End of the American era in the Middle East | Financial Times:
For centuries, the Middle East has been dominated by outside powers. The collapse of Ottoman rule at the end of the first world war was followed by a century in which western nations — first Britain and France, then the US — were the most powerful external actors. But that era of American dominance is now coming to a close.
The decline of US influence in the Middle East was captured by an impotent tweet from President Donald Trump on Boxing Day: “Russia, Syria, and Iran are killing, or on their way to killing, thousands of innocent civilians in Idlib Province. Don’t do it!” Underlying the president’s hand-wringing about Syria is a rapid decline in the ability and willingness of the US to shape events in the Middle East — leaving a gap that is being filled by other powers, such as Russia, Iran and Turkey.
Of course, if the Americans are directly challenged they can and will respond forcefully — witness the bombing raids that the US staged on an Iranian-backed militia on the Iraq-Syria border this weekend. But the appetite for broader strategic plays in the Middle East seems to have largely disappeared from the White House.
Monday, 30 December 2019
McDermott Said to Be in Talks With Lenders to File Bankruptcy - Bloomberg
McDermott Said to Be in Talks With Lenders to File Bankruptcy - Bloomberg:
McDermott International Inc. is in discussions with lenders about providing a $2 billion bankruptcy loan, ahead of a Chapter 11 filing that could come in the next few weeks, according to people with knowledge of the matter.
The Houston-based engineering and construction firm is negotiating with a group including Baupost Group LLC and HPS Investment Partners LLC, the people said, who asked not to be identified discussing confidential matters. Dow Jones reported the news earlier.
The company’s shares were down as much 64% after the news that it was negotiating a bankruptcy loan. Representatives for McDermott, Baupost and HPS declined to comment.
McDermott is facing a Jan. 15 deadline on a forbearance agreement with some of its creditors. Its lenders previously agreed to provide as much as $1.7 billion in rescue financing, provided it meets certain conditions. The company is currently trying to sell its Lummus Technology business.
McDermott International Inc. is in discussions with lenders about providing a $2 billion bankruptcy loan, ahead of a Chapter 11 filing that could come in the next few weeks, according to people with knowledge of the matter.
The Houston-based engineering and construction firm is negotiating with a group including Baupost Group LLC and HPS Investment Partners LLC, the people said, who asked not to be identified discussing confidential matters. Dow Jones reported the news earlier.
The company’s shares were down as much 64% after the news that it was negotiating a bankruptcy loan. Representatives for McDermott, Baupost and HPS declined to comment.
McDermott is facing a Jan. 15 deadline on a forbearance agreement with some of its creditors. Its lenders previously agreed to provide as much as $1.7 billion in rescue financing, provided it meets certain conditions. The company is currently trying to sell its Lummus Technology business.
Former Nissan Chief Carlos Ghosn arrives in Beirut, Lebanon
Former Nissan Chief Carlos Ghosn arrives in Beirut, Lebanon:
Former Nissan chairman Carlos Ghosn, who is awaiting trial in Japan on charges of financial misconduct, has arrived in Beirut, a close friend said Monday. He apparently jumped bail.
It was not clear how Ghosn, who is of Lebanese origins, left Japan where he was under surveillance and is expected to face trial in April 2020.
Ricardo Karam, a television host and friend of Ghosn who interviewed him several times, told The Associated Press Ghosn arrived in Lebanon Monday morning..
“He is home,” Karam told the AP in a message. “It’s a big adventure.”
Karam declined to elaborate.
Local media first reported Ghosn arrived in Lebanon, but didn’t offer details.
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| A security guard stands in the garage at the residence of former Nissan Chairman Carlos Ghosn on Monday, Dec. 30, 2019 in Beirut, Lebanon. A close friend says Ghosn, who is awaiting trial in Japan, has arrived in Beirut. It was not clear how Ghosn, who is of Lebanese origins, left Japan where he is under surveillance and is expected to face trial in April 2020. (AP Photo/Maya Alleruzzo) |
Former Nissan chairman Carlos Ghosn, who is awaiting trial in Japan on charges of financial misconduct, has arrived in Beirut, a close friend said Monday. He apparently jumped bail.
