Oil sinks 4% on demand concerns as coronavirus spreads - Reuters:
Oil prices slumped by nearly 4% on Monday as the rapid spread of the coronavirus in countries outside China added to investor concerns over the effect on demand for crude.
Global equities also extended losses as worries about the impact of the virus grew, with the number of cases jumping in Iran, Italy and South Korea.
Brent crude LCOc1 futures fell $2.20, or 3.8%, to settle at $56.30 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $1.95, or 3.7%, to settle at $51.43 a barrel.
“The reports of the coronavirus spreading is raising more fears of demand destruction,” said Phil Flynn, an analyst at Price Futures Group in Chicago. “When we saw the big move down in the stock market, oil traders were selling first and asking questions later.”
Monday 24 February 2020
#SaudiArabia to Restore Postal Service to #Qatar Amid Rift - Bloomberg
Saudi Arabia to Restore Postal Service to Qatar Amid Rift - Bloomberg:
Saudi Arabia and Egypt are resuming postal service to Qatar -- frozen during a diplomatic rift that’s lasted nearly three years -- following a similar move by the United Arab Emirates.
It wasn’t immediately clear whether the move indicated a broader mending of ties between the states, mired since June 2017 in a dispute that’s hurt trade and split the six-nation Gulf Cooperation Council at a time of heightened tensions with Iran.
“The decision by Saudi Arabia to resume international postal exchanges with Qatar via Oman shows that countries are taking a constructive approach to this matter,” a spokesperson for the UN’s Universal Postal Union said Monday.
Saudi Post will resume mail service to Qatar from Tuesday, a spokesman for the company said. Egypt restored it from Feb. 17, according to messages sent by the countries to the Universal Postal Union for global distribution to postal operators. Both countries, like the U.A.E., will be routing mail through Oman; there are no direct flights between the countries and Qatar.
Saudi Arabia and Egypt are resuming postal service to Qatar -- frozen during a diplomatic rift that’s lasted nearly three years -- following a similar move by the United Arab Emirates.
It wasn’t immediately clear whether the move indicated a broader mending of ties between the states, mired since June 2017 in a dispute that’s hurt trade and split the six-nation Gulf Cooperation Council at a time of heightened tensions with Iran.
“The decision by Saudi Arabia to resume international postal exchanges with Qatar via Oman shows that countries are taking a constructive approach to this matter,” a spokesperson for the UN’s Universal Postal Union said Monday.
Saudi Post will resume mail service to Qatar from Tuesday, a spokesman for the company said. Egypt restored it from Feb. 17, according to messages sent by the countries to the Universal Postal Union for global distribution to postal operators. Both countries, like the U.A.E., will be routing mail through Oman; there are no direct flights between the countries and Qatar.
#Oman’s New Sultan Embarks on Long Road to Economic Recovery - Bloomberg
Oman’s New Sultan Embarks on Long Road to Economic Recovery - Bloomberg:
Oman’s new ruler is embarking on possibly unpopular steps to improve the Gulf nation’s finances, in a test of his authority just weeks after succeeding a cousin who had ruled for five decades.
The largest Arab crude producer outside OPEC plans to lower its debt and review state companies, Sultan Haitham bin Tariq Al Said said on Sunday in his first televised address. Oman has posted deficits since oil prices slumped in 2014, with this year’s shortfall projected at 8.4% of gross domestic product and the International Monetary Fund forecasting no surpluses until at least 2024.
Resources will be redirected to raise revenue, the sultan said, and there will be a “complete revision” of activities and employment at government companies to improve their performance.
“These are the types of rationalizations that have been planned for some time, and are necessary,” said Richard Segal, senior analyst at Manulife Investment in London. The first priority would be to “slow the growth in debt,” he said.
Oman’s new ruler is embarking on possibly unpopular steps to improve the Gulf nation’s finances, in a test of his authority just weeks after succeeding a cousin who had ruled for five decades.
