Crude at Four-Month High as OPEC Signals Commitment to Cuts - Bloomberg:
Crude closed higher for a fourth straight day in New York ahead of a weekend meeting where the world’s top exporters will discuss whether to extend supply cuts.
U.S. benchmark oil climbed 0.6 percent on Thursday, settling at a four-month high. Ahead of a meeting in Azerbaijan, the OPEC secretariat urged producers to continue efforts to prevent a surplus this year. Ministers from the coalition’s two central players, Russia and Saudi Arabia, will hold a one-on-one meeting as well as the former nation struggles to keep up its end of a pledge to tighten the market.
The cuts “highlight just how serious the Kingdom is in terms of getting supplies down and tidying this market up to get prices up, which they desperately need,” said John Kilduff, partner at Again Capital LLC, a New York hedge fund focused on energy.
Thursday, 14 March 2019
#Dubai's IMG Said to Weigh Sale of Largest Indoor Theme Park - Bloomberg
Dubai's IMG Said to Weigh Sale of Largest Indoor Theme Park - Bloomberg:
The owner of the world’s largest indoor theme park in Dubai is exploring options for the business, including a possible sale, according to people familiar with the matter.
Ilyas & Mustafa Galadari Group, known as IMG, is considering selling part or all of its IMG Worlds of Adventure theme park after struggling to restructure a 1.2 billion-dirham ($327 million) loan, the people said, asking not to be identified because the plans are private. Discussions are at an early stage and the owners may decide to keep the business or consider an initial public offering at a later date, they said.
“We are not planning to sell IMG in any form, neither partial and wholly,” Chief Executive Officer Leonard Otto said in an emailed response to questions. “We are not in any discussion around the same,” he said, adding that IMG is in advanced talks with banks “on our syndicate-loan restructuring to support the business.”
The owner of the world’s largest indoor theme park in Dubai is exploring options for the business, including a possible sale, according to people familiar with the matter.
Ilyas & Mustafa Galadari Group, known as IMG, is considering selling part or all of its IMG Worlds of Adventure theme park after struggling to restructure a 1.2 billion-dirham ($327 million) loan, the people said, asking not to be identified because the plans are private. Discussions are at an early stage and the owners may decide to keep the business or consider an initial public offering at a later date, they said.
“We are not planning to sell IMG in any form, neither partial and wholly,” Chief Executive Officer Leonard Otto said in an emailed response to questions. “We are not in any discussion around the same,” he said, adding that IMG is in advanced talks with banks “on our syndicate-loan restructuring to support the business.”
Etihad Woes Deepen as Losses Reach $4.8 Billion in Three Years - Bloomberg
Etihad Woes Deepen as Losses Reach $4.8 Billion in Three Years - Bloomberg:
Etihad Airways posted a loss of $1.28 billion in 2018, extending the deficit over three years to $4.8 billion, as the Gulf carrier pushes ahead with a cost-cutting plan to stabilize the balance sheet.
The Abu Dhabi company, which has abandoned an attempt to build a global network of airline investments after a string of failures, canceled a further nine unprofitable routes last year, it said in an emailed statement Thursday. The review is ongoing and comes alongside a reduced delivery of new planes, with deals to slash $21.4 billion of orders agreed with Boeing Co. and Airbus SE last month.
Chief Executive Officer Tony Douglas said progress is being made in “streamlining our cost base, improving our cash-flow and strengthening our balance sheet.” The annual loss was an improvement on 2017’s $1.52 billion.
Etihad Airways posted a loss of $1.28 billion in 2018, extending the deficit over three years to $4.8 billion, as the Gulf carrier pushes ahead with a cost-cutting plan to stabilize the balance sheet.
The Abu Dhabi company, which has abandoned an attempt to build a global network of airline investments after a string of failures, canceled a further nine unprofitable routes last year, it said in an emailed statement Thursday. The review is ongoing and comes alongside a reduced delivery of new planes, with deals to slash $21.4 billion of orders agreed with Boeing Co. and Airbus SE last month.
