Oil prices rise about 1%, up from 13-month low as virus cases slow - Reuters:
Oil prices rose about 1% on Tuesday, up from 13-month lows as the number of new coronavirus cases slowed in China, easing some concern over the potential for lengthy oil demand destruction.
The death toll surpassed 1,000 on Tuesday, though the number of new confirmed cases fell. The epidemic may be over by April, said the Chinese government’s top medical adviser on the outbreak.
Brent crude LCOc1 settled at $54.01 a barrel, up 74 cents, or 1.4%, having dropped on Monday to its lowest since January last year at $53.11. U.S. West Texas Intermediate CLc1 crude settled at $49.94 a barrel, up 37 cents, or 0.8%.
“The market is trying to bottom, to be optimistic and look beyond the virus,” said Phil Flynn, an analyst at Price Futures Group in Chicago.
Tuesday, 11 February 2020
KKR rules out bid for hospital operator NMC Health | Financial Times
KKR rules out bid for hospital operator NMC Health | Financial Times:
US private equity group KKR made a swift and strongly worded retreat after the embattled FTSE 100 hospital operator NMC Health said the buyout group was in the early stages of considering a bid for it.
KKR published a statement on Tuesday saying it “has not made a proposal nor discussed with NMC the terms of any possible offer” and “does not intend to make an offer” for the company.
NMC shares rallied sharply on Monday after it said it had received “highly preliminary approaches” from KKR and another group, GK Investment. In Tuesday trading, after KKR’s response, NMC shares dropped 16 per cent to as low as 761p, giving up some of the previous day’s gain.
NMC’s announcement about KKR’s interest was made alongside a separate statement that it had asked its founder BR Shetty and another top shareholder, Khalifa al-Muhairi, to step back from the board as the size of their stakes in the company may have been incorrectly reported.
US private equity group KKR made a swift and strongly worded retreat after the embattled FTSE 100 hospital operator NMC Health said the buyout group was in the early stages of considering a bid for it.
KKR published a statement on Tuesday saying it “has not made a proposal nor discussed with NMC the terms of any possible offer” and “does not intend to make an offer” for the company.
NMC shares rallied sharply on Monday after it said it had received “highly preliminary approaches” from KKR and another group, GK Investment. In Tuesday trading, after KKR’s response, NMC shares dropped 16 per cent to as low as 761p, giving up some of the previous day’s gain.
NMC’s announcement about KKR’s interest was made alongside a separate statement that it had asked its founder BR Shetty and another top shareholder, Khalifa al-Muhairi, to step back from the board as the size of their stakes in the company may have been incorrectly reported.
Oil Holds Gains While Russia Ponders OPEC Output-Cut Proposal - Bloomberg
Oil Holds Gains While Russia Ponders OPEC Output-Cut Proposal - Bloomberg:
Oil advanced from a one-year low even as Russia kept OPEC+ waiting on a decision about whether to cut production in response to the coronavirus outbreak.
Futures climbed as much as 2.3% in New York on Tuesday, following equities higher. Energy Minister Alexander Novak said that Moscow is “studying” the OPEC+ output-cut plan after days of hesitation, calling the situation “extremely unstable.” Novak is set to meet with Russia’s oil companies on Wednesday.
“We’re seeing some optimism given Russia is still looking at the proposal,” said Bob Yawger, futures director at Mizuho Securities USA. “They’re not saying no outright."
Oil advanced from a one-year low even as Russia kept OPEC+ waiting on a decision about whether to cut production in response to the coronavirus outbreak.
Futures climbed as much as 2.3% in New York on Tuesday, following equities higher. Energy Minister Alexander Novak said that Moscow is “studying” the OPEC+ output-cut plan after days of hesitation, calling the situation “extremely unstable.” Novak is set to meet with Russia’s oil companies on Wednesday.
“We’re seeing some optimism given Russia is still looking at the proposal,” said Bob Yawger, futures director at Mizuho Securities USA. “They’re not saying no outright."
Lebanon Eurobonds: Weighs IMF Help on $1.2 Billion Payment - Bloomberg
Lebanon Eurobonds: Weighs IMF Help on $1.2 Billion Payment - Bloomberg:
Lebanon needs the help of the International Monetary Fund to draft a rescue plan and decide whether to repay its $1.2 billion Eurobond maturing next month, a local newspaper cited a veteran politician and member of the ruling coalition as saying.
With the country facing its worst financial crisis in decades after months of protests, parliament Speaker Nabih Berri said Lebanon should form a task force comprising the premier, ministers of economy and finance as well as legal and financial experts, Annahar newspaper reported. The committee would begin work in parallel to making a request to the IMF.
“We need to send a message to the world, perhaps to the Americans in particular -- given that they’re the most influential and active factor in the International Monetary Fund -- stipulating that Lebanon needs the fund’s technical help for a rescue plan,” the newspaper cited Berri saying.
