Dubai's Jobless Recovery Adds Asterisk to Biggest Boom in Years - Bloomberg:
Dubai is getting by with less as the emirate’s economic turnaround leaves a trail of job losses.
Although business confidence is on the rise, narrowing margins are forcing companies to keep their payrolls tight as selling prices fall. An employment index compiled by Emirates NBD dropped to 49.9 last month, the lowest since February, even as the bank’s Dubai Economy Tracker continues to hover near a four-year high.
“Firms remain reluctant to boost headcount,” Khatija Haque, head of Middle East and North Africa Research at Emirates NBD, said in a report.
Tuesday, 9 July 2019
#Qatar Plans to Buy Boeing Aircraft in ‘Large’ Deal, Trump Says - Bloomberg
Qatar Plans to Buy Boeing Aircraft in ‘Large’ Deal, Trump Says - Bloomberg:
Qatar plans to purchase aircraft from Boeing Co., said President Donald Trump, who described the deal as a “large transaction” that would be signed Tuesday.
Trump didn’t indicate whether Qatar was signing a new agreement, or following up on previous agreements, including a $1.8 billion deal announced last month at the Paris Air Show for five Boeing-777 freighters. That sale wasn’t listed in Boeing’s June orders, meaning the final contracts hadn’t been signed.
“It’s a transaction that will be purchasing a lot of Boeing jets and a lot of money spent in our country and that means a lot of jobs,” Trump told reporters at the White House, where he was meeting with the emir of Qatar, Sheikh Tamim Bin Hamad Al Thani.
Qatar plans to purchase aircraft from Boeing Co., said President Donald Trump, who described the deal as a “large transaction” that would be signed Tuesday.
Trump didn’t indicate whether Qatar was signing a new agreement, or following up on previous agreements, including a $1.8 billion deal announced last month at the Paris Air Show for five Boeing-777 freighters. That sale wasn’t listed in Boeing’s June orders, meaning the final contracts hadn’t been signed.
“It’s a transaction that will be purchasing a lot of Boeing jets and a lot of money spent in our country and that means a lot of jobs,” Trump told reporters at the White House, where he was meeting with the emir of Qatar, Sheikh Tamim Bin Hamad Al Thani.
Oil Advances Ahead of Fed Testimony While Mideast Risks Linger - Bloomberg
Oil Advances Ahead of Fed Testimony While Mideast Risks Linger - Bloomberg:
Oil continued a subdued rally Tuesday as investors await guidance from the Federal Reserve and the outcome of Iran’s latest Middle East standoff.
Futures closed 0.3% higher in New York, the third straight day of tiny advances for crude amid an uncertain economic outlook. Fed Chairman Jerome Powell is scheduled to testify to Congress on Wednesday and Thursday, with many investors wondering if last week’s healthy jobs report lessened the likelihood of an interest rate cut to boost the economy.
Investors are also awaiting Wednesday’s release of weekly data on U.S. crude stockpiles. Analysts in a Bloomberg survey expect inventories to fall by 2.5 million barrels, according to a Bloomberg survey, in what would be the fourth decrease in a row.
West Texas Intermediate oil for August delivery closed 17 cents higher at $57.83 a barrel on the New York Mercantile Exchange. The contract has gained 0.3% or less each of the last three sessions. Brent for September settlement added 5 cents to $64.16 a barrel on the ICE Futures Europe Exchange.
Oil continued a subdued rally Tuesday as investors await guidance from the Federal Reserve and the outcome of Iran’s latest Middle East standoff.
Futures closed 0.3% higher in New York, the third straight day of tiny advances for crude amid an uncertain economic outlook. Fed Chairman Jerome Powell is scheduled to testify to Congress on Wednesday and Thursday, with many investors wondering if last week’s healthy jobs report lessened the likelihood of an interest rate cut to boost the economy.
Investors are also awaiting Wednesday’s release of weekly data on U.S. crude stockpiles. Analysts in a Bloomberg survey expect inventories to fall by 2.5 million barrels, according to a Bloomberg survey, in what would be the fourth decrease in a row.
