Oil ends mixed, pressured by U.S. tensions with China over rights bill - Reuters:
Oil prices ended mixed on Thursday, with U.S. prices rebounding modestly from concerns that arose from U.S. President Donald Trump signing into law a bill backing protesters in Hong Kong, fuelling tensions with China.
Brent crude lost 14 cents, or 0.2%, at $63.92 a barrel, paring earlier losses.
West Texas Intermediate crude reversed losses to close up 13 cents, or 0.2%, at $58.24, with many U.S. traders away for the Thanksgiving holiday.
China warned the United States that it would take “firm countermeasures” in response to U.S. legislation backing anti-government protesters in Hong Kong.
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Thursday 28 November 2019
#Dubai Property Tycoon Buys Italian Fashion Brand Roberto Cavalli - Bloomberg
Dubai Property Tycoon Buys Italian Fashion Brand Roberto Cavalli - Bloomberg:
Damac Properties PJSC’s chairman bought Italian fashion group Roberto Cavalli SpA through his private investment firm.
Hussain Sajwani’s Vision Investments completed the acquisition of the Florentine brand on Thursday, according to a statement. It didn’t provide a value for the deal.
Damac Properties PJSC’s chairman bought Italian fashion group Roberto Cavalli SpA through his private investment firm.
Hussain Sajwani’s Vision Investments completed the acquisition of the Florentine brand on Thursday, according to a statement. It didn’t provide a value for the deal.
Lebanon Bond Repayment Wins Time for a Nation in Crisis - Bloomberg
Lebanon Bond Repayment Wins Time for a Nation in Crisis - Bloomberg:
Lebanon repaid a $1.5 billion Eurobond on Thursday, an official with knowledge of the matter said, buying the country time as speculation swirls over its ability to avoid a default during a political and economic crisis.
The Finance Ministry issued payment instructions to the central bank, also known as Banque du Liban, the official said on condition of anonymity. The next bond payment is scheduled for March, when a $1.2 billion Eurobond comes due.
Lebanon has never defaulted on its obligations despite struggling under one of the world’s biggest debt burdens, and the central bank had repeatedly said it would cover the $1.5 billion bond. But weeks of nationwide protests that ousted the government saw credit risk surge and investor confidence slump.
Lebanon repaid a $1.5 billion Eurobond on Thursday, an official with knowledge of the matter said, buying the country time as speculation swirls over its ability to avoid a default during a political and economic crisis.
The Finance Ministry issued payment instructions to the central bank, also known as Banque du Liban, the official said on condition of anonymity. The next bond payment is scheduled for March, when a $1.2 billion Eurobond comes due.
Lebanon has never defaulted on its obligations despite struggling under one of the world’s biggest debt burdens, and the central bank had repeatedly said it would cover the $1.5 billion bond. But weeks of nationwide protests that ousted the government saw credit risk surge and investor confidence slump.
#Dubai, #Sharjah more vulnerable to slowdown in non-oil sector: Moody's | ZAWYA MENA Edition
Dubai, Sharjah more vulnerable to slowdown in non-oil sector: Moody's | ZAWYA MENA Edition:
The slowdown in the non-oil sector is likely to affect Dubai and Sharjah more than the UAE capital Abu Dhabi whose reliance on the sector is non-significant, Global ratings agency Moody's said in a report.
"Dubai and Sharjah's revenues are more vulnerable to slowing macroeconomic conditions, as their revenue bases are reliant on government fees, fines and to a lesser extent, tax revenues," said Thaddeus Best, a Moody's Analyst and the report's author.
"For Dubai in particular, lower growth and counter-cyclical fiscal policy are aggravating already elevated debt levels, despite the generally more cautious fiscal stance adopted by the authorities since the 2009 debt crisis," he added.
By contrast, Abu Dhabi is more insulated as its non-oil revenues are relatively small compared to hydrocarbons and investment income from the Abu Dhabi Investment Authority (ADIA), which comprise the vast majority of government revenues.