Lebanon needs the help of the International Monetary Fund to draft a rescue plan and decide whether to repay its $1.2 billion Eurobond maturing next month, a local newspaper cited a veteran politician and member of the ruling coalition as saying.
With the country facing its worst financial crisis in decades after months of protests, parliament Speaker Nabih Berri said Lebanon should form a task force comprising the premier, ministers of economy and finance as well as legal and financial experts, Annahar newspaper reported. The committee would begin work in parallel to making a request to the IMF.
“We need to send a message to the world, perhaps to the Americans in particular -- given that they’re the most influential and active factor in the International Monetary Fund -- stipulating that Lebanon needs the fund’s technical help for a rescue plan,” the newspaper cited Berri saying.
#Qatar Airways, Aga Khan Decide to Liquidate Troubled Air Italy - Bloomberg
Qatar Airways, Aga Khan Decide to Liquidate Troubled Air Italy - Bloomberg:
Air Italy investors Qatar Airways and the Aga Khan decided to put the struggling carrier into liquidation, citing “persistent and structural conditions” in the market.
Shareholders of the two-year-old airline acted unanimously and the Italian carrier will guarantee flights scheduled through Feb. 25 by other operators, Air Italy said Tuesday in a statement.
Qatar Airways said separately it was prepared “to do its part to support the turnaround and the growth of the airline,” but that would have been possible only with the commitment of all shareholders.
Air Italy investors Qatar Airways and the Aga Khan decided to put the struggling carrier into liquidation, citing “persistent and structural conditions” in the market.
Shareholders of the two-year-old airline acted unanimously and the Italian carrier will guarantee flights scheduled through Feb. 25 by other operators, Air Italy said Tuesday in a statement.
Qatar Airways said separately it was prepared “to do its part to support the turnaround and the growth of the airline,” but that would have been possible only with the commitment of all shareholders.
#Dubai telecoms giant posts 9% rise in 2019 profit to $470m - Arabianbusiness
Dubai telecoms giant posts 9% rise in 2019 profit to $470m - Arabianbusiness:
Emirates Integrated Telecommunications Company, parent of telco Du, on Tuesday reported a 9.3 percent in its annual net profit for 2019 to AED1.73 billion ($470 million).
The telecoms operator also announced an acceleration in the deployment of its investment plan, particularly in connection with 5G roll-out and fibre network expansion with annual capital expenditures reaching AED1.5 billion.
The board recommended a dividend distribution of 34 fils per share out of which 13 fils per share have been already paid in August as an interim
dividend.
EITC also reported annual revenues of AED12.59 billion, showing an erosion of 6.2 percent as growth of fixed and ICT revenues absorbed partially the pressure on mobile prepaid revenues adversely impacted by pricing, competition and the negative impact on the base of the SIM registration disconnections.
Emirates Integrated Telecommunications Company, parent of telco Du, on Tuesday reported a 9.3 percent in its annual net profit for 2019 to AED1.73 billion ($470 million).
The telecoms operator also announced an acceleration in the deployment of its investment plan, particularly in connection with 5G roll-out and fibre network expansion with annual capital expenditures reaching AED1.5 billion.
The board recommended a dividend distribution of 34 fils per share out of which 13 fils per share have been already paid in August as an interim
dividend.
EITC also reported annual revenues of AED12.59 billion, showing an erosion of 6.2 percent as growth of fixed and ICT revenues absorbed partially the pressure on mobile prepaid revenues adversely impacted by pricing, competition and the negative impact on the base of the SIM registration disconnections.
#SaudiArabia wary of costly slow response as virus knocks oil: sources - Reuters
Saudi Arabia wary of costly slow response as virus knocks oil: sources - Reuters:
Saudi Arabia wants global oil producers to agree a quick oil supply cut as China’s coronavirus knocks demand, aware that delays in the past led to costly price collapses, sources familiar with the kingdom’s thinking have told Reuters.
Riyadh has been working to convince OPEC producers and allies led by Russia, a group known as OPEC+, that they need to act sooner rather than later.
It sees a potentially bigger impact on oil demand this time than the 2002-03 Severe Acute Respiratory Syndrome (SARS) epidemic due to China’s now far larger role in the global economy, the sources said.
Oil prices have fallen by more than $11 a barrel this year to $54, alarming producers, as the coronavirus, which has killed more than 1,000 in China, spreads.
Saudi Arabia wants global oil producers to agree a quick oil supply cut as China’s coronavirus knocks demand, aware that delays in the past led to costly price collapses, sources familiar with the kingdom’s thinking have told Reuters.
Riyadh has been working to convince OPEC producers and allies led by Russia, a group known as OPEC+, that they need to act sooner rather than later.
It sees a potentially bigger impact on oil demand this time than the 2002-03 Severe Acute Respiratory Syndrome (SARS) epidemic due to China’s now far larger role in the global economy, the sources said.
