Oil climbs over $1/bbl on U.S.-China trade deal hopes, Mideast tension - Reuters:
Oil prices rose more than $1 a barrel on Tuesday after news that China and the United States were resuming trade talks ahead of a meeting at the G20 summit later this month, spurring hopes that the two countries would resolve an ongoing trade war.
Rising tensions in the Middle East after last week’s tanker attacks, with the U.S. planning to send more troops to the Middle East, also lent support.
U.S. West Texas Intermediate crude futures rose $1.97, or 3.8%, to settle at $53.90 a barrel. Brent crude futures gained $1.20, or 2%, to settle at $62.14 a barrel.
Tuesday, 18 June 2019
Moody's Warns of `Funding Squeeze' in #Oman as Bank Deposits Lag - Bloomberg
Moody's Warns of `Funding Squeeze' in Oman as Bank Deposits Lag - Bloomberg:
Growth in Oman’s bank deposits is expected to lag in the next 12 to 18 months as lower oil prices constrain government finances, according to Moody’s Investors Service.
The sultanate, where the public sector makes up more than a third of all deposits -- the highest share in the Gulf -- will probably face a continued “funding squeeze,” the rating company said in a statement on Tuesday. Given the pressure on public finances, “the risk of a slow and progressive erosion” in government deposits is on the rise, it said.
“Project financing, corporate expansion and strong mortgage demand are driving lending growth, but deposits - primarily from the government - will lag,” said Mik Kabeya, an analyst at Moody’s. “The smallest banks will feel the impact most in higher funding costs and reduced profits.”
Growth in Oman’s bank deposits is expected to lag in the next 12 to 18 months as lower oil prices constrain government finances, according to Moody’s Investors Service.
The sultanate, where the public sector makes up more than a third of all deposits -- the highest share in the Gulf -- will probably face a continued “funding squeeze,” the rating company said in a statement on Tuesday. Given the pressure on public finances, “the risk of a slow and progressive erosion” in government deposits is on the rise, it said.
“Project financing, corporate expansion and strong mortgage demand are driving lending growth, but deposits - primarily from the government - will lag,” said Mik Kabeya, an analyst at Moody’s. “The smallest banks will feel the impact most in higher funding costs and reduced profits.”
From gas in Russia to China-bound plastics, Austria's OMV shifts focus for growth - Reuters
From gas in Russia to China-bound plastics, Austria's OMV shifts focus for growth - Reuters:
After years of largely banking on low-cost Russia for growth, OMV is shifting attention towards the Middle East as its chemist chief executive chases his vision of making the Austrian oil and gas group a major supplier of plastics.
OMV boss Rainer Seele has spent more than 4 billion euros ($4.5 billion) - 40% of the group’s M&A budget until 2025 - for oil and gas concessions in the region, a 15% stake in Abu Dhabi National Oil Co’s (ADNOC) refining business and a to-be-formed trading joint venture with ADNOC and Italy’s Eni.
“We want to have a fully integrated business model in Abu Dhabi - from the well via the refinery and the petrochemicals all the way to marketing and trade in international markets,” the chief of Austria’s second-largest listed company told shareholders last month.
After years of largely banking on low-cost Russia for growth, OMV is shifting attention towards the Middle East as its chemist chief executive chases his vision of making the Austrian oil and gas group a major supplier of plastics.
OMV boss Rainer Seele has spent more than 4 billion euros ($4.5 billion) - 40% of the group’s M&A budget until 2025 - for oil and gas concessions in the region, a 15% stake in Abu Dhabi National Oil Co’s (ADNOC) refining business and a to-be-formed trading joint venture with ADNOC and Italy’s Eni.
“We want to have a fully integrated business model in Abu Dhabi - from the well via the refinery and the petrochemicals all the way to marketing and trade in international markets,” the chief of Austria’s second-largest listed company told shareholders last month.
