Aramco Failure to Win Foreign Money Makes IPO Local Event - Bloomberg:
Two years ago, when the initial public offering of Saudi oil giant Aramco held the imagination of foreign investors, President Donald Trump felt compelled to publicly lobby for the share sale to happen in America.
“Would very much appreciate Saudi Arabia doing their IPO of Aramco with the New York Stock Exchange,” Trump tweeted in November 2017.
Today Saudi Aramco isn’t just shunning New York -- and other international exchanges -- as a listing venue, but has decided it won’t even market the IPO to American, Canadian, European or Japanese investors. Instead, Aramco plans to rely heavily on ultra-wealthy Saudis, many of whom have been pressed to invest, to get the deal done. Saudi banks are loosening lending regulations to allow locals to buy more shares.
Monday, 18 November 2019
Airbus pips Boeing to $14 billion Air Arabia jet order - Reuters
Airbus pips Boeing to $14 billion Air Arabia jet order - Reuters:
Airbus (AIR.PA) clinched a $14 billion order from Air Arabia for 120 A320 jets, beating U.S. rival Boeing Co (BA.N) after more than a year of talks between the budget carrier and the planemakers.
The order announced at the biennial Dubai Air Show would more than double Sharjah-based Air Arabia’s fleet of 55 narrowbody aircraft. The United Arab Emirates’ only listed airline wants to further expand its operations beyond the Middle East.
The deal is one of the largest narrowbody plane orders in the region. At the previous air show Boeing secured an order worth $27 billion from flydubai that included options to buy 225 Boeing 737 MAX jets, which have been grounded.
Air Arabia Chief Executive Adel Ali told reporters his carrier’s order included about 70 A320neo jets, while the rest would be A321XLR and A321neo models.
Airbus (AIR.PA) clinched a $14 billion order from Air Arabia for 120 A320 jets, beating U.S. rival Boeing Co (BA.N) after more than a year of talks between the budget carrier and the planemakers.
The order announced at the biennial Dubai Air Show would more than double Sharjah-based Air Arabia’s fleet of 55 narrowbody aircraft. The United Arab Emirates’ only listed airline wants to further expand its operations beyond the Middle East.
The deal is one of the largest narrowbody plane orders in the region. At the previous air show Boeing secured an order worth $27 billion from flydubai that included options to buy 225 Boeing 737 MAX jets, which have been grounded.
Air Arabia Chief Executive Adel Ali told reporters his carrier’s order included about 70 A320neo jets, while the rest would be A321XLR and A321neo models.
#Saudi airline flynas in talks to exercise Airbus A320neo options - Reuters
Saudi airline flynas in talks to exercise Airbus A320neo options - Reuters:
Saudi airline flynas is in talks to exercise purchasing options, for some or all of 40 Airbus (AIR.PA) A320neo narrowbody jets, its chief executive said on Monday.
The Riyadh-based discount carrier ordered 80 A320neo family jets in 2017, with purchasing options for an additional 40 aircraft. In June, it signed a preliminary agreement to swap some of those for larger A321 versions.
“We are thinking to confirm part of the options but still we are in negotiations with Airbus,” CEO Chief Executive Bander Abdulrahman al-Mohanna told Reuters at the Dubai Airshow.
Saudi airline flynas is in talks to exercise purchasing options, for some or all of 40 Airbus (AIR.PA) A320neo narrowbody jets, its chief executive said on Monday.
The Riyadh-based discount carrier ordered 80 A320neo family jets in 2017, with purchasing options for an additional 40 aircraft. In June, it signed a preliminary agreement to swap some of those for larger A321 versions.
“We are thinking to confirm part of the options but still we are in negotiations with Airbus,” CEO Chief Executive Bander Abdulrahman al-Mohanna told Reuters at the Dubai Airshow.
Oil prices fall more than 1% on trade talks uncertainty - Reuters
Oil prices fall more than 1% on trade talks uncertainty - Reuters:
Oil prices fell more than 1% on Monday, erasing much of last week’s gains and tumbling alongside U.S. stocks on uncertainty over a trade deal between the United States and China.
