Oil eases as focus shifts from Iran tensions to U.S. crude build - Reuters:
Oil prices retreated further on Thursday, adding to sharp losses in the previous session as the market shifted focus toward rising U.S. crude stocks and away from worries about the conflict between the United States and Iran.
Broadly, prices were moving back toward where they stood before a Jan. 3 U.S. drone strike killed a top Iranian general, prompting an Iranian rocket attack on Iraqi air bases hosting U.S. forces. These events pushed crude to its highest in four months.
“The way the market gives a geopolitical risk premium and then takes it right back indicates that the market fundamentally isn’t very strong,” said Gene McGillian, director of market research at Tradition Energy in Stamford, Connecticut. “A lot of participants in the market think that there’s a lot of oil around the world that consumption doesn’t take care of.”
After falling 4.1% on Wednesday, Brent crude futures settled down 5 cents at $65.37 a barrel. West Texas Intermediate fell 7 cents to $59.56 after sliding nearly 5% the previous day.
During European trading hours Iranian media carried reports of military commanders speaking of further action aimed at expelling U.S. troops from the region.
Thursday, 9 January 2020
#Dubai’s Amanat Said to Weigh Acquiring VPS Healthcare Stake - Bloomberg
Dubai’s Amanat Said to Weigh Acquiring VPS Healthcare Stake - Bloomberg:
Amanat Holdings PJSC, the Dubai-based investment firm, is considering acquiring a stake in Middle Eastern hospital operator VPS Healthcare LLC, people with knowledge of the matter said.
The companies have held early discussions about a possible deal, the people said, asking not to be identified as the matter is private. Amanat, which owns companies in the health-care and education industries, is working with a financial adviser to explore the potential investment, according to the people.
The talks come at a challenging time for Middle Eastern hospital operators. NMC Health Plc, a larger London-listed rival, has been facing allegations by Carson Block’s Muddy Waters Capital LLC that the company’s financial statements hint at potential overpayment for assets, inflated cash balances and understated debt. NMC has called those claims are unfounded and vowed to conduct an independent review.
Amanat Holdings PJSC, the Dubai-based investment firm, is considering acquiring a stake in Middle Eastern hospital operator VPS Healthcare LLC, people with knowledge of the matter said.
The companies have held early discussions about a possible deal, the people said, asking not to be identified as the matter is private. Amanat, which owns companies in the health-care and education industries, is working with a financial adviser to explore the potential investment, according to the people.
The talks come at a challenging time for Middle Eastern hospital operators. NMC Health Plc, a larger London-listed rival, has been facing allegations by Carson Block’s Muddy Waters Capital LLC that the company’s financial statements hint at potential overpayment for assets, inflated cash balances and understated debt. NMC has called those claims are unfounded and vowed to conduct an independent review.
Turkish Stocks Enjoy World’s Biggest Rally on Fading Iran Fears - Bloomberg
Turkish Stocks Enjoy World’s Biggest Rally on Fading Iran Fears - Bloomberg:
Turkish stocks rose the most among all major equity markets worldwide on Thursday as investors’ concerns over a possible escalation in tensions between the U.S. and Iran waned, sparking a sharp relief rally across the Middle East.
The Borsa Istanbul 100 Index soared as much as 4.7%, the most among 94 major global equity gauges tracked by Bloomberg. Thursday’s jump was the biggest increase for the Istanbul benchmark since November 2015.
Elsewhere in the region, Saudi Arabia’s Tadawul All Share Index climbed 2.7%, the most since October, with Saudi Aramco rising 2.3%, up for the first time in five days. Indexes in Dubai, Abu Dhabi, Bahrain, Kuwait, Oman, Qatar and Egypt also gained ground, up between 0.8% and 1.9%.
The prospect of an open war in the Gulf region dissipated after U.S. President Donald Trump downplayed the impact of missile attacks on American military facilities in Iraq. Shifting away from threats to strike back at Iran, Trump instead called for new sanctions, calming traders and offering the chance to extend the rally that started on Tuesday.
Turkish stocks rose the most among all major equity markets worldwide on Thursday as investors’ concerns over a possible escalation in tensions between the U.S. and Iran waned, sparking a sharp relief rally across the Middle East.