The slowdown in the non-oil sector is likely to affect Dubai and Sharjah more than the UAE capital Abu Dhabi whose reliance on the sector is non-significant, Global ratings agency Moody's said in a report.
"Dubai and Sharjah's revenues are more vulnerable to slowing macroeconomic conditions, as their revenue bases are reliant on government fees, fines and to a lesser extent, tax revenues," said Thaddeus Best, a Moody's Analyst and the report's author.
"For Dubai in particular, lower growth and counter-cyclical fiscal policy are aggravating already elevated debt levels, despite the generally more cautious fiscal stance adopted by the authorities since the 2009 debt crisis," he added.
By contrast, Abu Dhabi is more insulated as its non-oil revenues are relatively small compared to hydrocarbons and investment income from the Abu Dhabi Investment Authority (ADIA), which comprise the vast majority of government revenues.
Emirates NBD has cut over 400 jobs since October - sources - Reuters
Emirates NBD has cut over 400 jobs since October - sources - Reuters:
Dubai’s largest bank, Emirates NBD , has cut between 400 and 500 jobs since October, sources familiar with the matter said, as banks in the United Arab Emirates (UAE) reduce costs amid slower economic growth.
The cuts have been across several areas of the bank, which employs 12,000 people in the UAE, and the process has ended, said one of the sources.
A second source said the retail and technology operations were the most affected.
Dubai’s largest bank, Emirates NBD , has cut between 400 and 500 jobs since October, sources familiar with the matter said, as banks in the United Arab Emirates (UAE) reduce costs amid slower economic growth.
The cuts have been across several areas of the bank, which employs 12,000 people in the UAE, and the process has ended, said one of the sources.
A second source said the retail and technology operations were the most affected.
Qatari foreign minister's #Saudi visit seen easing Gulf rift - Reuters
Qatari foreign minister's Saudi visit seen easing Gulf rift - Reuters:
Qatar’s foreign minister has made an unannounced visit to Riyadh, two sources told Reuters, amid signs that a 2-1/2-year rift among U.S.-allied Gulf Arab states could soon subside.
Sheikh Mohammed bin Abdulrahman al-Thani met with senior Saudi officials last month, said one of the sources familiar with the trip, the highest-level visit since May when Qatar’s prime minister attended an Arab summit in Mecca.
It was unclear if the visit, first reported by the Wall Street Journal, included a face-to-face with de facto Saudi ruler Crown Prince Mohammed bin Salman.
U.S. Senator Chris Murphy said the minister’s trip was “an important move that showed openness to some dialogue between the two sides”.
Qatar’s foreign minister has made an unannounced visit to Riyadh, two sources told Reuters, amid signs that a 2-1/2-year rift among U.S.-allied Gulf Arab states could soon subside.
Sheikh Mohammed bin Abdulrahman al-Thani met with senior Saudi officials last month, said one of the sources familiar with the trip, the highest-level visit since May when Qatar’s prime minister attended an Arab summit in Mecca.
It was unclear if the visit, first reported by the Wall Street Journal, included a face-to-face with de facto Saudi ruler Crown Prince Mohammed bin Salman.
U.S. Senator Chris Murphy said the minister’s trip was “an important move that showed openness to some dialogue between the two sides”.
Russia signals no change to its oil quotas at next week's OPEC+ meeting - Reuters
Russia signals no change to its oil quotas at next week's OPEC+ meeting - Reuters:
Russian oil companies proposed on Thursday not to change their output quotas as part of a global deal until the end of March, when the current agreement expires, putting pressure on OPEC+ to avoid any major shift in policy when the group meets next week.
They also offered to exclude production of gas condensate, a light oil, from the output quotas as Russia has been struggling to meet its supply-reduction targets in recent months.
The proposals to preserve the deal between the Organization of the Petroleum Exporting Countries and non-OPEC nations until the end of March were made at a gathering with Energy Minister Alexander Novak, who will attend next week’s meetings in Vienna.
