Oil rises about 1% on concerns about return of Saudi output - Reuters:
Oil ended about 1% higher on Monday after a volatile trading session as traders focused on when Saudi Arabia would be able to restore full output following the Sept. 14 attack on its facilities.
Brent futures gained 49 cents, or 0.8%, to settle at $64.77 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 55 cents, or 1%, to settle at $58.64.
“We’ve seen futures trade on both sides of unchanged today. The market is hesitant to drive too much higher at this point until it gets more facts. But I think the bullish news outweighs the bearish news and that is why we are up at the end of the day,” said Phil Flynn, an analyst at Price Futures Group in Chicago.
Brent futures started the session at a high of $65.50 on a report in the Wall Street Journal that it could take Saudi Arabia months longer than its Aramco oil company anticipates to repair damage from the Sept. 14 attacks.
Monday, 23 September 2019
Deutsche Bank Top Holder Takes Chairman Search Into Own Hand - Bloomberg
Deutsche Bank Top Holder Takes Chairman Search Into Own Hand - Bloomberg:
Deutsche Bank AG’s top shareholders in Qatar are taking the unusual step of directly approaching candidates to gauge their interest in replacing chairman Paul Achleitner as investor patience runs out after a prolonged stock slump.
Some representatives of the Qatari royal family have held talks with an international recruiting firm as they review potential executives, according to people familiar with the matter. They’re debating whether to try and force Achleitner to leave before his term expires in 2022, the people said, asking not to be identified disclosing private discussions.
The Qatari efforts underscore the frustration of key Deutsche Bank backers after the shares lost about 70% of their value during Achleitner’s time as chairman. The Austrian received his lowest backing yet at this year’s shareholder meeting after a tumultuous period that saw the stock fall to a new record low and the appointment of the fourth CEO under his watch. The Qataris’ stake gives them an outsized voice in choosing the next chairman.
Deutsche Bank AG’s top shareholders in Qatar are taking the unusual step of directly approaching candidates to gauge their interest in replacing chairman Paul Achleitner as investor patience runs out after a prolonged stock slump.
Some representatives of the Qatari royal family have held talks with an international recruiting firm as they review potential executives, according to people familiar with the matter. They’re debating whether to try and force Achleitner to leave before his term expires in 2022, the people said, asking not to be identified disclosing private discussions.
The Qatari efforts underscore the frustration of key Deutsche Bank backers after the shares lost about 70% of their value during Achleitner’s time as chairman. The Austrian received his lowest backing yet at this year’s shareholder meeting after a tumultuous period that saw the stock fall to a new record low and the appointment of the fourth CEO under his watch. The Qataris’ stake gives them an outsized voice in choosing the next chairman.
Egypt’s Status as an Emerging-Market Darling Under Threat - Bloomberg
Egypt’s Status as an Emerging-Market Darling Under Threat - Bloomberg:
Political risk is back on the table in Egypt, and it’s threatening the country’s status as an emerging-market darling.
Egyptian assets have come under pressure since Friday’s anti-government protests alleging corruption in the military, with 12-month NDF contracts for the pound rising the most since March 2017 to 18.38/USD (versus the spot rate of 16.29). Stocks have fallen almost 7% in two days, the most in more than three years and the biggest drop by far among equity markets worldwide.
Until now, investors have put political concerns, including the government’s jailing of thousands of opponents, to the side and instead focused on Egypt’s macroeconomics. Thanks to IMF-led reforms since 2016, the economy is the fastest-growing in the Middle East and North Africa and the inflation rate is the lowest in 6-1/2 years. All that has helped Egyptian assets outperform emerging markets in 2019.
Political risk is back on the table in Egypt, and it’s threatening the country’s status as an emerging-market darling.
Egyptian assets have come under pressure since Friday’s anti-government protests alleging corruption in the military, with 12-month NDF contracts for the pound rising the most since March 2017 to 18.38/USD (versus the spot rate of 16.29). Stocks have fallen almost 7% in two days, the most in more than three years and the biggest drop by far among equity markets worldwide.
Until now, investors have put political concerns, including the government’s jailing of thousands of opponents, to the side and instead focused on Egypt’s macroeconomics. Thanks to IMF-led reforms since 2016, the economy is the fastest-growing in the Middle East and North Africa and the inflation rate is the lowest in 6-1/2 years. All that has helped Egyptian assets outperform emerging markets in 2019.