Oil prices have fallen by more than $11 a barrel this year to $54, alarming producers, as the coronavirus, which has killed more than 1,000 in China, spreads.
#Dubai's oversupplied property sector to add more new homes in 2020 - Reuters
Dubai's oversupplied property sector to add more new homes in 2020 - Reuters:
Dubai is expected to this year see the biggest number of new homes completed in more than a decade, adding to pressure on a once-booming but now struggling property sector already weakened by excess supply.
The Middle East financial hub, where the private sector shrank in January for the first time since 2009, has faced a slowing real estate market for most of the past decade.
A total of 62,500 residential units are scheduled to be completed this year, Knight Frank said on Tuesday, adding that would be the biggest number of new units since 2008 even though not all were ultimately expected to be finished.
“In the short to medium term this influx of supply will continue to put pressure on prices and rents,” Knight Frank said in a report.
Dubai is expected to this year see the biggest number of new homes completed in more than a decade, adding to pressure on a once-booming but now struggling property sector already weakened by excess supply.
The Middle East financial hub, where the private sector shrank in January for the first time since 2009, has faced a slowing real estate market for most of the past decade.
A total of 62,500 residential units are scheduled to be completed this year, Knight Frank said on Tuesday, adding that would be the biggest number of new units since 2008 even though not all were ultimately expected to be finished.
“In the short to medium term this influx of supply will continue to put pressure on prices and rents,” Knight Frank said in a report.
Mubadala to significantly increase investment in life sciences, medical technology - Reuters
Mubadala to significantly increase investment in life sciences, medical technology - Reuters:
Abu Dhabi state investor Mubadala will significantly increase investment in life sciences and medical technology as it sees the healthcare sector as profitable, its group chief executive said on Tuesday.
“You’ll see us significantly increase our investment in that space,” Khaldoon Khalifa al-Mubarak told an investment conference in Abu Dhabi.
Mubadala, which owns Cleveland Clinic in Abu Dhabi, last year acquired Amana Healthcare, a provider of long-term care, specialized rehabilitation, and home healthcare services.
Mubadala, which manages about $240 billion in assets, is the second-biggest state investor after Abu Dhabi Investment Authority, which is estimated to have nearly $700 billion in assets.
Abu Dhabi state investor Mubadala will significantly increase investment in life sciences and medical technology as it sees the healthcare sector as profitable, its group chief executive said on Tuesday.
“You’ll see us significantly increase our investment in that space,” Khaldoon Khalifa al-Mubarak told an investment conference in Abu Dhabi.
Mubadala, which owns Cleveland Clinic in Abu Dhabi, last year acquired Amana Healthcare, a provider of long-term care, specialized rehabilitation, and home healthcare services.
Mubadala, which manages about $240 billion in assets, is the second-biggest state investor after Abu Dhabi Investment Authority, which is estimated to have nearly $700 billion in assets.
Mideast Stocks: #Saudi, #Dubai hit by weak corporate earnings; Egypt edges up | ZAWYA MENA Edition
Mideast Stocks: Saudi, Dubai hit by weak corporate earnings; Egypt edges up | ZAWYA MENA Edition:
Most Gulf stocks ended lower on Tuesday, with Saudi and Dubai leading the losses on the back of poor corporate earnings, while Eastern Company aided Egypt's blue-chip index.
Saudi Arabia's benchmark index declined 1%, as most of its banking stocks were in the red including Al Rajhi Bank, which tumbled 2.6%.
The lender reported an annual profit of 10.16 billion riyals ($2.71 billion), compared with 3.77 billion riyals a year ago. However, the figure was lower than analysts' average estimate of 10.64 billion riyals, according to Refinitiv data.
Mobile Telecommunications Company (Zain Saudi) dropped 9.9%, to become the top loser on the index.
The telco saw its biggest intraday fall since May 2018, a day after it ended talks with the ministry of finance aimed at converting the debt the company owed to the ministry into the firm's shares.
Most Gulf stocks ended lower on Tuesday, with Saudi and Dubai leading the losses on the back of poor corporate earnings, while Eastern Company aided Egypt's blue-chip index.
Saudi Arabia's benchmark index declined 1%, as most of its banking stocks were in the red including Al Rajhi Bank, which tumbled 2.6%.
The lender reported an annual profit of 10.16 billion riyals ($2.71 billion), compared with 3.77 billion riyals a year ago. However, the figure was lower than analysts' average estimate of 10.64 billion riyals, according to Refinitiv data.
Mobile Telecommunications Company (Zain Saudi) dropped 9.9%, to become the top loser on the index.
The telco saw its biggest intraday fall since May 2018, a day after it ended talks with the ministry of finance aimed at converting the debt the company owed to the ministry into the firm's shares.
Oil Rebounds, Yet Contango Warns of Glut as Virus Hits Demand - Bloomberg
Oil Rebounds, Yet Contango Warns of Glut as Virus Hits Demand - Bloomberg:
Oil recovered from a one-year low as equity markets climbed, yet widespread discounts on prompt crude supplies signaled that Asia’s coronavirus is sharply eroding demand.
