets in developing markets this year.
#SaudiArabia's Red Sea Development Seeks to Raise $3.5 Billion - Bloomberg
Saudi Arabia's Red Sea Development Seeks to Raise $3.5 Billion - Bloomberg:
The firm that’s transforming an archipelago, desert and mountains -- an area about the size of Belgium -- on Saudi Arabia’s Red Sea coast into a global tourism destination is talking to banks to raise $3.5 billion, according to people with knowledge of the matter.
The Red Sea Development Co. started discussions with local lenders for a 13 billion-riyal loan in what would be its first borrowing, the people said, asking not to be identified because the matter is private. The loan may have a 15-year tenor and is likely to be backed by the kingdom’s sovereign wealth fund, the Public Investment Fund, some of the people said.
The terms of the financing may change and the company hopes to complete a deal by the end of the year, the people said.
The firm that’s transforming an archipelago, desert and mountains -- an area about the size of Belgium -- on Saudi Arabia’s Red Sea coast into a global tourism destination is talking to banks to raise $3.5 billion, according to people with knowledge of the matter.
The Red Sea Development Co. started discussions with local lenders for a 13 billion-riyal loan in what would be its first borrowing, the people said, asking not to be identified because the matter is private. The loan may have a 15-year tenor and is likely to be backed by the kingdom’s sovereign wealth fund, the Public Investment Fund, some of the people said.
The terms of the financing may change and the company hopes to complete a deal by the end of the year, the people said.
Michael Reininger, CEO of Qiddiya Investment Co., on #SaudiArabia's First Mega Entertainment City - Bloomberg
Michael Reininger, CEO of Qiddiya Investment Co., on Saudi Arabia's First Mega Entertainment City - Bloomberg:
Michael Reininger, chief executive officer of Qiddiya Investment Co., talks about the first mega entertainment and sports city that’s being developed as part of Saudi Arabia’s plans for life after oil. Qiddiya, backed by the kingdom’s sovereign wealth fund, will cover 334 square kilometers outside of Riyadh and have a Six Flags Entertainment Corp. theme park, private race track and an off-road zone. Reininger speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Michael Reininger, chief executive officer of Qiddiya Investment Co., talks about the first mega entertainment and sports city that’s being developed as part of Saudi Arabia’s plans for life after oil. Qiddiya, backed by the kingdom’s sovereign wealth fund, will cover 334 square kilometers outside of Riyadh and have a Six Flags Entertainment Corp. theme park, private race track and an off-road zone. Reininger speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
MIDEAST STOCKS- #Saudi drops further as trade war intensifies - Reuters
MIDEAST STOCKS-Saudi drops further as trade war intensifies - Reuters:
Saudi Arabia’s stocks dropped further on Monday after suffering their biggest single-day loss in three and a half months in the previous session as global trade jitters kept the market on the backfoot.
U.S. President Donald Trump on Friday slapped an additional 5% duty on some $550 billion in targeted Chinese goods in the latest tit-for-tat that followed China’s retaliatory tariffs on $75 billion worth of U.S. goods.
The escalation stoked concerns about the global economy, already on the edge of recession, and squeezed demand for oil, prices of which remained under pressure on Monday.
The Saudi index was down 0.6%, declining for its fourth straight session, with lenders acting as the biggest drag on the index.
Saudi Arabia’s stocks dropped further on Monday after suffering their biggest single-day loss in three and a half months in the previous session as global trade jitters kept the market on the backfoot.
U.S. President Donald Trump on Friday slapped an additional 5% duty on some $550 billion in targeted Chinese goods in the latest tit-for-tat that followed China’s retaliatory tariffs on $75 billion worth of U.S. goods.
The escalation stoked concerns about the global economy, already on the edge of recession, and squeezed demand for oil, prices of which remained under pressure on Monday.
The Saudi index was down 0.6%, declining for its fourth straight session, with lenders acting as the biggest drag on the index.
#UAE's FAB rejects #Qatar's financial regulatory authority allegations | ZAWYA MENA Edition
UAE's FAB rejects Qatar's financial regulatory authority allegations | ZAWYA MENA Edition:
Abu Dhabi's First Abu Dhabi Bank, FAB, today rejected allegations by the Qatar Financial Centre Regulatory Authority, QFCRA, that its branch in the Qatar Financial Centre had failed to provide appropriate financial disclosures.
The full text of an FAB statement issued today follows.
As stated previously, the allegations by the Qatar Financial Center Regulatory Authority, QFCRA, in the QFC Courts are entirely false, and First Abu Dhabi Bank, FAB, unequivocally denies them.
Abu Dhabi's First Abu Dhabi Bank, FAB, today rejected allegations by the Qatar Financial Centre Regulatory Authority, QFCRA, that its branch in the Qatar Financial Centre had failed to provide appropriate financial disclosures.
The full text of an FAB statement issued today follows.
As stated previously, the allegations by the Qatar Financial Center Regulatory Authority, QFCRA, in the QFC Courts are entirely false, and First Abu Dhabi Bank, FAB, unequivocally denies them.
Oil drops as recession risks mount with trade war tariffs - Reuters
Oil drops as recession risks mount with trade war tariffs - Reuters:
Oil prices fell on Monday, pushing U.S. crude to the lowest in more than two weeks, as an intensifying trade war between the U.S. and China undermined confidence in global economic growth.
Brent crude was down 52 cents, or 0.9%, at $58.82 a barrel by 0645 GMT, having earlier touched $58.24, the lowest since Aug. 15.
U.S. oil was down 62 cents, or 1.1%, at $53.55 a barrel, having earlier fallen to $52.96, the lowest since Aug. 9.
Oil prices fell on Monday, pushing U.S. crude to the lowest in more than two weeks, as an intensifying trade war between the U.S. and China undermined confidence in global economic growth.
Brent crude was down 52 cents, or 0.9%, at $58.82 a barrel by 0645 GMT, having earlier touched $58.24, the lowest since Aug. 15.
U.S. oil was down 62 cents, or 1.1%, at $53.55 a barrel, having earlier fallen to $52.96, the lowest since Aug. 9.
Sunday, 25 August 2019
BlackRock Mideast Foray May Grow With #Israel Infrastructure Push - Bloomberg
BlackRock Mideast Foray May Grow With Israel Infrastructure Push - Bloomberg:
The world’s largest asset manager BlackRock Inc. could add to its footprint in the Middle East by joining Israel’s infrastructure boom.
Representatives of the Israeli government and the New York-based financial giant are discussing an investment in the country’s infrastructure, according to Prime Minister Benjamin Netanyahu’s top economic adviser Avi Simhon.
