ADS Investment Solutions launches Saudi smart beta fund | ZAWYA MENA Edition:
Abu Dhabi-based ADS Investment Solutions (ADSI) has launched a Saudi Arabian smart beta fund to meet the growing demand for exposure to the Middle East’s biggest and fastest-changing economy.
ADSI stated that the FTSE ADS Custom Minimum Variance Index was jointly created in 2018 ahead of the launch this week of the FTSE ADS Saudi Minimum Variance Fund, which tracks the index.
Ryan Lemand, the Senior Executive Officer and Board Member of ADS Investment Solutions, said, “Our wealth management and asset management clients are hungry for high-quality access to Saudi Arabian equities at a time when the economy is going through many positive changes.”
Thursday, 20 June 2019
Oil jumps 5% on Iran tension, potential U.S. fed rate cut - Reuters
Oil jumps 5% on Iran tension, potential U.S. fed rate cut - Reuters:
Oil soared more than 5% on Thursday after Iran shot down a U.S. military drone, raising fears of a military confrontation between Tehran and Washington.
Expectations that the U.S. Federal Reserve could cut interest rates at its next meeting, stimulating growth in the world’s largest oil-consuming country, and a drop in U.S. crude inventories also supported prices.
“It’s a confluence of events: there’s a looming easing cycle which is going to hit the dollar and prop up commodity prices and there are also the tensions with Iran,” said John Kilduff, a partner at Again Capital Management in New York.
The security premium built into oil prices could rise further as tensions between the U.S. and Iran heat up, he said.
Brent crude, the global benchmark, settled up $2.63, or 4.3% at $64.45 a barrel. U.S. West Texas Intermediate crude rose $2.89, or 5.4%, to $56.65 a barrel.
Oil soared more than 5% on Thursday after Iran shot down a U.S. military drone, raising fears of a military confrontation between Tehran and Washington.
Expectations that the U.S. Federal Reserve could cut interest rates at its next meeting, stimulating growth in the world’s largest oil-consuming country, and a drop in U.S. crude inventories also supported prices.
“It’s a confluence of events: there’s a looming easing cycle which is going to hit the dollar and prop up commodity prices and there are also the tensions with Iran,” said John Kilduff, a partner at Again Capital Management in New York.
The security premium built into oil prices could rise further as tensions between the U.S. and Iran heat up, he said.
Brent crude, the global benchmark, settled up $2.63, or 4.3% at $64.45 a barrel. U.S. West Texas Intermediate crude rose $2.89, or 5.4%, to $56.65 a barrel.
Exclusive: HSBC gets top adviser role in #Qatar for first time since Gulf row - sources - Reuters
Exclusive: HSBC gets top adviser role in Qatar for first time since Gulf row - sources - Reuters:
HSBC has been hired by a state-controlled port operator in Qatar, QTerminals, to coordinate a $500 million loan, sources familiar with the matter said, securing its first mandate as top adviser for a deal in Qatar since a regional rift between Doha and its neighbors erupted.
The London-listed bank — along with other lenders — was caught up in Qatar’s dispute with its neighbors Saudi Arabia, United Arab Emirates, Bahrain and Egypt, which in 2017 cut diplomatic and transport ties with Qatar accusing it of financing terrorism, a charge Doha denies.
Along with other banks, it side-stepped high-profile Qatar deals in the aftermath of the diplomatic crisis and prioritized business in Saudi Arabia, where it has a strong presence, as the kingdom promised a slate of deals as part of its efforts to open and transform the economy in an era of lower oil prices.
HSBC has been hired by a state-controlled port operator in Qatar, QTerminals, to coordinate a $500 million loan, sources familiar with the matter said, securing its first mandate as top adviser for a deal in Qatar since a regional rift between Doha and its neighbors erupted.
The London-listed bank — along with other lenders — was caught up in Qatar’s dispute with its neighbors Saudi Arabia, United Arab Emirates, Bahrain and Egypt, which in 2017 cut diplomatic and transport ties with Qatar accusing it of financing terrorism, a charge Doha denies.
Along with other banks, it side-stepped high-profile Qatar deals in the aftermath of the diplomatic crisis and prioritized business in Saudi Arabia, where it has a strong presence, as the kingdom promised a slate of deals as part of its efforts to open and transform the economy in an era of lower oil prices.