The largest Arab crude producer outside OPEC plans to lower its debt and review state companies, Sultan Haitham bin Tariq Al Said said on Sunday in his first televised address. Oman has posted deficits since oil prices slumped in 2014, with this year’s shortfall projected at 8.4% of gross domestic product and the International Monetary Fund forecasting no surpluses until at least 2024.
Resources will be redirected to raise revenue, the sultan said, and there will be a “complete revision” of activities and employment at government companies to improve their performance.
“These are the types of rationalizations that have been planned for some time, and are necessary,” said Richard Segal, senior analyst at Manulife Investment in London. The first priority would be to “slow the growth in debt,” he said.
Here's why Middle East investors are buying UK properties | ZAWYA MENA Edition
Here's why Middle East investors are buying UK properties | ZAWYA MENA Edition:
More and more Middle East investors are being drawn to the UK market with a strong interest in central and outer London areas, real estate consultancy firm Knight Frank said.
“We continue to see strong interest in central and outer London areas. Country houses with easy access into London have appeal as second homes, however, central London is where we see the most frequent demand for investment,” Henry Faun, Head of London International Project Sales at Knight Frank Middle East told Zawya.
Regional investors were ranked in the third place in buyer rankings, for snapping country houses of more than £5 million ($6.45 million), the global real estate consultant said, noting that UK and European buyers maintained their positions in first and second place.
In 2019, the market share of Middle East investors in the £5 million-plus sector went up three times compared to 2018.
More and more Middle East investors are being drawn to the UK market with a strong interest in central and outer London areas, real estate consultancy firm Knight Frank said.
“We continue to see strong interest in central and outer London areas. Country houses with easy access into London have appeal as second homes, however, central London is where we see the most frequent demand for investment,” Henry Faun, Head of London International Project Sales at Knight Frank Middle East told Zawya.
Regional investors were ranked in the third place in buyer rankings, for snapping country houses of more than £5 million ($6.45 million), the global real estate consultant said, noting that UK and European buyers maintained their positions in first and second place.
In 2019, the market share of Middle East investors in the £5 million-plus sector went up three times compared to 2018.
The Carlyle Group to set up MENA headquarters in #AbuDhabi | ZAWYA MENA Edition
The Carlyle Group to set up MENA headquarters in Abu Dhabi | ZAWYA MENA Edition:
Global private equity firm The Carlyle Group will open its regional headquarters at Abu Dhabi Global Market as it looks to grow its presence in Middle East and North Africa region.
The buyout firm with $222 billion of assets under management has partnered with Abu Dhabi Catalyst Partners, a joint venture between Mubadala Investment Company and Falcon Edge Capital, to build its regional presence.
Abu Dhabi Catalyst Partners was launched in April 2019 to provide an operational base for firms looking to expand their global footprint in Abu Dhabi.
“We are pleased to have The Carlyle Group establish their regional headquarters at ADGM Square and we are confident that their presence in Abu Dhabi will support their efforts to grow their business globally,” Waleed Al Mokarrab Al Muhairi, Mubadala Deputy Group CEO said in a statement.
Global private equity firm The Carlyle Group will open its regional headquarters at Abu Dhabi Global Market as it looks to grow its presence in Middle East and North Africa region.
The buyout firm with $222 billion of assets under management has partnered with Abu Dhabi Catalyst Partners, a joint venture between Mubadala Investment Company and Falcon Edge Capital, to build its regional presence.
Abu Dhabi Catalyst Partners was launched in April 2019 to provide an operational base for firms looking to expand their global footprint in Abu Dhabi.
“We are pleased to have The Carlyle Group establish their regional headquarters at ADGM Square and we are confident that their presence in Abu Dhabi will support their efforts to grow their business globally,” Waleed Al Mokarrab Al Muhairi, Mubadala Deputy Group CEO said in a statement.
NMC Health: Shares of Shetty's #UAE Hospital Chain to Fall Further - Bloomberg
NMC Health: Shares of Shetty's UAE Hospital Chain to Fall Further - Bloomberg:
The Jefferies International Ltd. analyst who was ahead of the pack in predicting a slump in NMC Health Plc’s shares now says the stock has a lot further to fall.
