Oil up more than 2% on slowing coronavirus cases, U.S. move on Venezuela - Reuters:
Oil prices gained more than 2% on Wednesday as worries eased about demand declining due to the spread of coronavirus cases in China, while supplies tightened as the United States moved to cut off more Venezuelan crude from the market.
Brent crude LCOc1 settled at $59.12 a barrel, rising $1.37, or 2.4%. U.S. oil CLc1 settled at $53.29, gaining $1.24, or 2.4%.
Official data showed new coronavirus cases in China fell for a second day, although the World Health Organization said there was not enough data to know if the epidemic was being contained.
Wall Street reached new highs on optimism China would stimulate its economy and counteract the impact of the outbreak.[.N]
“It seems like the oil market is trying to catch up with the stock market and put the coronavirus in the rear-view mirror or discount it mightily,” said John Kilduff, a partner at Again Capital in New York.
Wednesday, 19 February 2020
#Dubai Aerospace Enterprises reports $377.5 million profit in 2019 | Aviation – Gulf News
Dubai Aerospace Enterprises reports $377.5 million profit in 2019 | Aviation – Gulf News:
Dubai Aerospace Enterprise (DAE) Ltd on Wednesday reported a profit of $377.5 million in 2019 compared to $372.9 million for the year 2018.
Operating profit for the year ended 31 December, 2019 was $785.9 million compared to $783.9 million for 2018. During the year ended 31 December, 2019 there was an increase in gain on disposal of aircraft offset by an increase in depreciation and amortisation expense and lower lease revenue.
Adjusted EBITDA [earnings before interest, tax, depreciation and amortization] was $1.35 billion for the year ended 31 December, 2019 increasing from $1.34 billion for 2018.
“The growth of DAE in the last few years has boosted the contribution of aviation to Dubai’s success. DAE has executed its strategy effectively and is today a successful, large-scale lessor with more than 400 aircraft in its portfolio. We are pleased with the progress DAE has made with the support it has received from ICD,” said Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DAE.
Dubai Aerospace Enterprise (DAE) Ltd on Wednesday reported a profit of $377.5 million in 2019 compared to $372.9 million for the year 2018.
Operating profit for the year ended 31 December, 2019 was $785.9 million compared to $783.9 million for 2018. During the year ended 31 December, 2019 there was an increase in gain on disposal of aircraft offset by an increase in depreciation and amortisation expense and lower lease revenue.
Adjusted EBITDA [earnings before interest, tax, depreciation and amortization] was $1.35 billion for the year ended 31 December, 2019 increasing from $1.34 billion for 2018.
“The growth of DAE in the last few years has boosted the contribution of aviation to Dubai’s success. DAE has executed its strategy effectively and is today a successful, large-scale lessor with more than 400 aircraft in its portfolio. We are pleased with the progress DAE has made with the support it has received from ICD,” said Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DAE.
#SaudiArabia Equates Coronavirus’s Oil Impact to a House on Fire - Bloomberg
Saudi Arabia Equates Coronavirus’s Oil Impact to a House on Fire - Bloomberg:
Saudi Arabia gave the clearest signal yet of its concerns about the impact of the coronavirus on oil markets, comparing the situation to a blaze that needs the fire brigade.
In his first public comments on the virus since January, when he said the epidemic would have a “very limited impact” on oil demand, Saudi Energy Minister Prince Abdulaziz bin Salman described more urgent circumstances to an audience in Riyadh on Wednesday.
When asked about the impact of the coronavirus on oil, the prince equated it with a burning house, according to people who heard the comments, but asked not to be named because the event was closed to the press. You can either treat it with a garden hose and risk losing the building, or call the fire brigade, he said.
Some would say that calling the fire brigade projects panic and it could damage the furniture, the prince said. But doing so would simply be acting responsibly, and you would save the house, he said, according to the people.
Saudi Arabia gave the clearest signal yet of its concerns about the impact of the coronavirus on oil markets, comparing the situation to a blaze that needs the fire brigade.
In his first public comments on the virus since January, when he said the epidemic would have a “very limited impact” on oil demand, Saudi Energy Minister Prince Abdulaziz bin Salman described more urgent circumstances to an audience in Riyadh on Wednesday.
When asked about the impact of the coronavirus on oil, the prince equated it with a burning house, according to people who heard the comments, but asked not to be named because the event was closed to the press. You can either treat it with a garden hose and risk losing the building, or call the fire brigade, he said.
Some would say that calling the fire brigade projects panic and it could damage the furniture, the prince said. But doing so would simply be acting responsibly, and you would save the house, he said, according to the people.
What's the Big Attraction in British Airways for #Qatar? - Bloomberg
What's the Big Attraction in British Airways for Qatar? - Bloomberg:
Even Willie Walsh admits that International Consolidated Airlines Group SA, where he’s the boss, is a “very boring name” for an airline group (IAG’s portfolio includes the more evocatively titled British Airways and Iberia).
But should his successor ever wish to change it to something racier they’ll have to seek the blessing of Qatar Airways. On Wednesday the loss-making Gulf carrier said it had hiked its IAG stake from 21.4% to 25.1% in a move that will have cost about $600 million at current prices.