Chief Executive Officer Tony Douglas said progress is being made in “streamlining our cost base, improving our cash-flow and strengthening our balance sheet.” The annual loss was an improvement on 2017’s $1.52 billion.
Goldman Blacklisted in #AbuDhabi in Fresh Blow From 1MDB Scandal - Bloomberg
Goldman Blacklisted in Abu Dhabi in Fresh Blow From 1MDB Scandal - Bloomberg:
An Abu Dhabi-controlled investment fund has halted new business with Goldman Sachs Group Inc., adding to the growing fallout for the U.S. bank from its role in the 1MDB corruption scandal.
"We have suspended any activities with Goldman Sachs pending outcome of our existing litigation," Brian Lott, a spokesman for Mubadala Investment, said in a statement. "The only exceptions are engagements signed prior to the litigation, which will continue as per contractual terms."
The decision follows legal action being pursued by units of Mubadala to seek damages from the bank for what it calls its "central role" in the 1MDB scandal. International Petroleum Investment Co. and Aabar Investments declared their intent to sue Goldman Sachs in November in a New York state court.
An Abu Dhabi-controlled investment fund has halted new business with Goldman Sachs Group Inc., adding to the growing fallout for the U.S. bank from its role in the 1MDB corruption scandal.
"We have suspended any activities with Goldman Sachs pending outcome of our existing litigation," Brian Lott, a spokesman for Mubadala Investment, said in a statement. "The only exceptions are engagements signed prior to the litigation, which will continue as per contractual terms."
The decision follows legal action being pursued by units of Mubadala to seek damages from the bank for what it calls its "central role" in the 1MDB scandal. International Petroleum Investment Co. and Aabar Investments declared their intent to sue Goldman Sachs in November in a New York state court.
Al Khodari's shareholders approve capital restructuring, struggling company's shares surge | ZAWYA MENA Edition
Al Khodari's shareholders approve capital restructuring, struggling company's shares surge | ZAWYA MENA Edition:
Shareholders of Saudi Arabia’s Abdullah Abdul Mohsin Al Khodari Sons Company (Al Khodari) approved a capital restructuring, which could help the company to move away from the harsh times it has gone through the last couple of years.
Al Khodari announced to the exchange on Thursday that its shareholders had approved a capital restructuring at an emergency general meeting held to deal with the company's losses. In a note to the exchange last month, the company said its accumulated losses had reached over 1.1 billion Saudi riyals ($293.3 million), equivalent to 198.52 percent of its share capital.
Shareholders voted to allow the company to continue trading and to approva a restructuring that will involve a capital reduction to reduce losses and a capital increase, with a view to bringing losses back below half of its paid-up capital.
Shareholders of Saudi Arabia’s Abdullah Abdul Mohsin Al Khodari Sons Company (Al Khodari) approved a capital restructuring, which could help the company to move away from the harsh times it has gone through the last couple of years.
Al Khodari announced to the exchange on Thursday that its shareholders had approved a capital restructuring at an emergency general meeting held to deal with the company's losses. In a note to the exchange last month, the company said its accumulated losses had reached over 1.1 billion Saudi riyals ($293.3 million), equivalent to 198.52 percent of its share capital.
Shareholders voted to allow the company to continue trading and to approva a restructuring that will involve a capital reduction to reduce losses and a capital increase, with a view to bringing losses back below half of its paid-up capital.
Fearing new oil glut, OPEC builds case for keeping supply cuts | Reuters
Fearing new oil glut, OPEC builds case for keeping supply cuts | Reuters:
OPEC on Thursday cut the forecast of global demand for its oil this year as rivals boost production, building a case for extending supply curbs beyond June to stop any new glut.
Continued supply reductions would further support oil prices, which are up about 25 percent this year at $68 a barrel, and incur the wrath of U.S. President Donald Trump, who has demanded OPEC ease its efforts to bolster the market.
