OPEC sees small 2020 oil deficit even before latest supply cut - Reuters:
OPEC on Wednesday pointed to a small deficit in the oil market next year due to restraint by Saudi Arabia even before the latest supply pact with other producers takes effect, suggesting a tighter market than previously thought.
In a monthly report, OPEC said demand for its crude will average 29.58 million barrels per day (bpd) next year. OPEC pumped less oil in November than the average 2020 requirement, having in previous months supplied more.
The report retreats further from OPEC’s initial projection of a 2020 supply glut as output from rival producers such as U.S. shale has grown more slowly than expected. This will give a tailwind to efforts by OPEC and partners led by Russia to support the market next year.
OPEC kept its 2020 economic and oil demand growth forecasts steady and was more upbeat about the outlook.
Wednesday, 11 December 2019
Oil drops on surprise U.S. crude build but tariff deadline eyed - Reuters
Oil drops on surprise U.S. crude build but tariff deadline eyed - Reuters:
Oil prices dropped almost 1% on Wednesday following a surprise build in U.S. crude inventories, and as investors waited to see if a fresh round of tariffs by Washington on Chinese goods would come into force on Sunday.
Brent futures LCOc1 settled at $63.72 per barrel, down 62 cents. West Texas Intermediate crude CLc1 fell 48 cents to settle at $58.76 per barrel.
U.S. crude stockpiles rose unexpectedly last week, while gasoline and distillate inventories jumped sharply higher, the Energy Information Administration said.
Crude inventories rose 822,000 barrels last week, compared with analysts’ expectations in a Reuters poll for a 2.8 million-barrel drop. At 447.9 million barrels, crude stocks were about 4% above the five-year average for this time of year, the EIA said.
Oil prices dropped almost 1% on Wednesday following a surprise build in U.S. crude inventories, and as investors waited to see if a fresh round of tariffs by Washington on Chinese goods would come into force on Sunday.
Brent futures LCOc1 settled at $63.72 per barrel, down 62 cents. West Texas Intermediate crude CLc1 fell 48 cents to settle at $58.76 per barrel.
U.S. crude stockpiles rose unexpectedly last week, while gasoline and distillate inventories jumped sharply higher, the Energy Information Administration said.
Crude inventories rose 822,000 barrels last week, compared with analysts’ expectations in a Reuters poll for a 2.8 million-barrel drop. At 447.9 million barrels, crude stocks were about 4% above the five-year average for this time of year, the EIA said.
#Saudi Aramco will soon be worth $2tn but it looks plainly overvalued | Nils Pratley | Business | The Guardian
Saudi Aramco will soon be worth $2tn but it looks plainly overvalued | Nils Pratley | Business | The Guardian:
Here is a safe prediction: Saudi Aramco will soon formally be worth $2tn (£1.5tn), the valuation reputedly craved by the crown prince, Mohammed bin Salman. It could happen by the end of this week.
One can forecast this event with reasonable confidence for two reasons. First, Aramco’s shares rose by 10%, the maximum permitted, on the first day of trading, so the company’s valuation has already advanced from $1.7tn to nearly $1.9tn. There’s only a short hop to go.
Second, vast financial resources have been assembled with the unofficial aim of getting to the round number. Wealthy Saudi families have been encouraged to buy more shares, the Financial Times reported (paywall). Meanwhile, speculating hedge funds will spy a quick turn from buying and then selling once $1.99tn is seen. Index funds are obliged to play since Aramco will soon be eligible for inclusion in the main emerging market indices. There is momentum to get over the line.
Just don’t make the mistake of thinking $2tn will mean Aramco has wowed the investment world with its reserves, operational skill or even dividend-paying capacity. Quite the reverse. This initial public offering is really only a triumph for the investment bankers’ art of making the best of a bad job.
Here is a safe prediction: Saudi Aramco will soon formally be worth $2tn (£1.5tn), the valuation reputedly craved by the crown prince, Mohammed bin Salman. It could happen by the end of this week.
One can forecast this event with reasonable confidence for two reasons. First, Aramco’s shares rose by 10%, the maximum permitted, on the first day of trading, so the company’s valuation has already advanced from $1.7tn to nearly $1.9tn. There’s only a short hop to go.
Second, vast financial resources have been assembled with the unofficial aim of getting to the round number. Wealthy Saudi families have been encouraged to buy more shares, the Financial Times reported (paywall). Meanwhile, speculating hedge funds will spy a quick turn from buying and then selling once $1.99tn is seen. Index funds are obliged to play since Aramco will soon be eligible for inclusion in the main emerging market indices. There is momentum to get over the line.
Just don’t make the mistake of thinking $2tn will mean Aramco has wowed the investment world with its reserves, operational skill or even dividend-paying capacity. Quite the reverse. This initial public offering is really only a triumph for the investment bankers’ art of making the best of a bad job.
US hits #Iran’s biggest airline and shipping group with sanctions | Financial Times
US hits #Iran’s biggest airline and shipping group with sanctions | Financial Times:
The US has imposed sanctions on Iran’s biggest shipping company and largest airline for allegedly helping Tehran develop ballistic missiles in contravention of UN sanctions.
Mike Pompeo, secretary of state, on Wednesday announced the sanctions on the Islamic Republic of Iran Shipping Lines (IRISL) and its China-based subsidiary, E-Sail Shipping, as well as Mahan Air. The move is meant to “put the world on notice those who engage in illicit transactions with these companies will risk exposure to sanctions for themselves”, Mr Pompeo said.
