Marriott Sells St. Regis New York to Qatar Investment Authority - Bloomberg:
Marriott International Inc. has sold the St. Regis New York for $310 million to Qatar’s sovereign wealth fund, offloading a historic property that served as the launching point for an indispensable cocktail and a preeminent luxury hotel brand.
The purchase gives Qatar Investment Authority another trophy asset to add to an expanding portfolio across the globe. The fund has been boosting its investments in the U.S., including purchasing stakes in properties in New York.
The St. Regis hotel, located on East 55th Street near Fifth Avenue, was opened by John Jacob Astor IV in 1904. The 18-story Beaux-Arts building contains more than 200 guest rooms and the King Cole Bar, a watering hole where the Bloody Mary is said to have been invented.
Thursday, 31 October 2019
Airbus Working to Secure 100-Jet Air Arabia Deal for #Dubai Show - Bloomberg
Airbus Working to Secure 100-Jet Air Arabia Deal for Dubai Show - Bloomberg:
Airbus SE is working to pin down an order for 100 narrow-body aircraft from Air Arabia PJSC that would be worth more than $10 billion at list prices, according to people with knowledge of the matter.
A deal for the A320neo-series may come as early as November’s Dubai Air Show, they said, asking not to be named as the plans are private. Nothing has been finalized and Boeing Co. isn’t yet out of the running, the people said, though Air Arabia is currently an Airbus operator and the U.S. planemaker’s 737 Max narrow-body remains grounded after two fatal crashes.
Air Arabia Chief Executive Officer Adel Ali told Bloomberg in February that he was considering a triple-digit jet deal with Airbus or Boeing to add destinations in Southeast Asia, Australia, Africa and Europe. He said earlier this month that the purchase should be decided by January. The company already ranks as the biggest discount carrier in the Persian Gulf and North Africa.
Airbus SE is working to pin down an order for 100 narrow-body aircraft from Air Arabia PJSC that would be worth more than $10 billion at list prices, according to people with knowledge of the matter.
A deal for the A320neo-series may come as early as November’s Dubai Air Show, they said, asking not to be named as the plans are private. Nothing has been finalized and Boeing Co. isn’t yet out of the running, the people said, though Air Arabia is currently an Airbus operator and the U.S. planemaker’s 737 Max narrow-body remains grounded after two fatal crashes.
Air Arabia Chief Executive Officer Adel Ali told Bloomberg in February that he was considering a triple-digit jet deal with Airbus or Boeing to add destinations in Southeast Asia, Australia, Africa and Europe. He said earlier this month that the purchase should be decided by January. The company already ranks as the biggest discount carrier in the Persian Gulf and North Africa.
Saudis Are Said to Consider Increase in Lending for Aramco IPO - Bloomberg
Saudis Are Said to Consider Increase in Lending for Aramco IPO - Bloomberg:
Saudi Arabia is considering increasing how much the kingdom’s banks can lend to local investors who want to buy shares in Aramco’s initial public offering, people with knowledge of the matter said.
The Saudi Arabian Monetary Authority met banks this week to discuss how much they can lend to domestic stock buyers who want to invest in the oil giant’s IPO, the people said, asking not to be identified because the information is private. Some lenders are seeking permission to offer greater leverage than what the central bank normally allows, they said.
The regulator wants to ensure that they are able to maintain enough liquidity in the local financial system, while still ensuring enough loans are available to support investors in the IPO, the people said. The final amount lenders are willing to provide will depend on the valuation Aramco seeks, with banks likely to be more conservative at higher valuations, they said.
Saudi Arabia is considering increasing how much the kingdom’s banks can lend to local investors who want to buy shares in Aramco’s initial public offering, people with knowledge of the matter said.
The Saudi Arabian Monetary Authority met banks this week to discuss how much they can lend to domestic stock buyers who want to invest in the oil giant’s IPO, the people said, asking not to be identified because the information is private. Some lenders are seeking permission to offer greater leverage than what the central bank normally allows, they said.
The regulator wants to ensure that they are able to maintain enough liquidity in the local financial system, while still ensuring enough loans are available to support investors in the IPO, the people said. The final amount lenders are willing to provide will depend on the valuation Aramco seeks, with banks likely to be more conservative at higher valuations, they said.
Oil prices decline on weak Chinese data, U.S. pipeline problems - Reuters
Oil prices decline on weak Chinese data, U.S. pipeline problems - Reuters:
Oil prices fell on Thursday after data showed weak factory activity in China, with U.S. crude facing extra pressure after flows out of the Cushing, Oklahoma storage hub were disrupted because of reduced flows on a pipeline.
Brent futures were down 38 cents, or 0.6%, at $60.23 a barrel, while U.S. West Texas Intermediate crude fell 88 cents, or 1.6%, to $54.18.
The front-month Brent contract for December delivery expires on Thursday. Futures for January delivery LCOF0, which will soon be the front-month, fell about 1.0% to settle at $59.62.
For the month, Brent was on track to fall less than 1% and WTI to rise less than 1%.
Oil prices fell on Thursday after data showed weak factory activity in China, with U.S. crude facing extra pressure after flows out of the Cushing, Oklahoma storage hub were disrupted because of reduced flows on a pipeline.
Brent futures were down 38 cents, or 0.6%, at $60.23 a barrel, while U.S. West Texas Intermediate crude fell 88 cents, or 1.6%, to $54.18.
The front-month Brent contract for December delivery expires on Thursday. Futures for January delivery LCOF0, which will soon be the front-month, fell about 1.0% to settle at $59.62.
For the month, Brent was on track to fall less than 1% and WTI to rise less than 1%.
Business forum boosts #Saudi image, but some say more rehab needed - Reuters
Business forum boosts Saudi image, but some say more rehab needed - Reuters:
Saudi Arabia’s crown prince showed up only briefly this week at the kingdom’s flagship investment forum, which largely drew leaders and firms with strategic interest in the Gulf state and wrapped up with relatively meagre deals and an anticlimactic finale.
It was a far cry from the inaugural Future Investment Initiative (FII) in 2017 when Mohammed bin Salman, embraced then by the West as a bold reformer, shared his vision of a modern, tolerant kingdom that would build futuristic cities.
However, as Riyadh prepares to assume the Group of 20 presidency, its ability to once again draw big names after a Western boycott of last year’s event showed it starting to recover from the damage to the prince’s image that followed the murder of a prominent Saudi journalist.
Saudi Arabia’s crown prince showed up only briefly this week at the kingdom’s flagship investment forum, which largely drew leaders and firms with strategic interest in the Gulf state and wrapped up with relatively meagre deals and an anticlimactic finale.
It was a far cry from the inaugural Future Investment Initiative (FII) in 2017 when Mohammed bin Salman, embraced then by the West as a bold reformer, shared his vision of a modern, tolerant kingdom that would build futuristic cities.
However, as Riyadh prepares to assume the Group of 20 presidency, its ability to once again draw big names after a Western boycott of last year’s event showed it starting to recover from the damage to the prince’s image that followed the murder of a prominent Saudi journalist.
#Saudi expects wider 2020 budget deficit of $50 billion - finance minister - Reuters
Saudi expects wider 2020 budget deficit of $50 billion - finance minister - Reuters:
Saudi Arabia expects its budget deficit to widen to 187 billion riyals ($49.86 billion), or 6.5% of gross domestic product (GDP), next year from a projected 131 billion riyals for this year, or 4.7% of GDP, the finance minister said on Thursday, as lower oil prices hit revenues.
Minister Mohammed al-Jadaan told a news briefing revenues would go down to 833 billion riyals in 2020 from 917 billion riyals projected for 2019.
Saudi Arabia, the largest economy in the Arab world and the world’s largest crude exporter, has suffered in recent years because of low oil prices and austerity measures aimed at reducing its deficit.
Saudi Arabia expects its budget deficit to widen to 187 billion riyals ($49.86 billion), or 6.5% of gross domestic product (GDP), next year from a projected 131 billion riyals for this year, or 4.7% of GDP, the finance minister said on Thursday, as lower oil prices hit revenues.
Minister Mohammed al-Jadaan told a news briefing revenues would go down to 833 billion riyals in 2020 from 917 billion riyals projected for 2019.
Saudi Arabia, the largest economy in the Arab world and the world’s largest crude exporter, has suffered in recent years because of low oil prices and austerity measures aimed at reducing its deficit.
Fitch affirms #AbuDhabi's rating with stable outlook | ZAWYA MENA Edition
Fitch affirms Abu Dhabi's rating with stable outlook | ZAWYA MENA Edition:
Fitch affirmed Abu Dhabi’s Long-Term Foreign-Currency Issuer Default Rating (IDR) rating at ‘AA’ with a stable outlook.
The rating reflects the emirate’s strong fiscal and external metrics and high GDP per capita, balanced by high dependence on hydrocarbons, an underdeveloped economic policy framework and weak governance indicators relative to 'AA' peers, according to the ratings agency.
Fitch expects a fiscal surplus of 1.9 percent of GDP in 2019 for Abu Dhabi, down from 3.3 percent in 2018, noting that lower oil prices will underpin a 1.6 percent of GDP drop in revenue, despite new revenues from VAT amounting to 1.2 percent of GDP in 2019.
Fitch affirmed Abu Dhabi’s Long-Term Foreign-Currency Issuer Default Rating (IDR) rating at ‘AA’ with a stable outlook.
The rating reflects the emirate’s strong fiscal and external metrics and high GDP per capita, balanced by high dependence on hydrocarbons, an underdeveloped economic policy framework and weak governance indicators relative to 'AA' peers, according to the ratings agency.
Fitch expects a fiscal surplus of 1.9 percent of GDP in 2019 for Abu Dhabi, down from 3.3 percent in 2018, noting that lower oil prices will underpin a 1.6 percent of GDP drop in revenue, despite new revenues from VAT amounting to 1.2 percent of GDP in 2019.
Mideast Stocks: Lender FAB pressures #AbuDhabi as major Gulf markets drop | ZAWYA MENA Edition
Mideast Stocks: Lender FAB pressures Abu Dhabi as major Gulf markets drop | ZAWYA MENA Edition:
All major Gulf stock markets slipped on Thursday amid falling oil prices, while Abu Dhabi led the losses as its top lender First Abu Dhabi Bank (FAB) declined.
Oil prices came under pressure from rising U.S. crude oil stocks and weak factory activity in China, with few bullish factors on the horizon.
Brent crude futures were down 20 cents at $60.41 a barrel by 1156 GMT, erasing earlier gains.
The Abu Dhabi index retreated 1.3%, with FAB shedding 2.7%, its biggest intraday fall since mid-May.
All major Gulf stock markets slipped on Thursday amid falling oil prices, while Abu Dhabi led the losses as its top lender First Abu Dhabi Bank (FAB) declined.
Oil prices came under pressure from rising U.S. crude oil stocks and weak factory activity in China, with few bullish factors on the horizon.
Brent crude futures were down 20 cents at $60.41 a barrel by 1156 GMT, erasing earlier gains.
The Abu Dhabi index retreated 1.3%, with FAB shedding 2.7%, its biggest intraday fall since mid-May.
High debt, high deficit: #Lebanon’s economic woes fuelling protests | Financial Times
High debt, high deficit: Lebanon’s economic woes fuelling protests | Financial Times:
The resignation of Saad al-Hariri as Lebanon’s prime minister on Tuesday has plunged the country’s economy deeper into uncertainty as protesters continue to occupy public squares, calling for a clear-out of the entire political elite.
Banks remain shuttered for a second week amid fears that the unrest will trigger capital flight and a run on lenders by customers anxious about their dollar deposits. The Banking Association said they would reopen on Friday.
“Given the uncertain political outlook, the risk of capital flight is very high, should banks open on Friday,” said Alia Moubayed, managing director at Jefferies International, a US investment bank.
The resignation of Saad al-Hariri as Lebanon’s prime minister on Tuesday has plunged the country’s economy deeper into uncertainty as protesters continue to occupy public squares, calling for a clear-out of the entire political elite.
Banks remain shuttered for a second week amid fears that the unrest will trigger capital flight and a run on lenders by customers anxious about their dollar deposits. The Banking Association said they would reopen on Friday.
“Given the uncertain political outlook, the risk of capital flight is very high, should banks open on Friday,” said Alia Moubayed, managing director at Jefferies International, a US investment bank.
#Kuwait’s sovereign wealth fund puts weight on green investing | Financial Times
Kuwait’s sovereign wealth fund puts weight on green investing | Financial Times:
The Arab Bankers Association of North America last week honoured Farouk Bastaki, the head of the Kuwait Investment Authority, at a glittering dinner in New York. The crowd included recipients — and no doubt some would-be recipients — of riches from his sovereign wealth fund, one of the largest in the world.
David Rubenstein, the co-founder of US buyout group Carlyle, served as master of ceremonies. He suggested that when Mr Bastaki eventually retires, the KIA chief should consider establishing a private equity firm; answering, as Mr Rubenstein quipped, “the highest calling of mankind”.
The celebrated Mr Bastaki has a different challenge in mind.
The KIA, the world’s oldest sovereign wealth fund, has derived most of the nearly $600bn it manages from Kuwait’s oil revenues. Mr Bastaki knows its history well, as the first managing director to be plucked from the ranks of the fund’s staff.
The Arab Bankers Association of North America last week honoured Farouk Bastaki, the head of the Kuwait Investment Authority, at a glittering dinner in New York. The crowd included recipients — and no doubt some would-be recipients — of riches from his sovereign wealth fund, one of the largest in the world.
David Rubenstein, the co-founder of US buyout group Carlyle, served as master of ceremonies. He suggested that when Mr Bastaki eventually retires, the KIA chief should consider establishing a private equity firm; answering, as Mr Rubenstein quipped, “the highest calling of mankind”.
The celebrated Mr Bastaki has a different challenge in mind.
The KIA, the world’s oldest sovereign wealth fund, has derived most of the nearly $600bn it manages from Kuwait’s oil revenues. Mr Bastaki knows its history well, as the first managing director to be plucked from the ranks of the fund’s staff.
#Dubai Commercial Property Market, Investment Strategy, Company Outlook With Majid Al Futtaim - Bloomberg
Dubai Commercial Property Market, Investment Strategy, Company Outlook With Majid Al Futtaim - Bloomberg:
Alain Bejjani, chief executive officer at Majid Al Futtaim Holding, discusses Dubai’s commercial property market, his investment strategy for Saudi Arabia, Middle East customers, the company’s geographical footprint and his outlook for the company. He speaks on “Bloomberg Daybreak: Middle East” from the sidelines of the Future Investment Initiative in Riyadh. (Source: Bloomberg)
Alain Bejjani, chief executive officer at Majid Al Futtaim Holding, discusses Dubai’s commercial property market, his investment strategy for Saudi Arabia, Middle East customers, the company’s geographical footprint and his outlook for the company. He speaks on “Bloomberg Daybreak: Middle East” from the sidelines of the Future Investment Initiative in Riyadh. (Source: Bloomberg)
MGM Sets Year-End Target for Sale of MGM Grand in Las Vegas - Bloomberg
MGM Sets Year-End Target for Sale of MGM Grand in Las Vegas - Bloomberg:
MGM Resorts International expects to announce a buyer for its flagship MGM Grand resort in Las Vegas by the end of year, marking one of the final steps toward its goal of becoming an “asset-light” casino operator.
The company agreed this month to sell the Bellagio resort in Las Vegas to Blackstone Group in a $4.25 billion deal under which MGM will continue to manage the property. MGM is also selling its Circus Circus casino in the city to real estate mogul Phil Ruffin.
Chief Executive Officer Jim Murren said on a conference call Wednesday that he’ll use the proceeds from the MGM Grand sale to reduce debt and invest in new growth opportunities, including a potential $10 billion casino in Japan and sports betting in the U.S.
MGM Resorts International expects to announce a buyer for its flagship MGM Grand resort in Las Vegas by the end of year, marking one of the final steps toward its goal of becoming an “asset-light” casino operator.
The company agreed this month to sell the Bellagio resort in Las Vegas to Blackstone Group in a $4.25 billion deal under which MGM will continue to manage the property. MGM is also selling its Circus Circus casino in the city to real estate mogul Phil Ruffin.
Chief Executive Officer Jim Murren said on a conference call Wednesday that he’ll use the proceeds from the MGM Grand sale to reduce debt and invest in new growth opportunities, including a potential $10 billion casino in Japan and sports betting in the U.S.
#Qatar Prepares for Legislative Elections After 15-Year Delay - Bloomberg
Qatar Prepares for Legislative Elections After 15-Year Delay - Bloomberg:
Qatar moved a step closer to holding legislative elections Wednesday after delaying them repeatedly for over a decade.
The country’s ruler, Sheikh Tamim bin Hamad Al Thani, issued a decision establishing a committee to prepare for elections to a key legislative body, according to a tweet from state-run Qatar News Agency.
Should the process move forward, Qatar would become the last Gulf Arab monarchy to introduce legislative elections. The small gas-rich nation has faced a trade and political boycott from Arab states led by Saudi Arabia and the United Arab Emirates that has disrupted its trade and forced it to rethink alliances.
Qatar moved a step closer to holding legislative elections Wednesday after delaying them repeatedly for over a decade.
The country’s ruler, Sheikh Tamim bin Hamad Al Thani, issued a decision establishing a committee to prepare for elections to a key legislative body, according to a tweet from state-run Qatar News Agency.
Should the process move forward, Qatar would become the last Gulf Arab monarchy to introduce legislative elections. The small gas-rich nation has faced a trade and political boycott from Arab states led by Saudi Arabia and the United Arab Emirates that has disrupted its trade and forced it to rethink alliances.