Under British share ownership rules, an investor with 25% or more of the stock can block special resolutions, such as changes to the articles of association or to a company’s name. Unlike some airlines, IAG is focused on making money for its shareholders but it’s still a little baffling why the Qatar Airways boss, Akbar Al Baker, would pay all that money for such limited influence (his airline didn’t respond to questions seeking further clarification). Usually, the company’s approach is not to seek board seats.
Qatar Airways is doubtless snaffling up stakes in rivals as a means of asserting soft power on behalf of its government, and enhancing its own global flight network — and it’s not alone in doing that. But the Gulf company is one of the most acquisitive carriers, and maybe that’s not a good thing given the mixed performance of airline stocks. In addition to its IAG shares, Qatar owns minority stakes in Latam, Cathay Pacific and China Southern Airlines. It also wants one in RwandAir.
Even Willie Walsh admits that International Consolidated Airlines Group SA, where he’s the boss, is a “very boring name” for an airline group (IAG’s portfolio includes the more evocatively titled British Airways and Iberia).
But should his successor ever wish to change it to something racier they’ll have to seek the blessing of Qatar Airways. On Wednesday the loss-making Gulf carrier said it had hiked its IAG stake from 21.4% to 25.1% in a move that will have cost about $600 million at current prices.
Under British share ownership rules, an investor with 25% or more of the stock can block special resolutions, such as changes to the articles of association or to a company’s name. Unlike some airlines, IAG is focused on making money for its shareholders but it’s still a little baffling why the Qatar Airways boss, Akbar Al Baker, would pay all that money for such limited influence (his airline didn’t respond to questions seeking further clarification). Usually, the company’s approach is not to seek board seats.
Qatar Airways is doubtless snaffling up stakes in rivals as a means of asserting soft power on behalf of its government, and enhancing its own global flight network — and it’s not alone in doing that. But the Gulf company is one of the most acquisitive carriers, and maybe that’s not a good thing given the mixed performance of airline stocks. In addition to its IAG shares, Qatar owns minority stakes in Latam, Cathay Pacific and China Southern Airlines. It also wants one in RwandAir.
Oil Hits Two-Week High on Supply Risks From Venezuela to Libya - Bloomberg
Oil Hits Two-Week High on Supply Risks From Venezuela to Libya - Bloomberg:
Oil climbed to the highest level this month as sanctions on Rosneft Trading and escalating tensions in Libya threatened global crude supply.
Futures rose as much 2.5% in New York on Wednesday. The U.S. sanctioned a unit of Russia’s Rosneft PJSC for maintaining ties with Venezuela’s Nicolas Maduro and the state-run oil company, putting Venezuela’s ability to export crude in jeopardy. Meanwhile, cease-fire talks were suspended in Libya after the capital’s port was shelled by forces loyal to military commander Khalifa Haftar, who has forced a blockade of the country’s exports.
“There’s no doubt the market is getting a lift from Libya and sanctions,” said Mike Hiley, head of OTC energy trading with LPS Partners. “The coronavirus is slowly moving to the back of people’s minds. The shape of the curve has improved and indicates there is some demand for product.”
China, the world’s biggest oil importer, is considering steps to shore up its economy, such as direct cash infusions and mergers to revive its airline industry, in the midst of the coronavirus outbreak.
Oil climbed to the highest level this month as sanctions on Rosneft Trading and escalating tensions in Libya threatened global crude supply.
Futures rose as much 2.5% in New York on Wednesday. The U.S. sanctioned a unit of Russia’s Rosneft PJSC for maintaining ties with Venezuela’s Nicolas Maduro and the state-run oil company, putting Venezuela’s ability to export crude in jeopardy. Meanwhile, cease-fire talks were suspended in Libya after the capital’s port was shelled by forces loyal to military commander Khalifa Haftar, who has forced a blockade of the country’s exports.
“There’s no doubt the market is getting a lift from Libya and sanctions,” said Mike Hiley, head of OTC energy trading with LPS Partners. “The coronavirus is slowly moving to the back of people’s minds. The shape of the curve has improved and indicates there is some demand for product.”
China, the world’s biggest oil importer, is considering steps to shore up its economy, such as direct cash infusions and mergers to revive its airline industry, in the midst of the coronavirus outbreak.
UPDATE 2- #Saudi Dar Al Arkan sells $400 mln seven-year sukuk - document - Reuters
UPDATE 2-Saudi Dar Al Arkan sells $400 mln seven-year sukuk - document - Reuters:
Saudi Arabian real estate developer Dar Al Arkan sold $400 million in seven-year sukuk at 7%, a document from one of the banks leading the deal showed on Wednesday.
Dar Al Arkan, which began marketing the Islamic bonds at 7.375-7.5% on Wednesday, hired AlKhair Capital, Citi, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, Mashreqbank, Nomura, Standard Chartered Bank and Warba Bank to lead the deal.
The issuer received more than $1.1 billion in orders for the deal, the document said.
The sukuk, or Islamic bonds, will be issued through Dar Al Arkan Sukuk Company Ltd and guaranteed by Dar Al Arkan Real Estate Development.