The Borsa Istanbul 100 Index soared as much as 4.7%, the most among 94 major global equity gauges tracked by Bloomberg. Thursday’s jump was the biggest increase for the Istanbul benchmark since November 2015.
Elsewhere in the region, Saudi Arabia’s Tadawul All Share Index climbed 2.7%, the most since October, with Saudi Aramco rising 2.3%, up for the first time in five days. Indexes in Dubai, Abu Dhabi, Bahrain, Kuwait, Oman, Qatar and Egypt also gained ground, up between 0.8% and 1.9%.
The prospect of an open war in the Gulf region dissipated after U.S. President Donald Trump downplayed the impact of missile attacks on American military facilities in Iraq. Shifting away from threats to strike back at Iran, Trump instead called for new sanctions, calming traders and offering the chance to extend the rally that started on Tuesday.
Gulf Capital to Buy Middle East Clinics in $100 Million Deal - Bloomberg
Gulf Capital to Buy Middle East Clinics in $100 Million Deal - Bloomberg:
Gulf Capital PJSC is poised to buy three fertility clinics in the Middle East from IVIRMA Global in a deal worth about $100 million, underscoring growing interest in the region’s health-care sector.
The transaction will include about 100 of IVIRMA’s employees at the facilities in Abu Dhabi, Dubai and Muscat, the fertility company said in an emailed statement. The deal will be completed within “the next few days, although the final transition of some staff members will take place gradually throughout this year.”
A spokeswoman for Abu Dhabi-based Gulf Capital said an announcement will be made next week.
IVIRMA, formed out of a merger Spain’s Instituto Valenciano de Infertilidad and Reproductive Medicine Associates of New Jersey in 2017, employs almost 2,400 people in 65 locations, according to its website. IVI opened a fertility center in Abu Dhabi in 2015 to tap into the region’s increased demand for assisted reproductivity.
Gulf Capital PJSC is poised to buy three fertility clinics in the Middle East from IVIRMA Global in a deal worth about $100 million, underscoring growing interest in the region’s health-care sector.
The transaction will include about 100 of IVIRMA’s employees at the facilities in Abu Dhabi, Dubai and Muscat, the fertility company said in an emailed statement. The deal will be completed within “the next few days, although the final transition of some staff members will take place gradually throughout this year.”
A spokeswoman for Abu Dhabi-based Gulf Capital said an announcement will be made next week.
IVIRMA, formed out of a merger Spain’s Instituto Valenciano de Infertilidad and Reproductive Medicine Associates of New Jersey in 2017, employs almost 2,400 people in 65 locations, according to its website. IVI opened a fertility center in Abu Dhabi in 2015 to tap into the region’s increased demand for assisted reproductivity.
Saudi Aramco Props Up Slumping Middle East Energy Debt Market - Bloomberg
Saudi Aramco Props Up Slumping Middle East Energy Debt Market - Bloomberg:
Gulf Arab energy companies took on marginally more total debt in 2019 compared with the previous year, but the increase was skewed by a surge in borrowing by Saudi Aramco and its refining joint venture.
Excluding new Saudi loans and bonds of $15.6 billion, energy-company debt in the oil-rich region tumbled by two-thirds, according to data compiled by Bloomberg.
Lending was particularly sluggish in the second half of 2019, when these companies borrowed just $5.5 billion -- the lowest level in three years.
Aramco’s majority-owned Satorp refinery venture alone accounted for $3.6 billion of all second-half debt.
Gulf Arab energy companies took on marginally more total debt in 2019 compared with the previous year, but the increase was skewed by a surge in borrowing by Saudi Aramco and its refining joint venture.
Excluding new Saudi loans and bonds of $15.6 billion, energy-company debt in the oil-rich region tumbled by two-thirds, according to data compiled by Bloomberg.
Lending was particularly sluggish in the second half of 2019, when these companies borrowed just $5.5 billion -- the lowest level in three years.
Aramco’s majority-owned Satorp refinery venture alone accounted for $3.6 billion of all second-half debt.
First Abu Dhabi Bank to auction Al Jaber's #Dubai Shangri-La hotel: sources - Reuters
First Abu Dhabi Bank to auction Al Jaber's Dubai Shangri-La hotel: sources - Reuters:
First Abu Dhabi Bank (FAB) (FAB.AD) has started an auction process for a Dubai hotel operated by Shangri-La and owned by indebted construction group Al Jaber with a starting price of 700 million dirhams ($190.59 million), two sources said.