The sanctions on the entities, which are already subject to other US punitive actions, are being imposed under an executive order aimed at stopping the development and proliferation of weapons of mass destruction (WMD). US officials hope the measures will increase pressure on other countries to sever dealings with Iran.
The US has imposed sanctions on Iran’s biggest shipping company and largest airline for allegedly helping Tehran develop ballistic missiles in contravention of UN sanctions.
Mike Pompeo, secretary of state, on Wednesday announced the sanctions on the Islamic Republic of Iran Shipping Lines (IRISL) and its China-based subsidiary, E-Sail Shipping, as well as Mahan Air. The move is meant to “put the world on notice those who engage in illicit transactions with these companies will risk exposure to sanctions for themselves”, Mr Pompeo said.
The sanctions on the entities, which are already subject to other US punitive actions, are being imposed under an executive order aimed at stopping the development and proliferation of weapons of mass destruction (WMD). US officials hope the measures will increase pressure on other countries to sever dealings with Iran.
#Saudi's planned spending cut will help achieve balanced budget target: Moody's | ZAWYA MENA Edition
Saudi's planned spending cut will help achieve balanced budget target: Moody's | ZAWYA MENA Edition:
Moody’s Investors Service said that Saudi Arabia’s planned expenditure cuts will support the kingdom’s achievement of its challenging balanced budget objective by 2023.
Saudi had already announced plans to secure a balanced budget by 2023 by closing budget deficit.
The kingdom on Monday released its 2020 budget, indicating expected total expenditure of 1.02 trillion Saudi riyals ($272 billion) compared to a forecast for actual expenditure of 1.048 trillion riyals in 2019.
The budget deficit for 2020 is expected to be at 187 billion riyals (6.4 percent of GDP), while the expected deficit is forecast to reach 131 billion riyals in 2019 (4.7 percent of the estimated 2019 GDP).
Moody’s Investors Service said that Saudi Arabia’s planned expenditure cuts will support the kingdom’s achievement of its challenging balanced budget objective by 2023.
Saudi had already announced plans to secure a balanced budget by 2023 by closing budget deficit.
The kingdom on Monday released its 2020 budget, indicating expected total expenditure of 1.02 trillion Saudi riyals ($272 billion) compared to a forecast for actual expenditure of 1.048 trillion riyals in 2019.
The budget deficit for 2020 is expected to be at 187 billion riyals (6.4 percent of GDP), while the expected deficit is forecast to reach 131 billion riyals in 2019 (4.7 percent of the estimated 2019 GDP).
Wait six months for #Saudi Aramco’s true value – Breakingviews
Wait six months for Saudi Aramco’s true value – Breakingviews:
Saudi Aramco is having a good debut as a public company. The Saudi oil giant’s share price jumped 10% to 35.2 riyals ($9.4) on Wednesday as its stock commenced trading on the domestic bourse. The important metric is less how far the current price rises above Aramco’s $1.7 trillion initial public offering valuation, and more what happens six months hence.
There are many reasons why a company that most international investors shunned at the $1.7 trillion issue price has now headed to $1.9 trillion, almost in line with the $2 trillion valuation coveted by Crown Prince Mohammed bin Salman. Saudi only listed 1.5% of the company – half of initial expectations – and while the 4.65 times oversubscription seen in Aramco’s IPO may have been more about bidders ensuring their desired allotment than genuine demand, enough of it will have been real. In opening trading, 25.6 million shares were traded, against 200.5 million of buyer demand.
Local demand is playing a big role. Retail investors, who bought a third of the float, have been incentivised to hold for six months by the promise of bonus shares. Domestic investment funds and wealthy families may also have been encouraged by Riyadh to support the float, the Financial Times reported on Tuesday.
Saudi Aramco is having a good debut as a public company. The Saudi oil giant’s share price jumped 10% to 35.2 riyals ($9.4) on Wednesday as its stock commenced trading on the domestic bourse. The important metric is less how far the current price rises above Aramco’s $1.7 trillion initial public offering valuation, and more what happens six months hence.
There are many reasons why a company that most international investors shunned at the $1.7 trillion issue price has now headed to $1.9 trillion, almost in line with the $2 trillion valuation coveted by Crown Prince Mohammed bin Salman. Saudi only listed 1.5% of the company – half of initial expectations – and while the 4.65 times oversubscription seen in Aramco’s IPO may have been more about bidders ensuring their desired allotment than genuine demand, enough of it will have been real. In opening trading, 25.6 million shares were traded, against 200.5 million of buyer demand.
Local demand is playing a big role. Retail investors, who bought a third of the float, have been incentivised to hold for six months by the promise of bonus shares. Domestic investment funds and wealthy families may also have been encouraged by Riyadh to support the float, the Financial Times reported on Tuesday.
#UAE's flagship Khalifa Port to get $1bn upgrade - Arabianbusiness
UAE's flagship Khalifa Port to get $1bn upgrade - Arabianbusiness:
Abu Dhabi Ports has announced plans for a AED3.8 billion ($1 billion) expansion of its flagship Khalifa Port.
Khalifa Port, situated halfway between Abu Dhabi and Dubai, was officially inaugurated on December 12, 2012, by UAE President Sheikh Khalifa bin Zayed Al Nahyan, state news agency WAM reported on Wednesday.
Seven years later, an investment of AED2.2 billion will be made in the development of South Quay and Khalifa Port Logistics, as well as a AED1.6 billion expansion at Abu Dhabi Terminals.
