Oil falls 2% as specter of China virus threatens fuel demand - Reuters:
Oil prices fell 2% on Thursday on concern that the spread of a virus from China could lower fuel demand if it stunts economic growth, but losses were limited by a drawdown in U.S. crude inventories.
Brent crude LCOc1 futures fell $1.17, or 1.9%, to settle at $62.04 a barrel. The session low was $61.25, the lowest since early December.
U.S. West Texas Intermediate (WTI) crude CLc1 ended down $1.15, or 2%, at $55.59 a barrel, after hitting $54.77, its lowest since November.
Two Chinese cities were put in lockdown on Thursday as health authorities around the world scrambled to prevent a global pandemic. The coronavirus outbreak has killed 18 people and infected nearly 630.
The potential for a pandemic has stirred memories of the Severe Acute Respiratory Syndrome (SARS) outbreak in 2002-03, which also started in China and caused a slump in travel.
Thursday 23 January 2020
Australia's CIMIC expects to take $1.8bn hit on Middle East exit - The National
Australia's CIMIC expects to take $1.8bn hit on Middle East exit - The National:
Australian contracting group Cimic is exiting the Middle East, a move which it says, could result in an A$1.8 billion (Dh4.5bn) hit to its bottom line.
The company, formerly known as Leighton Contracting, owned a minority stake in BIC Contracting, formerly known as Habtoor Leighton Group, since 2007, but is now in talks with a "shortlist of potential acquirers for all or part of BICC", the company said in a statement to the Australian stock exchange, where its share trade.
"In addition, in the context of an accelerated deterioration of local market conditions, BICC is engaging in confidential discussions with its lenders, creditors, clients and other stakeholders," Cimic said in its statement.
“After a thorough evaluation of all available options, Cimic has decided to exit the region and to focus its resources and capital allocation on growth opportunities in its main core markets and geographies."
Australian contracting group Cimic is exiting the Middle East, a move which it says, could result in an A$1.8 billion (Dh4.5bn) hit to its bottom line.
The company, formerly known as Leighton Contracting, owned a minority stake in BIC Contracting, formerly known as Habtoor Leighton Group, since 2007, but is now in talks with a "shortlist of potential acquirers for all or part of BICC", the company said in a statement to the Australian stock exchange, where its share trade.
"In addition, in the context of an accelerated deterioration of local market conditions, BICC is engaging in confidential discussions with its lenders, creditors, clients and other stakeholders," Cimic said in its statement.
“After a thorough evaluation of all available options, Cimic has decided to exit the region and to focus its resources and capital allocation on growth opportunities in its main core markets and geographies."
Gulf governments will rely less on bond markets this year - The National
Gulf governments will rely less on bond markets this year - The National:
Governments in the Gulf region will continue to tap debt capital markets this year, but their external financing needs are likely to be lower, according to the regional head of research and strategy at Japanese bank MUFG.
Sovereign issuance by Gulf governments is expected to reach around $31.9bn (Dh117.1bn) in funding to bridge budget deficits as they look to take advantage of a pause in interest rate hikes and the low cost of debt globally, said Ehsan Khoman, head of Middle East and North Africa research and strategy at MUFG. However, this is likely to be significantly lower than the amount issued last year.
Although MUFG did not give a comparative figure, a paper published by Kuwait Asset Management Company this month stated sovereign bond issuance from GCC countries increased 29 per cent last year, to $48.8bn. A further $29.8bn was also issued in sukuk, up 12 per cent on 2018.
Cumulative gross financing needs of the Gulf states will narrow in 2020 on the back of stability in oil prices at relatively higher levels and more prudent expenditure policies of regional governments, Mr Khoman said.
Governments in the Gulf region will continue to tap debt capital markets this year, but their external financing needs are likely to be lower, according to the regional head of research and strategy at Japanese bank MUFG.
Sovereign issuance by Gulf governments is expected to reach around $31.9bn (Dh117.1bn) in funding to bridge budget deficits as they look to take advantage of a pause in interest rate hikes and the low cost of debt globally, said Ehsan Khoman, head of Middle East and North Africa research and strategy at MUFG. However, this is likely to be significantly lower than the amount issued last year.