Aramco IPO Becomes Factor in Timing of Egypt’s Own Share Offers - Bloomberg
Aramco IPO Becomes Factor in Timing of Egypt’s Own Share Offers - Bloomberg:
What’s set to be the world’s biggest IPO is already causing ripples across the Red Sea.
Egypt government says banks advising on its own long-awaited sales of stakes in state companies are urging it to take the looming listing of Saudi Arabia’s Aramco into account. That could mean a shift in the North African nation’s plans to raise about 80 billion pounds ($4.95 billion) from all its offers and bring in much-needed foreign investment.
Aramco hasn’t given a date for its IPO, but Al Arabiya TV reported this week the oil giant will start trading on Saudi’s stock exchange Dec. 11.
What’s set to be the world’s biggest IPO is already causing ripples across the Red Sea.
Egypt government says banks advising on its own long-awaited sales of stakes in state companies are urging it to take the looming listing of Saudi Arabia’s Aramco into account. That could mean a shift in the North African nation’s plans to raise about 80 billion pounds ($4.95 billion) from all its offers and bring in much-needed foreign investment.
Aramco hasn’t given a date for its IPO, but Al Arabiya TV reported this week the oil giant will start trading on Saudi’s stock exchange Dec. 11.
Damac chairman buys Italian firm Roberto Cavalli | ZAWYA MENA Edition
Damac chairman buys Italian firm Roberto Cavalli | ZAWYA MENA Edition:
Vision Investment Company (VIC), the private investment vehicle of Dubai-based billionaire Hussain Sajwani, chairman of Damac Properties, has acquired the Italian fashion house Roberto Cavalli.
VIC is part of Dico Group, which is a private investment vehicle of the Damac chairman.
"Vision Investment Company, part of the Dico Group, which is the private investment vehicle of Sajwani, has made the purchase. We will make further comments in due course," Niall McLoughlin, senior vice president of Damac Properties, confirmed to Khaleej Times on Wednesday.
Vision Investment Company (VIC), the private investment vehicle of Dubai-based billionaire Hussain Sajwani, chairman of Damac Properties, has acquired the Italian fashion house Roberto Cavalli.
VIC is part of Dico Group, which is a private investment vehicle of the Damac chairman.
"Vision Investment Company, part of the Dico Group, which is the private investment vehicle of Sajwani, has made the purchase. We will make further comments in due course," Niall McLoughlin, senior vice president of Damac Properties, confirmed to Khaleej Times on Wednesday.
#Saudi central bank cuts rates by 25 bps -statement - Reuters
Saudi central bank cuts rates by 25 bps -statement - Reuters:
Saudi Arabia’s central bank said on Wednesday it had cut key interest rates following the U.S. Federal Reserve decision to cut interest rates for the third time this year.
The Saudi Arabian Monetary Authority (SAMA) cut its repo rate, used to lend money to banks, to 225 basis points from 250 bps, and the reverse repo, the rate at which commercial banks deposit money with the central bank, by the same margin to 175 bps.
Saudi Arabia’s central bank said on Wednesday it had cut key interest rates following the U.S. Federal Reserve decision to cut interest rates for the third time this year.
The Saudi Arabian Monetary Authority (SAMA) cut its repo rate, used to lend money to banks, to 225 basis points from 250 bps, and the reverse repo, the rate at which commercial banks deposit money with the central bank, by the same margin to 175 bps.
Oil prices rise, shrug off inventory gain, look for China stimulus - Reuters
Oil prices rise, shrug off inventory gain, look for China stimulus - Reuters:
Oil prices rose on Thursday as investors banked on more economic stimulus by China after weak PMI data, partly recovering from losses in the previous session on a much larger than expected build in U.S. crude stocks.
Brent crude futures were up 39 cents, or 0.6%, at $61 a barrel by 0747 GMT. They dropped by 1.6% on Wednesday.
U.S. West Texas Intermediate (WTI) crude futures were up 30 cents, or 0.5%, at $55.36 after a 0.9% decline in the previous session.
Factory activity in China shrank for a sixth straight month in October while growth in China’s services sector activity was its slowest since February 2016, official data showed on Thursday.
Oil prices rose on Thursday as investors banked on more economic stimulus by China after weak PMI data, partly recovering from losses in the previous session on a much larger than expected build in U.S. crude stocks.
Brent crude futures were up 39 cents, or 0.6%, at $61 a barrel by 0747 GMT. They dropped by 1.6% on Wednesday.
U.S. West Texas Intermediate (WTI) crude futures were up 30 cents, or 0.5%, at $55.36 after a 0.9% decline in the previous session.
Factory activity in China shrank for a sixth straight month in October while growth in China’s services sector activity was its slowest since February 2016, official data showed on Thursday.
#UAE central bank cuts rates by 25 basis points - Reuters
UAE central bank cuts rates by 25 basis points - Reuters:
The United Arab Emirates central bank said on Wednesday that it was cutting interest rates applied on the issuance of certificates of deposits by 25 basis points.
The central bank also said the repo rate for borrowing short-term liquidity had been cut by 25 basis points.
The United Arab Emirates central bank said on Wednesday that it was cutting interest rates applied on the issuance of certificates of deposits by 25 basis points.
The central bank also said the repo rate for borrowing short-term liquidity had been cut by 25 basis points.
UPDATE 1- #Saudi finance minister says oil GDP to fall 3% this year - Reuters
UPDATE 1-Saudi finance minister says oil GDP to fall 3% this year - Reuters:
Saudi Arabia expects its oil gross domestic product (GDP) to fall by 3% this year, its finance minister said on Thursday.
“For the non-oil GDP we maintained GDP growth at 2.9%,” Mohammed al-Jadaan said at the Future Investment Initiative conference in Riyadh.
Foreign direct investment has increased year to date, Jadaan said, adding that local private investment grew 1.3% in the first half of the year.
Saudi Arabia expects its oil gross domestic product (GDP) to fall by 3% this year, its finance minister said on Thursday.
“For the non-oil GDP we maintained GDP growth at 2.9%,” Mohammed al-Jadaan said at the Future Investment Initiative conference in Riyadh.
Foreign direct investment has increased year to date, Jadaan said, adding that local private investment grew 1.3% in the first half of the year.
MIDEAST STOCKS-Most major Gulf markets slip though #Qatar edges up on banks - Agricultural Commodities - Reuters
MIDEAST STOCKS-Most major Gulf markets slip though Qatar edges up on banks - Agricultural Commodities - Reuters:
Most major Gulf stock markets fell on Thursday, with Saudi Arabia leading the way on declines in corporate earnings, though Qatar bucked the trend as banks rose.
In Saudi Arabia, the benchmark index was down 0.5%, with Al Rajhi Bank declining 0.7% and Jabal Omar Development sliding 2.9%, making it the biggest in the index.
The developer posted a net loss of 80.6 million riyals ($21.5 million) on Wednesday compared with a profit of 469.6 million a year earlier. The firm blamed the losses on lower revenue from sales of residential units.
Advanced Petrochemical fell 1.1%. It reported a rise in third-quarter net profit of more than 5% but revenue dropped over 13%.
Most major Gulf stock markets fell on Thursday, with Saudi Arabia leading the way on declines in corporate earnings, though Qatar bucked the trend as banks rose.
In Saudi Arabia, the benchmark index was down 0.5%, with Al Rajhi Bank declining 0.7% and Jabal Omar Development sliding 2.9%, making it the biggest in the index.
The developer posted a net loss of 80.6 million riyals ($21.5 million) on Wednesday compared with a profit of 469.6 million a year earlier. The firm blamed the losses on lower revenue from sales of residential units.
Advanced Petrochemical fell 1.1%. It reported a rise in third-quarter net profit of more than 5% but revenue dropped over 13%.
Wednesday, 30 October 2019
Oil Falls to Lowest in a Week After Surprise U.S. Crude Build - Bloomberg
Oil Falls to Lowest in a Week After Surprise U.S. Crude Build - Bloomberg:
Oil fell for a third day as a U.S. government report showed a bigger-than-expected build in domestic crude supplies and Chile canceled a summit where the U.S. and China were expected to sign a preliminary trade accord.
Futures in New York declined to the lowest in a week on Wednesday. The Energy Information Administration reported that American crude inventories rose by 5.7 million barrels last week, beating analyst forecasts, while supplies at the key Cushing, Oklahoma, storage hub rose for a fourth week. U.S. President Donald Trump’s plan to ink a trade deal with Chinese President Xi Jinping were thrown into question when Chile canceled next month’s APEC summit where the two leaders planned to meet.
Oil fell for a third day as a U.S. government report showed a bigger-than-expected build in domestic crude supplies and Chile canceled a summit where the U.S. and China were expected to sign a preliminary trade accord.
Futures in New York declined to the lowest in a week on Wednesday. The Energy Information Administration reported that American crude inventories rose by 5.7 million barrels last week, beating analyst forecasts, while supplies at the key Cushing, Oklahoma, storage hub rose for a fourth week. U.S. President Donald Trump’s plan to ink a trade deal with Chinese President Xi Jinping were thrown into question when Chile canceled next month’s APEC summit where the two leaders planned to meet.
Gulf Rate Cuts in Wake of Fed Are Finally Joined by #Kuwait - Bloomberg
Gulf Rate Cuts in Wake of Fed Are Finally Joined by Kuwait - Bloomberg:
Kuwait joined a round of monetary easing in the Gulf for the first time this year as regional central banks followed the U.S. Federal Reserve’s interest-rate cut of a quarter percentage point on Wednesday.
Policy makers in Kuwait lowered borrowing costs for the first time since 2012, after splitting from their neighbors when U.S. rates were cut in July and September. Central banks in the region usually tend to move in lockstep with the Fed to protect their currencies’ peg to the dollar. Kuwait controls the value of its dinar against an undisclosed basket of currencies, meaning it has more flexibility in setting rates.
Kuwait joined a round of monetary easing in the Gulf for the first time this year as regional central banks followed the U.S. Federal Reserve’s interest-rate cut of a quarter percentage point on Wednesday.
Policy makers in Kuwait lowered borrowing costs for the first time since 2012, after splitting from their neighbors when U.S. rates were cut in July and September. Central banks in the region usually tend to move in lockstep with the Fed to protect their currencies’ peg to the dollar. Kuwait controls the value of its dinar against an undisclosed basket of currencies, meaning it has more flexibility in setting rates.
Two ‘Forbidden’ IPOs Pit Gulf Investors Against Islamic Clerics - Bloomberg
Two ‘Forbidden’ IPOs Pit Gulf Investors Against Islamic Clerics - Bloomberg:
This year’s list of IPO debacles could grow longer if Kuwait’s clerics have their way.
A religious ruling in Kuwait against two initial public offerings launched this month is stirring fears that the Gulf state is clamming up at a time its bigger neighbor Saudi Arabia is doing just the opposite, courting investors in anticipation of Saudi Aramco’s IPO.
The offering of half of Kuwait’s stock exchange to citizens and a long-awaited public subscription to Shamal Al-Zour, the company that owns and operates a major power station, began Oct. 1. Nearly three weeks later, Kuwait’s highest religious authority said they breached Islamic law’s prohibition on interest and branded them “haram,” or forbidden.
The non-binding fatwa issued by the Ministry of Awqaf and Islamic Affairs said Boursa Kuwait trades in stocks of companies including those that don’t comply with Islamic principals, and makes “illegal revenues” from brokering transactions in these stocks. It also states Kuwait Stock Exchange company’s earns returns on deposits at banks aren’t Shariah compliant.
This year’s list of IPO debacles could grow longer if Kuwait’s clerics have their way.
A religious ruling in Kuwait against two initial public offerings launched this month is stirring fears that the Gulf state is clamming up at a time its bigger neighbor Saudi Arabia is doing just the opposite, courting investors in anticipation of Saudi Aramco’s IPO.
The offering of half of Kuwait’s stock exchange to citizens and a long-awaited public subscription to Shamal Al-Zour, the company that owns and operates a major power station, began Oct. 1. Nearly three weeks later, Kuwait’s highest religious authority said they breached Islamic law’s prohibition on interest and branded them “haram,” or forbidden.
The non-binding fatwa issued by the Ministry of Awqaf and Islamic Affairs said Boursa Kuwait trades in stocks of companies including those that don’t comply with Islamic principals, and makes “illegal revenues” from brokering transactions in these stocks. It also states Kuwait Stock Exchange company’s earns returns on deposits at banks aren’t Shariah compliant.
Investcorp plans $1 bln infrastructure investments in #Saudi, Gulf & MENA - joint CEO - Reuters
Investcorp plans $1 bln infrastructure investments in Saudi, Gulf & MENA - joint CEO - Reuters:
Bahrain-based Investcorp plans to invest at least half of its $1 billion GCC Infrastructure fund in Saudi Arabia as it seeks to take advantage of investment opportunities in the kingdom, its co-chief executive said on Wednesday.
“It will focus on healthcare, education, social housing, infrastructure roads, utilities,” Hazem Ben-Gacem told Reuters, adding that the remainder would be invested in other Gulf Arab states and the wider Middle East and North Africa (MENA) region.
The firm wants to be active in projects such as ports in Oman, utilities in the United Arab Emirates as well as the toll road infrastructure in Bahrain, he said in an interview on the sidelines of a Future Investment Initiative forum in Riyadh.
Bahrain-based Investcorp plans to invest at least half of its $1 billion GCC Infrastructure fund in Saudi Arabia as it seeks to take advantage of investment opportunities in the kingdom, its co-chief executive said on Wednesday.
“It will focus on healthcare, education, social housing, infrastructure roads, utilities,” Hazem Ben-Gacem told Reuters, adding that the remainder would be invested in other Gulf Arab states and the wider Middle East and North Africa (MENA) region.
The firm wants to be active in projects such as ports in Oman, utilities in the United Arab Emirates as well as the toll road infrastructure in Bahrain, he said in an interview on the sidelines of a Future Investment Initiative forum in Riyadh.
Russia's RDIF unlikely to make huge investment in Aramco IPO -chief - Reuters
Russia's RDIF unlikely to make huge investment in Aramco IPO -chief - Reuters:
Russia’s sovereign wealth fund will not make a huge investment in Saudi oil giant Aramco’s initial public offering (IPO), the head of the Russian Direct Investment Fund (RDIF) Kirill Dmitriev told Reuters on Wednesday.
“Definitely Russia will not be making a huge investment in Aramco because already it is quite exposed to oil,” he said in an interview on the sidelines of an investment forum in the Saudi capital Riyadh.
“But lots of pension funds believe Aramco offers a very interesting value proposition ... There’s definite interest from a number of Russian pension funds, a number of Russian investment funds and investment banks.”
Russia’s sovereign wealth fund will not make a huge investment in Saudi oil giant Aramco’s initial public offering (IPO), the head of the Russian Direct Investment Fund (RDIF) Kirill Dmitriev told Reuters on Wednesday.
“Definitely Russia will not be making a huge investment in Aramco because already it is quite exposed to oil,” he said in an interview on the sidelines of an investment forum in the Saudi capital Riyadh.
“But lots of pension funds believe Aramco offers a very interesting value proposition ... There’s definite interest from a number of Russian pension funds, a number of Russian investment funds and investment banks.”
#Saudi Public Investment Fund signs $10 bln loan - Reuters
Saudi Public Investment Fund signs $10 bln loan - Reuters:
Saudi Arabia’s Public investment Fund (PIF) on Wednesday signed a $10 billion loan, an executive said.
The loan, provided by a syndicate of 10 banks, is linked to the acquisition by Saudi Aramco of PIF’s stake in petrochemical company Saudi Basic Corporation (SABIC), said Alireza Zaimi, head of corporate finance at PIF.
He was speaking at an investment conference in Riyadh.
Saudi Arabia’s Public investment Fund (PIF) on Wednesday signed a $10 billion loan, an executive said.
The loan, provided by a syndicate of 10 banks, is linked to the acquisition by Saudi Aramco of PIF’s stake in petrochemical company Saudi Basic Corporation (SABIC), said Alireza Zaimi, head of corporate finance at PIF.
He was speaking at an investment conference in Riyadh.
#Saudi, #UAE sovereign wealth funds look for growth in global markets - FII | ZAWYA MENA Edition
Saudi, UAE sovereign wealth funds look for growth in global markets - FII | ZAWYA MENA Edition:
Sovereign wealth funds from Saudi Arabia and the UAE are expanding across markets such as Russia, China, India and Latin America to mitigate risks of uncertainty.
Experts attending the three-day Future Investment Initiative (FII) conference in Saudi Arabia identified uncertainty due to fast-changing technologies and geopolitical tensions as one of the biggest challenges for businesses and societies around the world. Additionally, many of these new technologies are being used by the finance sector to break geographical barriers.
Slowing of GDP growth in the UAE and Saudi Arabia can be mitigated through diligent global investments by cash-rich sovereign wealth funds (SWFs) from Saudi Arabia and the UAE, according to the speakers at the opening session on investments.
Sovereign wealth funds from Saudi Arabia and the UAE are expanding across markets such as Russia, China, India and Latin America to mitigate risks of uncertainty.
Experts attending the three-day Future Investment Initiative (FII) conference in Saudi Arabia identified uncertainty due to fast-changing technologies and geopolitical tensions as one of the biggest challenges for businesses and societies around the world. Additionally, many of these new technologies are being used by the finance sector to break geographical barriers.
Slowing of GDP growth in the UAE and Saudi Arabia can be mitigated through diligent global investments by cash-rich sovereign wealth funds (SWFs) from Saudi Arabia and the UAE, according to the speakers at the opening session on investments.
Brazil President Bolsonaro says he wants his country to join OPEC - Reuters
Brazil President Bolsonaro says he wants his country to join OPEC - Reuters:
Brazilian President Jair Bolsonaro said on Wednesday that he wants his country to join OPEC, a move that would add the most significant new producer to the oil cartel for years.
