Oil prices jump 4.5% on U.S. crude stocks draw, Gulf of Mexico storm - Reuters:
Oil prices rose 4.5% a barrel on Wednesday to their highest level in more than a month after U.S. crude inventories shrank and as major producers cut nearly a third of offshore Gulf of Mexico production ahead of an expected storm.
Brent crude futures LCOc1 settled at $67.01 a barrel, up $2.85, or 4.44 percent. U.S. West Texas Intermediate (WTI) crude futures CLc1 settled at $60.43 a barrel, climbing $2.60, or 4.50 percent.
Both benchmarks hit their highest prices since late-May.
U.S. crude stocks fell 9.5 million barrels in the week to July 5, shrinking more than triple the 3.1 million-barrel draw analysts had expected as refineries ramped up output, the Energy Information Administration (EIA) said.
Wednesday 10 July 2019
#Dubai’s apartment, villa sales prices down in Q2 | ZAWYA MENA Edition
Dubai’s apartment, villa sales prices down in Q2 | ZAWYA MENA Edition:
Dubai’s tenants and end-users are continuing to benefit from reduced apartment and villa sales prices, as well as a softening rental market, a trend expected to continue for the remainder of the year, according to leading international real estate services firm, Chestertons.
In the sales market, prices for both apartments and villas witnessed a decrease of 4% in Q2. From a villa perspective, Palm Jumeirah remained the most resilient, softening by 1% to Dh1,967 per sq ft, stated Chestertons in its Observer: Dubai Market Q2 2019 report.
In contrast, The Lakes witnessed the highest price decline at 6% to Dh1,038 per sq ft while declines in The Meadows/Springs dropped 5% to Dh854 per sq ft followed by Jumeirah Park softening by 4% to Dh827 and 3% in Arabian Ranches to Dh833 per sq ft.
Dubai’s tenants and end-users are continuing to benefit from reduced apartment and villa sales prices, as well as a softening rental market, a trend expected to continue for the remainder of the year, according to leading international real estate services firm, Chestertons.
In the sales market, prices for both apartments and villas witnessed a decrease of 4% in Q2. From a villa perspective, Palm Jumeirah remained the most resilient, softening by 1% to Dh1,967 per sq ft, stated Chestertons in its Observer: Dubai Market Q2 2019 report.
In contrast, The Lakes witnessed the highest price decline at 6% to Dh1,038 per sq ft while declines in The Meadows/Springs dropped 5% to Dh854 per sq ft followed by Jumeirah Park softening by 4% to Dh827 and 3% in Arabian Ranches to Dh833 per sq ft.
#AbuDhabi Investment Authority buys 30% stake in D&G | Financial Times
Abu Dhabi Investment Authority buys 30% stake in D&G | Financial Times:
Abu Dhabi’s sovereign wealth fund has agreed to buy a 30 per cent stake in Domestic & General after the UK’s white goods warranty provider abandoned plans for an initial public offering.
The deal with Abu Dhabi Investment Authority valued the appliances insurer at close to £1.1bn, according to people familiar with the matter. In a statement on Wednesday, D&G said its current owners, private equity firm CVC Capital Partners, would retain a majority stake in the company.
ADIA’s purchase comes against a backdrop of plummeting UK investment from other sovereign wealth funds. Of D&G’s 16m customers across Europe and Australia, 9m come from the UK.
Abu Dhabi’s sovereign wealth fund has agreed to buy a 30 per cent stake in Domestic & General after the UK’s white goods warranty provider abandoned plans for an initial public offering.
The deal with Abu Dhabi Investment Authority valued the appliances insurer at close to £1.1bn, according to people familiar with the matter. In a statement on Wednesday, D&G said its current owners, private equity firm CVC Capital Partners, would retain a majority stake in the company.
ADIA’s purchase comes against a backdrop of plummeting UK investment from other sovereign wealth funds. Of D&G’s 16m customers across Europe and Australia, 9m come from the UK.