Brent crude futures LCOc1 settled at $62.44 a barrel, down 86 cents, or 1.4%. West Texas Intermediate (WTI) crude CLc1 ended 67 cents, or 1.2%, lower at $57.05 a barrel. Both benchmarks posted their second straight weekly gain last week, with Brent rising 1.3% and WTI up 0.8%.
Wall Street’s three main stock indexes also fell from last week’s record highs following a report that stoked concerns a U.S.-China trade deal might not get through, which pushed oil prices lower, analysts said.
“Crude has become highly reactive to whichever way the wind is blowing in the (U.S.-China) trade talks. When it falters, prices get punished,” said John Kilduff, a partner at Again Capital LLC in New York. “This headwind of slack demand growth keeps holding us back.”
Oil prices fell more than 1% on Monday, erasing much of last week’s gains and tumbling alongside U.S. stocks on uncertainty over a trade deal between the United States and China.
Brent crude futures LCOc1 settled at $62.44 a barrel, down 86 cents, or 1.4%. West Texas Intermediate (WTI) crude CLc1 ended 67 cents, or 1.2%, lower at $57.05 a barrel. Both benchmarks posted their second straight weekly gain last week, with Brent rising 1.3% and WTI up 0.8%.
Wall Street’s three main stock indexes also fell from last week’s record highs following a report that stoked concerns a U.S.-China trade deal might not get through, which pushed oil prices lower, analysts said.
“Crude has become highly reactive to whichever way the wind is blowing in the (U.S.-China) trade talks. When it falters, prices get punished,” said John Kilduff, a partner at Again Capital LLC in New York. “This headwind of slack demand growth keeps holding us back.”
MIDEAST STOCKS- #Saudi gains on financials; blue-chip sell-off trips Egypt - Reuters
MIDEAST STOCKS-Saudi gains on financials; blue-chip sell-off trips Egypt - Reuters:
Saudi Arabian stocks rose on Monday, led
by gains in financial shares, but Egypt saw a sharp decline as
most blue-chip stocks fell.
Saudi Arabia's benchmark index advanced 0.9%, with
Al Rajhi Bank rising 1.1% and National Commercial Bank
climbing 1.3%.
Mediterranean and Gulf Cooperative Insurance and Reinsurance
(MedGulf) climbed 2.7%, a day after it signed a health
insurance contract with Saudi Electricity. However,
Saudi Electricity traded 0.6% down.
Saudi Industrial Export was up 1.8% following its
board approval on Sunday to open a branch in Baghdad.
Basic Chemical Industries hiked 1.7%. The chemical
firm, in a bourse filing, said that it has completed 35% of work
in its chlorine production project at Jubail Industrial City.
Saudi Arabian stocks rose on Monday, led
by gains in financial shares, but Egypt saw a sharp decline as
most blue-chip stocks fell.
Saudi Arabia's benchmark index advanced 0.9%, with
Al Rajhi Bank rising 1.1% and National Commercial Bank
climbing 1.3%.
Mediterranean and Gulf Cooperative Insurance and Reinsurance
(MedGulf) climbed 2.7%, a day after it signed a health
insurance contract with Saudi Electricity. However,
Saudi Electricity traded 0.6% down.
Saudi Industrial Export was up 1.8% following its
board approval on Sunday to open a branch in Baghdad.
Basic Chemical Industries hiked 1.7%. The chemical
firm, in a bourse filing, said that it has completed 35% of work
in its chlorine production project at Jubail Industrial City.
#Saudi Aramco calls off European leg of IPO roadshow | Financial Times
Saudi Aramco calls off European leg of IPO roadshow | Financial Times:
Saudi Arabia has called off plans to formally market shares of its state oil company outside the kingdom and other Gulf countries ahead of its long-awaited initial public offering, according to people familiar with the matter.
The decision marks the latest setback for the kingdom, which will now seek to raise about $25bn through the flotation of Saudi Aramco — just a fraction of the $100bn it once sought — by relying heavily on local investors and from those in the region.