West Texas Intermediate oil for August delivery closed 17 cents higher at $57.83 a barrel on the New York Mercantile Exchange. The contract has gained 0.3% or less each of the last three sessions. Brent for September settlement added 5 cents to $64.16 a barrel on the ICE Futures Europe Exchange.
The Saudi-Qatari Breach, Explained
The Saudi-Qatari Breach, Explained - Bloomberg:
When four Arab states led by Saudi Arabia cut diplomatic ties and transportation links with Qatar in June 2017, there were expectations that the rulers would resolve the spat quietly among themselves, as they did a similar dispute three years earlier. Instead, Saudi Arabia issued tough demands, Qatar refused to kowtow to its powerful Arab neighbor, and the breach hardened.
1. What’s the rift about?
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt complain about Qatar’s friendliness with Iran and accuse it of supporting terrorism, a charge the sheikdom denies. The crisis was sparked in 2017 when hackers published a story on Qatar’s news agency quoting Qatari Emir Sheikh Tamim bin Hamad Al Thani as criticizing mounting anti-Iran sentiment after a trip to the region by U.S. President Donald Trump. Qatari officials quickly deleted the comments, and appealed for calm as Saudi and U.A.E. newspapers, clerics and celebrities accused Qatar of trying to undermine efforts to isolate Iran.
When four Arab states led by Saudi Arabia cut diplomatic ties and transportation links with Qatar in June 2017, there were expectations that the rulers would resolve the spat quietly among themselves, as they did a similar dispute three years earlier. Instead, Saudi Arabia issued tough demands, Qatar refused to kowtow to its powerful Arab neighbor, and the breach hardened.
1. What’s the rift about?
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt complain about Qatar’s friendliness with Iran and accuse it of supporting terrorism, a charge the sheikdom denies. The crisis was sparked in 2017 when hackers published a story on Qatar’s news agency quoting Qatari Emir Sheikh Tamim bin Hamad Al Thani as criticizing mounting anti-Iran sentiment after a trip to the region by U.S. President Donald Trump. Qatari officials quickly deleted the comments, and appealed for calm as Saudi and U.A.E. newspapers, clerics and celebrities accused Qatar of trying to undermine efforts to isolate Iran.
Oil Gains Before Fed Chair Testimony While Mideast Risks Linger - Bloomberg
Oil Gains Before Fed Chair Testimony While Mideast Risks Linger - Bloomberg:
Oil rose to trade near $58 a barrel in New York as investors awaited guidance from the Federal Reserve on interest rates and as tensions in the Persian Gulf maintained the risk of supply disruption.
West Texas Intermediate futures added 0.8%, recouping earlier losses. Fed Chairman Jerome Powell is scheduled to testify to Congress on Wednesday and Thursday, likely giving investors clues on the path for U.S. monetary policy. Tensions in the Middle East remained high, as BP Plc kept a ship in the Persian Gulf for fear it might be seized by Iran in retaliation for British forces arresting a vessel carrying the Islamic Republic’s crude last week.
Oil rose to trade near $58 a barrel in New York as investors awaited guidance from the Federal Reserve on interest rates and as tensions in the Persian Gulf maintained the risk of supply disruption.
West Texas Intermediate futures added 0.8%, recouping earlier losses. Fed Chairman Jerome Powell is scheduled to testify to Congress on Wednesday and Thursday, likely giving investors clues on the path for U.S. monetary policy. Tensions in the Middle East remained high, as BP Plc kept a ship in the Persian Gulf for fear it might be seized by Iran in retaliation for British forces arresting a vessel carrying the Islamic Republic’s crude last week.
Aramco Awards $18 Billion in Deals for Work at Oil Fields - Bloomberg
Aramco Awards $18 Billion in Deals for Work at Oil Fields - Bloomberg:
Saudi Aramco, the world’s largest crude exporter, awarded $18 billion in contracts to boost output capacity at two offshore oil fields even as the kingdom and its OPEC partners restrict production.
