Oil strengthens in volatile trade ahead of expected U.S. crude drawdown - Reuters:
Oil prices rose in volatile trade on Tuesday supported by expectations of a drawdown in U.S. crude inventories, though gains were capped by worries about a recession and uncertainty over a China-U.S. trade deal.
Brent crude LCOc1 settled up 81 cents, or 1.4%, at $59.51 a barrel. U.S. West Texas Intermediate crude CLc1 ended $1.29, or 2.4%, higher at $54.93 a barrel.
“We could have another one of these blockbuster (U.S. oil inventory) drawdowns - that’s supportive,” said John Kilduff, a partner at Again Capital Management in New York.
U.S. crude oil inventories were forecast to have fallen by over 2 million barrels last week, a Reuters poll showed, ahead of industry data at 4:30 p.m. EDT (2030 GMT) and the government’s report on Wednesday morning.
Tuesday 27 August 2019
#Saudi Sovereign Wealth Fund Finalizes Terms on $10 Billion Loan - Bloomberg
Saudi Sovereign Wealth Fund Finalizes Terms on $10 Billion Loan - Bloomberg:
Saudi Arabia’s sovereign wealth fund finalized the terms of a $10 billion loan it’s seeking to raise from a group of banks, according to people familiar with the matter.
The Public Investment Fund will pay 30 basis points over the London Interbank Offered Rate for the bridge loan -- less than half the rate of its first borrowing, the people said, asking not to be identified because the information is private. The financing will have a one-year tenor with an option to extend by an additional 12 months, they said.
The fund received more than $20 billion of offers from the banks, the people said. The loan will provide some liquidity for the PIF ahead of its Saudi Basic Industries Corp. stake sale, said one of the people. A spokesman for the PIF declined to comment.
Saudi Arabia’s sovereign wealth fund finalized the terms of a $10 billion loan it’s seeking to raise from a group of banks, according to people familiar with the matter.
The Public Investment Fund will pay 30 basis points over the London Interbank Offered Rate for the bridge loan -- less than half the rate of its first borrowing, the people said, asking not to be identified because the information is private. The financing will have a one-year tenor with an option to extend by an additional 12 months, they said.
The fund received more than $20 billion of offers from the banks, the people said. The loan will provide some liquidity for the PIF ahead of its Saudi Basic Industries Corp. stake sale, said one of the people. A spokesman for the PIF declined to comment.
#UAE Central Bank's gross assets reaches $810.84bln | ZAWYA MENA Edition
UAE Central Bank's gross assets reaches $810.84bln | ZAWYA MENA Edition:
The UAE Central Bank has announced that gross bank assets, including bankers’ acceptances, rose by 0.6 percent, climbing from AED2958.6 billion at the end of June 2019 to AED2975.8 billion at the end of July 2019.
Gross credit increased by 0.7 percent from AED1692.7 billion at the end of June 2019 to AED1704.9 billion at the end of July 2019.
During July 2019, total bank deposits grew by AED3.3 billion, attributable to an AED6.3 billion rise in Non Resident Deposits, dominating the decline of AED3 billion in Resident Deposits.
The UAE Central Bank has announced that gross bank assets, including bankers’ acceptances, rose by 0.6 percent, climbing from AED2958.6 billion at the end of June 2019 to AED2975.8 billion at the end of July 2019.
Gross credit increased by 0.7 percent from AED1692.7 billion at the end of June 2019 to AED1704.9 billion at the end of July 2019.
During July 2019, total bank deposits grew by AED3.3 billion, attributable to an AED6.3 billion rise in Non Resident Deposits, dominating the decline of AED3 billion in Resident Deposits.
#Iran could restore oil output to pre-sanctions level within three days: minister - Reuters
Iran could restore oil output to pre-sanctions level within three days: minister - Reuters:
Iran would need three days to lift its oil production back to the level it was at before U.S. sanctions were imposed, the semi-official Mehr news agency quoted Iranian Oil Minister Bijan Zanganeh as saying on Tuesday.
“Three days are needed to return production to the levels before the reduction,” Zanganeh said, according to the report.