Probes and squeezed profits change the oil trading game - Reuters
Probes and squeezed profits change the oil trading game - Reuters:
For the world’s biggest oil traders, it feels like a return to the 1980s when earnings were diluted by an abundance of crude.
After three decades of stellar expansion and booming revenues, profit margins at Vitol, Glencore, Trafigura, Gunvor, Mercuria and other merchants have been squeezed by a market again awash with crude and amid stiff competition from national oil firms.
A raft of high-profile U.S. probes into trading activities are also shaking up the business, echoing the transformation that followed the 1983 U.S. indictment of Marc Rich, the godfather of global oil trading.
For the world’s biggest oil traders, it feels like a return to the 1980s when earnings were diluted by an abundance of crude.
After three decades of stellar expansion and booming revenues, profit margins at Vitol, Glencore, Trafigura, Gunvor, Mercuria and other merchants have been squeezed by a market again awash with crude and amid stiff competition from national oil firms.
A raft of high-profile U.S. probes into trading activities are also shaking up the business, echoing the transformation that followed the 1983 U.S. indictment of Marc Rich, the godfather of global oil trading.
Gulf oil producers to maintain output within OPEC target in July: sources - Reuters
Gulf oil producers to maintain output within OPEC target in July: sources - Reuters:
Gulf OPEC producers will keep their July oil production within their OPEC target despite the current global supply cut pact expiring at end of June, OPEC sources said on Thursday, a signal that the Gulf exporters are reluctant to boost supply.
Saudi Arabia, the top global oil exporter’s crude output in June will be around the same level of its May production, and its July output will remain within its obligation under the OPEC-led supply cut deal, the sources said.
Saudi oil output in May was 9.67 million bpd, according to OPEC figures. Riyadh has been pumping below its 10.3 million bpd target under the OPEC pact for the past months.
Gulf OPEC producers will keep their July oil production within their OPEC target despite the current global supply cut pact expiring at end of June, OPEC sources said on Thursday, a signal that the Gulf exporters are reluctant to boost supply.
Saudi Arabia, the top global oil exporter’s crude output in June will be around the same level of its May production, and its July output will remain within its obligation under the OPEC-led supply cut deal, the sources said.
Saudi oil output in May was 9.67 million bpd, according to OPEC figures. Riyadh has been pumping below its 10.3 million bpd target under the OPEC pact for the past months.
Oil Jumps by Most This Year as Trump Warns Iran on Drone Attack - Bloomberg
Oil Jumps by Most This Year as Trump Warns Iran on Drone Attack - Bloomberg:
Oil jumped the most this year after Iran shot down a U.S. drone and Donald Trump warned the Persian Gulf nation it made “a very big mistake,” stoking tensions in the epicenter of global crude production.
Futures climbed as much as 6.1% in New York, after the drone downing, which came a week after two oil tankers were attacked in the region. Crude was also boosted by a rally for equities after the U.S. Federal Reserve signaled it’s ready to lower interest rates for the first time since 2008.
After slipping into a bear market earlier this month, U.S. oil futures have surged almost 10% over the last week, as America and Saudi Arabia blamed Iran for a series of attacks while the Trump administration tightens sanctions on Iranian crude. Word that Trump and Chinese President Xi Jinping are set to resume trade talks at the G-20 summit in Japan have also improved sentiments about global growth.
Oil jumped the most this year after Iran shot down a U.S. drone and Donald Trump warned the Persian Gulf nation it made “a very big mistake,” stoking tensions in the epicenter of global crude production.
Futures climbed as much as 6.1% in New York, after the drone downing, which came a week after two oil tankers were attacked in the region. Crude was also boosted by a rally for equities after the U.S. Federal Reserve signaled it’s ready to lower interest rates for the first time since 2008.
After slipping into a bear market earlier this month, U.S. oil futures have surged almost 10% over the last week, as America and Saudi Arabia blamed Iran for a series of attacks while the Trump administration tightens sanctions on Iranian crude. Word that Trump and Chinese President Xi Jinping are set to resume trade talks at the G-20 summit in Japan have also improved sentiments about global growth.