Column: #Saudi oil attacks leave hedge funds unmoved despite battle of the bots - Reuters
Column: Saudi oil attacks leave hedge funds unmoved despite battle of the bots - Reuters:
Hedge fund managers remain cautious about the outlook for oil prices despite a short-term surge following the recent attacks on Saudi Arabia’s oil installations.
Amid record trading volumes, oil prices posted a record one-day rise on Sept. 16, the first trading day after the attacks.
However, most of this was probably attributable to short-term computerised market-making programmes (“bots”) taking intra-day positions rather than fund managers shifting their strategic view.
Prior to the attacks, hedge fund managers had increased their bullish positioning in petroleum significantly as hopes rose for a trade truce between China and the United States.
Hedge fund managers remain cautious about the outlook for oil prices despite a short-term surge following the recent attacks on Saudi Arabia’s oil installations.
Amid record trading volumes, oil prices posted a record one-day rise on Sept. 16, the first trading day after the attacks.
However, most of this was probably attributable to short-term computerised market-making programmes (“bots”) taking intra-day positions rather than fund managers shifting their strategic view.
Prior to the attacks, hedge fund managers had increased their bullish positioning in petroleum significantly as hopes rose for a trade truce between China and the United States.
MIDEAST STOCKS-Egypt extends losses amid uncertainty over protests - Reuters
MIDEAST STOCKS-Egypt extends losses amid uncertainty over protests - Reuters:
Egyptian stocks closed lower on Monday,
stretching last session's sharp fall following protests which
broke out in several Egyptian cities over the weekend.
On Friday, hundreds of people rallied in central Cairo and
several other Egyptian cities against President Abdel Fattah
al-Sisi, responding to an online call for a demonstration
against government corruption.
Egyptian authorities have detained at least 373 people as
they try to quash the rare outbreak of protest, rights monitors
said on Monday.
The blue-chip stock index fell 1.5% with Commercial
International Bank declining 3.5% and Talaat Mostafa
Holding plunging 7.6%.
Egyptian stocks closed lower on Monday,
stretching last session's sharp fall following protests which
broke out in several Egyptian cities over the weekend.
On Friday, hundreds of people rallied in central Cairo and
several other Egyptian cities against President Abdel Fattah
al-Sisi, responding to an online call for a demonstration
against government corruption.
Egyptian authorities have detained at least 373 people as
they try to quash the rare outbreak of protest, rights monitors
said on Monday.
The blue-chip stock index fell 1.5% with Commercial
International Bank declining 3.5% and Talaat Mostafa
Holding plunging 7.6%.
Foreigners Boosted #Saudi Stocks the Week Aramco Woes Dominated - Bloomberg
Foreigners Boosted Saudi Stocks the Week Aramco Woes Dominated - Bloomberg:
Attacks on the heart of Saudi Arabia’s oil production were not enough to stop foreigners from buying shares in Riyadh last week, with most of them tracking global benchmark indexes.
Qualified foreign institutional funds were the main net buyers of shares for the week of Sept. 19, in the aftermath of strikes on facilities of giant oil producer Saudi Aramco. That led to a cut in the kingdom’s oil output. The funds purchased about $790 million in shares, or about five times more than local institutional investors, flow data from the Saudi stock exchange showed. Saudi individuals and Gulf investors were net sellers.
Boost From Foreigners
Net trading with Saudi shares for the week ending Sept. 19
Attacks on the heart of Saudi Arabia’s oil production were not enough to stop foreigners from buying shares in Riyadh last week, with most of them tracking global benchmark indexes.
Qualified foreign institutional funds were the main net buyers of shares for the week of Sept. 19, in the aftermath of strikes on facilities of giant oil producer Saudi Aramco. That led to a cut in the kingdom’s oil output. The funds purchased about $790 million in shares, or about five times more than local institutional investors, flow data from the Saudi stock exchange showed. Saudi individuals and Gulf investors were net sellers.
Boost From Foreigners
Net trading with Saudi shares for the week ending Sept. 19
Bankers Decamp to #SaudiArabia as Aramco Plows Ahead With IPO - Bloomberg
Bankers Decamp to Saudi Arabia as Aramco Plows Ahead With IPO - Bloomberg:
Saudi Aramco is plowing ahead with preparations for its blockbuster initial public offering, with a string of banker meetings scheduled this week after it added more than a dozen junior underwriters to the deal, people with knowledge of the matter said.