U.S. President Donald Trump withdrew from world powers’ landmark 2015 nuclear deal with Iran last year and reimposed sanctions in an effort to curb the Islamic Republic’s ballistic missile program and support for regional proxies.
Iran would need three days to lift its oil production back to the level it was at before U.S. sanctions were imposed, the semi-official Mehr news agency quoted Iranian Oil Minister Bijan Zanganeh as saying on Tuesday.
“Three days are needed to return production to the levels before the reduction,” Zanganeh said, according to the report.
U.S. President Donald Trump withdrew from world powers’ landmark 2015 nuclear deal with Iran last year and reimposed sanctions in an effort to curb the Islamic Republic’s ballistic missile program and support for regional proxies.
#Qatar Airways has full confidence in Cathay Pacific, eyes bigger stake - Reuters
Qatar Airways has full confidence in Cathay Pacific, eyes bigger stake - Reuters:
Qatar Airways has full confidence in Cathay Pacific Airways Ltd (0293.HK) and will increase its 10% stake in the Hong Kong carrier if it has any opportunity to do so, the Qatari airline’s chief executive said on Tuesday.
Cathay has become the biggest corporate casualty of political unrest in Hong Kong after China demanded it suspend staff involved in, or who support, anti-government demonstrations.
“Cathay Pacific is there to stay, and to expand and to serve the people of both Hong Kong and China, as Hong Kong is an integral part of mainland China,” Qatar Airways’ Chief Executive Akbar al-Baker said. “We have no concern about the brand, we have no concern on the viability of the airline.”
Qatar Airways has full confidence in Cathay Pacific Airways Ltd (0293.HK) and will increase its 10% stake in the Hong Kong carrier if it has any opportunity to do so, the Qatari airline’s chief executive said on Tuesday.
Cathay has become the biggest corporate casualty of political unrest in Hong Kong after China demanded it suspend staff involved in, or who support, anti-government demonstrations.
“Cathay Pacific is there to stay, and to expand and to serve the people of both Hong Kong and China, as Hong Kong is an integral part of mainland China,” Qatar Airways’ Chief Executive Akbar al-Baker said. “We have no concern about the brand, we have no concern on the viability of the airline.”
#Kuwait Petroleum to raise $1 billion revolving loan: sources - Reuters
Kuwait Petroleum to raise $1 billion revolving loan: sources - Reuters:
Kuwait Petroleum Corp (KPC) is finalizing a $1 billion loan with a small group of international banks, three sources familiar with the deal said.
The loan, a revolving credit facility, comes amid a slowdown in the regional loan market, as borrowers have increasingly raised financing through bonds to take advantage of lower rates.
The state-owned oil company, which did not respond to a request for comment, plans to invest hundreds of billions of dollars by 2040 as it aims to boost its crude oil production capacity to 4.75 million barrels per day by that date.
Kuwait Petroleum Corp (KPC) is finalizing a $1 billion loan with a small group of international banks, three sources familiar with the deal said.
The loan, a revolving credit facility, comes amid a slowdown in the regional loan market, as borrowers have increasingly raised financing through bonds to take advantage of lower rates.
The state-owned oil company, which did not respond to a request for comment, plans to invest hundreds of billions of dollars by 2040 as it aims to boost its crude oil production capacity to 4.75 million barrels per day by that date.
A complicated Lebanese marriage on the rocks | Financial Times
A complicated Lebanese marriage on the rocks | Financial Times:
Travelling to Beirut in September, air passengers found a paean to a central bank governor in the seat-back pockets in front of them. The in-flight magazine celebrated Riad Salamé’s 25th year at the helm of the Banque du Liban, which owns the national carrier Middle East Airlines — his face was in heroic profile on the glossy black and white cover.
Lauded as an “engineer of stability in a time of crises”, Mr Salamé was particularly praised for his management of the Lebanese lira-US dollar peg, held at about 1,500 lira to the dollar, for more than two decades.
But reports this month that the black-market value of the lira has slipped to 1,560 to the dollar have shaken that reputation. “It looks like he’s losing control of the peg,” said an ex-banker in a smart, semi-deserted restaurant — a sign of straitened times in Beirut’s ostentatious downtown.