UPDATE 1-Gulf of Oman tensions cloud #SaudiArabia's potential euro bond sale - Reuters
UPDATE 1-Gulf of Oman tensions cloud Saudi Arabia's potential euro bond sale - Reuters:
Saudi Arabia is considering selling its first euro-denominated bonds, a government official said on Tuesday, although bankers have warned Middle East tensions could mean the kingdom pays a premium for any sale.
Debt Management Office (DMO) officials are meeting investors in Europe to provide updates on the kingdom’s diversification of its economy, as well as tap potential appetite for any future bond sales, said the DMO’s head Fahad al-Saif.
The trip, which Reuters reported was arranged by Goldman Sachs and Societe Generale, was a non-deal roadshow, he said, meaning it is not attached to any specific bond issue.
Saudi Arabia is considering selling its first euro-denominated bonds, a government official said on Tuesday, although bankers have warned Middle East tensions could mean the kingdom pays a premium for any sale.
Debt Management Office (DMO) officials are meeting investors in Europe to provide updates on the kingdom’s diversification of its economy, as well as tap potential appetite for any future bond sales, said the DMO’s head Fahad al-Saif.
The trip, which Reuters reported was arranged by Goldman Sachs and Societe Generale, was a non-deal roadshow, he said, meaning it is not attached to any specific bond issue.
MIDEAST STOCKS-Emirates NBD boosts #Dubai, all major Gulf markets gain - Agricultural Commodities - Reuters
MIDEAST STOCKS-Emirates NBD boosts Dubai, all major Gulf markets gain - Agricultural Commodities - Reuters:
Major stock markets in the Gulf rose on
Tuesday, led by financials including Emirates NBD in Dubai.
Markets have steadied after falling late last week following
attacks on tankers in the Gulf of Oman on Thursday. The attacks
raised fears of a military confrontation in a vital shipping
route for global oil supply and heightened tensions between Iran
and the United States, which have been in a standoff over Iran’s
nuclear programme.
Investor concerns have eased somewhat after both Tehran and
Riyadh said they did not want a war, but tensions in the region
remain high, making stock trading potentially volatile.
Major stock markets in the Gulf rose on
Tuesday, led by financials including Emirates NBD in Dubai.
Markets have steadied after falling late last week following
attacks on tankers in the Gulf of Oman on Thursday. The attacks
raised fears of a military confrontation in a vital shipping
route for global oil supply and heightened tensions between Iran
and the United States, which have been in a standoff over Iran’s
nuclear programme.
Investor concerns have eased somewhat after both Tehran and
Riyadh said they did not want a war, but tensions in the region
remain high, making stock trading potentially volatile.
Oil soars 4% on hopes U.S.-China trade talks resume, Mideast tension - Reuters
Oil soars 4% on hopes U.S.-China trade talks resume, Mideast tension - Reuters:
Oil prices rose about $2 a barrel on Tuesday after U.S. President Donald Trump said he would hold an extensive meeting with Chinese President Xi Jinping at the G20 summit later this month.
Tensions in the Middle East after last week’s tanker attacks, with the U.S. planning to send more troops to the Middle East, also lent support.
U.S. West Texas Intermediate crude futures rose $2.26, or 4.4%, to $54.19 a barrel by 11:11 a.m. EDT (1511 GMT). Brent crude futures rose $1.80, or 3%, to $62.74 a barrel.
“Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting,” Trump tweeted.
Oil prices rose about $2 a barrel on Tuesday after U.S. President Donald Trump said he would hold an extensive meeting with Chinese President Xi Jinping at the G20 summit later this month.
Tensions in the Middle East after last week’s tanker attacks, with the U.S. planning to send more troops to the Middle East, also lent support.
U.S. West Texas Intermediate crude futures rose $2.26, or 4.4%, to $54.19 a barrel by 11:11 a.m. EDT (1511 GMT). Brent crude futures rose $1.80, or 3%, to $62.74 a barrel.
“Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting,” Trump tweeted.
