COLUMN-Oil prices rise on optimism about economy in 2020: Kemp - Reuters:
Crude oil traders have become progressively more bullish about the outlook for prices since the beginning of October as the trade war between the United States and China has eased, lifting concerns about a global recession.
Deeper production cuts by Saudi Arabia and its allies in the expanded OPEC+ group of oil exporters, announced at the start of this month, have probably accelerated the bullish shift.
But production cuts are a second-order effect. The rise in oil prices has been primarily driven by greater optimism about the outlook for global trade and the economy next year (tmsnrt.rs/2PSMGgW).
Manufacturing surveys and data on industrial production in the United States, China, India and Germany have all started to show tentative signs that the recent slowdown in global growth and trade may be bottoming out.
Tuesday 17 December 2019
Oil rises further above $65 on trade hopes, supply cuts - Reuters
Oil rises further above $65 on trade hopes, supply cuts - Reuters:
Oil prices rose more than 1% on Tuesday, supported by hopes the U.S.-China trade deal will bolster oil demand in 2020 after a prolonged dispute between the world’s two largest economies dented global market sentiment.
The Phase 1 agreement between the United States and China has been “absolutely completed,” Larry Kudlow, a top White House adviser, said on Monday, predicting U.S. exports to China will double under the deal.
Brent crude LCOc1 futures gained 76 cents, or 1.2%, to settle at $66.10 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 73 cents, or 1.2%, to settle at $60.94 a barrel.
The Phase 1 agreement does not mean tensions are going to fully dissipate anytime soon, Dallas Fed President Robert Kaplan said on Tuesday.
Oil prices rose more than 1% on Tuesday, supported by hopes the U.S.-China trade deal will bolster oil demand in 2020 after a prolonged dispute between the world’s two largest economies dented global market sentiment.
The Phase 1 agreement between the United States and China has been “absolutely completed,” Larry Kudlow, a top White House adviser, said on Monday, predicting U.S. exports to China will double under the deal.
Brent crude LCOc1 futures gained 76 cents, or 1.2%, to settle at $66.10 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 73 cents, or 1.2%, to settle at $60.94 a barrel.
The Phase 1 agreement does not mean tensions are going to fully dissipate anytime soon, Dallas Fed President Robert Kaplan said on Tuesday.
Healthcare group NMC shares drop after short-seller’s warning | Financial Times
Healthcare group NMC shares drop after short-seller’s warning | Financial Times:
NMC Health lost more than a third of its value on Tuesday after short-seller Muddy Waters warned that it had “serious doubts” about the FTSE 100 company’s financial statements.
The healthcare operator’s shares dropped 37 per cent, knocking more than £1.4bn off the company’s market value, after Muddy Waters questioned the group’s asset values, cash balance, reported profits and debt levels.
NMC owns and manages a network of hospitals, medical centres and fertility clinics across 19 countries, centred around the Middle East. It was founded in 1974 in Abu Dhabi, listed in London in 2012 and joined the prestigious FTSE 100 index in 2017.
The company, which reported revenues of $2.1bn last year, has grown quickly since its flotation through a series of acquisitions, as well as its building its own developments.
NMC Health lost more than a third of its value on Tuesday after short-seller Muddy Waters warned that it had “serious doubts” about the FTSE 100 company’s financial statements.
The healthcare operator’s shares dropped 37 per cent, knocking more than £1.4bn off the company’s market value, after Muddy Waters questioned the group’s asset values, cash balance, reported profits and debt levels.
NMC owns and manages a network of hospitals, medical centres and fertility clinics across 19 countries, centred around the Middle East. It was founded in 1974 in Abu Dhabi, listed in London in 2012 and joined the prestigious FTSE 100 index in 2017.
The company, which reported revenues of $2.1bn last year, has grown quickly since its flotation through a series of acquisitions, as well as its building its own developments.
MIDEAST STOCKS- #Qatar biggest gainer as major Gulf markets rise - Agricultural Commodities - Reuters
MIDEAST STOCKS-Qatar biggest gainer as major Gulf markets rise - Agricultural Commodities - Reuters:
Saudi Arabia's stock market closed on a
positive note on Tuesday, supported by gains in financial
shares, while Qatar was up a day after the country announced its
biggest budget in five years.
The Saudi benchmark index was up 0.7%. But Al Rajhi
Bank lost 0.9% and National Commercial Bank
fell 1.4%.
On Monday, NCB and Riyad Bank decided to end
preliminary merger talks, the two said in separate stock
exchange filings. Riyad Bank slid 3.2%.
National Shipping Company of Saudi Arabia (Bahri)
jumped 4.4%, to its highest since July 2017, after it signed a
contract with a saline water conversion company to supply
desalinated water from floating stations.
Saudi Arabia's stock market closed on a
positive note on Tuesday, supported by gains in financial
shares, while Qatar was up a day after the country announced its
biggest budget in five years.
The Saudi benchmark index was up 0.7%. But Al Rajhi
Bank lost 0.9% and National Commercial Bank
fell 1.4%.