Saudi Arabia’s state oil company will add a combined 550,000 barrels a day of crude-production capacity at its Marjan and Berri fields, it said Tuesday in a statement. It will raise capacity for natural gas output at the deposits by 2.5 billion standard cubic feet a day. Aramco awarded 34 contracts, with half of them going to Saudi firms, according to the statement.
McDermott International Inc., Saipem SpA of Italy, Norway-listed Subsea 7 SA, Tecnicas Reunidas SA of Spain and China Petroleum & Chemical Corp. were among the companies that won contracts, according to a photo that Aramco provided of the signing ceremony. India’s Larsen & Toubro Ltd. and Hyundai Engineering & Construction Co. of South Korea also secured deals.
Saudi Aramco, the world’s largest crude exporter, awarded $18 billion in contracts to boost output capacity at two offshore oil fields even as the kingdom and its OPEC partners restrict production.
Saudi Arabia’s state oil company will add a combined 550,000 barrels a day of crude-production capacity at its Marjan and Berri fields, it said Tuesday in a statement. It will raise capacity for natural gas output at the deposits by 2.5 billion standard cubic feet a day. Aramco awarded 34 contracts, with half of them going to Saudi firms, according to the statement.
McDermott International Inc., Saipem SpA of Italy, Norway-listed Subsea 7 SA, Tecnicas Reunidas SA of Spain and China Petroleum & Chemical Corp. were among the companies that won contracts, according to a photo that Aramco provided of the signing ceremony. India’s Larsen & Toubro Ltd. and Hyundai Engineering & Construction Co. of South Korea also secured deals.
UPDATE 2- #SaudiArabia's Savola issues 1 bln riyals sukuk - Reuters
UPDATE 2-Saudi Arabia's Savola issues 1 bln riyals sukuk - Reuters:
Savola Group, Saudi Arabia’s largest food products company, confirmed on Tuesday it had raised 1 billion riyals ($267 million) in sukuk, or Islamic bonds, in a deal arranged by the Saudi arm of HSBC.
Savola made the deal public in a bourse filing, confirming what sources familiar with the matter had earlier told Reuters.
Savola and other consumer goods companies in Saudi Arabia are suffering from the effects of subsidy cuts, the introduction of VAT sales tax and an exodus of expatriates, which have all put pressure on consumer spending.
Savola Group, Saudi Arabia’s largest food products company, confirmed on Tuesday it had raised 1 billion riyals ($267 million) in sukuk, or Islamic bonds, in a deal arranged by the Saudi arm of HSBC.
Savola made the deal public in a bourse filing, confirming what sources familiar with the matter had earlier told Reuters.
Savola and other consumer goods companies in Saudi Arabia are suffering from the effects of subsidy cuts, the introduction of VAT sales tax and an exodus of expatriates, which have all put pressure on consumer spending.
#Kuwait Petroleum hires NBK Capital to advise on $2 bln worth financing-sources - Reuters
Kuwait Petroleum hires NBK Capital to advise on $2 bln worth financing-sources - Reuters:
Kuwait Petroleum Corp has hired NBK Capital to advise it on a financing worth around $2 billion that will likely be provided by Kuwaiti banks, said two sources familiar with the matter.
One of the sources said negotiations for the financing were in their early stages.
State-owned KPC did not immediately respond to a request for comment, while NBK Capital declined to comment.
Kuwait Petroleum Corp has hired NBK Capital to advise it on a financing worth around $2 billion that will likely be provided by Kuwaiti banks, said two sources familiar with the matter.
One of the sources said negotiations for the financing were in their early stages.
State-owned KPC did not immediately respond to a request for comment, while NBK Capital declined to comment.