UK settles £1.3bn lawsuit with #Iran’s Bank Mellat, ending 10-year dispute | Financial Times
UK settles £1.3bn lawsuit with Iran’s Bank Mellat, ending 10-year dispute | Financial Times:
The UK has settled a £1.25bn damages lawsuit brought against it by Bank Mellat over sanctions imposed by the British government in 2009 that prevented it doing business with the UK financial sector because of its alleged links to Iran’s nuclear programme.
The two sides reached a compromise late on Monday that dealt with all outstanding matters in the claim, including costs, the Iranian bank’s representative told the High Court on Tuesday. The settlement ends a 10-year dispute that went to the Supreme Court, the UK’s highest court. The terms are confidential.
A five-week trial had been due to start at the court on Monday. But David Foxton, representing the government’s Treasury department, asked for the case to be adjourned so he could take instructions from a “very senior government official”, a statement said on Tuesday.
The UK has settled a £1.25bn damages lawsuit brought against it by Bank Mellat over sanctions imposed by the British government in 2009 that prevented it doing business with the UK financial sector because of its alleged links to Iran’s nuclear programme.
The two sides reached a compromise late on Monday that dealt with all outstanding matters in the claim, including costs, the Iranian bank’s representative told the High Court on Tuesday. The settlement ends a 10-year dispute that went to the Supreme Court, the UK’s highest court. The terms are confidential.
A five-week trial had been due to start at the court on Monday. But David Foxton, representing the government’s Treasury department, asked for the case to be adjourned so he could take instructions from a “very senior government official”, a statement said on Tuesday.
Oil prices slip for second day on global growth fears | ZAWYA MENA Edition
Oil prices slip for second day on global growth fears | ZAWYA MENA Edition:
Oil prices fell for a second day on Tuesday on signs that global economic growth is being hit by the U.S.-China trade war, though losses were capped by Middle East tensions after last week's tanker attacks.
Brent crude LCOc1 futures were trading 42 cents down at $60.52 a barrel by 0932 GMT. U.S. West Texas Intermediate crude futures lost 26 cents to $51.67.
The New York Federal Reserve on Monday said that its gauge of business growth in New York state posted a record fall this month to its weakest level in more than 2-1/2 years, suggesting an abrupt contraction in regional activity.
Oil prices fell for a second day on Tuesday on signs that global economic growth is being hit by the U.S.-China trade war, though losses were capped by Middle East tensions after last week's tanker attacks.
Brent crude LCOc1 futures were trading 42 cents down at $60.52 a barrel by 0932 GMT. U.S. West Texas Intermediate crude futures lost 26 cents to $51.67.
The New York Federal Reserve on Monday said that its gauge of business growth in New York state posted a record fall this month to its weakest level in more than 2-1/2 years, suggesting an abrupt contraction in regional activity.
#Sharjah Islamic Bank mandates banks for capital boosting sukuk - Reuters
Sharjah Islamic Bank mandates banks for capital boosting sukuk - Reuters:
United Arab Emirates’ Sharjah Islamic Bank has hired banks to arrange investor meetings ahead of an issuance of U.S. dollar-denominated sukuk, or Islamic bonds, a document by one of the banks showed on Monday.
Citi, HSBC and Standard Chartered have been hired to coordinate the deal, and they are bookrunners along with Abu Dhabi Islamic Bank, Bank ABC, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, and KFH Capital.
The planned deal will boost the bank’s Tier 1 core capital, the document showed, confirming what sources told Reuters last week.
United Arab Emirates’ Sharjah Islamic Bank has hired banks to arrange investor meetings ahead of an issuance of U.S. dollar-denominated sukuk, or Islamic bonds, a document by one of the banks showed on Monday.
Citi, HSBC and Standard Chartered have been hired to coordinate the deal, and they are bookrunners along with Abu Dhabi Islamic Bank, Bank ABC, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, and KFH Capital.
The planned deal will boost the bank’s Tier 1 core capital, the document showed, confirming what sources told Reuters last week.