On Monday, NCB and Riyad Bank decided to end
preliminary merger talks, the two said in separate stock
exchange filings. Riyad Bank slid 3.2%.
National Shipping Company of Saudi Arabia (Bahri)
jumped 4.4%, to its highest since July 2017, after it signed a
contract with a saline water conversion company to supply
desalinated water from floating stations.
Oil Nears $61 for First Time in Three Months as Optimism Abounds - Bloomberg
Oil Nears $61 for First Time in Three Months as Optimism Abounds - Bloomberg:
Oil approached $61 a barrel for the first time in more than three months as strengthening outlooks for manufacturing and trade buoyed demand prospects.
Futures rose as much as 1.2% in New York on Tuesday, extending the advance to a fourth straight session. U.S. factory production has rebounded just as the world’s two largest economies move toward a preliminary settlement of their long-running trade dispute.
Meanwhile, American crude stockpiles probably shrank by 1.75 million barrels last week, a Bloomberg survey showed, signaling tightening supplies.
The factory data and imminent trade agreement followed deeper-than-expected output cuts agreed by OPEC+ earlier this month, which Citigroup Inc. said will help keep a floor under crude prices.
Oil approached $61 a barrel for the first time in more than three months as strengthening outlooks for manufacturing and trade buoyed demand prospects.
Futures rose as much as 1.2% in New York on Tuesday, extending the advance to a fourth straight session. U.S. factory production has rebounded just as the world’s two largest economies move toward a preliminary settlement of their long-running trade dispute.
Meanwhile, American crude stockpiles probably shrank by 1.75 million barrels last week, a Bloomberg survey showed, signaling tightening supplies.
The factory data and imminent trade agreement followed deeper-than-expected output cuts agreed by OPEC+ earlier this month, which Citigroup Inc. said will help keep a floor under crude prices.
Muddy Waters Short Report Sends NMC Health to Record Plunge - Bloomberg
Muddy Waters Short Report Sends NMC Health to Record Plunge - Bloomberg:
NMC Health Plc shares tumbled the most on record after the London-listed hospital operator became the latest target of short seller Carson Block’s Muddy Waters Capital LLC.
The health-care company’s financial statements hint at potential overpayment for assets, inflated cash balances and understated debt, according to a report on Muddy Waters’s website. Shares of NMC Health plunged as much as 35%, wiping out about 1.9 billion pounds ($2.5 billion) in market value. Company representatives declined to comment immediately.
Financial services company Finablr Plc, which listed in May, dropped as much as 18%, and the benchmark FTSE 100 Index fell 0.2%. Both NMC Health and Finablr were founded by Abu Dhabi-based billionaire Bavaguthu Raghuram Shetty.
NMC appears to have overpaid for its investment in redeveloping an Abu Dhabi hospital and for a stake in Premier Care Home Medical and Health Care LLC, the report said. Its margins also appear too high in comparison with rivals like Mediclinic International Plc, according to Muddy Waters. Reported cash balances are high when compared with the amount of interest the company has reported earning, the short seller said.
NMC Health Plc shares tumbled the most on record after the London-listed hospital operator became the latest target of short seller Carson Block’s Muddy Waters Capital LLC.
The health-care company’s financial statements hint at potential overpayment for assets, inflated cash balances and understated debt, according to a report on Muddy Waters’s website. Shares of NMC Health plunged as much as 35%, wiping out about 1.9 billion pounds ($2.5 billion) in market value. Company representatives declined to comment immediately.
Financial services company Finablr Plc, which listed in May, dropped as much as 18%, and the benchmark FTSE 100 Index fell 0.2%. Both NMC Health and Finablr were founded by Abu Dhabi-based billionaire Bavaguthu Raghuram Shetty.
NMC appears to have overpaid for its investment in redeveloping an Abu Dhabi hospital and for a stake in Premier Care Home Medical and Health Care LLC, the report said. Its margins also appear too high in comparison with rivals like Mediclinic International Plc, according to Muddy Waters. Reported cash balances are high when compared with the amount of interest the company has reported earning, the short seller said.
Aramco shares dip slightly ahead of MSCI inclusion - Reuters
Aramco shares dip slightly ahead of MSCI inclusion - Reuters:
Saudi Aramco shares closed down 0.66% at 37.75 riyals ($10.07) on Tuesday, Refinitiv data showed, ahead of their inclusion into the MSCI emerging markets index, which will be effective on Wednesday.
Its entry into the index will be based on Tuesday’s closing price, which puts the oil company’s market value slightly above $2 trillion - the price tag long sought by Crown Prince Mohammed bin Salman.
Aramco’s shares will also join the Tadawul index on Wednesday and global benchmark FTSE on Thursday, inclusions that analysts have said should fuel demand, particularly from “passive” investors.
According to a note by Dubai-based Arqaam Capital, based on the preliminary free float assigned by the index compiler, passive inflows from the MSCI inclusion will amount to about $710 million while FTSE’s inclusion could lead to about $400 million in total inflows.