The South Quay development, which will be completed by the first quarter of 2021 comprises a 3km quay-wall with 18.5 metres alongside draft for general cargo, ro-ro and bulk usage. It will also include eight berths and 1.3 million square metres of the terminal yard.
Abu Dhabi Ports has announced plans for a AED3.8 billion ($1 billion) expansion of its flagship Khalifa Port.
Khalifa Port, situated halfway between Abu Dhabi and Dubai, was officially inaugurated on December 12, 2012, by UAE President Sheikh Khalifa bin Zayed Al Nahyan, state news agency WAM reported on Wednesday.
Seven years later, an investment of AED2.2 billion will be made in the development of South Quay and Khalifa Port Logistics, as well as a AED1.6 billion expansion at Abu Dhabi Terminals.
The South Quay development, which will be completed by the first quarter of 2021 comprises a 3km quay-wall with 18.5 metres alongside draft for general cargo, ro-ro and bulk usage. It will also include eight berths and 1.3 million square metres of the terminal yard.
#AbuDhabi Catalyst Partners announces first investments worth $225m - Arabianbusiness
Abu Dhabi Catalyst Partners announces first investments worth $225m - Arabianbusiness:
Abu Dhabi Catalyst Partners on Wednesday announced its initial three investments as it seeks to provide firms with an operational base in the UAE capital.
All three investments involve meaningful commitments to a physical presence in the UAE’s capital and under the jurisdiction of Abu Dhabi Global Market (ADGM), the company said in a statement.
The investments - announced in conjunction with the SALT Abu Dhabi conference - include a partnership with Avenue Capital Group, the New York-based global investment firm managing assets of more than $10 billion across markets in the United States, Europe and Asia.
Abu Dhabi Catalyst Partners said it has committed $100 million to a new global private credit strategy that will be run by Avenue Capital Group from ADGM.
Abu Dhabi Catalyst Partners on Wednesday announced its initial three investments as it seeks to provide firms with an operational base in the UAE capital.
All three investments involve meaningful commitments to a physical presence in the UAE’s capital and under the jurisdiction of Abu Dhabi Global Market (ADGM), the company said in a statement.
The investments - announced in conjunction with the SALT Abu Dhabi conference - include a partnership with Avenue Capital Group, the New York-based global investment firm managing assets of more than $10 billion across markets in the United States, Europe and Asia.
Abu Dhabi Catalyst Partners said it has committed $100 million to a new global private credit strategy that will be run by Avenue Capital Group from ADGM.
UPDATE 2- #Qatar wealth fund to invest $450 mln in Adani power distribution arm - Reuters
UPDATE 2-Qatar wealth fund to invest $450 mln in Adani power distribution arm - Reuters:
Qatar’s sovereign wealth fund will invest about $450 million in a power distribution company controlled by Indian billionaire Gautam Adani, the latest in a series of foreign investments in India’s energy sector.
The Qatar Investment Authority (QIA) will buy a 25.1% stake in Adani Electricity Mumbai Ltd (AEML) in a deal that will also include subordinated loans, the two sides said on Wednesday.
This is the second big investment in an Adani Group company after France’s Total SA decided to buy a stake in gas distribution company Adani Gas in October.
AEML is India’s largest private sector power distribution utility, according to its website, serving more than 3 million consumers in India’s financial capital of Mumbai and supplying more than half of the city’s electricity.
Qatar’s sovereign wealth fund will invest about $450 million in a power distribution company controlled by Indian billionaire Gautam Adani, the latest in a series of foreign investments in India’s energy sector.
The Qatar Investment Authority (QIA) will buy a 25.1% stake in Adani Electricity Mumbai Ltd (AEML) in a deal that will also include subordinated loans, the two sides said on Wednesday.
This is the second big investment in an Adani Group company after France’s Total SA decided to buy a stake in gas distribution company Adani Gas in October.
AEML is India’s largest private sector power distribution utility, according to its website, serving more than 3 million consumers in India’s financial capital of Mumbai and supplying more than half of the city’s electricity.
'Vindication' - #SaudiArabia hails 10% debut jump in Aramco shares - Reuters
'Vindication' - Saudi Arabia hails 10% debut jump in Aramco shares - Reuters:
Saudi Aramco (2222.SE) shares surged the maximum permitted 10% above their IPO price on their Riyadh stock market debut on Wednesday, in a move hailed by the government as a vindication of its towering $2 trillion valuation of the state oil company.
The shares closed at 35.2 riyals ($9.39) each, up from the initial public offering (IPO) price of 32 riyals and at the daily limit of price moves allowed by the Tadawul exchange.
That gives Saudi Arabian Oil Co (Aramco) a market value of about $1.88 trillion, comfortably making it the world’s most valuable listed company and closing in on the $2 trillion price tag long coveted by Saudi Crown Prince Mohammed bin Salman.
Saudi Aramco (2222.SE) shares surged the maximum permitted 10% above their IPO price on their Riyadh stock market debut on Wednesday, in a move hailed by the government as a vindication of its towering $2 trillion valuation of the state oil company.
The shares closed at 35.2 riyals ($9.39) each, up from the initial public offering (IPO) price of 32 riyals and at the daily limit of price moves allowed by the Tadawul exchange.
That gives Saudi Arabian Oil Co (Aramco) a market value of about $1.88 trillion, comfortably making it the world’s most valuable listed company and closing in on the $2 trillion price tag long coveted by Saudi Crown Prince Mohammed bin Salman.