OPEC+ Weighs Mid-July Meeting to Settle Dispute Over Dates - Bloomberg
OPEC+ Weighs Mid-July Meeting to Settle Dispute Over Dates - Bloomberg:
OPEC and its allies shifted focus to mid-July for the next meeting to discuss extending production cuts, after talks between Russia and Iran made some progress toward resolving a standoff over the date.
The oil producers group, which pumps more than half the world’s crude, has been bickering for a month about the timing of ministerial talks. Their failure to agree a date gives turbulent oil markets little reassurance about the future of production cuts, just as crude prices extend their slump.
After discussions with his Russian counterpart, Iran’s Oil Minister Bijan Namdar Zanganeh said he was willing to hold a meeting on July 10 to 12. While this marked some progress from his previous insistence that the group should get together next week, it was unclear whether it would resolve the impasse.
OPEC and its allies shifted focus to mid-July for the next meeting to discuss extending production cuts, after talks between Russia and Iran made some progress toward resolving a standoff over the date.
The oil producers group, which pumps more than half the world’s crude, has been bickering for a month about the timing of ministerial talks. Their failure to agree a date gives turbulent oil markets little reassurance about the future of production cuts, just as crude prices extend their slump.
After discussions with his Russian counterpart, Iran’s Oil Minister Bijan Namdar Zanganeh said he was willing to hold a meeting on July 10 to 12. While this marked some progress from his previous insistence that the group should get together next week, it was unclear whether it would resolve the impasse.
Qatar-Based BeIN Blames Piracy From #SaudiArabia for 18% Job Cut - Bloomberg
Qatar-Based BeIN Blames Piracy From Saudi Arabia for 18% Job Cut - Bloomberg:
Broadcaster BeIN Media Group has cut almost a fifth of staff at its Qatari base, citing a hit to pay-TV income from rampant piracy that it says is backed by Saudi Arabia.
The company has laid off around 300 employees in Qatar, or about 18% of the local workforce, said a person familiar with the matter, who asked not to be identified because the number isn’t public. BeIN said in a statement it had taken some “difficult decisions to right-size our business” and to reflect the impact of piracy on the company.
BeIN has grown to become a major player in sports rights from its base in the small, gas-rich Gulf state. That status is now under threat from BeoutQ, a rival operation that BeIN accuses of pirating much of its sports and entertainment content and selling it on to viewers across the Middle East.
Broadcaster BeIN Media Group has cut almost a fifth of staff at its Qatari base, citing a hit to pay-TV income from rampant piracy that it says is backed by Saudi Arabia.
The company has laid off around 300 employees in Qatar, or about 18% of the local workforce, said a person familiar with the matter, who asked not to be identified because the number isn’t public. BeIN said in a statement it had taken some “difficult decisions to right-size our business” and to reflect the impact of piracy on the company.
BeIN has grown to become a major player in sports rights from its base in the small, gas-rich Gulf state. That status is now under threat from BeoutQ, a rival operation that BeIN accuses of pirating much of its sports and entertainment content and selling it on to viewers across the Middle East.
Jet Airways' lenders to take airline to bankruptcy court | ZAWYA MENA Edition
Jet Airways' lenders to take airline to bankruptcy court | ZAWYA MENA Edition:
Lenders to India's Jet Airways plan to begin insolvency proceedings against the debt-laden carrier, a consortium of the airline's lenders said in a statement on Monday.
"After due deliberations, lenders have decided to seek resolution under IBC since only a conditional bid was received," said the lenders, referring to India's Insolvency and Bankruptcy Code.
Once India's biggest private carrier, Jet Airways was forced to stop flying in April after running out of cash. Its collapse has left thousands without jobs and pushed up air fares across the country.
Lenders to India's Jet Airways plan to begin insolvency proceedings against the debt-laden carrier, a consortium of the airline's lenders said in a statement on Monday.