James Vane-Tempest cut his price target on the hospital operator to 500 pence, or 42% below Friday’s close, from 1,300 pence previously. The target is the lowest among analysts tracked by Bloomberg.
The multiple of earnings that investors are willing to pay for NMC has fallen given the concerns raised by short seller Muddy Waters Capital LLC, Vane-Tempest wrote in a report Monday. The analyst, who has rated the stock underperform since November 2018, said his latest review shows that growth at the Abu Dhabi-based company’s clinics is slower than it appears, and that its cash position is tightening.
The analysis adds to the turmoil around NMC since Muddy Waters alleged in December the company manipulated its balance sheet and inflated the prices of assets it purchased. NMC has said the allegations are false, and that a committee of independent directors plans to publish findings of a review it commissioned before annual results are announced. In recent years, the company has published earnings in early to mid March.
The Jefferies International Ltd. analyst who was ahead of the pack in predicting a slump in NMC Health Plc’s shares now says the stock has a lot further to fall.
James Vane-Tempest cut his price target on the hospital operator to 500 pence, or 42% below Friday’s close, from 1,300 pence previously. The target is the lowest among analysts tracked by Bloomberg.
The multiple of earnings that investors are willing to pay for NMC has fallen given the concerns raised by short seller Muddy Waters Capital LLC, Vane-Tempest wrote in a report Monday. The analyst, who has rated the stock underperform since November 2018, said his latest review shows that growth at the Abu Dhabi-based company’s clinics is slower than it appears, and that its cash position is tightening.
The analysis adds to the turmoil around NMC since Muddy Waters alleged in December the company manipulated its balance sheet and inflated the prices of assets it purchased. NMC has said the allegations are false, and that a committee of independent directors plans to publish findings of a review it commissioned before annual results are announced. In recent years, the company has published earnings in early to mid March.
UPDATE 1- #UAE's FAB to decide on Bank Audi's Egypt business acquisition in Q2 - Reuters
UPDATE 1-UAE's FAB to decide on Bank Audi's Egypt business acquisition in Q2 - Reuters:
First Abu Dhabi Bank expects to decide in the second quarter whether it will buy Bank Audi’s Egyptian business, a senior executive said on Monday, as it eyes expansion in the Arab world’s most populous nation.
FAB, which is the biggest lender in the United Arab Emirates, has identified Saudi Arabia and Egypt as two key markets for overseas expansion, its chief financial officer, James Burdett, told reporters.
“We’re interested in growing mainly in KSA (Kingdom of Saudi Arabia) and in Egypt - both being franchise markets, both have a very close relationship with the UAE, both have very big GDPs and we believe there are good opportunities there,” he said.
Karim Karoui, group head of subsidiaries, strategy & transformation, told reporters that a decision will be made after FAB completes due-diligence on Bank Audi Egypt, a subsidiary of Lebanon’s Bank Audi. Reuters reported last month, citing sources, that FAB was in talks to potentially acquire the business.
First Abu Dhabi Bank expects to decide in the second quarter whether it will buy Bank Audi’s Egyptian business, a senior executive said on Monday, as it eyes expansion in the Arab world’s most populous nation.
FAB, which is the biggest lender in the United Arab Emirates, has identified Saudi Arabia and Egypt as two key markets for overseas expansion, its chief financial officer, James Burdett, told reporters.
“We’re interested in growing mainly in KSA (Kingdom of Saudi Arabia) and in Egypt - both being franchise markets, both have a very close relationship with the UAE, both have very big GDPs and we believe there are good opportunities there,” he said.
Karim Karoui, group head of subsidiaries, strategy & transformation, told reporters that a decision will be made after FAB completes due-diligence on Bank Audi Egypt, a subsidiary of Lebanon’s Bank Audi. Reuters reported last month, citing sources, that FAB was in talks to potentially acquire the business.