Oil Jumps on Report of Falling U.S. Stockpiles and Iran Tension - Bloomberg
Oil Jumps on Report of Falling U.S. Stockpiles and Iran Tension - Bloomberg:
Oil jumped to the highest in a week as an industry report showing a continued draw-down in U.S. crude inventories tightened a supply outlook that’s being threatened by rising tension in the Middle East.
Futures in New York rose as much as 2.7% on Wednesday, as Federal Reserve Chairman Jerome Powell signaled that policy makers may cut interest rates as soon as this month. The American Petroleum Institute reported nationwide stockpiles fell by 8.13 million barrels last week, according to people familiar with the data. Government inventory figures are due to be published later Wednesday.
West Texas Intermediate crude for August delivery gained as much as $1.56, or 2.7%, to $59.39 a barrel on the New York Mercantile Exchange, the highest since July 2. It traded at $59.39 as of 2:07 p.m. London time. The contract has rallied 5.7% since last Tuesday’s close.
Brent for September settlement increased $1.73, or 2.7%, to $65.89 a barrel on the ICE Futures Europe Exchange. The global benchmark crude traded at a $6.39 premium to WTI for the same month.
Oil jumped to the highest in a week as an industry report showing a continued draw-down in U.S. crude inventories tightened a supply outlook that’s being threatened by rising tension in the Middle East.
Futures in New York rose as much as 2.7% on Wednesday, as Federal Reserve Chairman Jerome Powell signaled that policy makers may cut interest rates as soon as this month. The American Petroleum Institute reported nationwide stockpiles fell by 8.13 million barrels last week, according to people familiar with the data. Government inventory figures are due to be published later Wednesday.
West Texas Intermediate crude for August delivery gained as much as $1.56, or 2.7%, to $59.39 a barrel on the New York Mercantile Exchange, the highest since July 2. It traded at $59.39 as of 2:07 p.m. London time. The contract has rallied 5.7% since last Tuesday’s close.
Brent for September settlement increased $1.73, or 2.7%, to $65.89 a barrel on the ICE Futures Europe Exchange. The global benchmark crude traded at a $6.39 premium to WTI for the same month.
MIDEAST STOCKS-Property firms bolster #Dubai, oil prices lift #Saudi - Reuters
MIDEAST STOCKS-Property firms bolster Dubai, oil prices lift Saudi - Reuters:
Dubai stocks rose sharply on Wednesday
as all real estate shares gained, while banks drove the Saudi
market higher amid rising oil prices and after EFG Hermes
forecast higher second quarter profit for Saudi lenders.
Oil prices rose more than 2% after industry data showed U.S.
inventories fell more than expected and as major U.S. producers
evacuated rigs in the Gulf of Mexico before a storm.
The Dubai index closed 1.2% higher with Emaar
Properties, its largest listed-developer, surging 3.5%
to its highest in two months.
Dubai stocks rose sharply on Wednesday
as all real estate shares gained, while banks drove the Saudi
market higher amid rising oil prices and after EFG Hermes
forecast higher second quarter profit for Saudi lenders.
Oil prices rose more than 2% after industry data showed U.S.
inventories fell more than expected and as major U.S. producers
evacuated rigs in the Gulf of Mexico before a storm.
The Dubai index closed 1.2% higher with Emaar
Properties, its largest listed-developer, surging 3.5%
to its highest in two months.
Goldman Sachs Hires JPMorgan Banker for #Saudi Investment Banking - Bloomberg
Goldman Sachs Hires JPMorgan Banker for Saudi Investment Banking - Bloomberg:
Goldman Sachs Group Inc. hired JPMorgan Chase & Co.’s Mohammed Nazer to join its investment banking team in Saudi Arabia, according to people familiar with the matter.
Nazer will relocate to the kingdom from the U.S. where he’s currently based, the people said, asking not to be identified as the information is private. His appointment follows the departure of executive director Omar Abu Innab, who covered Saudi Arabia from Goldman Sachs’ regional headquarters in Dubai, some of the people said.
A spokesman for Goldman Sachs declined to comment.
Goldman Sachs Group Inc. hired JPMorgan Chase & Co.’s Mohammed Nazer to join its investment banking team in Saudi Arabia, according to people familiar with the matter.