Oil Prices Fall On Bearish EIA Data | OilPrice.com
Oil Prices Fall On Bearish EIA Data | OilPrice.com:
Crude oil prices moved lower today after the Energy Information Administration reported a crude oil inventory build of 800,000 barrels for the first week of December. Besides it, the EIA also reported hefty builds in gasoline and distillate fuel inventories.
The crude oil increase compared with a 4.9-million-barrel inventory draw estimated for the last week of November—the first draw in five weeks. Analysts had been optimistic for the week, expecting a draw of over 3 million barrels but API’s Tuesday report dampened the optimism somewhat, by reporting an unexpected build of more than 1.4 million barrels for the first week of December.
Prices were already depressed even before the API report, however. Once again trade war worries and pessimism about global economic growth came to outweigh the reaction to the OPEC+ decision to deepen cuts. The short life of this reaction was also due to the fact that the agreed cuts only sound deep on paper but it remains to be seen how much they will contribute to the actual slim-down of global supplies.
Crude oil prices moved lower today after the Energy Information Administration reported a crude oil inventory build of 800,000 barrels for the first week of December. Besides it, the EIA also reported hefty builds in gasoline and distillate fuel inventories.
The crude oil increase compared with a 4.9-million-barrel inventory draw estimated for the last week of November—the first draw in five weeks. Analysts had been optimistic for the week, expecting a draw of over 3 million barrels but API’s Tuesday report dampened the optimism somewhat, by reporting an unexpected build of more than 1.4 million barrels for the first week of December.
Prices were already depressed even before the API report, however. Once again trade war worries and pessimism about global economic growth came to outweigh the reaction to the OPEC+ decision to deepen cuts. The short life of this reaction was also due to the fact that the agreed cuts only sound deep on paper but it remains to be seen how much they will contribute to the actual slim-down of global supplies.
MIDEAST STOCKS-Aramco's stellar debut cheers #Saudi shares; most Gulf indexes gain - Reuters
MIDEAST STOCKS-Aramco's stellar debut cheers Saudi shares; most Gulf indexes gain - Reuters:
The Saudi Arabian stock market ended
higher on Wednesday as shares of state-owned oil giant Aramco
surged the maximum permitted 10% on their debut, while
other major Gulf markets also rose.
Shares of Saudi Arabian Oil Co (Aramco) soared to 35.2
riyals ($9.39), up from the initial public offering (IPO) price
of 32 riyals. The increase helped the company close in on the $2
trillion valuation long sought by Saudi Crown Prince Mohammed
bin Salman.
If Aramco shares gain 10% on Thursday as well, it will
exceed the $2 trillion valuation coveted by Prince Mohammed. The
company is expected to be included in the MSCI emerging markets
index on Dec. 17.
Aramco raised $25.6 billion on Dec. 5 through the IPO. It
plans to exercise the 15% greenshoe option in whole or part
during the first 30 days of its trading period. If the option is
exercised in full, the oil giant could raise $29.4 billion in
IPO.
The Saudi Arabian stock market ended
higher on Wednesday as shares of state-owned oil giant Aramco
surged the maximum permitted 10% on their debut, while
other major Gulf markets also rose.
Shares of Saudi Arabian Oil Co (Aramco) soared to 35.2
riyals ($9.39), up from the initial public offering (IPO) price
of 32 riyals. The increase helped the company close in on the $2
trillion valuation long sought by Saudi Crown Prince Mohammed
bin Salman.
If Aramco shares gain 10% on Thursday as well, it will
exceed the $2 trillion valuation coveted by Prince Mohammed. The
company is expected to be included in the MSCI emerging markets
index on Dec. 17.
Aramco raised $25.6 billion on Dec. 5 through the IPO. It
plans to exercise the 15% greenshoe option in whole or part
during the first 30 days of its trading period. If the option is
exercised in full, the oil giant could raise $29.4 billion in
IPO.
How Lebanese Default Would Play Out: An Investor Conundrum - Bloomberg
How Lebanese Default Would Play Out: An Investor Conundrum - Bloomberg:
For many bond investors it’s a matter of when, not if, Lebanon restructures its $87 billion of debt as it reels under a deepening financial crisis. Working out what the trigger would be or the extent of the fallout is another matter entirely.
After repaying $1.5 billion Eurobonds that matured last month, the focus is turning to whether authorities will honor a $1.2 billion commitment on March 9. Several influential local economists and even some officials say the country should use its dwindling reserves to pay for imports instead of creditors.
Complicating the debate is the Arab nation’s political paralysis since mass protests against corruption forced the prime minister to resign in late October. The country’s debt risk, measured by five year credit-default swaps, climbed above 2,500 basis points last week and is the highest globally after Argentina, according to data compiled by Bloomberg.
For many bond investors it’s a matter of when, not if, Lebanon restructures its $87 billion of debt as it reels under a deepening financial crisis. Working out what the trigger would be or the extent of the fallout is another matter entirely.
After repaying $1.5 billion Eurobonds that matured last month, the focus is turning to whether authorities will honor a $1.2 billion commitment on March 9. Several influential local economists and even some officials say the country should use its dwindling reserves to pay for imports instead of creditors.
Complicating the debate is the Arab nation’s political paralysis since mass protests against corruption forced the prime minister to resign in late October. The country’s debt risk, measured by five year credit-default swaps, climbed above 2,500 basis points last week and is the highest globally after Argentina, according to data compiled by Bloomberg.
Aramco IPO: The Wall Street Bankers Who Burst $2 Trillion Bubble - Bloomberg
Aramco IPO: The Wall Street Bankers Who Burst $2 Trillion Bubble - Bloomberg:
The chairman of the world’s biggest oil company was about to lose his temper.