The comments come ahead of a massive auction of oil rights in Brazil, which is boosting output rapidly. OPEC membership would likely require Brazil to limit oil production, potentially throwing future expansion plans into doubt.
The Organization of the Petroleum Exporting Countries groups top exporter Saudi Arabia and 13 other countries. Since 2017, OPEC has had a deal with several non-member producers, excluding Brazil, to limit supply in an effort to bolster prices.
Brazilian President Jair Bolsonaro said on Wednesday that he wants his country to join OPEC, a move that would add the most significant new producer to the oil cartel for years.
The comments come ahead of a massive auction of oil rights in Brazil, which is boosting output rapidly. OPEC membership would likely require Brazil to limit oil production, potentially throwing future expansion plans into doubt.
The Organization of the Petroleum Exporting Countries groups top exporter Saudi Arabia and 13 other countries. Since 2017, OPEC has had a deal with several non-member producers, excluding Brazil, to limit supply in an effort to bolster prices.
U.S., Gulf countries impose joint #Iran-related sanctions on 25 targets - Reuters
U.S., Gulf countries impose joint Iran-related sanctions on 25 targets - Reuters:
The United States and six Gulf countries agreed to jointly impose sanctions on 25 corporations, banks and individuals linked to Iran’s support for militant networks including Hezbollah, the U.S. Treasury Department said on Wednesday.
The blacklisted targets were announced by the Terrorist Financing Targeting Center (TFTC) nations - which also include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates - as U.S. Treasury Secretary Steve Mnuchin traveled in the Middle East to finalize details of an economic development plan for the Palestinians, Jordan, Egypt and Lebanon.
All 25 targets were previously under sanctions by the United States.
The United States and six Gulf countries agreed to jointly impose sanctions on 25 corporations, banks and individuals linked to Iran’s support for militant networks including Hezbollah, the U.S. Treasury Department said on Wednesday.
The blacklisted targets were announced by the Terrorist Financing Targeting Center (TFTC) nations - which also include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates - as U.S. Treasury Secretary Steve Mnuchin traveled in the Middle East to finalize details of an economic development plan for the Palestinians, Jordan, Egypt and Lebanon.
All 25 targets were previously under sanctions by the United States.
MIDEAST STOCKS- #AbuDhabi outperforms on FAB, #Saudi ends losing streak - Reuters
MIDEAST STOCKS-Abu Dhabi outperforms on FAB, Saudi ends losing streak - Reuters:
Abu Dhabi stocks rebounded on Wednesday,
outperforming regional peers after a surge in First Abu Dhabi
Bank, while Saudi snapped a three-day losing streak on corporate
earnings announcements.
The Abu Dhabi index bounced back 1.9% after it lost
1.2% in the previous session, with market heavyweight First Abu
Dhabi Bank (FAB) surging 3.4%.
The largest lender in the United Arab Emirates saw its
biggest intraday gain since July, a day after it announced the
opening of a new branch in Saudi's Al Khobar. Another branch is
scheduled to open soon in Jeddah.
On Oct. 24 the lender also reported single-digit growth in
third-quarter net profit, broadly in line with analyst
forecasts.
Abu Dhabi stocks rebounded on Wednesday,
outperforming regional peers after a surge in First Abu Dhabi
Bank, while Saudi snapped a three-day losing streak on corporate
earnings announcements.
The Abu Dhabi index bounced back 1.9% after it lost
1.2% in the previous session, with market heavyweight First Abu
Dhabi Bank (FAB) surging 3.4%.
The largest lender in the United Arab Emirates saw its
biggest intraday gain since July, a day after it announced the
opening of a new branch in Saudi's Al Khobar. Another branch is
scheduled to open soon in Jeddah.
On Oct. 24 the lender also reported single-digit growth in
third-quarter net profit, broadly in line with analyst
forecasts.
Gulf Wealth Funds to Consider Investing in Aramco IPO - Bloomberg
Gulf Wealth Funds to Consider Investing in Aramco IPO - Bloomberg:
Sovereign wealth funds in Kuwait and Bahrain said they will consider investing in the initial public offering of Saudi Aramco, while their counterpart in South Korea plans to wait for the inclusion of the oil giant in benchmark stock indexes.
“Usually we try to be diversified away from oil but it’s an investment opportunity,” Kuwait Investment Authority’s Managing Director Farouk Bastaki told reporters in Riyadh at the Future Investment Initiative conference. The Kuwait Investment Authority hasn’t been approached by Aramco nor its advisers and its decision to invest would depend on the size, timing and valuation of the IPO, he said.
Saudi Aramco is working toward an IPO that may raise $40 billion $60 billion and is set to be the world’s biggest. Saudi Arabia’s Capital Markets Authority will announce the start of the IPO process on Sunday and the shares will begin trading in Riyadh from Dec. 11, Al Arabiya TV reported, without saying where it got the information.
Sovereign wealth funds in Kuwait and Bahrain said they will consider investing in the initial public offering of Saudi Aramco, while their counterpart in South Korea plans to wait for the inclusion of the oil giant in benchmark stock indexes.
“Usually we try to be diversified away from oil but it’s an investment opportunity,” Kuwait Investment Authority’s Managing Director Farouk Bastaki told reporters in Riyadh at the Future Investment Initiative conference. The Kuwait Investment Authority hasn’t been approached by Aramco nor its advisers and its decision to invest would depend on the size, timing and valuation of the IPO, he said.
Saudi Aramco is working toward an IPO that may raise $40 billion $60 billion and is set to be the world’s biggest. Saudi Arabia’s Capital Markets Authority will announce the start of the IPO process on Sunday and the shares will begin trading in Riyadh from Dec. 11, Al Arabiya TV reported, without saying where it got the information.
#SaudiArabia’s Sovereign Fund to Invest $10 Billion in Brazil - Bloomberg
Saudi Arabia’s Sovereign Fund to Invest $10 Billion in Brazil - Bloomberg:
Saudi Arabia’s Public Investment Fund will invest $10 billion in Brazil and plans to use the country as a gateway to the rest of Latin America, the Brazilian government said.
The investment comes after talks between President Jair Bolsonaro and Crown Prince Mohammed Bin Salman, Brazilian Foreign Affairs Minister Ernesto Araujo told reporters in Riyadh on Tuesday.
Bolsonaro met Bin Salman at the Ritz-Carlton Hotel, where the sovereign fund is hosting an investment summit this week. The $320 billion fund is mandated with making the kingdom’s economy less dependent on oil.
Saudi Arabia’s Public Investment Fund will invest $10 billion in Brazil and plans to use the country as a gateway to the rest of Latin America, the Brazilian government said.
The investment comes after talks between President Jair Bolsonaro and Crown Prince Mohammed Bin Salman, Brazilian Foreign Affairs Minister Ernesto Araujo told reporters in Riyadh on Tuesday.
Bolsonaro met Bin Salman at the Ritz-Carlton Hotel, where the sovereign fund is hosting an investment summit this week. The $320 billion fund is mandated with making the kingdom’s economy less dependent on oil.
#Dubai Ports Operator’s U.K. Expansion on Hold Over Brexit - Bloomberg
Dubai Ports Operator’s U.K. Expansion on Hold Over Brexit - Bloomberg:
Dubai ports operator DP World Plc put its expansion plan in the U.K. on hold due to uncertainties over Brexit.
“I have a deal to expand, but on hold until they decide,” Chairman Sultan Ahmed Bin Sulayem said in an interview with Bloomberg TV in Riyadh. “Because today if you go to any bank to lend you money in the U.K., they don’t know are we going to be out or in.”
The U.K. voted to leave the European Union in 2016, yet remains trapped in a long-term relationship with the trading bloc as two prime ministers have found it difficult to have divorce deals approved by parliament.
Dubai ports operator DP World Plc put its expansion plan in the U.K. on hold due to uncertainties over Brexit.
“I have a deal to expand, but on hold until they decide,” Chairman Sultan Ahmed Bin Sulayem said in an interview with Bloomberg TV in Riyadh. “Because today if you go to any bank to lend you money in the U.K., they don’t know are we going to be out or in.”
The U.K. voted to leave the European Union in 2016, yet remains trapped in a long-term relationship with the trading bloc as two prime ministers have found it difficult to have divorce deals approved by parliament.
#Saudi regulator approves public offering of AlBilad Investment Company's fund | ZAWYA MENA Edition
Saudi regulator approves public offering of AlBilad Investment Company's fund | ZAWYA MENA Edition:
The Saudi Capital Market Authority (CMA) has announced the approval of public offering of "Ensan Endowment Fund", by AlBilad Investment Company, the regulator said in a statement.
However, CMA noted that the approval of the fund should never be considered as a recommendation to subscribe in the fund, as it only means that the legal requirements have been met, it added in the statement.
The Saudi Capital Market Authority (CMA) has announced the approval of public offering of "Ensan Endowment Fund", by AlBilad Investment Company, the regulator said in a statement.
However, CMA noted that the approval of the fund should never be considered as a recommendation to subscribe in the fund, as it only means that the legal requirements have been met, it added in the statement.
#UAE banks' investments hit $17.43bln in nine months | ZAWYA MENA Edition
UAE banks' investments hit $17.43bln in nine months | ZAWYA MENA Edition:
The investment portfolio of UAE-based banks amounted to AED64 billion in the first nine months of 2019, hitting a total record of AED397.3 billion by the end of September, according to figures revealed by the Central Bank of the United Arab Emirates.
The growth trajectory is driven by a 19.4 percent jump in banks' investments in securities from circa AED210.9 bn in December 2018 to AED248.6 bn by the end of this September.
Investing in shares grew likewise from AED10.1 bn to AED11.6 bn during the same period, with investments in held-to-maturity securities growing from AED81.2 bn to AED94.1 bn, while other investments amounted from AED30.6 bn to AED43 bn.
The investment portfolio of UAE-based banks amounted to AED64 billion in the first nine months of 2019, hitting a total record of AED397.3 billion by the end of September, according to figures revealed by the Central Bank of the United Arab Emirates.
The growth trajectory is driven by a 19.4 percent jump in banks' investments in securities from circa AED210.9 bn in December 2018 to AED248.6 bn by the end of this September.
Investing in shares grew likewise from AED10.1 bn to AED11.6 bn during the same period, with investments in held-to-maturity securities growing from AED81.2 bn to AED94.1 bn, while other investments amounted from AED30.6 bn to AED43 bn.
Oil slips as trade concerns outweigh drop in inventories - Reuters
Oil slips as trade concerns outweigh drop in inventories - Reuters:
Oil prices fell on Wednesday as a possible delay in resolving the U.S.-China trade war overshadowed a drop in U.S. crude inventories.
Brent crude was down 7 cents, or 0.1%, at $61.52 a barrel by 0735 GMT, having fallen to as low as $61.32.
U.S. West Texas Intermediate (WTI) crude was down 15 cents, or 0.3%, at $55.39 a barrel after reaching a low of $55.16.
U.S. crude inventories fell 708,000 barrels in the week ended Oct. 25 to 436 million, compared with analysts’ expectations for an increase of 494,000 barrels, according to data from the industry group, the American Petroleum Institute.
Oil prices fell on Wednesday as a possible delay in resolving the U.S.-China trade war overshadowed a drop in U.S. crude inventories.
Brent crude was down 7 cents, or 0.1%, at $61.52 a barrel by 0735 GMT, having fallen to as low as $61.32.
U.S. West Texas Intermediate (WTI) crude was down 15 cents, or 0.3%, at $55.39 a barrel after reaching a low of $55.16.
U.S. crude inventories fell 708,000 barrels in the week ended Oct. 25 to 436 million, compared with analysts’ expectations for an increase of 494,000 barrels, according to data from the industry group, the American Petroleum Institute.
#Saudi energy minister: Saudi Aramco's public offering 'soon'
Saudi energy minister: Saudi Aramco's public offering 'soon':
Saudi Arabia’s energy minister says a planned initial public offering of the state-run oil giant Saudi Aramco will happen “soon.”
Speaking before the Future Investment Initiative summit on Wednesday, Prince Abdulaziz bin Salman told those gathered in Riyadh that “the IPO will come soon.”
He also reference the kingdom’s powerful Crown Prince Mohammed bin Salman.
Prince Abdulaziz said: “It will come in the right time with the right approach and definitely with the right decision. And it will be a Saudi decision, first and foremost. Specifically, Prince Mohammed’s decision.”
Saudi Arabia’s energy minister says a planned initial public offering of the state-run oil giant Saudi Aramco will happen “soon.”
Speaking before the Future Investment Initiative summit on Wednesday, Prince Abdulaziz bin Salman told those gathered in Riyadh that “the IPO will come soon.”
He also reference the kingdom’s powerful Crown Prince Mohammed bin Salman.
Prince Abdulaziz said: “It will come in the right time with the right approach and definitely with the right decision. And it will be a Saudi decision, first and foremost. Specifically, Prince Mohammed’s decision.”
Tuesday, 29 October 2019
Oil mixed on forecast of falling U.S. fuel stockpiles - Reuters
Oil mixed on forecast of falling U.S. fuel stockpiles - Reuters:
Oil prices were mixed on Tuesday, paring earlier steep losses as investors focused on signs that U.S.-China trade tensions could ease next month and expectations that U.S. refined product stockpiles declined last week.
Brent crude LCOc1 settled at $61.59 a barrel, up 2 cents, after falling as low as $60.66. U.S. West Texas Intermediate CLc1 crude ended 27 cents lower at $55.54 a barrel, after earlier hitting a session low of $54.61.
U.S. refined product inventories were seen declining last week as refinery runs remained relatively low. Gasoline stocks likely fell 2.2 million barrels, which would their fifth weekly drawdown, while distillates which include diesel and heating oil, were seen falling for a sixth week in a row, forecast to have dropped by 2.4 million barrels, according to a Reuters poll.
Oil prices were mixed on Tuesday, paring earlier steep losses as investors focused on signs that U.S.-China trade tensions could ease next month and expectations that U.S. refined product stockpiles declined last week.
Brent crude LCOc1 settled at $61.59 a barrel, up 2 cents, after falling as low as $60.66. U.S. West Texas Intermediate CLc1 crude ended 27 cents lower at $55.54 a barrel, after earlier hitting a session low of $54.61.
U.S. refined product inventories were seen declining last week as refinery runs remained relatively low. Gasoline stocks likely fell 2.2 million barrels, which would their fifth weekly drawdown, while distillates which include diesel and heating oil, were seen falling for a sixth week in a row, forecast to have dropped by 2.4 million barrels, according to a Reuters poll.
Protect The Oil: Trump’s Top Priority In The Middle East | OilPrice.com
Protect The Oil: Trump’s Top Priority In The Middle East | OilPrice.com:
Saudi Arabia and the United States will work together to protect the world’s oil supply from threats, the energy ministers of the two countries said after a meeting in Riyadh.
The Saudi Press Agency reported that the two officials had also discussed the role of OPEC and non-OPEC producers in securing the world’s energy needs, as well as ways to strengthen economic ties between the United States and Saudi Arabia.
The issue of oil supply security in the Persian Gulf and Saudi Arabia specifically came to the fore last month, after drone and missile attacks on a Saudi oil field and a processing facility took close to 6 million bpd in production capacity off the market, leading to a price spike and worry about supply.
At the time, Saudi Arabia and the U.S. blamed the attacks on Iran, which rejected the accusations. The Houthi rebels took responsibility for the attacks. This led to an increase in regional tensions, fueling more concern about the security of oil supply in one of the biggest producing regions.
Saudi Arabia and the United States will work together to protect the world’s oil supply from threats, the energy ministers of the two countries said after a meeting in Riyadh.
The Saudi Press Agency reported that the two officials had also discussed the role of OPEC and non-OPEC producers in securing the world’s energy needs, as well as ways to strengthen economic ties between the United States and Saudi Arabia.
The issue of oil supply security in the Persian Gulf and Saudi Arabia specifically came to the fore last month, after drone and missile attacks on a Saudi oil field and a processing facility took close to 6 million bpd in production capacity off the market, leading to a price spike and worry about supply.
At the time, Saudi Arabia and the U.S. blamed the attacks on Iran, which rejected the accusations. The Houthi rebels took responsibility for the attacks. This led to an increase in regional tensions, fueling more concern about the security of oil supply in one of the biggest producing regions.
JPMorgan #Saudi Business Is Fastest-Growing Globally: FII Update - Bloomberg
JPMorgan Saudi Business Is Fastest-Growing Globally: FII Update - Bloomberg:
JPMorgan Chase & Co. said its business in Saudi Arabia is growing faster than any other region in the world, helped by the stock exchange’s inclusion in MSCI Inc.’s main emerging markets index.
“We at JPMorgan believe that Saudi will become the main hub in the region, as well as one of the main hubs globally,” Carlos Hernandez, head of global banking at the New York-based firm, said on the opening day of the Future Investment Initiative summit in Riyadh.
Global investment firms are clamoring to do business with the kingdom, where low oil prices have forced officials to tap international debt markets and seek foreign capital. Advisers hired for the imminent IPO of Saudi Aramco are set to split a fee pool of as much as $450 million, Bloomberg News has reported. JPMorgan is one of nine joint global coordinators on the deal.
JPMorgan Chase & Co. said its business in Saudi Arabia is growing faster than any other region in the world, helped by the stock exchange’s inclusion in MSCI Inc.’s main emerging markets index.
“We at JPMorgan believe that Saudi will become the main hub in the region, as well as one of the main hubs globally,” Carlos Hernandez, head of global banking at the New York-based firm, said on the opening day of the Future Investment Initiative summit in Riyadh.