BlackRock expressed interest in an investment and Israel offered to help with any regulatory barriers, he said in an interview this month in Jerusalem, adding that it was too early for specifics. A spokeswoman for BlackRock in Israel declined to comment.
The world’s largest asset manager BlackRock Inc. could add to its footprint in the Middle East by joining Israel’s infrastructure boom.
Representatives of the Israeli government and the New York-based financial giant are discussing an investment in the country’s infrastructure, according to Prime Minister Benjamin Netanyahu’s top economic adviser Avi Simhon.
BlackRock expressed interest in an investment and Israel offered to help with any regulatory barriers, he said in an interview this month in Jerusalem, adding that it was too early for specifics. A spokeswoman for BlackRock in Israel declined to comment.
Mideast Stocks Slide in Sign of Damage to Come From Trade War - Bloomberg
Mideast Stocks Slide in Sign of Damage to Come From Trade War - Bloomberg:
Stocks across the Middle East’s most liquid markets declined in a sign that the latest escalation in the U.S.-China trade war is deepening concern about a global recession.
Israeli stocks led the retreat, losing 3%, as all but one member of the TA-35 index fell in the wake of the sell-off in the U.S. Friday. Gauges in Saudi Arabia, Kuwait and Dubai lost at least 1.7% on speculation slowing growth will sap demand for oil.
“If there is regional tension or if oil faces pressure, Saudi markets tend to be the most impacted in the GCC,” said Aarthi Chandrasekaran, a money manager at investment bank Shuaa Capital PSC in Abu Dhabi. “If there is a global meltdown, Dubai and the United Arab Emirates tend to be most impacted as the role of international investors remains high inside the financial market.”
Stocks across the Middle East’s most liquid markets declined in a sign that the latest escalation in the U.S.-China trade war is deepening concern about a global recession.
Israeli stocks led the retreat, losing 3%, as all but one member of the TA-35 index fell in the wake of the sell-off in the U.S. Friday. Gauges in Saudi Arabia, Kuwait and Dubai lost at least 1.7% on speculation slowing growth will sap demand for oil.
“If there is regional tension or if oil faces pressure, Saudi markets tend to be the most impacted in the GCC,” said Aarthi Chandrasekaran, a money manager at investment bank Shuaa Capital PSC in Abu Dhabi. “If there is a global meltdown, Dubai and the United Arab Emirates tend to be most impacted as the role of international investors remains high inside the financial market.”
Bankers Head to #SaudiArabia to Compete for World's Biggest IPO - Bloomberg
Bankers Head to Saudi Arabia to Compete for World's Biggest IPO - Bloomberg: Global banks will this week start making their case on why they should be hired for what’s set to be the world’s biggest initial public offering, according to people with knowledge of the matter.
Dealmakers representing advisory firms from around the world will from Tuesday travel to Saudi Aramco’s headquarters in Dhahran in the kingdom’s Eastern Province to compete for a role on the offering that’s planned for as early as 2020, the people said, asking not to be identified as the information is private.
Aramco, which posted a profit of $46.9 billion in the first six months, has revived its much anticipated share sale after shelving plans to focus on its acquisition of a 70% stake in Saudi Basic Industries Corp. Lazard Ltd. and Moelis & Co. have restarted preparatory work and are expected to play a key role in the listing, including in the selection of underwriters and venues.
Dealmakers representing advisory firms from around the world will from Tuesday travel to Saudi Aramco’s headquarters in Dhahran in the kingdom’s Eastern Province to compete for a role on the offering that’s planned for as early as 2020, the people said, asking not to be identified as the information is private.
Aramco, which posted a profit of $46.9 billion in the first six months, has revived its much anticipated share sale after shelving plans to focus on its acquisition of a 70% stake in Saudi Basic Industries Corp. Lazard Ltd. and Moelis & Co. have restarted preparatory work and are expected to play a key role in the listing, including in the selection of underwriters and venues.
Qatari Regulator Fines #UAE's Biggest Lender $55 Million - Bloomberg
Qatari Regulator Fines U.A.E.'s Biggest Lender $55 Million - Bloomberg:
Qatar Financial Centre Regulatory Authority fined First Abu Dhabi Bank PJSC 200 million Qatari riyals ($55 million) for obstructing an investigation into suspected market manipulation by the United Arab Emirates’ biggest lender.
The fine “reflects the gravity and seriousness of the breaches of regulatory requirements caused by the deliberate and intentional steps taken by FAB” to obstruct the investigation into the manipulation of the riyal, Qatari government securities and related financial instruments, the regulator said in a statement on Sunday.
The QFCRA started its investigation last March. As part of the investigation, the regulator asked First Abu Dhabi Bank to provide copies of the relevant trading records and related documentation it held, but the Abu Dhabi-based lender failed to do so, according to the statement.
Qatar Financial Centre Regulatory Authority fined First Abu Dhabi Bank PJSC 200 million Qatari riyals ($55 million) for obstructing an investigation into suspected market manipulation by the United Arab Emirates’ biggest lender.
The fine “reflects the gravity and seriousness of the breaches of regulatory requirements caused by the deliberate and intentional steps taken by FAB” to obstruct the investigation into the manipulation of the riyal, Qatari government securities and related financial instruments, the regulator said in a statement on Sunday.
The QFCRA started its investigation last March. As part of the investigation, the regulator asked First Abu Dhabi Bank to provide copies of the relevant trading records and related documentation it held, but the Abu Dhabi-based lender failed to do so, according to the statement.
MIDEAST STOCKS- #Saudi index drops amid global weakness, Aldar tumbles in #AbuDhabi - Reuters
MIDEAST STOCKS-Saudi index drops amid global weakness, Aldar tumbles in Abu Dhabi - Reuters:
Most Middle East markets dropped
on Sunday amid thin trading volumes, mirroring a tumble in
global stocks last week and weighed down by sliding oil prices.
Brent crude futures fell 58 cents on Friday, or 1%,
to settle at $59.34 a barrel, while Wall Street stocks tumbled
after President Donald Trump told U.S. companies to look at
alternatives to China for manufacturing, following Chinese
retaliatory tariffs on American goods.
The Saudi index was the worst performer, losing
2.4%, dragged down by banks and the petrochemical sector.
The rest of the region was also in red territory, except the
Egyptian and the Bahraini exchanges, which were little changed.
Most Middle East markets dropped
on Sunday amid thin trading volumes, mirroring a tumble in
global stocks last week and weighed down by sliding oil prices.