Travelling to Beirut in September, air passengers found a paean to a central bank governor in the seat-back pockets in front of them. The in-flight magazine celebrated Riad Salamé’s 25th year at the helm of the Banque du Liban, which owns the national carrier Middle East Airlines — his face was in heroic profile on the glossy black and white cover.
Lauded as an “engineer of stability in a time of crises”, Mr Salamé was particularly praised for his management of the Lebanese lira-US dollar peg, held at about 1,500 lira to the dollar, for more than two decades.
But reports this month that the black-market value of the lira has slipped to 1,560 to the dollar have shaken that reputation. “It looks like he’s losing control of the peg,” said an ex-banker in a smart, semi-deserted restaurant — a sign of straitened times in Beirut’s ostentatious downtown.
Banks close to hiring adviser for debt talks with #AbuDhabi's Gulf Marine Services - sources - Reuters
Banks close to hiring adviser for debt talks with Abu Dhabi's Gulf Marine Services - sources - Reuters:
Creditors of Abu Dhabi-based Gulf Marine Services (GMS) are close to hiring an adviser to help them renegotiate debt terms, two sources familiar with the matter said.
London-listed GMS, which provides support vessels for offshore oil and gas and other energy installations, has been hurt by a downturn in the oil and gas services industry after a slump in oil prices in recent years reduced demand.
GMS had $400 million in total net debt at the end of last year and is renegotiating terms with creditors after it said it may not be able to meet principal debt repayments late next year.
Creditors of Abu Dhabi-based Gulf Marine Services (GMS) are close to hiring an adviser to help them renegotiate debt terms, two sources familiar with the matter said.
London-listed GMS, which provides support vessels for offshore oil and gas and other energy installations, has been hurt by a downturn in the oil and gas services industry after a slump in oil prices in recent years reduced demand.
GMS had $400 million in total net debt at the end of last year and is renegotiating terms with creditors after it said it may not be able to meet principal debt repayments late next year.
Property investment: #UAE rental yields higher than New York, London | ZAWYA MENA Edition
Property investment: UAE rental yields higher than New York, London | ZAWYA MENA Edition:
UAE could be one of the most favourable places for property investments if rental yields is taken as a benchmark.
Landlords get higher rental yields, one of the most important considerations for mid to long-term investors from apartments in Dubai, and make profit by renting studios than large apartments, property portal Property Finder said in its Trends report.
The average rental yield in property hotspots such as London (2.7 percent), Hong Kong (2.4 percent), New York (2.9 percent) and Singapore (2.5 percent) hover in the low single digits while Dubai properties consistently offer over 7 percent gross returns on average, the report said.
UAE could be one of the most favourable places for property investments if rental yields is taken as a benchmark.
Landlords get higher rental yields, one of the most important considerations for mid to long-term investors from apartments in Dubai, and make profit by renting studios than large apartments, property portal Property Finder said in its Trends report.
The average rental yield in property hotspots such as London (2.7 percent), Hong Kong (2.4 percent), New York (2.9 percent) and Singapore (2.5 percent) hover in the low single digits while Dubai properties consistently offer over 7 percent gross returns on average, the report said.
Oil rises as hopes grow for U.S.-China trade breakthrough - Reuters
Oil rises as hopes grow for U.S.-China trade breakthrough - Reuters:
Oil prices rose on Tuesday after U.S. President Donald Trump predicted a trade deal with China following positive comments by Beijing, calming concerns raised by an earlier round of tit-for-tat tariff hikes.
Brent crude LCOc1 was up 39 cents, or 0.7%, at $59.09 a barrel by 1220 GMT, after falling 1% in the previous session. Tuesday’s slide was the third daily decline in a row.
U.S. West Texas Intermediate crude futures CLc1 were up 57 cents, or 1.1%, at $54.21, after a 1% fall on Monday and heading for a fourth daily decline.
Oil prices rose on Tuesday after U.S. President Donald Trump predicted a trade deal with China following positive comments by Beijing, calming concerns raised by an earlier round of tit-for-tat tariff hikes.
Brent crude LCOc1 was up 39 cents, or 0.7%, at $59.09 a barrel by 1220 GMT, after falling 1% in the previous session. Tuesday’s slide was the third daily decline in a row.