Saudi Arabian real estate developer Dar Al Arkan sold $400 million in seven-year sukuk at 7%, a document from one of the banks leading the deal showed on Wednesday.
Dar Al Arkan, which began marketing the Islamic bonds at 7.375-7.5% on Wednesday, hired AlKhair Capital, Citi, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, Mashreqbank, Nomura, Standard Chartered Bank and Warba Bank to lead the deal.
The issuer received more than $1.1 billion in orders for the deal, the document said.
The sukuk, or Islamic bonds, will be issued through Dar Al Arkan Sukuk Company Ltd and guaranteed by Dar Al Arkan Real Estate Development.
#UAE regulator to investigate Pakistan bank for money laundering - Reuters
UAE regulator to investigate Pakistan bank for money laundering - Reuters:
The United Arab Emirates’ central bank is investigating Pakistan’s largest bank to ascertain if it violated anti-money- laundering and terrorism-financing laws, the regulator said on Wednesday.
The inquiry comes as Pakistan is under examination by a Paris unit of the Financial Action Task Force, a global financial watchdog, for not adequately complying with global regulations on money laundering and terrorism financing.
The FATF will decide this week whether to put Pakistan on a list of countries on non-compliant with global financial regulations, which would carry significant sanctions.
The Central Bank of UAE (CBAUE) said in a statement on Wednesday that it was in “close contact” with Pakistan’s banking regulator to verify reported irregularities of a Pakistani bank in UAE.
A spokeswoman of the CBAUE confirmed to Reuters that the statement referred to Habib Bank Ltd (HBL), Pakistan’s largest bank.
The United Arab Emirates’ central bank is investigating Pakistan’s largest bank to ascertain if it violated anti-money- laundering and terrorism-financing laws, the regulator said on Wednesday.
The inquiry comes as Pakistan is under examination by a Paris unit of the Financial Action Task Force, a global financial watchdog, for not adequately complying with global regulations on money laundering and terrorism financing.
The FATF will decide this week whether to put Pakistan on a list of countries on non-compliant with global financial regulations, which would carry significant sanctions.
The Central Bank of UAE (CBAUE) said in a statement on Wednesday that it was in “close contact” with Pakistan’s banking regulator to verify reported irregularities of a Pakistani bank in UAE.
A spokeswoman of the CBAUE confirmed to Reuters that the statement referred to Habib Bank Ltd (HBL), Pakistan’s largest bank.
OPEC Sends Official Invites for March Meeting: Delegates - Bloomberg
OPEC Sends Official Invites for March Meeting: Delegates - Bloomberg:
OPEC sent out invitations for the meetings between the cartel and its allies on March 5 and 6, delegates said, signaling that plans for an emergency gathering have faded away.
The 23-nation coalition known as OPEC+ had already scheduled the conference for early March when it last assembled in December.
Saudi Arabia -- the Organization of Petroleum Exporting Countries’ biggest producer -- had pushed for an early meeting to consider deeper production cuts as Asia’s coronavirus pummels fuel demand. Russia, the most important ally in the broader alliance, resisted the initiative.
The invitations distributed this week confirm that the gathering will take place on the originally-scheduled dates.
OPEC sent out invitations for the meetings between the cartel and its allies on March 5 and 6, delegates said, signaling that plans for an emergency gathering have faded away.
The 23-nation coalition known as OPEC+ had already scheduled the conference for early March when it last assembled in December.
Saudi Arabia -- the Organization of Petroleum Exporting Countries’ biggest producer -- had pushed for an early meeting to consider deeper production cuts as Asia’s coronavirus pummels fuel demand. Russia, the most important ally in the broader alliance, resisted the initiative.
The invitations distributed this week confirm that the gathering will take place on the originally-scheduled dates.
Pompeo in #SaudiArabia to talk #Iran, economy and human rights - Reuters
Pompeo in Saudi Arabia to talk Iran, economy and human rights - Reuters:
U.S. Secretary of State Mike Pompeo arrived in Saudi Arabia on Wednesday to discuss regional security, namely Iran, after the U.S. killing last month of a top Iranian general pushed the oil-producing region closer to an all-out war.
In meetings with King Salman and Crown Prince Mohammed bin Salman over the next two days, Pompeo will also raise economic and human rights issues like the case of a Saudi-American physician who remains on trial after nearly two years in detention, he told reporters traveling with him.
Saudi Arabia has backed the Trump administration’s efforts to counter Iran but cautioned against military action after a series of strikes last year damaged its oil facilities. Riyadh blamed the attacks on Tehran, which denies responsibility.
The United States and Iran backed off from intensified conflict last month after a U.S. air strike in Iraq killed Qassem Soleimani and Tehran retaliated with missile strikes on U.S. bases that injured more than 100 troops.
U.S. Secretary of State Mike Pompeo arrived in Saudi Arabia on Wednesday to discuss regional security, namely Iran, after the U.S. killing last month of a top Iranian general pushed the oil-producing region closer to an all-out war.
In meetings with King Salman and Crown Prince Mohammed bin Salman over the next two days, Pompeo will also raise economic and human rights issues like the case of a Saudi-American physician who remains on trial after nearly two years in detention, he told reporters traveling with him.