IPO underwriters will hold two days of analyst presentations with their banks’ research teams starting Wednesday, Sept. 25, near Aramco’s headquarters in Saudi Arabia’s Eastern Province, according to the people. The senior banks on the IPO are meeting now to prepare, one of the people said, asking not to be identified because the information is private.
Executives from the newly-appointed bookrunners on the deal were also flying to the Middle East over the weekend for meetings with Aramco starting Monday, according to the people. Bankers have been working around the clock on the IPO since being hired, with the aim of having everything ready for Aramco to list as soon as November if the company decides to proceed, the people said.
Saudi Aramco is plowing ahead with preparations for its blockbuster initial public offering, with a string of banker meetings scheduled this week after it added more than a dozen junior underwriters to the deal, people with knowledge of the matter said.
IPO underwriters will hold two days of analyst presentations with their banks’ research teams starting Wednesday, Sept. 25, near Aramco’s headquarters in Saudi Arabia’s Eastern Province, according to the people. The senior banks on the IPO are meeting now to prepare, one of the people said, asking not to be identified because the information is private.
Executives from the newly-appointed bookrunners on the deal were also flying to the Middle East over the weekend for meetings with Aramco starting Monday, according to the people. Bankers have been working around the clock on the IPO since being hired, with the aim of having everything ready for Aramco to list as soon as November if the company decides to proceed, the people said.
#AbuDhabi to Sell Dollar Bonds Amid Demand for Quality Debt - Bloomberg
Abu Dhabi to Sell Dollar Bonds Amid Demand for Quality Debt - Bloomberg:
Abu Dhabi is tapping international debt markets for the first time in two years as it seeks to take advantage of relatively low borrowing costs.
The oil-rich emirate plans to sell benchmark-sized dollar-denominated bonds in three maturities on Monday, said a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified. They include:
Abu Dhabi is tapping international debt markets for the first time in two years as it seeks to take advantage of relatively low borrowing costs.
The oil-rich emirate plans to sell benchmark-sized dollar-denominated bonds in three maturities on Monday, said a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified. They include:
- Debt due 2024 to yield around 80 basis points more than Treasuries of similar maturity
- Securities due 2029 at a spread of about 100 basis points, and 2049 bonds at 125 basis points
Oil Drops Amid Conflicting Reports About Speed of #Saudi Recovery - Bloomberg
Oil Drops Amid Conflicting Reports About Speed of Saudi Recovery - Bloomberg:
“It’s tug of war between weak demand fundamentals and heightened geopolitical risks,” said Jens Naervig Pedersen, a senior analyst at Danske Bank A/S in Copenhagen.
Brent crude for November declined 17 cents to $64.11 a barrel on the ICE Futures Europe Exchange as of 1:59 p.m. in London, and traded at a $6.12 premium to West Texas Intermediate.
WTI for November delivery was little changed at $58.10 a barrel on the New York Mercantile Exchange, after climbing 5.9% last week.
“It’s tug of war between weak demand fundamentals and heightened geopolitical risks,” said Jens Naervig Pedersen, a senior analyst at Danske Bank A/S in Copenhagen.
Brent crude for November declined 17 cents to $64.11 a barrel on the ICE Futures Europe Exchange as of 1:59 p.m. in London, and traded at a $6.12 premium to West Texas Intermediate.
WTI for November delivery was little changed at $58.10 a barrel on the New York Mercantile Exchange, after climbing 5.9% last week.
#Dubai Aerospace Enterprise mandated with $1.4bln investment | ZAWYA MENA Edition
Dubai Aerospace Enterprise mandated with $1.4bln investment | ZAWYA MENA Edition:
Dubai Aerospace Enterprise (DAE), one of the largest aircraft leasing firms, has struck a $1.4 billion deal by “one of the world’s largest fund managers” to source and manage aircraft.
DAE declined to mention the fund manager’s identity to Zawya.
The deal brings DAE’s assets under management to more than $2.7 billion, as the company expects its managed portfolio to grow to its $5 billion target, it said in a statement.
Dubai Aerospace Enterprise (DAE), one of the largest aircraft leasing firms, has struck a $1.4 billion deal by “one of the world’s largest fund managers” to source and manage aircraft.
DAE declined to mention the fund manager’s identity to Zawya.