Nazer will relocate to the kingdom from the U.S. where he’s currently based, the people said, asking not to be identified as the information is private. His appointment follows the departure of executive director Omar Abu Innab, who covered Saudi Arabia from Goldman Sachs’ regional headquarters in Dubai, some of the people said.
A spokesman for Goldman Sachs declined to comment.
ADIA plans to acquire 30% of Domestic & General Group | ZAWYA MENA Edition
ADIA plans to acquire 30% of Domestic & General Group | ZAWYA MENA Edition:
Abu Dhabi Investment Authority (ADIA) has agreed to acquire a 30 per cent stake in Domestic & General Group, the UK appliance warranty provider owned by CVC Capital Partners, reported Bloomberg.
The deal with the Abu Dhabi’s sovereign wealth fund is expected to be announced in London this week.
CVC is opting for a deal with ADIA instead of an initial public offering (IPO) of the business due to market uncertainty and the transaction is expected to close by the end of the year.
Abu Dhabi Investment Authority (ADIA) has agreed to acquire a 30 per cent stake in Domestic & General Group, the UK appliance warranty provider owned by CVC Capital Partners, reported Bloomberg.
The deal with the Abu Dhabi’s sovereign wealth fund is expected to be announced in London this week.
CVC is opting for a deal with ADIA instead of an initial public offering (IPO) of the business due to market uncertainty and the transaction is expected to close by the end of the year.
National Bank of #Kuwait reports rise in Q2 earnings | ZAWYA MENA Edition
National Bank of Kuwait reports rise in Q2 earnings | ZAWYA MENA Edition:
National Bank of Kuwait (NBK), the country’s largest lender, reported a 9.86 percent rise in net profit for Q2 2019, as provisions expenses dropped. The results were in line with analysts’ estimates.
The bank recorded a net profit attributable to shareholders of 101.4 million Kuwaiti dinars ($333.05 million), compared to 92.3 million dinars in Q2 2018, in line with CI Capital’s estimate.
“Net income grew by 10 percent year-on-year (y-o-y), driven by 31 percent y-o-y drop in provisions expenses, which we highlight as one of the main positives of the results,” Sara Boutros, senior analyst - real estate and financials at CI Capital told Zawya.
National Bank of Kuwait (NBK), the country’s largest lender, reported a 9.86 percent rise in net profit for Q2 2019, as provisions expenses dropped. The results were in line with analysts’ estimates.
The bank recorded a net profit attributable to shareholders of 101.4 million Kuwaiti dinars ($333.05 million), compared to 92.3 million dinars in Q2 2018, in line with CI Capital’s estimate.
“Net income grew by 10 percent year-on-year (y-o-y), driven by 31 percent y-o-y drop in provisions expenses, which we highlight as one of the main positives of the results,” Sara Boutros, senior analyst - real estate and financials at CI Capital told Zawya.
CVC-led consortium to acquire 30% stake in #Dubai's GEMS Education - Reuters
CVC-led consortium to acquire 30% stake in Dubai's GEMS Education - Reuters:
A consortium led by private equity firm CVC Capital Partners has agreed to acquire a 30% stake from existing shareholders in Dubai-based GEMS Education.
The deal will see the exit by a consortium led by Fajr Capital Ltd including Tactical Opportunities funds managed by Blackstone Group (BX.N) and Bahrain’s Mumtalakat Holding Co, a statement from GEMS said on Wednesday.
It did not disclose the value of the deal.
A consortium led by private equity firm CVC Capital Partners has agreed to acquire a 30% stake from existing shareholders in Dubai-based GEMS Education.
The deal will see the exit by a consortium led by Fajr Capital Ltd including Tactical Opportunities funds managed by Blackstone Group (BX.N) and Bahrain’s Mumtalakat Holding Co, a statement from GEMS said on Wednesday.
It did not disclose the value of the deal.
UPDATE 1- #Qatar National Bank posts 4% increase in first-half net profit - Reuters
UPDATE 1-Qatar National Bank posts 4% increase in first-half net profit - Reuters:
Qatar National Bank, the biggest lender in the Gulf region, posted a 4% increase in first-half net profit as loans grew, it said on Wednesday.