Russian oil companies proposed on Thursday not to change their output quotas as part of a global deal until the end of March, when the current agreement expires, putting pressure on OPEC+ to avoid any major shift in policy when the group meets next week.
They also offered to exclude production of gas condensate, a light oil, from the output quotas as Russia has been struggling to meet its supply-reduction targets in recent months.
The proposals to preserve the deal between the Organization of the Petroleum Exporting Countries and non-OPEC nations until the end of March were made at a gathering with Energy Minister Alexander Novak, who will attend next week’s meetings in Vienna.
MIDEAST STOCKS-Emirates NBD drags #Dubai; Egypt snaps losing streak - Reuters
MIDEAST STOCKS-Emirates NBD drags Dubai; Egypt snaps losing streak - Reuters:
Most major Gulf markets ended lower on
Thursday, mirroring losses in global stocks and falling oil
prices, with Dubai particularly hard hit by losses in top lender
Emirates NBD.
On Thursday, a four-day rally that had lifted world stocks
to near-record highs stalled after President Donald Trump signed
into law a bill backing protesters in Hong Kong, fuelling
frictions with China.
China warned of "firm countermeasures".
In Dubai, the index declined 1.2% led by a 2.5%
slide in Emirates NBD. The bank has cut between
400-500 jobs since October, Reuters reported on Thursday, citing
sources familiar with the matter.
Most major Gulf markets ended lower on
Thursday, mirroring losses in global stocks and falling oil
prices, with Dubai particularly hard hit by losses in top lender
Emirates NBD.
On Thursday, a four-day rally that had lifted world stocks
to near-record highs stalled after President Donald Trump signed
into law a bill backing protesters in Hong Kong, fuelling
frictions with China.
China warned of "firm countermeasures".
In Dubai, the index declined 1.2% led by a 2.5%
slide in Emirates NBD. The bank has cut between
400-500 jobs since October, Reuters reported on Thursday, citing
sources familiar with the matter.
#Lebanon urged to restructure debt as crisis deepens | Financial Times
Lebanon urged to restructure debt as crisis deepens | Financial Times:
Protest-stricken Lebanon has vowed to repay $1.5bn to holders of its government debt as planned this week despite a stalled economy and drained dollar reserves, but economists say the time has come to consider letting investors down.
With total borrowing of $88.4bn, Lebanon has one of the world’s biggest debt burdens, projected to be 155 per cent of gross domestic product by the end of 2019. But it has always met payments to creditors — a crucial step in maintaining investors’ trust and ensuring long-term access to international markets.
Now, as the protests over corruption and joblessness enter their second month, some analysts and economists are warning that imports should take precedence over bond obligations, urging the government to delay repayments or devise another way to spread the pain.
Protest-stricken Lebanon has vowed to repay $1.5bn to holders of its government debt as planned this week despite a stalled economy and drained dollar reserves, but economists say the time has come to consider letting investors down.
With total borrowing of $88.4bn, Lebanon has one of the world’s biggest debt burdens, projected to be 155 per cent of gross domestic product by the end of 2019. But it has always met payments to creditors — a crucial step in maintaining investors’ trust and ensuring long-term access to international markets.
Now, as the protests over corruption and joblessness enter their second month, some analysts and economists are warning that imports should take precedence over bond obligations, urging the government to delay repayments or devise another way to spread the pain.
Aramco IPO Retail Offering Fully Covered With One Day to Go - Bloomberg
Aramco IPO Retail Offering Fully Covered With One Day to Go - Bloomberg:
The retail tranche of Saudi Aramco’s initial public offering is fully covered with one day to go after 3.7 million investors applied to buy shares in the world’s biggest oil producer.
The subscription reached 32.6 billion riyals ($8.7 billion), lead manager Samba Capital said in statement. A third of what’s likely to be the world’s largest share sale has been reserved for retail investors, who’ve been targeted by a country-wide advertising campaign and offered larger-than usual loans to finance purchases.
