World's Only Deflation Outpost Gets Stuck in Property Malaise - Bloomberg:
Sidelined for now in the global economy, deflation is having a second act in the Gulf.
Saudi Arabia, the only country in the world where the International Monetary Fund expected consumer prices to shrink this year, is almost certain to have company from its neighbors. Qatar has seen annual price declines for nine straight months, and the United Arab Emirates is likely to be in deflation throughout this year.
The deflationary momentum began in Saudi Arabia and the U.A.E. because the introduction of value-added tax in 2018 created a high base for comparison. But what’s kept it going is a prolonged slump in housing costs that’s now putting broader price growth into negative territory.
Monday, 17 June 2019
Largest #Saudi Stock ETF Has First Outflow on Week of Tanker Fire - Bloomberg
Largest Saudi Stock ETF Has First Outflow on Week of Tanker Fire - Bloomberg:
The largest exchange-traded fund tracking Saudi Arabian shares registered the first weekly outflow since its creation as geopolitical tension with Iran escalated.
Investors in the Invesco MSCI Saudi Arabia UCITS ETF, traded in London, pulled out about $426 million last week, a first since the fund’s inception about one year ago. The ETF has around $1.2 billion in total assets and tracks shares trading in Riyadh.
The outflow on Friday was of $211 million, a day after stock indexes across the Gulf slumped after two oil tankers were damaged near the Strait of Hormuz, with Iran later being blamed by the U.S. and the Saudi government. The negative flow added to a $215 million pullout before the attacks happened.
The largest exchange-traded fund tracking Saudi Arabian shares registered the first weekly outflow since its creation as geopolitical tension with Iran escalated.
Investors in the Invesco MSCI Saudi Arabia UCITS ETF, traded in London, pulled out about $426 million last week, a first since the fund’s inception about one year ago. The ETF has around $1.2 billion in total assets and tracks shares trading in Riyadh.
The outflow on Friday was of $211 million, a day after stock indexes across the Gulf slumped after two oil tankers were damaged near the Strait of Hormuz, with Iran later being blamed by the U.S. and the Saudi government. The negative flow added to a $215 million pullout before the attacks happened.
Etihad hires former Aer Lingus executive as new CFO - Reuters
Etihad hires former Aer Lingus executive as new CFO - Reuters:
Etihad Airways has appointed former Aer Lingus chief financial officer Andrew MacFarlane as its new group CFO, a spokesman for the Abu Dhabi airline said on Monday.
MacFarlane, who served as Aer Lingus CFO from 2009 to 2014, replaces Mark Powers who left Etihad earlier this year for personal reasons.
MacFarlane joins Etihad from state fund Abu Dhabi Investment Authority (ADIA) where he has held a non-aviation role since 2014, according to his LinkedIn page.
Etihad Airways has appointed former Aer Lingus chief financial officer Andrew MacFarlane as its new group CFO, a spokesman for the Abu Dhabi airline said on Monday.
MacFarlane, who served as Aer Lingus CFO from 2009 to 2014, replaces Mark Powers who left Etihad earlier this year for personal reasons.
MacFarlane joins Etihad from state fund Abu Dhabi Investment Authority (ADIA) where he has held a non-aviation role since 2014, according to his LinkedIn page.
Oil prices fall 1% as economic worries outweigh tanker tensions - Reuters
Oil prices fall 1% as economic worries outweigh tanker tensions - Reuters:
Oil prices fell more than 1% on Monday after more poor Chinese economic figures fanned fears of lower worldwide oil demand.
Brent crude futures lost $1.07 to settle at $60.94 a barrel, a 1.73 percent loss. U.S. West Texas Intermediate (WTI) crude futures fell 58 cents to settle at $51.93 a barrel, a 1.10 percent loss.
Prices have fallen around 20% since a 2019 high reached in April, in part due to concerns about the U.S.-China trade war and disappointing economic data.
