Oil falls on weaker economic growth forecasts and swelling U.S. crude stocks - Reuters:
Oil prices fell on Tuesday, as investors worried that the unrelenting U.S.-China trade war would keep squeezing the global economy, and that swelling U.S. crude inventories would further pressure prices.
Losses were limited by optimism about a potential Brexit deal and signals from OPEC that further supply curbs are possible.
Global benchmark Brent LCOc1 futures lost 61 cents, or 1.0%, to settle at $58.74 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 fell 78 cents, or 1.5%, to settle at $52.81.
Earlier in the session, both Brent and WTI fell by more than $1 a barrel following a report overnight that China’s factory gate prices in September declined at the fastest pace in more than three years. Also, customs data on Monday showed Chinese imports contracted for a fifth straight month.
Tuesday 15 October 2019
Aramco Is Set to Pay Up to $450 Million in Fees to IPO Advisers - Bloomberg
Aramco Is Set to Pay Up to $450 Million in Fees to IPO Advisers - Bloomberg:
Advisers working on Saudi Aramco’s mammoth share sale may split a fee pool of as much as $450 million, according to people with knowledge of the matter, making it one of the biggest IPO pay outs globally.
The oil giant is set to pay between $350 million and $450 million to a group of more than 20 banks working on its initial public offering, the people said, asking not to be identified because the information is private. The payment would represent a fee of about 1% on the $40 billion Aramco is seeking to raise -- relatively low in comparison to other markets.
JPMorgan Chase & Co. and Morgan Stanley are expected to be paid the most, the people said. The final amount paid to banks will depend on how much Aramco raises, they said. A representative for Aramco declined to comment.
Advisers working on Saudi Aramco’s mammoth share sale may split a fee pool of as much as $450 million, according to people with knowledge of the matter, making it one of the biggest IPO pay outs globally.
The oil giant is set to pay between $350 million and $450 million to a group of more than 20 banks working on its initial public offering, the people said, asking not to be identified because the information is private. The payment would represent a fee of about 1% on the $40 billion Aramco is seeking to raise -- relatively low in comparison to other markets.
JPMorgan Chase & Co. and Morgan Stanley are expected to be paid the most, the people said. The final amount paid to banks will depend on how much Aramco raises, they said. A representative for Aramco declined to comment.
IMF Slashes #Saudi Economic Growth Forecast to Near Zero for 2019 - Bloomberg
IMF Slashes Saudi Economic Growth Forecast to Near Zero for 2019 - Bloomberg:
The International Monetary Fund has turned far more downbeat on Saudi Arabia’s prospects, cutting its forecast for economic growth this year to just above zero.
Gross domestic product will expand 0.2% in 2019, down from the fund’s earlier estimate of 1.9%, according to the fund’s World Economic Outlook published on Tuesday. It expects growth to pick up next year.
“While non-oil growth is expected to strengthen in 2019 on higher government spending and confidence, oil GDP in Saudi Arabia is projected to decline against the backdrop of the extension of the OPEC+ agreement and a generally weak global oil market,” it said. “The impact on growth of the recent attacks on Saudi Arabia’s oil facilities is difficult to gauge at this stage but adds uncertainty to the near-term outlook.”
The International Monetary Fund has turned far more downbeat on Saudi Arabia’s prospects, cutting its forecast for economic growth this year to just above zero.
Gross domestic product will expand 0.2% in 2019, down from the fund’s earlier estimate of 1.9%, according to the fund’s World Economic Outlook published on Tuesday. It expects growth to pick up next year.
“While non-oil growth is expected to strengthen in 2019 on higher government spending and confidence, oil GDP in Saudi Arabia is projected to decline against the backdrop of the extension of the OPEC+ agreement and a generally weak global oil market,” it said. “The impact on growth of the recent attacks on Saudi Arabia’s oil facilities is difficult to gauge at this stage but adds uncertainty to the near-term outlook.”
MIDEAST STOCKS- #Saudi hits 11-month low as most Gulf markets fall - Reuters
MIDEAST STOCKS-Saudi hits 11-month low as most Gulf markets fall - Reuters:
Saudi Arabia's stock index fell sharply
on Tuesday with all its banking shares declining ahead of
third-quarter results as expectations remain muted, while most
major Gulf markets traded in negative territory.
In Saudi Arabia, the benchmark index declined 1.6%,
reaching its lowest since November 2018. Riyad Bank
lost 4% and National Commercial Bank (NCB) dropped
1.6%.
Third-quarter results at Saudi banks are expected to be hit
by two consecutive rate cuts by the Saudi central bank in August
and September, which analysts say will squeeze their revenue.
"In general, expectations from third quarter results are
muted. Rate cuts are spread negative since a large chunk of
their deposits are cost-free anyways & loan growth is not
exciting," said Vrajesh Bhandari, senior portfolio manager at Al
Mal Capital.
Saudi Arabia's stock index fell sharply
on Tuesday with all its banking shares declining ahead of
third-quarter results as expectations remain muted, while most
major Gulf markets traded in negative territory.