The bank reported a net profit of 7.4 billion riyals ($1.97 billion) in the six months to June 30, the bank said in a statement, compared with 7.1 billion riyals reported in the corresponding period of 2018.
The second-quarter profit was 3.84 billion riyals, based on a Reuters calculation, compared to 3.7 billion riyals in the same period a year earlier. EFG Hermes had projected a net profit of 3.77 billion riyals in the second quarter.
Qatar National Bank, the biggest lender in the Gulf region, posted a 4% increase in first-half net profit as loans grew, it said on Wednesday.
The bank reported a net profit of 7.4 billion riyals ($1.97 billion) in the six months to June 30, the bank said in a statement, compared with 7.1 billion riyals reported in the corresponding period of 2018.
The second-quarter profit was 3.84 billion riyals, based on a Reuters calculation, compared to 3.7 billion riyals in the same period a year earlier. EFG Hermes had projected a net profit of 3.77 billion riyals in the second quarter.
#Saudi Prince Turki on #Iran, #Qatar, U.S. Treasury Purchases – Bloomberg
Saudi Prince Turki on Iran, Qatar, U.S. Treasury Purchases – Bloomberg:
Prince Turki Al-Faisal of Kingdom of Saudi Arabia discusses relations with the United Kingdom, Iran's nuclear stance, the crisis in Qatar, Saudi Arabia's purchase of U.S. Treasuries, and the prospect of peace in the Middle East. He speaks on "Bloomberg Markets." (Source: Bloomberg)
Prince Turki Al-Faisal of Kingdom of Saudi Arabia discusses relations with the United Kingdom, Iran's nuclear stance, the crisis in Qatar, Saudi Arabia's purchase of U.S. Treasuries, and the prospect of peace in the Middle East. He speaks on "Bloomberg Markets." (Source: Bloomberg)
#SaudiArabia Expands Reach of $28 Billion Fund to Energy, Mining - Bloomberg
Saudi Arabia Expands Reach of $28 Billion Fund to Energy, Mining - Bloomberg:
Saudi Arabia expanded the mandate of its 105-billion riyal ($28 billion) industrial fund to allow the financing of energy, logistics and mining projects as part of broader efforts to develop the kingdom’s industries.
The changes greatly extend the purview of the Saudi Industrial Development Fund, which previously only provided financing to local manufacturing businesses.
Under the new terms, companies will be also eligible for additional financing options, including multi-purpose term loans and acquisition financing, the fund known as SIDF said in a statement to Bloomberg on Tuesday. In another key shift, the fund can now provide financing to businesses outside the kingdom that have Saudi investors.
Saudi Arabia expanded the mandate of its 105-billion riyal ($28 billion) industrial fund to allow the financing of energy, logistics and mining projects as part of broader efforts to develop the kingdom’s industries.
The changes greatly extend the purview of the Saudi Industrial Development Fund, which previously only provided financing to local manufacturing businesses.
Under the new terms, companies will be also eligible for additional financing options, including multi-purpose term loans and acquisition financing, the fund known as SIDF said in a statement to Bloomberg on Tuesday. In another key shift, the fund can now provide financing to businesses outside the kingdom that have Saudi investors.
#Qatar Agrees to Buy U.S. Aircraft, Engines, Defense Equipment - Bloomberg
Qatar Agrees to Buy U.S. Aircraft, Engines, Defense Equipment - Bloomberg:
Qatar has made agreements with U.S. companies to spend billions on airplanes and jet engines and to develop a petrochemical complex, the White House said on Tuesday.
At least some of the deals were previously made but were publicly touted by the Trump administration Tuesday. Among them: Qatar Airways purchasing Boeing Co. 777 freighters and large-cabin aircraft from Gulfstream Aerospace, the private jet unit of General Dynamics Corp.
“They’re investing very heavily in our country,” Trump told reporters at the White House. “They’re creating a lot of jobs. They’re buying tremendous amounts of military equipment including planes.
Qatar has made agreements with U.S. companies to spend billions on airplanes and jet engines and to develop a petrochemical complex, the White House said on Tuesday.