Global investment firms are clamoring to do business with the kingdom, where low oil prices have forced officials to tap international debt markets and seek foreign capital. Advisers hired for the imminent IPO of Saudi Aramco are set to split a fee pool of as much as $450 million, Bloomberg News has reported. JPMorgan is one of nine joint global coordinators on the deal.
#SaudiArabia signs $15 bln in agreements at annual investment forum - statement - Reuters
Saudi Arabia signs $15 bln in agreements at annual investment forum - statement - Reuters:
Saudi Arabia has signed 23 agreements worth $15 billion dollars at its annual investment forum, Saudi Arabian General Investment Authority (SAGIA) said in a statement on Tuesday.
The Future Investment Initiative conference, which is now in its third year, aims to attract foreign investment into the kingdom.
Agreements include a $120 million investment deal between SAGIA and BRF Brazil Foods and a $700 million investment deal between SAGIA and Modular Middle East, both aimed at developing operations within Saudi Arabia, the statement said.
Saudi Arabia has signed 23 agreements worth $15 billion dollars at its annual investment forum, Saudi Arabian General Investment Authority (SAGIA) said in a statement on Tuesday.
The Future Investment Initiative conference, which is now in its third year, aims to attract foreign investment into the kingdom.
Agreements include a $120 million investment deal between SAGIA and BRF Brazil Foods and a $700 million investment deal between SAGIA and Modular Middle East, both aimed at developing operations within Saudi Arabia, the statement said.
#UAE cabinet approves largest budget ever recorded | ZAWYA MENA Edition
UAE cabinet approves largest budget ever recorded | ZAWYA MENA Edition:
The UAE cabinet has approved a zero-deficit federal budget of 61 billion dirhams ($16.61 billion) for the fiscal year 2020 on Tuesday.
Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE, and ruler of Dubai, said a third of the budget is allocated for social development, one third for government affairs and the rest to infrastructure, economic resources and living benefits. This is the largest budget ever recorded in the UAE.
"2020 will be the beginning of a new decade of development," he tweeted.
The UAE cabinet has approved a zero-deficit federal budget of 61 billion dirhams ($16.61 billion) for the fiscal year 2020 on Tuesday.
Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE, and ruler of Dubai, said a third of the budget is allocated for social development, one third for government affairs and the rest to infrastructure, economic resources and living benefits. This is the largest budget ever recorded in the UAE.
"2020 will be the beginning of a new decade of development," he tweeted.
#SaudiArabia's Red Sea project seeks loan in excess of 10 billion riyals: CEO - Reuters
Saudi Arabia's Red Sea project seeks loan in excess of 10 billion riyals: CEO - Reuters:
Red Sea Development Co, which is backed by Saudi Arabia’s sovereign fund PIF, is seeking a loan of more than 10 billion riyals ($2.67 billion) from four to five local banks to finance tourism projects, its chief executive John Pagano said.
Saudi Arabia plans to develop resorts on 50 islands off the Red Sea coast, offering a nature reserve, coral reef diving and heritage sites.
In an interview with Reuters on Tuesday, Pagano said the loan, which was the subject of discussions with capital markets, would fund the development of the business along with equity provided by PIF.
Red Sea Development Co, which is backed by Saudi Arabia’s sovereign fund PIF, is seeking a loan of more than 10 billion riyals ($2.67 billion) from four to five local banks to finance tourism projects, its chief executive John Pagano said.
Saudi Arabia plans to develop resorts on 50 islands off the Red Sea coast, offering a nature reserve, coral reef diving and heritage sites.
In an interview with Reuters on Tuesday, Pagano said the loan, which was the subject of discussions with capital markets, would fund the development of the business along with equity provided by PIF.
Finance royalty descend on #Saudi forum as Aramco listing looms - Reuters
Finance royalty descend on Saudi forum as Aramco listing looms - Reuters:
What a difference a year makes.
There was standing room only in the expansive halls of Riyadh’s Ritz-Carlton hotel on Tuesday as the world’s financial royalty attended Saudi Arabia’s Future Investment Initiative (FII) conference, aimed at courting global investors.
Saudi Arabia said it signed over two dozen investment deals worth $15 billion, mostly in the manufacturing sector, as the kingdom strives to show that Crown Prince Mohammed bin Salman’s diversification plan is on track after limited progress since the first FII forum 2017.
Last year’s event was overshadowed by the murder of Saudi journalist Jamal Khashoggi as dozens of Western leaders and executives boycotted the gathering.
What a difference a year makes.
There was standing room only in the expansive halls of Riyadh’s Ritz-Carlton hotel on Tuesday as the world’s financial royalty attended Saudi Arabia’s Future Investment Initiative (FII) conference, aimed at courting global investors.
Saudi Arabia said it signed over two dozen investment deals worth $15 billion, mostly in the manufacturing sector, as the kingdom strives to show that Crown Prince Mohammed bin Salman’s diversification plan is on track after limited progress since the first FII forum 2017.
Last year’s event was overshadowed by the murder of Saudi journalist Jamal Khashoggi as dozens of Western leaders and executives boycotted the gathering.
MIDEAST STOCKS- #Saudi shares extend losses, property stocks drag down #Dubai - Reuters
MIDEAST STOCKS-Saudi shares extend losses, property stocks drag down Dubai - Reuters:
Saudi Arabian shares fell sharply on
Tuesday as banks led the index lower, while markets in the
United Arab Emirates extended losses on back of financial and
real estate stocks.
In Saudi Arabia, the stock market index lost 1.2%,
falling for a third consecutive day. Al Rajhi Bank
dipped 1% and Riyad Bank was down 1.4%.
Saudi Ceramic dived 5.9%, despite swinging into a
quarterly net profit from a loss a year earlier.
Among other stocks, Saudi Cement Company declined
5.2%. On Monday the company reported third-quarter net profit of
83 million riyals, up from 75.4 million riyals a year earlier
but down about 10% from the second quarter.
Saudi Arabian shares fell sharply on
Tuesday as banks led the index lower, while markets in the
United Arab Emirates extended losses on back of financial and
real estate stocks.
In Saudi Arabia, the stock market index lost 1.2%,
falling for a third consecutive day. Al Rajhi Bank
dipped 1% and Riyad Bank was down 1.4%.
Saudi Ceramic dived 5.9%, despite swinging into a
quarterly net profit from a loss a year earlier.
Among other stocks, Saudi Cement Company declined
5.2%. On Monday the company reported third-quarter net profit of
83 million riyals, up from 75.4 million riyals a year earlier
but down about 10% from the second quarter.
Dalio Says Global Economy Faces ‘Scary Situation’: FII Update - Bloomberg
Dalio Says Global Economy Faces ‘Scary Situation’: FII Update - Bloomberg:
Central banks have run out of firepower to fight the next economic downturn, according to global finance chiefs gathered at an investment forum in Saudi Arabia on Tuesday.
Billionaire hedge-fund founder Ray Dalio went further, saying the global economy is under threat from an explosive mix of ineffective monetary policy, a rise in the wealth gap and climate change.
The combination will lead to a “scary situation” over the next decade, according to Dalio, whose investment management firm, Bridgewater Associates, is the world’s biggest hedge fund.
Central banks have run out of firepower to fight the next economic downturn, according to global finance chiefs gathered at an investment forum in Saudi Arabia on Tuesday.
Billionaire hedge-fund founder Ray Dalio went further, saying the global economy is under threat from an explosive mix of ineffective monetary policy, a rise in the wealth gap and climate change.
The combination will lead to a “scary situation” over the next decade, according to Dalio, whose investment management firm, Bridgewater Associates, is the world’s biggest hedge fund.
Saudis Are Ready to Do Deeper Oil Cuts, OPEC Minister Says - Bloomberg
Saudis Are Ready to Do Deeper Oil Cuts, OPEC Minister Says - Bloomberg:
Saudi Arabia’s Energy Minister Prince Abdulaziz said his country is ready to make deeper cuts in oil output than it agreed to with other global producers, according to Nigerian Minister of State for Petroleum Resources Timipre Sylva.
“He assured me that they are very ready to even cut deeper,” Sylva told Bloomberg TV in Riyadh. The OPEC minister said he and Prince Abdulaziz didn’t discuss new output levels when they spoke on Monday.
Saudi Arabia is leading the Organization of Petroleum Exporting Countries and other top producers like Russia into a collective production cut extending though the end of March. OPEC and its allies are due to meet in December to discuss whether steeper cuts to oil supply will be needed to shore up prices amid a surplus and signs of weaker demand.
Saudi Arabia’s Energy Minister Prince Abdulaziz said his country is ready to make deeper cuts in oil output than it agreed to with other global producers, according to Nigerian Minister of State for Petroleum Resources Timipre Sylva.
“He assured me that they are very ready to even cut deeper,” Sylva told Bloomberg TV in Riyadh. The OPEC minister said he and Prince Abdulaziz didn’t discuss new output levels when they spoke on Monday.
Saudi Arabia is leading the Organization of Petroleum Exporting Countries and other top producers like Russia into a collective production cut extending though the end of March. OPEC and its allies are due to meet in December to discuss whether steeper cuts to oil supply will be needed to shore up prices amid a surplus and signs of weaker demand.
Aramco Tells IPO Bankers It Made $68 Billion in First 9 Months - Bloomberg
Aramco Tells IPO Bankers It Made $68 Billion in First 9 Months - Bloomberg:
Saudi Aramco earned $68 billion in the first nine months of the year, cementing its position as the world’s most profitable oil company, according to people familiar with the figures.
The unaudited net figure was given to financial analysts working on the company’s initial public offering, the people said, asking not to be identified because the information isn’t public. Aramco has not released comparative numbers for last year and its media office declined to comment.
Aramco’s nine-month profit is a multiple of the annual earnings of Exxon Mobil Corp., the biggest publicly listed oil firm. The Saudi company earned $111 billion last year, making it the most profitable business on the planet. Crown Prince Mohammed Bin Salman is counting on that profit and the nation’s vast oil reserves to attract investors to the company’s IPO, which in turn will help fund his plan to overhaul the Saudi economy.
Saudi Aramco earned $68 billion in the first nine months of the year, cementing its position as the world’s most profitable oil company, according to people familiar with the figures.
The unaudited net figure was given to financial analysts working on the company’s initial public offering, the people said, asking not to be identified because the information isn’t public. Aramco has not released comparative numbers for last year and its media office declined to comment.
Aramco’s nine-month profit is a multiple of the annual earnings of Exxon Mobil Corp., the biggest publicly listed oil firm. The Saudi company earned $111 billion last year, making it the most profitable business on the planet. Crown Prince Mohammed Bin Salman is counting on that profit and the nation’s vast oil reserves to attract investors to the company’s IPO, which in turn will help fund his plan to overhaul the Saudi economy.
#Iran's thirsty energy industry runs up against water shortage - Reuters
Iran's thirsty energy industry runs up against water shortage - Reuters:
The plan to build a petrochemical plant near the Iranian city of Firouzabad had everything usually needed to get a project off the ground: approval from the nation’s top authority, funding from the Revolutionary Guards and plentiful gas feedstock.
But a decade on, work at the site is only 10% complete because of a row over an increasingly scarce resource in Iran that is vital to keep the facility cool: water.
“In early project studies, there were some mistakes about the amount of water the plant would need,” said Hamidreza Soleymannejad, one of the plant’s project managers. “They found the plant needs a lot of water, but the region could not provide that.”
The plan to build a petrochemical plant near the Iranian city of Firouzabad had everything usually needed to get a project off the ground: approval from the nation’s top authority, funding from the Revolutionary Guards and plentiful gas feedstock.
But a decade on, work at the site is only 10% complete because of a row over an increasingly scarce resource in Iran that is vital to keep the facility cool: water.
“In early project studies, there were some mistakes about the amount of water the plant would need,” said Hamidreza Soleymannejad, one of the plant’s project managers. “They found the plant needs a lot of water, but the region could not provide that.”
#Qatar's Masraf Al Rayan mandates banks to arrange fixed income investor meetings starting oct. 31 - leads - Reuters
Qatar's Masraf Al Rayan mandates banks to arrange fixed income investor meetings starting oct. 31 - leads - Reuters:
Qatar’s Masraf Al Rayan has mandated banks to arrange a series of fixed income investor meetings starting Oct. 31, a document issued by one of the banks appointed showed on Tuesday.
A U.S. dollar sukuk, or Islamic bond, of at least $500 million in size may follow, the document showed.
Qatar’s Masraf Al Rayan has mandated banks to arrange a series of fixed income investor meetings starting Oct. 31, a document issued by one of the banks appointed showed on Tuesday.
A U.S. dollar sukuk, or Islamic bond, of at least $500 million in size may follow, the document showed.
Report: #Saudi Aramco shares to start trading in December
Report: Saudi Aramco shares to start trading in December:
The long-planned initial public offering of a sliver of Saudi Arabia’s state-run oil giant Saudi Aramco will see shares traded on Riyadh’s stock exchange in December, a Saudi-owned satellite news channel reported Tuesday as the kingdom’s marquee investment forum got underway.
The report by Dubai-based Al-Arabiya offered a crackle of life to the Future Investment Initiative in the kingdom’s capital of Riyadh, an event created by Saudi Crown Prince Mohammed bin Salman. Initial panels at the forum offered a pessimistic look at a world as participants described the global economy as a teetering on a 1930s-level crisis.
Prince Mohammed, however, hopes for a very-optimistic $2 trillion valuation for Aramco, which produces 10 million barrels of crude oil a day and provides some 10% of global demand. That would raise $100 billion he needs for his ambitious redevelopment plans for Saudi Arabia.
The long-planned initial public offering of a sliver of Saudi Arabia’s state-run oil giant Saudi Aramco will see shares traded on Riyadh’s stock exchange in December, a Saudi-owned satellite news channel reported Tuesday as the kingdom’s marquee investment forum got underway.
The report by Dubai-based Al-Arabiya offered a crackle of life to the Future Investment Initiative in the kingdom’s capital of Riyadh, an event created by Saudi Crown Prince Mohammed bin Salman. Initial panels at the forum offered a pessimistic look at a world as participants described the global economy as a teetering on a 1930s-level crisis.
Prince Mohammed, however, hopes for a very-optimistic $2 trillion valuation for Aramco, which produces 10 million barrels of crude oil a day and provides some 10% of global demand. That would raise $100 billion he needs for his ambitious redevelopment plans for Saudi Arabia.
RPT-COLUMN-Hedge funds looking for the low in the oil market: Kemp - Reuters
RPT-COLUMN-Hedge funds looking for the low in the oil market: Kemp - Reuters:
Hedge funds showed signs of trying to pick the bottom in the oil market last week, with small-scale purchases emerging after the wave of heavy selling at the end of September and early October.
Hedge funds and other money managers were net buyers of 22 million barrels of petroleum futures and options in the week to Oct. 22, after selling 206 million barrels in the three weeks between Sept. 17 and Oct. 8.
Portfolio managers bought Brent (+5 million barrels), U.S. gasoline (+4 million), U.S. heating oil (+9 million) and European gasoil (+3 million) while the net position in WTI was unchanged.
The hedge fund community is still running a bearish position overall, with dynamic positioning, excluding passive longs, equivalent to 31 million barrels net short, but that was up from 53 million the week before.
Hedge funds showed signs of trying to pick the bottom in the oil market last week, with small-scale purchases emerging after the wave of heavy selling at the end of September and early October.
Hedge funds and other money managers were net buyers of 22 million barrels of petroleum futures and options in the week to Oct. 22, after selling 206 million barrels in the three weeks between Sept. 17 and Oct. 8.
Portfolio managers bought Brent (+5 million barrels), U.S. gasoline (+4 million), U.S. heating oil (+9 million) and European gasoil (+3 million) while the net position in WTI was unchanged.
The hedge fund community is still running a bearish position overall, with dynamic positioning, excluding passive longs, equivalent to 31 million barrels net short, but that was up from 53 million the week before.
India's Modi says #Saudi to invest in India's downstream oil, gas projects - Reuters
India's Modi says Saudi to invest in India's downstream oil, gas projects - Reuters:
Prime Minister Narendra Modi said on Tuesday Saudi Arabia will invest in downstream oil and gas projects in India as part of a strategic partnership between the two countries, a move that would also help the world’s top oil exporter find a stable outlet for its crude.
Modi, who is on a two-day visit to Riyadh to participate in an investor summit, will meet King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman later on Tuesday.
“From a purely buyer-seller relationship, we are now moving toward a closer strategic partnership that will include Saudi investments in downstream oil and gas projects,” Modi said in an interview to Arab News, according to a statement released by his office.
Prime Minister Narendra Modi said on Tuesday Saudi Arabia will invest in downstream oil and gas projects in India as part of a strategic partnership between the two countries, a move that would also help the world’s top oil exporter find a stable outlet for its crude.
Modi, who is on a two-day visit to Riyadh to participate in an investor summit, will meet King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman later on Tuesday.
“From a purely buyer-seller relationship, we are now moving toward a closer strategic partnership that will include Saudi investments in downstream oil and gas projects,” Modi said in an interview to Arab News, according to a statement released by his office.
#Dubai DFM's new Shariah index aims to drive ethical investments | ZAWYA MENA Edition
Dubai DFM's new Shariah index aims to drive ethical investments | ZAWYA MENA Edition:
To attract more Islamic investments, the Dubai Financial Market (DFM), has launched a Shariah Index - DFMSI, which provides market participants with a benchmark to measure the performance of Shariah-compliant listed securities.
DFM is the first Shariah-compliant exchange globally since 2007 and this new initiative adds to its efforts to align with Dubai's vision to become the capital of Islamic economies globally.
The initial market capitalisation of the Shariah Index has been set as per stock prices on 31 December 2009 with 1,000 points as the base point of the Index. It can be accessed via DFM's website and mobile apps.