In a monthly report, the Organization of the Petroleum Exporting Countries said 2019 demand for its crude would average 30.46 million barrels per day, 130,000 bpd less than forecast last month and below what it is currently producing.
OPEC on Thursday cut the forecast of global demand for its oil this year as rivals boost production, building a case for extending supply curbs beyond June to stop any new glut.
Continued supply reductions would further support oil prices, which are up about 25 percent this year at $68 a barrel, and incur the wrath of U.S. President Donald Trump, who has demanded OPEC ease its efforts to bolster the market.
In a monthly report, the Organization of the Petroleum Exporting Countries said 2019 demand for its crude would average 30.46 million barrels per day, 130,000 bpd less than forecast last month and below what it is currently producing.
MIDEAST STOCKS- #AbuDhabi hits multi-year peak, blue-chip banks lift #Qatar | Reuters
MIDEAST STOCKS-Abu Dhabi hits multi-year peak, blue-chip banks lift Qatar | Reuters:
The Abu Dhabi stock market climbed sharply on Thursday for its biggest one-day gain in nearly three years while Qatar was lifted by its blue-chip banks to its best day in seven months.
The Abu Dhabi index rose 3.7 percent. First Abu Dhabi Bank (FAB), the United Arab Emirates' biggest bank, surged 6.5 percent and Emirates Telecommunications added 5.2 percent.
With FTSE and S&P index rebalancing ataking place across emerging markets on Thursday there were sizeable inflows into heavyweights First Abu Dhabi and Emirates Telecommunications, which account for about 70 percent of the Abu Dhabi index, said Mohamad Al Hajj, head of MENA equity strategy for EFG Hermes.
The Abu Dhabi stock market climbed sharply on Thursday for its biggest one-day gain in nearly three years while Qatar was lifted by its blue-chip banks to its best day in seven months.
The Abu Dhabi index rose 3.7 percent. First Abu Dhabi Bank (FAB), the United Arab Emirates' biggest bank, surged 6.5 percent and Emirates Telecommunications added 5.2 percent.
With FTSE and S&P index rebalancing ataking place across emerging markets on Thursday there were sizeable inflows into heavyweights First Abu Dhabi and Emirates Telecommunications, which account for about 70 percent of the Abu Dhabi index, said Mohamad Al Hajj, head of MENA equity strategy for EFG Hermes.
We Entered the #UAE With a Significant Overweight, Says Lazard’s Al Said – Bloomberg
We Entered the U.A.E. With a Significant Overweight, Says Lazard’s Al Said – Bloomberg:
Fadi Al Said, director of MENA equity and portfolio manager at Lazard, discusses investor sentiment in the rise in oil prices, his positioning in Middle East markets, petrochemicals, investing in the U.A.E. and his outlook for Egypt. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Fadi Al Said, director of MENA equity and portfolio manager at Lazard, discusses investor sentiment in the rise in oil prices, his positioning in Middle East markets, petrochemicals, investing in the U.A.E. and his outlook for Egypt. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
#Turkey Is Changing the Middle East. The U.S. Doesn’t Get It. - Bloomberg
Turkey Is Changing the Middle East. The U.S. Doesn’t Get It. - Bloomberg:
The Middle East is changing fast but the U.S. seems to be the last government to realize it and respond.
For at least 10 years, the region has been caricatured as divided into two camps: a pro-Iranian coalition and a looser but larger group that opposes Iran's ambitions. For short, it’s sometimes foolishly reduced to a Sunni-Shiite sectarian divide.
That was always a distortion, and it's become increasingly clear that, while the pro- and anti-Iranian camps do exist, there’s also a distinctive third bloc emerging, with a Sunni Islamist orientation, led by Turkey. Ankara is turning into a major regional player with its own agenda, ambitions, ideology and allies.
The Middle East is changing fast but the U.S. seems to be the last government to realize it and respond.