Saudi Aramco shares closed down 0.66% at 37.75 riyals ($10.07) on Tuesday, Refinitiv data showed, ahead of their inclusion into the MSCI emerging markets index, which will be effective on Wednesday.
Its entry into the index will be based on Tuesday’s closing price, which puts the oil company’s market value slightly above $2 trillion - the price tag long sought by Crown Prince Mohammed bin Salman.
Aramco’s shares will also join the Tadawul index on Wednesday and global benchmark FTSE on Thursday, inclusions that analysts have said should fuel demand, particularly from “passive” investors.
According to a note by Dubai-based Arqaam Capital, based on the preliminary free float assigned by the index compiler, passive inflows from the MSCI inclusion will amount to about $710 million while FTSE’s inclusion could lead to about $400 million in total inflows.
Oil steadies on U.S.-China trade hopes, supply cuts - Reuters
Oil steadies on U.S.-China trade hopes, supply cuts - Reuters:
Oil steadied above $65 a barrel on Tuesday, supported by hopes that the U.S.-China trade deal will bolster oil demand in 2020 and the prospect of lower U.S. crude supplies.
The ‘Phase One’ agreement between the world’s two largest economies has been “absolutely completed,” Larry Kudlow, a top White House adviser, said on Monday, adding that U.S. exports to China will double under the deal.
Brent crude LCOc1, the global benchmark, slipped 12 cents to $65.22 a barrel by 0945 GMT, while U.S. West Texas Intermediate crude CLc1 eased 14 cents to $60.07.
“Christmas has definitely arrived early for oil producers,” said Craig Erlam, analyst at brokerage OANDA. “Brent could get closer to $70 before the rally starts to run on fumes.”
Oil steadied above $65 a barrel on Tuesday, supported by hopes that the U.S.-China trade deal will bolster oil demand in 2020 and the prospect of lower U.S. crude supplies.
The ‘Phase One’ agreement between the world’s two largest economies has been “absolutely completed,” Larry Kudlow, a top White House adviser, said on Monday, adding that U.S. exports to China will double under the deal.
Brent crude LCOc1, the global benchmark, slipped 12 cents to $65.22 a barrel by 0945 GMT, while U.S. West Texas Intermediate crude CLc1 eased 14 cents to $60.07.
“Christmas has definitely arrived early for oil producers,” said Craig Erlam, analyst at brokerage OANDA. “Brent could get closer to $70 before the rally starts to run on fumes.”
#Kuwait appoints new cabinet after parliament tension - Reuters
Kuwait appoints new cabinet after parliament tension - Reuters:
Kuwait formed a new government on Tuesday that replaced the son of the emir as defense minister and named an interior minister from outside the ruling family, a month after the former cabinet quit due to a row between members of the family and parliament.
The oil minister of the OPEC producer retained his post while new foreign and finance ministers were named, the state news agency KUNA said.
Kuwait, an ally of the United States, has the most open political system in the Gulf Arab region, with a parliament wielding power to pass legislation and question ministers, although senior posts are occupied by ruling family members.
Before the government stepped down last month, lawmakers sought a vote of no confidence in the interior minister as a feud emerged between senior members of the ruling family, including the interior and defense ministers, over alleged mishandling of military funds.
Kuwait formed a new government on Tuesday that replaced the son of the emir as defense minister and named an interior minister from outside the ruling family, a month after the former cabinet quit due to a row between members of the family and parliament.
The oil minister of the OPEC producer retained his post while new foreign and finance ministers were named, the state news agency KUNA said.
Kuwait, an ally of the United States, has the most open political system in the Gulf Arab region, with a parliament wielding power to pass legislation and question ministers, although senior posts are occupied by ruling family members.
Before the government stepped down last month, lawmakers sought a vote of no confidence in the interior minister as a feud emerged between senior members of the ruling family, including the interior and defense ministers, over alleged mishandling of military funds.
MIDEAST STOCKS- #Saudi shares flat on banks, petrochemicals; other markets up - Reuters
MIDEAST STOCKS-Saudi shares flat on banks, petrochemicals; other markets up - Reuters:
Most major Gulf stock markets gained on Tuesday, but Saudi Arabia’s traded flat with financials and petrochemicals moving sideways.
Saudi’s benchmark index was flat, with Riyad Bank shedding 3% and Al Rajhi Bank losing 0.2%.
On Monday, Riyad Bank and National Commercial Bank ( decided to end preliminary merger talks, the two said in separate stock exchange filings. NCB was up 0.3%.
Saudi Aramco slipped 0.3% in early trade after four straight days of gains. The state-owned company will join MSCI on Tuesday.
Most major Gulf stock markets gained on Tuesday, but Saudi Arabia’s traded flat with financials and petrochemicals moving sideways.
Saudi’s benchmark index was flat, with Riyad Bank shedding 3% and Al Rajhi Bank losing 0.2%.
On Monday, Riyad Bank and National Commercial Bank ( decided to end preliminary merger talks, the two said in separate stock exchange filings. NCB was up 0.3%.
Saudi Aramco slipped 0.3% in early trade after four straight days of gains. The state-owned company will join MSCI on Tuesday.