"After due deliberations, lenders have decided to seek resolution under IBC since only a conditional bid was received," said the lenders, referring to India's Insolvency and Bankruptcy Code.
Once India's biggest private carrier, Jet Airways was forced to stop flying in April after running out of cash. Its collapse has left thousands without jobs and pushed up air fares across the country.
Oil prices slip for second day on global growth worries - Reuters
Oil prices slip for second day on global growth worries - Reuters:
Oil prices fell for a second day on Tuesday on signs that global economic growth is being hit by the U.S.-China trade war, although losses were limited by tensions in the Middle East after last week’s tanker attacks.
Brent crude futures were trading down 40 cents, or 0.7%, at $60.54 a barrel by 0701 GMT. They fell 1.7% in the previous session on concerns about slowing global growth.
U.S. West Texas Intermediate (WTI) crude futures were down 28 cents, or 0.5%, at $51.65. They dropped 1.1% on Monday.
Oil prices fell for a second day on Tuesday on signs that global economic growth is being hit by the U.S.-China trade war, although losses were limited by tensions in the Middle East after last week’s tanker attacks.
Brent crude futures were trading down 40 cents, or 0.7%, at $60.54 a barrel by 0701 GMT. They fell 1.7% in the previous session on concerns about slowing global growth.
U.S. West Texas Intermediate (WTI) crude futures were down 28 cents, or 0.5%, at $51.65. They dropped 1.1% on Monday.
Mideast Stocks: #Saudi extends gains; other major Gulf markets slip | ZAWYA MENA Edition
Mideast Stocks: Saudi extends gains; other major Gulf markets slip | ZAWYA MENA Edition:
Saudi stocks rose for a second straight day on Tuesday, continuing to recover after falling last week following attacks on oil tankers in the Gulf of Oman.
Investor concerns have eased somewhat after both Tehran and Riyadh said they did not want a war, but tensions in the region remain high, making stock trading potentially volatile.
The Saudi index was up 0.4 percent in early trading, but other major stock markets in the Gulf fell.
Saudi stocks rose for a second straight day on Tuesday, continuing to recover after falling last week following attacks on oil tankers in the Gulf of Oman.
Investor concerns have eased somewhat after both Tehran and Riyadh said they did not want a war, but tensions in the region remain high, making stock trading potentially volatile.
The Saudi index was up 0.4 percent in early trading, but other major stock markets in the Gulf fell.
#Qatar’s sovereign wealth fund is back in the hunt for deals | Financial Times
Qatar’s sovereign wealth fund is back in the hunt for deals | Financial Times:
Qatar’s sovereign wealth fund has signalled an ambition to reclaim its position as one of the oil-rich Gulf region’s most acquisitive investors, putting companies on notice as it hunts for new deals.
The Qatar Investment Authority is ramping up its investment plans in North America and Asia, and creating a unit to scour for opportunities in emerging markets in Latin America, Africa and Asia in an effort to snap up stakes in companies directly.
It echoes the approach that catapulted the fund on to the global stage a decade ago when it earned a reputation as an aggressive and swashbuckling investor. After a failed 2007 takeover bid for UK supermarket Sainsbury’s, the QIA purchased minority stakes in Barclays, Credit Suisse, Porsche and Volkswagen during the financial crisis.
Qatar’s sovereign wealth fund has signalled an ambition to reclaim its position as one of the oil-rich Gulf region’s most acquisitive investors, putting companies on notice as it hunts for new deals.
The Qatar Investment Authority is ramping up its investment plans in North America and Asia, and creating a unit to scour for opportunities in emerging markets in Latin America, Africa and Asia in an effort to snap up stakes in companies directly.
It echoes the approach that catapulted the fund on to the global stage a decade ago when it earned a reputation as an aggressive and swashbuckling investor. After a failed 2007 takeover bid for UK supermarket Sainsbury’s, the QIA purchased minority stakes in Barclays, Credit Suisse, Porsche and Volkswagen during the financial crisis.
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