To attract more Islamic investments, the Dubai Financial Market (DFM), has launched a Shariah Index - DFMSI, which provides market participants with a benchmark to measure the performance of Shariah-compliant listed securities.
DFM is the first Shariah-compliant exchange globally since 2007 and this new initiative adds to its efforts to align with Dubai's vision to become the capital of Islamic economies globally.
The initial market capitalisation of the Shariah Index has been set as per stock prices on 31 December 2009 with 1,000 points as the base point of the Index. It can be accessed via DFM's website and mobile apps.
#Saudi Aramco aims to begin planned IPO on Nov. 3: sources - Reuters
Saudi Aramco aims to begin planned IPO on Nov. 3: sources - Reuters:
Saudi Aramco aims to announce the start of its initial public offering (IPO) on Nov. 3, three people with direct knowledge of the matter told Reuters, after delaying the deal earlier this month to give advisers time to secure cornerstone investors.
The people also said Aramco’s chief executive officer, Amin Nasser, was not present at the conference on Tuesday as he was meeting investors abroad ahead of the offering.
Aramco is looking to float a 1% to 2% stake on the kingdom’s Tadawul market, in what would be one of the largest ever public offerings, worth upwards of $20 billion.
Aramco, in response to queries by Reuters, said on Tuesday the oil company “does not comment on rumour or speculation. The company continues to engage with the shareholders on IPO readiness activities. The company is ready and timing will depend on market conditions and be at a time of the shareholders’ choosing.”
Saudi Aramco aims to announce the start of its initial public offering (IPO) on Nov. 3, three people with direct knowledge of the matter told Reuters, after delaying the deal earlier this month to give advisers time to secure cornerstone investors.
The people also said Aramco’s chief executive officer, Amin Nasser, was not present at the conference on Tuesday as he was meeting investors abroad ahead of the offering.
Aramco is looking to float a 1% to 2% stake on the kingdom’s Tadawul market, in what would be one of the largest ever public offerings, worth upwards of $20 billion.
Aramco, in response to queries by Reuters, said on Tuesday the oil company “does not comment on rumour or speculation. The company continues to engage with the shareholders on IPO readiness activities. The company is ready and timing will depend on market conditions and be at a time of the shareholders’ choosing.”
MIDEAST STOCKS-Falls in bank shares keep #Saudi index under pressure | Nasdaq
MIDEAST STOCKS-Falls in bank shares keep Saudi index under pressure | Nasdaq:
Saudi Arabia's stock market fell sharply on Tuesday, extending losses for the third straight session with banking shares falling the most, while other major Gulf markets were little changed.
In Saudi Arabia, the stock market index .TASI dropped a further 1.6% with Al Rajhi Bank 1120.SE losing 2.2% and Banque Saudi Fransi 1050.SE decreasing 2.3%.
Saudi Cement Company 3030.SE declined 4.5%. On Monday the company had reported third-quarter net profit of 83 million riyals, up from 75.4 million riyals a year earlier but down about 10% from the second quarter.
But oil refiner PetroRabigh 2380.SE advanced 2.9% after reporting a more than 62% rise in its third-quarter net profit. The company attributed the increase to improved profit margins for refined products and an improvement in operational performance.
Saudi Arabia's stock market fell sharply on Tuesday, extending losses for the third straight session with banking shares falling the most, while other major Gulf markets were little changed.
In Saudi Arabia, the stock market index .TASI dropped a further 1.6% with Al Rajhi Bank 1120.SE losing 2.2% and Banque Saudi Fransi 1050.SE decreasing 2.3%.
Saudi Cement Company 3030.SE declined 4.5%. On Monday the company had reported third-quarter net profit of 83 million riyals, up from 75.4 million riyals a year earlier but down about 10% from the second quarter.
But oil refiner PetroRabigh 2380.SE advanced 2.9% after reporting a more than 62% rise in its third-quarter net profit. The company attributed the increase to improved profit margins for refined products and an improvement in operational performance.
Monday, 28 October 2019
Corbat to Fink: The Who’s Who of Finance Head to #SaudiArabia - Bloomberg
Corbat to Fink: The Who’s Who of Finance Head to Saudi Arabia - Bloomberg:
Global finance and business elites are descending on Riyadh this week for Saudi Arabia’s marquee investment summit after last year’s event was overshadowed by the murder of government critic Jamal Khashoggi.
Blackstone Group Inc. Chief Executive Officer Stephen Schwarzman and SoftBank Group Corp. founder Masayoshi Son are among scores of executives due to speak at the three-day Future Investment Initiative — an annual jamboree that showcases the kingdom’s ambitions, starting on Tuesday.
Wall Street A-listers such as Bank of America Corp.’s Chief Operating Officer Tom Montag and JPMorgan Chase & Co.’s global banking head Carlos Hernandez, who are working on Saudi Aramco’s on-off IPO, will also rub shoulders with the oil giant’s Chairman Yasir Al-Rumayyan. Speculation is swirling over when the much-anticipated deal will be announced.
Global finance and business elites are descending on Riyadh this week for Saudi Arabia’s marquee investment summit after last year’s event was overshadowed by the murder of government critic Jamal Khashoggi.
Blackstone Group Inc. Chief Executive Officer Stephen Schwarzman and SoftBank Group Corp. founder Masayoshi Son are among scores of executives due to speak at the three-day Future Investment Initiative — an annual jamboree that showcases the kingdom’s ambitions, starting on Tuesday.
Wall Street A-listers such as Bank of America Corp.’s Chief Operating Officer Tom Montag and JPMorgan Chase & Co.’s global banking head Carlos Hernandez, who are working on Saudi Aramco’s on-off IPO, will also rub shoulders with the oil giant’s Chairman Yasir Al-Rumayyan. Speculation is swirling over when the much-anticipated deal will be announced.
UPDATE 1-Jordan's Arab Bank Group 9-month net profit rises 4% - Reuters
UPDATE 1-Jordan's Arab Bank Group 9-month net profit rises 4% - Reuters:
Jordan’s largest lender, Arab Bank Group, said on Monday its January-September net profit rose 4% to $668.9 million, driven by growth in core banking income.
Arab Bank Group’s net interest income rose by 5% as a result of higher yields, while loans rose 3% to $26.1 billion as of the end of September.
Deposits rose 4% to $34.7 billion compared with the same period last year, the statement showed.
The bank, one of the Middle East’s major financial institutions and owner of 40 percent of Saudi Arabia’s Arab National Bank ANB, gave no third-quarter figures.
Jordan’s largest lender, Arab Bank Group, said on Monday its January-September net profit rose 4% to $668.9 million, driven by growth in core banking income.
Arab Bank Group’s net interest income rose by 5% as a result of higher yields, while loans rose 3% to $26.1 billion as of the end of September.
Deposits rose 4% to $34.7 billion compared with the same period last year, the statement showed.
The bank, one of the Middle East’s major financial institutions and owner of 40 percent of Saudi Arabia’s Arab National Bank ANB, gave no third-quarter figures.
Oil falls on weak Chinese data, forecasts for U.S. crude stocks build - Reuters
Oil falls on weak Chinese data, forecasts for U.S. crude stocks build - Reuters:
Oil prices fell on Monday after four days of gains as expectations U.S. crude stockpiles will rise and worries about weak Chinese industrial data offset hopes oil demand will increase if talks progress on a Sino-American trade deal.
Brent futures fell 45 cents, or 0.7%, to $61.57 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 85 cents, or 1.5%, to $55.81.
Earlier in the session, Brent and WTI both climbed to their highest levels in a month, hitting $62.34 and $56.92, respectively.
“The energy complex came out of the gate underperforming our expectations as it appears that another significant build in Cushing supply could be forthcoming,” Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois, said in a report.
Oil prices fell on Monday after four days of gains as expectations U.S. crude stockpiles will rise and worries about weak Chinese industrial data offset hopes oil demand will increase if talks progress on a Sino-American trade deal.
Brent futures fell 45 cents, or 0.7%, to $61.57 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 85 cents, or 1.5%, to $55.81.
Earlier in the session, Brent and WTI both climbed to their highest levels in a month, hitting $62.34 and $56.92, respectively.
“The energy complex came out of the gate underperforming our expectations as it appears that another significant build in Cushing supply could be forthcoming,” Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois, said in a report.
MIDEAST STOCKS- #Saudi drops as banks decline but COMI supports Egypt - Reuters
MIDEAST STOCKS-Saudi drops as banks decline but COMI supports Egypt - Reuters:
Most major Gulf stock markets fell on Monday, with Saudi
stocks leading the losses on the back of declines in financial shares, while
Commercial International Bank (COMI) aided Egypt's index.
In Saudi Arabia the index dropped 1.4%, with Al Rajhi Bank
losing 2.9% and National Commercial Bank diving 3.8%.
Zain Saudi extended losses from the previous session to end 3.4%
down. The telecoms operator on Thursday reported a third-quarter net profit of
121 million riyals ($32 million), up from 48 million a year earlier but down
nearly 7% from the second quarter.
Al Hammadi Company For Development And Investment fell 2.4% after
it reported a fall in third-quarter net profit.
Most major Gulf stock markets fell on Monday, with Saudi
stocks leading the losses on the back of declines in financial shares, while
Commercial International Bank (COMI) aided Egypt's index.
In Saudi Arabia the index dropped 1.4%, with Al Rajhi Bank
losing 2.9% and National Commercial Bank diving 3.8%.
Zain Saudi extended losses from the previous session to end 3.4%
down. The telecoms operator on Thursday reported a third-quarter net profit of
121 million riyals ($32 million), up from 48 million a year earlier but down
nearly 7% from the second quarter.
Al Hammadi Company For Development And Investment fell 2.4% after
it reported a fall in third-quarter net profit.
IMF Says Mideast Markets Twice as Sensitive to Global Risk as EM - Bloomberg
IMF Says Mideast Markets Twice as Sensitive to Global Risk as EM - Bloomberg:
Markets in the Middle East and Central Asia may have more to lose from a shift in global risk sentiment than other developing nations, according to an International Monetary Fund report highlighting the region’s increased reliance on hot money.
Capital inflows into the region have almost doubled over the last decade, as governments grappling with low oil prices rushed to bond markets to finance their budget and current-account deficits. Long-term foreign direct investment, on the other hand, has dropped almost by half.
While the funds provided some governments the means to plug deficits relatively cheaply, “lower government and corporate transparency” make them twice as sensitive to changes in risk appetite than inflows into other emerging markets, the IMF said.
Markets in the Middle East and Central Asia may have more to lose from a shift in global risk sentiment than other developing nations, according to an International Monetary Fund report highlighting the region’s increased reliance on hot money.
Capital inflows into the region have almost doubled over the last decade, as governments grappling with low oil prices rushed to bond markets to finance their budget and current-account deficits. Long-term foreign direct investment, on the other hand, has dropped almost by half.
While the funds provided some governments the means to plug deficits relatively cheaply, “lower government and corporate transparency” make them twice as sensitive to changes in risk appetite than inflows into other emerging markets, the IMF said.
#AbuDhabi Billionaire Considers IPO of Pharmaceuticals Business - Bloomberg
Abu Dhabi Billionaire Considers IPO of Pharmaceuticals Business - Bloomberg:
Abu Dhabi billionaire Bavaguthu Raghuram Shetty, the founder of two London-listed companies, is considering selling shares in his pharmaceuticals business.
"It makes sense to take it down this path where an IPO as an option is a good thing," said Binay Shetty, chief executive officer of BRS Ventures. Work on the potential share sale in Neopharma is at an initial stage, he said.
Shetty said the business could be listed in the next three years but that there was no decision on whether to return to London again. "We want to work on this for the next six months internally."
Shetty’s father founded London-traded NMC Health Plc and Finablr Plc, the payments processor that went public in May. Neopharma currently operates in about 50 markets, including Middle East, Africa and Asia.
Abu Dhabi billionaire Bavaguthu Raghuram Shetty, the founder of two London-listed companies, is considering selling shares in his pharmaceuticals business.
"It makes sense to take it down this path where an IPO as an option is a good thing," said Binay Shetty, chief executive officer of BRS Ventures. Work on the potential share sale in Neopharma is at an initial stage, he said.
Shetty said the business could be listed in the next three years but that there was no decision on whether to return to London again. "We want to work on this for the next six months internally."
Shetty’s father founded London-traded NMC Health Plc and Finablr Plc, the payments processor that went public in May. Neopharma currently operates in about 50 markets, including Middle East, Africa and Asia.
#Dubai's Biggest Bank Hires StanChart's Patrick Sullivan as CFO - Bloomberg
Dubai's Biggest Bank Hires StanChart's Patrick Sullivan as CFO - Bloomberg:
Dubai’s biggest bank hired Patrick Sullivan from Standard Chartered Plc as its group chief financial officer.
Sullivan will assume the role from January 1, replacing Surya Subramanian who will leave Emirates NBD PJSC after about nine years.
Sullivan is group financial controller at Standard Chartered, according to a spokesman for the Dubai-based bank.
Subramanian, also a former Standard Chartered banker, will return to Singapore to pursue family interests, Emirates NBD said in April.
Dubai’s biggest bank hired Patrick Sullivan from Standard Chartered Plc as its group chief financial officer.
Sullivan will assume the role from January 1, replacing Surya Subramanian who will leave Emirates NBD PJSC after about nine years.
Sullivan is group financial controller at Standard Chartered, according to a spokesman for the Dubai-based bank.
Subramanian, also a former Standard Chartered banker, will return to Singapore to pursue family interests, Emirates NBD said in April.
IMF slashes growth outlook in GCC states over oil production cuts | ZAWYA MENA Edition
IMF slashes growth outlook in GCC states over oil production cuts | ZAWYA MENA Edition:
Growth in Gulf Cooperation Council (GCC) countries is projected to decelerate to 0.7 percent in 2019 from 2 percent in 2018, due to oil production cuts in line with OPEC+ agreements, according to the International Monetary Fund (IMF).
In April, IMF had forecast 2.1 per cent growth in 2019.
However, growth in 2020 is expected to rebound to 2.5 percent, driven by a recovery in real oil GDP growth of 1.9 percent (compared to –1.4 percent in 2019 and 2.5 percent in 2018), the IMF said in its October 2019 Regional Economic Outlook (REO) report for the Middle East, North Africa, Afghanistan and Pakistan (MENAP), launched in Dubai on Monday.
The report said the recovery in 2020 reflects a mix of rising oil production in Kuwait and Saudi Arabia, the Jizan refinery becoming fully operational (Saudi Arabia), and a pickup in gas output in Oman and Qatar. However, there is uncertainty on whether the OPEC+ agreement will expire by March 2020.
Growth in Gulf Cooperation Council (GCC) countries is projected to decelerate to 0.7 percent in 2019 from 2 percent in 2018, due to oil production cuts in line with OPEC+ agreements, according to the International Monetary Fund (IMF).
In April, IMF had forecast 2.1 per cent growth in 2019.
However, growth in 2020 is expected to rebound to 2.5 percent, driven by a recovery in real oil GDP growth of 1.9 percent (compared to –1.4 percent in 2019 and 2.5 percent in 2018), the IMF said in its October 2019 Regional Economic Outlook (REO) report for the Middle East, North Africa, Afghanistan and Pakistan (MENAP), launched in Dubai on Monday.
The report said the recovery in 2020 reflects a mix of rising oil production in Kuwait and Saudi Arabia, the Jizan refinery becoming fully operational (Saudi Arabia), and a pickup in gas output in Oman and Qatar. However, there is uncertainty on whether the OPEC+ agreement will expire by March 2020.
UPDATE 1- #Dubai's Emirates NBD third-quarter profit surges 89% - Reuters
UPDATE 1-Dubai's Emirates NBD third-quarter profit surges 89% - Reuters:
Dubai’s largest lender Emirates NBD said on Monday its third-quarter profit almost doubled after the bank reported a gain of 4.4 billion dirhams ($1.2 billion) from the initial public offering of Network International.
Dubai-based Network International is the largest payments processor in the Middle East and Africa, and is jointly owned by Emirates NBD and private equity firms Warburg Pincus and General Atlantic.
Emirates NBD’s profit attributable to shareholders rose to 5 billion dirhams in the three months ended Sept. 30, the lender said in an earnings statement, compared with 2.64 billion dirhams in the corresponding period of 2018.
Dubai’s largest lender Emirates NBD said on Monday its third-quarter profit almost doubled after the bank reported a gain of 4.4 billion dirhams ($1.2 billion) from the initial public offering of Network International.
Dubai-based Network International is the largest payments processor in the Middle East and Africa, and is jointly owned by Emirates NBD and private equity firms Warburg Pincus and General Atlantic.
Emirates NBD’s profit attributable to shareholders rose to 5 billion dirhams in the three months ended Sept. 30, the lender said in an earnings statement, compared with 2.64 billion dirhams in the corresponding period of 2018.
Oil falls on weak Chinese industrial data - Reuters
Oil falls on weak Chinese industrial data - Reuters:
Oil prices fell on Monday after strong gains last week, as data released in China reinforced signs that its economy is slowing, though progress in China-U.S. trade talks has supported prices.
Brent crude was down 32 cents, or 0.5%, at $61.70 a barrel by 0933 GMT, having gained more than 4% last week, its best weekly gain since Sept. 20.
West Texas Intermediate (WTI) crude was down 33 cents, or 0.6%, at $56.33 a barrel, after rising more than 5% last week, also the biggest weekly increase since Sept. 20.
Profits at Chinese industrial companies fell for the second straight month in September as producer prices continued their slide, highlighting the impact of a slowing economy and protracted U.S. trade war on corporate balance sheets.
Oil prices fell on Monday after strong gains last week, as data released in China reinforced signs that its economy is slowing, though progress in China-U.S. trade talks has supported prices.
