Uncertainty clouds UAE businessman’s bid for Newcastle Utd | Financial Times:
Sheikh Khaled bin Zayed Al Nahyan, a member of a United Arab Emirates’ ruling family, has announced he is in talks to buy English Premier League club Newcastle United, becoming the latest Gulf investor to show interest in entering European football.
Newcastle was put up for sale by its owner Mike Ashley, the British retail magnate, two years ago and has been subject to a number of bids from several parties over that time without success. The founder of Sports Direct had been seeking a deal that would value the club at up to £300m, according to people familiar with previous talks to buy the club.
On Tuesday, however, there remained confusion as to whether Mr Ashley had accepted Sheikh Khaled’s approach or how close a deal was to completion.
Tuesday 28 May 2019
U.S. oil prices up as flooding hits Cushing hub - Reuters
U.S. oil prices up as flooding hits Cushing hub - Reuters:
U.S. crude futures gained almost 1% on Tuesday after flooding throughout the Midwest constrained crude flow from the main U.S. storage hub in Cushing, Oklahoma.
U.S. West Texas Intermediate (WTI) futures settled at $59.14 a barrel, up 51 cents, or 0.9%, from its close on Friday before the long Memorial Day holiday weekend.
“Flooding seems to have impacted distribution hubs around the United States, slowing stuff coming out of Cushing and creating a bid on WTI,” said Phillip Streible, senior market strategist at RJO Futures in Chicago.
U.S. crude futures gained almost 1% on Tuesday after flooding throughout the Midwest constrained crude flow from the main U.S. storage hub in Cushing, Oklahoma.
U.S. West Texas Intermediate (WTI) futures settled at $59.14 a barrel, up 51 cents, or 0.9%, from its close on Friday before the long Memorial Day holiday weekend.
“Flooding seems to have impacted distribution hubs around the United States, slowing stuff coming out of Cushing and creating a bid on WTI,” said Phillip Streible, senior market strategist at RJO Futures in Chicago.
Oil Rises as Supply Risks Ripple Through Mideast, Great Plains - Bloomberg
Oil Rises as Supply Risks Ripple Through Mideast, Great Plains - Bloomberg:
Oil climbed for a second day as supply risks from the Middle East to the U.S. Great Plains overwhelmed concerns that trade tensions will swamp energy demand.
Futures advanced as much as 1.6% in New York on Tuesday, joining a recovery in equity markets. A jump in consumer confidence fueled optimism among traders returning to work after crude logged the steepest weekly decline of 2019.
“A lot of guys looked at the washout we saw last week as an opportunity,” said Phil Streible, senior market strategist at RJO Futures Group Inc. in Chicago. “There was a lot of money on the sides with people who think oil is going to press back upwards.”
Oil climbed for a second day as supply risks from the Middle East to the U.S. Great Plains overwhelmed concerns that trade tensions will swamp energy demand.
Futures advanced as much as 1.6% in New York on Tuesday, joining a recovery in equity markets. A jump in consumer confidence fueled optimism among traders returning to work after crude logged the steepest weekly decline of 2019.
“A lot of guys looked at the washout we saw last week as an opportunity,” said Phil Streible, senior market strategist at RJO Futures Group Inc. in Chicago. “There was a lot of money on the sides with people who think oil is going to press back upwards.”
#Saudi Stocks Surge as Investors Prepare for MSCI Inclusion - Bloomberg
Saudi Stocks Surge as Investors Prepare for MSCI Inclusion - Bloomberg:
Shares in Saudi Arabia surged at the close as MSCI Inc. was set to begin including some of the kingdom’s shares into its main emerging-market index.
The Tadawul All Share Index rose 2% on the day, after fluctuating throughout the session, with banks contributing the most to the increase. The Tadawul trimmed this month’s losses to 8%. MSCI is set to add the kingdom to its developing country benchmark, using Tuesday’s closing prices.
Saudi Basic Industries Corp., Al Rajhi Bank, National Commercial Bank, Saudi Telecom Co. and Samba Financial Group are expected to draw the most inflows from the first stage of the MSCI inclusion. Together, they should attract about $3.5 billion from money managers passively tracking the index, according to estimates by Mohamad Al Hajj, equities strategist at EFG-Hermes in Dubai.