There may be a last-minute surge before today’s final deadline for applications, but so far the share sale hasn’t been as well subscribed as some other IPOs in the counrty. The book for National Commercial Bank’s 2014 Initial public offering was covered 23 times over. In 2006, 10 million Saudis, about half the kingdom’s adult population, applied to buy shares in the local unit of the Middle East’s biggest property develop, Emaar Properties PJSC.
The retail tranche of Saudi Aramco’s initial public offering is fully covered with one day to go after 3.7 million investors applied to buy shares in the world’s biggest oil producer.
The subscription reached 32.6 billion riyals ($8.7 billion), lead manager Samba Capital said in statement. A third of what’s likely to be the world’s largest share sale has been reserved for retail investors, who’ve been targeted by a country-wide advertising campaign and offered larger-than usual loans to finance purchases.
There may be a last-minute surge before today’s final deadline for applications, but so far the share sale hasn’t been as well subscribed as some other IPOs in the counrty. The book for National Commercial Bank’s 2014 Initial public offering was covered 23 times over. In 2006, 10 million Saudis, about half the kingdom’s adult population, applied to buy shares in the local unit of the Middle East’s biggest property develop, Emaar Properties PJSC.
Oil falls as U.S. rights bill fuels tensions with China - Reuters
Oil falls as U.S. rights bill fuels tensions with China - Reuters:
Oil prices fell for a second day on Thursday after official data showed U.S. crude and gasoline stocks rose and President Donald Trump signed into law a bill backing protesters in Hong Kong, fuelling tensions with China.
Brent crude was down 19 cents, or 0.3%, at $63.87 a barrel by 0854 GMT, having dropped 0.3% on Wednesday.
West Texas Intermediate crude fell 33 cents, or 0.6%, to $57.78, after losing 0.5% in the previous session.
China warned the United States that it would take “firm countermeasures” in response to U.S. legislation backing anti-government protesters in Hong Kong.
Oil prices fell for a second day on Thursday after official data showed U.S. crude and gasoline stocks rose and President Donald Trump signed into law a bill backing protesters in Hong Kong, fuelling tensions with China.
Brent crude was down 19 cents, or 0.3%, at $63.87 a barrel by 0854 GMT, having dropped 0.3% on Wednesday.
West Texas Intermediate crude fell 33 cents, or 0.6%, to $57.78, after losing 0.5% in the previous session.
China warned the United States that it would take “firm countermeasures” in response to U.S. legislation backing anti-government protesters in Hong Kong.
Flood of cheap LNG from #Qatar imperils rival North American projects - Reuters
Flood of cheap LNG from Qatar imperils rival North American projects - Reuters:
Proposed projects to export liquefied natural gas (LNG) from North America face an uphill battle against Qatar, which announced plans to further ramp up production to hold onto its position as the world’s leading LNG exporter.
The United States is on track to overtake Qatar and Australia as the top LNG exporter by 2024, but now will only hold that title for a few years as Qatar announced this week it will boost production by 64% by 2027.
Qatar’s plans add another headwind for dozens of long-in-development projects already contending with the difficulty of finding customers due to the U.S.-China trade war and a glut of supply worldwide.
Proposed projects to export liquefied natural gas (LNG) from North America face an uphill battle against Qatar, which announced plans to further ramp up production to hold onto its position as the world’s leading LNG exporter.
The United States is on track to overtake Qatar and Australia as the top LNG exporter by 2024, but now will only hold that title for a few years as Qatar announced this week it will boost production by 64% by 2027.
Qatar’s plans add another headwind for dozens of long-in-development projects already contending with the difficulty of finding customers due to the U.S.-China trade war and a glut of supply worldwide.