For at least 10 years, the region has been caricatured as divided into two camps: a pro-Iranian coalition and a looser but larger group that opposes Iran's ambitions. For short, it’s sometimes foolishly reduced to a Sunni-Shiite sectarian divide.
That was always a distortion, and it's become increasingly clear that, while the pro- and anti-Iranian camps do exist, there’s also a distinctive third bloc emerging, with a Sunni Islamist orientation, led by Turkey. Ankara is turning into a major regional player with its own agenda, ambitions, ideology and allies.
Saudis Head to OPEC+ Talks Reluctant to Do Trump's Bidding - Bloomberg
Saudis Head to OPEC+ Talks Reluctant to Do Trump's Bidding - Bloomberg:
Four months ago, Saudi Arabia’s devotion to its decades-old oil partnership with the U.S. was stronger than ever.
President Donald Trump was poised to choke off crude exports from the kingdom’s political nemesis, Iran. And the Saudis, shunned by other nations after the murder of journalist Jamal Khashoggi, were readily obliging the White House with record supplies.
But the Trump administration stunned Riyadh by softening its crackdown on Iran at the last minute, allowing many customers to continue buying and triggering a crash in oil prices. Since then, the Saudis’ trust in their main political ally has frayed.
Four months ago, Saudi Arabia’s devotion to its decades-old oil partnership with the U.S. was stronger than ever.
President Donald Trump was poised to choke off crude exports from the kingdom’s political nemesis, Iran. And the Saudis, shunned by other nations after the murder of journalist Jamal Khashoggi, were readily obliging the White House with record supplies.
But the Trump administration stunned Riyadh by softening its crackdown on Iran at the last minute, allowing many customers to continue buying and triggering a crash in oil prices. Since then, the Saudis’ trust in their main political ally has frayed.
#Saudi EM Inclusion Begs Question About Elephant in the Room - Bloomberg
Saudi EM Inclusion Begs Question About Elephant in the Room - Bloomberg:
Saudi Arabia’s inclusion in emerging market stock benchmarks highlights the role of largely opaque players in the kingdom’s market: government funds that could be ready to push the sell button.
FTSE Russell will start adding Saudi equities to its developing-nation gauges on Monday, with peer MSCI Inc. following suit later. Inclusion is eventually expected to trigger billions of dollars in inflows from so-called passive buyers, whose assets track benchmarks and must align with the gauges.
Other investors may hold off because they see funds with links to the government, whose holdings may have buoyed stocks during recent political turmoil, as primed to offload stakes as newcomers enter.
Saudi Arabia’s inclusion in emerging market stock benchmarks highlights the role of largely opaque players in the kingdom’s market: government funds that could be ready to push the sell button.
FTSE Russell will start adding Saudi equities to its developing-nation gauges on Monday, with peer MSCI Inc. following suit later. Inclusion is eventually expected to trigger billions of dollars in inflows from so-called passive buyers, whose assets track benchmarks and must align with the gauges.
Other investors may hold off because they see funds with links to the government, whose holdings may have buoyed stocks during recent political turmoil, as primed to offload stakes as newcomers enter.
Mideast Stocks: #AbuDhabi snaps losing streak, DISB hits #Dubai | ZAWYA MENA Edition
Mideast Stocks: Abu Dhabi snaps losing streak, DISB hits Dubai | ZAWYA MENA Edition:
The Abu Dhabi stock market rose on Thursday, recovering some losses it suffered over 10 straight sessions, while Dubai was pulled down by Dubai Islamic Bank's going ex-dividend.
The Abu Dhabi index rose 1.9 percent. First Abu Dhabi Bank, the United Arab Emirates' biggest bank, gained 2.8 percent and Emirates Telecommunications rose 3.7 percent.
Late last month, FAB shareholders approved an increase in the limit of foreign ownership of its shares to 40 percent from 25 percent.
