Emerging Markets May Get Tough Lesson From Turkey on Complacency - Bloomberg:
Turkey is probably going to remind emerging-markets traders the dangers of complacency this week. It’s a lesson that’s been in the making since May, when investors started to let their guards down and allowed their cautious optimism to morph into a wild search for yield, regardless of the risks.
Murat Uysal, who unexpectedly replaced Murat Cetinkaya as central bank governor earlier this month, will announce his first interest-rate decision on Thursday. While every estimate compiled by Bloomberg assumes a reduction, they range from 50 to 800 basis points. Even so, the lira was the best performer in emerging markets last week, rising 1.1%.
“A serious meltdown in the lira last summer started on July 24, when the central bank shocked financial markets by keeping interest rates on hold, confounding expectations of a hike,” Ziad Daoud, the Dubai-based chief Middle East economist at Bloomberg Economics, wrote in a report. “Fast forward exactly one year and one day, and the central bank could trigger another currency crisis with a deeper-than-expected cut,” he said, adding the market is pricing in a 200-250 basis point reduction.
Sunday, 21 July 2019
MIDEAST STOCKS-Tanker incident weighs on #Saudi, profit taking hurts #Kuwait - Reuters
MIDEAST STOCKS-Tanker incident weighs on Saudi, profit taking hurts Kuwait - Reuters:
Saudi Arabia's stock index
declined on Sunday, as political concerns weighed on
investors after Iran's seizure of a British-flagged tanker in
the Gulf.
Britain called Iran's action against the Stena Impero in the
Strait of Hormuz on Friday a "hostile act".
"Markets are following the negative global lead as
geopolitical risks take centre stage following the UK tanker
seizure," said Vrajesh Bhandari, senior portfolio manager at Al
Mal Capital in Dubai.
Saudi Arabia's stock index
declined on Sunday, as political concerns weighed on
investors after Iran's seizure of a British-flagged tanker in
the Gulf.
Britain called Iran's action against the Stena Impero in the
Strait of Hormuz on Friday a "hostile act".
"Markets are following the negative global lead as
geopolitical risks take centre stage following the UK tanker
seizure," said Vrajesh Bhandari, senior portfolio manager at Al
Mal Capital in Dubai.
Ken Costa looks to #SaudiArabia for next big deal | Financial Times
Ken Costa looks to Saudi Arabia for next big deal | Financial Times:
When UK chancellor Philip Hammond flew to Saudi Arabia this month to discuss business relations between the two nations, he was accompanied by one of the City’s long-standing veterans, Ken Costa.
Describing himself as a “M&A junkie”, Mr Costa has become involved in what could be one of the biggest deals of the century. On the agenda in Jeddah was London’s role in a potential international flotation of state oil company Saudi Aramco.
Saudi officials have said this could now take place in late 2020 or early 2021, after postponing a stock market listing last year when it failed to generate the desired $2tn valuation, alongside concerns around legal exposure.
When UK chancellor Philip Hammond flew to Saudi Arabia this month to discuss business relations between the two nations, he was accompanied by one of the City’s long-standing veterans, Ken Costa.
Describing himself as a “M&A junkie”, Mr Costa has become involved in what could be one of the biggest deals of the century. On the agenda in Jeddah was London’s role in a potential international flotation of state oil company Saudi Aramco.
Saudi officials have said this could now take place in late 2020 or early 2021, after postponing a stock market listing last year when it failed to generate the desired $2tn valuation, alongside concerns around legal exposure.
Shipping industry split on how to police Strait of Hormuz | Financial Times
Shipping industry split on how to police Strait of Hormuz | Financial Times:
The global shipping industry is split on how best to police the Strait of Hormuz as it braces for potential trade disruption through one of the world’s most important waterways, after Iran’s seizure of a British-flagged tanker on Friday.
A third of the world’s seaborne oil passes through the Strait of Hormuz and for shipowners, brokers and industry groups the latest incident was a clear contravention of international regulations and the freedom of navigation which underpins global trade.
The confrontation ratcheted up tension between Iran and the west after Britain detained a tanker earlier this month on suspicion of smuggling oil to Syria in violation of EU sanctions. It happened a day after Washington claimed to have shot down an Iranian drone that ventured too close to an American warship in the Strait, which Iran has denied.