“It’s all local now,” said one person briefed on the process. Bankers learned on Monday that no formal European investor meetings would take place, a day after roadshows in the US and Asia were called off.
Saudi Arabia has called off plans to formally market shares of its state oil company outside the kingdom and other Gulf countries ahead of its long-awaited initial public offering, according to people familiar with the matter.
The decision marks the latest setback for the kingdom, which will now seek to raise about $25bn through the flotation of Saudi Aramco — just a fraction of the $100bn it once sought — by relying heavily on local investors and from those in the region.
“It’s all local now,” said one person briefed on the process. Bankers learned on Monday that no formal European investor meetings would take place, a day after roadshows in the US and Asia were called off.
Aramco IPO Lower Valuation Is Better for #Saudi Prince, says Ayham Kamel of Eurasia Group - Bloomberg
Aramco IPO Lower Valuation Is Better for Saudi Prince, says Ayham Kamel of Eurasia Group - Bloomberg:
Ayham Kamel, Middle East & North Africa practice head at Eurasia Group, talks about Saudi Aramco's planned initial public offering. Saudi Arabia set a valuation target for Aramco’s IPO well below Crown Prince Mohammed bin Salman’s goal of $2 trillion and pared back the size of the sale. Kamel speaks with Shery Ahn and Paul Allen on "Bloomberg Daybreak: Australia." (Source: Bloomberg)
Ayham Kamel, Middle East & North Africa practice head at Eurasia Group, talks about Saudi Aramco's planned initial public offering. Saudi Arabia set a valuation target for Aramco’s IPO well below Crown Prince Mohammed bin Salman’s goal of $2 trillion and pared back the size of the sale. Kamel speaks with Shery Ahn and Paul Allen on "Bloomberg Daybreak: Australia." (Source: Bloomberg)
Oil prices edge up on trade-talk optimism, OPEC meeting - Reuters
Oil prices edge up on trade-talk optimism, OPEC meeting - Reuters:
Oil prices inched higher on Monday, extending steady gains from the previous week, with investors awaiting fresh clues over prospects for a trade deal between the United States and China and shrugging off concerns over steadily rising oil supplies.
Brent crude futures LCOc1 were up 11 cents, or 0.2%, to $63.41 a barrel at 0751 GMT. The contract rose 1.3% last week.
West Texas Intermediate (WTI) crude CLc1 were 21 cents, or 0.4%, higher at $57.93 a barrel, having gained 0.8% last week.
Early in the session, crude prices were mostly flat to their previous close as the market consolidated after Friday’s rally, said Margaret Yang, market analyst at CMC Markets.
Oil prices inched higher on Monday, extending steady gains from the previous week, with investors awaiting fresh clues over prospects for a trade deal between the United States and China and shrugging off concerns over steadily rising oil supplies.
Brent crude futures LCOc1 were up 11 cents, or 0.2%, to $63.41 a barrel at 0751 GMT. The contract rose 1.3% last week.
West Texas Intermediate (WTI) crude CLc1 were 21 cents, or 0.4%, higher at $57.93 a barrel, having gained 0.8% last week.
Early in the session, crude prices were mostly flat to their previous close as the market consolidated after Friday’s rally, said Margaret Yang, market analyst at CMC Markets.
Etihad Airways still has long way to go to become profitable: Group CEO - Reuters
Etihad Airways still has long way to go to become profitable: Group CEO - Reuters:
Abu Dhabi-based Etihad Airways still has a long way to go to become profitable, Group CEO Tony Douglas said on Monday.
“We are slightly ahead of where we plan to be. And if we stay focused will see a very strong Etihad,” Douglas told reporters.
Etihad suffered its third consecutive annual loss in 2018 despite cost savings of nearly half a billion dollars as it cut its workforce and fleet.
Abu Dhabi-based Etihad Airways still has a long way to go to become profitable, Group CEO Tony Douglas said on Monday.
“We are slightly ahead of where we plan to be. And if we stay focused will see a very strong Etihad,” Douglas told reporters.
Etihad suffered its third consecutive annual loss in 2018 despite cost savings of nearly half a billion dollars as it cut its workforce and fleet.