#Iran Tensions Expose Oil Sea Change in the Persian Gulf - Bloomberg
Iran Tensions Expose Oil Sea Change in the Persian Gulf - Bloomberg:
“It is not the role of the United States to take the lead in protecting neutral shipping in the [Persian] Gulf.” 1
That was George Shultz, President Ronald Reagan’s Secretary of State, arguing in early 1987 against granting a request from Kuwait to reflag its oil tankers as American and gain protection from Iran during the so-called “Tanker War.” Shultz didn’t prevail. The reflagging and U.S. Navy convoy operation known as Earnest Will kicked off within months.
Tensions in the Persian Gulf are high once again; the latest incident involves an unmanned drone being shot down. Earlier this week, Air Force General Paul Selva, the vice chairman of the Joint Chiefs of Staff, said something to a group of reporters gathered in Washington that echoed Shultz, as reported in Defense News:
“It is not the role of the United States to take the lead in protecting neutral shipping in the [Persian] Gulf.” 1
That was George Shultz, President Ronald Reagan’s Secretary of State, arguing in early 1987 against granting a request from Kuwait to reflag its oil tankers as American and gain protection from Iran during the so-called “Tanker War.” Shultz didn’t prevail. The reflagging and U.S. Navy convoy operation known as Earnest Will kicked off within months.
Tensions in the Persian Gulf are high once again; the latest incident involves an unmanned drone being shot down. Earlier this week, Air Force General Paul Selva, the vice chairman of the Joint Chiefs of Staff, said something to a group of reporters gathered in Washington that echoed Shultz, as reported in Defense News:
#UAE banks' net margins hit by higher funding costs | ZAWYA MENA Edition
UAE banks' net margins hit by higher funding costs | ZAWYA MENA Edition:
Demand for new loans outstripped deposit growth at nine of the 10 listed banks in the United Arab Emirates in the first quarter of 2019, according to a new report.
The UAE Banking Pulse report from financial services consultancy Alvarez and Marsal found that the combined loan-to-deposit ratio for the 10 lenders increased to 88.3 percent by the end of March - up from 86.4 percent at the end of 2018.
Loans and advance grew by 1.54 percent during the quarter, compared to 0.5 percent during the last three months of 2018. However, deposits shrank by 0.67 percent, compared to a 1.77 percent growth during prior quarter.
Demand for new loans outstripped deposit growth at nine of the 10 listed banks in the United Arab Emirates in the first quarter of 2019, according to a new report.
The UAE Banking Pulse report from financial services consultancy Alvarez and Marsal found that the combined loan-to-deposit ratio for the 10 lenders increased to 88.3 percent by the end of March - up from 86.4 percent at the end of 2018.
Loans and advance grew by 1.54 percent during the quarter, compared to 0.5 percent during the last three months of 2018. However, deposits shrank by 0.67 percent, compared to a 1.77 percent growth during prior quarter.
Mideast Stocks: Most of Gulf rises as oil rallies but Saudi extends losses | ZAWYA MENA Edition
Mideast Stocks: Most of Gulf rises as oil rallies but Saudi extends losses | ZAWYA MENA Edition:
Most major Gulf markets rallied for the third straight session on Thursday as oil prices rose, and rekindled U.S-China trade talks also cheered investors mood, while Saudi extended losses on worsening regional geopolitical tensions.
Oil prices rose by more than 3% to above $63 a barrel after Iran shot down a U.S. military drone, raising fears of a military confrontation between Tehran and Washington.
Whereas China and the United States are rekindling trade talks ahead of a meeting next week between Presidents Donald Trump and Xi Jinping, cheering financial markets on hopes that an escalating trade war between the two countries would abate.
Most major Gulf markets rallied for the third straight session on Thursday as oil prices rose, and rekindled U.S-China trade talks also cheered investors mood, while Saudi extended losses on worsening regional geopolitical tensions.
Oil prices rose by more than 3% to above $63 a barrel after Iran shot down a U.S. military drone, raising fears of a military confrontation between Tehran and Washington.
Whereas China and the United States are rekindling trade talks ahead of a meeting next week between Presidents Donald Trump and Xi Jinping, cheering financial markets on hopes that an escalating trade war between the two countries would abate.