Saudi Arabia has backed the Trump administration’s efforts to counter Iran but cautioned against military action after a series of strikes last year damaged its oil facilities. Riyadh blamed the attacks on Tehran, which denies responsibility.
The United States and Iran backed off from intensified conflict last month after a U.S. air strike in Iraq killed Qassem Soleimani and Tehran retaliated with missile strikes on U.S. bases that injured more than 100 troops.
MIDEAST STOCKS- #Saudi leads most of Gulf higher; #Dubai bucks the trend | Nasdaq
MIDEAST STOCKS-Saudi leads most of Gulf higher; Dubai bucks the trend | Nasdaq:
Most stocks in the Gulf closed higher on Thursday, with Saudi leading gains that tracked global share and oil prices as investor worries about the coronavirus epidemic eased somewhat after a slight decline in the number of new cases.
Mainland China had 1,749 new confirmed cases of coronavirus infections on Tuesday, the country's National Health Commission said on Wednesday, down from 1,886 cases a day earlier and the lowest since Jan. 29.
Brent crude LCOc1 was up by 75 cents at $58.50 a barrel by 1003 GMT.
Saudi Arabia's benchmark index .TASI advanced 1.4%, boosted by a 1.4% rise in Al Rajhi Bank 1120.SE and a 1.3% gain in National Commercial Bank 1180.SE.
Al Moammar Information Systems 7200.SE soared 9.9%, its biggest intraday-gain since it began trading in April, following a rise in annual profit.
Most stocks in the Gulf closed higher on Thursday, with Saudi leading gains that tracked global share and oil prices as investor worries about the coronavirus epidemic eased somewhat after a slight decline in the number of new cases.
Mainland China had 1,749 new confirmed cases of coronavirus infections on Tuesday, the country's National Health Commission said on Wednesday, down from 1,886 cases a day earlier and the lowest since Jan. 29.
Brent crude LCOc1 was up by 75 cents at $58.50 a barrel by 1003 GMT.
Saudi Arabia's benchmark index .TASI advanced 1.4%, boosted by a 1.4% rise in Al Rajhi Bank 1120.SE and a 1.3% gain in National Commercial Bank 1180.SE.
Al Moammar Information Systems 7200.SE soared 9.9%, its biggest intraday-gain since it began trading in April, following a rise in annual profit.
#Lebanon’s Yields Hit 1,000% as Government Calls in Bond Advisers - Bloomberg
Lebanon’s Yields Hit 1,000% as Government Calls in Bond Advisers - Bloomberg:
A bond yield soars to more than 1,000%? It just happened with Lebanon.
The nation’s next maturing Eurobond, $1.2 billion of notes due on March 9, fell to a record low of 60 cents on Wednesday, sending the annualized yield to 1,290%.
What’s the latest?
The Beirut-based Al-Akhbar newspaper reported Wednesday that the Lebanese government will formally ask financial and legal advisers how it should handle its Eurobonds, with a view to potentially restructuring them. Lebanon is reaching out to banks including Citigroup Inc., Rothschild & Co. and JPMorgan Chase & Co., the newspaper said. It didn’t say where it got the information.
Meanwhile, the International Monetary Fund is sending a team to Beirut between Feb. 20 and 23 to discuss Lebanon’s economic issues with government officials, spokesman Gerry Rice said.
A bond yield soars to more than 1,000%? It just happened with Lebanon.
The nation’s next maturing Eurobond, $1.2 billion of notes due on March 9, fell to a record low of 60 cents on Wednesday, sending the annualized yield to 1,290%.
What’s the latest?
The Beirut-based Al-Akhbar newspaper reported Wednesday that the Lebanese government will formally ask financial and legal advisers how it should handle its Eurobonds, with a view to potentially restructuring them. Lebanon is reaching out to banks including Citigroup Inc., Rothschild & Co. and JPMorgan Chase & Co., the newspaper said. It didn’t say where it got the information.
Meanwhile, the International Monetary Fund is sending a team to Beirut between Feb. 20 and 23 to discuss Lebanon’s economic issues with government officials, spokesman Gerry Rice said.
#Qatar Airways Lifts Stake in British Airways Owner IAG to 25% - Bloomberg
Qatar Airways Lifts Stake in British Airways Owner IAG to 25% - Bloomberg:
Qatar Airways lifted its stake in British Airways parent IAG SA, tightening its grip on the European carrier after expansion in the Gulf was thwarted by a Saudi-led embargo.
The increase to 25.1%, from 21.4%, comes less than a month after IAG removed a cap on non-European Union investment.
The move gives Qatar greater leverage as IAG Chief Executive Officer Willie Walsh prepares to exit the post next month, and BA grapples with fallout from the U.K. separating from the EU. Walsh and Qatar Airways Chief Executive Officer Akbar Al Baker have had one of the closest dynamics in the airline industry, and the increased holding will hand the Mideast carrier additional rights as that personal partnership comes to an end.
“Our investment to date has been highly successful and the announced increase in our shareholding is evidence of our continued support of IAG and its strategy,” Al Baker said in a statement Wednesday.
Qatar Airways lifted its stake in British Airways parent IAG SA, tightening its grip on the European carrier after expansion in the Gulf was thwarted by a Saudi-led embargo.