The Abu Dhabi stock market rose on Thursday, recovering some losses it suffered over 10 straight sessions, while Dubai was pulled down by Dubai Islamic Bank's going ex-dividend.
The Abu Dhabi index rose 1.9 percent. First Abu Dhabi Bank, the United Arab Emirates' biggest bank, gained 2.8 percent and Emirates Telecommunications rose 3.7 percent.
Late last month, FAB shareholders approved an increase in the limit of foreign ownership of its shares to 40 percent from 25 percent.
Payments processor Network International readies London listing | Reuters
Payments processor Network International readies London listing | Reuters:
Network International, the largest payment processing firm across the Middle East and Africa, plans to list on the London Stock Exchange, it said on Thursday.
The Dubai-based company, jointly owned by Dubai bank Emirates NBD and private equity firms Warburg Pincus and General Atlantic, said it would trade on the LSE’s main market and have a free float of at least 25 percent of its issued share capital.
The initial public offering (IPO) would be the first international IPO in London this year. The first domestic listing was that of law firm DWF Group on March 11, raising 75 million pounds ($99.6 million).
Network International, the largest payment processing firm across the Middle East and Africa, plans to list on the London Stock Exchange, it said on Thursday.
The Dubai-based company, jointly owned by Dubai bank Emirates NBD and private equity firms Warburg Pincus and General Atlantic, said it would trade on the LSE’s main market and have a free float of at least 25 percent of its issued share capital.
The initial public offering (IPO) would be the first international IPO in London this year. The first domestic listing was that of law firm DWF Group on March 11, raising 75 million pounds ($99.6 million).
Oil hits four-months highs, Brent reaches $68 on tighter supply | Reuters
Oil hits four-months highs, Brent reaches $68 on tighter supply | Reuters:
Brent and West Texas Intermediate crude oil futures reached four-months highs on Thursday, as a production curb agreement by OPEC and its partners along with U.S. sanctions on Iran and Venezuela tightened global supplies.
An unexpected dip in U.S. crude oil inventories and production also supported prices, traders said.
Brent crude oil futures hit a 2019-peak of $68.14 per barrel on Thursday before easing modestly to $67.05 by 0840 GMT, up 50 cents or 0.74 percent from Wednesday’s close.
Brent and West Texas Intermediate crude oil futures reached four-months highs on Thursday, as a production curb agreement by OPEC and its partners along with U.S. sanctions on Iran and Venezuela tightened global supplies.
An unexpected dip in U.S. crude oil inventories and production also supported prices, traders said.
Brent crude oil futures hit a 2019-peak of $68.14 per barrel on Thursday before easing modestly to $67.05 by 0840 GMT, up 50 cents or 0.74 percent from Wednesday’s close.
#Dubai's DP World plays down trade tensions as annual profit jumps 10 percent | Reuters
Dubai's DP World plays down trade tensions as annual profit jumps 10 percent | Reuters:
DP World, one of the world’s biggest port operators, said on Thursday its business could weather international trade tensions, after reporting a 10.2 percent rise in 2018 profit.
“Current year has started with trading in line with expectations and whilst the near-term outlook remains uncertain with the trade war and geopolitical headwinds, we expect our portfolio to remain resilient and see increased contributions from our recent acquisitions and investments,” Sultan bin Sulayem, DP World chairman, said in a statement.
The Dubai state controlled firm said it made a profit attributable to owners after separately disclosed items of $1.3 billion compared to $1.18 billion in 2017.
DP World, one of the world’s biggest port operators, said on Thursday its business could weather international trade tensions, after reporting a 10.2 percent rise in 2018 profit.
“Current year has started with trading in line with expectations and whilst the near-term outlook remains uncertain with the trade war and geopolitical headwinds, we expect our portfolio to remain resilient and see increased contributions from our recent acquisitions and investments,” Sultan bin Sulayem, DP World chairman, said in a statement.
The Dubai state controlled firm said it made a profit attributable to owners after separately disclosed items of $1.3 billion compared to $1.18 billion in 2017.
