Oil Rallies as Mideast Tensions Flare Over Saudi Pipeline Attack - Bloomberg:
Oil soared to a two-week high as Saudi Arabia accused Iran of ordering this week’s attack on its key oil facilities, fueling tensions between two of the world’s oil-producing superpowers.
Futures in New York advanced 1.4% on Thursday. Saudi Arabia’s vice-minister of defense and brother of the country’s de facto ruler said on Twitter that Tuesday’s drone attack was ordered by Iran.
His comments came as Saudi-led forces launched retaliatory airstrikes against Houthi positions in Yemen, where the United Nations is working to end a four-year war. The escalation also follows the U.S. ordering non-emergency staff to leave neighboring Iraq due to increasing threats in the region.
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Thursday 16 May 2019
UAE's Dana Gas inclusion in MSCI Emerging Markets Small Cap Index | ZAWYA MENA Edition
UAE's Dana Gas inclusion in MSCI Emerging Markets Small Cap Index | ZAWYA MENA Edition:
Dana Gas, a regional private sector natural gas company, has announced its inclusion in the Morgan Stanley Capital International, MSCI, for Global Small Cap Indexes, effective 27th May, 2019.
The MSCI Emerging Markets Small Cap Index captures small-cap representation across 24 Emerging Markets countries. With 1,571 constituents, the index covers approximately 14% of the free float-adjusted market capitalisation in each country.
The small cap segment tends to capture more local economic and sector characteristics relative to larger Emerging Markets capitalisation segments. Dana Gas has joined the benchmark which includes 23 emerging markets countries, including the United Arab Emirates.
Dana Gas, a regional private sector natural gas company, has announced its inclusion in the Morgan Stanley Capital International, MSCI, for Global Small Cap Indexes, effective 27th May, 2019.
The MSCI Emerging Markets Small Cap Index captures small-cap representation across 24 Emerging Markets countries. With 1,571 constituents, the index covers approximately 14% of the free float-adjusted market capitalisation in each country.
The small cap segment tends to capture more local economic and sector characteristics relative to larger Emerging Markets capitalisation segments. Dana Gas has joined the benchmark which includes 23 emerging markets countries, including the United Arab Emirates.
Brent spreads point to tightest market since 2014: Kemp - Reuters
Brent spreads point to tightest market since 2014: Kemp - Reuters:
Oil traders anticipate a big draw down in crude stocks in the second half of this year as sanctions on Iran and Venezuela coupled with other supply disruptions and a sluggish response from OPEC cause a severe shortage.
Brent's six-month calendar spread has moved into a backwardation of almost $3.80 per barrel up from $2.20 a month ago and a contango of more than $1 per barrel at the beginning of the year (tmsnrt.rs/2EeQkNf).
Brent spreads cycle between backwardation and contango as the market alternates between periods of under- and over-supply, making spreads rather than spot prices the most useful indicator of market balance.
Oil traders anticipate a big draw down in crude stocks in the second half of this year as sanctions on Iran and Venezuela coupled with other supply disruptions and a sluggish response from OPEC cause a severe shortage.
Brent's six-month calendar spread has moved into a backwardation of almost $3.80 per barrel up from $2.20 a month ago and a contango of more than $1 per barrel at the beginning of the year (tmsnrt.rs/2EeQkNf).
Brent spreads cycle between backwardation and contango as the market alternates between periods of under- and over-supply, making spreads rather than spot prices the most useful indicator of market balance.
Oil gains 2% as Middle East conflict intensifies - Reuters
Oil gains 2% as Middle East conflict intensifies - Reuters:
Oil prices jumped 2% on Thursday as tensions in the Middle East grew, with a Saudi-led coalition launching air strikes in retaliation for recent attacks on its oil infrastructure.
Brent crude futures were up $1.53, or 2.1%, at $73.30 a barrel by 11:58 a.m. (1558 GMT); it touched its highest level in three weeks. U.S. West Texas Intermediate (WTI) crude futures gained $1.35, or 2.2%, to $63.37 a barrel.
The Saudi-led military coalition in Yemen carried out several air strikes on the Houthi-held capital Sanaa on Thursday after the Iranian-aligned movement claimed responsibility for drone attacks on two Saudi oil pumping stations earlier in the week.
Oil prices jumped 2% on Thursday as tensions in the Middle East grew, with a Saudi-led coalition launching air strikes in retaliation for recent attacks on its oil infrastructure.
Brent crude futures were up $1.53, or 2.1%, at $73.30 a barrel by 11:58 a.m. (1558 GMT); it touched its highest level in three weeks. U.S. West Texas Intermediate (WTI) crude futures gained $1.35, or 2.2%, to $63.37 a barrel.
The Saudi-led military coalition in Yemen carried out several air strikes on the Houthi-held capital Sanaa on Thursday after the Iranian-aligned movement claimed responsibility for drone attacks on two Saudi oil pumping stations earlier in the week.