Brent crude added 2.1% to trade above $54 a barrel in London. But the futures curve briefly entered a full “contango” structure, in which each monthly contract is cheaper than the next, suggesting a glut in supply. Global demand estimates are being cut as the outbreak causes severe economic disruption in China, while OPEC is hesitating over steps to support prices.
As the overhang begins to accumulate, top oil traders such as Vitol SA, Royal Dutch Shell Plc and Litasco SA are seeking to hoard crude on vessels at sea. One Chinese energy company has invoked a legal clause to avoid taking delivery of liquefied natural gas.
“When the oil market is in surplus -- as it is now -- the forward curve needs to be in contango in order to pay for the storage of the building surplus,” said Bjarne Schieldrop, chief commodities analyst at Swedish bank SEB AB. It’s the first time a full contango has taken hold in a year, he said.
Oil recovered from a one-year low as equity markets climbed, yet widespread discounts on prompt crude supplies signaled that Asia’s coronavirus is sharply eroding demand.
Brent crude added 2.1% to trade above $54 a barrel in London. But the futures curve briefly entered a full “contango” structure, in which each monthly contract is cheaper than the next, suggesting a glut in supply. Global demand estimates are being cut as the outbreak causes severe economic disruption in China, while OPEC is hesitating over steps to support prices.
As the overhang begins to accumulate, top oil traders such as Vitol SA, Royal Dutch Shell Plc and Litasco SA are seeking to hoard crude on vessels at sea. One Chinese energy company has invoked a legal clause to avoid taking delivery of liquefied natural gas.
“When the oil market is in surplus -- as it is now -- the forward curve needs to be in contango in order to pay for the storage of the building surplus,” said Bjarne Schieldrop, chief commodities analyst at Swedish bank SEB AB. It’s the first time a full contango has taken hold in a year, he said.
#AbuDhabi Fund Mubadala Sees Commodities ‘Fizzle’ On Coronavirus - Bloomberg
Abu Dhabi Fund Mubadala Sees Commodities ‘Fizzle’ On Coronavirus - Bloomberg:
Commodities markets are set to “fizzle” as the coronavirus crimps business worldwide, according to a top executive at Abu Dhabi’s government-run fund Mubadala Investment Co.
Falling commodity prices are a risk for emerging economies that rely on the production of raw materials, and investors in these markets should “be a little bit cautious,” Mubadala Deputy Chief Executive Officer Waleed Al Mokarrab Al Muhairi said Tuesday in Abu Dhabi. The uncertain outlook for the coronavirus makes it harder for investors to decide where to put their money, he said.
The disease is hurting economic expansion as airlines cancel flights and factories look elsewhere for components they would have bought from China, where the coronavirus originated. Growth in demand for oil was already fragile amid a supply glut, and benchmark Brent crude has tumbled 18% this year.
“Commodities are going to be impacted,” Al Muhairi said. “You see that in aluminum, you see that in iron ore, you see that in oil.” Manufacturers are already shifting some operations and supply chains away from China, he said.
Commodities markets are set to “fizzle” as the coronavirus crimps business worldwide, according to a top executive at Abu Dhabi’s government-run fund Mubadala Investment Co.
Falling commodity prices are a risk for emerging economies that rely on the production of raw materials, and investors in these markets should “be a little bit cautious,” Mubadala Deputy Chief Executive Officer Waleed Al Mokarrab Al Muhairi said Tuesday in Abu Dhabi. The uncertain outlook for the coronavirus makes it harder for investors to decide where to put their money, he said.
The disease is hurting economic expansion as airlines cancel flights and factories look elsewhere for components they would have bought from China, where the coronavirus originated. Growth in demand for oil was already fragile amid a supply glut, and benchmark Brent crude has tumbled 18% this year.
“Commodities are going to be impacted,” Al Muhairi said. “You see that in aluminum, you see that in iron ore, you see that in oil.” Manufacturers are already shifting some operations and supply chains away from China, he said.
#Kuwait's Jazeera Airways soars to best-ever annual profit - Arabianbusiness
Kuwait's Jazeera Airways soars to best-ever annual profit - Arabianbusiness:
Kuwait-based Jazeera Airways on Tuesday announced an annual net profit of KD14.9 million ($48.9 million), up 124.1 percent compared to the previous year, supported by a surge in passenger numbers.
The airline reported a 20.6 percent increase in number of passengers, reaching 2.4 million, and a 25.9 percent increase in operating revenue to KD103.7 million.
The airline also registered an increase in operating profit by 108.7 percent to KD14.2 million, a 2.3 percent increase in load factor to 77.5 percent.
In the last quarter of the year, the company reported a net loss of KD1.2 million, up from a net loss of KD1.8 million in Q4 2018, while passenger numbers increased by 28.5 percent.