The increase to 25.1%, from 21.4%, comes less than a month after IAG removed a cap on non-European Union investment.
The move gives Qatar greater leverage as IAG Chief Executive Officer Willie Walsh prepares to exit the post next month, and BA grapples with fallout from the U.K. separating from the EU. Walsh and Qatar Airways Chief Executive Officer Akbar Al Baker have had one of the closest dynamics in the airline industry, and the increased holding will hand the Mideast carrier additional rights as that personal partnership comes to an end.
“Our investment to date has been highly successful and the announced increase in our shareholding is evidence of our continued support of IAG and its strategy,” Al Baker said in a statement Wednesday.
#UAE News: Government Cracks Down on Misuse of Home Loans - Bloomberg
UAE News: Government Cracks Down on Misuse of Home Loans - Bloomberg: The United Arab Emirates is cracking down on the misuse of home loans to prevent risky borrowing as an ongoing property slump weighs on banks.
The central bank issued a notice to lenders “to stop certain unacceptable practices” involving mortgages, which enabled some borrowers to use home loans for purposes other than “constructing, purchasing or renovating a house for owner occupier or investment purposes.”
“Any form of personal loans granted by banks or finance companies using property as collateral” shouldn’t be classified as mortgages, the regulator said in a statement. Lenders shouldn’t provide personal loans for longer than four years and lenders “must not take private houses as security” for this type of borrowing, it said.
The measures come as banks in the U.A.E. are at risk once again as the property market endures it’s longest decline since a 2014 peak and non-performing loans rise. That’s prompted some lenders in the second-biggest Arab economy to ease payment terms by extending loan maturities and lowering interest rates.
The central bank issued a notice to lenders “to stop certain unacceptable practices” involving mortgages, which enabled some borrowers to use home loans for purposes other than “constructing, purchasing or renovating a house for owner occupier or investment purposes.”
“Any form of personal loans granted by banks or finance companies using property as collateral” shouldn’t be classified as mortgages, the regulator said in a statement. Lenders shouldn’t provide personal loans for longer than four years and lenders “must not take private houses as security” for this type of borrowing, it said.
The measures come as banks in the U.A.E. are at risk once again as the property market endures it’s longest decline since a 2014 peak and non-performing loans rise. That’s prompted some lenders in the second-biggest Arab economy to ease payment terms by extending loan maturities and lowering interest rates.
#Dubai property prices will fall further in 2020; "recovery will take a long time" | ZAWYA MENA Edition
Dubai property prices will fall further in 2020; "recovery will take a long time" | ZAWYA MENA Edition:
With a massive guaranteed oversupply of properties and top developers taking losses in 2019, real estate prices this year could fall another 5 to 10 percent.
S&P Global ratings said for 2020, it could see another a potential decline of 5 to 10 percent, a stress case that the ratings agency had outlined last year for 2020.
"We are seeing prices approach a level which we saw at the bottom of the previous cycle in 2010-2011, and when you adjust for inflation and incentives that you get when you buy off-plan products, it is probably even lower," Sapna Jagtiani, Associate Director, Corporate Ratings, S&P Global Ratings said.
"The market is already struggling, and we are expecting a year of very high delivery cycle. We are still seeing launches with small deposits and long-term payment plans, which is really not helping the market, adding the burden of funding such developments on the balance sheet of the developers. So we are seeing credit weakening on the side," Jagtiani added.
With a massive guaranteed oversupply of properties and top developers taking losses in 2019, real estate prices this year could fall another 5 to 10 percent.
S&P Global ratings said for 2020, it could see another a potential decline of 5 to 10 percent, a stress case that the ratings agency had outlined last year for 2020.
"We are seeing prices approach a level which we saw at the bottom of the previous cycle in 2010-2011, and when you adjust for inflation and incentives that you get when you buy off-plan products, it is probably even lower," Sapna Jagtiani, Associate Director, Corporate Ratings, S&P Global Ratings said.
"The market is already struggling, and we are expecting a year of very high delivery cycle. We are still seeing launches with small deposits and long-term payment plans, which is really not helping the market, adding the burden of funding such developments on the balance sheet of the developers. So we are seeing credit weakening on the side," Jagtiani added.
Citi, Deutsche start talks to sell $9 billion #Dubai port company debt: sources - Reuters
Citi, Deutsche start talks to sell $9 billion Dubai port company debt: sources - Reuters:
Citi (C.N) and Deutsche Bank (DBKGn.DE) have started talks with other banks to sell roughly $9 billion in debt Dubai raised to take full control of DP World (DPW.DI) and refinance borrowings of Dubai World, sources familiar with the matter said on Wednesday.
Dubai announced this week one of its state companies, Port and Free Zone World (PFZW), part of state investment vehicle Dubai World, aims to buy publicly listed shares of port operator DP World in a deal with a $13.9 billion valuation which will end up adding billions of dollars of debt to DP World’s books.
Citi and Deutsche Bank have underwritten roughly $9 billion of debt for the transaction and have started discussions with other lenders to decrease their exposure by distributing the debt, the sources said.
The banks declined to comment. DP World did not immediately respond to a request for comment.