Oil slumps 5% on demand concerns as coronavirus spreads - Reuters
Oil slumps 5% on demand concerns as coronavirus spreads - Reuters:
Oil prices slumped by 5% on Monday as the rapid spread of the coronavirus in countries outside China added to investor concerns over the effect on demand for crude.
Global equities also extended losses as worries about the impact of the virus grew, with the number of cases jumping in Iran, Italy and South Korea.
Brent crude futures fell $2.96, or 5.1%, to $55.54 a barrel. U.S. West Texas Intermediate (WTI) crude futures dropped by $2.58, or 4.8%, to $50.80 a barrel.
“As the virus spreads globally, additional downside revisions in oil demand for this year may be required,” Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.
Oil prices slumped by 5% on Monday as the rapid spread of the coronavirus in countries outside China added to investor concerns over the effect on demand for crude.
Global equities also extended losses as worries about the impact of the virus grew, with the number of cases jumping in Iran, Italy and South Korea.
Brent crude futures fell $2.96, or 5.1%, to $55.54 a barrel. U.S. West Texas Intermediate (WTI) crude futures dropped by $2.58, or 4.8%, to $50.80 a barrel.
“As the virus spreads globally, additional downside revisions in oil demand for this year may be required,” Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.
MIDEAST STOCKS-Middle Eastern stocks slide on coronavirus jitters - Reuters
MIDEAST STOCKS-Middle Eastern stocks slide on coronavirus jitters - Reuters:
Stock markets in the Middle East suffered
sharp losses on Monday, with Saudi shares falling the most, as
the rapid spread of coronavirus cases outside China darkened the
outlook for world growth.
Brent crude was down $2.37, or 4.1%, to $56.13 a
barrel by 1145 GMT.
Global shares also extended losses as worries about the
impact of the virus grew, with the number of infections jumping
in Iran, Italy and South Korea.
Saudi Arabia's benchmark index declined 3%, its
biggest fall since May 13 last year when two of its oil tankers
were attacked off the coast of the United Arab Emirates.
Al Rajhi Bank slid 3.7% and petrochemical maker
Saudi Basic Industries dived 4%. Oil giant Saudi
Aramco was down 1.9%, at 33.4 riyals.
Stock markets in the Middle East suffered
sharp losses on Monday, with Saudi shares falling the most, as
the rapid spread of coronavirus cases outside China darkened the
outlook for world growth.
Brent crude was down $2.37, or 4.1%, to $56.13 a
barrel by 1145 GMT.
Global shares also extended losses as worries about the
impact of the virus grew, with the number of infections jumping
in Iran, Italy and South Korea.
Saudi Arabia's benchmark index declined 3%, its
biggest fall since May 13 last year when two of its oil tankers
were attacked off the coast of the United Arab Emirates.
Al Rajhi Bank slid 3.7% and petrochemical maker
Saudi Basic Industries dived 4%. Oil giant Saudi
Aramco was down 1.9%, at 33.4 riyals.
HSBC’s #SaudiArabia Affiliate Seeks to Boost Corporate Lending - Bloomberg
HSBC’s Saudi Arabia Affiliate Seeks to Boost Corporate Lending - Bloomberg:
HSBC Holdings Plc’s affiliate in Saudi Arabia is ready to “compete aggressively” to regain market share in corporate lending after acquiring Alawwal Bank.
“We have no appetite whatsoever to continue to lose market share,” Saudi British Bank’s Managing Director David Dew said in an interview in Riyadh. “For SABB, margins as a whole have peaked for this particular interest rate cycle and are now on a downward trend.”
The lender also plans to boost mortgages this year, easing its so far conservative approach to home loans, he said. Mortgages in the kingdom are soaring as the government seeks to grow home ownership. The number of home loans in the kingdom rose almost threefold in 2019 from a year earlier, according to central bank data.
“We’re looking to move our risk appetite to some extent,” Dew said. “It’s unlikely to go fully in line with where the overall market seems to be, but we do expect to see some mortgage growth in SABB in 2020.”
HSBC Holdings Plc’s affiliate in Saudi Arabia is ready to “compete aggressively” to regain market share in corporate lending after acquiring Alawwal Bank.