#UAE's Tawazun takes 50% stake in Russia's VR Technologies - Reuters
UAE's Tawazun takes 50% stake in Russia's VR Technologies - Reuters:
Tawazun, the United Arab Emirates’ defense and security industry enabler, is taking a 50% stake in VR Technologies, a unit of Russian Helicopters, the two companies said on Monday.
The announcement was made at the biennial Dubai Air Show as the UAE continues to invest in advanced defense industries as part of its diversification strategy.
Tawazun is taking a stake in VR Technologies through the Tawazun Defense Security & Development Fund.
Tawazun, the United Arab Emirates’ defense and security industry enabler, is taking a 50% stake in VR Technologies, a unit of Russian Helicopters, the two companies said on Monday.
The announcement was made at the biennial Dubai Air Show as the UAE continues to invest in advanced defense industries as part of its diversification strategy.
Tawazun is taking a stake in VR Technologies through the Tawazun Defense Security & Development Fund.
#Kuwait's emir reappoints premier, removes defence and interior ministers - Reuters
Kuwait's emir reappoints premier, removes defence and interior ministers - Reuters:
Kuwait’s ruling emir on Monday reappointed Sheikh Jaber al-Mubarak al-Sabah as prime minister but removed the defence and interior ministers, both senior members of the ruling family, from their posts after the government’s resignation last week.
Emir Sheikh Sabah al-Ahmad al-Sabah asked Sheikh Jaber to form a new cabinet, state news agency KUNA said. Sheikh Jaber last week submitted the government’s resignation when lawmakers sought a no-confidence vote against the interior minister.
KUNA said in a separate statement that the emir ordered the removal of his son, Defence Minister Sheikh Nasser Sabah al-Ahmad al-Sabah, and Interior Minister Sheikh Sabah Al-Khalid Al-Sabah from their posts in the current caretaker cabinet.
Kuwait’s ruling emir on Monday reappointed Sheikh Jaber al-Mubarak al-Sabah as prime minister but removed the defence and interior ministers, both senior members of the ruling family, from their posts after the government’s resignation last week.
Emir Sheikh Sabah al-Ahmad al-Sabah asked Sheikh Jaber to form a new cabinet, state news agency KUNA said. Sheikh Jaber last week submitted the government’s resignation when lawmakers sought a no-confidence vote against the interior minister.
KUNA said in a separate statement that the emir ordered the removal of his son, Defence Minister Sheikh Nasser Sabah al-Ahmad al-Sabah, and Interior Minister Sheikh Sabah Al-Khalid Al-Sabah from their posts in the current caretaker cabinet.
#Kuwait's Jazeera unhappy with Airbus delays, no plans for aircraft order this week - Reuters
Kuwait's Jazeera unhappy with Airbus delays, no plans for aircraft order this week - Reuters:
Kuwait’s Jazeera Airways (JAZK.KW) is unhappy with delivery delays of Airbus (AIR.PA) aircraft and has no plans to place an order at this week’s Dubai Airshow, its chief executive said.
Airbus and Boeing (BA.N) are vying for an order of up to 25 narrowbody jets from the Middle East budget carrier which now expects to place an order by the middle of next year.
“We have no plans to make an order announcement at the air show,” Rohit Ramachandran told Reuters at the Dubai Airshow.
The Airbus A320 operator says production issues have delayed the delivery of new aircraft this year, forcing it to push back some route launches this year.
Kuwait’s Jazeera Airways (JAZK.KW) is unhappy with delivery delays of Airbus (AIR.PA) aircraft and has no plans to place an order at this week’s Dubai Airshow, its chief executive said.
Airbus and Boeing (BA.N) are vying for an order of up to 25 narrowbody jets from the Middle East budget carrier which now expects to place an order by the middle of next year.
“We have no plans to make an order announcement at the air show,” Rohit Ramachandran told Reuters at the Dubai Airshow.
The Airbus A320 operator says production issues have delayed the delivery of new aircraft this year, forcing it to push back some route launches this year.