At a meeting in Riyadh on a sultry October evening, Achintya Mangla, one of JPMorgan Chase & Co.’s most senior bankers, had told Yasir Al-Rumayyan there was no way international investors were going to value Saudi Aramco -- just weeks away from an initial public offering -- at $2 trillion.
Al-Rumayyan, who’d risen in just a few years from head of a mid-sized investment bank in Riyadh to one of the most powerful jobs in the global economy, erupted. He unleashed a torrent of expletives in Arabic and English that shocked the roomful of battle-hardened bankers. The chairman was probably worried about telling his boss, the crown prince who locked up many of the nation’s wealthiest people in a five-star hotel just two years ago.
In the three and a half years since Saudi Arabia’s Mohammed bin Salman first proposed an initial public offering of Aramco, the state oil company that pumps 10% of the world’s oil, the $2 trillion valuation had caused trouble.
The chairman of the world’s biggest oil company was about to lose his temper.
At a meeting in Riyadh on a sultry October evening, Achintya Mangla, one of JPMorgan Chase & Co.’s most senior bankers, had told Yasir Al-Rumayyan there was no way international investors were going to value Saudi Aramco -- just weeks away from an initial public offering -- at $2 trillion.
Al-Rumayyan, who’d risen in just a few years from head of a mid-sized investment bank in Riyadh to one of the most powerful jobs in the global economy, erupted. He unleashed a torrent of expletives in Arabic and English that shocked the roomful of battle-hardened bankers. The chairman was probably worried about telling his boss, the crown prince who locked up many of the nation’s wealthiest people in a five-star hotel just two years ago.
In the three and a half years since Saudi Arabia’s Mohammed bin Salman first proposed an initial public offering of Aramco, the state oil company that pumps 10% of the world’s oil, the $2 trillion valuation had caused trouble.
Wanted: bold activist to take on Masayoshi Son – Breakingviews
Wanted: bold activist to take on Masayoshi Son – Breakingviews:
Masayoshi Son’s SoftBank Group is worth significantly less than the sum of its parts. For an activist investor with plenty of cash and the stomach for a fight, it could be the trade of a lifetime.
Son’s $82 billion tech-to-telecom conglomerate ticks the boxes for pushy shareholders like Dan Loeb’s Third Point Management or Paul Singer’s Elliott Management. There’s poor governance: Son is both chief executive and chairman and makes investments in cash-burning companies like WeWork partly based on his ability to “feel the force”. Performance is weak too. SoftBank shares have returned minus 15% over the past six months, including dividends.
The result is that Son’s company trades at a huge discount to its theoretical asset value. It owns Alibaba shares worth $136 billion. Chipmaker Arm’s value is probably $22 billion, using the price before Son bought it in 2016. Listed stakes in SoftBank’s eponymous Japanese telecom unit and U.S. operator Sprint are worth $19 billion and $43 billion, respectively. Finally, SoftBank touts $36 billion of mostly private holdings, including its share in the Saudi-backed Vision Fund. Add everything up, deduct debt, and SoftBank’s equity should be worth$215 billion – 161% more than its current market value.
Masayoshi Son’s SoftBank Group is worth significantly less than the sum of its parts. For an activist investor with plenty of cash and the stomach for a fight, it could be the trade of a lifetime.
Son’s $82 billion tech-to-telecom conglomerate ticks the boxes for pushy shareholders like Dan Loeb’s Third Point Management or Paul Singer’s Elliott Management. There’s poor governance: Son is both chief executive and chairman and makes investments in cash-burning companies like WeWork partly based on his ability to “feel the force”. Performance is weak too. SoftBank shares have returned minus 15% over the past six months, including dividends.
The result is that Son’s company trades at a huge discount to its theoretical asset value. It owns Alibaba shares worth $136 billion. Chipmaker Arm’s value is probably $22 billion, using the price before Son bought it in 2016. Listed stakes in SoftBank’s eponymous Japanese telecom unit and U.S. operator Sprint are worth $19 billion and $43 billion, respectively. Finally, SoftBank touts $36 billion of mostly private holdings, including its share in the Saudi-backed Vision Fund. Add everything up, deduct debt, and SoftBank’s equity should be worth$215 billion – 161% more than its current market value.
#Dubai property sales climb to 11-year high in November | ZAWYA MENA Edition
Dubai property sales climb to 11-year high in November | ZAWYA MENA Edition:
An increasing number of investors are seizing the opportunity to own a home in Dubai now as the government has stepped in to ensure there is a balance between supply and demand in the real estate market, a new report has revealed.
Property sales recorded with the Dubai Land Department (DLD) went up to 5,051 in November 2019, hitting an 11-year high and rising by 5.8 percent from October 2019, according to Data Finder, the real estate insights and data platform under the Property Finder Group. Overall, Dubai clocked in 13,832 transactions in just three months.
According to Property Finder’s analysis, the government’s announcement in September that it would form a special committee to ensure semi-government real estate firms don’t compete with the private sector has inspired confidence in investors.
Besides, with Expo 2020, only about 10 months away and house prices still on a decline, it looks like more people are excited by the idea of snapping up a property in Dubai.
An increasing number of investors are seizing the opportunity to own a home in Dubai now as the government has stepped in to ensure there is a balance between supply and demand in the real estate market, a new report has revealed.