Brent crude futures fell 58 cents on Friday, or 1%,
to settle at $59.34 a barrel, while Wall Street stocks tumbled
after President Donald Trump told U.S. companies to look at
alternatives to China for manufacturing, following Chinese
retaliatory tariffs on American goods.
The Saudi index was the worst performer, losing
2.4%, dragged down by banks and the petrochemical sector.
The rest of the region was also in red territory, except the
Egyptian and the Bahraini exchanges, which were little changed.
MIDEAST STOCKS- #Saudi slides amid global weakness, developers down in #UAE - Reuters
MIDEAST STOCKS-Saudi slides amid global weakness, developers down in UAE - Reuters:
Gulf stocks shed value in early trading on Sunday after global stocks and oil prices slid last week amid a further escalation of the U.S.-China trade war.
The Saudi index was down 1.3% in the first 10 minutes of trading, with banks and petrochemical companies feeling the pressure.
Alinma Bank – among the shares registering the highest trading volume – was down 1.5% and Al Rajhi Banking & Investment Corporation slid 1.2%.
Gulf stocks shed value in early trading on Sunday after global stocks and oil prices slid last week amid a further escalation of the U.S.-China trade war.
The Saudi index was down 1.3% in the first 10 minutes of trading, with banks and petrochemical companies feeling the pressure.
Alinma Bank – among the shares registering the highest trading volume – was down 1.5% and Al Rajhi Banking & Investment Corporation slid 1.2%.
Saturday, 24 August 2019
New U.S. LNG Export Plans Threatened as Trade War Drags On - Bloomberg
New U.S. LNG Export Plans Threatened as Trade War Drags On - Bloomberg:
Liquefied natural gas may have dodged the latest round of Chinese tariffs on U.S. goods, but plans for new American terminals to ship the fuel abroad are under threat as the trade war escalates.
Tellurian Inc. and other developers will probably delay final investment decisions on multibillion-dollar U.S. LNG export projects to 2020 from this year as the tensions complicate negotiations with potential Chinese gas buyers, according to Bank of America Corp. While LNG isn’t among the goods Beijing will target in retaliatory levies that take effect next month, a 25% duty imposed in June still stands, raised from 10% previously.
The trade dispute is intensifying as roughly a dozen companies look to become part of the so-called second wave of U.S. LNG export terminals expected to start up in the next few years. Smaller developers face intense competition from deep-pocketed oil giants like Exxon Mobil Corp., Qatar Petroleum and Royal Dutch Shell Plc, which didn’t need to sign long-term contracts before greenlighting their projects. A collapse in global gas prices amid a glut of supply from the U.S. to Australia is also pressuring the industry.
Liquefied natural gas may have dodged the latest round of Chinese tariffs on U.S. goods, but plans for new American terminals to ship the fuel abroad are under threat as the trade war escalates.
Tellurian Inc. and other developers will probably delay final investment decisions on multibillion-dollar U.S. LNG export projects to 2020 from this year as the tensions complicate negotiations with potential Chinese gas buyers, according to Bank of America Corp. While LNG isn’t among the goods Beijing will target in retaliatory levies that take effect next month, a 25% duty imposed in June still stands, raised from 10% previously.
The trade dispute is intensifying as roughly a dozen companies look to become part of the so-called second wave of U.S. LNG export terminals expected to start up in the next few years. Smaller developers face intense competition from deep-pocketed oil giants like Exxon Mobil Corp., Qatar Petroleum and Royal Dutch Shell Plc, which didn’t need to sign long-term contracts before greenlighting their projects. A collapse in global gas prices amid a glut of supply from the U.S. to Australia is also pressuring the industry.
Lebanon Cut Deeper Into Junk by Fitch as Diaspora Dollars Dry Up - Bloomberg
Lebanon Cut Deeper Into Junk by Fitch as Diaspora Dollars Dry Up - Bloomberg:
Lebanon’s credit ranking was cut deeper into junk by Fitch Ratings as one of the world’s most indebted nations finds its finances stretched with a dwindling flow of cash from abroad.
The rating company downgraded Lebanon for the first time in three years, taking the sovereign down two notches to CCC, according a statement on Friday. Meanwhile, S&P Global Ratings affirmed Lebanon’s rating at B-, six steps below investment grade and one level higher than Moody’s Investors Service.
“The downgrade reflects intensifying pressure on Lebanon’s financing model, increasing risks to the government’s debt servicing capacity, Fitch said. “While recent policy steps point to nascent fiscal adjustment, a credible medium-term plan to stabilize government debt/GDP is lacking.”
Lebanon’s credit ranking was cut deeper into junk by Fitch Ratings as one of the world’s most indebted nations finds its finances stretched with a dwindling flow of cash from abroad.
The rating company downgraded Lebanon for the first time in three years, taking the sovereign down two notches to CCC, according a statement on Friday. Meanwhile, S&P Global Ratings affirmed Lebanon’s rating at B-, six steps below investment grade and one level higher than Moody’s Investors Service.
“The downgrade reflects intensifying pressure on Lebanon’s financing model, increasing risks to the government’s debt servicing capacity, Fitch said. “While recent policy steps point to nascent fiscal adjustment, a credible medium-term plan to stabilize government debt/GDP is lacking.”
#UAE can be India's ‘valuable partner’ to achieve $5trln economy, says Modi | ZAWYA MENA Edition
UAE can be India's ‘valuable partner’ to achieve $5trln economy, says Modi | ZAWYA MENA Edition:
"We consider the UAE as a valuable partner in realising the objective to reach US$5 trillion economy through a mutually beneficial partnership," said Modi who starts tonight a two-day state visit to the UAE.
"India has embarked on the ambitious, yet achievable, path to be a US$5 trillion economy by 2024-25. We are targeting about US$1.7 trillion dollar worth of investments in the coming five years. To achieve this vision, the government is working to promote inflows from domestic as well as foreign sources," the Prime Minister explained.
He said that the UAE-India relations are "at their best ever", adding that the UAE investments in key sectors in India are growing.
"We consider the UAE as a valuable partner in realising the objective to reach US$5 trillion economy through a mutually beneficial partnership," said Modi who starts tonight a two-day state visit to the UAE.
"India has embarked on the ambitious, yet achievable, path to be a US$5 trillion economy by 2024-25. We are targeting about US$1.7 trillion dollar worth of investments in the coming five years. To achieve this vision, the government is working to promote inflows from domestic as well as foreign sources," the Prime Minister explained.
He said that the UAE-India relations are "at their best ever", adding that the UAE investments in key sectors in India are growing.