#AbuDhabi's Etihad Airways posts $1.28 billion loss in 2018 | Reuters
Abu Dhabi's Etihad Airways posts $1.28 billion loss in 2018 | Reuters:
Abu Dhabi’s Etihad Airways reported on Thursday its third consecutive annual loss in 2018, blaming challenging market conditions and the effects of an increase in fuel prices.
Etihad’s net loss narrowed to $1.28 billion for last year, from $1.52 billion in 2017, it said in a statement.
The airline reported revenues of $5.86 billion in 2018, it said in a statement.
Abu Dhabi’s Etihad Airways reported on Thursday its third consecutive annual loss in 2018, blaming challenging market conditions and the effects of an increase in fuel prices.
Etihad’s net loss narrowed to $1.28 billion for last year, from $1.52 billion in 2017, it said in a statement.
The airline reported revenues of $5.86 billion in 2018, it said in a statement.
Mashreq to spend Dh500m on digital push as it reduces branches, CEO says - The National
Mashreq to spend Dh500m on digital push as it reduces branches, CEO says - The National:
Mashreq Bank, the Dubai lender controlled by the Al Ghurair family, will spend at least Dh500 million over the next five years on digitisation, as it plans to shut half of its branches in the UAE this year.
The lender will replace the physical infrastructure with digital 'branches', Mashreq chief executive Abdul Aziz Al Ghurair, told The National in an interview on Wednesday.
“The full-fledge [remaining] branches will still be there and over time we will see if we can do with less of these," Mr Al Ghurair said. "About 97 per cent of our transactions [are] online, so there’s very little need for branches.”
Mashreq Bank, the Dubai lender controlled by the Al Ghurair family, will spend at least Dh500 million over the next five years on digitisation, as it plans to shut half of its branches in the UAE this year.
The lender will replace the physical infrastructure with digital 'branches', Mashreq chief executive Abdul Aziz Al Ghurair, told The National in an interview on Wednesday.
“The full-fledge [remaining] branches will still be there and over time we will see if we can do with less of these," Mr Al Ghurair said. "About 97 per cent of our transactions [are] online, so there’s very little need for branches.”
Not ‘super bullish’ on #Saudi stocks — UBS
Not ‘super bullish’ on Saudi stocks — UBS:
Saudi Arabia’s Tadawul index has been the best performing regional index so far in the year, but investment bank UBS says this is not enough to make the financial institution “super bullish” on the gauge.
The Tadawul index has gained 8.94 per cent since January 1, outperforming the Dubai Financial Market general index, which has risen only 2 per cent, with most of the recovery seen in February.
The Abu Dhabi Securities Exchange was one of the best performing stock indices last year, mainly to a surge in banking stocks due to a merger.
Saudi Arabia’s Tadawul index has been the best performing regional index so far in the year, but investment bank UBS says this is not enough to make the financial institution “super bullish” on the gauge.
The Tadawul index has gained 8.94 per cent since January 1, outperforming the Dubai Financial Market general index, which has risen only 2 per cent, with most of the recovery seen in February.
The Abu Dhabi Securities Exchange was one of the best performing stock indices last year, mainly to a surge in banking stocks due to a merger.
Traders prefer to sell Emaar on rallies
Traders prefer to sell Emaar on rallies:
Traders resorted to selling rallies in Emaar Properties, indicating bearishness in the stock.
Emaar Properties rose to a high of Dh4.86 on Tuesday, but faced selling pressure and lost 3.3 per cent from its high.
On Wednesday, Emaar Properties closed 1.26 per cent lower at Dh4.70.
Traders resorted to selling rallies in Emaar Properties, indicating bearishness in the stock.
Emaar Properties rose to a high of Dh4.86 on Tuesday, but faced selling pressure and lost 3.3 per cent from its high.
On Wednesday, Emaar Properties closed 1.26 per cent lower at Dh4.70.
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