“We have no appetite whatsoever to continue to lose market share,” Saudi British Bank’s Managing Director David Dew said in an interview in Riyadh. “For SABB, margins as a whole have peaked for this particular interest rate cycle and are now on a downward trend.”
The lender also plans to boost mortgages this year, easing its so far conservative approach to home loans, he said. Mortgages in the kingdom are soaring as the government seeks to grow home ownership. The number of home loans in the kingdom rose almost threefold in 2019 from a year earlier, according to central bank data.
“We’re looking to move our risk appetite to some extent,” Dew said. “It’s unlikely to go fully in line with where the overall market seems to be, but we do expect to see some mortgage growth in SABB in 2020.”
GP Global announces plans to expand into Americas - Reuters
GP Global announces plans to expand into Americas - Reuters:
United Arab Emirates-based oil trader and marine fuel supplier GP Global plans to expand its trading operations to the Americas following the appointment of Gene Owen as president of trading, the company said in a statement on Monday.
“In addition to strengthening the company’s capabilities in the important Americas market, the appointment of Mr. Owen will also further bolster GP Global’s international Bunker and Trading division,” the company said.
Owen joins GP Global from marine fuel supplier Bomin Bunker Oil Corp., a unit of Bomin Group under Germany-based oil trader Mabanaft, where he was president and chief executive for the past eight years, the statement said.
United Arab Emirates-based oil trader and marine fuel supplier GP Global plans to expand its trading operations to the Americas following the appointment of Gene Owen as president of trading, the company said in a statement on Monday.
“In addition to strengthening the company’s capabilities in the important Americas market, the appointment of Mr. Owen will also further bolster GP Global’s international Bunker and Trading division,” the company said.
Owen joins GP Global from marine fuel supplier Bomin Bunker Oil Corp., a unit of Bomin Group under Germany-based oil trader Mabanaft, where he was president and chief executive for the past eight years, the statement said.
#Oman's Sultan Haitham vows to reduce public debt, boost employment - Arabianbusiness
Oman's Sultan Haitham vows to reduce public debt, boost employment - Arabianbusiness:
In his speech marking the end of a 40-day mourning period for his predecessor, Omani Sultan Haitham bin Tariq al-Said has vowed to reduce public debt and restructure public institutions and companies.
According to statistics from S&P Global Ratings, Oman’s debt to oil ratio rose to nearly 60 percent in 2019 – compared to 15 percent in 2015 – and could go as high as 70 percent by 2022.
“We will also be committed to directing our financial resources in the most idea manner which will ensure the reduction of debt and the increase of income,” Sultan Haitham said, according to a transcript of the televised address published by local media.
“We will direct the government, with all its sectors, to implement a more efficient system of management which places, on top of its priorities, financial balance, economic diversification, the sustainability of the national economy, besides developing all relevant laws and regulations,” he added.
In his speech marking the end of a 40-day mourning period for his predecessor, Omani Sultan Haitham bin Tariq al-Said has vowed to reduce public debt and restructure public institutions and companies.
According to statistics from S&P Global Ratings, Oman’s debt to oil ratio rose to nearly 60 percent in 2019 – compared to 15 percent in 2015 – and could go as high as 70 percent by 2022.
“We will also be committed to directing our financial resources in the most idea manner which will ensure the reduction of debt and the increase of income,” Sultan Haitham said, according to a transcript of the televised address published by local media.
“We will direct the government, with all its sectors, to implement a more efficient system of management which places, on top of its priorities, financial balance, economic diversification, the sustainability of the national economy, besides developing all relevant laws and regulations,” he added.
REFILE- #UAE's Majid Al Futtaim posts modest annual growth, sees better 2020 - Reuters
REFILE-UAE's Majid Al Futtaim posts modest annual growth, sees better 2020 - Reuters:
Dubai-based retail developer Majid Al Futtaim said on Monday its annual EBITDA and revenue edged a tick higher, sharply slowing from the pace of growth seen in 2018, amid challenging conditions in its key Middle East markets.