Property sales recorded with the Dubai Land Department (DLD) went up to 5,051 in November 2019, hitting an 11-year high and rising by 5.8 percent from October 2019, according to Data Finder, the real estate insights and data platform under the Property Finder Group. Overall, Dubai clocked in 13,832 transactions in just three months.
According to Property Finder’s analysis, the government’s announcement in September that it would form a special committee to ensure semi-government real estate firms don’t compete with the private sector has inspired confidence in investors.
Besides, with Expo 2020, only about 10 months away and house prices still on a decline, it looks like more people are excited by the idea of snapping up a property in Dubai.
UPDATE 2- #SaudiArabia ready to issue new international bonds as soon as January - Reuters
UPDATE 2-Saudi Arabia ready to issue new international bonds as soon as January - Reuters:
Saudi Arabia might issue new international bonds as soon as January, as part of plans to raise $32 billion worth of debt next year, a senior finance ministry official told Reuters.
The kingdom has been borrowing extensively over the past few years, locally and internationally, to tap new revenue channels in an era of lower oil prices.
“We are very much ready, as early as the first of January, to issue our international bonds subject to market conditions of demand and supply,” Fahad al-Saif, who heads the kingdom’s debt management office (DMO), said in an interview.
Of the total debt plans, almost $12 billion will be to refinance existing local debt, and will be done locally, Saif said.
Saudi Arabia might issue new international bonds as soon as January, as part of plans to raise $32 billion worth of debt next year, a senior finance ministry official told Reuters.
The kingdom has been borrowing extensively over the past few years, locally and internationally, to tap new revenue channels in an era of lower oil prices.
“We are very much ready, as early as the first of January, to issue our international bonds subject to market conditions of demand and supply,” Fahad al-Saif, who heads the kingdom’s debt management office (DMO), said in an interview.
Of the total debt plans, almost $12 billion will be to refinance existing local debt, and will be done locally, Saif said.
Oil Falls From 12-Week High as Report Shows U.S. Stockpile Build - Bloomberg
Oil Falls From 12-Week High as Report Shows U.S. Stockpile Build - Bloomberg:
Oil retreated from its highest close in almost three months after an industry report showed American crude inventories expanded last week, adding to signs that supplies will remain abundant next year.
Futures in New York dropped as much as 0.7% after settling above $59 a barrel on Tuesday. The American Petroleum Institute reported that U.S. stockpiles increased by 1.41 million barrels, according to people familiar with the data. Chinese officials expect the U.S. to delay a tariff increase scheduled for Sunday, giving more time to negotiate an interim trade deal, people with knowledge of the discussions said.
Crude has been hovering around the highest levels since mid-September after the Organization of Petroleum Exporting Countries and its allies surprised the market on Friday by announcing deeper-than-forecast production cuts for next year. There’s also optimism that a limited trade deal may materialize, though there remains a lot of uncertainty. White House Trade Adviser Peter Navarro told Fox Business Network that there’s no indication President Donald Trump has made a decision either on a deal or on the tariff hike.
Oil retreated from its highest close in almost three months after an industry report showed American crude inventories expanded last week, adding to signs that supplies will remain abundant next year.
Futures in New York dropped as much as 0.7% after settling above $59 a barrel on Tuesday. The American Petroleum Institute reported that U.S. stockpiles increased by 1.41 million barrels, according to people familiar with the data. Chinese officials expect the U.S. to delay a tariff increase scheduled for Sunday, giving more time to negotiate an interim trade deal, people with knowledge of the discussions said.
Crude has been hovering around the highest levels since mid-September after the Organization of Petroleum Exporting Countries and its allies surprised the market on Friday by announcing deeper-than-forecast production cuts for next year. There’s also optimism that a limited trade deal may materialize, though there remains a lot of uncertainty. White House Trade Adviser Peter Navarro told Fox Business Network that there’s no indication President Donald Trump has made a decision either on a deal or on the tariff hike.
#Dubai Bankers Club Seeks Turnaround After Membership Dwindles - Bloomberg
Dubai Bankers Club Seeks Turnaround After Membership Dwindles - Bloomberg:
Dubai financial district’s members-only business club is seeking money to turnaround the exclusive meeting spot once-favored by the city’s top dealmakers.
Capital Club Dubai is working with the investment banking arm of Emirates NBD PJSC to raise about 30 million dirhams ($8.2 million) as part of plans that include bringing in a new management team and restructuring debt.
“The funds will be utilized to pay off existing debts, improve and refurbish the club,” according to a statement from Capital Club Dubai. “Every effort shall be made to manage it successfully and profitably, increase revenue and reduce costs.”
Once one of the city’s most exclusive places to do business, the venue isn’t being spared the economic slump that’s weighing on the emirate. Membership -- which costs about $5,500 a year to access meeting rooms, a gym, a fine dining restaurant and a sports bar in the heart of the financial district -- has dropped to about 1,000 from a peak of roughly 1,500 members.
Dubai financial district’s members-only business club is seeking money to turnaround the exclusive meeting spot once-favored by the city’s top dealmakers.
Capital Club Dubai is working with the investment banking arm of Emirates NBD PJSC to raise about 30 million dirhams ($8.2 million) as part of plans that include bringing in a new management team and restructuring debt.
“The funds will be utilized to pay off existing debts, improve and refurbish the club,” according to a statement from Capital Club Dubai. “Every effort shall be made to manage it successfully and profitably, increase revenue and reduce costs.”
Once one of the city’s most exclusive places to do business, the venue isn’t being spared the economic slump that’s weighing on the emirate. Membership -- which costs about $5,500 a year to access meeting rooms, a gym, a fine dining restaurant and a sports bar in the heart of the financial district -- has dropped to about 1,000 from a peak of roughly 1,500 members.