Friday, 23 August 2019
Oil Short-Sellers Make Wrong-Way Bet as China Blindsides Market - Bloomberg
Oil Short-Sellers Make Wrong-Way Bet as China Blindsides Market - Bloomberg:
It’s getting tougher to bet on oil in the age of Trump trade tweets and Chinese retaliation, with hedge funds getting it wrong for a seventh time in nine weeks.
This time around, short-sellers made their biggest retreat in a year in the week ended Aug. 20, slashing by 25% their wagers that West Texas Intermediate crude would decline, data released Friday show. That made sense as the U.S. had just delayed sanctions against Huawei Technologies Co., offering a rare hint of progress in the trade spat that has dogged the market.
Then on Friday, optimism unraveled as China announced tariffs on U.S. oil for the first time, sending futures plunging and wiping out all of the week’s gains. The whipsawing has plagued the market all year, but it seems to be getting more unpredictable. Before the last week of June, hedge funds got the direction of crude wrong just seven times in six months.
It’s getting tougher to bet on oil in the age of Trump trade tweets and Chinese retaliation, with hedge funds getting it wrong for a seventh time in nine weeks.
This time around, short-sellers made their biggest retreat in a year in the week ended Aug. 20, slashing by 25% their wagers that West Texas Intermediate crude would decline, data released Friday show. That made sense as the U.S. had just delayed sanctions against Huawei Technologies Co., offering a rare hint of progress in the trade spat that has dogged the market.
Then on Friday, optimism unraveled as China announced tariffs on U.S. oil for the first time, sending futures plunging and wiping out all of the week’s gains. The whipsawing has plagued the market all year, but it seems to be getting more unpredictable. Before the last week of June, hedge funds got the direction of crude wrong just seven times in six months.
Oil spills into U.S.-China trade war, prices slump - Reuters
Oil spills into U.S.-China trade war, prices slump - Reuters:
China said on Friday it would impose tariffs on U.S. crude oil imports for the first time, sending prices down nearly 4% to two-week lows as the escalating bilateral trade war fed worries over a slowdown in global oil demand.
Beijing said crude would be among the U.S. products hit by tariffs of 5% as of Sept. 1. U.S. President Donald Trump responded later in the day saying starting on Oct. 1, the 25-percent tariffs on $250 billion worth of Chinese goods will rise to 30%. Tariffs on remaining $300 billion due to begin on Sept. 1 will now be set at 15%, versus 10%.
U.S. West Texas Intermediate (WTI) crude futures CLc1 slumped as much as 3.8% to $53.24 a barrel on Friday, the lowest since Aug. 9, before ending the session at $54.17. The rising trade war is likely to weigh on U.S. crude more than international benchmark Brent LCOc1, market sources said.
China said on Friday it would impose tariffs on U.S. crude oil imports for the first time, sending prices down nearly 4% to two-week lows as the escalating bilateral trade war fed worries over a slowdown in global oil demand.
Beijing said crude would be among the U.S. products hit by tariffs of 5% as of Sept. 1. U.S. President Donald Trump responded later in the day saying starting on Oct. 1, the 25-percent tariffs on $250 billion worth of Chinese goods will rise to 30%. Tariffs on remaining $300 billion due to begin on Sept. 1 will now be set at 15%, versus 10%.
U.S. West Texas Intermediate (WTI) crude futures CLc1 slumped as much as 3.8% to $53.24 a barrel on Friday, the lowest since Aug. 9, before ending the session at $54.17. The rising trade war is likely to weigh on U.S. crude more than international benchmark Brent LCOc1, market sources said.
Chinese State Banks Are Said to Compete for Role on Aramco IPO - Bloomberg
Chinese State Banks Are Said to Compete for Role on Aramco IPO - Bloomberg:
Some of China’s biggest state-owned banks have been invited to pitch for the Saudi Aramco initial public offering, people with knowledge of the matter said, signaling the oil giant’s potential desire to attract Asian investors to the $100 billion listing.
Investment banking units of Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among firms competing for a role on the offering, the people said, asking not to be identified because the information is private. Senior management of some Chinese banks visited Saudi Arabia multiple times this year before Aramco officially requested proposals, one of the the people said.
A number of Asia-based dealmakers have been cutting short their vacations to finish work on the pitches, according to the people. Aramco has asked most banks to submit proposals by next week, the people said. It invited more than 20 advisory firms from the U.S., Europe and Asia to compete for a role on the offering, including some of the world’s biggest underwriters as well as a number of smaller banks, one person said.
Some of China’s biggest state-owned banks have been invited to pitch for the Saudi Aramco initial public offering, people with knowledge of the matter said, signaling the oil giant’s potential desire to attract Asian investors to the $100 billion listing.
Investment banking units of Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among firms competing for a role on the offering, the people said, asking not to be identified because the information is private. Senior management of some Chinese banks visited Saudi Arabia multiple times this year before Aramco officially requested proposals, one of the the people said.
A number of Asia-based dealmakers have been cutting short their vacations to finish work on the pitches, according to the people. Aramco has asked most banks to submit proposals by next week, the people said. It invited more than 20 advisory firms from the U.S., Europe and Asia to compete for a role on the offering, including some of the world’s biggest underwriters as well as a number of smaller banks, one person said.
Oil prices slide over 2% as U.S.-China trade war escalates - Reuters
Oil prices slide over 2% as U.S.-China trade war escalates - Reuters:
Oil prices fell more than 2% on Friday after China unveiled retaliatory tariffs against about $75 billion worth of U.S. goods, marking another escalation of a protracted trade dispute between the world’s two largest economies.
Brent crude futures fell $1.25, or 2.1% to $58.67 a barrel by 1:15 p.m. (1715 GMT). U.S. West Texas Intermediate (WTI) crude futures fell $1.85, or 3.3%, to $53.50 a barrel.
WTI was on track to fall 2.7% for the week, while Brent was set to remain nearly unchanged.
China’s commerce ministry said it would impose additional tariffs of 5% or 10% on a total of 5,078 products originating from the United States, including crude oil, agricultural products such as soybeans, and small aircraft.
Oil prices fell more than 2% on Friday after China unveiled retaliatory tariffs against about $75 billion worth of U.S. goods, marking another escalation of a protracted trade dispute between the world’s two largest economies.
Brent crude futures fell $1.25, or 2.1% to $58.67 a barrel by 1:15 p.m. (1715 GMT). U.S. West Texas Intermediate (WTI) crude futures fell $1.85, or 3.3%, to $53.50 a barrel.