Oil prices fell more than 1% on Monday after more poor Chinese economic figures fanned fears of lower worldwide oil demand.
Brent crude futures lost $1.07 to settle at $60.94 a barrel, a 1.73 percent loss. U.S. West Texas Intermediate (WTI) crude futures fell 58 cents to settle at $51.93 a barrel, a 1.10 percent loss.
Prices have fallen around 20% since a 2019 high reached in April, in part due to concerns about the U.S.-China trade war and disappointing economic data.
French court sees no 'clear and illegal disruption' in Gulf sports piracy case - Reuters
French court sees no 'clear and illegal disruption' in Gulf sports piracy case - Reuters:
A French court has ruled that pirated sports content belonging to the Qatar-based broadcaster beIN was accessible via a Saudi-based satellite operator, but said it had not found evidence of “clear and illegal disruption”, court documents seen by Reuters showed.
BeIN Media Group filed a complaint in France against Saudi-based Arabsat to try to establish, in what it said was a “credible” court, that Arabsat was carrying pirated broadcasts of global sports events to which beIN held the rights.
Several global sports bodies have threatened legal action against the pirate channel beoutQ over what they say are illegal broadcasts across the Middle East and North Africa. It is unclear who owns or operates beoutQ.
A French court has ruled that pirated sports content belonging to the Qatar-based broadcaster beIN was accessible via a Saudi-based satellite operator, but said it had not found evidence of “clear and illegal disruption”, court documents seen by Reuters showed.
BeIN Media Group filed a complaint in France against Saudi-based Arabsat to try to establish, in what it said was a “credible” court, that Arabsat was carrying pirated broadcasts of global sports events to which beIN held the rights.
Several global sports bodies have threatened legal action against the pirate channel beoutQ over what they say are illegal broadcasts across the Middle East and North Africa. It is unclear who owns or operates beoutQ.
India says #UAE assures supply of oil, LPG despite tanker attacks - Reuters
India says UAE assures supply of oil, LPG despite tanker attacks - Reuters:
UAE’s Minister of State and ADNOC Group CEO Sultan Ahmed Al Jaber has assured India of uninterrupted supply of oil and liquefied petroleum gas despite disruptions in the Strait of Hormuz, Indian oil minister Dharmendra Pradhan said on Monday.
He said he discussed collaboration between India and the UAE during a telephone conversation with Jaber.
Attacks on two oil tankers last week raised concerns about potential supply disruptions as a fifth of the world’s oil passes through the Strait of Hormuz.
UAE’s Minister of State and ADNOC Group CEO Sultan Ahmed Al Jaber has assured India of uninterrupted supply of oil and liquefied petroleum gas despite disruptions in the Strait of Hormuz, Indian oil minister Dharmendra Pradhan said on Monday.
He said he discussed collaboration between India and the UAE during a telephone conversation with Jaber.
Attacks on two oil tankers last week raised concerns about potential supply disruptions as a fifth of the world’s oil passes through the Strait of Hormuz.
UPDATE 1-U.S. shale oil output to rise to record 8.52 mln bpd in July -EIA - Reuters
UPDATE 1-U.S. shale oil output to rise to record 8.52 mln bpd in July -EIA - Reuters:
U.S. oil output from seven major shale formations is expected to rise by about 70,000 barrels per day (bpd) in July to a record 8.52 million bpd, the U.S. Energy Information Administration said in its monthly drilling productivity report on Monday.
The largest change is forecast in the Permian Basin of Texas and New Mexico, where output is expected to climb by 55,000 bpd to a fresh peak at 4.23 million bpd in July.
Production in North Dakota and Montana’s Bakken shale basin is also expected to climb by 11,000 bpd to a record 1.44 million bpd, the data showed. Output from the nearby Niobrara basin is expected to rise by 10,000 bpd to a record high of nearly 730,000 bpd.