MIDEAST STOCKS-Banks lead most Gulf markets higher, #Kuwait keeps rallying - Reuters
MIDEAST STOCKS-Banks lead most Gulf markets higher, Kuwait keeps rallying - Reuters:
Major Gulf markets closed higher on
Tuesday, mostly riding on banks after Egypt's EFG Hermes
forecast a higher second-quarter profit for the Middle East's
financial sector, while Kuwait continued to rise for a ninth
straight session.
EFG Hermes investment bank predicted over 10% year-on-year
growth in second quarter profit for the region's financial
sector, with United Arab Emirates seeing a 18.7% jump and Egypt
expecting a 19.5% surge.
The Saudi index added 0.3% with National Commercial
Bank rising 1.3% and Riyad Bank 0.7% higher.
Major Gulf markets closed higher on
Tuesday, mostly riding on banks after Egypt's EFG Hermes
forecast a higher second-quarter profit for the Middle East's
financial sector, while Kuwait continued to rise for a ninth
straight session.
EFG Hermes investment bank predicted over 10% year-on-year
growth in second quarter profit for the region's financial
sector, with United Arab Emirates seeing a 18.7% jump and Egypt
expecting a 19.5% surge.
The Saudi index added 0.3% with National Commercial
Bank rising 1.3% and Riyad Bank 0.7% higher.
#SaudiArabia's Extra shares rally after rise in Q2 estimated profit | ZAWYA MENA Edition
Saudi Arabia's Extra shares rally after rise in Q2 estimated profit | ZAWYA MENA Edition:
Saudi Arabia’s United Electronics Company (Extra) reported a rise in Q2 2019 earnings, triggering a surge in the company’s shares.
Extra’s estimated net Q2 profit after zakat and tax amounted to 72.5 million Saudi riyals ($19.3 million), compared to 45.6 million riyals in Q2 2018, a 58.99 percent increase.
Extra had also announced earlier this week that it has securitised 166 million riyals of its receivables from the sales of its Tasheel Installment Program”. The receivables were sold to Al Rajhi Bank in exchange for the cash inflow.
Saudi Arabia’s United Electronics Company (Extra) reported a rise in Q2 2019 earnings, triggering a surge in the company’s shares.
Extra’s estimated net Q2 profit after zakat and tax amounted to 72.5 million Saudi riyals ($19.3 million), compared to 45.6 million riyals in Q2 2018, a 58.99 percent increase.
Extra had also announced earlier this week that it has securitised 166 million riyals of its receivables from the sales of its Tasheel Installment Program”. The receivables were sold to Al Rajhi Bank in exchange for the cash inflow.
Oil rises towards $65 as supply concerns outweigh trade disputes - Reuters
Oil rises towards $65 as supply concerns outweigh trade disputes - Reuters:
Oil rose towards $65 a barrel on Tuesday as OPEC supply cuts and Middle East tensions outweighed the U.S.-China trade dispute that has been dragging down the global economy and oil demand.
OPEC and its allies agreed last week to extend their supply-cutting deal until March 2020. Brent has risen almost 20% in 2019 supported by the pact and also tensions in the Middle East, especially concerns about the row over Iran’s nuclear program.
Benchmark Brent crude rose 59 cents to $64.70 a barrel by 1033 GMT. U.S. West Texas Intermediate crude was up 46 cents to $58.12.
Oil rose towards $65 a barrel on Tuesday as OPEC supply cuts and Middle East tensions outweighed the U.S.-China trade dispute that has been dragging down the global economy and oil demand.
OPEC and its allies agreed last week to extend their supply-cutting deal until March 2020. Brent has risen almost 20% in 2019 supported by the pact and also tensions in the Middle East, especially concerns about the row over Iran’s nuclear program.
Benchmark Brent crude rose 59 cents to $64.70 a barrel by 1033 GMT. U.S. West Texas Intermediate crude was up 46 cents to $58.12.
Sovereign wealth funds pile into bonds | Financial Times
Sovereign wealth funds pile into bonds | Financial Times:
Sovereign wealth funds are piling into bonds as the world's biggest investors defend their portfolios in anticipation of the end of the decade-long bull market.