Citi (C.N) and Deutsche Bank (DBKGn.DE) have started talks with other banks to sell roughly $9 billion in debt Dubai raised to take full control of DP World (DPW.DI) and refinance borrowings of Dubai World, sources familiar with the matter said on Wednesday.
Dubai announced this week one of its state companies, Port and Free Zone World (PFZW), part of state investment vehicle Dubai World, aims to buy publicly listed shares of port operator DP World in a deal with a $13.9 billion valuation which will end up adding billions of dollars of debt to DP World’s books.
Citi and Deutsche Bank have underwritten roughly $9 billion of debt for the transaction and have started discussions with other lenders to decrease their exposure by distributing the debt, the sources said.
The banks declined to comment. DP World did not immediately respond to a request for comment.
Supply Risks From Rosneft to Libya Push Crude Back Toward $60 - Bloomberg
Supply Risks From Rosneft to Libya Push Crude Back Toward $60 - Bloomberg:
Oil jumped back above $58 a barrel and was set for the longest run of gains in more than a year as U.S. sanctions on Russia’s largest producer and conflict in Libya shifted the focus to supply threats from virus-driven demand concerns.
The U.S. sanctioned a unit of Russia’s Rosneft PJSC for maintaining ties with Venezuela’s president and its state-run oil company, threatening to crimp the nation’s ability to export crude. In Libya, fighters loyal to eastern military commander Khalifa Haftar shelled Tripoli’s port, forcing a halt to shipping and leading to the suspension of cease-fire talks.
Oil is extending its longest rally since January 2019 after surging last week on optimism that the worst economic impacts of the deadly coronavirus had been accounted for. Any disruptions to global supply could go some way to offsetting the demand destruction from the outbreak, just as China and other nations in Asia roll out stimulus packages to cushion the blow.
Oil jumped back above $58 a barrel and was set for the longest run of gains in more than a year as U.S. sanctions on Russia’s largest producer and conflict in Libya shifted the focus to supply threats from virus-driven demand concerns.
The U.S. sanctioned a unit of Russia’s Rosneft PJSC for maintaining ties with Venezuela’s president and its state-run oil company, threatening to crimp the nation’s ability to export crude. In Libya, fighters loyal to eastern military commander Khalifa Haftar shelled Tripoli’s port, forcing a halt to shipping and leading to the suspension of cease-fire talks.
Oil is extending its longest rally since January 2019 after surging last week on optimism that the worst economic impacts of the deadly coronavirus had been accounted for. Any disruptions to global supply could go some way to offsetting the demand destruction from the outbreak, just as China and other nations in Asia roll out stimulus packages to cushion the blow.
#Kuwait posts $7.52bln deficit in period April 2019-January 2020 | ZAWYA MENA Edition
Kuwait posts $7.52bln deficit in period April 2019-January 2020 | ZAWYA MENA Edition:
Kuwait posted a deficit of 2.3 billion Kuwaiti dinars ($7.52 billion) in the period from April 1 to the end of January, after depositing 10% of revenue to its sovereign wealth fund, official data showed on Wednesday.
Kuwait previously said it expected a total deficit of 7.7 billion dinars in the 2019-2020 fiscal year, which ends in March.
The Finance Ministry said the data published on Wednesday was incomplete because of delays in the disclosure of spending by several government agencies.
Kuwait posted a deficit of 2.3 billion Kuwaiti dinars ($7.52 billion) in the period from April 1 to the end of January, after depositing 10% of revenue to its sovereign wealth fund, official data showed on Wednesday.
Kuwait previously said it expected a total deficit of 7.7 billion dinars in the 2019-2020 fiscal year, which ends in March.
The Finance Ministry said the data published on Wednesday was incomplete because of delays in the disclosure of spending by several government agencies.
#Iran oil projects reined in because of lack of funds: minister - Reuters
Iran oil projects reined in because of lack of funds: minister - Reuters:
Iran has had to reduce oil production projects because of a lack of funds and a drop in income from oil exports, Oil Minister Bijan Zanganeh said on Tuesday, according to the official IRNA news agency.
“All attacks are against us and the income from oil exports has been reduced. We have reduced many production projects because we don’t have money at all and side projects have been closed for a long time,” Zanganeh said.
U.S. President Donald Trump pulled out of a multilateral nuclear deal with Iran in 2018 and reimposed sanctions that have hammered the Islamic Republic’s economy and reduced crude oil exports by more than 80%.
Iran has had to reduce oil production projects because of a lack of funds and a drop in income from oil exports, Oil Minister Bijan Zanganeh said on Tuesday, according to the official IRNA news agency.
“All attacks are against us and the income from oil exports has been reduced. We have reduced many production projects because we don’t have money at all and side projects have been closed for a long time,” Zanganeh said.
U.S. President Donald Trump pulled out of a multilateral nuclear deal with Iran in 2018 and reimposed sanctions that have hammered the Islamic Republic’s economy and reduced crude oil exports by more than 80%.
#Dubai property continues to offer among best yields in world, says Savills - Arabianbusiness
Dubai property continues to offer among best yields in world, says Savills - Arabianbusiness:
Despite prime residential rents in Dubai falling by five percent last year, the emirate offers up some of the best yields in the world, according to the latest Savills Prime Index” World Cities report.