Earnings before interest, tax, depreciation and amortization (EBITDA) for the year ended Dec. 31, 2019 rose to 4.6 billion dirhams ($1.25 billion), a 1% rise from the prior year.
Revenue also climbed 1% to 35.2 billion dirhams, compared with an 8% growth in the year-ago period.
The retail sector in Dubai - one of the world’s leading shopping capitals - has taken a hit from lower property rates and oil prices.
Dubai-based retail developer Majid Al Futtaim said on Monday its annual EBITDA and revenue edged a tick higher, sharply slowing from the pace of growth seen in 2018, amid challenging conditions in its key Middle East markets.
Earnings before interest, tax, depreciation and amortization (EBITDA) for the year ended Dec. 31, 2019 rose to 4.6 billion dirhams ($1.25 billion), a 1% rise from the prior year.
Revenue also climbed 1% to 35.2 billion dirhams, compared with an 8% growth in the year-ago period.
The retail sector in Dubai - one of the world’s leading shopping capitals - has taken a hit from lower property rates and oil prices.
Oil prices slide over 3% on demand concerns as virus spreads - Reuters
Oil prices slide over 3% on demand concerns as virus spreads - Reuters:
Oil prices tumbled by more than 3% on Monday, as the rapid spread of a coronavirus in several countries outside China left investors concerned about a hit to demand.
Global shares also extended losses as worries about the impact of the new virus grew, with the number of infections jumping in Iran, Italy and South Korea.
Brent crude was down $2.16, or 3.7%, to $56.34 barrel by 0935 GMT. U.S. crude futures fell by $1.93, or 3.6%, to $51.45.
“Oil prices will remain vulnerable here as energy traders were not pricing in the coronavirus becoming a pandemic,” said Edward Moya, senior market analyst at OANDA.
Oil prices tumbled by more than 3% on Monday, as the rapid spread of a coronavirus in several countries outside China left investors concerned about a hit to demand.
Global shares also extended losses as worries about the impact of the new virus grew, with the number of infections jumping in Iran, Italy and South Korea.
Brent crude was down $2.16, or 3.7%, to $56.34 barrel by 0935 GMT. U.S. crude futures fell by $1.93, or 3.6%, to $51.45.
“Oil prices will remain vulnerable here as energy traders were not pricing in the coronavirus becoming a pandemic,” said Edward Moya, senior market analyst at OANDA.
MIDEAST STOCKS- #Saudi leads Gulf lower as coronavirus fears escalate - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi leads Gulf lower as coronavirus fears escalate - Agricultural Commodities - Reuters:
Most Gulf stock markets opened lower on Monday, tracking weakness in global shares and oil prices, as the rapid spread of a coronavirus in several countries outside China soured sentiment.
Global shares extended losses as concerns about the impact of the virus grew, with sharp rises in infections in South Korea, Italy and Iran.
Brent crude fell by $1.42, or 2.4%, to $57.08 a barrel by 0552 GMT, but off a low of $56.53 touched earlier.
Saudi Arabia’s benchmark index declined 1.2%, dragged down by losses at banking shares. Al Rajhi Bank fell 1.1% while Riyad Bank slid 1.9%.
Amongst others, Saudi Basic Industries, the world’s fourth-biggest petrochemicals maker, lost 2.3%.
Most Gulf stock markets opened lower on Monday, tracking weakness in global shares and oil prices, as the rapid spread of a coronavirus in several countries outside China soured sentiment.
Global shares extended losses as concerns about the impact of the virus grew, with sharp rises in infections in South Korea, Italy and Iran.
Brent crude fell by $1.42, or 2.4%, to $57.08 a barrel by 0552 GMT, but off a low of $56.53 touched earlier.
Saudi Arabia’s benchmark index declined 1.2%, dragged down by losses at banking shares. Al Rajhi Bank fell 1.1% while Riyad Bank slid 1.9%.
Amongst others, Saudi Basic Industries, the world’s fourth-biggest petrochemicals maker, lost 2.3%.