Shares in Saudi Arabia surged at the close as MSCI Inc. was set to begin including some of the kingdom’s shares into its main emerging-market index.
The Tadawul All Share Index rose 2% on the day, after fluctuating throughout the session, with banks contributing the most to the increase. The Tadawul trimmed this month’s losses to 8%. MSCI is set to add the kingdom to its developing country benchmark, using Tuesday’s closing prices.
Saudi Basic Industries Corp., Al Rajhi Bank, National Commercial Bank, Saudi Telecom Co. and Samba Financial Group are expected to draw the most inflows from the first stage of the MSCI inclusion. Together, they should attract about $3.5 billion from money managers passively tracking the index, according to estimates by Mohamad Al Hajj, equities strategist at EFG-Hermes in Dubai.
#UAE Cabinet cancels fees for more than 1,500 govt services | ZAWYA MENA Edition
UAE Cabinet cancels fees for more than 1,500 govt services | ZAWYA MENA Edition:
The UAE Cabinet adopted a decision to amend and waive fees for a number of federal services within the framework of Government’s effort to enhance the national economy, reduce costs to business owners and increase the competitiveness of the UAE.
The decision promotes economic growth in the UAE and it includes the amendment or cancellation of fees for more than 1,500 government services provided by the Ministry of Interior, Ministry of Economy, Ministry of Human Resources and Emiratisation.
The decision contributes to attracting more foreign investments and position the UAE a hub for business by reducing administrative costs and fees. The decision also balances the revenue system of the government in parallel with the tax system.
The UAE Cabinet adopted a decision to amend and waive fees for a number of federal services within the framework of Government’s effort to enhance the national economy, reduce costs to business owners and increase the competitiveness of the UAE.
The decision promotes economic growth in the UAE and it includes the amendment or cancellation of fees for more than 1,500 government services provided by the Ministry of Interior, Ministry of Economy, Ministry of Human Resources and Emiratisation.
The decision contributes to attracting more foreign investments and position the UAE a hub for business by reducing administrative costs and fees. The decision also balances the revenue system of the government in parallel with the tax system.
REFILE- #Saudi Real Estate Refinance Co to obtain sovereign guarantees on sukuk - Reuters
REFILE-Saudi Real Estate Refinance Co to obtain sovereign guarantees on sukuk - Reuters:
Saudi Real Estate Refinance Co (SRC), modelled on U.S. mortgage finance firm Fannie Mae, said on Tuesday it will obtain from the Ministry of Finance sovereign guarantees on its planned issues of sukuk, or Islamic bonds.
SRC, a subsidiary of Saudi Arabia’s sovereign Public Investment Fund, plans to issue 4 billion riyals ($1.07 billion) in sukuk this year, the firm’s chief executive told Reuters last month.
The bond issuance comes amid plans to purchase more home loan portfolios from mortgage financing companies and banks to boost the kingdom’s secondary mortgage market.
Saudi Real Estate Refinance Co (SRC), modelled on U.S. mortgage finance firm Fannie Mae, said on Tuesday it will obtain from the Ministry of Finance sovereign guarantees on its planned issues of sukuk, or Islamic bonds.
SRC, a subsidiary of Saudi Arabia’s sovereign Public Investment Fund, plans to issue 4 billion riyals ($1.07 billion) in sukuk this year, the firm’s chief executive told Reuters last month.
The bond issuance comes amid plans to purchase more home loan portfolios from mortgage financing companies and banks to boost the kingdom’s secondary mortgage market.
Hedge funds bang defensive drum on oil: Kemp - Reuters
Hedge funds bang defensive drum on oil: Kemp - Reuters:
Hedge funds liquidated more of their bullish petroleum positions as concerns about the health of the global economy and oil usage outweighed European and Middle Eastern supply disruptions.
But selling in the most recent week was notably lighter than in the three previous, suggesting at least some managers think prices have pulled back enough for the time being.
Positions were reported at the close on May 21, before oil prices slumped on May 23 amid fears about the economic impact of a prolonged trade conflict between China and the United States.
Hedge funds liquidated more of their bullish petroleum positions as concerns about the health of the global economy and oil usage outweighed European and Middle Eastern supply disruptions.