Although MUFG did not give a comparative figure, a paper published by Kuwait Asset Management Company this month stated sovereign bond issuance from GCC countries increased 29 per cent last year, to $48.8bn. A further $29.8bn was also issued in sukuk, up 12 per cent on 2018.
Cumulative gross financing needs of the Gulf states will narrow in 2020 on the back of stability in oil prices at relatively higher levels and more prudent expenditure policies of regional governments, Mr Khoman said.
#UAE cost of living: Consumer prices fall in 2019 | ZAWYA MENA Edition
UAE cost of living: Consumer prices fall in 2019 | ZAWYA MENA Edition:
The UAE’s consumer price index (CPI), which measures the costs of goods and services, has dropped 0.8 percent in 2019 from the previous year.
The continued decline in property rents and sales prices, and costs of water, electricity, fuel and gas, have kept UAE inflation in check.
According to the Statistics Centre, Abu Dhabi (SCAD), the largest contributor to the overall decrease in consumer prices in 2019 were the costs of housing, gas and utilities, which posted a decline of 3.7 percent.
Another contributing factor was transportation cost, which decreased by 5.3 percent in 2019 compared with the previous year.
The UAE’s consumer price index (CPI), which measures the costs of goods and services, has dropped 0.8 percent in 2019 from the previous year.
The continued decline in property rents and sales prices, and costs of water, electricity, fuel and gas, have kept UAE inflation in check.
According to the Statistics Centre, Abu Dhabi (SCAD), the largest contributor to the overall decrease in consumer prices in 2019 were the costs of housing, gas and utilities, which posted a decline of 3.7 percent.
Another contributing factor was transportation cost, which decreased by 5.3 percent in 2019 compared with the previous year.
Lebanon to seek up to $5bln in soft loans, prime minister rallies support - Reuters
Lebanon to seek up to $5bln in soft loans, prime minister rallies support - Reuters:
Lebanon’s new government must reassure international donors it is serious about reforms to tackle a financial crisis as it looks initially to secure up to $5 billion in soft loans for basic goods, its finance minister said on Thursday.
The government that took office on Tuesday faces an emergency in which banks have imposed controls, the Lebanese pound has weakened and protesters have turned to violence which a senior U.N. official described as “politically manipulated”.
“The entire international community has its eye on what this government will do,” Finance Minister Ghazi Wazni said in televised comments. “What is its programme, what are the reform steps, is it ready for support or no?”
Lebanon is looking to secure $4 billion to $5 billion in soft loans from international donors to finance purchases of wheat, fuel and medicines, The Daily Star newspaper had earlier quoted the minister as saying.
Lebanon’s new government must reassure international donors it is serious about reforms to tackle a financial crisis as it looks initially to secure up to $5 billion in soft loans for basic goods, its finance minister said on Thursday.
The government that took office on Tuesday faces an emergency in which banks have imposed controls, the Lebanese pound has weakened and protesters have turned to violence which a senior U.N. official described as “politically manipulated”.
“The entire international community has its eye on what this government will do,” Finance Minister Ghazi Wazni said in televised comments. “What is its programme, what are the reform steps, is it ready for support or no?”
Lebanon is looking to secure $4 billion to $5 billion in soft loans from international donors to finance purchases of wheat, fuel and medicines, The Daily Star newspaper had earlier quoted the minister as saying.
Iraq approves fifth round of gas exploration contracts in east - Reuters
Iraq approves fifth round of gas exploration contracts in east - Reuters:
Iraq has approved contracts in a fifth bidding round for gas exploration contracts the east of the country, the government said in a statement on Thursday.
The exploration deals in Diyala province are to develop fields that are expected to produce more than 750 million cubic feet of natural gas within 36 months.
Iraq, OPEC’s second-largest producer after Saudi Arabia, depends on oil sales for over 90 percent of its public budget and has been under pressure from the United States to reduce its reliance on gas imports from Iran.
The country flares much of its own gas, extracted alongside crude oil at its fields, because it lacks the facilities to process it into fuel and instead uses Iranian power imports to generate electricity.