Mubadala Capital Seeks to Double Third-Party Funds to $6 Billion - Bloomberg
Mubadala Capital Seeks to Double Third-Party Funds to $6 Billion - Bloomberg:
Mubadala Capital, the investment arm of the Abu Dhabi sovereign wealth fund, is seeking to double the assets it manages for third-party investors.
“One of the things you don’t often hear in the same sentence is sovereign wealth funds managing third-party capital,” Mubadala Investment Co.’s deputy Chief Executive Officer Waleed Al Muhairi said at a conference in the U.A.E. capital. “We are raising our third fund as Mubadala Capital. We have 17 LPs, all of them are institutions.”
The unit, which currently manages $25 billion of its own and external capital, plans to boost that amount to $40 billion “over the medium-term horizon,” Al Muhairi said. Of that, 15% -- or about $6 billion -- is expected to come from other institutional investors, almost doubling the $3.4 billion of third-party capital it currently manages.
Mubadala Investment is part of Abu Dhabi’s efforts to diversify its economy by turning oil revenue into profitable investments while also attracting expertise and jobs. The firm merged with International Petroleum Investment Co. in 2017 and absorbed Abu Dhabi Investment Council last year.
Mubadala Capital, the investment arm of the Abu Dhabi sovereign wealth fund, is seeking to double the assets it manages for third-party investors.
“One of the things you don’t often hear in the same sentence is sovereign wealth funds managing third-party capital,” Mubadala Investment Co.’s deputy Chief Executive Officer Waleed Al Muhairi said at a conference in the U.A.E. capital. “We are raising our third fund as Mubadala Capital. We have 17 LPs, all of them are institutions.”
The unit, which currently manages $25 billion of its own and external capital, plans to boost that amount to $40 billion “over the medium-term horizon,” Al Muhairi said. Of that, 15% -- or about $6 billion -- is expected to come from other institutional investors, almost doubling the $3.4 billion of third-party capital it currently manages.
Mubadala Investment is part of Abu Dhabi’s efforts to diversify its economy by turning oil revenue into profitable investments while also attracting expertise and jobs. The firm merged with International Petroleum Investment Co. in 2017 and absorbed Abu Dhabi Investment Council last year.
Kuwaiti-owned $3.6bn London theme park outlines new plans ahead of 2024 opening - Arabianbusiness
Kuwaiti-owned $3.6bn London theme park outlines new plans ahead of 2024 opening - Arabianbusiness:
The developer behind plans for a $3.6 billion Kuwaiti-owned theme park due to open near London in 2024 has revealed new concept artwork for the attraction.
The London Resort, which was launched in October 2012 by the London Resort Company Holdings (LRCH) and is being backed by the Kuwaiti European Holding (KEH) Group, is located on a 535-acre site on Kent’s Swanscombe peninsula, just 17 minutes on the train from Central London.
The park has signed partnership deals with the BBC, ITV Studios and Hollywood studio Paramount Pictures for themed rides and attractions.
Four visuals have been released showing the latest plans for the park.
The developer behind plans for a $3.6 billion Kuwaiti-owned theme park due to open near London in 2024 has revealed new concept artwork for the attraction.
The London Resort, which was launched in October 2012 by the London Resort Company Holdings (LRCH) and is being backed by the Kuwaiti European Holding (KEH) Group, is located on a 535-acre site on Kent’s Swanscombe peninsula, just 17 minutes on the train from Central London.
The park has signed partnership deals with the BBC, ITV Studios and Hollywood studio Paramount Pictures for themed rides and attractions.
Four visuals have been released showing the latest plans for the park.
#UAE casts doubt on ending two-and-a-half-year rift with #Qatar - Arabianbusiness
UAE casts doubt on ending two-and-a-half-year rift with Qatar - Arabianbusiness:
The crisis with Qatar “continues,” a top United Arab Emirates official said after high-level Qatari participation at a Riyadh summit led to speculation that the regional rift could come to an end.
“I am convinced that every crisis has an end, and sincere and sustainable solutions are in the interest of the region,” UAE Minister of State for Foreign Affairs Anwar Gargash said on Twitter. “The absence of Sheikh Tamim bin Hamad from the Riyadh summit was due to poor judgment.”
Qatar sent its prime minister to an annual gathering of Gulf rulers that is usually attended by the monarchs.
The attendance was nonetheless seen as a step forward in a 30-month spat between Qatar and four Arab nations led by Saudi Arabia.
The crisis with Qatar “continues,” a top United Arab Emirates official said after high-level Qatari participation at a Riyadh summit led to speculation that the regional rift could come to an end.
“I am convinced that every crisis has an end, and sincere and sustainable solutions are in the interest of the region,” UAE Minister of State for Foreign Affairs Anwar Gargash said on Twitter. “The absence of Sheikh Tamim bin Hamad from the Riyadh summit was due to poor judgment.”
Qatar sent its prime minister to an annual gathering of Gulf rulers that is usually attended by the monarchs.
The attendance was nonetheless seen as a step forward in a 30-month spat between Qatar and four Arab nations led by Saudi Arabia.
MIDEAST STOCKS-Aramco's surge on debut lifts #Saudi shares | Nasdaq
MIDEAST STOCKS-Aramco's surge on debut lifts Saudi shares | Nasdaq:
Saudi stock market rose on Wednesday, as the world's largest listed firm Saudi Aramco 2222.SE soared to the maximum limit of 10% on its first day of trading.