COLUMN- #Saudi Aramco's behaviour after IPO matters more than lofty $1.7 trillion valuation: Russell - Reuters
COLUMN-Saudi Aramco's behaviour after IPO matters more than lofty $1.7 trillion valuation: Russell - Reuters:
The market focus on the valuation of Saudi Aramco’s initial public offering is similar to Bugatti Chiron owners focusing on their vehicles’ top speeds - interesting, but of little relevance.
The $1.7 trillion upper value placed on the Saudi state oil company, the world’s largest crude exporter, will no doubt generate speculation as to whether it’s too high, and whether it will be viewed as reasonable enough to attract interest beyond the kingdom’s small domestic equity market.
But these discussions are largely irrelevant for the crude oil market.
By far the most important question for crude markets is whether the IPO of Aramco (IPO-ARMO.SE) will alter the behaviour of the oil giant in any meaningful way likely to make an impact on market dynamics?
The market focus on the valuation of Saudi Aramco’s initial public offering is similar to Bugatti Chiron owners focusing on their vehicles’ top speeds - interesting, but of little relevance.
The $1.7 trillion upper value placed on the Saudi state oil company, the world’s largest crude exporter, will no doubt generate speculation as to whether it’s too high, and whether it will be viewed as reasonable enough to attract interest beyond the kingdom’s small domestic equity market.
But these discussions are largely irrelevant for the crude oil market.
By far the most important question for crude markets is whether the IPO of Aramco (IPO-ARMO.SE) will alter the behaviour of the oil giant in any meaningful way likely to make an impact on market dynamics?
Emirates Signs Off on Delayed Airbus Order Worth $16 Billion - Bloomberg
Emirates Signs Off on Delayed Airbus Order Worth $16 Billion - Bloomberg:
Gulf airline Emirates finalized an order for 50 Airbus SE jetliners worth about $16 billion at list prices, reshaping a deal after a review of its fleet strategy and concerns about the performance of the planes.
Emirates will purchase Airbus A350 wide-body aircraft, more than 30 it agreed to take in an outline deal in February, according to the airline, which plans to take delivery starting in 2023.
Emirates is still in talks with the planemaker for a possible orders of A330neos and with U.S. rival Boeing Co. for 787s, it said.
Gulf airline Emirates finalized an order for 50 Airbus SE jetliners worth about $16 billion at list prices, reshaping a deal after a review of its fleet strategy and concerns about the performance of the planes.
Emirates will purchase Airbus A350 wide-body aircraft, more than 30 it agreed to take in an outline deal in February, according to the airline, which plans to take delivery starting in 2023.
Emirates is still in talks with the planemaker for a possible orders of A330neos and with U.S. rival Boeing Co. for 787s, it said.
#AbuDhabi’s Etihad to Get 20 Fewer Boeing 787 Dreamliners - Bloomberg
Abu Dhabi’s Etihad to Get 20 Fewer Boeing 787 Dreamliners - Bloomberg:
Etihad Airways will take 20 fewer Boeing Co. 787 Dreamliners over the next four years than originally planned as the Mideast carrier reins in growth to pare losses.
The airline, based in Abu Dhabi, will now have 51 787s in service by 2023, Chief Executive Officer Tony Douglas said Monday in remarks at the Dubai Airshow. The Dreamliner will comprise 50% of the fleet by that time, he said.
State-owned Etihad has already cut an order for Boeing Co. 777-9 aircraft to six jets from 25, while canceling delivery of 42 Airbus A350 wide-bodies, leaving it with 20. The company said in February that it would slow the arrival of the 787s “through rescheduling, restructuring or reduction.”
Etihad Airways will take 20 fewer Boeing Co. 787 Dreamliners over the next four years than originally planned as the Mideast carrier reins in growth to pare losses.
The airline, based in Abu Dhabi, will now have 51 787s in service by 2023, Chief Executive Officer Tony Douglas said Monday in remarks at the Dubai Airshow. The Dreamliner will comprise 50% of the fleet by that time, he said.