Fixed income has displaced equities as the largest asset class for sovereign wealth funds, which countries typically use to either save for a rainy day or to provide money for future generations. Most state-backed investors expect the end of the economic cycle within the next two years.
Fixed income allocations increased to 33 per cent this year from 30 per cent in 2018, according to an annual survey of 139 sovereign wealth funds and central banks that oversee $20.3tn, conducted by Invesco, the US fund manager.
Sovereign wealth funds are piling into bonds as the world's biggest investors defend their portfolios in anticipation of the end of the decade-long bull market.
Fixed income has displaced equities as the largest asset class for sovereign wealth funds, which countries typically use to either save for a rainy day or to provide money for future generations. Most state-backed investors expect the end of the economic cycle within the next two years.
Fixed income allocations increased to 33 per cent this year from 30 per cent in 2018, according to an annual survey of 139 sovereign wealth funds and central banks that oversee $20.3tn, conducted by Invesco, the US fund manager.
#UAE banks remain strong with sufficient capital, liquidity reserves - Central Bank | ZAWYA MENA Edition
UAE banks remain strong with sufficient capital, liquidity reserves - Central Bank | ZAWYA MENA Edition:
The UAE banking system remains sound with sufficient capitalisation and liquidity reserves, solid financial performance and high operating efficiency, a report from the Central Bank of the UAE (CBUAE) said.
In the 2018 Financial Stability Report published on Monday, the central bank details the banking system assessment, regulatory developments and macro financial conditions relevant to the financial stability, besides the factors that could drive UAE economy in 2019.
According the report, during the course of 2018, the overall Financial Stability Trend Index (FSTI) indicated a relatively stable macro-financial environment.
The UAE banking system remains sound with sufficient capitalisation and liquidity reserves, solid financial performance and high operating efficiency, a report from the Central Bank of the UAE (CBUAE) said.
In the 2018 Financial Stability Report published on Monday, the central bank details the banking system assessment, regulatory developments and macro financial conditions relevant to the financial stability, besides the factors that could drive UAE economy in 2019.
According the report, during the course of 2018, the overall Financial Stability Trend Index (FSTI) indicated a relatively stable macro-financial environment.
MIDEAST STOCKS- #Saudi shares gain, led by banks; other Gulf markets muted - Reuters
MIDEAST STOCKS-Saudi shares gain, led by banks; other Gulf markets muted - Reuters:
Saudi Arabian stocks rose on Tuesday, led by banking shares, while other Gulf markets were little changed.
The Saudi index added 0.1% with National Commercial Bank rising 0.6% and Banque Saudi Fransi was 0.7% higher.
EFG Hermes forecast second-quarter profits at Saudi financial firms would rise 7.6%, with National Commercial Bank profit rising 2%.
Saudi Arabian stocks rose on Tuesday, led by banking shares, while other Gulf markets were little changed.
The Saudi index added 0.1% with National Commercial Bank rising 0.6% and Banque Saudi Fransi was 0.7% higher.
EFG Hermes forecast second-quarter profits at Saudi financial firms would rise 7.6%, with National Commercial Bank profit rising 2%.
#Saudi Banks Favored, Amwal's Samhouri Says – Bloomberg
Saudi Banks Favored, Amwal's Samhouri Says – Bloomberg:
Talal Samhouri, head of asset management at Doha-based Amwal LLC, discusses his investment strategy for the region's markets. He speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Talal Samhouri, head of asset management at Doha-based Amwal LLC, discusses his investment strategy for the region's markets. He speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
China Oil Giant Is Worth Less Than Its Reserves Under Ground - Bloomberg
China Oil Giant Is Worth Less Than Its Reserves Under Ground - Bloomberg:
PetroChina Co. looks cheap on many levels, perhaps none more so than comparing it to the value of its reserves beneath the Earth’s surface.
By plotting its enterprise value against reserves, China’s state-run oil and gas champion is the cheapest among global energy firms tracked by Sanford C. Bernstein & Co. Its shares have sunk 13% in Hong Kong this year to trade almost at the lowest since 2005. That’s despite a 19% gain in crude prices.