But selling in the most recent week was notably lighter than in the three previous, suggesting at least some managers think prices have pulled back enough for the time being.
Positions were reported at the close on May 21, before oil prices slumped on May 23 amid fears about the economic impact of a prolonged trade conflict between China and the United States.
#UAE economic growth expected at 2% in 2019 - central bank - Reuters
UAE economic growth expected at 2% in 2019 - central bank - Reuters:
The United Arab Emirates has revised downwards its expectations for economic growth in 2019, with real gross domestic product (GDP) now expected to grow 2% this year, the central bank said on Tuesday.
In its last quarterly report in March, the central bank said it expected GDP to grow 3.5%.
Economic growth coming from the oil sector is expected to be 2.7%, against 2.8% last year, because of lower oil production, the bank said in a statement.
The United Arab Emirates has revised downwards its expectations for economic growth in 2019, with real gross domestic product (GDP) now expected to grow 2% this year, the central bank said on Tuesday.
In its last quarterly report in March, the central bank said it expected GDP to grow 3.5%.
Economic growth coming from the oil sector is expected to be 2.7%, against 2.8% last year, because of lower oil production, the bank said in a statement.
#Bahrain misses key fiscal adjustment goals with 2019-2020 budget - Reuters
Bahrain misses key fiscal adjustment goals with 2019-2020 budget - Reuters:
Bahrain does not expect to meet some of the key goals it set out last year as part of a fiscal adjustment program linked to a $10 billion bailout received from its Gulf allies, a final draft of its state budget for the next two years shows.
Saudi Arabia, Kuwait and the United Arab Emirates last year pledged $10 billion in financial aid for the small Gulf oil producer as it headed for a credit crunch after piling up debt to offset the impact on revenues of lower oil prices.
The aid, however, was linked to a series of reforms aimed at eliminating Bahrain’s budget deficit by 2022.
Bahrain does not expect to meet some of the key goals it set out last year as part of a fiscal adjustment program linked to a $10 billion bailout received from its Gulf allies, a final draft of its state budget for the next two years shows.
Saudi Arabia, Kuwait and the United Arab Emirates last year pledged $10 billion in financial aid for the small Gulf oil producer as it headed for a credit crunch after piling up debt to offset the impact on revenues of lower oil prices.
The aid, however, was linked to a series of reforms aimed at eliminating Bahrain’s budget deficit by 2022.
Oil mixed as trade fears weigh despite tight supply - Reuters
Oil mixed as trade fears weigh despite tight supply - Reuters:
Oil prices were mixed on Tuesday as prices were caught between concerns over global supply and fears that the U.S.-Chinese trade conflict will hurt demand.
Brent crude fell by 9 cents, or 0.1%, to $70.02 a barrel by 1245 GMT, with prices repeatedly veering above and below $70 in choppy trading.
U.S. West Texas Intermediate (WTI) was up 47 cents, or 0.8%, at $59.10. U.S. crude futures were trading for the first time since Friday after a long holiday weekend.
Oil prices were mixed on Tuesday as prices were caught between concerns over global supply and fears that the U.S.-Chinese trade conflict will hurt demand.
Brent crude fell by 9 cents, or 0.1%, to $70.02 a barrel by 1245 GMT, with prices repeatedly veering above and below $70 in choppy trading.
U.S. West Texas Intermediate (WTI) was up 47 cents, or 0.8%, at $59.10. U.S. crude futures were trading for the first time since Friday after a long holiday weekend.
MIDEAST STOCKS- #Saudi rises to its best day in 7 months, leading Gulf rally - Reuters
MIDEAST STOCKS-Saudi rises to its best day in 7 months, leading Gulf rally - Reuters:
Saudi Arabia's stock market rose sharply
on Tuesday ahead of its introduction into the MSCI emerging
markets index after this session's close, while all major Gulf
bourses rallied.
Saudi's index rose 2% for its biggest single-day
gain since October 2018. Al Rajhi Bank increased 2.1%
and petrochemical maker Saudi Basic Industries added
2%.
The two stocks will be among the largest additions to the
MSCI emerging markets index measured by full company market
capitalization.
Saudi Arabia's stock market rose sharply
on Tuesday ahead of its introduction into the MSCI emerging
markets index after this session's close, while all major Gulf
bourses rallied.