At least some of the deals were previously made but were publicly touted by the Trump administration Tuesday. Among them: Qatar Airways purchasing Boeing Co. 777 freighters and large-cabin aircraft from Gulfstream Aerospace, the private jet unit of General Dynamics Corp.
“They’re investing very heavily in our country,” Trump told reporters at the White House. “They’re creating a lot of jobs. They’re buying tremendous amounts of military equipment including planes.
London Beats New York in Drawing #Saudi ETF Investor Billions - Bloomberg
London Beats New York in Drawing Saudi ETF Investor Billions - Bloomberg:
Investors betting on Saudi Arabian shares are showing a clear preference for funds listed in Europe over the U.S. The contrasting picture may come down to which market offers lower fees and more attractive treatment on taxes and dividends.
An exchange-traded fund focused on Saudi equities offered by BlackRock Inc. in New York since 2015, the year when the oil-rich kingdom started opening up to foreigners, drew net inflows of about $626 million this year, quadrupling in size from the end of 2018.
Still, that’s dwarfed by the $1.5 billion that has poured into BlackRock’s London-listed ETF, which has very similar objectives but is only three months old. A London-listed fund run by Invesco Ltd. that was started last year has attracted $1.1 billion in 2019. Both European options are now bigger than their American predecessor.
Investors betting on Saudi Arabian shares are showing a clear preference for funds listed in Europe over the U.S. The contrasting picture may come down to which market offers lower fees and more attractive treatment on taxes and dividends.
An exchange-traded fund focused on Saudi equities offered by BlackRock Inc. in New York since 2015, the year when the oil-rich kingdom started opening up to foreigners, drew net inflows of about $626 million this year, quadrupling in size from the end of 2018.
Still, that’s dwarfed by the $1.5 billion that has poured into BlackRock’s London-listed ETF, which has very similar objectives but is only three months old. A London-listed fund run by Invesco Ltd. that was started last year has attracted $1.1 billion in 2019. Both European options are now bigger than their American predecessor.
#GCC banks resilient to 'modest' geopolitical risks: S&P Global | ZAWYA MENA Edition
GCC banks resilient to 'modest' geopolitical risks: S&P Global | ZAWYA MENA Edition:
Banks in the Gulf region are resilient enough and can absorb foreign funding outflows without liquidity support, if the Gulf Cooperation Council’s (GCC’s) geopolitical situation escalate due to the ongoing US-Iran tensions.
Most GCC governments possess sufficient liquid assets and foreign exchange reserves to be in a position to support banks if required, says S&P Global Ratings in a report on Monday.
S&P Global Ratings has not changed any bank or sovereign ratings in the GCC region. The ratings agency does not expect direct military conflict between the US and Iran or their regional allies.
Banks in the Gulf region are resilient enough and can absorb foreign funding outflows without liquidity support, if the Gulf Cooperation Council’s (GCC’s) geopolitical situation escalate due to the ongoing US-Iran tensions.
Most GCC governments possess sufficient liquid assets and foreign exchange reserves to be in a position to support banks if required, says S&P Global Ratings in a report on Monday.
S&P Global Ratings has not changed any bank or sovereign ratings in the GCC region. The ratings agency does not expect direct military conflict between the US and Iran or their regional allies.
Oil Jumps on Report of Falling U.S. Stockpiles and Iran Tension - Bloomberg
Oil Jumps on Report of Falling U.S. Stockpiles and Iran Tension - Bloomberg:
Oil jumped the most in a week as an industry report showing a continued draw-down in U.S. crude inventories tightened a supply outlook that’s being threatened by rising tension in the Middle East.
Futures in New York rose as much as 1.8% after closing up 0.3% Tuesday. The American Petroleum Institute reported nationwide stockpiles fell by 8.13 million barrels last week, according to people familiar with the data. That’s more than the median estimate for a 2.9 million barrel drop in a Bloomberg survey before Energy Information Administration figures due Wednesday.
West Texas Intermediate crude for August delivery gained 91 cents, or 1.6%, to $58.74 a barrel on the New York Mercantile Exchange as of 7:40 a.m. in London after rising as much as $1.01 earlier. The contract has rallied 4.4% since last Tuesday’s close.