Brent crude was down 32 cents, or 0.5%, at $61.70 a barrel by 0933 GMT, having gained more than 4% last week, its best weekly gain since Sept. 20.
West Texas Intermediate (WTI) crude was down 33 cents, or 0.6%, at $56.33 a barrel, after rising more than 5% last week, also the biggest weekly increase since Sept. 20.
Profits at Chinese industrial companies fell for the second straight month in September as producer prices continued their slide, highlighting the impact of a slowing economy and protracted U.S. trade war on corporate balance sheets.
MIDEAST STOCKS-Emirates NBD lifts #Dubai; Saudis extend losses - Reuters
MIDEAST STOCKS-Emiartes NBD lifts Dubai; Saudis extend losses - Reuters:
Saudi stocks fell for a second day on Monday as banking shares fell, while Dubai was bolstered by Emirates NBD following strong third-quarter profit.
In Saudi Arabia, the index was down 0.3%. Al Rajhi Bank shed 0.7% and Alinma Bank dropped 1.5%.
Zain Saudi fell 2.6%. On Thursday, the telecoms operator reported a third-quarter net profit of 121 million riyals, up from 48 million riyals a year earlier but down nearly 7% from the second quarter.
Saudi stocks fell for a second day on Monday as banking shares fell, while Dubai was bolstered by Emirates NBD following strong third-quarter profit.
In Saudi Arabia, the index was down 0.3%. Al Rajhi Bank shed 0.7% and Alinma Bank dropped 1.5%.
Zain Saudi fell 2.6%. On Thursday, the telecoms operator reported a third-quarter net profit of 121 million riyals, up from 48 million riyals a year earlier but down nearly 7% from the second quarter.
Sunday, 27 October 2019
#SaudiArabia's BinDawood Said to Pick JPMorgan, Goldman for IPO - Bloomberg
Saudi Arabia's BinDawood Said to Pick JPMorgan, Goldman for IPO - Bloomberg:
Saudi Arabia’s BinDawood Group is working with Goldman Sachs Group Inc. and JPMorgan Chase & Co. to sell shares of its supermarket business as early as next year, according to people with knowledge of the matter.
The company also picked GIB Capital for the deal, which could value the business at more than 7 billion riyals ($1.87 billion), the people said, asking not to be identified as the information is private. Moelis & Co. is working as the financial adviser.
The group started preparations earlier this year to list the company that operates the BinDawood and Danube supermarkets and hypermarkets, Bloomberg News reported. The deal would allow Investcorp Bank BSC to exit its minority stake in the retailer, marking the buyout firm’s third exit from Saudi investments via an IPO in five years.
Saudi Arabia’s BinDawood Group is working with Goldman Sachs Group Inc. and JPMorgan Chase & Co. to sell shares of its supermarket business as early as next year, according to people with knowledge of the matter.
The company also picked GIB Capital for the deal, which could value the business at more than 7 billion riyals ($1.87 billion), the people said, asking not to be identified as the information is private. Moelis & Co. is working as the financial adviser.
The group started preparations earlier this year to list the company that operates the BinDawood and Danube supermarkets and hypermarkets, Bloomberg News reported. The deal would allow Investcorp Bank BSC to exit its minority stake in the retailer, marking the buyout firm’s third exit from Saudi investments via an IPO in five years.
Gulf’s Holdout on Rates Is About to Jump on Fed Easing Bandwagon - Bloomberg
Gulf’s Holdout on Rates Is About to Jump on Fed Easing Bandwagon - Bloomberg:
The only Gulf Arab central bank with an unpredictable monetary policy might finally fall in line this week.
In a region where most countries usually track the Federal Reserve to protect their currencies’ pegs to the dollar, Kuwait split from the likes of Saudi Arabia and the United Arab Emirates, standing pat when U.S. interest rates were lowered in July and September. But now that the Fed is widely expected to deliver another cut, Kuwait is likely to pull the trigger too, even as inflation accelerates.
As pressure builds on funding costs at Kuwaiti banks and with this year’s economic growth forecast at just above zero, the probability of its first monetary easing since 2012 is “very high,” according to Raghu Mandagolathur, head of research at Kuwait Financial Centre SAK. Unlike its neighbors’ pegs to the dollar, Kuwait controls the value of its dinar against an undisclosed basket of currencies, meaning it has more flexibility in setting rates.
The only Gulf Arab central bank with an unpredictable monetary policy might finally fall in line this week.
In a region where most countries usually track the Federal Reserve to protect their currencies’ pegs to the dollar, Kuwait split from the likes of Saudi Arabia and the United Arab Emirates, standing pat when U.S. interest rates were lowered in July and September. But now that the Fed is widely expected to deliver another cut, Kuwait is likely to pull the trigger too, even as inflation accelerates.
As pressure builds on funding costs at Kuwaiti banks and with this year’s economic growth forecast at just above zero, the probability of its first monetary easing since 2012 is “very high,” according to Raghu Mandagolathur, head of research at Kuwait Financial Centre SAK. Unlike its neighbors’ pegs to the dollar, Kuwait controls the value of its dinar against an undisclosed basket of currencies, meaning it has more flexibility in setting rates.
Industries #Qatar reports 47% fall in nine-month net profit - Reuters
Industries Qatar reports 47% fall in nine-month net profit - Reuters:
Industries Qatar on Sunday reported a 47% fall in nine-month net profit to 2 billion Qatar riyals ($549.22 million) citing lower sales and prices.
The company said in a statement it had been hurt by a global slowdown, the global trade row and volatile commodity prices as well as planned and unplanned maintenance.
The Middle East’s second-biggest petrochemicals company by market value said its earnings per share fell to 0.34 riyals from 0.63 riyals a year earlier.
Industries Qatar on Sunday reported a 47% fall in nine-month net profit to 2 billion Qatar riyals ($549.22 million) citing lower sales and prices.
The company said in a statement it had been hurt by a global slowdown, the global trade row and volatile commodity prices as well as planned and unplanned maintenance.
The Middle East’s second-biggest petrochemicals company by market value said its earnings per share fell to 0.34 riyals from 0.63 riyals a year earlier.
UPDATE 1- #AbuDhabi Commercial Bank Q3 profit falls 13%, to exit Kuwait, Qatar - Reuters
UPDATE 1-Abu Dhabi Commercial Bank Q3 profit falls 13%, to exit Kuwait, Qatar - Reuters:
Abu Dhabi Commercial Bank on Sunday reported a 13% drop in third quarter profit thanks to lower interest income, and said it would quit foreign operations to focus on its home market.
The bank said it was on track to exit its operations in India after selling most of its banking portfolio there to DCB Bank and had also begun to withdraw from Qatar and Kuwait.
ADCB reported a net profit of 1.41 billion dirhams ($383.93 million) in the three months ending Sept. 30, down from 1.62 billion dirhams during the same period last year, it said in a statement.
Abu Dhabi Commercial Bank on Sunday reported a 13% drop in third quarter profit thanks to lower interest income, and said it would quit foreign operations to focus on its home market.
The bank said it was on track to exit its operations in India after selling most of its banking portfolio there to DCB Bank and had also begun to withdraw from Qatar and Kuwait.
ADCB reported a net profit of 1.41 billion dirhams ($383.93 million) in the three months ending Sept. 30, down from 1.62 billion dirhams during the same period last year, it said in a statement.
Air Products, ACWA, Aramco JV raising debt to fund purchase of assets - Reuters
Air Products, ACWA, Aramco JV raising debt to fund purchase of assets - Reuters:
A joint venture between U.S.-based Air Products (APD.N), Saudi Arabia’s ACWA Power and Saudi Aramco (IPO-ARMO.SE) is raising debt to help finance the purchase of assets worth $11.5 billion by the end of the year, an ACWA Power spokeswoman told Reuters.
The joint venture is in advanced stages of talks with lenders, the spokeswoman said.
The companies had signed an agreement for a gasification/power joint venture in August 2018, to serve Aramco’s Jazan Refinery and terminal.
A joint venture between U.S.-based Air Products (APD.N), Saudi Arabia’s ACWA Power and Saudi Aramco (IPO-ARMO.SE) is raising debt to help finance the purchase of assets worth $11.5 billion by the end of the year, an ACWA Power spokeswoman told Reuters.
The joint venture is in advanced stages of talks with lenders, the spokeswoman said.
The companies had signed an agreement for a gasification/power joint venture in August 2018, to serve Aramco’s Jazan Refinery and terminal.
MIDEAST STOCKS- #Saudi dips on weak earnings; property shares aid Egypt - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi dips on weak earnings; property shares aid Egypt - Agricultural Commodities - Reuters:
Gulf stock markets mostly slipped on
Sunday, following a series of disappointing corporate results in
Saudi Arabia, while Egypt edged up on property shares.
In Saudi Arabia, the benchmark index slipped 0.3%,
snapping a three-day winning streak, as Saudi Basic Industries
(SABIC) fell 1.2% following an 86% plunge in
third-quarter net profit.
The world's fourth-biggest petrochemicals firm recorded a
1.5 billion riyal ($400 million) impairment provision related to
its stake in Switzerland's Clariant AG.
Zain Saudi slid 3.5%, its biggest intraday fall
since August. On Thursday, the telecommunications operator
reported a third-quarter net profit of 121 million riyals, up
from 48 million riyals a year earlier but down nearly 7% from
the second quarter.
Gulf stock markets mostly slipped on
Sunday, following a series of disappointing corporate results in
Saudi Arabia, while Egypt edged up on property shares.
In Saudi Arabia, the benchmark index slipped 0.3%,
snapping a three-day winning streak, as Saudi Basic Industries
(SABIC) fell 1.2% following an 86% plunge in
third-quarter net profit.
The world's fourth-biggest petrochemicals firm recorded a
1.5 billion riyal ($400 million) impairment provision related to
its stake in Switzerland's Clariant AG.
Zain Saudi slid 3.5%, its biggest intraday fall
since August. On Thursday, the telecommunications operator
reported a third-quarter net profit of 121 million riyals, up
from 48 million riyals a year earlier but down nearly 7% from
the second quarter.
Russia's Oil Supply Is Vulnerable - Bloomberg
Russia's Oil Supply Is Vulnerable - Bloomberg:
It’s just been six months since the biggest crisis for Russian oil distribution in living history, and the leader of the country’s largest oil company is already flinging mud in the direction of the world’s other two giant oil producers, Saudi Arabia and the U.S.
On Thursday, speaking at the Verona Forum, Igor Sechin, chief executive officer of state controlled Rosneft PJSC, which produces more than a third of Russia’s crude, said it was time to “reassess Saudi Arabia’s role as the unconditionally reliable oil supplier” in light of last month’s drone attack on Saudi oil infrastructure. Then he turned his sights on President Donald Trump’s decision to pull the U.S. out of the Iran nuclear deal, saying it was “a serious blow to security of supplies from the Middle East.”
He also questioned how long America’s shale boom would last, suggesting that the long-term potential is unclear, especially without more in-depth study of the resource base underpinning the industry there.
It’s just been six months since the biggest crisis for Russian oil distribution in living history, and the leader of the country’s largest oil company is already flinging mud in the direction of the world’s other two giant oil producers, Saudi Arabia and the U.S.
On Thursday, speaking at the Verona Forum, Igor Sechin, chief executive officer of state controlled Rosneft PJSC, which produces more than a third of Russia’s crude, said it was time to “reassess Saudi Arabia’s role as the unconditionally reliable oil supplier” in light of last month’s drone attack on Saudi oil infrastructure. Then he turned his sights on President Donald Trump’s decision to pull the U.S. out of the Iran nuclear deal, saying it was “a serious blow to security of supplies from the Middle East.”
He also questioned how long America’s shale boom would last, suggesting that the long-term potential is unclear, especially without more in-depth study of the resource base underpinning the industry there.
World ‘Awash’ in Oil As U.S. Sees Its Shale Boom Barreling Ahead - Bloomberg
World ‘Awash’ in Oil As U.S. Sees Its Shale Boom Barreling Ahead - Bloomberg:
Global markets are “awash” in crude thanks to the surge in U.S. oil output, and the boom looks set to continue, U.S. Energy Secretary Rick Perry said in a Bloomberg TV interview.
U.S. shale production has turned the world “on its head,” and Goldman Sachs Group Inc. is “off a bit” in a report last week saying that the bonanza is fading, Perry said on Sunday in Dubai.
Oil and natural gas from American shale fields have made the U.S. one of the world’s largest producers and enabled it to become a net energy exporter. Perry will travel in the coming week to Saudi Arabia to discuss possible sales of U.S. liquefied natural gas and Saudi efforts to develop a nuclear power program. Perry held talks in the United Arab Emirates and visited the country’s largest solar-power facility at a site near the U.A.E.’s commercial hub of Dubai.
Global markets are “awash” in crude thanks to the surge in U.S. oil output, and the boom looks set to continue, U.S. Energy Secretary Rick Perry said in a Bloomberg TV interview.
U.S. shale production has turned the world “on its head,” and Goldman Sachs Group Inc. is “off a bit” in a report last week saying that the bonanza is fading, Perry said on Sunday in Dubai.
Oil and natural gas from American shale fields have made the U.S. one of the world’s largest producers and enabled it to become a net energy exporter. Perry will travel in the coming week to Saudi Arabia to discuss possible sales of U.S. liquefied natural gas and Saudi efforts to develop a nuclear power program. Perry held talks in the United Arab Emirates and visited the country’s largest solar-power facility at a site near the U.A.E.’s commercial hub of Dubai.
#Dubai Faces a ‘Disaster’ From Overbuilding, Top Developer Says - Bloomberg
Dubai Faces a ‘Disaster’ From Overbuilding, Top Developer Says - Bloomberg:
Dubai needs to halt all new home construction for one or two years to avert an economic disaster brought on by continued oversupply, according to one of its biggest builders.
“We’re entering a crossroads now,” Damac Properties PJSC Chairman Hussain Sajwani said in a Bloomberg interview.
“Either we fix this problem and we can grow from here or we are going to see a disaster.”
Hussain Sajwani
Damac’s chairman is the latest executive to call for curbs on construction in a market that’s been on a downward trajectory since it peaked five years ago. The slump has defied all predictions of a rebound as house prices fell around 30%. About 30,000 new homes will be built this year, twice the demand in the Gulf city, property broker JLL estimates.
Dubai needs to halt all new home construction for one or two years to avert an economic disaster brought on by continued oversupply, according to one of its biggest builders.
“We’re entering a crossroads now,” Damac Properties PJSC Chairman Hussain Sajwani said in a Bloomberg interview.
“Either we fix this problem and we can grow from here or we are going to see a disaster.”
Hussain Sajwani
Damac’s chairman is the latest executive to call for curbs on construction in a market that’s been on a downward trajectory since it peaked five years ago. The slump has defied all predictions of a rebound as house prices fell around 30%. About 30,000 new homes will be built this year, twice the demand in the Gulf city, property broker JLL estimates.
#Saudi SABIC records $400 mln impairment loss on Clariant, Q3 drops - Reuters
Saudi SABIC records $400 mln impairment loss on Clariant, Q3 drops - Reuters:
Saudi Basic Industries Corp. (SABIC) took an impairment loss of 1.5 billion riyals ($400 million) on its investment in Swiss chemicals firm Clariant , which resulted in an 86% drop in its third-quarter net profit.
SABIC posted a net profit of 830 million riyals in the quarter ending September 30, down from 6.1 billion riyals in the same quarter a year earlier.
“The decrease in net income is attributable to lower average selling prices in addition to recording (Saudi riyal) 1.5 billion impairment provision in the investment in (Clariant AG),” it said in a statement.
Saudi Basic Industries Corp. (SABIC) took an impairment loss of 1.5 billion riyals ($400 million) on its investment in Swiss chemicals firm Clariant , which resulted in an 86% drop in its third-quarter net profit.
SABIC posted a net profit of 830 million riyals in the quarter ending September 30, down from 6.1 billion riyals in the same quarter a year earlier.
“The decrease in net income is attributable to lower average selling prices in addition to recording (Saudi riyal) 1.5 billion impairment provision in the investment in (Clariant AG),” it said in a statement.
S&P affirms #Sharjah's rating; outlook stable | ZAWYA MENA Edition
S&P affirms Sharjah's rating; outlook stable | ZAWYA MENA Edition:
S&P Global Ratings affirmed its ‘BBB+/A-2’ long- and short-term foreign and local currency sovereign credit ratings for the Emirate of Sharjah, with a stable outlook.
Sharjah’s economy is expected to expand steadily by about 2 percent from 2019 to 2022, with moderate debt and interest burdens, S&P said in its research report.
S&P could raise the emirate’s rating in the next two years if net general government debt or debt-service costs decreased materially, however views this as unlikely over the next two years.
S&P Global Ratings affirmed its ‘BBB+/A-2’ long- and short-term foreign and local currency sovereign credit ratings for the Emirate of Sharjah, with a stable outlook.
Sharjah’s economy is expected to expand steadily by about 2 percent from 2019 to 2022, with moderate debt and interest burdens, S&P said in its research report.
S&P could raise the emirate’s rating in the next two years if net general government debt or debt-service costs decreased materially, however views this as unlikely over the next two years.
Industries #Qatar reports 47% fall in nine-month net profit - Reuters
Industries Qatar reports 47% fall in nine-month net profit - Reuters:
Industries Qatar on Sunday reported a 47% fall in nine-month net profit to 2 billion Qatar riyals ($549.22 million) citing lower sales and prices.
The company said in a statement it had been hurt by a global slowdown, the global trade row and volatile commodity prices as well as planned and unplanned maintenance.
The Middle East’s second-biggest petrochemicals company by market value said its earnings per share fell to 0.34 riyals from 0.63 riyals a year earlier.