Saudi's index rose 2% for its biggest single-day
gain since October 2018. Al Rajhi Bank increased 2.1%
and petrochemical maker Saudi Basic Industries added
2%.
The two stocks will be among the largest additions to the
MSCI emerging markets index measured by full company market
capitalization.
Iranians adjust to living under Trump’s sanctions | Financial Times
Iranians adjust to living under Trump’s sanctions | Financial Times: Today, Iran is more stable than at this time last year. This may surprise Donald Trump’s US administration, which has imposed the toughest ever sanctions against the Islamic republic over its controversial regional and defence policies. Iranians had no clue where the US’s economic war was dragging them to last year as they saw their currency plunge about 60 per cent on the open market.
But as the republic tries to rebalance the economy, people have found some certainty in the uncertainty and have acted to lessen their economic vulnerability. Their resilience and hedging against rampant inflation will make it difficult for US hawks to push Iran towards the street protests — as in the 1979 revolution — and eventual regime change that they may seek.
Perhaps the US miscalculated the level of Iranians’ disillusionment with their rulers. Maybe Americans were misguided by opposition groups. It is true that the political establishment is challenged with anti-regime slogans and claims of corruption and that protests continue, although these are small and sporadic. The economy is contracting and an army of unemployed young people think they have no future in their homeland. The hopelessness is alarming.
But as the republic tries to rebalance the economy, people have found some certainty in the uncertainty and have acted to lessen their economic vulnerability. Their resilience and hedging against rampant inflation will make it difficult for US hawks to push Iran towards the street protests — as in the 1979 revolution — and eventual regime change that they may seek.
Perhaps the US miscalculated the level of Iranians’ disillusionment with their rulers. Maybe Americans were misguided by opposition groups. It is true that the political establishment is challenged with anti-regime slogans and claims of corruption and that protests continue, although these are small and sporadic. The economy is contracting and an army of unemployed young people think they have no future in their homeland. The hopelessness is alarming.
IndiGo Targets Emirates After Indian Airline Success - Bloomberg
IndiGo Targets Emirates After Indian Airline Success - Bloomberg:
Think Emirates just had a bad year? It’s about to get a whole lot worse.
The world’s largest airline by international passengers hit an air pocket in the 12 months through April, with net income falling by more than two-thirds to its lowest level since 2002.
On the far side of the Arabian Sea, meanwhile, an upstart competitor has been limbering up. InterGlobe Aviation Ltd. looks to have flown clear of a horror year for India’s aviation industry, posting a fourfold increase in fourth-quarter profit Monday as the collapse of Jet Airways India Ltd. allowed the rest of the industry to bounce back.
Think Emirates just had a bad year? It’s about to get a whole lot worse.
The world’s largest airline by international passengers hit an air pocket in the 12 months through April, with net income falling by more than two-thirds to its lowest level since 2002.
On the far side of the Arabian Sea, meanwhile, an upstart competitor has been limbering up. InterGlobe Aviation Ltd. looks to have flown clear of a horror year for India’s aviation industry, posting a fourfold increase in fourth-quarter profit Monday as the collapse of Jet Airways India Ltd. allowed the rest of the industry to bounce back.
#Saudi Stocks Set to Join MSCI Emerging-Market Benchmarks – Bloomberg
Saudi Stocks Set to Join MSCI Emerging-Market Benchmarks – Bloomberg:
Ahmed Badr, head of equities for the Middle East, North Africa at Credit Suisse, talks about Saudi Arabian stocks. 30 equities from Saudi Arabia will join MSCI Inc.’s emerging-market stock benchmarks as of the close of trading on May 28. Badr speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Ahmed Badr, head of equities for the Middle East, North Africa at Credit Suisse, talks about Saudi Arabian stocks. 30 equities from Saudi Arabia will join MSCI Inc.’s emerging-market stock benchmarks as of the close of trading on May 28. Badr speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Lebanon's Budget Saga Closer to Resolution as Austerity Gets Nod - Bloomberg
Lebanon's Budget Saga Closer to Resolution as Austerity Gets Nod - Bloomberg:
Lebanon’s government approved its 2019 draft budget after months of delays, the latest effort to get the nation’s fiscal house in order despite public anger over cutbacks.