Iraq has approved contracts in a fifth bidding round for gas exploration contracts the east of the country, the government said in a statement on Thursday.
The exploration deals in Diyala province are to develop fields that are expected to produce more than 750 million cubic feet of natural gas within 36 months.
Iraq, OPEC’s second-largest producer after Saudi Arabia, depends on oil sales for over 90 percent of its public budget and has been under pressure from the United States to reduce its reliance on gas imports from Iran.
The country flares much of its own gas, extracted alongside crude oil at its fields, because it lacks the facilities to process it into fuel and instead uses Iranian power imports to generate electricity.
Oil falls 3% as specter of China virus threatens fuel demand - Reuters
Oil falls 3% as specter of China virus threatens fuel demand - Reuters:
Oil prices fell 3% on Thursday on concern that the spread of a virus from China could lower fuel demand if it stunts economic growth, but losses were limited by a drawdown in U.S. crude inventories.
Brent crude LCOc1 futures fell $1.70, or 2.7%, to $61.51 a barrel by 1:03 p.m. EST (1803 GMT). The session low was $61.25 a barrel, lowest since early December.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $1.74, or 3.1%, to $55.00 a barrel. The session low was $54.77 a barrel, lowest since November.
Two Chinese cities were put in lockdown on Thursday as health authorities around the world scrambled to prevent a global pandemic. The coronavirus outbreak has killed 17 people and infected nearly 600.
Oil prices fell 3% on Thursday on concern that the spread of a virus from China could lower fuel demand if it stunts economic growth, but losses were limited by a drawdown in U.S. crude inventories.
Brent crude LCOc1 futures fell $1.70, or 2.7%, to $61.51 a barrel by 1:03 p.m. EST (1803 GMT). The session low was $61.25 a barrel, lowest since early December.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $1.74, or 3.1%, to $55.00 a barrel. The session low was $54.77 a barrel, lowest since November.
Two Chinese cities were put in lockdown on Thursday as health authorities around the world scrambled to prevent a global pandemic. The coronavirus outbreak has killed 17 people and infected nearly 600.
MIDEAST STOCKS-Major Gulf markets fall as virus fears weigh on global sentiment - Reuters
MIDEAST STOCKS-Major Gulf markets fall as virus fears weigh on global sentiment - Reuters:
Major stock markets in the Gulf ended
lower on Thursday, tracking weakness in global shares and oil
prices, as the spread of a new coronavirus in China soured
sentiment.
Beijing has locked down Wuhan, a city of 11 million people,
considered the epicentre of a new coronavirus outbreak that has
killed 17 people, infected nearly 600 and rattled financial
markets around the globe.
Fears that spread of the virus from China could lower fuel
demand if it stunts economic growth pushed oil prices down more
than 1% on Thursday.
Saudi Arabia's benchmark index fell 0.5%, pulled
lower by Saudi Telecom Company.
The telco dropped 4.7%, its biggest one-day fall since May,
after it reported fourth-quarter profit of 2.41 billion riyals
($642.48 million), down from 3.11 billion riyals a year earlier.
Major stock markets in the Gulf ended
lower on Thursday, tracking weakness in global shares and oil
prices, as the spread of a new coronavirus in China soured
sentiment.
Beijing has locked down Wuhan, a city of 11 million people,
considered the epicentre of a new coronavirus outbreak that has
killed 17 people, infected nearly 600 and rattled financial
markets around the globe.
Fears that spread of the virus from China could lower fuel
demand if it stunts economic growth pushed oil prices down more
than 1% on Thursday.
Saudi Arabia's benchmark index fell 0.5%, pulled
lower by Saudi Telecom Company.
The telco dropped 4.7%, its biggest one-day fall since May,
after it reported fourth-quarter profit of 2.41 billion riyals
($642.48 million), down from 3.11 billion riyals a year earlier.
#Dubai News: Turning to Veterans as Real Estate Slump Persists - Bloomberg
Dubai News: Turning to Veterans as Real Estate Slump Persists - Bloomberg:
Dubai is turning to two of its most trusted officials to steer its key companies through a drawn-out slowdown, a decade after they helped pull the business hub back from the brink of default.