Al Jaber, best known as a contractor but with interests across a range of sectors, has struggled since a construction downturn in the United Arab Emirates after the global financial crisis.
The auction by First Abu Dhabi Bank, which is the main lender for the Shangri-La hotel, marks a first step by creditors to recover funds after delays to a restructuring agreement for 5.9 billion dirhams of debt last year, one of the sources said.
Al Jaber declined to comment when contacted by Reuters on Thursday and FAB was not immediately available for comment.
First Abu Dhabi Bank (FAB) (FAB.AD) has started an auction process for a Dubai hotel operated by Shangri-La and owned by indebted construction group Al Jaber with a starting price of 700 million dirhams ($190.59 million), two sources said.
Al Jaber, best known as a contractor but with interests across a range of sectors, has struggled since a construction downturn in the United Arab Emirates after the global financial crisis.
The auction by First Abu Dhabi Bank, which is the main lender for the Shangri-La hotel, marks a first step by creditors to recover funds after delays to a restructuring agreement for 5.9 billion dirhams of debt last year, one of the sources said.
Al Jaber declined to comment when contacted by Reuters on Thursday and FAB was not immediately available for comment.
#Kuwait sees oil output in zone shared with #SaudiArabia at 250,000 bpd by end 2020 - Reuters
Kuwait sees oil output in zone shared with Saudi Arabia at 250,000 bpd by end 2020 - Reuters:
Kuwaiti oil output in the Neutral Zone (NZ) it shares with Saudi Arabia is expected to reach 250,000 barrels per day (bpd) when production restarts at the end of this year, the country’s oil minister said on Thursday.
Kuwait and Saudi Arabia, both members of The Organization of the Petroleum Exporting Countries (OPEC), agreed last year to end a five-year dispute over the area, allowing production to resume at two jointly-run oilfields that can pump up to 0.5% of the world’s oil supply.
“Signing the Memorandum of Understanding means the return of production of 250,000 bpd...before the end of 2020,” Kuwait oil minister Khaled al-Fadhel, said in a parliament session.
Kuwait and Saudi Arabia halted production at the Khafji and Wafra fields on the back of the dispute. Their combined output before the shutdown was 500,000 bpd.
Kuwaiti oil output in the Neutral Zone (NZ) it shares with Saudi Arabia is expected to reach 250,000 barrels per day (bpd) when production restarts at the end of this year, the country’s oil minister said on Thursday.
Kuwait and Saudi Arabia, both members of The Organization of the Petroleum Exporting Countries (OPEC), agreed last year to end a five-year dispute over the area, allowing production to resume at two jointly-run oilfields that can pump up to 0.5% of the world’s oil supply.
“Signing the Memorandum of Understanding means the return of production of 250,000 bpd...before the end of 2020,” Kuwait oil minister Khaled al-Fadhel, said in a parliament session.
Kuwait and Saudi Arabia halted production at the Khafji and Wafra fields on the back of the dispute. Their combined output before the shutdown was 500,000 bpd.
Oil slips as focus shifts from Iran tensions to U.S. crude stocks - Reuters
Oil slips as focus shifts from Iran tensions to U.S. crude stocks - Reuters:
Oil prices retreated further on Thursday after sharp losses in the previous session, as the market shifted its focused towards rising U.S. crude stocks and away from fears of an imminent escalation of conflict between the United States and Iran.
Broadly, prices were moving back towards where they stood before the Jan. 3 U.S. drone strike that killed a top Iranian general, prompting an Iranian rocket attack on Iraqi airbases hosting U.S. forces. These events had pushed crude to its highest in four months.
After a 4.1% fall on Wednesday, Brent crude futures were down 39 cents at $65.05 a barrel at 1447 GMT, with the downward move accelerating once U.S. markets woke up. West Texas Intermediate was down 37 cents at $59.24 after sliding nearly 5% the previous day.
Oil prices retreated further on Thursday after sharp losses in the previous session, as the market shifted its focused towards rising U.S. crude stocks and away from fears of an imminent escalation of conflict between the United States and Iran.