Dubai and Kuala Lumpur (four percent) saw the highest drops in rents throughout 2019.
The emirate was also the third cheapest city in the world to buy prime property, at $580 per square foot, ahead only of Cape Town and Kuala Lumpur. This was a result of “oversupply and potential renters have a lot of choice and negotiating power”.
“Land-scarce” Hong Kong took top spot ($4,610 per sq ft) followed by New York ($2,510 per sq ft).
However, despite this, Dubai offered some of the best gross residential yields, way above the global average of 3.2 percent at around 4.5 percent and behind only Los Angeles, Moscow and Cape Town.
Despite prime residential rents in Dubai falling by five percent last year, the emirate offers up some of the best yields in the world, according to the latest Savills Prime Index” World Cities report.
Dubai and Kuala Lumpur (four percent) saw the highest drops in rents throughout 2019.
The emirate was also the third cheapest city in the world to buy prime property, at $580 per square foot, ahead only of Cape Town and Kuala Lumpur. This was a result of “oversupply and potential renters have a lot of choice and negotiating power”.
“Land-scarce” Hong Kong took top spot ($4,610 per sq ft) followed by New York ($2,510 per sq ft).
However, despite this, Dubai offered some of the best gross residential yields, way above the global average of 3.2 percent at around 4.5 percent and behind only Los Angeles, Moscow and Cape Town.
Etisalat reveals $2.4bn annual profits for 2019 - Arabianbusiness
Etisalat reveals $2.4bn annual profits for 2019 - Arabianbusiness:
UAE telecommunications giant Etisalat has announced an AED8.7bn ($2.4bn) profit for 2019.
The one percent increase on the previous year has been attributed to exploring new growth opportunities and the company’s transition to digitalisation.
Obaid Humaid Al Tayer, chairman, Etisalat Group, said: “It has become clear that the paradigm shift in the telecom industry is now in full force. Digital transformation is becoming present in more areas of life, and we have striven to be at the forefront of delivering it.”
Consolidated revenues for the year reached AED52.2bn ($14.2bn; consolidated EBITDA amounted to AED26.4bn ($7.2bn), representing an increase of two percent year-on-year and resulting in an EBITDA margin of 51 percent.
UAE telecommunications giant Etisalat has announced an AED8.7bn ($2.4bn) profit for 2019.
The one percent increase on the previous year has been attributed to exploring new growth opportunities and the company’s transition to digitalisation.
Obaid Humaid Al Tayer, chairman, Etisalat Group, said: “It has become clear that the paradigm shift in the telecom industry is now in full force. Digital transformation is becoming present in more areas of life, and we have striven to be at the forefront of delivering it.”
Consolidated revenues for the year reached AED52.2bn ($14.2bn; consolidated EBITDA amounted to AED26.4bn ($7.2bn), representing an increase of two percent year-on-year and resulting in an EBITDA margin of 51 percent.
China’s Refineries Throttle Back; Deaths Top 2,000: Virus Update - Bloomberg
China’s Refineries Throttle Back; Deaths Top 2,000: Virus Update - Bloomberg:
Hong Kong had a second fatality from the coronavirus while China’s death toll from the outbreak went past 2,000.
All remaining passengers in the Westerdam cruise ship in Cambodia tested negative for the virus and Japan began releasing passengers from a quarantined cruise ship. Chinese oil refineries cut production even further to cope with weak demand.
The number of people infected worldwide exceeded 75,000. The Hubei province at the center of the outbreak reported the fewest number of additional cases since it changed its method for counting infections last week. China’s strict quarantine likely bought the rest of the world several weeks to prepare for the virus, according to the World Health Organization.
Hong Kong had a second fatality from the coronavirus while China’s death toll from the outbreak went past 2,000.
All remaining passengers in the Westerdam cruise ship in Cambodia tested negative for the virus and Japan began releasing passengers from a quarantined cruise ship. Chinese oil refineries cut production even further to cope with weak demand.
The number of people infected worldwide exceeded 75,000. The Hubei province at the center of the outbreak reported the fewest number of additional cases since it changed its method for counting infections last week. China’s strict quarantine likely bought the rest of the world several weeks to prepare for the virus, according to the World Health Organization.
#Saudi Dar Al Arkan starts marketing $300-$400 mln 7-year sukuk - document - Reuters
Saudi Dar Al Arkan starts marketing $300-$400 mln 7-year sukuk - document - Reuters:
Saudi Arabia’s Dar Al Arkan Real Estate Development Co has begun marketing $300-$400 million in seven-year sukuk at 7.375-7.5%, a document from one of the banks leading the deal showed on Wednesday.
Dar Al Arkan hired AlKhair Capital, Citi, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, Mashreqbank, Nomura, Standard Chartered Bank and Warba Bank to lead the deal, which is expected to close later on Wednesday.
The sukuk will be issued through Dar Al Arkan Sukuk Company Ltd and is guaranteed by Dar Al Arkan Real Estate Development.
Saudi Arabia’s Dar Al Arkan Real Estate Development Co has begun marketing $300-$400 million in seven-year sukuk at 7.375-7.5%, a document from one of the banks leading the deal showed on Wednesday.