Brent for September settlement increased 71 cents, or 1.1%, to $64.87 a barrel on the ICE Futures Europe Exchange. The contract closed 0.1% higher on Tuesday. The global benchmark crude traded at a $6.01 premium to WTI for the same month.
Oil jumped the most in a week as an industry report showing a continued draw-down in U.S. crude inventories tightened a supply outlook that’s being threatened by rising tension in the Middle East.
Futures in New York rose as much as 1.8% after closing up 0.3% Tuesday. The American Petroleum Institute reported nationwide stockpiles fell by 8.13 million barrels last week, according to people familiar with the data. That’s more than the median estimate for a 2.9 million barrel drop in a Bloomberg survey before Energy Information Administration figures due Wednesday.
West Texas Intermediate crude for August delivery gained 91 cents, or 1.6%, to $58.74 a barrel on the New York Mercantile Exchange as of 7:40 a.m. in London after rising as much as $1.01 earlier. The contract has rallied 4.4% since last Tuesday’s close.
Brent for September settlement increased 71 cents, or 1.1%, to $64.87 a barrel on the ICE Futures Europe Exchange. The contract closed 0.1% higher on Tuesday. The global benchmark crude traded at a $6.01 premium to WTI for the same month.
Chevron Phillips, #Qatar Petroleum sign $8 billion petrochemical deal - Reuters
Chevron Phillips, Qatar Petroleum sign $8 billion petrochemical deal - Reuters:
Chevron Phillips Chemical and Qatar Petroleum signed an agreement on Tuesday to develop an $8 billion petrochemical plant along the U.S. Gulf Coast, the second pact between the companies to build such plants in the last few weeks.
The U.S. Gulf Coast II Petrochemical Project will include a 2,000 kilotons per year (KTA) ethylene cracker and two 1,000 KTA polyethylene units. The plant will mostly make hard plastics for everything from pill bottles to coolers to kayaks.
Chevron Phillips Chemical, a joint venture of Chevron and Phillips 66, will be the majority owner with a 51 percent share, with Qatar Petroleum owning 49 percent of the project. The companies expect a final investment decision no later than 2021 for the project, which has a target of starting in 2024.
Chevron Phillips Chemical and Qatar Petroleum signed an agreement on Tuesday to develop an $8 billion petrochemical plant along the U.S. Gulf Coast, the second pact between the companies to build such plants in the last few weeks.
The U.S. Gulf Coast II Petrochemical Project will include a 2,000 kilotons per year (KTA) ethylene cracker and two 1,000 KTA polyethylene units. The plant will mostly make hard plastics for everything from pill bottles to coolers to kayaks.
Chevron Phillips Chemical, a joint venture of Chevron and Phillips 66, will be the majority owner with a 51 percent share, with Qatar Petroleum owning 49 percent of the project. The companies expect a final investment decision no later than 2021 for the project, which has a target of starting in 2024.
MIDEAST STOCKS-Real estate lifts #Dubai, other Gulf markets muted - Reuters
MIDEAST STOCKS-Real estate lifts Dubai, other Gulf markets muted - Reuters:
Dubai stocks outperformed their Gulf peers on Wednesday buoyed by real estate shares, while most other markets were quiet ahead of corporate earnings announcements expected to accelerate from next week.
The Dubai index rose 1% with Emaar Properties , its largest listed developer, adding 2.4%, while Dubai Islamic Bank was up 1%.
Emaar Properties has been rising since Monday after its Egyptian subsidiary Emaar Misr Development initially agreed with El Nasr Housing and Development to settle a dispute on Uptown Cairo land.
Dubai stocks outperformed their Gulf peers on Wednesday buoyed by real estate shares, while most other markets were quiet ahead of corporate earnings announcements expected to accelerate from next week.
The Dubai index rose 1% with Emaar Properties , its largest listed developer, adding 2.4%, while Dubai Islamic Bank was up 1%.
Emaar Properties has been rising since Monday after its Egyptian subsidiary Emaar Misr Development initially agreed with El Nasr Housing and Development to settle a dispute on Uptown Cairo land.
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