WTI was on track to fall 2.7% for the week, while Brent was set to remain nearly unchanged.
China’s commerce ministry said it would impose additional tariffs of 5% or 10% on a total of 5,078 products originating from the United States, including crude oil, agricultural products such as soybeans, and small aircraft.
U.S. Oil Rig Count Plunges To Near 2-Year Low | OilPrice.com
U.S. Oil Rig Count Plunges To Near 2-Year Low | OilPrice.com:
The US oil and gas rig count fell sharply on Friday, decreasing by 19 for the week, according to Baker Hughes. The total oil and gas rig count now stands at 916, or 128 down from this time last year. US production, however, is holding fast at 12.3 million bpd.
The total number of active oil rigs in the United States decreased by 16 according to the report, reaching 754. The number of active gas rigs decreased by 3 to reach 162.
Oil rigs have seen a loss of 106 rigs year on year, with gas rigs down 20 since this time last year. The combined oil and gas rig count is down solidly in triple-digit territory, at 128 year on year.
The US oil and gas rig count fell sharply on Friday, decreasing by 19 for the week, according to Baker Hughes. The total oil and gas rig count now stands at 916, or 128 down from this time last year. US production, however, is holding fast at 12.3 million bpd.
The total number of active oil rigs in the United States decreased by 16 according to the report, reaching 754. The number of active gas rigs decreased by 3 to reach 162.
Oil rigs have seen a loss of 106 rigs year on year, with gas rigs down 20 since this time last year. The combined oil and gas rig count is down solidly in triple-digit territory, at 128 year on year.
Oil slides as China hits US with new tariffs | Financial Times
Oil slides as China hits US with new tariffs | Financial Times:
Brent crude tumbled below $59 as China announced new tariffs on US imports on Friday, the latest move in the escalation of a trade war that is knocking the outlook for global economic growth and oil demand.
The price of Brent crude, the international benchmark, was down 1.5 per cent at $59.00 a barrel, falling as low as $58.30. West Texas Intermediate, the US marker, was trading at just under $54 a barrel, 2.5 per cent lower than Thursday’s close, having fallen as low as $53.40 earlier in the day.
Beijing said that it would impose additional levies of between 5 and 10 per cent on $75bn of US imports from September, the latest retaliatory measure in the tit-for-tat trade war to darken the macroeconomic outlook and hit prospects for oil consumption growth.
Brent crude tumbled below $59 as China announced new tariffs on US imports on Friday, the latest move in the escalation of a trade war that is knocking the outlook for global economic growth and oil demand.
The price of Brent crude, the international benchmark, was down 1.5 per cent at $59.00 a barrel, falling as low as $58.30. West Texas Intermediate, the US marker, was trading at just under $54 a barrel, 2.5 per cent lower than Thursday’s close, having fallen as low as $53.40 earlier in the day.
Beijing said that it would impose additional levies of between 5 and 10 per cent on $75bn of US imports from September, the latest retaliatory measure in the tit-for-tat trade war to darken the macroeconomic outlook and hit prospects for oil consumption growth.
#UAE central bank’s foreign assets up 11% in July | ZAWYA MENA Edition
UAE central bank’s foreign assets up 11% in July | ZAWYA MENA Edition:
Total foreign assets of the Central Bank of the UAE (CBUAE) rose by 11.1% year-on-year or AED 37 billion in at the end of July, a survey conducted by Mubasher showed.
The bank’s foreign assets valued at AED 369.3 billion ($100.5 billion) at the end of July, as compared to AED 332.31 billion ($90.5 billion) in the corresponding period of 2018, the survey highlighted.
Month-on-month, the value of foreign assets fell by 2.1% or AED 7.94 billion, versus AED 377.24 billion ($103 billion) at the end of June.
Total foreign assets of the Central Bank of the UAE (CBUAE) rose by 11.1% year-on-year or AED 37 billion in at the end of July, a survey conducted by Mubasher showed.
The bank’s foreign assets valued at AED 369.3 billion ($100.5 billion) at the end of July, as compared to AED 332.31 billion ($90.5 billion) in the corresponding period of 2018, the survey highlighted.
Month-on-month, the value of foreign assets fell by 2.1% or AED 7.94 billion, versus AED 377.24 billion ($103 billion) at the end of June.
Oil prices steadies as markets await Fed steer - Reuters
Oil prices steadies as markets await Fed steer - Reuters:
Oil prices steadied on Friday, on track for a weekly gain, with attention focused on a speech by U.S. Federal Reserve chief Jerome Powell for news on whether it will cut interest rates for a second time this year to boost the world’s largest economy.
Brent crude futures LCOc1, the international benchmark for oil prices, fell 4 cents to $59.88 a barrel by 0813 GMT but was up about 2.1% on the week.
U.S. West Texas Intermediate (WTI) crude futures CLc1 slipped by 5 cents to $55.30, up 0.8% this week.
“For now, it all comes down to Powell’s projected bias on Friday. Does he insist on the robustness of the U.S. economy or does he highlight the growing downside risks? Investors’ interpretation of Powell’s policy bias is set to sway markets,” said FXTM market analyst Han Tan.
Oil prices steadied on Friday, on track for a weekly gain, with attention focused on a speech by U.S. Federal Reserve chief Jerome Powell for news on whether it will cut interest rates for a second time this year to boost the world’s largest economy.
Brent crude futures LCOc1, the international benchmark for oil prices, fell 4 cents to $59.88 a barrel by 0813 GMT but was up about 2.1% on the week.
U.S. West Texas Intermediate (WTI) crude futures CLc1 slipped by 5 cents to $55.30, up 0.8% this week.
“For now, it all comes down to Powell’s projected bias on Friday. Does he insist on the robustness of the U.S. economy or does he highlight the growing downside risks? Investors’ interpretation of Powell’s policy bias is set to sway markets,” said FXTM market analyst Han Tan.
Thursday, 22 August 2019
U.S. refiners limit crude processing amid slack fuel demand: Kemp - Reuters
U.S. refiners limit crude processing amid slack fuel demand: Kemp - Reuters:
U.S. refineries have cut the volume of crude processed so far this year, but stocks of gasoline and distillates remain ample, highlighting the slack demand for transportation fuels.
Fuel consumption has stalled, part of a worldwide slowdown in oil demand associated with the slackening of manufacturing and freight activity.
U.S. refineries have reduced crude input by an average of 247,000 barrels per day since the start of the year compared with the same period in 2018, according to data from the U.S. Energy Information Administration (EIA).