Health Check of #UAE Banks – Bloomberg
Health Check of U.A.E. Banks – Bloomberg:
Saeeda Jaffar, managing director and Middle East co-head at Alvarez & Marsal, discusses the health of U.A.E.'s banking industry. She speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Saeeda Jaffar, managing director and Middle East co-head at Alvarez & Marsal, discusses the health of U.A.E.'s banking industry. She speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Lebanon's Bonds Enter Danger Zone as Budget Crisis Drags On - Bloomberg
Lebanon's Bonds Enter Danger Zone as Budget Crisis Drags On - Bloomberg:
Lebanon’s Eurobonds have entered distressed territory as a budget delay and rising political tension in the region complicate efforts to tackle the nation’s fiscal crisis.
The average extra yield investors demand to hold the Arab nation’s debt over U.S. Treasuries climbed to a 10-year high of 946 basis points this week. Among emerging markets not in default, only Zambia and Argentina have wider spreads, according to a Bloomberg Barclays index.
Some of Lebanon’s dollar securities, including those maturing in 2022 and 2023, already have spreads above 1,000 basis points.
Lebanon’s Eurobonds have entered distressed territory as a budget delay and rising political tension in the region complicate efforts to tackle the nation’s fiscal crisis.
The average extra yield investors demand to hold the Arab nation’s debt over U.S. Treasuries climbed to a 10-year high of 946 basis points this week. Among emerging markets not in default, only Zambia and Argentina have wider spreads, according to a Bloomberg Barclays index.
Some of Lebanon’s dollar securities, including those maturing in 2022 and 2023, already have spreads above 1,000 basis points.
Oil Surges After #Iran Downs U.S. Drone and Fed Signals Rate Cut - Bloomberg
Oil Surges After Iran Downs U.S. Drone and Fed Signals Rate Cut - Bloomberg:
Oil rose after Iran said it shot down a U.S. spy drone in its airspace, stoking Middle East tensions further after the attack on two tankers last week, while a more dovish stance from the Federal Reserve lifted financial markets.
Futures climbed as much as 3.3% in New York. The reported drone downing follows a missile strike by Yemeni rebels overnight on Saudi Arabia. The Fed’s readiness to lower interest rates for the first time since 2008 boosted stock markets and weakened the dollar, spurring demand for commodities priced in the U.S. currency. Oil also gained after U.S. government data showed inventories declined by 3.1 million barrels last week, more than analysts had estimated.
Crude spiked as much as 4.5% a week ago after two oil tankers were attacked near the Strait of Hormuz, with the U.S. and Saudi Arabia blaming Iran for the assault. Still, swelling American inventories and a deepening U.S.-China trade war have dented the demand outlook and weighed on prices over the past two months. Washington and Beijing are set to resume talks next week at the G-20 summit in Osaka.
Oil rose after Iran said it shot down a U.S. spy drone in its airspace, stoking Middle East tensions further after the attack on two tankers last week, while a more dovish stance from the Federal Reserve lifted financial markets.
Futures climbed as much as 3.3% in New York. The reported drone downing follows a missile strike by Yemeni rebels overnight on Saudi Arabia. The Fed’s readiness to lower interest rates for the first time since 2008 boosted stock markets and weakened the dollar, spurring demand for commodities priced in the U.S. currency. Oil also gained after U.S. government data showed inventories declined by 3.1 million barrels last week, more than analysts had estimated.
Crude spiked as much as 4.5% a week ago after two oil tankers were attacked near the Strait of Hormuz, with the U.S. and Saudi Arabia blaming Iran for the assault. Still, swelling American inventories and a deepening U.S.-China trade war have dented the demand outlook and weighed on prices over the past two months. Washington and Beijing are set to resume talks next week at the G-20 summit in Osaka.
DIFC employees to get 50% of salary as basic | ZAWYA MENA Edition
DIFC employees to get 50% of salary as basic | ZAWYA MENA Edition:
Employers at the Dubai International Financial Centre (DIFC) can no longer issue job contracts with less than 50 per cent of pay as 'basic salary' and indicating the rest as 'allowances' - a wage structure that has been causing employees to lose a significant portion of their end-of-service gratuity.