It was not clear how Ghosn, who is of Lebanese origins, left Japan where he was under surveillance and is expected to face trial in April 2020.
Ricardo Karam, a television host and friend of Ghosn who interviewed him several times, told The Associated Press Ghosn arrived in Lebanon Monday morning..
“He is home,” Karam told the AP in a message. “It’s a big adventure.”
Karam declined to elaborate.
Local media first reported Ghosn arrived in Lebanon, but didn’t offer details.
Oil hits three-month high on upbeat data, Middle East tension - Reuters
Oil hits three-month high on upbeat data, Middle East tension - Reuters:
Oil prices rose on Monday to three-month highs, lifted by optimism over an expected China-U.S. trade deal and upbeat industrial data, while traders kept a close watch on the Middle East following U.S. air strikes in Iraq and Syria.
International benchmark Brent LCOc1 reached $68.99 a barrel, while U.S. crude futures CLc1 hit $62.34 a barrel, both the highest since Sept. 17. For the year, Brent has risen around 27% in 2019, and the U.S. benchmark is up about 36%.
Brent crude futures LCOc1 rose 28 cents to settle at $68.44 a barrel. West Texas Intermediate (WTI) crude CLc1 futures fell 4 cents to settle at $61.68 a barrel.
White House trade adviser Peter Navarro told Fox News in an interview that the U.S.-China Phase 1 trade deal would likely be signed in the next week.
Oil prices rose on Monday to three-month highs, lifted by optimism over an expected China-U.S. trade deal and upbeat industrial data, while traders kept a close watch on the Middle East following U.S. air strikes in Iraq and Syria.
International benchmark Brent LCOc1 reached $68.99 a barrel, while U.S. crude futures CLc1 hit $62.34 a barrel, both the highest since Sept. 17. For the year, Brent has risen around 27% in 2019, and the U.S. benchmark is up about 36%.
Brent crude futures LCOc1 rose 28 cents to settle at $68.44 a barrel. West Texas Intermediate (WTI) crude CLc1 futures fell 4 cents to settle at $61.68 a barrel.
White House trade adviser Peter Navarro told Fox News in an interview that the U.S.-China Phase 1 trade deal would likely be signed in the next week.
MIDEAST STOCKS-Banks hold back #Saudi, Egypt rebounds on lender COMI - Reuters
MIDEAST STOCKS-Banks hold back Saudi, Egypt rebounds on lender COMI - Reuters:
Saudi Arabia's stock market fell on
Monday, pulled down by losses in banking shares, while Egypt
rebounded on the back of its top lender Commercial International
Bank (COMI).
In Saudi Arabia, the benchmark index lost 0.8%, with
Al Rajhi Bank shedding 1.1% and Riyad Bank
sliding 3.5%. Earlier in the day, Riyad Bank had risen after
announcing a higher dividend for the second half.
Elsewhere, oil giant Saudi Aramco lost 0.7%, after
two days of gains. Last Tuesday, Aramco said Goldman Sachs may
buy more of its shares to support the price. The so-called
stabilisation period will end on Jan. 9.
Egypt's blue-chip index added 0.9%, buoyed by a
1.1% increase in the country's biggest lender Commercial
International Bank and a 2.9% rise in Eastern Company
Saudi Arabia's stock market fell on
Monday, pulled down by losses in banking shares, while Egypt
rebounded on the back of its top lender Commercial International
Bank (COMI).
In Saudi Arabia, the benchmark index lost 0.8%, with
Al Rajhi Bank shedding 1.1% and Riyad Bank
sliding 3.5%. Earlier in the day, Riyad Bank had risen after
announcing a higher dividend for the second half.
Elsewhere, oil giant Saudi Aramco lost 0.7%, after
two days of gains. Last Tuesday, Aramco said Goldman Sachs may
buy more of its shares to support the price. The so-called
stabilisation period will end on Jan. 9.