U.S. refineries have cut the volume of crude processed so far this year, but stocks of gasoline and distillates remain ample, highlighting the slack demand for transportation fuels.
Fuel consumption has stalled, part of a worldwide slowdown in oil demand associated with the slackening of manufacturing and freight activity.
U.S. refineries have reduced crude input by an average of 247,000 barrels per day since the start of the year compared with the same period in 2018, according to data from the U.S. Energy Information Administration (EIA).
Oil eases as Fed's Jackson Hole meeting gets underway - Reuters
Oil eases as Fed's Jackson Hole meeting gets underway - Reuters:
Oil prices weakened on Thursday on worries about the global economy and as equity markets were on edge over the uncertain outlook for U.S. interest rate cuts.
Traders are awaiting a speech from Federal Reserve Chair Jerome Powell on Friday in Jackson Hole, Wyoming, that could indicate whether the U.S. central bank will continue to cut interest rates.
Brent crude LCOc1 settled down 38 cents, or 0.6%, at $59.92 a barrel by 12:34 p.m. ET (1634 GMT), while U.S. West Texas Intermediate crude CLc1 ended the session 33 cents, or 0.6% lower at $55.35.
“The market will be shifting focus today to broader based macro headlines with comments out of Jackson Hole likely to be prioritized in this regard,” said Jim Ritterbusch, president of Ritterbusch and Associates.
Oil prices weakened on Thursday on worries about the global economy and as equity markets were on edge over the uncertain outlook for U.S. interest rate cuts.
Traders are awaiting a speech from Federal Reserve Chair Jerome Powell on Friday in Jackson Hole, Wyoming, that could indicate whether the U.S. central bank will continue to cut interest rates.
Brent crude LCOc1 settled down 38 cents, or 0.6%, at $59.92 a barrel by 12:34 p.m. ET (1634 GMT), while U.S. West Texas Intermediate crude CLc1 ended the session 33 cents, or 0.6% lower at $55.35.
“The market will be shifting focus today to broader based macro headlines with comments out of Jackson Hole likely to be prioritized in this regard,” said Jim Ritterbusch, president of Ritterbusch and Associates.
#Qatar banking sector shifts towards digital technology: OBG
Qatar banking sector shifts towards digital technology: OBG:
Qatar’s banking sector is undergoing broader changes, including a shift towards digital banking, which will likely see a reduction in branches and physical presence in the coming years, a new report has shown.
This will impact all aspects of the industry, from retail and private banking, to investment and international banking, Oxford Business Group (OBG) said quoting Dr R Seetharaman, Doha Bank CEO, and added it could prompt further consolidation in the sector.
“Consolidation is a game-changer in the market,” Seetharaman told OBG. “Globalisation and new cost structures, as well as digitalisation and consumerism, are pushing banks to redefine the business model in order to address pressures and sustain growth.”
Qatar’s banking sector is undergoing broader changes, including a shift towards digital banking, which will likely see a reduction in branches and physical presence in the coming years, a new report has shown.
This will impact all aspects of the industry, from retail and private banking, to investment and international banking, Oxford Business Group (OBG) said quoting Dr R Seetharaman, Doha Bank CEO, and added it could prompt further consolidation in the sector.
“Consolidation is a game-changer in the market,” Seetharaman told OBG. “Globalisation and new cost structures, as well as digitalisation and consumerism, are pushing banks to redefine the business model in order to address pressures and sustain growth.”
Main index gains 42 points as trading volumes jump on QSE
Main index gains 42 points as trading volumes jump on QSE:
The Qatar Stock Exchange on Thursday witnessed a huge jump in trading volumes and its key index gained 42 points to cross the 9,900 levels.
Domestic institutions were increasingly net buyers as the 20-stock Qatar Index settled 0.42% higher at 9,918.6 points.
Gulf institutions were seen bearish in the market, whose key benchmark closed 3.69% lower year-to-date.
The Qatar Stock Exchange on Thursday witnessed a huge jump in trading volumes and its key index gained 42 points to cross the 9,900 levels.
Domestic institutions were increasingly net buyers as the 20-stock Qatar Index settled 0.42% higher at 9,918.6 points.
Gulf institutions were seen bearish in the market, whose key benchmark closed 3.69% lower year-to-date.
Egypt Cuts Rates First Time in Six Months After Inflation Relief - Bloomberg
Egypt Cuts Rates First Time in Six Months After Inflation Relief - Bloomberg:
Egypt cut interest rates for the first time in six months as slowing inflation and a stable currency allowed the central bank to shrug off the risk of contagion from an emerging-market selloff.
The Monetary Policy Committee reduced its benchmark deposit rate by 150 basis points to 14.25% and its lending rate to 15.25%, the bank said Thursday in a statement. Ten of 12 analysts surveyed by Bloomberg had predicted a cut of at least 100 basis points.
“As incoming data continued to confirm the moderation of underlying inflationary pressures, the MPC decided to cut key policy rates,” the central bank said. “This remains consistent with achieving the inflation target of 9%, plus or minus 3 percentage points, in 2020 Q4 and price stability over the medium term.”
Egypt cut interest rates for the first time in six months as slowing inflation and a stable currency allowed the central bank to shrug off the risk of contagion from an emerging-market selloff.
The Monetary Policy Committee reduced its benchmark deposit rate by 150 basis points to 14.25% and its lending rate to 15.25%, the bank said Thursday in a statement. Ten of 12 analysts surveyed by Bloomberg had predicted a cut of at least 100 basis points.
“As incoming data continued to confirm the moderation of underlying inflationary pressures, the MPC decided to cut key policy rates,” the central bank said. “This remains consistent with achieving the inflation target of 9%, plus or minus 3 percentage points, in 2020 Q4 and price stability over the medium term.”
Battle for Aramco IPO Heats Up as Exchanges Vie for Supremacy - Bloomberg
Battle for Aramco IPO Heats Up as Exchanges Vie for Supremacy - Bloomberg:
The largest global stock exchanges have restarted efforts to court Saudi Aramco as the battle to host the world’s biggest-ever initial public offering heats up again, people with knowledge of the matter said.
Top officials from London Stock Exchange Group Plc, the New York Stock Exchange and Hong Kong Exchanges & Clearing Ltd. have been actively pitching the oil giant in recent weeks, according to the people. LSE Chief Executive Officer David Schwimmer is among those who visited Saudi Arabia in the past month to woo Aramco officials, the people said, asking not to be identified because the information is private.