#Saudi Aramco Schadenfreude - Arabianbusiness
Saudi Aramco Schadenfreude - Arabianbusiness:
The news and comments made about Aramco’s IPO is wholly negative. The way the IPO was, and is, being characterized is on par with the flop of WeWork’s IPO. There is a similarity in that both companies differed with the investment banks on the pricing of their shares. But there important differences, not least is that Aramco is massively profitable with huge positive cashflow.
Then there is the point that Aramco has negligible financial liabilities. For example, Aramco can fire its CEO without having to pay him $1.5 billion. Or was it $1.4 billion? But what’s a $100 million for the CEO of an American startup these days?
The pricing of Aramco is based on actual positive cash flows, with the differences between seller and advisor on pricing portrayed predominantly on the expected corporate governance of Aramco.
The news and comments made about Aramco’s IPO is wholly negative. The way the IPO was, and is, being characterized is on par with the flop of WeWork’s IPO. There is a similarity in that both companies differed with the investment banks on the pricing of their shares. But there important differences, not least is that Aramco is massively profitable with huge positive cashflow.
Then there is the point that Aramco has negligible financial liabilities. For example, Aramco can fire its CEO without having to pay him $1.5 billion. Or was it $1.4 billion? But what’s a $100 million for the CEO of an American startup these days?
The pricing of Aramco is based on actual positive cash flows, with the differences between seller and advisor on pricing portrayed predominantly on the expected corporate governance of Aramco.
Cost of India refinery project with Aramco, ADNOC estimated at $70 billion - Reuters
Cost of India refinery project with Aramco, ADNOC estimated at $70 billion - Reuters:
The cost of a giant oil and petrochemicals refinery project to be built jointly by Saudi Aramco and Abu Dhabi National Oil Co. (ADNOC) in India is expected to reach $70 billion, WAM news agency reported on Wednesday.
A joint economic council between the United Arab Emirates and Saudi Arabia reviewed the planned plant on Wednesday at a meeting on the sidelines of Saudi Crown Prince’s visit to his Gulf ally.
“The initial cost is estimated at $70 billion,” a statement said.
The cost of a giant oil and petrochemicals refinery project to be built jointly by Saudi Aramco and Abu Dhabi National Oil Co. (ADNOC) in India is expected to reach $70 billion, WAM news agency reported on Wednesday.
A joint economic council between the United Arab Emirates and Saudi Arabia reviewed the planned plant on Wednesday at a meeting on the sidelines of Saudi Crown Prince’s visit to his Gulf ally.
“The initial cost is estimated at $70 billion,” a statement said.
MIDEAST STOCKS- #Saudi edges up on banks; other Gulf bourses little changed - Reuters
MIDEAST STOCKS-Saudi edges up on banks; other Gulf bourses little changed - Reuters:
Saudi Arabian stocks edged up in early trade on Thursday, helped by gains in financial shares, while other major Gulf markets were little changed in thin volumes.
In Saudi Arabia, the benchmark index edged up 0.1% with Al Rajhi Bank gaining 1.2% and Saudi Basic Industries adding 0.3%.
Bupa Arabia gained 1.2% after it won a health insurance contract from National Commercial Bank, which was down 0.4%.
Separately, lead manager Samba Capital on Wednesday said the retail portion of Saudi Aramco’s initial public offering (IPO) has been fully covered, with orders reaching 32.57 billion riyals ($8.69 billion).
Saudi Arabian stocks edged up in early trade on Thursday, helped by gains in financial shares, while other major Gulf markets were little changed in thin volumes.
In Saudi Arabia, the benchmark index edged up 0.1% with Al Rajhi Bank gaining 1.2% and Saudi Basic Industries adding 0.3%.
Bupa Arabia gained 1.2% after it won a health insurance contract from National Commercial Bank, which was down 0.4%.
Separately, lead manager Samba Capital on Wednesday said the retail portion of Saudi Aramco’s initial public offering (IPO) has been fully covered, with orders reaching 32.57 billion riyals ($8.69 billion).