U.S. oil output from seven major shale formations is expected to rise by about 70,000 barrels per day (bpd) in July to a record 8.52 million bpd, the U.S. Energy Information Administration said in its monthly drilling productivity report on Monday.
The largest change is forecast in the Permian Basin of Texas and New Mexico, where output is expected to climb by 55,000 bpd to a fresh peak at 4.23 million bpd in July.
Production in North Dakota and Montana’s Bakken shale basin is also expected to climb by 11,000 bpd to a record 1.44 million bpd, the data showed. Output from the nearby Niobrara basin is expected to rise by 10,000 bpd to a record high of nearly 730,000 bpd.
#Saudi Energy Minister calls for collective effort to secure shipping lanes - Reuters
Saudi Energy Minister calls for collective effort to secure shipping lanes - Reuters:
Saudi Arabian Energy Minister Khalid al-Falih said on Monday that countries need to cooperate on keeping shipping lanes open for oil and other energy supplies after last week’s tanker attacks in the Middle East to ensure stable supplies.
While he did not outline any concrete steps after the attacks that damaged two tankers on June 13, Falih said the kingdom would do everything necessary to ensure safe passage of energy from Saudi Arabia and its allies in the region.
“We’ll protect our own infrastructure, our own territories and we are doing that despite the attempts to target some of our facilities,” Falih told reporters in Tokyo.
Saudi Arabian Energy Minister Khalid al-Falih said on Monday that countries need to cooperate on keeping shipping lanes open for oil and other energy supplies after last week’s tanker attacks in the Middle East to ensure stable supplies.
While he did not outline any concrete steps after the attacks that damaged two tankers on June 13, Falih said the kingdom would do everything necessary to ensure safe passage of energy from Saudi Arabia and its allies in the region.
“We’ll protect our own infrastructure, our own territories and we are doing that despite the attempts to target some of our facilities,” Falih told reporters in Tokyo.
#Qatar Airways not affected by rising Mideast tensions: CEO - Reuters
Qatar Airways not affected by rising Mideast tensions: CEO - Reuters:
Qatar Airways chief executive Akbar al-Baker said on Monday rising tensions in the Middle East were not affecting the airline, adding geopolitical strains were nothing it hadn’t seen before.
Recent attacks on tankers in Gulf waters have raised fears of a broader confrontation in the region where the United States has boosted its military presence over perceived Iranian threats.
“We have always been used to such trumped up tensions in our region. Qatar Airways at the moment is not affected and I don’t think it will be affected either,” al-Baker told Reuters in an interview at the Paris Airshow.
Qatar Airways chief executive Akbar al-Baker said on Monday rising tensions in the Middle East were not affecting the airline, adding geopolitical strains were nothing it hadn’t seen before.
Recent attacks on tankers in Gulf waters have raised fears of a broader confrontation in the region where the United States has boosted its military presence over perceived Iranian threats.
“We have always been used to such trumped up tensions in our region. Qatar Airways at the moment is not affected and I don’t think it will be affected either,” al-Baker told Reuters in an interview at the Paris Airshow.
Oil prices fall 1% as economic worries outweigh tanker tensions - Reuters
Oil prices fall 1% as economic worries outweigh tanker tensions - Reuters:
Oil prices slipped more than 1% on Monday as signs of an economic slowdown amid international trade disputes began to outweigh supply fears stoked by attacks on oil tankers in the Gulf of Oman last week.
Brent futures were down 68 cents, or 1.1%, to $61.33 a barrel at 1140 GMT, having gained 1.1% on Friday.
U.S. West Texas Intermediate (WTI) crude futures were down 58 cents, or 1.1%, at $51.93, having firmed by 0.4% in the previous session.
Oil prices slipped more than 1% on Monday as signs of an economic slowdown amid international trade disputes began to outweigh supply fears stoked by attacks on oil tankers in the Gulf of Oman last week.