U.S. West Texas Intermediate crude futures CLc1 were up 57 cents, or 1.1%, at $54.21, after a 1% fall on Monday and heading for a fourth daily decline.
MIDEAST STOCKS- #Saudi stocks up ahead of MSCI entry, fund inflows boost #Qatar, #UAE - Reuters
MIDEAST STOCKS-Saudi stocks up ahead of MSCI entry, fund inflows boost Qatar, UAE - Reuters:
Saudi Arabian stocks closed higher on
Tuesday as investors bought ahead of the addition of more Saudi
stocks to the MSCI emerging markets index, while the United Arab
Emirates and Qatar markets also gained.
Saudi's benchmark index closed up 0.3% after
spending most of the day in the red. Samba Financial Group
rose 3.6% and Saudi Basic Industries
advanced 1.8%.
A second batch of Saudi shares will be added to the MSCI
emerging markets index on Wednesday after the country's stocks
were first included in the index in May.
Saudi Arabian stocks closed higher on
Tuesday as investors bought ahead of the addition of more Saudi
stocks to the MSCI emerging markets index, while the United Arab
Emirates and Qatar markets also gained.
Saudi's benchmark index closed up 0.3% after
spending most of the day in the red. Samba Financial Group
rose 3.6% and Saudi Basic Industries
advanced 1.8%.
A second batch of Saudi shares will be added to the MSCI
emerging markets index on Wednesday after the country's stocks
were first included in the index in May.
#Egypt’s economic turnround hailed by investors | Financial Times
Egypt’s economic turnround hailed by investors | Financial Times:
Three years ago, Egypt’s economy was teetering on the abyss, as entrepreneurs scoured the black market for dollars and foreign investors shunned the country. Now it is being hailed as one of the region’s fastest-growing economies, favoured by international bond investors seeking high yields in an increasingly uncertain global environment.
The turnround represents an important success for the authoritarian regime of President Abdel Fattah al-Sisi. His government has been widely criticised by human rights groups for a severe crackdown on freedoms, but investors have praised its implementation of bold and politically sensitive reforms that previous administrations balked at.
The challenge for Mr Sisi, a former general who ousted his elected predecessor in 2013, is to turn the country’s macroeconomic improvements into prosperity for its 100m people. Poverty has been rising, official statistics say, and foreign direct investment is paltry outside the oil and gas sector.
Three years ago, Egypt’s economy was teetering on the abyss, as entrepreneurs scoured the black market for dollars and foreign investors shunned the country. Now it is being hailed as one of the region’s fastest-growing economies, favoured by international bond investors seeking high yields in an increasingly uncertain global environment.
The turnround represents an important success for the authoritarian regime of President Abdel Fattah al-Sisi. His government has been widely criticised by human rights groups for a severe crackdown on freedoms, but investors have praised its implementation of bold and politically sensitive reforms that previous administrations balked at.
The challenge for Mr Sisi, a former general who ousted his elected predecessor in 2013, is to turn the country’s macroeconomic improvements into prosperity for its 100m people. Poverty has been rising, official statistics say, and foreign direct investment is paltry outside the oil and gas sector.
MIDEAST STOCKS-Banks lead #Saudi lower, #UAE extends gains - Agricultural Commodities - Reuters
MIDEAST STOCKS-Banks lead Saudi lower, UAE extends gains - Agricultural Commodities - Reuters:
Saudi Arabia’s shares gave up early gains on Tuesday as banks led the index lower, while markets in the United Arab Emirates extended gains after a recent sell-off made stock valuations more attractive to investors.
Saudi’s index rose as much as 0.8% at the open before changing tack to trade 1.1% lower. Al Rajhi Bank dropped 2.2% and Riyad Bank 4.4%.
A second batch of Saudi shares will be added to the MSCI emerging markets index on Wednesday after the country’s stocks were first included in the index in May.
Saudi Arabia’s shares gave up early gains on Tuesday as banks led the index lower, while markets in the United Arab Emirates extended gains after a recent sell-off made stock valuations more attractive to investors.
Saudi’s index rose as much as 0.8% at the open before changing tack to trade 1.1% lower. Al Rajhi Bank dropped 2.2% and Riyad Bank 4.4%.