Securing the listing, which Saudi Arabia expects to raise as much as $100 billion in proceeds, would be a coup for the bourses as they tackle low volumes and increased volatility in financial markets. While Aramco is planning a local listing on the Saudi stock exchange as part of the IPO, it hasn’t made a decision on other venues, according to the people.
The largest global stock exchanges have restarted efforts to court Saudi Aramco as the battle to host the world’s biggest-ever initial public offering heats up again, people with knowledge of the matter said.
Top officials from London Stock Exchange Group Plc, the New York Stock Exchange and Hong Kong Exchanges & Clearing Ltd. have been actively pitching the oil giant in recent weeks, according to the people. LSE Chief Executive Officer David Schwimmer is among those who visited Saudi Arabia in the past month to woo Aramco officials, the people said, asking not to be identified because the information is private.
Securing the listing, which Saudi Arabia expects to raise as much as $100 billion in proceeds, would be a coup for the bourses as they tackle low volumes and increased volatility in financial markets. While Aramco is planning a local listing on the Saudi stock exchange as part of the IPO, it hasn’t made a decision on other venues, according to the people.
MIDEAST STOCKS-Banks drag #Saudi market lower amid uncertainty over Fed policy - Reuters
MIDEAST STOCKS-Banks drag Saudi market lower amid uncertainty over Fed policy - Reuters:
Saudi Arabian stocks were dragged lower by declining
financial stocks on Thursday amid uncertainty over Federal Reserve policy
following the release of minutes from the Fed's July meeting, while other Gulf
markets were mixed.
The minutes showed Fed policymakers were divided over whether to cut
interest rates last month, but were united in wanting to signal they were not on
a preset path to more cuts.
Currencies of Saudi Arabia, the United Arab Emirates and Qatar are pegged to
the U.S. dollar and they follow the Fed on interest rate moves.
In Saudi Arabia, the index fell 0.7% as Samba Financial Group
lost 2.6% and National Commercial Bank slipped 0.8%.
Saudi Arabian stocks were dragged lower by declining
financial stocks on Thursday amid uncertainty over Federal Reserve policy
following the release of minutes from the Fed's July meeting, while other Gulf
markets were mixed.
The minutes showed Fed policymakers were divided over whether to cut
interest rates last month, but were united in wanting to signal they were not on
a preset path to more cuts.
Currencies of Saudi Arabia, the United Arab Emirates and Qatar are pegged to
the U.S. dollar and they follow the Fed on interest rate moves.
In Saudi Arabia, the index fell 0.7% as Samba Financial Group
lost 2.6% and National Commercial Bank slipped 0.8%.
OPEC plan to balance the oil market hinges on third quarter - Bloomberg
OPEC plan to balance the oil market hinges on third quarter - Bloomberg:
The current quarter will be key in shaping the oil supply/demand balances for 2019, according to the latest outlooks from the world’s three major oil-forecasting agencies. If the big inventory draws they expect fail to materialize, OPEC’s goal of pulling down excess stockpiles will be delayed again.
The International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries all see the biggest oil inventory draws for the year happening now, during the period of peak demand and before non-OPEC supply surges seasonally, as the summer maintenance season at fields in the Northern Hemisphere comes to an end.
There are big differences between the ways the three agencies 1 see the global oil supply/demand balance evolving this year. OPEC is much more bullish than either of the others about the size of the stockdraw that we can expect. The producer group now sees global stockpiles falling at an average rate of 780,000 barrels a day in 2019, driven by a draw of more than 2 million barrels a day in the third quarter.
The current quarter will be key in shaping the oil supply/demand balances for 2019, according to the latest outlooks from the world’s three major oil-forecasting agencies. If the big inventory draws they expect fail to materialize, OPEC’s goal of pulling down excess stockpiles will be delayed again.
The International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries all see the biggest oil inventory draws for the year happening now, during the period of peak demand and before non-OPEC supply surges seasonally, as the summer maintenance season at fields in the Northern Hemisphere comes to an end.
There are big differences between the ways the three agencies 1 see the global oil supply/demand balance evolving this year. OPEC is much more bullish than either of the others about the size of the stockdraw that we can expect. The producer group now sees global stockpiles falling at an average rate of 780,000 barrels a day in 2019, driven by a draw of more than 2 million barrels a day in the third quarter.
Oil rises further above $60, Jackson Hole summit in focus - Reuters
Oil rises further above $60, Jackson Hole summit in focus - Reuters:
Oil rose further above $60 a barrel on Thursday, supported by a drop in U.S. crude inventories and OPEC-led supply cuts, although worries about the global economy weighed.
U.S. crude inventories fell by 2.7 million barrels last week, more than analysts expected. Still, the U.S. Energy Information Administration also said gasoline and distillate inventories rose.
Brent crude LCOc1 rose 46 cents to $60.76 a barrel by 1017 GMT. U.S. West Texas Intermediate crude CLc1 added 40 cents to $56.08.
Oil rose further above $60 a barrel on Thursday, supported by a drop in U.S. crude inventories and OPEC-led supply cuts, although worries about the global economy weighed.
U.S. crude inventories fell by 2.7 million barrels last week, more than analysts expected. Still, the U.S. Energy Information Administration also said gasoline and distillate inventories rose.
Brent crude LCOc1 rose 46 cents to $60.76 a barrel by 1017 GMT. U.S. West Texas Intermediate crude CLc1 added 40 cents to $56.08.
OPEC's market share sinks - and no sign of wavering on supply cuts - Reuters
OPEC's market share sinks - and no sign of wavering on supply cuts - Reuters:
OPEC’s share of the global oil market has sunk to 30%, the lowest in years, as a result of supply restraint and involuntary losses in Iran and Venezuela, and there is little sign yet producers are wavering on their output-cut strategy.
Crude oil from the Organization of the Petroleum Exporting Countries made up 30% of world oil supply in July 2019, down from more than 34% a decade ago and a peak of 35% in 2012, according to OPEC data.
Despite OPEC-led supply cuts, oil LCOc1 has tumbled from April’s 2019 peak above $75 a barrel to $60, pressured by slowing economic activity amid concerns about the U.S.-China trade dispute and Brexit.
OPEC’s share of the global oil market has sunk to 30%, the lowest in years, as a result of supply restraint and involuntary losses in Iran and Venezuela, and there is little sign yet producers are wavering on their output-cut strategy.
Crude oil from the Organization of the Petroleum Exporting Countries made up 30% of world oil supply in July 2019, down from more than 34% a decade ago and a peak of 35% in 2012, according to OPEC data.
Despite OPEC-led supply cuts, oil LCOc1 has tumbled from April’s 2019 peak above $75 a barrel to $60, pressured by slowing economic activity amid concerns about the U.S.-China trade dispute and Brexit.