In Saudi Arabia, the benchmark index declined 1.6%,
reaching its lowest since November 2018. Riyad Bank
lost 4% and National Commercial Bank (NCB) dropped
1.6%.
Third-quarter results at Saudi banks are expected to be hit
by two consecutive rate cuts by the Saudi central bank in August
and September, which analysts say will squeeze their revenue.
"In general, expectations from third quarter results are
muted. Rate cuts are spread negative since a large chunk of
their deposits are cost-free anyways & loan growth is not
exciting," said Vrajesh Bhandari, senior portfolio manager at Al
Mal Capital.
#AbuDhabi sovereign fund sells stake in Medgaz gas pipeline | Financial Times
Abu Dhabi sovereign fund sells stake in Medgaz gas pipeline | Financial Times:
Naturgy, a Spanish utility, and Sonatrach, Algeria’s state-owned oil and gas company, have agreed to buy Abu Dhabi sovereign wealth fund Mubadala’s just over 42 per cent stake in the Medgaz gas pipeline between Algeria and Spain.
Naturgy will increase its stake in the strategic infrastructure by nearly 34 per cent for €445m, transforming it into a strategic shareholder, while the north African oil major also raised its equity position by 8 per cent.
The two companies will now entirely own the deepwater pipeline, in a special purpose vehicle with Sonatrach as the leading shareholder with a 51 per cent stake and Naturgy holding the remaining 49 per cent.
Naturgy, a Spanish utility, and Sonatrach, Algeria’s state-owned oil and gas company, have agreed to buy Abu Dhabi sovereign wealth fund Mubadala’s just over 42 per cent stake in the Medgaz gas pipeline between Algeria and Spain.
Naturgy will increase its stake in the strategic infrastructure by nearly 34 per cent for €445m, transforming it into a strategic shareholder, while the north African oil major also raised its equity position by 8 per cent.
The two companies will now entirely own the deepwater pipeline, in a special purpose vehicle with Sonatrach as the leading shareholder with a 51 per cent stake and Naturgy holding the remaining 49 per cent.
#Saudi Stocks Set to Enter Bear Market Just as Aramco IPO Nears - Bloomberg
Saudi Stocks Set to Enter Bear Market Just as Aramco IPO Nears - Bloomberg:
Saudi Arabian stocks are heading into bear market territory, just as investors await the most important initial public offering in the country’s history.
The Tadawul All Share Index declined as much as 1.5% on Tuesday, losing more than 20% from a recent high in early May. The market’s pull-back over the past few months was fueled in part by an increase in geopolitical risk after attacks on giant oil producer Saudi Aramco’s facilities in September.
The decline in the country’s equity market comes just as Aramco intensifies preparation for a mammoth initial public offering that could happen as early as November and potentially raise $40 billion.
Saudi Arabian stocks are heading into bear market territory, just as investors await the most important initial public offering in the country’s history.
The Tadawul All Share Index declined as much as 1.5% on Tuesday, losing more than 20% from a recent high in early May. The market’s pull-back over the past few months was fueled in part by an increase in geopolitical risk after attacks on giant oil producer Saudi Aramco’s facilities in September.
The decline in the country’s equity market comes just as Aramco intensifies preparation for a mammoth initial public offering that could happen as early as November and potentially raise $40 billion.
Oil Slides Again as Economy Falters and Supplies Grow - Bloomberg
Oil Slides Again as Economy Falters and Supplies Grow - Bloomberg:
Oil fell again as a deteriorating outlook for the global economy weighed on demand, while estimates of increased American crude stockpiles suggested that supplies remain abundant.
Futures fell as much as 2.2% in New York after declining the same amount on Monday. Investor confidence remained weak in Germany amid concern the nation has slipped into recession, while the ongoing struggle between the U.S. and China to hammer out even a limited trade deal prolonged fears their trade war will crimp growth. U.S. inventories rose by 3.1 million barrels last week, according to the median estimate in a Bloomberg survey before official data due on Thursday.
Oil fell again as a deteriorating outlook for the global economy weighed on demand, while estimates of increased American crude stockpiles suggested that supplies remain abundant.
Futures fell as much as 2.2% in New York after declining the same amount on Monday. Investor confidence remained weak in Germany amid concern the nation has slipped into recession, while the ongoing struggle between the U.S. and China to hammer out even a limited trade deal prolonged fears their trade war will crimp growth. U.S. inventories rose by 3.1 million barrels last week, according to the median estimate in a Bloomberg survey before official data due on Thursday.
#UAE's Arabtec talks with UBS to advise on potential Trojan merger deal | ZAWYA MENA Edition
UAE's Arabtec talks with UBS to advise on potential Trojan merger deal | ZAWYA MENA Edition:
UAE’s Arabtec Holding is in negotiations with UBS to appoint the bank as financial advisor to assist the preliminary review and evaluation of a potential business combination with Trojan Holding.
