Banks on the Frontline of Lebanon's Crisis Get Downgraded by S&P - Bloomberg:
Three top banks in Lebanon were downgraded below the sovereign by S&P Global Ratings, which warned that the country’s economic crisis is draining liquidity from lenders that have stayed shuttered for much of the past month because of anti-government unrest.
S&P said on Thursday that it lowered its long-term issuer credit ratings on Bank Audi, Blom Bank and Bankmed by two notches to CCC, the fifth-lowest junk level, and kept them on “credit-watch negative.” Last month, the rating company placed Lebanon’s B- grade on negative watch for a possible downgrade.
“Lebanese banks are experiencing rising liquidity pressures,” S&P analysts Pierre Hollegien and Stephanie Mery said in a report. “The deposit erosion that started in first-half 2019 has recently intensified.”
Thursday 14 November 2019
#UAE's ADNOC invests $490 million to upgrade Bab onshore field | ZAWYA MENA Edition
UAE's ADNOC invests $490 million to upgrade Bab onshore field | ZAWYA MENA Edition:
The Abu Dhabi National Oil Company (ADNOC) is investing 1.8 billion dirhams ($490 million) to upgrade Bab, one of its largest onshore producing assets.
The investment in Bab onshore field, located 160 kilometers southwest of Abu Dhabi, will be through an Engineering, Procurement and Construction (EPC) contract, that will achieve In-Country Value (ICV) in excess of 75 percent, ADNOC said in a statement.
ADNOC Onshore, a subsidiary of ADNOC and the operator of the field, awarded the EPC contract to Archirodon Construction Overseas SA Co (Archirodon) to build the facilities and infrastructure required to sustain long-term crude oil production capacity of the field at 485,000 barrels per day (bpd), the statement added.
The Abu Dhabi National Oil Company (ADNOC) is investing 1.8 billion dirhams ($490 million) to upgrade Bab, one of its largest onshore producing assets.
The investment in Bab onshore field, located 160 kilometers southwest of Abu Dhabi, will be through an Engineering, Procurement and Construction (EPC) contract, that will achieve In-Country Value (ICV) in excess of 75 percent, ADNOC said in a statement.
ADNOC Onshore, a subsidiary of ADNOC and the operator of the field, awarded the EPC contract to Archirodon Construction Overseas SA Co (Archirodon) to build the facilities and infrastructure required to sustain long-term crude oil production capacity of the field at 485,000 barrels per day (bpd), the statement added.
Russia's Putin: #SaudiArabia taking tough stance on OPEC deal - Reuters
Russia's Putin: Saudi Arabia taking tough stance on OPEC deal - Reuters:
Russian President Vladimir Putin said on Thursday that Saudi Arabia was taking a tough stance on the output deal between OPEC and its allies because of Saudi Aramco’s initial public offering, but that Moscow respected Riyadh’s interests.
Speaking to reporters in Brazil at a summit for BRICS countries, Putin said Moscow should continue to work with OPEC and that cooperation should not only be on oil production cuts.
OPEC, Russia and other oil producers have since Jan. 1 implemented a deal to cut output by 1.2 million barrels per day. In July, the alliance renewed their pact until March 2020. They are set to meet for policy talks on Dec. 5-6.
Russian President Vladimir Putin said on Thursday that Saudi Arabia was taking a tough stance on the output deal between OPEC and its allies because of Saudi Aramco’s initial public offering, but that Moscow respected Riyadh’s interests.
Speaking to reporters in Brazil at a summit for BRICS countries, Putin said Moscow should continue to work with OPEC and that cooperation should not only be on oil production cuts.
OPEC, Russia and other oil producers have since Jan. 1 implemented a deal to cut output by 1.2 million barrels per day. In July, the alliance renewed their pact until March 2020. They are set to meet for policy talks on Dec. 5-6.
OPEC sees smaller 2020 oil surplus ahead of policy meeting - Reuters
OPEC sees smaller 2020 oil surplus ahead of policy meeting - Reuters:
OPEC said on Thursday it expected demand for its oil to fall in 2020 as rivals pumped more despite a smaller surplus of crude in the global market, building a case for the group to maintain supply curbs when it meets to discuss policy next month.
In its last monthly report before the Dec. 5-6 talks, OPEC said demand for its crude would average 29.58 million barrels per day (bpd) next year, 1.12 million bpd less than in 2019.
That points to a 2020 surplus of about 70,000 bpd, which is less than indicated in previous reports.