Mohammed Al Shaibani, director general of the ruler’s court and head of Investment Corp. of Dubai -- the emirate’s main investment arm -- was named as chairman of palm-shaped island developer Nakheel PJSC, which was at the center of the debt crisis in 2009.
Al Shaibani’s appointment comes just weeks after Emirates Group Chairman Sheikh Ahmed bin Saeed Al Maktoum became temporary head of Dubai Holding LLC, the state conglomerate that manages about $35 billion of assets, and property developer Meraas Holding LLC.
The old guard is back as Dubai looks set to endure another year of falling property prices, weak demand and a retail sector that’s struggling. The emirate also faces the prospect of restructuring a chunk of $23 billion loans to government-related companies for a second time. Many of the city’s hopes rest on hosting the World Expo 2020 exhibition later this year, which is expected to spur economic growth to about 3.2%, after expanding just 2.1% in 2019.
Dubai is turning to two of its most trusted officials to steer its key companies through a drawn-out slowdown, a decade after they helped pull the business hub back from the brink of default.
Mohammed Al Shaibani, director general of the ruler’s court and head of Investment Corp. of Dubai -- the emirate’s main investment arm -- was named as chairman of palm-shaped island developer Nakheel PJSC, which was at the center of the debt crisis in 2009.
Al Shaibani’s appointment comes just weeks after Emirates Group Chairman Sheikh Ahmed bin Saeed Al Maktoum became temporary head of Dubai Holding LLC, the state conglomerate that manages about $35 billion of assets, and property developer Meraas Holding LLC.
The old guard is back as Dubai looks set to endure another year of falling property prices, weak demand and a retail sector that’s struggling. The emirate also faces the prospect of restructuring a chunk of $23 billion loans to government-related companies for a second time. Many of the city’s hopes rest on hosting the World Expo 2020 exhibition later this year, which is expected to spur economic growth to about 3.2%, after expanding just 2.1% in 2019.
#Dubai Islamic Bank completes Noor Bank acquisition | ZAWYA MENA Edition
Dubai Islamic Bank completes Noor Bank acquisition | ZAWYA MENA Edition:
Dubai Islamic Bank (DIB) has completed the acquisition of Noor Bank after securing the necessary regulatory approvals.
The acquisition is set to create one of the largest Islamic banks worldwide with more than 275 billion dirhams worth of assets ($75 billion), DIB said in a statement on Dubai Financial Market (DFM).
The transaction has been structured through share swap, with DIB issuing 651,159,198 new shares to take its issued share capital to 7,240,744,377 shares. Noor Bank’s operations will be completely integrated into DIB.
“In line with our strategy, the completion of this deal means that we remain ideally positioned to expand our footprint in the region and beyond, in addition to supporting the UAE’s vision for growth and prosperity,” Mohammed Ibrahim Al Shaibani, Chairman of Dubai Islamic Bank said in the bourse filing.
Dubai Islamic Bank (DIB) has completed the acquisition of Noor Bank after securing the necessary regulatory approvals.
The acquisition is set to create one of the largest Islamic banks worldwide with more than 275 billion dirhams worth of assets ($75 billion), DIB said in a statement on Dubai Financial Market (DFM).
The transaction has been structured through share swap, with DIB issuing 651,159,198 new shares to take its issued share capital to 7,240,744,377 shares. Noor Bank’s operations will be completely integrated into DIB.
“In line with our strategy, the completion of this deal means that we remain ideally positioned to expand our footprint in the region and beyond, in addition to supporting the UAE’s vision for growth and prosperity,” Mohammed Ibrahim Al Shaibani, Chairman of Dubai Islamic Bank said in the bourse filing.
#UAE posts $18 bln surplus in first nine months of 2019 - WAM - Reuters
UAE posts $18 bln surplus in first nine months of 2019 - WAM - Reuters:
The United Arab Emirates (UAE) posted a surplus of 66.3 billion dirhams ($18.05 billion) in the first nine months of 2019, state news agency WAM said on Thursday, citing government data.