The global shipping industry is split on how best to police the Strait of Hormuz as it braces for potential trade disruption through one of the world’s most important waterways, after Iran’s seizure of a British-flagged tanker on Friday.
A third of the world’s seaborne oil passes through the Strait of Hormuz and for shipowners, brokers and industry groups the latest incident was a clear contravention of international regulations and the freedom of navigation which underpins global trade.
The confrontation ratcheted up tension between Iran and the west after Britain detained a tanker earlier this month on suspicion of smuggling oil to Syria in violation of EU sanctions. It happened a day after Washington claimed to have shot down an Iranian drone that ventured too close to an American warship in the Strait, which Iran has denied.
#Iran-U.S. Spat Leaves Mideast Airlines Encircled by Hostile Skies - Bloomberg
Iran-U.S. Spat Leaves Mideast Airlines Encircled by Hostile Skies - Bloomberg:
Airlines in the Middle East are used to avoiding trouble spots, but airspace closures spurred by mounting tension between Iran and the U.S. mean they now face diversions whether flying north, south, east or west.
Route of the Problem
Conflicts in the region had left a legacy of no-fly zones long before the latest flareup between Washington and Tehran. Israeli airlines have been barred from skies above most other Mideast states for decades, while wars in Syria and Yemen mean overflights there are too risky, according to regulators. And rifts between Arab nations have added to the patchwork of no-go areas.
Restrictions imposed by the U.S. Federal Aviation Authority and followed by most carriers worldwide after Iran’s destruction of an American drone, mean airspace above the Strait of Hormuz is also out of bounds. While better known as a shipping route, the corridor also provides the fastest aeriel link between the Persian Gulf to parts of south Asia.
Airlines in the Middle East are used to avoiding trouble spots, but airspace closures spurred by mounting tension between Iran and the U.S. mean they now face diversions whether flying north, south, east or west.
Route of the Problem
Conflicts in the region had left a legacy of no-fly zones long before the latest flareup between Washington and Tehran. Israeli airlines have been barred from skies above most other Mideast states for decades, while wars in Syria and Yemen mean overflights there are too risky, according to regulators. And rifts between Arab nations have added to the patchwork of no-go areas.
Restrictions imposed by the U.S. Federal Aviation Authority and followed by most carriers worldwide after Iran’s destruction of an American drone, mean airspace above the Strait of Hormuz is also out of bounds. While better known as a shipping route, the corridor also provides the fastest aeriel link between the Persian Gulf to parts of south Asia.
MIDEAST STOCKS- #Saudi shares decline after #Iran seizes UK tanker; other markets mixed - Reuters
MIDEAST STOCKS-Saudi shares decline after Iran seizes UK tanker; other markets mixed - Reuters:
Saudi Arabian shares declined on Sunday, as Iran’s seizure of a British-flagged tanker raised investor concern about geopolitical risk, while some investors booked profit after the market’s strong run this year.
Britain has denounced Iran’s capture of the oil tanker in the Gulf on Friday as a “hostile act”, rejecting Tehran’s explanation that it seized the vessel because it had been involved in an accident.
“Markets are following the negative global lead as geopolitical risks take centre stage following the UK tanker seizure by Iran,” said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital in Dubai.
Saudi Arabian shares declined on Sunday, as Iran’s seizure of a British-flagged tanker raised investor concern about geopolitical risk, while some investors booked profit after the market’s strong run this year.
Britain has denounced Iran’s capture of the oil tanker in the Gulf on Friday as a “hostile act”, rejecting Tehran’s explanation that it seized the vessel because it had been involved in an accident.
“Markets are following the negative global lead as geopolitical risks take centre stage following the UK tanker seizure by Iran,” said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital in Dubai.
Evercore set to lose out as Aramco reshuffles IPO roles: sources - Reuters
Evercore set to lose out as Aramco reshuffles IPO roles: sources - Reuters:
Boutique investment bank Evercore Partners has lost the chance to retain a prime position as an independent advisor for Saudi Aramco’s potential $100 billion share sale, as the oil giant revives its postponed listing, three sources said.
The Saudi energy minister Khalid al-Falih, who also chairs Aramco, said earlier in July the long-awaited listing could happen in 2020-2021.
Evercore, founded and chaired by U.S. banker and former politician Roger Altman, had secured an equity advisory role with the oil giant in 2017 for what is expected to be the world’s largest ever initial public offering (IPO).