Egypt's blue-chip index added 0.9%, buoyed by a
1.1% increase in the country's biggest lender Commercial
International Bank and a 2.9% rise in Eastern Company
Gulf Borrowers Pivot From Loans with $100 Billion Bond Record - Bloomberg
Gulf Borrowers Pivot From Loans with $100 Billion Bond Record - Bloomberg:
Gulf borrowers raised more than $100 billion in bond placements this year, a record amount that marked a shift from the more private funding route offered by loans.
Saudi Aramco and Qatar were the biggest issuers, while Egypt, Oman and Saudi Arabia also tapped international bond markets. Syndicated loans dropped 39% this year as sovereigns and companies sold notes in dollars and euros -- a significant development for borrowers that have traditionally avoided airing their finances in public.
Issuers seized on low borrowing costs as central banks globally cut rates to counter the economic threat of the U.S.-China trade war, while international investors were lured to the Gulf’s comparatively high yields. Bond sales in the six-nation Gulf Cooperation Council climbed 28% to the equivalent of $100.9 billion.
Gulf borrowers raised more than $100 billion in bond placements this year, a record amount that marked a shift from the more private funding route offered by loans.
Saudi Aramco and Qatar were the biggest issuers, while Egypt, Oman and Saudi Arabia also tapped international bond markets. Syndicated loans dropped 39% this year as sovereigns and companies sold notes in dollars and euros -- a significant development for borrowers that have traditionally avoided airing their finances in public.
Issuers seized on low borrowing costs as central banks globally cut rates to counter the economic threat of the U.S.-China trade war, while international investors were lured to the Gulf’s comparatively high yields. Bond sales in the six-nation Gulf Cooperation Council climbed 28% to the equivalent of $100.9 billion.
The three key things to watch on energy in 2020 | Financial Times
The three key things to watch on energy in 2020 | Financial Times:
Anyone wanting to make sense of the energy market in 2020 should watch three key indicators. The significant drivers of the market next year will be non-Opec oil production, Chinese oil imports and — more complexly — the influence of politics around climate change. Beyond these, the rest is mere noise.
The first starts with the US, where the boom in tight oil from shale rock continues even though the natural gas sector faces downgrades and shut-ins because of chronic oversupply. Total oil production in the US has risen to more than 12m barrels a day. A further increase is expected in 2020.
But new production is also due on stream next year from Brazil, Norway and Guyana. If non-Opec production rises by more than 1m b/d — which is the forecast level of demand growth — the market will be oversupplied, and even the latest quota agreement by the cartel and Russia will not be sufficient to avoid a further fall in prices.
Anyone wanting to make sense of the energy market in 2020 should watch three key indicators. The significant drivers of the market next year will be non-Opec oil production, Chinese oil imports and — more complexly — the influence of politics around climate change. Beyond these, the rest is mere noise.
The first starts with the US, where the boom in tight oil from shale rock continues even though the natural gas sector faces downgrades and shut-ins because of chronic oversupply. Total oil production in the US has risen to more than 12m barrels a day. A further increase is expected in 2020.
But new production is also due on stream next year from Brazil, Norway and Guyana. If non-Opec production rises by more than 1m b/d — which is the forecast level of demand growth — the market will be oversupplied, and even the latest quota agreement by the cartel and Russia will not be sufficient to avoid a further fall in prices.
Seeking Opportunities in #Qatar, #Kuwait Stocks - Bloomberg
Seeking Opportunities in Qatar, Kuwait Stocks - Bloomberg:
Akber Khan, the senior director of asset management at Al Rayan Investment in Doha, talks about Qatari and Kuwait stocks. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Akber Khan, the senior director of asset management at Al Rayan Investment in Doha, talks about Qatari and Kuwait stocks. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Short Seller Muddy Waters Ends Busy Year With NMC Share Plunge - Bloomberg
Short Seller Muddy Waters Ends Busy Year With NMC Share Plunge - Bloomberg:
Short seller Carson Block has had mixed results in 2019, but he’s ending the year with a bang.