“With PetroChina’s current assets and asset quality, even with modest valuation methods, the H-share price should be easily doubled from current levels,” Jefferies Group LLC analyst Laban Yu said by phone. “There is no valuation method that can validate the current share price.”
PetroChina Co. looks cheap on many levels, perhaps none more so than comparing it to the value of its reserves beneath the Earth’s surface.
By plotting its enterprise value against reserves, China’s state-run oil and gas champion is the cheapest among global energy firms tracked by Sanford C. Bernstein & Co. Its shares have sunk 13% in Hong Kong this year to trade almost at the lowest since 2005. That’s despite a 19% gain in crude prices.
“With PetroChina’s current assets and asset quality, even with modest valuation methods, the H-share price should be easily doubled from current levels,” Jefferies Group LLC analyst Laban Yu said by phone. “There is no valuation method that can validate the current share price.”
Oil Dips as Investors Focus on Growth Gloom Before Fed Testimony - Bloomberg
Oil Dips as Investors Focus on Growth Gloom Before Fed Testimony - Bloomberg:
Oil fell for the first time in a week as concern about the slowing global economy took precedence over geopolitical tensions, while investors waited for clues on the Federal Reserve’s rate-cut path.
Futures in New York declined as much as 0.6% after closing 0.3% higher on Monday. Fed Chairman Jerome Powell is scheduled to testify to Congress on Wednesday and Thursday. The Middle East remained tense as BP Plc kept a ship in the Persian Gulf for fear it might be seized by Iran in retaliation for British forces arresting a vessel carrying the Islamic Republic’s crude last week.
A rally in crude that was mainly driven by the U.S.-Iran standoff faltered last week as investors fretted over the possibility of deteriorating demand even as the Organization of Petroleum Exporting Countries and its allies extend their output curbs. The chances that the U.S. and China will resolve their trade dispute in the near term appear low, so investors are increasingly hoping for monetary stimulus to revive consumption.
West Texas Intermediate oil for August delivery fell 23 cents, or 0.4%, to $57.43 a barrel on the New York Mercantile Exchange as of 7:43 a.m. in London after dropping as much as 37 cents earlier. The contract rallied 2.1% from last Tuesday’s close through Monday.
Brent for September settlement lost 18 cents, or 0.3%, to $63.93 a barrel the ICE Futures Europe Exchange. It closed 0.2% lower on Monday. The global benchmark crude traded at a $6.37 premium to WTI for the same month.
Oil fell for the first time in a week as concern about the slowing global economy took precedence over geopolitical tensions, while investors waited for clues on the Federal Reserve’s rate-cut path.
Futures in New York declined as much as 0.6% after closing 0.3% higher on Monday. Fed Chairman Jerome Powell is scheduled to testify to Congress on Wednesday and Thursday. The Middle East remained tense as BP Plc kept a ship in the Persian Gulf for fear it might be seized by Iran in retaliation for British forces arresting a vessel carrying the Islamic Republic’s crude last week.
A rally in crude that was mainly driven by the U.S.-Iran standoff faltered last week as investors fretted over the possibility of deteriorating demand even as the Organization of Petroleum Exporting Countries and its allies extend their output curbs. The chances that the U.S. and China will resolve their trade dispute in the near term appear low, so investors are increasingly hoping for monetary stimulus to revive consumption.
West Texas Intermediate oil for August delivery fell 23 cents, or 0.4%, to $57.43 a barrel on the New York Mercantile Exchange as of 7:43 a.m. in London after dropping as much as 37 cents earlier. The contract rallied 2.1% from last Tuesday’s close through Monday.
Brent for September settlement lost 18 cents, or 0.3%, to $63.93 a barrel the ICE Futures Europe Exchange. It closed 0.2% lower on Monday. The global benchmark crude traded at a $6.37 premium to WTI for the same month.
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