State-owned Etihad has already cut an order for Boeing Co. 777-9 aircraft to six jets from 25, while canceling delivery of 42 Airbus A350 wide-bodies, leaving it with 20. The company said in February that it would slow the arrival of the 787s “through rescheduling, restructuring or reduction.”
#UAE Cabinet Passes Insolvency Law for Individuals - Bloomberg
U.A.E. Cabinet Passes Insolvency Law for Individuals - Bloomberg:
The United Arab Emirates’ cabinet passed a long-awaited insolvency law for individuals, aimed at making the country a more attractive place to do business.
The legislation’s passage was reported Sunday on Twitter by state-run WAM news agency.
The Gulf nation, home to regional business hub Dubai, has been contending with an economic slump caused by low oil prices, forcing it to introduce incentives to attract investment and foreign talent.
The U.A.E. has been promising to introduce insolvency laws for years. The absence of legislation was widely blamed for the flight of thousands of Dubai residents who lost jobs during the 2008 global financial crisis. Faced with the possibility of jail time, many said they had no choice but to leave after the economic slowdown left them unable to pay debts.
The United Arab Emirates’ cabinet passed a long-awaited insolvency law for individuals, aimed at making the country a more attractive place to do business.
The legislation’s passage was reported Sunday on Twitter by state-run WAM news agency.
The Gulf nation, home to regional business hub Dubai, has been contending with an economic slump caused by low oil prices, forcing it to introduce incentives to attract investment and foreign talent.
The U.A.E. has been promising to introduce insolvency laws for years. The absence of legislation was widely blamed for the flight of thousands of Dubai residents who lost jobs during the 2008 global financial crisis. Faced with the possibility of jail time, many said they had no choice but to leave after the economic slowdown left them unable to pay debts.
#Saudi Aramco Cancels London Leg of Planned IPO Roadshow - Bloomberg
Saudi Aramco Cancels London Leg of Planned IPO Roadshow - Bloomberg:
Saudi Aramco canceled the London leg of its initial public offering roadshow, scheduled for Wednesday, according to people familiar with the situation, who asked not be named because it wasn’t a public event.
It’s the latest sign that the giant Saudi oil company has scaled back the international ambitions for the IPO because of lackluster demand from money managers. The company had already decided not to market the share sale in the U.S., Canada or Japan.
The deal will now mainly rely on rich Saudi families and other local investors.
Saudi Aramco canceled the London leg of its initial public offering roadshow, scheduled for Wednesday, according to people familiar with the situation, who asked not be named because it wasn’t a public event.
It’s the latest sign that the giant Saudi oil company has scaled back the international ambitions for the IPO because of lackluster demand from money managers. The company had already decided not to market the share sale in the U.S., Canada or Japan.
The deal will now mainly rely on rich Saudi families and other local investors.
MIDEAST STOCKS-Banks elevate #Saudi index; other Gulf markets mixed - Agricultural Commodities - Reuters
MIDEAST STOCKS-Banks elevate Saudi index; other Gulf markets mixed - Agricultural Commodities - Reuters:
Saudi Arabia’s stock market rose in early trade on Monday, supported by banking stocks, while real estate stocks led the losses in Dubai.
In Saudi Arabia, the benchmark index gained 0.6% with Al Rajhi Bank increasing 0.8% and National Commercial Bank adding 1.3%.
Among other stocks, Mediterranean And Gulf Cooperative Insurance And Reinsurance leapt 3%, a day after it signed a health insurance contract with Saudi Electricity .
Saudi Industrial Export was up 0.8%, following its board approval on Sunday, to open a branch in Baghdad.
Saudi Arabia’s stock market rose in early trade on Monday, supported by banking stocks, while real estate stocks led the losses in Dubai.
In Saudi Arabia, the benchmark index gained 0.6% with Al Rajhi Bank increasing 0.8% and National Commercial Bank adding 1.3%.
Among other stocks, Mediterranean And Gulf Cooperative Insurance And Reinsurance leapt 3%, a day after it signed a health insurance contract with Saudi Electricity .
Saudi Industrial Export was up 0.8%, following its board approval on Sunday, to open a branch in Baghdad.
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