Shares of NMC Health Plc, the Middle Eastern hospital operator that’s Block’s latest target, have slumped 33% since his Muddy Waters Capital LLC said Dec. 17 that the company is understating its debt and overstating its cash. NMC Health denied wrongdoing, said it would hire an accounting firm for a review and would pursue regulatory action against third parties that have tried to manipulate the share price.
The bet has been one of his most successful this year. Block, who made his name shorting Chinese shares, has targeted seven companies in 2019. That’s the most in the almost 10 years he’s been in the business, based on his publicly disclosed positions. While four of the stocks are down, two targets in Asia and one in Germany recovered from initial losses.
With equity markets at records, Muddy Waters is finding “more large, liquid problematic companies than before, but at the same time, increasing levels of investor apathy,” Block said by email.
Short seller Carson Block has had mixed results in 2019, but he’s ending the year with a bang.
Shares of NMC Health Plc, the Middle Eastern hospital operator that’s Block’s latest target, have slumped 33% since his Muddy Waters Capital LLC said Dec. 17 that the company is understating its debt and overstating its cash. NMC Health denied wrongdoing, said it would hire an accounting firm for a review and would pursue regulatory action against third parties that have tried to manipulate the share price.
The bet has been one of his most successful this year. Block, who made his name shorting Chinese shares, has targeted seven companies in 2019. That’s the most in the almost 10 years he’s been in the business, based on his publicly disclosed positions. While four of the stocks are down, two targets in Asia and one in Germany recovered from initial losses.
With equity markets at records, Muddy Waters is finding “more large, liquid problematic companies than before, but at the same time, increasing levels of investor apathy,” Block said by email.
U.S. LNG exports soar in 2019 but supply glut may await in 2020 - Reuters
U.S. LNG exports soar in 2019 but supply glut may await in 2020 - Reuters:
U.S. exporters of liquefied natural gas (LNG) head into 2020 after a record year that saw exports soar by more than 60%, but growing concerns about weakened demand and heavy competition could act as headwinds in the coming year.
Four new liquefaction trains - the common term for a shipping facility - entered service this year in the United States. The U.S. is on track to become the biggest global LNG exporter by 2024.
LNG is seen as an alternative for Asian countries that have relied on coal-fired power plants. LNG exports have surged in recent years out of Qatar, Australia, and the United States, the three biggest exporters of the super-cooled fuel.
The fickle nature of the market was apparent early this year, when a warm winter in Asia cut heating demand and prompted Asian importers to divert cargoes to Europe.
U.S. exporters of liquefied natural gas (LNG) head into 2020 after a record year that saw exports soar by more than 60%, but growing concerns about weakened demand and heavy competition could act as headwinds in the coming year.
Four new liquefaction trains - the common term for a shipping facility - entered service this year in the United States. The U.S. is on track to become the biggest global LNG exporter by 2024.
LNG is seen as an alternative for Asian countries that have relied on coal-fired power plants. LNG exports have surged in recent years out of Qatar, Australia, and the United States, the three biggest exporters of the super-cooled fuel.
The fickle nature of the market was apparent early this year, when a warm winter in Asia cut heating demand and prompted Asian importers to divert cargoes to Europe.
Oil edges up on upbeat data, Middle East unrest - Reuters
Oil edges up on upbeat data, Middle East unrest - Reuters:
Oil prices held on to three-month highs on Monday, underpinned by optimism over an expected China-U.S. trade deal and upbeat industrial data, while traders kept a close watch on the Middle East following a U.S. air strike.
Investors remained cautious despite news of the U.S. strikes in Iraq and Syria against an Iran-backed militia group, even as U.S. officials warned “additional actions” may be taken.
West Texas Intermediate (WTI) crude futures CLc1 rose 4 cents to $61.76 a barrel by 0800 GMT. The U.S. benchmark is up about 36% so far this year.
Brent crude futures LCOc1 were at $68.33 a barrel, up 17 cents, or 0.3%. The international benchmark has risen around 27% in 2019.