Brent futures were down 68 cents, or 1.1%, to $61.33 a barrel at 1140 GMT, having gained 1.1% on Friday.
U.S. West Texas Intermediate (WTI) crude futures were down 58 cents, or 1.1%, at $51.93, having firmed by 0.4% in the previous session.
MIDEAST STOCKS- #Saudi snaps losing streak, other Gulf markets mixed - Reuters
MIDEAST STOCKS-Saudi snaps losing streak, other Gulf markets mixed - Reuters:
The Saudi market rose moderately on
Monday, recovering some losses from previous sessions with most
of its stocks gaining. Other indexes in the Gulf were mixed with
Abu Dhabi and Qatar extending losses following last week’s oil
tanker attacks.
The United States blamed Iran for attacks on two tankers in
the Gulf of Oman on Thursday raising fears of a new U.S.-Iranian
confrontation. Tehran denied the allegation.
Saudi Crown Prince Mohammed bin Salman on Saturday urged the
international community to take a "decisive stand" but said
Riyadh does not want a war.
The Saudi market rose moderately on
Monday, recovering some losses from previous sessions with most
of its stocks gaining. Other indexes in the Gulf were mixed with
Abu Dhabi and Qatar extending losses following last week’s oil
tanker attacks.
The United States blamed Iran for attacks on two tankers in
the Gulf of Oman on Thursday raising fears of a new U.S.-Iranian
confrontation. Tehran denied the allegation.
Saudi Crown Prince Mohammed bin Salman on Saturday urged the
international community to take a "decisive stand" but said
Riyadh does not want a war.
#Kuwait Stocks 'Attractive,' Franklin Templeton Says – Bloomberg
Kuwait Stocks 'Attractive,' Franklin Templeton Says – Bloomberg:
Bassel Khatoun, managing director for frontier and MENA equities at Franklin Templeton, talks about Saudi Arabian, Kuwait, and Dubai stocks. He speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Bassel Khatoun, managing director for frontier and MENA equities at Franklin Templeton, talks about Saudi Arabian, Kuwait, and Dubai stocks. He speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
MIDEAST DEBT- #Kuwait, #Oman wealth funds being depleted to finance deficits - Reuters
MIDEAST DEBT-Kuwait, Oman wealth funds being depleted to finance deficits - Reuters:
Kuwait and Oman will run down their wealth funds to finance fiscal deficits this year, sources and analysts said, as their access to international debt markets is impaired by lack of a legal framework in Kuwait and higher borrowing costs for Oman.
The two states sit at opposite ends of the wealth spectrum in the Gulf. Major oil exporter Kuwait was among the least hit when oil prices sank in 2014-2015. Oman, a small producer, saw its finances crippled.
Oman is expected to issue up to $2 billion in bonds soon, a test of its access to external funding after Moody’s downgraded it to junk earlier this year, the latest global rating agency to do so.
Kuwait and Oman will run down their wealth funds to finance fiscal deficits this year, sources and analysts said, as their access to international debt markets is impaired by lack of a legal framework in Kuwait and higher borrowing costs for Oman.
The two states sit at opposite ends of the wealth spectrum in the Gulf. Major oil exporter Kuwait was among the least hit when oil prices sank in 2014-2015. Oman, a small producer, saw its finances crippled.
Oman is expected to issue up to $2 billion in bonds soon, a test of its access to external funding after Moody’s downgraded it to junk earlier this year, the latest global rating agency to do so.
#Iran, Russia talks raise hopes of progress on OPEC+ meeting date - Reuters
Iran, Russia talks raise hopes of progress on OPEC+ meeting date - Reuters:
Iran’s oil minister is scheduled to meet his Russian counterpart in Iran later on Monday, industry sources said, raising hopes of progress in resolving a month-long impasse over when OPEC and its allies will hold their next policy gathering.
The Organization of the Petroleum Exporting Countries and partners including Russia, an alliance known as OPEC+, have been considering since last month moving the date of their policy meeting in Vienna to July 3-4 from June 25-26.