Broadly, prices were moving back towards where they stood before the Jan. 3 U.S. drone strike that killed a top Iranian general, prompting an Iranian rocket attack on Iraqi airbases hosting U.S. forces. These events had pushed crude to its highest in four months.
After a 4.1% fall on Wednesday, Brent crude futures were down 39 cents at $65.05 a barrel at 1447 GMT, with the downward move accelerating once U.S. markets woke up. West Texas Intermediate was down 37 cents at $59.24 after sliding nearly 5% the previous day.
MIDEAST STOCKS- #Saudi outshines as Gulf rebounds on receding Mideast tensions - Reuters
MIDEAST STOCKS-Saudi outshines as Gulf rebounds on receding Mideast tensions - Reuters:
Middle Eastern stock markets rebounded on
Thursday, with Saudi outperforming the region, as investors
repositioned themselves on signs of no further escalation
between Tehran and Washington.
U.S. President Donald Trump responded to an Iranian attack
on U.S. forces with sanctions, not violence. On Wednesday, Iran
fired missiles at military bases housing U.S. troops in Iraq in
retaliation for a U.S. drone strike that killed an Iranian
general.
Saudi Arabia's benchmark index advanced 2.7%, its
biggest intraday gain since Oct. 2018. Al Rajhi Bank
leapt 2.3%, while state-owned Saudi Aramco climbed
2.3% to 35 riyals, snapping four straight days of losses.
897.2 million riyals ($239.19 million) worth of Aramco
shares were traded by the close, with around 25.8 million shares
exchanging hands, Refinitiv data showed.
Dubai's main share index rebounded 1.3%, a day
after it fell 1.2%, led by gains at financial shares. Dubai
Islamic Bank, the United Arab Emirates largest
sharia-compliant lender, rose 1.3% and Emirates NBD Bank
was up 1.2%.
Middle Eastern stock markets rebounded on
Thursday, with Saudi outperforming the region, as investors
repositioned themselves on signs of no further escalation
between Tehran and Washington.
U.S. President Donald Trump responded to an Iranian attack
on U.S. forces with sanctions, not violence. On Wednesday, Iran
fired missiles at military bases housing U.S. troops in Iraq in
retaliation for a U.S. drone strike that killed an Iranian
general.
Saudi Arabia's benchmark index advanced 2.7%, its
biggest intraday gain since Oct. 2018. Al Rajhi Bank
leapt 2.3%, while state-owned Saudi Aramco climbed
2.3% to 35 riyals, snapping four straight days of losses.
897.2 million riyals ($239.19 million) worth of Aramco
shares were traded by the close, with around 25.8 million shares
exchanging hands, Refinitiv data showed.
Dubai's main share index rebounded 1.3%, a day
after it fell 1.2%, led by gains at financial shares. Dubai
Islamic Bank, the United Arab Emirates largest
sharia-compliant lender, rose 1.3% and Emirates NBD Bank
was up 1.2%.
Gulf’s long-serving ruler is ailing at a bad time – Breakingviews #Oman
Gulf’s long-serving ruler is ailing at a bad time – Breakingviews:
Qaboos bin Said has picked an unfortunate time to get seriously ill. The health of the 79-year-old sultan of Oman, in power for the last 50 years and one of only three incumbents in the last century, was the subject of intense speculation over recent weeks. Now that U.S. President Donald Trump has started 2020 by dramatically escalating his stand off with Iran, Qaboos’ passing would remove a supporting strut for the Middle East’s already fragile stability.
The sultan’s iconic status in the region is partly down to his longevity. That has been helped by economic growth that has boosted real GDP per capita by 70% since he took over, according to World Bank data. A striking feature of his reign has been a capacity to stay on cordial terms with counterparties as antagonistic as Saudi Arabia, Iran and Israel. Despite a 2017 blockade of Qatar by Saudi, the United Arab Emirates and other allies, Oman has continued to trade with Doha. When Washington and Tehran were negotiating their now-defunct nuclear deal, Oman also played an important intermediary role.
As and when Qaboos passes away, his stature means Muscat street markets will continue to do a brisk trade in brightly coloured T-shirts bearing his likeness. But ever since Trump authorised a New Year’s drone strike that killed top Iranian general Qassem Soleimani, the region has been on edge. If the sultan were to die right now, his realm might switch from being a salver of tensions to an amplifier.