MIDEAST STOCKS-Banks propel #Saudi, lender FAB drags #AbuDhabi - Reuters
MIDEAST STOCKS-Banks propel Saudi, lender FAB drags Abu Dhabi - Reuters:
Saudi Arabia's stock market rose for a
third straight session on Thursday, rebounding from recent
sell-offs and ahead of MSCI inclusion later this month. Abu
Dhabi was pressured by its top-lender.
On Monday, MSCI said that it would include MSCI Saudi Arabia
in its emerging-markets index, effective May 28, a move that
could draw billions of dollars into the market.
MSCI said 30 Saudi Arabian securities would be added,
representing an aggregate weight of 1.42% in the MSCI Emerging
Markets Index.
Saudi Arabia's stock market rose for a
third straight session on Thursday, rebounding from recent
sell-offs and ahead of MSCI inclusion later this month. Abu
Dhabi was pressured by its top-lender.
On Monday, MSCI said that it would include MSCI Saudi Arabia
in its emerging-markets index, effective May 28, a move that
could draw billions of dollars into the market.
MSCI said 30 Saudi Arabian securities would be added,
representing an aggregate weight of 1.42% in the MSCI Emerging
Markets Index.
Citigroup to Expand #Saudi Arabian Teams on MSCI Trading Bet - Bloomberg
Citigroup to Expand Saudi Arabian Teams on MSCI Trading Bet - Bloomberg:
Citigroup Inc. plans to hire about five more bankers in Saudi Arabia as it prepares for an expected increase in foreign investment in the kingdom’s stock exchange.
The lender is expanding its team in Riyadh after getting regulatory approval last month to start cash-equities trading and custody services, Chief Country Officer Carmen Haddad said in an interview. MSCI Inc.’s move to include Saudi stocks in emerging-market indexes will boost trading, and Citigroup wants to be ready, she said.
“We’ve had about 14-15 people on the ground and that will grow to about 20 this year,” Haddad said. “We’re very focused on equities, custody, M&A, capital market debt and equity origination, research and advisory business. We’ll add a few traders and some middle office staff this year as a result of getting the permission to provide cash equity and custody services, and those should be operational in a few months.”
Citigroup Inc. plans to hire about five more bankers in Saudi Arabia as it prepares for an expected increase in foreign investment in the kingdom’s stock exchange.
The lender is expanding its team in Riyadh after getting regulatory approval last month to start cash-equities trading and custody services, Chief Country Officer Carmen Haddad said in an interview. MSCI Inc.’s move to include Saudi stocks in emerging-market indexes will boost trading, and Citigroup wants to be ready, she said.
“We’ve had about 14-15 people on the ground and that will grow to about 20 this year,” Haddad said. “We’re very focused on equities, custody, M&A, capital market debt and equity origination, research and advisory business. We’ll add a few traders and some middle office staff this year as a result of getting the permission to provide cash equity and custody services, and those should be operational in a few months.”
In Tehran, Economic Alarm Outweighs Fear of Conflict With Trump - Bloomberg
In Tehran, Economic Alarm Outweighs Fear of Conflict With Trump - Bloomberg:
In the Motahari commercial district of central Tehran, Mohammad Mohammadzadeh is more concerned about soaring prices than the threat of war with America.
Folding a pile of documents in his empty printing shop, Mohammadzadeh lists the challenges facing his business, including a 10-fold increase in the cost of ink cartridges, and bemoans the lack of help from Iran’s government. He regards the deteriorating state of relations with the U.S. with wearied resignation.
“The U.S. just talks and talks and their words are meaningless now,” he said, as heavy traffic crawled past the banks, government offices and car showrooms lining the congested boulevard outside. “What can America do that they haven’t done before? They’ve been doing this sort of thing for 40 years.”
In the Motahari commercial district of central Tehran, Mohammad Mohammadzadeh is more concerned about soaring prices than the threat of war with America.
Folding a pile of documents in his empty printing shop, Mohammadzadeh lists the challenges facing his business, including a 10-fold increase in the cost of ink cartridges, and bemoans the lack of help from Iran’s government. He regards the deteriorating state of relations with the U.S. with wearied resignation.
“The U.S. just talks and talks and their words are meaningless now,” he said, as heavy traffic crawled past the banks, government offices and car showrooms lining the congested boulevard outside. “What can America do that they haven’t done before? They’ve been doing this sort of thing for 40 years.”
#UAE Won't Be `Baited Into Crisis' With #Iran as Tensions Mount - Bloomberg
U.A.E. Won't Be `Baited Into Crisis' With Iran as Tensions Mount - Bloomberg:
The United Arab Emirates “won’t jump the gun” to accuse Iran of sabotaging ships off its coast, a senior government official said, as rising tensions in the Gulf stoke concerns that the region is teetering on the brink of another war.
In an hour-long briefing, the U.A.E.’s minister of state for foreign affairs, Anwar Gargash, struck a cautious tone, stressing his country is “very committed to deescalation” and would exercise “caution and prudence” in a “brittle, difficult” situation. He said an investigation of the attack on the four ships, which includes Saudi and Norwegian vessels, is being conducted with the help of American and French investigators and it’s expected to be completed within days.