Kuwait-based Jazeera Airways on Tuesday announced an annual net profit of KD14.9 million ($48.9 million), up 124.1 percent compared to the previous year, supported by a surge in passenger numbers.
The airline reported a 20.6 percent increase in number of passengers, reaching 2.4 million, and a 25.9 percent increase in operating revenue to KD103.7 million.
The airline also registered an increase in operating profit by 108.7 percent to KD14.2 million, a 2.3 percent increase in load factor to 77.5 percent.
In the last quarter of the year, the company reported a net loss of KD1.2 million, up from a net loss of KD1.8 million in Q4 2018, while passenger numbers increased by 28.5 percent.
#Kuwait's Boubyan Bank starts marketing 5-yr dollar sukuk - Reuters
Kuwait's Boubyan Bank starts marketing 5-yr dollar sukuk - Reuters:
Kuwait’s Boubyan Bank has started marketing five-year U.S. dollar-denominated sukuk, or Islamic bonds, at around 150 basis points (bps) over mid-swaps, a document showed.
HSBC and Standard Chartered were hired as joint global coordinators for the deal. Bank ABC, Boubyan Capital, First Abu Dhabi Bank, Islamic Corporation for the Development of the Private Sector, KFH Capital, Kuwait International Bank and Warba Bank are also involved in arranging the deal, the document said.
Boubyan Bank met fixed income investors in Dubai and London ahead of the potential benchmark debt sale, which is expected to close later on Tuesday. Benchmark bonds are generally meant to be upwards of $500 million.
Kuwait’s Boubyan Bank has started marketing five-year U.S. dollar-denominated sukuk, or Islamic bonds, at around 150 basis points (bps) over mid-swaps, a document showed.
HSBC and Standard Chartered were hired as joint global coordinators for the deal. Bank ABC, Boubyan Capital, First Abu Dhabi Bank, Islamic Corporation for the Development of the Private Sector, KFH Capital, Kuwait International Bank and Warba Bank are also involved in arranging the deal, the document said.
Boubyan Bank met fixed income investors in Dubai and London ahead of the potential benchmark debt sale, which is expected to close later on Tuesday. Benchmark bonds are generally meant to be upwards of $500 million.
#Saudi- #Qatar talks to end lengthy Gulf dispute falter: sources - Reuters
Saudi-Qatar talks to end lengthy Gulf dispute falter: sources - Reuters:
Talks between Saudi Arabia and Qatar to resolve a bitter Gulf dispute broke down soon after starting, six sources said, leaving in place a political and trade embargo of Doha that hampers joint Gulf Arab efforts to counter Iran.
The discussions that began in October were the first glimmer of a thaw in the row that saw Saudi Arabia, the United Arab Emirates, Bahrain and Egypt sever political, trade and transport ties with Qatar in mid-2017.
The countries accused Qatar of supporting terrorism and cozying up to regional foe Iran. Doha denies the charges and says the embargo by its fellow Gulf Arabs aims to undermine its sovereignty.
Washington has strong ties with all the states involved, including Qatar which hosts the largest U.S. military base in the region, and sees the rift as a threat to efforts to contain Iran. It has pushed for a united Gulf front.
Talks between Saudi Arabia and Qatar to resolve a bitter Gulf dispute broke down soon after starting, six sources said, leaving in place a political and trade embargo of Doha that hampers joint Gulf Arab efforts to counter Iran.
The discussions that began in October were the first glimmer of a thaw in the row that saw Saudi Arabia, the United Arab Emirates, Bahrain and Egypt sever political, trade and transport ties with Qatar in mid-2017.
The countries accused Qatar of supporting terrorism and cozying up to regional foe Iran. Doha denies the charges and says the embargo by its fellow Gulf Arabs aims to undermine its sovereignty.
Washington has strong ties with all the states involved, including Qatar which hosts the largest U.S. military base in the region, and sees the rift as a threat to efforts to contain Iran. It has pushed for a united Gulf front.
FTSE dream in tatters for NMC founder BR Shetty | Financial Times
FTSE dream in tatters for NMC founder BR Shetty | Financial Times:
For almost five decades, Indian businessman BR Shetty has represented the ultimate expat dream.
Arriving in Abu Dhabi two years after the formation of the United Arab Emirates, he built two businesses that would elevate him into the pantheon of global billionaires after they listed on the London Stock Exchange.
Now, FTSE 100 healthcare provider NMC Health and Finablr, the financial services group that owns currency provider Travelex, are facing a battle for survival, after a string of problems that have not only diminished the wealth and reputation of 77-year-old Mr Shetty, but dealt a damaging blow to London’s financial market.
In the latest twist, NMC on Monday revealed that the shareholdings of Mr Shetty and his two Emirati partners, Saeed al-Qebaisi and Khalifa al-Muhairi — known locally as the bin Buttis — had been misreported.
For almost five decades, Indian businessman BR Shetty has represented the ultimate expat dream.