Qaboos bin Said has picked an unfortunate time to get seriously ill. The health of the 79-year-old sultan of Oman, in power for the last 50 years and one of only three incumbents in the last century, was the subject of intense speculation over recent weeks. Now that U.S. President Donald Trump has started 2020 by dramatically escalating his stand off with Iran, Qaboos’ passing would remove a supporting strut for the Middle East’s already fragile stability.
The sultan’s iconic status in the region is partly down to his longevity. That has been helped by economic growth that has boosted real GDP per capita by 70% since he took over, according to World Bank data. A striking feature of his reign has been a capacity to stay on cordial terms with counterparties as antagonistic as Saudi Arabia, Iran and Israel. Despite a 2017 blockade of Qatar by Saudi, the United Arab Emirates and other allies, Oman has continued to trade with Doha. When Washington and Tehran were negotiating their now-defunct nuclear deal, Oman also played an important intermediary role.
As and when Qaboos passes away, his stature means Muscat street markets will continue to do a brisk trade in brightly coloured T-shirts bearing his likeness. But ever since Trump authorised a New Year’s drone strike that killed top Iranian general Qassem Soleimani, the region has been on edge. If the sultan were to die right now, his realm might switch from being a salver of tensions to an amplifier.
Gold Is Nearly Back Where It Started Before Iran General’s Death - Bloomberg
Gold Is Nearly Back Where It Started Before Iran General’s Death - Bloomberg:
Gold dropped for a second day as the U.S. and Iran stepped back from a deeper military conflict, blunting the appeal of haven assets.
The metal is heading back toward levels it was trading at before the U.S. killed top Iranian general Qassem Soleimani last week. President Donald Trump’s latest remarks suggested tensions were easing and stocks rose across Europe and Asia.
“Job done,” Rhona O’Connell, head of market analysis for EMEA and Asia at INTL FCStone, said in a note. “The price is now back to where we started.”
Gold dropped for a second day as the U.S. and Iran stepped back from a deeper military conflict, blunting the appeal of haven assets.
The metal is heading back toward levels it was trading at before the U.S. killed top Iranian general Qassem Soleimani last week. President Donald Trump’s latest remarks suggested tensions were easing and stocks rose across Europe and Asia.
“Job done,” Rhona O’Connell, head of market analysis for EMEA and Asia at INTL FCStone, said in a note. “The price is now back to where we started.”
Spot gold fell as much as 1% to $1,540.33 an ounce, only $11 higher than the closing price the day before the U.S. strike. The metal is poised for the first back-to-back loss since Nov. 25.
Tanker owners face insurance headache as Mideast war risk haunts shipping trade - Reuters
Tanker owners face insurance headache as Mideast war risk haunts shipping trade - Reuters:
Even as the United States and Iran appear to signal a keenness to avoid further conflict, oil and gas shipowners are bracing to pay a price for the war of words that culminated in rocket strikes in Iraq over the last week - higher insurance bills.
According to industry sources, payments known as war risk premiums for tankers shuttling through the Strait of Hormuz could rise significantly, adding hundreds of thousands of dollars to shipping costs in some cases that will ultimately be passed on to fuel buyers - mostly in Asia.
About 20% of the world’s crude oil supply and a quarter of the global supply of liquefied natural gas (LNG) are transported on tankers through the Strait of Hormuz, a narrow passage between the Gulf and the Indian Ocean. Saudi Arabia is the world’s biggest crude oil exporter, while Qatar is the top LNG exporter.
“We are obviously concerned with regard to the tension around the wider (Gulf) area,” said Svein A Ringbakken, managing director of Norwegian ship insurer Den Norske Krigsforsikring for Skib (DNK) told Reuters. “Ships’ transits in these areas have already for some time been subject to additional war risks insurance premiums which may increase in light of the recent developments.”
Even as the United States and Iran appear to signal a keenness to avoid further conflict, oil and gas shipowners are bracing to pay a price for the war of words that culminated in rocket strikes in Iraq over the last week - higher insurance bills.
According to industry sources, payments known as war risk premiums for tankers shuttling through the Strait of Hormuz could rise significantly, adding hundreds of thousands of dollars to shipping costs in some cases that will ultimately be passed on to fuel buyers - mostly in Asia.