Dar Al Arkan hired AlKhair Capital, Citi, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, Mashreqbank, Nomura, Standard Chartered Bank and Warba Bank to lead the deal, which is expected to close later on Wednesday.
The sukuk will be issued through Dar Al Arkan Sukuk Company Ltd and is guaranteed by Dar Al Arkan Real Estate Development.
#Qatar Airways ups holding in BA-owner IAG to 25.1% with new $600 million stake - Reuters
Qatar Airways ups holding in BA-owner IAG to 25.1% with new $600 million stake - Reuters:
Qatar Airways has bought a $600 million stake in British Airways-owner IAG (ICAG.L) to increase its holding to 25.1%, advancing its strategy of building a global portfolio of international carriers.
In an endorsement of the Anglo-Spanish group just weeks before its founder Willie Walsh steps down, Qatar said that increasing its stake was evidence of its support for the company and its strategy.
Qatar previously held 21.4% of IAG, which also owns Spanish carriers Iberia and Vueling and Ireland’s Aer Lingus. IAG’s share price has risen by 52% in the last six months.
The state-owned Qatar Airways, one of the Middle East’s biggest, has said its investments in other carriers were mostly for financial purposes.
Qatar Airways has bought a $600 million stake in British Airways-owner IAG (ICAG.L) to increase its holding to 25.1%, advancing its strategy of building a global portfolio of international carriers.
In an endorsement of the Anglo-Spanish group just weeks before its founder Willie Walsh steps down, Qatar said that increasing its stake was evidence of its support for the company and its strategy.
Qatar previously held 21.4% of IAG, which also owns Spanish carriers Iberia and Vueling and Ireland’s Aer Lingus. IAG’s share price has risen by 52% in the last six months.
The state-owned Qatar Airways, one of the Middle East’s biggest, has said its investments in other carriers were mostly for financial purposes.
Oil rises amid hope for short economic hit from coronavirus outbreak - Reuters
Oil rises amid hope for short economic hit from coronavirus outbreak - Reuters:
Oil prices rose on Wednesday, with Brent gaining a seventh straight day, amid broad optimism as new coronavirus cases fell for a second day in China and concerns rose over supply after a U.S. move to cut more Venezuelan crude from the market.
Brent crude LCOc1 was up by 51 cents, or 0.9%, at $58.26 a barrel by 0732 GMT, while U.S. oil CLc1 was up 55 cents, or 1.1%, at $52.60 a barrel.
China is still struggling to get manufacturing going again in the world’s second-largest economy, after imposing stringent city lockdowns and travel restrictions to contain the virus that has now killed more than 2,000 people, but investors remain optimistic that the economic fallout may be short-lived.
S&P Global Ratings said it expected that coronavirus will deliver a “short-term blow” to economic growth in China in the first quarter.
Oil prices rose on Wednesday, with Brent gaining a seventh straight day, amid broad optimism as new coronavirus cases fell for a second day in China and concerns rose over supply after a U.S. move to cut more Venezuelan crude from the market.
Brent crude LCOc1 was up by 51 cents, or 0.9%, at $58.26 a barrel by 0732 GMT, while U.S. oil CLc1 was up 55 cents, or 1.1%, at $52.60 a barrel.
China is still struggling to get manufacturing going again in the world’s second-largest economy, after imposing stringent city lockdowns and travel restrictions to contain the virus that has now killed more than 2,000 people, but investors remain optimistic that the economic fallout may be short-lived.
S&P Global Ratings said it expected that coronavirus will deliver a “short-term blow” to economic growth in China in the first quarter.
MIDEAST STOCKS-Gulf stocks little changed; blue chips down in Dubai - Reuters
MIDEAST STOCKS-Gulf stocks little changed; blue chips down in Dubai - Reuters:
Most major Gulf stock markets traded in positive territory early on Tuesday, led by financial stocks and corporate announcements, but Dubai’s index retreated on a sell-off by blue chips.
Saudi Arabia’s benchmark index rose 0.4%, driven by a 1.1% gain in Saudi Basic Industries and a 0.3% rise in Saudi Aramco.
Aramco Trading Co has sealed a new deal to secure long-term crude oil supplies from state-run Kuwait Petroleum Corp that can be processed at refineries owned by Saudi Aramco in Asia, Reuters reported, citing trade sources.
Shares in Al Moammar Information Systems Co jumped 8.2% to 50.9 riyals, its biggest intraday-gain since April, after it posted a rise in annual profit.
Most major Gulf stock markets traded in positive territory early on Tuesday, led by financial stocks and corporate announcements, but Dubai’s index retreated on a sell-off by blue chips.
Saudi Arabia’s benchmark index rose 0.4%, driven by a 1.1% gain in Saudi Basic Industries and a 0.3% rise in Saudi Aramco.
Aramco Trading Co has sealed a new deal to secure long-term crude oil supplies from state-run Kuwait Petroleum Corp that can be processed at refineries owned by Saudi Aramco in Asia, Reuters reported, citing trade sources.
Shares in Al Moammar Information Systems Co jumped 8.2% to 50.9 riyals, its biggest intraday-gain since April, after it posted a rise in annual profit.