The surplus was slightly higher than in 2018, when the UAE posted a surplus of 66 billion during the same nine-month period.
Revenues amounted to 359.2 billion dirhams and expensed totalled 292.9 billion, the agency said. Expenses were 4.2% higher than in the first nine months of 2018.
The United Arab Emirates (UAE) posted a surplus of 66.3 billion dirhams ($18.05 billion) in the first nine months of 2019, state news agency WAM said on Thursday, citing government data.
The surplus was slightly higher than in 2018, when the UAE posted a surplus of 66 billion during the same nine-month period.
Revenues amounted to 359.2 billion dirhams and expensed totalled 292.9 billion, the agency said. Expenses were 4.2% higher than in the first nine months of 2018.
Oil skids as specter of China virus looms over fuel demand, economy - Reuters
Oil skids as specter of China virus looms over fuel demand, economy - Reuters:
Oil prices fell to their lowest in seven weeks on Thursday, sliding more than 1% on concern that the spread of a respiratory virus from China may lower fuel demand if it stunts economic growth in an echo of the SARS epidemic nearly 20 years ago.
Brent crude futures LCOc1 were down 87 cents, or 1.4%, to $62.34 a barrel by 0733 GMT, and earlier dropped to the lowest since Dec. 4 after falling 2.1% the previous session.
U.S. West Texas Intermediate futures CLc1 fell 94 cents, or 1.6%, to $55.80 a barrel after earlier falling to the lowest since Dec. 3. The contract declined 2.7% on Wednesday.
The new coronavirus has killed 17 people through respiratory illness since it emerged late last year in Wuhan, a city of 11 million people in central China.
Oil prices fell to their lowest in seven weeks on Thursday, sliding more than 1% on concern that the spread of a respiratory virus from China may lower fuel demand if it stunts economic growth in an echo of the SARS epidemic nearly 20 years ago.
Brent crude futures LCOc1 were down 87 cents, or 1.4%, to $62.34 a barrel by 0733 GMT, and earlier dropped to the lowest since Dec. 4 after falling 2.1% the previous session.
U.S. West Texas Intermediate futures CLc1 fell 94 cents, or 1.6%, to $55.80 a barrel after earlier falling to the lowest since Dec. 3. The contract declined 2.7% on Wednesday.
The new coronavirus has killed 17 people through respiratory illness since it emerged late last year in Wuhan, a city of 11 million people in central China.
MIDEAST STOCKS-Major Gulf markets fall, following global shares lower | Nasdaq
MIDEAST STOCKS-Major Gulf markets fall, following global shares lower | Nasdaq:
Major Gulf stock markets retreated on Thursday, mirroring a decline in global shares and oil prices, as investors remained anxious about the spread of a new flu-like virus in China.
Deaths from China's new coronavirus rose to 17 on Wednesday, with more than 540 cases confirmed, leading Wuhan, the city at the centre of the outbreak, to close transportation networks and urge citizens not to leave as fears rose of the contagion spreading.
Brent crude futures LCOc1 were down 82, or 1.3%, to $62.39 a barrel by 0400 GMT, and earlier dropped to the lowest since Dec. 4, after falling 2.1% the previous session.
Saudi Arabia's benchmark index .TASI dropped 0.7%, led by a 3.2% slide in Saudi Telecom 7010.SE , a day after it reported a 22% plunge in fourth-quarter net profit.
Major Gulf stock markets retreated on Thursday, mirroring a decline in global shares and oil prices, as investors remained anxious about the spread of a new flu-like virus in China.
Deaths from China's new coronavirus rose to 17 on Wednesday, with more than 540 cases confirmed, leading Wuhan, the city at the centre of the outbreak, to close transportation networks and urge citizens not to leave as fears rose of the contagion spreading.
Brent crude futures LCOc1 were down 82, or 1.3%, to $62.39 a barrel by 0400 GMT, and earlier dropped to the lowest since Dec. 4, after falling 2.1% the previous session.
Saudi Arabia's benchmark index .TASI dropped 0.7%, led by a 3.2% slide in Saudi Telecom 7010.SE , a day after it reported a 22% plunge in fourth-quarter net profit.
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