NMC Health shares jump on report of Chinese interest in stake | Financial Times
NMC Health shares jump on report of Chinese interest in stake | Financial Times:
Shares in NMC Health shot up as much as 42 per cent on Thursday morning after a media report that two groups, including one backed by China’s Fosun, had made competing offers to buy a significant stake in the private healthcare group.
According to Reuters, the bidders are offering up to £1.5bn for a 40 per cent holding in the UAE-based company. The stake is currently jointly owned by the chairman of Abu Dhabi-based investment firm KBBO Group, Khalifa Butti Bin Omeir, UAE-based businessman Saeed Bin Butti Al Qebaisi, and Infinite Investment, a vehicle linked to the two men, the report said.
NMC declined to comment on the matter.
Shares in NMC Health shot up as much as 42 per cent on Thursday morning after a media report that two groups, including one backed by China’s Fosun, had made competing offers to buy a significant stake in the private healthcare group.
According to Reuters, the bidders are offering up to £1.5bn for a 40 per cent holding in the UAE-based company. The stake is currently jointly owned by the chairman of Abu Dhabi-based investment firm KBBO Group, Khalifa Butti Bin Omeir, UAE-based businessman Saeed Bin Butti Al Qebaisi, and Infinite Investment, a vehicle linked to the two men, the report said.
NMC declined to comment on the matter.
DP World's shares surge on rising profit and revenue | ZAWYA MENA Edition
DP World's shares surge on rising profit and revenue | ZAWYA MENA Edition:
DP World, one of the world’s largest port operators, reported a higher net profit at $753 million for the first half of the year 2019, triggering a rally in the company’s shares.
The company’s net profit attributable to owners rose to $753 million compared to $593 million in H1 2018, a 26.98 percent increase. Its shares rose 5.04 percent in early trading on Thursday by 10:40 GST.
DP World’s H1 2019 revenue increased 31.56 percent to $3.46 billion, compared to $2.63 billion for the same time last year.
DP World, one of the world’s largest port operators, reported a higher net profit at $753 million for the first half of the year 2019, triggering a rally in the company’s shares.
The company’s net profit attributable to owners rose to $753 million compared to $593 million in H1 2018, a 26.98 percent increase. Its shares rose 5.04 percent in early trading on Thursday by 10:40 GST.
DP World’s H1 2019 revenue increased 31.56 percent to $3.46 billion, compared to $2.63 billion for the same time last year.
MIDEAST STOCKS-Banks push #Saudi lower, DP World gains on earnings - Reuters
MIDEAST STOCKS-Banks push Saudi lower, DP World gains on earnings - Reuters:
Saudi Arabian stock market fell in early trade on Thursday pulled lower by its banking shares while other Gulf stocks traded higher.
In Saudi Arabia, the index fell 0.5% as Al Rajhi Bank dropped 0.6% and Samba Financial Group lost 1.3%.
Banking stocks have come under pressure in recent weeks from the Saudi central bank’s decision to follow the U.S. Federal Reserve in cutting interest rates, which analysts expect to squeeze lenders’ profit margins.
Saudi Arabian stock market fell in early trade on Thursday pulled lower by its banking shares while other Gulf stocks traded higher.
In Saudi Arabia, the index fell 0.5% as Al Rajhi Bank dropped 0.6% and Samba Financial Group lost 1.3%.
Banking stocks have come under pressure in recent weeks from the Saudi central bank’s decision to follow the U.S. Federal Reserve in cutting interest rates, which analysts expect to squeeze lenders’ profit margins.
Swiss Fintech Turns Into Unicorn as Valuation Exceeds $1 Billion - Bloomberg
Swiss Fintech Turns Into Unicorn as Valuation Exceeds $1 Billion - Bloomberg: A
Zurich-based fintech firm whose investors include Josef Ackermann has raised additional money to value the company at more than $1 billion as it prepares to expand outside its main market of Germany.
Numbrs Personal Finance raised $40 million to bring the total capital invested to almost $200 million, Chief Executive Officer Martin Saidler said in an interview. Numbrs offers an app that enables users to manage their existing bank accounts in one place and to buy financial products.
The company has become a so-called unicorn by focusing mostly on private investors. “Venture capital and private equity funds tend to have less patience. They get nervous when it takes longer for a startup to earn money,” Saidler said in an interview. Investment Corporation of Dubai, which invested in 2017, is an exception, he said.
Zurich-based fintech firm whose investors include Josef Ackermann has raised additional money to value the company at more than $1 billion as it prepares to expand outside its main market of Germany.
Numbrs Personal Finance raised $40 million to bring the total capital invested to almost $200 million, Chief Executive Officer Martin Saidler said in an interview. Numbrs offers an app that enables users to manage their existing bank accounts in one place and to buy financial products.
The company has become a so-called unicorn by focusing mostly on private investors. “Venture capital and private equity funds tend to have less patience. They get nervous when it takes longer for a startup to earn money,” Saidler said in an interview. Investment Corporation of Dubai, which invested in 2017, is an exception, he said.
Hot August for Egypt's World-Beating Stocks May Get Even Hotter - Bloomberg
Hot August for Egypt's World-Beating Stocks May Get Even Hotter - Bloomberg:
It’s already been a great August for Egyptian stocks and things could be about to get even better should the north African nation cut interest rates as expected on Thursday.
The EGX 30 Index has gained more than 7% so far this month, making it the world’s best performing major gauge of those tracked by Bloomberg. That’s in stark contrast to declines in peers, with the MSCI Emerging Markets Index falling 5% month-to-date on the back of a more general risk-off sentiment.
Optimism for lower rates has been just one of the reasons that the Cairo bourse has been insulated from tensions gripping markets in most other parts of the world. Egypt’s lowest inflation in four years and a successful trading debut for the country’s first initial public offering of 2019 have also aided sentiment.
It’s already been a great August for Egyptian stocks and things could be about to get even better should the north African nation cut interest rates as expected on Thursday.
The EGX 30 Index has gained more than 7% so far this month, making it the world’s best performing major gauge of those tracked by Bloomberg. That’s in stark contrast to declines in peers, with the MSCI Emerging Markets Index falling 5% month-to-date on the back of a more general risk-off sentiment.
Optimism for lower rates has been just one of the reasons that the Cairo bourse has been insulated from tensions gripping markets in most other parts of the world. Egypt’s lowest inflation in four years and a successful trading debut for the country’s first initial public offering of 2019 have also aided sentiment.
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