OPEC said on Thursday it expected demand for its oil to fall in 2020 as rivals pumped more despite a smaller surplus of crude in the global market, building a case for the group to maintain supply curbs when it meets to discuss policy next month.
In its last monthly report before the Dec. 5-6 talks, OPEC said demand for its crude would average 29.58 million barrels per day (bpd) next year, 1.12 million bpd less than in 2019.
That points to a 2020 surplus of about 70,000 bpd, which is less than indicated in previous reports.
Oil mixed amid U.S. crude stock build, OPEC surplus forecast - Reuters
Oil mixed amid U.S. crude stock build, OPEC surplus forecast - Reuters:
Oil prices were mixed on Thursday as U.S. crude futures were pressured by a build in domestic inventories and record production, while forecasts from the Organization of the Petroleum Exporting Countries for a lower-than-expected oil surplus supported Brent.
Brent crude futures LCOc1 were up 3 cents to $62.40 a barrel by 1:22 p.m. EST (1822 GMT), while West Texas Intermediate crude CLc1 was down 20 cents to $56.92 a barrel.
U.S. crude stockpiles grew last week by 2.2 million barrels, compared with analysts’ expectations in a Reuters poll for a 1.649 million-barrel rise, as production hit a record high, the Energy Information Administration said.
“It’s really about the inventory report today,” said Phil Flynn, an analyst at Price Futures Group in Chicago. “The build in crude oil supply was a bit of a disappointment.”
Oil prices were mixed on Thursday as U.S. crude futures were pressured by a build in domestic inventories and record production, while forecasts from the Organization of the Petroleum Exporting Countries for a lower-than-expected oil surplus supported Brent.
Brent crude futures LCOc1 were up 3 cents to $62.40 a barrel by 1:22 p.m. EST (1822 GMT), while West Texas Intermediate crude CLc1 was down 20 cents to $56.92 a barrel.
U.S. crude stockpiles grew last week by 2.2 million barrels, compared with analysts’ expectations in a Reuters poll for a 1.649 million-barrel rise, as production hit a record high, the Energy Information Administration said.
“It’s really about the inventory report today,” said Phil Flynn, an analyst at Price Futures Group in Chicago. “The build in crude oil supply was a bit of a disappointment.”
MIDEAST STOCKS-Financials lift #UAE indexes, poor earnings weigh on Egypt - Reuters
MIDEAST STOCKS-Financials lift UAE indexes, poor earnings weigh on Egypt - Reuters:
Stock markets in the United Arab Emirates rose on
Thursday, lifted by banking shares, while a host of disappointing corporate
earnings weighed on Egypt's bourse.
Egypt's blue-chip index was down 0.4% with foreigners net sellers,
according to Egyptian stock exchange data.
Telecom Egypt fell 1.4% as a drop in third-quarter profit weighed
on the stock.
Alexandria Mineral Oils fell 4.9%, down for a fourth consecutive
session. On Wednesday, the oil company reported an 87% plunge in first-quarter
profit
Stock markets in the United Arab Emirates rose on
Thursday, lifted by banking shares, while a host of disappointing corporate
earnings weighed on Egypt's bourse.
Egypt's blue-chip index was down 0.4% with foreigners net sellers,
according to Egyptian stock exchange data.
Telecom Egypt fell 1.4% as a drop in third-quarter profit weighed
on the stock.
Alexandria Mineral Oils fell 4.9%, down for a fourth consecutive
session. On Wednesday, the oil company reported an 87% plunge in first-quarter
profit
Egypt, #UAE to Set Up $20 Billion Joint Investment Platform - Bloomberg
Egypt, U.A.E. to Set Up $20 Billion Joint Investment Platform - Bloomberg:
Egypt and the United Arab Emirates are setting up a $20 billion joint strategic platform to invest in a range of sectors and assets, the presidency said Thursday.
The deal comes as President Abdel-Fattah El-Sisi is in the U.A.E. for meeting with officials and marks the latest boost the Arab world’s most populous nation has received from the oil-rich Gulf since the 2013 ouster of Islamist President Mohamed Mursi.
The investment platform will be run through Egypt’s newly established sovereign wealth fund and Abu Dhabi Development Holding Co.
Egypt and the United Arab Emirates are setting up a $20 billion joint strategic platform to invest in a range of sectors and assets, the presidency said Thursday.
The deal comes as President Abdel-Fattah El-Sisi is in the U.A.E. for meeting with officials and marks the latest boost the Arab world’s most populous nation has received from the oil-rich Gulf since the 2013 ouster of Islamist President Mohamed Mursi.