About 20% of the world’s crude oil supply and a quarter of the global supply of liquefied natural gas (LNG) are transported on tankers through the Strait of Hormuz, a narrow passage between the Gulf and the Indian Ocean. Saudi Arabia is the world’s biggest crude oil exporter, while Qatar is the top LNG exporter.
“We are obviously concerned with regard to the tension around the wider (Gulf) area,” said Svein A Ringbakken, managing director of Norwegian ship insurer Den Norske Krigsforsikring for Skib (DNK) told Reuters. “Ships’ transits in these areas have already for some time been subject to additional war risks insurance premiums which may increase in light of the recent developments.”
#Dubai's real estate market showing signs of recovery, say experts - Arabianbusiness
Dubai's real estate market showing signs of recovery, say experts - Arabianbusiness:
Dubai’s real estate sector may be showing early signs of a recovery, but the emirate still has a way to go to hit the figures last seen pre-December 2014 when the price of oil tumbled, according to industry experts.
Statistics released this week by Data Finder, the real estate insights and data platform under the Property Finder Group, revealed 5,051 sales were recorded with the Dubai Land Department (DLD) in November, hitting an 11-year high on a monthly basis.
This eclipsed the 4,774 overall property sales registered in October and the 4,007 transactions recorded in September – with a total of 13,832 transactions over the three-month timeframe.
Taimur Khan, associate partner, Development Consultancy and Research at Knight Frank Middle East told Arabian Business Dubai’s residential market is “showing very early signs of recovery”. He said transaction volumes in 2019 increased by 22 percent compared to 2018, while mainstream prices fell by 5.9 percent in the year to December 2019, down from an 8.6 percent decline witness over the same period the previous year.
Dubai’s real estate sector may be showing early signs of a recovery, but the emirate still has a way to go to hit the figures last seen pre-December 2014 when the price of oil tumbled, according to industry experts.
Statistics released this week by Data Finder, the real estate insights and data platform under the Property Finder Group, revealed 5,051 sales were recorded with the Dubai Land Department (DLD) in November, hitting an 11-year high on a monthly basis.
This eclipsed the 4,774 overall property sales registered in October and the 4,007 transactions recorded in September – with a total of 13,832 transactions over the three-month timeframe.
Taimur Khan, associate partner, Development Consultancy and Research at Knight Frank Middle East told Arabian Business Dubai’s residential market is “showing very early signs of recovery”. He said transaction volumes in 2019 increased by 22 percent compared to 2018, while mainstream prices fell by 5.9 percent in the year to December 2019, down from an 8.6 percent decline witness over the same period the previous year.
Oil edges higher after previous day's plunge - Reuters
Oil edges higher after previous day's plunge - Reuters:
Oil prices edged higher on Thursday, clawing back some of the sharp losses made in the previous session on the back of easing fears of an escalation in the conflict between the United States and Iran and swelling U.S. crude stocks.
Prices are now back at levels seen before a U.S. drone strike on Jan. 3 that killed a top Iranian general and a rocket attack by Iran on Iraqi airbases hosting U.S. forces, which sent crude to its highest in four months.
Brent crude futures were up 46 cents at $65.90 a barrel by 0917 GMT after a 4.1% fall on Wednesday. West Texas Intermediate futures were up 50 cents to $60.11 a barrel after falling nearly 5% a day earlier.
In comments reported by Iran’s Tasnim news agency, a Revolutionary Guards commander said Iran would take “harsher revenge soon” after Tehran launched missile attacks on U.S. targets in Iraq in retaliation for last week’s U.S. killing of an Iranian general.
Oil prices edged higher on Thursday, clawing back some of the sharp losses made in the previous session on the back of easing fears of an escalation in the conflict between the United States and Iran and swelling U.S. crude stocks.
Prices are now back at levels seen before a U.S. drone strike on Jan. 3 that killed a top Iranian general and a rocket attack by Iran on Iraqi airbases hosting U.S. forces, which sent crude to its highest in four months.
Brent crude futures were up 46 cents at $65.90 a barrel by 0917 GMT after a 4.1% fall on Wednesday. West Texas Intermediate futures were up 50 cents to $60.11 a barrel after falling nearly 5% a day earlier.