Industries Qatar on Sunday reported a 47% fall in nine-month net profit to 2 billion Qatar riyals ($549.22 million) citing lower sales and prices.
The company said in a statement it had been hurt by a global slowdown, the global trade row and volatile commodity prices as well as planned and unplanned maintenance.
The Middle East’s second-biggest petrochemicals company by market value said its earnings per share fell to 0.34 riyals from 0.63 riyals a year earlier.
#Qatar Airways, JAL among suitors for Malaysia Airlines: media - Reuters
Qatar Airways, JAL among suitors for Malaysia Airlines: media - Reuters:
Three international carriers have put in bids to buy a strategic stake in the ailing Malaysian carrier, Malaysia Airlines, according to a report published on Saturday by business weekly The Edge Malaysia.
Malaysia’s government said on Tuesday that sovereign fund Khazanah Nasional Bhd, which owns Malaysia Airlines, has shortlisted four potential investors for the deal, after having invited initial proposals from a field of 20.
Of the four short-listed, three of them are airlines - Qatar Airways, Japan Airlines Co Ltd (9201.T) and China Southern Airlines (600029.SS) - The Edge reported citing sources.
However, a Qatar Airways spokesman told Reuters in a brief text message that the airline was not among the bidders shortlisted.
Three international carriers have put in bids to buy a strategic stake in the ailing Malaysian carrier, Malaysia Airlines, according to a report published on Saturday by business weekly The Edge Malaysia.
Malaysia’s government said on Tuesday that sovereign fund Khazanah Nasional Bhd, which owns Malaysia Airlines, has shortlisted four potential investors for the deal, after having invited initial proposals from a field of 20.
Of the four short-listed, three of them are airlines - Qatar Airways, Japan Airlines Co Ltd (9201.T) and China Southern Airlines (600029.SS) - The Edge reported citing sources.
However, a Qatar Airways spokesman told Reuters in a brief text message that the airline was not among the bidders shortlisted.
Mideast Stocks Trade Mixed With Earnings in Focus: Inside EM - Bloomberg
Mideast Stocks Trade Mixed With Earnings in Focus: Inside EM - Bloomberg:
Equity markets in the Middle East were mixed as investors followed closely earnings results for some of the biggest companies in the region.
The main index in Doha led losses as Industries Qatar QSC declined on the back of a 47% drop in net profit for the nine months ended in September. The Qatari gauge headed for the sixth decline in seven sessions.
In Riyadh, giant petrochemicals producer Saudi Basic Industries Corp. fell as much as 2.4% after posting the worst quarterly profit in ten years. The company cited lower average selling prices and a 1.5 billion riyal impairment provision for its investment in Clariant AG for the poor results.
Equity markets in the Middle East were mixed as investors followed closely earnings results for some of the biggest companies in the region.
The main index in Doha led losses as Industries Qatar QSC declined on the back of a 47% drop in net profit for the nine months ended in September. The Qatari gauge headed for the sixth decline in seven sessions.
In Riyadh, giant petrochemicals producer Saudi Basic Industries Corp. fell as much as 2.4% after posting the worst quarterly profit in ten years. The company cited lower average selling prices and a 1.5 billion riyal impairment provision for its investment in Clariant AG for the poor results.
MIDEAST STOCKS-Most Gulf markets fall, weak earnings hit #Saudi - Reuters
MIDEAST STOCKS-Most Gulf markets fall, weak earnings hit Saudi - Reuters:
Saudi Arabia’s stock market fell on Sunday, ending a three-day winning streak weighed down by lacklustre corporate earnings, while other Gulf markets were mixed.
In Saudi Arabia, the benchmark index was down 0.2%. Saudi Basic Industries fell 1% after it posted an 86% fall in third-quarter net profit.
The firm recorded a 1.5 billion riyal impairment provision related to its stake in Switzerland’s Clariant AG.
Saudi Arabia’s stock market fell on Sunday, ending a three-day winning streak weighed down by lacklustre corporate earnings, while other Gulf markets were mixed.
In Saudi Arabia, the benchmark index was down 0.2%. Saudi Basic Industries fell 1% after it posted an 86% fall in third-quarter net profit.
The firm recorded a 1.5 billion riyal impairment provision related to its stake in Switzerland’s Clariant AG.
Saturday, 26 October 2019
#SaudiArabia Isn’t Rushing to Bail Out Beirut. The Reason Is Iran - Bloomberg
Saudi Arabia Isn’t Rushing to Bail Out Beirut. The Reason Is Iran - Bloomberg:
This week’s bulletin from the Saudi government congratulated the new Japanese emperor, condemned a truck bombing in Afghanistan and noted discussions with Brazil over intellectual property rights.
Conspicuous by its absence was a country where Saudi Arabia has wielded influence for decades and where protests against the political establishment have turned into the stirrings of another Middle East revolution.
The official silence in the Arab world over the unrest that’s rocked Lebanon for more than a week could have come from Napoleon’s playbook of not interfering when your enemy is in the process of destroying itself. Demonstrators in Beirut and other Lebanese regions have united against a regime dominated by Hezbollah, a proxy of Iran that Saudi Arabia and other Gulf countries label as terrorist and have long tried to undermine.
This week’s bulletin from the Saudi government congratulated the new Japanese emperor, condemned a truck bombing in Afghanistan and noted discussions with Brazil over intellectual property rights.
Conspicuous by its absence was a country where Saudi Arabia has wielded influence for decades and where protests against the political establishment have turned into the stirrings of another Middle East revolution.
The official silence in the Arab world over the unrest that’s rocked Lebanon for more than a week could have come from Napoleon’s playbook of not interfering when your enemy is in the process of destroying itself. Demonstrators in Beirut and other Lebanese regions have united against a regime dominated by Hezbollah, a proxy of Iran that Saudi Arabia and other Gulf countries label as terrorist and have long tried to undermine.
Friday, 25 October 2019
REFILE-Swiss president to lead financial delegation to Gulf - Reuters
REFILE-Swiss president to lead financial delegation to Gulf - Reuters:
Swiss President Ueli Maurer will lead a delegation from the country’s financial sector to visit Saudi Arabia and the United Arab Emirates for talks on strengthening business ties, the government in Bern said on Friday.
Maurer will be received by heads of state in Abu Dhabi, Dubai and Riyadh during the trip from Oct. 26 to 29, the finance ministry that he heads said.
The chief executives of Citigroup and Credit Suisse , as well as the heads of fund managers BlackRock and BlackStone will be among those gathering in Riyadh for a glitzy investment conference next week, an event not attended by top financiers last year after the murder of Saudi journalist Jamal Khashoggi.
Swiss President Ueli Maurer will lead a delegation from the country’s financial sector to visit Saudi Arabia and the United Arab Emirates for talks on strengthening business ties, the government in Bern said on Friday.
Maurer will be received by heads of state in Abu Dhabi, Dubai and Riyadh during the trip from Oct. 26 to 29, the finance ministry that he heads said.
The chief executives of Citigroup and Credit Suisse , as well as the heads of fund managers BlackRock and BlackStone will be among those gathering in Riyadh for a glitzy investment conference next week, an event not attended by top financiers last year after the murder of Saudi journalist Jamal Khashoggi.
Russia affirms close oil cooperation with #SaudiArabia, OPEC+ - Reuters
Russia affirms close oil cooperation with Saudi Arabia, OPEC+ - Reuters:
Russia’s energy ministry said on Friday it continues close cooperation with Saudi Arabia and OPEC and non-OPEC oil producers to enhance market stability and predictability.
Its statement came a day after Igor Sechin, CEO of Russian oil giant Rosneft, said the September attacks on Saudi oil assets created doubts over its reliability as a supplier.
“The quick restoration of the production capacity in Saudi Arabia after the drone attacks has once again underscored professionalism and reliability of the largest producers in the industry,” the ministry said.
Russia’s energy ministry said on Friday it continues close cooperation with Saudi Arabia and OPEC and non-OPEC oil producers to enhance market stability and predictability.
Its statement came a day after Igor Sechin, CEO of Russian oil giant Rosneft, said the September attacks on Saudi oil assets created doubts over its reliability as a supplier.
“The quick restoration of the production capacity in Saudi Arabia after the drone attacks has once again underscored professionalism and reliability of the largest producers in the industry,” the ministry said.
Oil prices clock strong weekly gains on trade hopes, crude supply - Reuters
Oil prices clock strong weekly gains on trade hopes, crude supply - Reuters:
Oil prices rose on Friday, registering the strongest weekly gains in more than a month as support from optimism over a U.S.-China trade deal, falling U.S. crude stocks and possible action from OPEC to extend output cuts outweighed broader economic concerns.
West Texas Intermediate (WTI) crude futures settled 43 cents, or 0.8%, higher at $56.66 a barrel, clocking a weekly rise of more than 5%, its strongest since June 21. Brent crude ended 35 cents, or 0.6%, higher at $62.02 a barrel, logging a weekly gain of more than 4%, its best since Sept. 20.
Oil got a boost from signs of progress in talks on resolving the U.S.-China trade dispute that has weighed on crude demand. Washington officials on Friday said the United States and China were close to finalizing the first part of a trade deal after months of a tariff war.
Oil prices rose on Friday, registering the strongest weekly gains in more than a month as support from optimism over a U.S.-China trade deal, falling U.S. crude stocks and possible action from OPEC to extend output cuts outweighed broader economic concerns.
West Texas Intermediate (WTI) crude futures settled 43 cents, or 0.8%, higher at $56.66 a barrel, clocking a weekly rise of more than 5%, its strongest since June 21. Brent crude ended 35 cents, or 0.6%, higher at $62.02 a barrel, logging a weekly gain of more than 4%, its best since Sept. 20.
Oil got a boost from signs of progress in talks on resolving the U.S.-China trade dispute that has weighed on crude demand. Washington officials on Friday said the United States and China were close to finalizing the first part of a trade deal after months of a tariff war.
#Iran’s Economic Resiliency Makes Talks More Likely - Bloomberg
Iran’s Economic Resiliency Makes Talks More Likely - Bloomberg:
The International Monetary Fund has revised downward its projections for Iran’s economy this year, predicting a 9.5% contraction, as against its previous projection of a 6% shrinkage. It will be the economy’s worst performance since 1984, when Iran was mired in a war with Iraq.
At first glance, this seems to support the Trump administration’s claims that its “maximum pressure” sanctions campaign is bringing the Iranian economy to the brink of collapse. But this view is challenged by the IMF’s projection that the decline will halt in 2020 when Iran’s economy will rebound to zero growth—despite the sanctions.
A closer examination reveals an economic recovery is already underway, as stability returns to consumer prices, manufacturing, trade, and the Iranian currency. Somewhat counterintuitively, this could improve the prospects of talks between Iran and the U.S. A stable economy may reassure the Islamic Republic that it can negotiate from a position of some strength.
The International Monetary Fund has revised downward its projections for Iran’s economy this year, predicting a 9.5% contraction, as against its previous projection of a 6% shrinkage. It will be the economy’s worst performance since 1984, when Iran was mired in a war with Iraq.
At first glance, this seems to support the Trump administration’s claims that its “maximum pressure” sanctions campaign is bringing the Iranian economy to the brink of collapse. But this view is challenged by the IMF’s projection that the decline will halt in 2020 when Iran’s economy will rebound to zero growth—despite the sanctions.
A closer examination reveals an economic recovery is already underway, as stability returns to consumer prices, manufacturing, trade, and the Iranian currency. Somewhat counterintuitively, this could improve the prospects of talks between Iran and the U.S. A stable economy may reassure the Islamic Republic that it can negotiate from a position of some strength.
Floating Storage for LNG Surges With More Ships From #Qatar - Bloomberg
Floating Storage for LNG Surges With More Ships From Qatar - Bloomberg:
The number of liquefied natural gas tankers identified as floating storage appears to be peaking, tightening the market for shipping and adding to a supply overhang.
The phenomenon happens when LNG tankers loaded with cargoes either travel slower than usual to their destination or wait at sea for a buyer.
The most recent episode can be traced back to Qatar’s decision to send out more ships ahead of maintenance work on its facilities. The result is making it more expensive for traders to charter a vessel on the prompt market in the Atlantic basin, replicating a similar bout of floating storage in Asia last year.
The number of liquefied natural gas tankers identified as floating storage appears to be peaking, tightening the market for shipping and adding to a supply overhang.
The phenomenon happens when LNG tankers loaded with cargoes either travel slower than usual to their destination or wait at sea for a buyer.
The most recent episode can be traced back to Qatar’s decision to send out more ships ahead of maintenance work on its facilities. The result is making it more expensive for traders to charter a vessel on the prompt market in the Atlantic basin, replicating a similar bout of floating storage in Asia last year.
World Bank executive stresses importance of Aramco IPO plans
World Bank executive stresses importance of Aramco IPO plans:
Listing Saudi Aramco shares on a public stock market is the “single most important thing” the government could do to continue the pace of reform in the Kingdom, a senior executive of the World Bank told Arab News on Thursday.
Simeon Djankov, director of development economics at the World Bank, was speaking on the sidelines of the Doing Business event in Riyadh, at which it was revealed that the World Bank ranks Saudi Arabia as the world’s most-improved business environment over the past 12 months.
Djankov said: “An initial public offering (IPO) of Aramco is tremendously important — probably the No. 1 thing that the Kingdom can do, out of anything in the business environment, because this is a huge company, a global company, and everybody knows about it. It has been delayed a number of times and that has given rise to the question of whether it can ever be done.”
Listing Saudi Aramco shares on a public stock market is the “single most important thing” the government could do to continue the pace of reform in the Kingdom, a senior executive of the World Bank told Arab News on Thursday.
Simeon Djankov, director of development economics at the World Bank, was speaking on the sidelines of the Doing Business event in Riyadh, at which it was revealed that the World Bank ranks Saudi Arabia as the world’s most-improved business environment over the past 12 months.
Djankov said: “An initial public offering (IPO) of Aramco is tremendously important — probably the No. 1 thing that the Kingdom can do, out of anything in the business environment, because this is a huge company, a global company, and everybody knows about it. It has been delayed a number of times and that has given rise to the question of whether it can ever be done.”
UPDATE 1- #UAE c.bank proposes new real estate lending rules for banks - Reuters
UPDATE 1-UAE c.bank proposes new real estate lending rules for banks - Reuters:
The United Arab Emirates’ central bank has proposed new regulatory measures to prevent banks from over-exposure to real estate and to encourage them to maintain diversified assets. The UAE, home to the world’s tallest tower, the Burj Khalifa, has faced a sharp real estate slowdown due to oversupply and weaker investment appetite amid lower oil prices.
The government is implementing new measures to bolster the real estate sector including stimulus packages and allowing foreigners to own freehold property in Abu Dhabi. Dubai granted freehold ownership in 2002.
The redesigned measures are expected to improve flexibility for bank lending to the real estate sector, the central bank said in a statement. It will also ensure that banks with higher real estate exposures will be subject to “supplemental regulatory requirements,” the statement said, without specifying details on the new measures or lending limits.
The United Arab Emirates’ central bank has proposed new regulatory measures to prevent banks from over-exposure to real estate and to encourage them to maintain diversified assets. The UAE, home to the world’s tallest tower, the Burj Khalifa, has faced a sharp real estate slowdown due to oversupply and weaker investment appetite amid lower oil prices.
The government is implementing new measures to bolster the real estate sector including stimulus packages and allowing foreigners to own freehold property in Abu Dhabi. Dubai granted freehold ownership in 2002.
The redesigned measures are expected to improve flexibility for bank lending to the real estate sector, the central bank said in a statement. It will also ensure that banks with higher real estate exposures will be subject to “supplemental regulatory requirements,” the statement said, without specifying details on the new measures or lending limits.
Oil declines, ending three-day rally as growth concerns return - Reuters
Oil declines, ending three-day rally as growth concerns return - Reuters:
Oil prices pulled back on Friday, retracing some of the gains of a three rally on Friday, as downbeat economic growth forecasts revived concerns over the outlook for fuel demand.
Brent crude LCOc1 was down 18 cents, or 0.3%, at $61.49 by 0642 GMT. Having risen nearly 1% on Thursday, the global benchmark was still set for a weekly gain of more than 3%.
West Texas Intermediate (WTI) crude CLc1 was down 21 cents, or 0.4%, at $56.02. The U.S. benchmark rose 0.5% in the previous session and was on track for a gain of more than 4% over the week.
The strong weekly rise was underpinned by a surprise decline in U.S. inventories of crude and optimism about more efforts to support prices by OPEC and its allies.
Oil prices pulled back on Friday, retracing some of the gains of a three rally on Friday, as downbeat economic growth forecasts revived concerns over the outlook for fuel demand.
Brent crude LCOc1 was down 18 cents, or 0.3%, at $61.49 by 0642 GMT. Having risen nearly 1% on Thursday, the global benchmark was still set for a weekly gain of more than 3%.
West Texas Intermediate (WTI) crude CLc1 was down 21 cents, or 0.4%, at $56.02. The U.S. benchmark rose 0.5% in the previous session and was on track for a gain of more than 4% over the week.
The strong weekly rise was underpinned by a surprise decline in U.S. inventories of crude and optimism about more efforts to support prices by OPEC and its allies.
Thursday, 24 October 2019
New #Kuwait Oil Production Targets: Thank The Majors, Not Greta - Bloomberg
New Kuwait Oil Production Targets: Thank The Majors, Not Greta - Bloomberg:
The best way to avoid owning a stranded asset is to not have that asset in the first place.
Kuwait is considering cutting expansion plans for its oil production, as reported by Bloomberg News. This is apparently due to expectations that mounting concern about climate change will curb demand. Yet there are also more prosaic considerations of cost and competition at play here.