Boutique investment bank Evercore Partners has lost the chance to retain a prime position as an independent advisor for Saudi Aramco’s potential $100 billion share sale, as the oil giant revives its postponed listing, three sources said.
The Saudi energy minister Khalid al-Falih, who also chairs Aramco, said earlier in July the long-awaited listing could happen in 2020-2021.
Evercore, founded and chaired by U.S. banker and former politician Roger Altman, had secured an equity advisory role with the oil giant in 2017 for what is expected to be the world’s largest ever initial public offering (IPO).
#Dubai's Q2 apartment prices register 15% decline | ZAWYA MENA Edition
Dubai's Q2 apartment prices register 15% decline | ZAWYA MENA Edition:
Average sales prices and rents softened across most communities in Dubai in the second quarter. However, compared to last year, the average rate of price decline has slowed with apartment prices falling 15.1 per cent and villa/townhouse prices down 14.7 per cent, stated Cavendish Maxwell, a leading property consultancy and chartered surveying firm in the Middle East.
Off-plan transfers continued to dominate in Dubai in Q2 2019, accounting for more than 52% of total transfers, said the expert in its latest UAE Property Market Report for Q2 2019, containing key data and trends for Dubai, Abu Dhabi and the Northern Emirates.
The report provides comprehensive insights on the health of the UAE’s property market as a whole, covering the residential, commercial, retail, hospitality and industrial sectors. It was compiled by the firm’s in-house Strategic Consulting and Research team, drawing on proprietary data from its real estate intelligence platform, Property Monitor, and in collaboration with its extensive client and partner portfolio.
Average sales prices and rents softened across most communities in Dubai in the second quarter. However, compared to last year, the average rate of price decline has slowed with apartment prices falling 15.1 per cent and villa/townhouse prices down 14.7 per cent, stated Cavendish Maxwell, a leading property consultancy and chartered surveying firm in the Middle East.
Off-plan transfers continued to dominate in Dubai in Q2 2019, accounting for more than 52% of total transfers, said the expert in its latest UAE Property Market Report for Q2 2019, containing key data and trends for Dubai, Abu Dhabi and the Northern Emirates.
The report provides comprehensive insights on the health of the UAE’s property market as a whole, covering the residential, commercial, retail, hospitality and industrial sectors. It was compiled by the firm’s in-house Strategic Consulting and Research team, drawing on proprietary data from its real estate intelligence platform, Property Monitor, and in collaboration with its extensive client and partner portfolio.
DIFC's new insolvency law to provide firms better survival chance | ZAWYA MENA Edition
DIFC's new insolvency law to provide firms better survival chance | ZAWYA MENA Edition:
The new Dubai International Financial Centre (DIFC) insolvency law that came into force on June 13 has many similarities with the 2009 law it is replacing, but also some significant differences that the centre’s leaders hope will provide a better outcome both for financially stressed companies and the companies to which they are indebted.
For instance, companies that secure the support of up to 75 percent of its debtors (by value) can still enter into a company voluntary arrangement (CVA) to reschedule debts. The new law allows for creditors who are owed money to petition to wind a business up, as well as offering formal administration and receivership processes.
The main difference, however, is the adoption of a new ‘debtor in possession’ regime known as rehabilitation. This allows the managers of a business that finds itself facing financial strain to work with a restructuring professional on a turnaround plan which, if approved by a court, allows them to remain in charge to oversee it, as opposed to managers being removed once an administrator or liquidator is appointed.
The new Dubai International Financial Centre (DIFC) insolvency law that came into force on June 13 has many similarities with the 2009 law it is replacing, but also some significant differences that the centre’s leaders hope will provide a better outcome both for financially stressed companies and the companies to which they are indebted.
For instance, companies that secure the support of up to 75 percent of its debtors (by value) can still enter into a company voluntary arrangement (CVA) to reschedule debts. The new law allows for creditors who are owed money to petition to wind a business up, as well as offering formal administration and receivership processes.
The main difference, however, is the adoption of a new ‘debtor in possession’ regime known as rehabilitation. This allows the managers of a business that finds itself facing financial strain to work with a restructuring professional on a turnaround plan which, if approved by a court, allows them to remain in charge to oversee it, as opposed to managers being removed once an administrator or liquidator is appointed.
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