The investment platform will be run through Egypt’s newly established sovereign wealth fund and Abu Dhabi Development Holding Co.
Akber Khan, Al Rayan Investment Senior Director of Asset Management - Bloomberg
Akber Khan, Al Rayan Investment Senior Director of Asset Management - Bloomberg:
Akber Khan, senior director of asset management at Al Rayan Investment, discusses the efforts to resolve the standoff between Qatar and the Saudi-led bloc with an upcoming soccer tournament in Doha and his outlook for Saudi stocks. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Akber Khan, senior director of asset management at Al Rayan Investment, discusses the efforts to resolve the standoff between Qatar and the Saudi-led bloc with an upcoming soccer tournament in Doha and his outlook for Saudi stocks. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
World’s Biggest Wealth Fund Drops G4S on #Qatar, #UAE Worker Abuses - Bloomberg
World’s Biggest Wealth Fund Drops G4S on Qatar Worker Abuses - Bloomberg:
Norway’s sovereign-wealth fund has dropped U.K. security firm G4S Plc from its portfolio, citing abuses of migrant-worker rights in Qatar and the United Arab Emirates.
The central bank in Oslo, which manages the $1.1 trillion fund, said it took the step “due to unacceptable risk that the company contributes to or is responsible for serious or systematic human rights violations,” according to a statement on Thursday.
Shares in G4S dropped as much as 3.7% in London trading. The fund held a 2.33% stake in G4S at the end of 2018, valued at the time at about $91 million. The investor currently has 156 companies on its exclusion list.
Norway’s sovereign-wealth fund has dropped U.K. security firm G4S Plc from its portfolio, citing abuses of migrant-worker rights in Qatar and the United Arab Emirates.
The central bank in Oslo, which manages the $1.1 trillion fund, said it took the step “due to unacceptable risk that the company contributes to or is responsible for serious or systematic human rights violations,” according to a statement on Thursday.
Shares in G4S dropped as much as 3.7% in London trading. The fund held a 2.33% stake in G4S at the end of 2018, valued at the time at about $91 million. The investor currently has 156 companies on its exclusion list.
Oil Price Hurt #Dubai’s Economy, But Malls Are Still Getting Built - Bloomberg
Oil Price Hurt Dubai’s Economy, But Malls Are Still Getting Built - Bloomberg:
A desert city of gleaming skyscrapers and wealthy foreigners accustomed to packed, air-conditioned shopping malls, Dubai has developed an unexpected problem in recent years: empty storefronts.
This 1,600-square-mile oasis of commerce has dozens of malls where visitors can shop while keeping cool. The fancier ones boast marble corridors lined with luxury retailers and restaurants. Huge movie theaters, electric vehicle charging stations and health clinics are among the offerings meant to keep consumers inside and spending. At Dubai’s top-tier “destination” malls, there’s even an aquarium and an indoor ski slope.
But in the five years since oil prices fell from three-digit highs, this metropolis has been hurting. Its breakneck pace of commercial and residential development outstripped demand, and a strong dollar has made everything more expensive. Property prices across the United Arab Emirates have declined by about 27% since 2014, and the U.A.E.’s annual growth rate is now below 2%.
A desert city of gleaming skyscrapers and wealthy foreigners accustomed to packed, air-conditioned shopping malls, Dubai has developed an unexpected problem in recent years: empty storefronts.
This 1,600-square-mile oasis of commerce has dozens of malls where visitors can shop while keeping cool. The fancier ones boast marble corridors lined with luxury retailers and restaurants. Huge movie theaters, electric vehicle charging stations and health clinics are among the offerings meant to keep consumers inside and spending. At Dubai’s top-tier “destination” malls, there’s even an aquarium and an indoor ski slope.
But in the five years since oil prices fell from three-digit highs, this metropolis has been hurting. Its breakneck pace of commercial and residential development outstripped demand, and a strong dollar has made everything more expensive. Property prices across the United Arab Emirates have declined by about 27% since 2014, and the U.A.E.’s annual growth rate is now below 2%.
Successful #Saudi Aramco IPO could revive MENA capital markets | ZAWYA MENA Edition
Successful Saudi Aramco IPO could revive MENA capital markets | ZAWYA MENA Edition:
A successful IPO of the world’s largest oil company, Saudi Aramco, is expected to boost investor sentiment in the region, a senior official at Emirates NBD said.