Oil prices held on to three-month highs on Monday, underpinned by optimism over an expected China-U.S. trade deal and upbeat industrial data, while traders kept a close watch on the Middle East following a U.S. air strike.
Investors remained cautious despite news of the U.S. strikes in Iraq and Syria against an Iran-backed militia group, even as U.S. officials warned “additional actions” may be taken.
West Texas Intermediate (WTI) crude futures CLc1 rose 4 cents to $61.76 a barrel by 0800 GMT. The U.S. benchmark is up about 36% so far this year.
Brent crude futures LCOc1 were at $68.33 a barrel, up 17 cents, or 0.3%. The international benchmark has risen around 27% in 2019.
Oil price rise muted in 2019 despite sanctions, supply cuts, attack in Saudi Arabia - Reuters
Oil price rise muted in 2019 despite sanctions, supply cuts, attack in Saudi Arabia - Reuters:
Oil prices rose more than 20% this year but there were no sharp spikes and crude futures barely sniffed $70 a barrel despite attacks on the world’s biggest oil producer, sanctions that crippled crude exports of two OPEC members and gigantic supply cuts from big oil producing countries.
The price gains in crude oil benchmarks were all in the first quarter of 2019, even as the next several months featured supply shocks that in the past would probably have propelled crude past the $100 mark.
Prices are likely to remain rangebound in 2020 as swelling supplies, particularly from the United States, offset cuts from the Organization of the Petroleum Exporting Countries and weakening worldwide demand, brokers and analysts said.
U.S. crude oil CLc1 is on track to end 2019 roughly 35% higher. Since the end of March, it is up just 3%, after rallying early in the year after the United States introduced sanctions on Venezuela. Brent has gained 26%, but is off by 1% since the first quarter.
Oil prices rose more than 20% this year but there were no sharp spikes and crude futures barely sniffed $70 a barrel despite attacks on the world’s biggest oil producer, sanctions that crippled crude exports of two OPEC members and gigantic supply cuts from big oil producing countries.
The price gains in crude oil benchmarks were all in the first quarter of 2019, even as the next several months featured supply shocks that in the past would probably have propelled crude past the $100 mark.
Prices are likely to remain rangebound in 2020 as swelling supplies, particularly from the United States, offset cuts from the Organization of the Petroleum Exporting Countries and weakening worldwide demand, brokers and analysts said.
U.S. crude oil CLc1 is on track to end 2019 roughly 35% higher. Since the end of March, it is up just 3%, after rallying early in the year after the United States introduced sanctions on Venezuela. Brent has gained 26%, but is off by 1% since the first quarter.
MIDEAST STOCKS-Most major Gulf markets subdued, Aramco retreats - Reuters
MIDEAST STOCKS-Most major Gulf markets subdued, Aramco retreats - Reuters:
Most Gulf stock markets were sluggish in thin trading early on Monday, with financials hurting Saudi Arabia and telecoms company Etisalat falling in Abu Dhabi.
Saudi Arabia’s benchmark index edged down 0.1%. Al Rajhi Bank lost 0.3% and Arab National Bank was down 0.9%, a day after its board proposed a lower second-half dividend.
Oil giant Saudi Aramco slipped 0.1%, after two days of gains. On Tuesday, Aramco said Goldman Sachs may buy more of its shares to support the price. The so-called stabilisation period will end on Jan. 9.
Riyad Bank added 0.3% after raising its dividend for the second half to 0.55 riyal per share.
Most Gulf stock markets were sluggish in thin trading early on Monday, with financials hurting Saudi Arabia and telecoms company Etisalat falling in Abu Dhabi.
Saudi Arabia’s benchmark index edged down 0.1%. Al Rajhi Bank lost 0.3% and Arab National Bank was down 0.9%, a day after its board proposed a lower second-half dividend.
Oil giant Saudi Aramco slipped 0.1%, after two days of gains. On Tuesday, Aramco said Goldman Sachs may buy more of its shares to support the price. The so-called stabilisation period will end on Jan. 9.
Riyad Bank added 0.3% after raising its dividend for the second half to 0.55 riyal per share.