Russia’s Alexander Novak favors postponing the meeting to early July to avoid clashing with G20 discussions in Japan in late June, while the Iranian minister, Bijan Zanganeh, wants to keep the original schedule, sources have said.
Iran’s oil minister is scheduled to meet his Russian counterpart in Iran later on Monday, industry sources said, raising hopes of progress in resolving a month-long impasse over when OPEC and its allies will hold their next policy gathering.
The Organization of the Petroleum Exporting Countries and partners including Russia, an alliance known as OPEC+, have been considering since last month moving the date of their policy meeting in Vienna to July 3-4 from June 25-26.
Russia’s Alexander Novak favors postponing the meeting to early July to avoid clashing with G20 discussions in Japan in late June, while the Iranian minister, Bijan Zanganeh, wants to keep the original schedule, sources have said.
The Latest: Iranian president urges EU to save nuclear deal
The Latest: Iranian president urges EU to save nuclear deal:
Iranian President Hassan Rouhani is warning that there’s a limited time to save the country’s nuclear deal with world powers.
Rouhani made the comment on Monday while meeting the new French ambassador to Tehran, Philippe Thiebaud.
Rouhani’s website quoted him as saying that the destruction of the deal was not in anyone’s interests.
Iranian President Hassan Rouhani is warning that there’s a limited time to save the country’s nuclear deal with world powers.
Rouhani made the comment on Monday while meeting the new French ambassador to Tehran, Philippe Thiebaud.
Rouhani’s website quoted him as saying that the destruction of the deal was not in anyone’s interests.
Oil prices slip as economic worries outweigh tanker tensions - Reuters
Oil prices slip as economic worries outweigh tanker tensions - Reuters:
Oil prices slipped on Monday as signs of an economic slowdown amid international trade disputes began to outweigh supply fears that were stoked by attacks on oil tankers in the Gulf of Oman last week and sent prices higher.
Brent futures fell 25 cents, or 0.4%, to $61.76 a barrel by 0750 GMT, having gained 1.1% on Friday.
U.S. West Texas Intermediate (WTI) crude futures were down 22 cents, or 0.4%, at $52.29, having firmed by 0.4% in the previous session.
Oil prices slipped on Monday as signs of an economic slowdown amid international trade disputes began to outweigh supply fears that were stoked by attacks on oil tankers in the Gulf of Oman last week and sent prices higher.
Brent futures fell 25 cents, or 0.4%, to $61.76 a barrel by 0750 GMT, having gained 1.1% on Friday.
U.S. West Texas Intermediate (WTI) crude futures were down 22 cents, or 0.4%, at $52.29, having firmed by 0.4% in the previous session.
MIDEAST STOCKS-Banks lift #Saudi stocks; other major Gulf markets mixed - Reuters
MIDEAST STOCKS-Banks lift Saudi stocks; other major Gulf markets mixed - Reuters:
Saudi Arabia’s stock market rebounded on Monday, led by its banking shares, while other major Gulf stocks were mixed after last week’s oil tanker attacks.
The United States blamed Iran for attacks on two tankers in the Gulf of Oman on Thursday, driving up oil prices and raising fears of a new U.S.-Iranian confrontation. Tehran denied the allegation.
Saudi Crown Prince Mohammed bin Salman on Saturday urged the international community to take a “decisive stand” but said Riyadh does not want a war.
Saudi Arabia’s stock market rebounded on Monday, led by its banking shares, while other major Gulf stocks were mixed after last week’s oil tanker attacks.
The United States blamed Iran for attacks on two tankers in the Gulf of Oman on Thursday, driving up oil prices and raising fears of a new U.S.-Iranian confrontation. Tehran denied the allegation.
Saudi Crown Prince Mohammed bin Salman on Saturday urged the international community to take a “decisive stand” but said Riyadh does not want a war.
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