Arriving in Abu Dhabi two years after the formation of the United Arab Emirates, he built two businesses that would elevate him into the pantheon of global billionaires after they listed on the London Stock Exchange.
Now, FTSE 100 healthcare provider NMC Health and Finablr, the financial services group that owns currency provider Travelex, are facing a battle for survival, after a string of problems that have not only diminished the wealth and reputation of 77-year-old Mr Shetty, but dealt a damaging blow to London’s financial market.
In the latest twist, NMC on Monday revealed that the shareholdings of Mr Shetty and his two Emirati partners, Saeed al-Qebaisi and Khalifa al-Muhairi — known locally as the bin Buttis — had been misreported.
KKR rules out bid for hospital operator NMC Health | Financial Times
KKR rules out bid for hospital operator NMC Health | Financial Times:
The US buyout group KKR has said it will not bid for the embattled FTSE 100 company NMC Health, which said yesterday that the private equity firm had made a “highly preliminary approach” about a possible deal.
KKR “has not made a proposal nor discussed with NMC the terms of any possible offer” and “does not intend to make an offer for NMC,” it said in a statement.
NMC rallied sharply on Monday after disclosing that two potential bidders had made inquiries. In Tuesday trading, NMC shares dropped 14 per cent to 800p on the news, giving up some of their gains from Monday.
Monday’s announcement was made as the company forced its founder BR Shetty and another top shareholder, Khalifa al-Muhairi, to step back from the board, after the size of their stakes in the company were incorrectly reported.
The US buyout group KKR has said it will not bid for the embattled FTSE 100 company NMC Health, which said yesterday that the private equity firm had made a “highly preliminary approach” about a possible deal.
KKR “has not made a proposal nor discussed with NMC the terms of any possible offer” and “does not intend to make an offer for NMC,” it said in a statement.
NMC rallied sharply on Monday after disclosing that two potential bidders had made inquiries. In Tuesday trading, NMC shares dropped 14 per cent to 800p on the news, giving up some of their gains from Monday.
Monday’s announcement was made as the company forced its founder BR Shetty and another top shareholder, Khalifa al-Muhairi, to step back from the board, after the size of their stakes in the company were incorrectly reported.
Jho Low, PetroSaudi Directors Face New 1MDB Charges in Malaysia - Bloomberg
Jho Low, PetroSaudi Directors Face New 1MDB Charges in Malaysia - Bloomberg:
Fugitive financier Low Taek Jho faces new charges in Malaysia along with PetroSaudi International directors Tarek Obaid and Patrick Mahony over their alleged roles in the 1MDB scandal.
The three are accused of engaging in criminal conspiracy with Malaysia’s former Prime Minister Najib Razak, while Mahony and Obaid face additional money laundering charges for allegedly receiving $300 million from 1MDB through unlawful activity, according to the Malaysian Anti-Corruption Commission. The charges were served in their absence on Monday at a Magistrate Court in Kuala Lumpur.
These are the first accusations against Mahony and Obaid in Malaysia, while Low, known as Jho Low, has already denied wrongdoing against previous charges filed against him in the Southeast Asian country.
Fugitive financier Low Taek Jho faces new charges in Malaysia along with PetroSaudi International directors Tarek Obaid and Patrick Mahony over their alleged roles in the 1MDB scandal.
The three are accused of engaging in criminal conspiracy with Malaysia’s former Prime Minister Najib Razak, while Mahony and Obaid face additional money laundering charges for allegedly receiving $300 million from 1MDB through unlawful activity, according to the Malaysian Anti-Corruption Commission. The charges were served in their absence on Monday at a Magistrate Court in Kuala Lumpur.
These are the first accusations against Mahony and Obaid in Malaysia, while Low, known as Jho Low, has already denied wrongdoing against previous charges filed against him in the Southeast Asian country.
Coronavirus Oil Shock Threatens Double Whammy for Producers - Bloomberg
Coronavirus Oil Shock Threatens Double Whammy for Producers - Bloomberg:
The coronavirus outbreak is already threatening oil markets. The fear of lower demand — from a disease-stricken China and eventually globally as the economic impact widens — has destabilized prices, sending crude to its lowest levels in more than a year. For major oil-producing countries, the declines, coming at a time of curtailed output, threaten economic shocks that if long-lasting could lead to the kind of political and regional instability that was avoided during the last steep drop.
China is the largest oil importer in the world by far, and its biggest suppliers are Saudi Arabia and Russia. In December, China’s General Administration of Customs reported oil imports of nearly 11 million barrels per day. With the virus still yet to be contained, people with inside knowledge of the Chinese energy industry estimate that oil demand in the country has dropped by about 3 million barrels a day, or 20% of total consumption.