State-owned Kuwait Petroleum Corp. had a goal of getting production to 4 million barrels a day by 2020 and 4.75 million a day by 2040. As of now, capacity is pegged by the International Energy Agency at slightly below 3 million barrels a day. And production so far this year, which is subject to ongoing OPEC+ restrictions, has averaged about 2.7 million barrels a day.
The best way to avoid owning a stranded asset is to not have that asset in the first place.
Kuwait is considering cutting expansion plans for its oil production, as reported by Bloomberg News. This is apparently due to expectations that mounting concern about climate change will curb demand. Yet there are also more prosaic considerations of cost and competition at play here.
State-owned Kuwait Petroleum Corp. had a goal of getting production to 4 million barrels a day by 2020 and 4.75 million a day by 2040. As of now, capacity is pegged by the International Energy Agency at slightly below 3 million barrels a day. And production so far this year, which is subject to ongoing OPEC+ restrictions, has averaged about 2.7 million barrels a day.
HSBC to Embark on Job Cuts Across Middle East, North Africa - Bloomberg
HSBC to Embark on Job Cuts Across Middle East, North Africa - Bloomberg:
HSBC Holdings Plc is embarking on a fresh round of job cuts, targeting hundreds of employees in the Middle East, North Africa and Turkey as the latest part of the lender’s ongoing cost-reduction program.
The global banking and markets and commercial banking units may bear the brunt of the reductions, which are due to start in November, according to people with knowledge of the firm’s plans. HSBC employs 4% of its total workforce in the region, according to its 2018 annual report, or about 9,600 full-time staff.
Noel Quinn, who took over as acting chief executive officer in August after the ouster of former CEO John Flint, has planned a series of retrenchments as he’s signaled he wants the top job on a permanent basis. The bank may partially exit stock trading in some developed Western markets, and will attempt to sell its French retail bank, a move that could remove as many as 8,000 staff from the payroll.
HSBC Holdings Plc is embarking on a fresh round of job cuts, targeting hundreds of employees in the Middle East, North Africa and Turkey as the latest part of the lender’s ongoing cost-reduction program.
The global banking and markets and commercial banking units may bear the brunt of the reductions, which are due to start in November, according to people with knowledge of the firm’s plans. HSBC employs 4% of its total workforce in the region, according to its 2018 annual report, or about 9,600 full-time staff.
Noel Quinn, who took over as acting chief executive officer in August after the ouster of former CEO John Flint, has planned a series of retrenchments as he’s signaled he wants the top job on a permanent basis. The bank may partially exit stock trading in some developed Western markets, and will attempt to sell its French retail bank, a move that could remove as many as 8,000 staff from the payroll.
Mysterious Private Jet From Israel to #SaudiArabia Gets Attention - Bloomberg
Mysterious Private Jet From Israel to Saudi Arabia Gets Attention - Bloomberg:
A private jet took off from Ben-Gurion International Airport near Tel Aviv on Tuesday evening, landed for a few minutes in Amman, then proceeded to the Saudi capital, Riyadh, leaving Israeli media guessing who was on the plane.
Yossi Melman, who writes for the Maariv daily, tweeted that Prime Minister Benjamin Netanyahu or Mossad spy chief Yossi Cohen may have been on board the flight to the Arab kingdom, which has no diplomatic ties with Israel, possibly to discuss the situation in Syria.
Haaretz’s Avi Scharf tweeted that the trip was “EXtra rare.” He noted that U.S. Secretary of Defense Mark Esper was in Riyadh around the same time and questioned whether the U.S.-registered jet had brought an official for a “snap trilateral.”
A private jet took off from Ben-Gurion International Airport near Tel Aviv on Tuesday evening, landed for a few minutes in Amman, then proceeded to the Saudi capital, Riyadh, leaving Israeli media guessing who was on the plane.
Yossi Melman, who writes for the Maariv daily, tweeted that Prime Minister Benjamin Netanyahu or Mossad spy chief Yossi Cohen may have been on board the flight to the Arab kingdom, which has no diplomatic ties with Israel, possibly to discuss the situation in Syria.
Haaretz’s Avi Scharf tweeted that the trip was “EXtra rare.” He noted that U.S. Secretary of Defense Mark Esper was in Riyadh around the same time and questioned whether the U.S.-registered jet had brought an official for a “snap trilateral.”
#SaudiArabia faces reality check as Wall Street heads to Riyadh - Reuters
Saudi Arabia faces reality check as Wall Street heads to Riyadh - Reuters:
Wall Street’s heavy hitters are back in Saudi Arabia but the terms of engagement have changed.
The CEOs of Citigroup (C.N) and Credit Suisse (CSGN.S), as well as the heads of fund managers BlackRock (BLK.N) and BlackStone (BX.N) will be among those gathering in Riyadh next week for a glitzy investment conference, an event not attended by top financiers last year after the murder of Saudi journalist Jamal Khashoggi.
SoftBank (9984.T) founder and CEO Masayoshi Son will also attend the Oct 29-31 conference, two people familiar with the matter said, as the Japanese company seeks to raise funds for a second technology fund. The Saudi sovereign wealth fund contributed $40 billion to Softbank’s first technology fund.
Wall Street’s heavy hitters are back in Saudi Arabia but the terms of engagement have changed.
The CEOs of Citigroup (C.N) and Credit Suisse (CSGN.S), as well as the heads of fund managers BlackRock (BLK.N) and BlackStone (BX.N) will be among those gathering in Riyadh next week for a glitzy investment conference, an event not attended by top financiers last year after the murder of Saudi journalist Jamal Khashoggi.
SoftBank (9984.T) founder and CEO Masayoshi Son will also attend the Oct 29-31 conference, two people familiar with the matter said, as the Japanese company seeks to raise funds for a second technology fund. The Saudi sovereign wealth fund contributed $40 billion to Softbank’s first technology fund.
Rosneft's Sechin: #Saudi oil site attacks hit kingdom's status as a reliable supplier - Reuters
Rosneft's Sechin: Saudi oil site attacks hit kingdom's status as a reliable supplier - Reuters:
September attacks on Saudi oil assets have created doubts about Saudi Arabia’s status as a reliable oil supplier, Igor Sechin, Chief Executive of Russia’s Rosneft (ROSN.MM), said.
The attacks, which temporarily shut down around half of the kingdom’s oil output, gave “grounds to rethink Saudi Arabia’s role as an undoubtedly reliable oil supplier”, Sechin told a conference in Italy on Thursday.
The oil executive is a close ally of President Vladimir Putin and one of Moscow’s key players in the global oil production cut deal.
September attacks on Saudi oil assets have created doubts about Saudi Arabia’s status as a reliable oil supplier, Igor Sechin, Chief Executive of Russia’s Rosneft (ROSN.MM), said.
The attacks, which temporarily shut down around half of the kingdom’s oil output, gave “grounds to rethink Saudi Arabia’s role as an undoubtedly reliable oil supplier”, Sechin told a conference in Italy on Thursday.
The oil executive is a close ally of President Vladimir Putin and one of Moscow’s key players in the global oil production cut deal.
#SaudiArabia's new bankruptcy law faces key test in the courts - Reuters
Saudi Arabia's new bankruptcy law faces key test in the courts - Reuters:
The merit of Saudi Arabia’s new bankruptcy law, part of efforts to help the kingdom attract investors, should become clearer in about a year after courts handle initial cases, a World Bank representative and senior government official told Reuters.
A lack of modern bankruptcy regulations had created difficulties for struggling companies seeking to restructure debt with creditors since the 2009 global financial crisis and the more recent dip in oil prices.
Legislation introduced in 2018 is part of broader efforts to overhaul the economy of the world’s top oil exporter to entice foreign investment, create jobs for young Saudis and diversify into non-oil industries.
The merit of Saudi Arabia’s new bankruptcy law, part of efforts to help the kingdom attract investors, should become clearer in about a year after courts handle initial cases, a World Bank representative and senior government official told Reuters.
A lack of modern bankruptcy regulations had created difficulties for struggling companies seeking to restructure debt with creditors since the 2009 global financial crisis and the more recent dip in oil prices.
Legislation introduced in 2018 is part of broader efforts to overhaul the economy of the world’s top oil exporter to entice foreign investment, create jobs for young Saudis and diversify into non-oil industries.
UPDATE 1- #UAE's First #AbuDhabi Bank third-quarter net profit up 3% - Reuters
UPDATE 1-UAE's First Abu Dhabi Bank third-quarter net profit up 3% - Reuters:
First Abu Dhabi Bank (FAB) , the largest lender in the United Arab Emirates, reported a 3% rise in third-quarter net profit, driven by higher non-interest income.
FAB made a net 3.11 billion dirhams ($847 million) in the three months ended Sept. 30, compared with 3.02 billion in the prior-year period, it said in a statement on Thursday.
The profit was broadly in line with analysts’ forecasts. EFG Hermes had forecast a net 3.12 billion dirhams while SICO Bahrain had forecast 3.21 billion.
First Abu Dhabi Bank (FAB) , the largest lender in the United Arab Emirates, reported a 3% rise in third-quarter net profit, driven by higher non-interest income.
FAB made a net 3.11 billion dirhams ($847 million) in the three months ended Sept. 30, compared with 3.02 billion in the prior-year period, it said in a statement on Thursday.
The profit was broadly in line with analysts’ forecasts. EFG Hermes had forecast a net 3.12 billion dirhams while SICO Bahrain had forecast 3.21 billion.
#Saudi lender NCB posts 20% profit jump - Reuters
Saudi lender NCB posts 20% profit jump - Reuters:
Saudi Arabia’s National Commercial Bank (1180.SE)(NCB), the kingdom’s largest lender, reported a 20% rise in third-quarter net profit on Thursday.
The bank made a net profit of 2.55 billion riyals ($680 million) in the three months to Sept. 30, up from 2.12 billion riyals in the same period of 2018, it said in a bourse statement.
Revenue from special income, an Islamic equivalent to net interest income, rose 4.9% to 4.93 billion riyals while fee income from banking and exchange services declined.
Saudi Arabia’s National Commercial Bank (1180.SE)(NCB), the kingdom’s largest lender, reported a 20% rise in third-quarter net profit on Thursday.
The bank made a net profit of 2.55 billion riyals ($680 million) in the three months to Sept. 30, up from 2.12 billion riyals in the same period of 2018, it said in a bourse statement.
Revenue from special income, an Islamic equivalent to net interest income, rose 4.9% to 4.93 billion riyals while fee income from banking and exchange services declined.
Oil extends gains despite weak demand outlook - Reuters
Oil extends gains despite weak demand outlook - Reuters:
Oil prices extended their gains on Thursday, with Brent rising above $61 a barrel as a surprise drop in U.S. crude inventories and the prospect of further market-supporting action by OPEC and its allies offset some concern over the outlook for demand.
Brent crude ended the session up 50 cents, or 0.8%, at $61.67 a barrel, having risen 2.5% on Wednesday.
West Texas Intermediate (WTI) crude settled 26 cents, or 0.5%, higher at $56.23, adding to the previous session’s 2.8% gain after data showed that U.S. inventories dropped by 1.7 million barrels last week.
“We feel that even minor supportive headlines on the trade front or geopolitical developments could prompt an exaggerated price response in a market in which net speculative WTI length had dropped into the red zone,” Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.
Oil prices extended their gains on Thursday, with Brent rising above $61 a barrel as a surprise drop in U.S. crude inventories and the prospect of further market-supporting action by OPEC and its allies offset some concern over the outlook for demand.
Brent crude ended the session up 50 cents, or 0.8%, at $61.67 a barrel, having risen 2.5% on Wednesday.
West Texas Intermediate (WTI) crude settled 26 cents, or 0.5%, higher at $56.23, adding to the previous session’s 2.8% gain after data showed that U.S. inventories dropped by 1.7 million barrels last week.
“We feel that even minor supportive headlines on the trade front or geopolitical developments could prompt an exaggerated price response in a market in which net speculative WTI length had dropped into the red zone,” Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.
MIDEAST STOCKS-Financial stocks elevate Egypt, most of Gulf quiet - Reuters
MIDEAST STOCKS-Financial stocks elevate Egypt, most of Gulf quiet - Reuters:
The Egyptian stock market rebounded on
Thursday, getting a boost from financials, while most major Gulf
markets were little changed.
The Egyptian blue-chip index rose 0.6%, with 23 of
its 30 stocks in the black. Non-Arab foreigners were the net
buyers of the stocks during the session, while Egyptians were
the net sellers, according to data on the exchange website.
Tobacco products maker Eastern Company climbed
2.8%, while EFG Hermes leapt 3.1%.
Among other stocks, Egypt's Citadel Capital
climbed 3.8%. Earlier this week, the company's chairman told
Reuters that Citadel will raise its refinery production capacity
to 5.5 million tonnes of oil products per year in 2021 from 4.2
million now.
The Egyptian stock market rebounded on
Thursday, getting a boost from financials, while most major Gulf
markets were little changed.
The Egyptian blue-chip index rose 0.6%, with 23 of
its 30 stocks in the black. Non-Arab foreigners were the net
buyers of the stocks during the session, while Egyptians were
the net sellers, according to data on the exchange website.
Tobacco products maker Eastern Company climbed
2.8%, while EFG Hermes leapt 3.1%.
Among other stocks, Egypt's Citadel Capital
climbed 3.8%. Earlier this week, the company's chairman told
Reuters that Citadel will raise its refinery production capacity
to 5.5 million tonnes of oil products per year in 2021 from 4.2
million now.
Investors starve US shale drillers of capital | Financial Times
Investors starve US shale drillers of capital | Financial Times:
The money pipeline is running dry for large portions of the US shale oil sector, tipping drillers into bankruptcy and threatening the industry’s breathtaking growth in oil production.
Spooked by lower oil prices, equity and bond investors are now shunning the smaller, independent shale explorers that lifted the US to the top rank of global oil producers. Meanwhile, say analysts, banks have pulled in their horns, and are likely to further restrict companies’ capacity to borrow when they begin their twice-annual reviews of loans secured by oil and gas reserves.
Market-watchers expect this financing squeeze to trigger a wave of mergers among smaller companies in the Permian Basin and other shale-oil regions.
The money pipeline is running dry for large portions of the US shale oil sector, tipping drillers into bankruptcy and threatening the industry’s breathtaking growth in oil production.
Spooked by lower oil prices, equity and bond investors are now shunning the smaller, independent shale explorers that lifted the US to the top rank of global oil producers. Meanwhile, say analysts, banks have pulled in their horns, and are likely to further restrict companies’ capacity to borrow when they begin their twice-annual reviews of loans secured by oil and gas reserves.
Market-watchers expect this financing squeeze to trigger a wave of mergers among smaller companies in the Permian Basin and other shale-oil regions.
Bilal Khan, Senior Economist at Standard Chartered, on Oil, #SaudiArabia, Egypt - Bloomberg
Bilal Khan, Senior Economist at Standard Chartered, on Oil, Saudi Arabia, Egypt - Bloomberg:
Bilal Khan, senior economist for Middle East, North Africa and Pakistan at Standard Chartered Plc, talks about oil prices and the implications for Saudi Arabia's economy. He also discusses Egypt's monetary policy and currency. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Bilal Khan, senior economist for Middle East, North Africa and Pakistan at Standard Chartered Plc, talks about oil prices and the implications for Saudi Arabia's economy. He also discusses Egypt's monetary policy and currency. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Israel and Gulf States Are Going Public With Their Relationship - Bloomberg
Israel and Gulf States Are Going Public With Their Relationship - Bloomberg:
The Arab states of the Persian Gulf still don’t formally recognize Israel, and most have nominally maintained an economic boycott against it since before it was even a country. Even so, the business ties and warming diplomatic relations between the Jewish state and its neighbors in the Gulf have been an open secret for years.
Those ties will be unveiled with fanfare next October when Israel opens its pavilion at the World Expo in Dubai, the United Arab Emirates’ largest city. Participating is like setting up an embassy that will last only six months: Close coordination between Israel and its host will be required on myriad and mundane tasks, including hiring builders and planning ancillary events. It may seem like a substance-free event, but Israel’s presence among the more than 190 other countries is a clear sign of the Middle East’s changing geopolitical picture.
Normalizing relations with Arab countries has been a priority for Israel since at least 1979, when Egypt and Israel signed a landmark peace treaty following the Camp David Accords. In October 2018, Prime Minister Benjamin Netanyahu made international headlines with his visit to Oman, a small country with strong links across the Gulf and past relations with Israel. Participating in the fair “reflects Israel’s growing position not only in the world but also in the region,” said Foreign Minister Israel Katz in a statement.
The Arab states of the Persian Gulf still don’t formally recognize Israel, and most have nominally maintained an economic boycott against it since before it was even a country. Even so, the business ties and warming diplomatic relations between the Jewish state and its neighbors in the Gulf have been an open secret for years.
Those ties will be unveiled with fanfare next October when Israel opens its pavilion at the World Expo in Dubai, the United Arab Emirates’ largest city. Participating is like setting up an embassy that will last only six months: Close coordination between Israel and its host will be required on myriad and mundane tasks, including hiring builders and planning ancillary events. It may seem like a substance-free event, but Israel’s presence among the more than 190 other countries is a clear sign of the Middle East’s changing geopolitical picture.
Normalizing relations with Arab countries has been a priority for Israel since at least 1979, when Egypt and Israel signed a landmark peace treaty following the Camp David Accords. In October 2018, Prime Minister Benjamin Netanyahu made international headlines with his visit to Oman, a small country with strong links across the Gulf and past relations with Israel. Participating in the fair “reflects Israel’s growing position not only in the world but also in the region,” said Foreign Minister Israel Katz in a statement.