Enacted on May 30, the DIFC's new employment law ensures that employers are giving at least 50 per cent basic salary. It is a rule that has been based on workers' experiences.
Lawyer Shiraz Sethi, who has helped draft the law, told Khaleej Times that he had dealt with many cases at a pro-bono clinic where low-income workers, such as delivery drivers and waiters, were being given Dh500 as basic salary and a large proportion as allowance.
Employers at the Dubai International Financial Centre (DIFC) can no longer issue job contracts with less than 50 per cent of pay as 'basic salary' and indicating the rest as 'allowances' - a wage structure that has been causing employees to lose a significant portion of their end-of-service gratuity.
Enacted on May 30, the DIFC's new employment law ensures that employers are giving at least 50 per cent basic salary. It is a rule that has been based on workers' experiences.
Lawyer Shiraz Sethi, who has helped draft the law, told Khaleej Times that he had dealt with many cases at a pro-bono clinic where low-income workers, such as delivery drivers and waiters, were being given Dh500 as basic salary and a large proportion as allowance.
MIDEAST STOCKS- #Saudi shares fall as U.S.-Iran tensions worsen; real estate lifts #Dubai - Reuters
MIDEAST STOCKS-Saudi shares fall as U.S.-Iran tensions worsen; real estate lifts Dubai - Reuters:
Saudi Arabia’s stock market fell on Thursday amid escalating tensions in the Middle East after a U.S. drone was shot down by Iranian missile, while Dubai rose on back of its real estate shares.
Fears of a major military confrontation grew after the attack on the drone, which Iran’s Revolutionary Guards said on Thursday was flying over southern Iran.
The threat of a confrontation has increased since attacks on two oil tankers in the Gulf of Oman last week and on four tankers off the United Arab Emirates on May 12, both near the Strait of Hormuz, a major conduit for global oil supplies.
Saudi Arabia’s stock market fell on Thursday amid escalating tensions in the Middle East after a U.S. drone was shot down by Iranian missile, while Dubai rose on back of its real estate shares.
Fears of a major military confrontation grew after the attack on the drone, which Iran’s Revolutionary Guards said on Thursday was flying over southern Iran.
The threat of a confrontation has increased since attacks on two oil tankers in the Gulf of Oman last week and on four tankers off the United Arab Emirates on May 12, both near the Strait of Hormuz, a major conduit for global oil supplies.
#Saudi Aramco battles energy ministry over expenses | Financial Times
Saudi Aramco battles energy ministry over expenses | Financial Times:
Saudi Aramco is taking steps to clarify its financial links with the kingdom’s energy ministry in a move designed to shield the state oil company from legal risks and head off investor criticism ahead of a potential listing.
One of the thorniest issues involves reining in the company’s tradition of paying for ministerial expenses — including those incurred by current energy minister Khalid Al Falih, who is also Aramco’s chairman, said people with knowledge of the initiative, speaking on the condition of anonymity. The move is part of a broader push to improve governance and draw a line between the finances of the company and the ministry, which could force Mr Falih to step down as chairman, according to four of them.
For years, Aramco — which reported net income of $111bn last year, making it the world’s most profitable oil company — has paid for ministry-related expenses, generously supplementing a finance ministry budget allocation. This includes Mr Falih’s stays in ultra-luxury hotel suites and the use of one of the company’s Gulfstream jets, as well as salaries of some government staff.
Saudi Aramco is taking steps to clarify its financial links with the kingdom’s energy ministry in a move designed to shield the state oil company from legal risks and head off investor criticism ahead of a potential listing.
One of the thorniest issues involves reining in the company’s tradition of paying for ministerial expenses — including those incurred by current energy minister Khalid Al Falih, who is also Aramco’s chairman, said people with knowledge of the initiative, speaking on the condition of anonymity. The move is part of a broader push to improve governance and draw a line between the finances of the company and the ministry, which could force Mr Falih to step down as chairman, according to four of them.
For years, Aramco — which reported net income of $111bn last year, making it the world’s most profitable oil company — has paid for ministry-related expenses, generously supplementing a finance ministry budget allocation. This includes Mr Falih’s stays in ultra-luxury hotel suites and the use of one of the company’s Gulfstream jets, as well as salaries of some government staff.
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