The proposals must now be passed by parliament, where lawmakers might fiercely resist footing the bill for decades of mismanagement of government finances. The budget sets a deficit target of 7.6% of gross domestic product for 2019, down from the current 11.4%, Finance Minister Ali Hassan Khalil said in televised remarks on Monday.
“We can maintain this number and we can improve it,” Khalil said. “We are serious in this, and it will be translated through an injection of new investment projects that will revive the economy.”
Lebanon’s government approved its 2019 draft budget after months of delays, the latest effort to get the nation’s fiscal house in order despite public anger over cutbacks.
The proposals must now be passed by parliament, where lawmakers might fiercely resist footing the bill for decades of mismanagement of government finances. The budget sets a deficit target of 7.6% of gross domestic product for 2019, down from the current 11.4%, Finance Minister Ali Hassan Khalil said in televised remarks on Monday.
“We can maintain this number and we can improve it,” Khalil said. “We are serious in this, and it will be translated through an injection of new investment projects that will revive the economy.”
Bond Demand in Gulf Compared to Stocks Is `Like Mars and Venus' - Bloomberg
Bond Demand in Gulf Compared to Stocks Is `Like Mars and Venus' - Bloomberg:
The Gulf Arab states are proving to be fertile ground for bond investors.
Yield-hungry global funds are plowing into regional bonds at the expense of local stock markets, where liquidity has dwindled following the 2014 oil-price crash. The last initial public offering in the United Arab Emirates was in 2017.
Once debt-averse, the petrostates of the Gulf have pivoted to borrowing to finance ballooning budget deficits. They’ve tried to cut capital spending and slash subsidies -- steps that helped shore up finances but spelled trouble for equity investments as austerity undermined consumer spending and credit growth.
The Gulf Arab states are proving to be fertile ground for bond investors.
Yield-hungry global funds are plowing into regional bonds at the expense of local stock markets, where liquidity has dwindled following the 2014 oil-price crash. The last initial public offering in the United Arab Emirates was in 2017.
Once debt-averse, the petrostates of the Gulf have pivoted to borrowing to finance ballooning budget deficits. They’ve tried to cut capital spending and slash subsidies -- steps that helped shore up finances but spelled trouble for equity investments as austerity undermined consumer spending and credit growth.
'It's time to tell our story': Australia's LNG industry finally fights - Russell - Reuters
'It's time to tell our story': Australia's LNG industry finally fights - Russell - Reuters:
It’s taken a while but Australia’s liquefied natural gas (LNG) industry is putting on the gloves and stepping into the ring against the activists who want to condemn it and all fossil fuels to history’s dustbin.
The central theme of virtually every speech on the opening day of the annual Australian Petroleum Production and Exploration Association (APPEA) conference was that the industry has to fight its corner and not allow environmentalists all the space in the fight for the hearts and minds of the populace.
Australia’s LNG industry is now the largest in the world by capacity, having overtaken Qatar as the last of eight new projects prepares to start up, taking the country’s annual export capacity to more than 80 million tonnes of the super-chilled fuel.
It’s taken a while but Australia’s liquefied natural gas (LNG) industry is putting on the gloves and stepping into the ring against the activists who want to condemn it and all fossil fuels to history’s dustbin.
The central theme of virtually every speech on the opening day of the annual Australian Petroleum Production and Exploration Association (APPEA) conference was that the industry has to fight its corner and not allow environmentalists all the space in the fight for the hearts and minds of the populace.
Australia’s LNG industry is now the largest in the world by capacity, having overtaken Qatar as the last of eight new projects prepares to start up, taking the country’s annual export capacity to more than 80 million tonnes of the super-chilled fuel.
MIDEAST STOCKS- #Saudi gains ahead of MSCI entry while #Qatar rises - Reuters
MIDEAST STOCKS-Saudi gains ahead of MSCI entry while Qatar rises - Reuters:
Saudi Arabia’s stock market rose on Tuesday ahead of its introduction into the MSCI emerging markets index after this session’s close, while Qatar rose sharply as most of its stocks gained.
Saudi’s index rose 0.6% in early trade. Riyad Bank added 1.9% and Al Rajhi Bank increased 0.4%.