“Saudi Aramco IPO is very important for the region. It’s probably going to be the largest IPO in the world,” Asar Mashkoor, Managing Director Investment Banking at Emirates NBD Capital told Zawya.
The initial public offering (IPO), which is set to rank Aramco as the world’s most valuable company, will start on November 17.
A successful IPO of the world’s largest oil company, Saudi Aramco, is expected to boost investor sentiment in the region, a senior official at Emirates NBD said.
“Saudi Aramco IPO is very important for the region. It’s probably going to be the largest IPO in the world,” Asar Mashkoor, Managing Director Investment Banking at Emirates NBD Capital told Zawya.
The initial public offering (IPO), which is set to rank Aramco as the world’s most valuable company, will start on November 17.
#AbuDhabi's new Murban exchange set to be a regional centre for crude - NYSE Chairman | ZAWYA MENA Edition
Abu Dhabi's new Murban exchange set to be a regional centre for crude - NYSE Chairman | ZAWYA MENA Edition:
The new international exchange for Murban crude oil that will be based in Abu Dhabi is set to open significant possibilities for the UAE capital by evolving into a transparent, regulated regional center for crude, according to the chairman of New York Stock Exchange (NYSE).
Intercontinental Exchange, a major operator of global exchanges, earlier this week announced that it’ll launch ICE Futures Abu Dhabi (IFAD) that will host the world's first futures contracts based on Abu Dhabi National Oil Company's (ADNOC) flagship Murban crude oil. Read more here:
“Exchanges are iconic. Stock exchanges (in the US) are often wrapped with the American flag on the entire building. If you look at photos of the New York Stock Exchange, you’ll see that it is a symbol of capitalism for the United States in the same way that what we’re looking to do here is create a functioning symbol for Middle East crude that can roll its span,” said Jeffrey Sprecher, chairman of NYSE on Tuesday.
The new international exchange for Murban crude oil that will be based in Abu Dhabi is set to open significant possibilities for the UAE capital by evolving into a transparent, regulated regional center for crude, according to the chairman of New York Stock Exchange (NYSE).
Intercontinental Exchange, a major operator of global exchanges, earlier this week announced that it’ll launch ICE Futures Abu Dhabi (IFAD) that will host the world's first futures contracts based on Abu Dhabi National Oil Company's (ADNOC) flagship Murban crude oil. Read more here:
“Exchanges are iconic. Stock exchanges (in the US) are often wrapped with the American flag on the entire building. If you look at photos of the New York Stock Exchange, you’ll see that it is a symbol of capitalism for the United States in the same way that what we’re looking to do here is create a functioning symbol for Middle East crude that can roll its span,” said Jeffrey Sprecher, chairman of NYSE on Tuesday.
HSBC, Emirates NBD cut jobs in #UAE as banks look to reduce costs - sources - Reuters
HSBC, Emirates NBD cut jobs in UAE as banks look to reduce costs - sources - Reuters:
HSBC Holdings (HSBA.L) has laid off about 40 bankers in the United Arab Emirates (UAE) and Emirates NBD is cutting around 100 jobs, as banks in the Arab world’s second-biggest economy reduce costs, sources familiar with the move told Reuters.
The job cuts come at a time of weak economic growth, especially in the region’s business hub - Dubai - which is suffering from a property downturn.
HSBC’s redundancies came after the London-based bank reported a sharp fall in earnings and warned of a costly restructuring, as interim Chief Executive Noel Quinn seeks to tackle its problems head-on in his bid for the full-time role.
HSBC Holdings (HSBA.L) has laid off about 40 bankers in the United Arab Emirates (UAE) and Emirates NBD is cutting around 100 jobs, as banks in the Arab world’s second-biggest economy reduce costs, sources familiar with the move told Reuters.
The job cuts come at a time of weak economic growth, especially in the region’s business hub - Dubai - which is suffering from a property downturn.
HSBC’s redundancies came after the London-based bank reported a sharp fall in earnings and warned of a costly restructuring, as interim Chief Executive Noel Quinn seeks to tackle its problems head-on in his bid for the full-time role.
#UAE, Egypt launch $20 billion investment platform: Abu Dhabi crown prince - Reuters
UAE, Egypt launch $20 billion investment platform: Abu Dhabi crown prince - Reuters:
The United Arab Emirates and Egypt have launched a $20 billion investment platform for economic and social projects, the crown prince of Abu Dhabi Mohammed bin Zayed al-Nahyan said on Twitter on Thursday.