We don’t yet know what toll the virus will take on global oil demand, especially if an economic slowdown spreads beyond China; estimates from BP Plc and OPEC put potential losses in the 200,000 to 600,000 barrel-per-day range. As containment efforts fall short and quarantine measures become more severe and widespread, markets need to consider that the worst-case scenario might be more realistic than previously assessed, and be mindful of the possible reverberations.
The coronavirus outbreak is already threatening oil markets. The fear of lower demand — from a disease-stricken China and eventually globally as the economic impact widens — has destabilized prices, sending crude to its lowest levels in more than a year. For major oil-producing countries, the declines, coming at a time of curtailed output, threaten economic shocks that if long-lasting could lead to the kind of political and regional instability that was avoided during the last steep drop.
China is the largest oil importer in the world by far, and its biggest suppliers are Saudi Arabia and Russia. In December, China’s General Administration of Customs reported oil imports of nearly 11 million barrels per day. With the virus still yet to be contained, people with inside knowledge of the Chinese energy industry estimate that oil demand in the country has dropped by about 3 million barrels a day, or 20% of total consumption.
We don’t yet know what toll the virus will take on global oil demand, especially if an economic slowdown spreads beyond China; estimates from BP Plc and OPEC put potential losses in the 200,000 to 600,000 barrel-per-day range. As containment efforts fall short and quarantine measures become more severe and widespread, markets need to consider that the worst-case scenario might be more realistic than previously assessed, and be mindful of the possible reverberations.
#Saudi Wealth Fund Leads Fundraising for Online Used Car Trader - Bloomberg
Saudi Wealth Fund Leads Fundraising for Online Used Car Trader - Bloomberg:
A unit of Saudi Arabia’s sovereign wealth fund is leading a $35 million funding round for SellAnyCar.com as the Dubai-based online car trader plans to expand in the kingdom.
Sanabil Investments is backing the start-up’s latest fundraising, along with Gulf Investment Corp. and Olayan Financing Co., Chief Executive Officer Saygin Yalcin said in an interview. Evercore Inc. is advising SellAnyCar.com, he said.
“Expansion in Saudi Arabia is going to be the number one use for these funds, and this will really accelerate growth,” said Yalcin. “We will be twice as big in Saudi Arabia as we are in the United Arab Emirates in the next 18 months.”
A unit of Saudi Arabia’s sovereign wealth fund is leading a $35 million funding round for SellAnyCar.com as the Dubai-based online car trader plans to expand in the kingdom.
Sanabil Investments is backing the start-up’s latest fundraising, along with Gulf Investment Corp. and Olayan Financing Co., Chief Executive Officer Saygin Yalcin said in an interview. Evercore Inc. is advising SellAnyCar.com, he said.
“Expansion in Saudi Arabia is going to be the number one use for these funds, and this will really accelerate growth,” said Yalcin. “We will be twice as big in Saudi Arabia as we are in the United Arab Emirates in the next 18 months.”
MIDEAST STOCKS- #Saudi, #Dubai fall on weak corporate earnings | Nasdaq
MIDEAST STOCKS-Saudi, Dubai fall on weak corporate earnings | Nasdaq:
Most major Gulf stock markets lost ground on Tuesday, with a slew of weak corporate earnings dragging shares in Saudi and Dubai lower.
Saudi Arabia's benchmark index .TASI retreated 0.6%, pulled lower by a 2.6% decline in Al Rajhi Bank 1120.SE after the lender missed expectations for full-year profit.
The bank reported an annual profit of 10.16 billion riyals ($2.71 billion), compared with 3.77 billion riyals a year ago. However, the figure was lower than analysts' average estimate of 10.64 billion riyals, according to Refinitiv data.
Mobile Telecommunications Company 7030.SE dropped 5.1%, its biggest intraday fall since August.
Most major Gulf stock markets lost ground on Tuesday, with a slew of weak corporate earnings dragging shares in Saudi and Dubai lower.
Saudi Arabia's benchmark index .TASI retreated 0.6%, pulled lower by a 2.6% decline in Al Rajhi Bank 1120.SE after the lender missed expectations for full-year profit.
The bank reported an annual profit of 10.16 billion riyals ($2.71 billion), compared with 3.77 billion riyals a year ago. However, the figure was lower than analysts' average estimate of 10.64 billion riyals, according to Refinitiv data.
Mobile Telecommunications Company 7030.SE dropped 5.1%, its biggest intraday fall since August.
Firm backed by Italy's Gruppo San Donato could make offer for NMC - Reuters
Firm backed by Italy's Gruppo San Donato could make offer for NMC - Reuters:
GKSD Investment Holding confirmed on Tuesday that it could make an offer to buy NMC Health (NMC.L), a day after the London-listed healthcare group revealed approaches from two private equity groups.
GKSD, an investment vehicle backed by sponsors of Italy’s private hospital chain Gruppo San Donato (GSD), said it was in the preliminary stages of considering an offer for NMC.
GKSD is being advised by GK Investment, which made the approach to NMC on its behalf, the firm said. Rothschild & Co and Goldman Sachs are also acting as advisers.