Shares of Saudi Arabian Oil Co (Aramco) rose to 35.2 riyals ($9.39) apiece, higher than their initial public offering (IPO) price of 32 riyals. The increase helped the company close in on the $2-trillion valuation long sought by Saudi Crown Prince Mohammed bin Salman.
Aramco raised $25.6 billion on Dec. 5 through the IPO. It plans to exercise the 15% greenshoe option in whole or part during the first 30 days of its trading period. If the option is exercised in full, the oil giant could raise $29.4 billion in IPO.
The Saudi benchmark index .TASI climbed 0.8% in early trading. Other gainers included National Commercial Bank 1180.SE and Al Rajhi Bank 1120.SE, which rose 1.1% and 0.5%, respectively.
Saudi stock market rose on Wednesday, as the world's largest listed firm Saudi Aramco 2222.SE soared to the maximum limit of 10% on its first day of trading.
Shares of Saudi Arabian Oil Co (Aramco) rose to 35.2 riyals ($9.39) apiece, higher than their initial public offering (IPO) price of 32 riyals. The increase helped the company close in on the $2-trillion valuation long sought by Saudi Crown Prince Mohammed bin Salman.
Aramco raised $25.6 billion on Dec. 5 through the IPO. It plans to exercise the 15% greenshoe option in whole or part during the first 30 days of its trading period. If the option is exercised in full, the oil giant could raise $29.4 billion in IPO.
The Saudi benchmark index .TASI climbed 0.8% in early trading. Other gainers included National Commercial Bank 1180.SE and Al Rajhi Bank 1120.SE, which rose 1.1% and 0.5%, respectively.
Boost for #SaudiArabia as Aramco shares surge 10% on debut - Reuters
Boost for Saudi Arabia as Aramco shares surge 10% on debut - Reuters:
Saudi Aramco (2222.SE) shares surged the maximum permitted 10% above their IPO price on their Riyadh stock market debut on Wednesday, closing in on the $2 trillion valuation long sought by Saudi Crown Prince Mohammed bin Salman.
The shares leapt to 35.2 riyal ($9.39) each, up from the initial public offering (IPO) price of 32 riyals and at the daily limit of price moves allowed by the Tadawul exchange.
That gives the state-owned oil giant a market value of about $1.88 trillion, comfortably making it the world’s most valuable listed company, although it will have one of the smallest “free floats” of publicly tradeable shares, at just 1.5%.
The market value is more than six times that of U.S. oil major Exxon Mobil Corp (XOM); more than twice the size of Saudi Arabia’s annual gross domestic product; and far ahead of U.S. tech giant Apple’s (AAPL.O) market value of about $1.2 trillion.
Saudi Aramco (2222.SE) shares surged the maximum permitted 10% above their IPO price on their Riyadh stock market debut on Wednesday, closing in on the $2 trillion valuation long sought by Saudi Crown Prince Mohammed bin Salman.
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| Participants attend the official ceremony marking the debut of Saudi Aramco's initial public offering (IPO) on the Riyadh's stock market, in Riyadh, Saudi Arabia, December 11, 2019. REUTERS/Marwa Rashad |
The shares leapt to 35.2 riyal ($9.39) each, up from the initial public offering (IPO) price of 32 riyals and at the daily limit of price moves allowed by the Tadawul exchange.
That gives the state-owned oil giant a market value of about $1.88 trillion, comfortably making it the world’s most valuable listed company, although it will have one of the smallest “free floats” of publicly tradeable shares, at just 1.5%.
The market value is more than six times that of U.S. oil major Exxon Mobil Corp (XOM); more than twice the size of Saudi Arabia’s annual gross domestic product; and far ahead of U.S. tech giant Apple’s (AAPL.O) market value of about $1.2 trillion.
#Saudi Aramco shares jump 10% in oil group’s trading debut | Financial Times
Saudi Aramco shares jump 10% in oil group’s trading debut | Financial Times:
Saudi Aramco shares rallied 10 per cent on Wednesday as the state oil company began trading on Riyadh’s Tadawul stock exchange, giving the group a market value of nearly $1.9tn.
The company’s stock market debut marks the culmination of a nearly four-year process since Crown Prince Mohammed bin Salman, the heir apparent, first disclosed plans for a listing.
After a series of delays in which the company was forced to scale back its ambitions, Saudi Aramco raised $25.6bn in the largest IPO, surpassing the $25bn raised by China’s Alibaba when it debuted on Wall Street in 2014 and giving it a valuation of $1.7tn.
Saudi Aramco’s shares rose by the maximum level with bids at 35.2 riyal, confirming its position as the world’s most valuable company — more than the combined market capitalisation of the five biggest international oil companies.
Saudi Aramco shares rallied 10 per cent on Wednesday as the state oil company began trading on Riyadh’s Tadawul stock exchange, giving the group a market value of nearly $1.9tn.
The company’s stock market debut marks the culmination of a nearly four-year process since Crown Prince Mohammed bin Salman, the heir apparent, first disclosed plans for a listing.
After a series of delays in which the company was forced to scale back its ambitions, Saudi Aramco raised $25.6bn in the largest IPO, surpassing the $25bn raised by China’s Alibaba when it debuted on Wall Street in 2014 and giving it a valuation of $1.7tn.
Saudi Aramco’s shares rose by the maximum level with bids at 35.2 riyal, confirming its position as the world’s most valuable company — more than the combined market capitalisation of the five biggest international oil companies.
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