Egypt’s President Abdel Fattah al-Sisi began a visit to the UAE on Wednesday.
The United Arab Emirates and Egypt have launched a $20 billion investment platform for economic and social projects, the crown prince of Abu Dhabi Mohammed bin Zayed al-Nahyan said on Twitter on Thursday.
Egypt’s President Abdel Fattah al-Sisi began a visit to the UAE on Wednesday.
#Kuwait's government submits resignation - Reuters
Kuwait's government submits resignation - Reuters:
Kuwait’s prime minister has submitted his cabinet’s resignation to the ruling emir of the Gulf Arab state, a government spokesman said on Thursday.
The resignation came after Kuwaiti lawmakers on Tuesday submitted a motion for a no-confidence vote against Interior Minister Sheikh Khalid al-Jarrah al-Sabah, who is a senior member of the ruling Al Sabah family.
Cabinet resignations in Kuwait happen frequently when elected lawmakers are set to question or submit a no-confidence vote against senior government officials.
Kuwait’s prime minister has submitted his cabinet’s resignation to the ruling emir of the Gulf Arab state, a government spokesman said on Thursday.
The resignation came after Kuwaiti lawmakers on Tuesday submitted a motion for a no-confidence vote against Interior Minister Sheikh Khalid al-Jarrah al-Sabah, who is a senior member of the ruling Al Sabah family.
Cabinet resignations in Kuwait happen frequently when elected lawmakers are set to question or submit a no-confidence vote against senior government officials.
UPDATE 2- #Qatar plans change in crude oil official selling prices in Q1 2020 -sources - Reuters
UPDATE 2-Qatar plans change in crude oil official selling prices in Q1 2020 -sources - Reuters:
Qatar Petroleum (QP) has told some term crude buyers in Asia this week that it plans to change the way it prices its oil early next year to align with other Middle East producers, sources with knowledge of the matter said on Thursday.
The change follows the Abu Dhabi National Oil Company (ADNOC) saying on Monday that it plans to build a new international exchange for its flagship Murban crude which will start pricing its oil on a forward pricing basis.
QP currently prices two of its grades - Qatar Land and Qatar Marine - on a retroactive basis but will move this to forward pricing, a more popular approach used by other Middle East crude exporters such as Saudi Arabia that better matches the trading cycle of crude, the sources said.
Qatar Petroleum (QP) has told some term crude buyers in Asia this week that it plans to change the way it prices its oil early next year to align with other Middle East producers, sources with knowledge of the matter said on Thursday.
The change follows the Abu Dhabi National Oil Company (ADNOC) saying on Monday that it plans to build a new international exchange for its flagship Murban crude which will start pricing its oil on a forward pricing basis.
QP currently prices two of its grades - Qatar Land and Qatar Marine - on a retroactive basis but will move this to forward pricing, a more popular approach used by other Middle East crude exporters such as Saudi Arabia that better matches the trading cycle of crude, the sources said.
MIDEAST STOCKS-Most Gulf equities dip; Emirates NBD leads #Dubai higher - Reuters
MIDEAST STOCKS-Most Gulf equities dip; Emirates NBD leads Dubai higher - Reuters:
Most Gulf markets were down in early trade on Thursday, while Dubai outperformed its regional peers due to a surge in Emirates NBD.
Dubai’s main index was up 1.2%, with Emirates NBD gaining 3.6% after the emirate’s largest lender confirmed the sale of 31 million shares in Network International Holdings for 160 million pounds ($204.74 million).
Emaar Development rose 1.1% after it signed a sale and purchase agreement for units in tower 1 of the Creek Edge project.
Dubai’s amusement park operator DXB Entertainment, however, slid 2.4% after reporting a loss of 268.2 million dirhams ($73.02 million). Its accumulated losses stand at 5.02 billion dirhams.
Most Gulf markets were down in early trade on Thursday, while Dubai outperformed its regional peers due to a surge in Emirates NBD.
Dubai’s main index was up 1.2%, with Emirates NBD gaining 3.6% after the emirate’s largest lender confirmed the sale of 31 million shares in Network International Holdings for 160 million pounds ($204.74 million).
Emaar Development rose 1.1% after it signed a sale and purchase agreement for units in tower 1 of the Creek Edge project.
Dubai’s amusement park operator DXB Entertainment, however, slid 2.4% after reporting a loss of 268.2 million dirhams ($73.02 million). Its accumulated losses stand at 5.02 billion dirhams.
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