GSD, founded here in 1957, operates research hospitals, general hospitals and clinics in 44 locations across Italy and calls itself the country's largest private hospital group.
GKSD Investment Holding confirmed on Tuesday that it could make an offer to buy NMC Health (NMC.L), a day after the London-listed healthcare group revealed approaches from two private equity groups.
GKSD, an investment vehicle backed by sponsors of Italy’s private hospital chain Gruppo San Donato (GSD), said it was in the preliminary stages of considering an offer for NMC.
GKSD is being advised by GK Investment, which made the approach to NMC on its behalf, the firm said. Rothschild & Co and Goldman Sachs are also acting as advisers.
GSD, founded here in 1957, operates research hospitals, general hospitals and clinics in 44 locations across Italy and calls itself the country's largest private hospital group.
Oil rebounds amid broad market recovery; investors still wary - Reuters
Oil rebounds amid broad market recovery; investors still wary - Reuters:
Oil prices rose around 1% on Tuesday in sympathy with a rally in equity markets but investors remained jittery over the Wuhan virus that has now killed over 1,000 in China.
Brent crude LCOc1 rose 53 cents, nearly 1%, to $53.80 a barrel by 0730 GMT, retreating from an intraday high of $54.16. U.S. West Texas Intermediate CLc1 was up 46 cents, about 1%, at $50.18 a barrel.
Both benchmarks, however, were still more than 20% below their January peaks.
“A broad positive sentiment across Asia markets seems to have boosted crude oil prices,” Margaret Yang, market analyst of CMC Markets, told Reuters.
Oil prices rose around 1% on Tuesday in sympathy with a rally in equity markets but investors remained jittery over the Wuhan virus that has now killed over 1,000 in China.
Brent crude LCOc1 rose 53 cents, nearly 1%, to $53.80 a barrel by 0730 GMT, retreating from an intraday high of $54.16. U.S. West Texas Intermediate CLc1 was up 46 cents, about 1%, at $50.18 a barrel.
Both benchmarks, however, were still more than 20% below their January peaks.
“A broad positive sentiment across Asia markets seems to have boosted crude oil prices,” Margaret Yang, market analyst of CMC Markets, told Reuters.
Riyad Bank hires banks for dollar sukuk issue - Reuters
Riyad Bank hires banks for dollar sukuk issue - Reuters:
Saudi Arabia’s Riyad Bank has hired international and regional banks to arrange the potential issuance of dollar-denominated sukuk, it said in a stock exchange filing on Tuesday.
The country’s fourth-largest bank has hired JPMorgan , Riyad Capital, Standard Chartered, First Abu Dhabi Bank and HSBC to lead the deal, the filing said.
The tier 2 sukuk sale would be the first debt issuance under the bank’s programme to issue primary and secondary bonds. The programme’s maximum value is $3 billion.
Saudi Arabia’s Riyad Bank has hired international and regional banks to arrange the potential issuance of dollar-denominated sukuk, it said in a stock exchange filing on Tuesday.
The country’s fourth-largest bank has hired JPMorgan , Riyad Capital, Standard Chartered, First Abu Dhabi Bank and HSBC to lead the deal, the filing said.
The tier 2 sukuk sale would be the first debt issuance under the bank’s programme to issue primary and secondary bonds. The programme’s maximum value is $3 billion.
DAMAC reports first annual loss since 2010 as #Dubai property market lags - Reuters
DAMAC reports first annual loss since 2010 as Dubai property market lags - Reuters:
DAMAC Properties DAMAC.DU, one of Dubai’s largest non state-linked developers, swung to a net loss of 36.9 million dirhams ($10 million) in 2019 from a profit of 1.15 billion dirhams in the previous year, the firm reported on Tuesday.
It is the first yearly loss since 2010 for the owner of the only Trump-brand golf course in the Middle East, according to Refinitiv data.
DAMAC’s billionaire Chairman Hussain Sajwani last year said developers in the emirate should stop all new residential projects for up to two years to kickstart a recovery in Dubai’s troubled market.
Dubai has faced a slowing real estate market for most of the decade, barring a brief pickup more than five years ago. Housing oversupply has driven prices down at least a quarter since 2014.
DAMAC Properties DAMAC.DU, one of Dubai’s largest non state-linked developers, swung to a net loss of 36.9 million dirhams ($10 million) in 2019 from a profit of 1.15 billion dirhams in the previous year, the firm reported on Tuesday.
It is the first yearly loss since 2010 for the owner of the only Trump-brand golf course in the Middle East, according to Refinitiv data.
DAMAC’s billionaire Chairman Hussain Sajwani last year said developers in the emirate should stop all new residential projects for up to two years to kickstart a recovery in Dubai’s troubled market.
Dubai has faced a slowing real estate market for most of the decade, barring a brief pickup more than five years ago. Housing oversupply has driven prices down at least a quarter since 2014.
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