In comments reported by Iran’s Tasnim news agency, a Revolutionary Guards commander said Iran would take “harsher revenge soon” after Tehran launched missile attacks on U.S. targets in Iraq in retaliation for last week’s U.S. killing of an Iranian general.
GCC sovereigns' 2020 outlook is negative, says Moody's | ZAWYA MENA Edition
GCC sovereigns' 2020 outlook is negative, says Moody's | ZAWYA MENA Edition:
Moody’s Investors service said in a report that the outlook for sovereign creditworthiness in the Gulf Cooperation Council (GCC) in 2020 is negative.
The negative outlook reflects slow progress on fiscal reforms at a time of moderate oil prices, weak growth and higher geopolitical risk, the ratings agency said.
"The pace of fiscal consolidation will remain slow in the GCC in 2020 and fiscal strength will continue to erode in the absence of significant new fiscal measures and reforms," said Alexander Perjessy, a Moody's Vice President - Senior Analyst.
"This will be exacerbated by existing commitments to limit oil production, which will reduce government revenue," Perjessy added.
Moody’s Investors service said in a report that the outlook for sovereign creditworthiness in the Gulf Cooperation Council (GCC) in 2020 is negative.
The negative outlook reflects slow progress on fiscal reforms at a time of moderate oil prices, weak growth and higher geopolitical risk, the ratings agency said.
"The pace of fiscal consolidation will remain slow in the GCC in 2020 and fiscal strength will continue to erode in the absence of significant new fiscal measures and reforms," said Alexander Perjessy, a Moody's Vice President - Senior Analyst.
"This will be exacerbated by existing commitments to limit oil production, which will reduce government revenue," Perjessy added.
Gulf stocks rise on hopes of easing of U.S.-Iran tensions, Aramco rebounds | Nasdaq
Gulf stocks rise on hopes of easing of U.S.-Iran tensions, Aramco rebounds | Nasdaq:
Gulf stocks were trading higher in early trade on Thursday, led by a 1.7% surge on the main Saudi index, on signs that tensions between the United States and Iran may be easing.
Saudi Aramco 2222.SE rose 0.8% to 34.50 riyals ($9.20), rebounding from Wednesday when it hit an intraday low of 34 riyals, its lowest level since the stock began trading on December 11 after the world's biggest initial public offering.
U.S. President Donald Trump on Wednesday backed away from days of angry rhetoric against Iran as the two countries tried to defuse a crisis over the U.S. killing of Iranian military commander Qassem Soleimani.
"The de-escalation between the U.S. and Iran should deliver some relief for Saudi Aramco shares, but the possibility of attacks on Saudi energy facilities still remains," said Edward Moya, senior market analyst at online broker OANDA.
"Geopolitical tensions in the Middle East are not completely going away anytime soon and we could see that still weigh on Aramco shares."
The Dubai index .DFMGIwas up 1.4%, helped by a 2% gain in Emaar Properties EMAR.DUand Kuwait index .BKPclimbed 1.5%, as Kuwait Finance HouseKFH.KW surged 2.7%.
Gulf stocks were trading higher in early trade on Thursday, led by a 1.7% surge on the main Saudi index, on signs that tensions between the United States and Iran may be easing.
Saudi Aramco 2222.SE rose 0.8% to 34.50 riyals ($9.20), rebounding from Wednesday when it hit an intraday low of 34 riyals, its lowest level since the stock began trading on December 11 after the world's biggest initial public offering.
U.S. President Donald Trump on Wednesday backed away from days of angry rhetoric against Iran as the two countries tried to defuse a crisis over the U.S. killing of Iranian military commander Qassem Soleimani.
"The de-escalation between the U.S. and Iran should deliver some relief for Saudi Aramco shares, but the possibility of attacks on Saudi energy facilities still remains," said Edward Moya, senior market analyst at online broker OANDA.
"Geopolitical tensions in the Middle East are not completely going away anytime soon and we could see that still weigh on Aramco shares."
The Dubai index .DFMGIwas up 1.4%, helped by a 2% gain in Emaar Properties EMAR.DUand Kuwait index .BKPclimbed 1.5%, as Kuwait Finance HouseKFH.KW surged 2.7%.