“We need to address Iran’s behavior clearly, but at the same time not to be baited into crisis,” Gargash said in an interview with Bloomberg Television late on Wednesday. “This is the region we live in and it’s important for us that we manage this crisis.”
The United Arab Emirates “won’t jump the gun” to accuse Iran of sabotaging ships off its coast, a senior government official said, as rising tensions in the Gulf stoke concerns that the region is teetering on the brink of another war.
In an hour-long briefing, the U.A.E.’s minister of state for foreign affairs, Anwar Gargash, struck a cautious tone, stressing his country is “very committed to deescalation” and would exercise “caution and prudence” in a “brittle, difficult” situation. He said an investigation of the attack on the four ships, which includes Saudi and Norwegian vessels, is being conducted with the help of American and French investigators and it’s expected to be completed within days.
“We need to address Iran’s behavior clearly, but at the same time not to be baited into crisis,” Gargash said in an interview with Bloomberg Television late on Wednesday. “This is the region we live in and it’s important for us that we manage this crisis.”
Nestle in talks over $10 billion sale of skin health unit to EQT, ADIA - Reuters
Nestle in talks over $10 billion sale of skin health unit to EQT, ADIA - Reuters:
Nestle SA has entered exclusive negotiations to sell its skin health business to a consortium led by EQT Partners and Abu Dhabi’s ADIA in a deal worth 10.2 billion Swiss francs ($10.12 billion), it said on Thursday.
The proposed transaction with private equity firm EQT and a unit of the Abu Dhabi Investment Authority was expected to close in the second half of 2019, pending regulatory approval, it said.
Nestle will provide an update on how it will use the proceeds and its future capital structure at that time, the world’s biggest packaged food group said in a statement.
Nestle SA has entered exclusive negotiations to sell its skin health business to a consortium led by EQT Partners and Abu Dhabi’s ADIA in a deal worth 10.2 billion Swiss francs ($10.12 billion), it said on Thursday.
The proposed transaction with private equity firm EQT and a unit of the Abu Dhabi Investment Authority was expected to close in the second half of 2019, pending regulatory approval, it said.
Nestle will provide an update on how it will use the proceeds and its future capital structure at that time, the world’s biggest packaged food group said in a statement.
Qatari banks face growing risks from real estate downturn: Fitch - Reuters
Qatari banks face growing risks from real estate downturn: Fitch - Reuters:
Qatari banks face growing pressure from high exposure to the country’s sluggish real estate market, hit by oversupply tied to preparations for its 2022 World Cup, ratings agency Fitch said.
The tiny but wealthy Gulf state has seen its rental prices slide by 20 percent over the past three years. Analysts expect these prices to fall further as a wave of projects tied to the tournament come online over the next three years.
Qatar has had the added challenge of a diplomatic and trade boycott imposed by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt since 2017. The move has hit tourism and dampened demand for real estate from foreign buyers.
Qatari banks face growing pressure from high exposure to the country’s sluggish real estate market, hit by oversupply tied to preparations for its 2022 World Cup, ratings agency Fitch said.
The tiny but wealthy Gulf state has seen its rental prices slide by 20 percent over the past three years. Analysts expect these prices to fall further as a wave of projects tied to the tournament come online over the next three years.
Qatar has had the added challenge of a diplomatic and trade boycott imposed by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt since 2017. The move has hit tourism and dampened demand for real estate from foreign buyers.
MIDEAST STOCKS-Banks lift #Saudi as all major Gulf markets rise - Reuters
MIDEAST STOCKS-Banks lift Saudi as all major Gulf markets rise - Reuters:
Saudi Arabia’s stock market rose on Thursday amid rebounding bank shares, while all major Gulf markets were lifted after recent sell-offs.
The Saudi index was up 1% in early trade with all its banks rising.
Saudi British Bank and Alawwal Bank added 2.7% and 0.7% respectively after their shareholders approved a planned merger.
Saudi Arabia’s stock market rose on Thursday amid rebounding bank shares, while all major Gulf markets were lifted after recent sell-offs.
The Saudi index was up 1% in early trade with all its banks rising.
Saudi British Bank and Alawwal Bank added 2.7% and 0.7% respectively after their shareholders approved a planned merger.
Oil prices rise for third session on Mideast tensions - Reuters
Oil prices rise for third session on Mideast tensions - Reuters:
Oil prices rose on Thursday for the third day in a row as fears of supply disruptions amid heightened tensions in the Middle East overshadowed swelling U.S. crude inventories.
Brent crude futures were at $72.30 a barrel at 0839 GMT, up 53 cents from their last close. Brent is heading for its biggest weekly rise in six weeks.
U.S. West Texas Intermediate (WTI) crude futures were at $62.49 per barrel, up 47 cents from their previous settlement.
Oil prices rose on Thursday for the third day in a row as fears of supply disruptions amid heightened tensions in the Middle East overshadowed swelling U.S. crude inventories.
Brent crude futures were at $72.30 a barrel at 0839 GMT, up 53 cents from their last close. Brent is heading for its biggest weekly rise in six weeks.
U.S. West Texas Intermediate (WTI) crude futures were at $62.49 per barrel, up 47 cents from their previous settlement.