The deal brings DAE’s assets under management to more than $2.7 billion, as the company expects its managed portfolio to grow to its $5 billion target, it said in a statement.
Lebanon preparing to issue $2bln Eurobond in October -finance minister | ZAWYA MENA Edition
Lebanon preparing to issue $2bln Eurobond in October -finance minister | ZAWYA MENA Edition:
Lebanon has begun preparing to issue a Eurobond of around $2 billion in October to meet state financing needs, Finance Minister Ali Hassan Khalil told Reuters on Monday.
"The Finance Ministry has started the preparatory steps for the issuance of Eurobonds of around $2 billion in the coming month," Khalil said. "The interest rates are linked to the market."
Lebanon, one of the world's most heavily indebted states, has a $1.5 billion Eurobond to repay in November.
Lebanon has begun preparing to issue a Eurobond of around $2 billion in October to meet state financing needs, Finance Minister Ali Hassan Khalil told Reuters on Monday.
"The Finance Ministry has started the preparatory steps for the issuance of Eurobonds of around $2 billion in the coming month," Khalil said. "The interest rates are linked to the market."
Lebanon, one of the world's most heavily indebted states, has a $1.5 billion Eurobond to repay in November.
#Saudi GDP to grow 0.3% in 2019 due to lower oil output - Moody's | ZAWYA MENA Edition
Saudi GDP to grow 0.3% in 2019 due to lower oil output - Moody's | ZAWYA MENA Edition:
Despite Saudi Arabia's assurances that the oil production disrupted by recent drone attacks will be fully restored in weeks, rating agency Moody's has cut its forecast for the kingdom’s economic growth in 2019, not so much due to the disruptions in production than lower oil output stemming from the kingdom's overcompliance with its OPEC quota.
Moody's has cut the 2019 growth forecast for world’s biggest oil exporter to 0.3 percent from its previous projection of 1.5 percent.
"We have revised down our growth forecast for Saudi Arabia," said Alexander Perjessy, senior analyst at the ratings agency.
Despite Saudi Arabia's assurances that the oil production disrupted by recent drone attacks will be fully restored in weeks, rating agency Moody's has cut its forecast for the kingdom’s economic growth in 2019, not so much due to the disruptions in production than lower oil output stemming from the kingdom's overcompliance with its OPEC quota.
Moody's has cut the 2019 growth forecast for world’s biggest oil exporter to 0.3 percent from its previous projection of 1.5 percent.
"We have revised down our growth forecast for Saudi Arabia," said Alexander Perjessy, senior analyst at the ratings agency.
#UAE's Mubadala invests $500 million in Cologix - Reuters
UAE's Mubadala invests $500 million in Cologix - Reuters:
Mubadala Investment Co said on Monday it will invest up to $500 million in Cologix, a U.S. data business company.
Abu Dhabi fund Mubadala’s investment is in partnership with Stonepeak Infrastructure Partners, the majority shareholder in Cologix, Mubadala said.
Mubadala Investment Co said on Monday it will invest up to $500 million in Cologix, a U.S. data business company.
Abu Dhabi fund Mubadala’s investment is in partnership with Stonepeak Infrastructure Partners, the majority shareholder in Cologix, Mubadala said.
Five Western countries, Turkey and #UAE back Libyan state oil firm - Reuters
Five Western countries, Turkey and UAE back Libyan state oil firm - Reuters:
Five Western countries including the United States, as well as Turkey and the United Arab Emirates, support Libyan state oil firm NOC as the sole legitimate authority for the country’s energy sector, a joint statement said on Sunday.
The move came after the eastern Libyan parallel government allied to Khalifa Haftar appointed a parallel board last week for a local unit of NOC, a move seen by diplomats as attempt to break away from the Tripoli headquarters.
“For the sake of Libya’s political and economic stability, and the well-being of all its citizens we exclusively support the NOC,” the statement posted on the website of the U.S. Embassy for Libya said.
Five Western countries including the United States, as well as Turkey and the United Arab Emirates, support Libyan state oil firm NOC as the sole legitimate authority for the country’s energy sector, a joint statement said on Sunday.
The move came after the eastern Libyan parallel government allied to Khalifa Haftar appointed a parallel board last week for a local unit of NOC, a move seen by diplomats as attempt to break away from the Tripoli headquarters.
“For the sake of Libya’s political and economic stability, and the well-being of all its citizens we exclusively support the NOC,” the statement posted on the website of the U.S. Embassy for Libya said.