MSCI said this month it would include MSCI Saudi Arabia in its emerging-markets index, effective from the close on May 28, a move that could draw billions of dollars into the market.
Saudi Arabia’s stock market rose on Tuesday ahead of its introduction into the MSCI emerging markets index after this session’s close, while Qatar rose sharply as most of its stocks gained.
Saudi’s index rose 0.6% in early trade. Riyad Bank added 1.9% and Al Rajhi Bank increased 0.4%.
MSCI said this month it would include MSCI Saudi Arabia in its emerging-markets index, effective from the close on May 28, a move that could draw billions of dollars into the market.
Asset managers show keener interest in #UAE funds market | ZAWYA MENA Edition
Asset managers show keener interest in UAE funds market | ZAWYA MENA Edition:
Asset managers are gearing up for growth ahead of new rules from the Emirates Securities and Commodities Authority (SCA) and the Insurance Authority (IA) that could change the investment landscape in the UAE.
The IA has signalled it will launch new rules impacting the sale of life insurance investment products, such as commission caps, cooling off periods, and transparency around fees. A third draft of the new rules was released on January 31. It comes following numerous complaints from investors about issues including onerous fees, inflexible contracts with high redemption penalties, fund churn to generate additional commission fees for advisors, and investors buying products they don’t properly understand from advisors who don’t have their best interests at heart.
But there’s expectation that the SCA will also announce that independent financial advisors (IFAs) will have to be licensed by the security authority and be compliant with SCA rules, and will only be able to wrap SCA-registered funds into life insurance products sold, Patrick Oerer, the chief executive officer of Emirates Wealth, a mutual funds distribution platform, said in a phone interview last week. A statement on the regulator’s website earlier this month said it was “studying regulating the transfer of jurisdiction over financial and monetary intermediaries”. The study is being undertaken alongside the UAE Central Bank, it added.
Asset managers are gearing up for growth ahead of new rules from the Emirates Securities and Commodities Authority (SCA) and the Insurance Authority (IA) that could change the investment landscape in the UAE.
The IA has signalled it will launch new rules impacting the sale of life insurance investment products, such as commission caps, cooling off periods, and transparency around fees. A third draft of the new rules was released on January 31. It comes following numerous complaints from investors about issues including onerous fees, inflexible contracts with high redemption penalties, fund churn to generate additional commission fees for advisors, and investors buying products they don’t properly understand from advisors who don’t have their best interests at heart.
But there’s expectation that the SCA will also announce that independent financial advisors (IFAs) will have to be licensed by the security authority and be compliant with SCA rules, and will only be able to wrap SCA-registered funds into life insurance products sold, Patrick Oerer, the chief executive officer of Emirates Wealth, a mutual funds distribution platform, said in a phone interview last week. A statement on the regulator’s website earlier this month said it was “studying regulating the transfer of jurisdiction over financial and monetary intermediaries”. The study is being undertaken alongside the UAE Central Bank, it added.
Oil mixed as China's economy weakens, but OPEC cuts still support crude | ZAWYA MENA Edition
Oil mixed as China's economy weakens, but OPEC cuts still support crude | ZAWYA MENA Edition:
Oil prices were mixed on Tuesday, pressured by a weakening economy, especially in China, yet still supported by ongoing supply cuts from producer club OPEC and U.S. sanctions against Iran and Venezuela.
Front-month Brent crude futures LCOc1 , the international benchmark for oil prices, were at $69.90 at 0106 GMT. That was 21 cents, or 0.3%, below the last session's close, when Brent rose 2.1%.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $59.03 per barrel. They did not trade on Monday due to a public holiday in the United States, but stood 40 cents, or 0.7%, higher than their last close on Friday.
Oil prices were mixed on Tuesday, pressured by a weakening economy, especially in China, yet still supported by ongoing supply cuts from producer club OPEC and U.S. sanctions against Iran and Venezuela.
Front-month Brent crude futures LCOc1 , the international benchmark for oil prices, were at $69.90 at 0106 GMT. That was 21 cents, or 0.3%, below the last session's close, when Brent rose 2.1%.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $59.03 per barrel. They did not trade on Monday due to a public holiday in the United States, but stood 40 cents, or 0.7%, higher than their last close on Friday.
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