A second batch of Saudi shares will be added to the MSCI emerging markets index on Wednesday after the country’s stocks were first included in the index in May.
Oil rises as hopes grow for U.S.-China trade breakthrough - Reuters
Oil rises as hopes grow for U.S.-China trade breakthrough - Reuters:
Oil prices rose on Tuesday after U.S. President Donald Trump predicted a trade deal with China after positive comments by Beijing, calming nerves after a round of tit-for-tat tariff hikes had sent markets reeling.
Brent crude LCOc1 was up by 26 cents, or 0.4%, at $58.96 a barrel by 0636 GMT, after falling 1% in the previous session, dropping for a third day in a row.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were up by 23 cents, or 0.4%, at $53.87 a barrel, having also dropped 1% on Monday for a fourth day of declines.
Trump on Monday said he believed China was sincere about wanting to reach a deal, while Chinese Vice Premier Liu He said China was willing to resolve the dispute through “calm” negotiations, settling global markets.
Oil prices rose on Tuesday after U.S. President Donald Trump predicted a trade deal with China after positive comments by Beijing, calming nerves after a round of tit-for-tat tariff hikes had sent markets reeling.
Brent crude LCOc1 was up by 26 cents, or 0.4%, at $58.96 a barrel by 0636 GMT, after falling 1% in the previous session, dropping for a third day in a row.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were up by 23 cents, or 0.4%, at $53.87 a barrel, having also dropped 1% on Monday for a fourth day of declines.
Trump on Monday said he believed China was sincere about wanting to reach a deal, while Chinese Vice Premier Liu He said China was willing to resolve the dispute through “calm” negotiations, settling global markets.
French oil major Total signs asset transfer deals with #Qatar Petroleum - Reuters
French oil major Total signs asset transfer deals with Qatar Petroleum - Reuters:
French oil major Total (TOTF.PA) said it had signed deals to transfer some of its assets in Kenya, Guyana and Namibia to Qatar Petroleum.
In Namibia, Total will transfer to Qatar Petroleum a 30% interest in Block 2913B while keeping a 40% interest. Total will also transfer 28.33% in Block 2912 while retaining a 37.78% stake.
In Guyana, Qatar Petroleum will have 40% of the company holding Total’s existing 25% interests in the Orinduik and Kanuku blocks. In Kenya, Total and Eni will transfer a combined 25% interest in Blocks L11A, L11B and L12 to Qatar Petroleum.
French oil major Total (TOTF.PA) said it had signed deals to transfer some of its assets in Kenya, Guyana and Namibia to Qatar Petroleum.
In Namibia, Total will transfer to Qatar Petroleum a 30% interest in Block 2913B while keeping a 40% interest. Total will also transfer 28.33% in Block 2912 while retaining a 37.78% stake.
In Guyana, Qatar Petroleum will have 40% of the company holding Total’s existing 25% interests in the Orinduik and Kanuku blocks. In Kenya, Total and Eni will transfer a combined 25% interest in Blocks L11A, L11B and L12 to Qatar Petroleum.
UPDATE 1- #UAE's Utico says signs deal to rescue Singapore's Hyflux - Reuters
UPDATE 1-UAE's Utico says signs deal to rescue Singapore's Hyflux - Reuters:
United Arab Emirates-based utility Utico FZC said on Tuesday it had agreed a restructuring deal with Singapore’s indebted water treatment firm Hyflux Ltd , giving it 88% of the company.
Once lauded as a national champion running a strategically important water source for the city-state, Hyflux is now under a court-supervised restructuring process that could wipe out the holdings of tens of thousands of retail investors.
Utico said it agreed a deal with Hyflux on Monday, the last day before an exclusive discussion agreement ended. The financial details were not disclosed.
United Arab Emirates-based utility Utico FZC said on Tuesday it had agreed a restructuring deal with Singapore’s indebted water treatment firm Hyflux Ltd , giving it 88% of the company.
Once lauded as a national champion running a strategically important water source for the city-state, Hyflux is now under a court-supervised restructuring process that could wipe out the holdings of tens of thousands of retail investors.
Utico said it agreed a deal with Hyflux on Monday, the last day before an exclusive discussion agreement ended. The financial details were not disclosed.
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