#Oman not in talks with Gulf countries for financial aid, sees growth at 1.1% - Reuters
Oman not in talks with Gulf countries for financial aid, sees growth at 1.1% - Reuters:
Oman is not in discussions with Gulf countries for any aid package, an official said, despite a large fiscal deficit and expectations of a slowdown in economic growth this year.
“Not from our side. I have not discussed anything,” Tahir Al Amri, executive president of the central bank, told reporters in Kuwait ahead of a banking conference this week.
The Gulf state’s finances have been hurt by a slump in oil prices in recent years.
Oman is not in discussions with Gulf countries for any aid package, an official said, despite a large fiscal deficit and expectations of a slowdown in economic growth this year.
“Not from our side. I have not discussed anything,” Tahir Al Amri, executive president of the central bank, told reporters in Kuwait ahead of a banking conference this week.
The Gulf state’s finances have been hurt by a slump in oil prices in recent years.
MEDIA - #Kuwait International Bank may sell $2 bln in sukuk - Al Rai - Reuters
MEDIA -Kuwait International Bank may sell $2 bln in sukuk - Al Rai - Reuters:
The Kuwait International Bank is considering the possibility of selling $2 billion in sukuk in order to improve liquidity, the Al Rai newspaper cited the lender’s Chief Executive Officer Raed Bukhamseen as saying on Monday.
Original Arabic report: https://www.alraimedia.com/Home/Details?id=98d1dbf8-cef4-48ae-bba5-138f5c7fc41b
The Kuwait International Bank is considering the possibility of selling $2 billion in sukuk in order to improve liquidity, the Al Rai newspaper cited the lender’s Chief Executive Officer Raed Bukhamseen as saying on Monday.
Original Arabic report: https://www.alraimedia.com/Home/Details?id=98d1dbf8-cef4-48ae-bba5-138f5c7fc41b
Oil falls below $64 on #Saudi oil restart prospects, economy concerns - Reuters
Oil falls below $64 on Saudi oil restart prospects, economy concerns - Reuters:
Oil fell below $64 a barrel on Monday, reversing an earlier gain, pressured by the prospect of a faster-than-expected full restart of Saudi Arabian oil output and by fresh signs of European economic weakness.
A source, briefed on the latest developments in the Sept. 14 attack on Saudi oil facilities, said Saudi Arabia has restored around 75% of crude output lost.
Oil was up earlier in the session, supported by scepticism over how fast output would come back.
Global benchmark Brent crude fell 30 cents to $63.98 a barrel at 1045 GMT, having earlier risen as high as $65.50. U.S. West Texas Intermediate was down 38 cents to $57.71.
Oil fell below $64 a barrel on Monday, reversing an earlier gain, pressured by the prospect of a faster-than-expected full restart of Saudi Arabian oil output and by fresh signs of European economic weakness.
A source, briefed on the latest developments in the Sept. 14 attack on Saudi oil facilities, said Saudi Arabia has restored around 75% of crude output lost.
Oil was up earlier in the session, supported by scepticism over how fast output would come back.
Global benchmark Brent crude fell 30 cents to $63.98 a barrel at 1045 GMT, having earlier risen as high as $65.50. U.S. West Texas Intermediate was down 38 cents to $57.71.
MIDEAST STOCKS-Protests continue to weigh on Egypt; major Gulf markets mixed - Agricultural Commodities - Reuters
MIDEAST STOCKS-Protests continue to weigh on Egypt; major Gulf markets mixed - Agricultural Commodities - Reuters:
Egypt’s stocks market fell in early trade on Monday, extending the previous session’s sharp drop after protests broke out over the weekend.
On Friday, hundreds of people protested in central Cairo and several other Egyptian cities against President Abdel Fattah al-Sisi, responding to an online call for a demonstration against government corruption.
The blue-chip stock index fell 0.8% after Sunday’s 5.4% plunge, its biggest since June 2016.
Egypt’s stocks market fell in early trade on Monday, extending the previous session’s sharp drop after protests broke out over the weekend.
On Friday, hundreds of people protested in central Cairo and several other Egyptian cities against President Abdel Fattah al-Sisi, responding to an online call for a demonstration against government corruption.
The blue-chip stock index fell 0.8% after Sunday’s 5.4% plunge, its biggest since June 2016.
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