In September, the Dubai listed contractor said that it has started reviewing the possibility of combining its construction businesses with Abu Dhabi-based construction group Trojan Holding, which could lead to a merger between the two companies.
Arabtec posted a 47.26 percent drop in profit in the second quarter of 2019 as costs and expenses increased.
UAE’s Arabtec Holding is in negotiations with UBS to appoint the bank as financial advisor to assist the preliminary review and evaluation of a potential business combination with Trojan Holding.
In September, the Dubai listed contractor said that it has started reviewing the possibility of combining its construction businesses with Abu Dhabi-based construction group Trojan Holding, which could lead to a merger between the two companies.
Arabtec posted a 47.26 percent drop in profit in the second quarter of 2019 as costs and expenses increased.
Russian sovereign fund announces 10 deals in #UAE worth more ...
Russian sovereign fund announces 10 deals in UAE worth more ...:
Russia's RDIF sovereign wealth fund said it would sign 10 investment agreements worth more than $1.3 billion with partners from the United Arab Emirates including the Mubadala Investment Company on Tuesday.
The agreements, to be signed during a visit by Russian President Vladimir Putin, will cover high tech, health care, mineral resources extraction, logistics and industrial manufacture, RDIF said in a statement.
Russia's RDIF sovereign wealth fund said it would sign 10 investment agreements worth more than $1.3 billion with partners from the United Arab Emirates including the Mubadala Investment Company on Tuesday.
The agreements, to be signed during a visit by Russian President Vladimir Putin, will cover high tech, health care, mineral resources extraction, logistics and industrial manufacture, RDIF said in a statement.
Russia's Putin seeks to enhance ties to US-allied #UAE
Russia's Putin seeks to enhance ties to US-allied UAE:
Russian President Vladimir Putin visited the United Arab Emirates on Tuesday, as part of a Mideast tour aimed at strengthening ties between Moscow and this longtime U.S. ally amid tensions in the wider Persian Gulf.
Abu Dhabi’s powerful crown prince, Mohammed bin Zayed Al Nahyan, met Putin at the airport and traveled with him to the Qasr Al Watan palace. As they arrived, troops on horseback flanked their limousine as military jets flew overhead and left a trail of smoke in the color of the Russian flag.
The martial demonstrations, mirroring one given to Pope Francis in February, showed the importance the UAE, a federation of seven sheikhdoms on the Arabian Peninsula, put on Putin’s first visit since 2007.
Russian President Vladimir Putin visited the United Arab Emirates on Tuesday, as part of a Mideast tour aimed at strengthening ties between Moscow and this longtime U.S. ally amid tensions in the wider Persian Gulf.
Abu Dhabi’s powerful crown prince, Mohammed bin Zayed Al Nahyan, met Putin at the airport and traveled with him to the Qasr Al Watan palace. As they arrived, troops on horseback flanked their limousine as military jets flew overhead and left a trail of smoke in the color of the Russian flag.
The martial demonstrations, mirroring one given to Pope Francis in February, showed the importance the UAE, a federation of seven sheikhdoms on the Arabian Peninsula, put on Putin’s first visit since 2007.
Mashreqbank's CEO to become chairman, Q3 net profit falls - Reuters
Mashreqbank's CEO to become chairman, Q3 net profit falls - Reuters:
Dubai’s Mashreqbank said on Monday its long-standing chief executive would become chairman, with the head of its corporate and investment bank taking over as CEO.
The bank also said its third-quarter net profit dropped 8.7% to 535.75 million dirhams ($145.87 million), as net interest income fell 4.2%, mainly due to lower interest rates.
FAB Securities had forecast a net profit of 595 million dirhams.
Dubai’s Mashreqbank said on Monday its long-standing chief executive would become chairman, with the head of its corporate and investment bank taking over as CEO.
The bank also said its third-quarter net profit dropped 8.7% to 535.75 million dirhams ($145.87 million), as net interest income fell 4.2%, mainly due to lower interest rates.
FAB Securities had forecast a net profit of 595 million dirhams.
MIDEAST STOCKS- #Saudi stocks slide on banks as most Gulf markets lower - Reuters
MIDEAST STOCKS-Saudi stocks slide on banks as most Gulf markets lower - Reuters:
Most Gulf stock markets were lower on Tuesday with banking stocks weighing in Saudi Arabia.
The Saudi Arabian index shed 0.5% in early trading, as Riyad Bank declined 2.1% and National Commercial Bank, the kingdom’s largest lender by assets, decreased 1.2%.
Saudi Arabian Mining Co (Ma’aden) slid 1.2%, having signed a cooperation agreement with Russia’s PhosAgro to support food security.
Most Gulf stock markets were lower on Tuesday with banking stocks weighing in Saudi Arabia.
The Saudi Arabian index shed 0.5% in early trading, as Riyad Bank declined 2.1% and National Commercial Bank, the kingdom’s largest lender by assets, decreased 1.2%.
Saudi Arabian Mining Co (Ma’aden) slid 1.2%, having signed a cooperation agreement with Russia’s PhosAgro to support food security.
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