Oil falls for third day as virus fears accelerate on U.S. warning - Reuters:
Crude prices fell about 3% on Tuesday, dropping for a third day, as concerns about the spread of the coronavirus and its impact on oil demand outweighed OPEC output cuts and Libyan supply losses.
The market sell-off accelerated after the U.S. Centers for Disease Control and Prevention said Americans should begin to prepare for community spread of the new coronavirus after reports this week of new cases in several more countries.
Stocks across the globe fell on Tuesday to their lowest since early December and the benchmark U.S. debt yield hit a record low on concerns about the economic hit of the spread of the virus. [MKTS/GLOB]
Brent crude fell $1.35, or 2.4%, to settle at $54.95 a barrel. U.S. West Texas Intermediate crude dropped $1.53, or 3%, to settle at $49.90 a barrel.
Tuesday 25 February 2020
U.S. Push to Pry Open Gulf Airspace for Qatar Hits Resistance - Bloomberg
U.S. Push to Pry Open Gulf Airspace for Qatar Hits Resistance - Bloomberg:
Saudi Arabia and its Arab allies are resisting a U.S. push to open their airspace to Qatar and end the natural-gas powerhouse’s heavy reliance on Iran’s skies, according to officials familiar with the contacts.
They figure they stand a better chance of extracting bigger concessions from Qatar, which they’ve been boycotting for nearly three years, the closer it gets to hosting the 2022 World Cup soccer tournament, according to one official familiar with the matter. Like three others, the official spoke on condition of anonymity to discuss confidential conversations.
Washington, the people said, intensified its efforts to mend the Gulf rift after last year’s attacks on energy interests in the Persian Gulf, which briefly disrupted Saudi oil production and raised the threat of open conflict between the U.S. and Iran. Opening airspace has been a key point on the agenda of regular meetings between U.S. and Saudi officials in Washington and the Gulf, even as broader reconciliation overtures between Arab countries have stalled.
Qatar has depended on Iranian skies at great cost ever since Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed diplomatic and trade ties in June 2017, forcing it to cut some flights and reroute others. Washington sees airspace as a possible way to begin a broader detente, the officials said, though it’s not clear whether this would mean restarting direct flights to Doha or simply allowing flyovers.
Saudi Arabia and its Arab allies are resisting a U.S. push to open their airspace to Qatar and end the natural-gas powerhouse’s heavy reliance on Iran’s skies, according to officials familiar with the contacts.
They figure they stand a better chance of extracting bigger concessions from Qatar, which they’ve been boycotting for nearly three years, the closer it gets to hosting the 2022 World Cup soccer tournament, according to one official familiar with the matter. Like three others, the official spoke on condition of anonymity to discuss confidential conversations.
Washington, the people said, intensified its efforts to mend the Gulf rift after last year’s attacks on energy interests in the Persian Gulf, which briefly disrupted Saudi oil production and raised the threat of open conflict between the U.S. and Iran. Opening airspace has been a key point on the agenda of regular meetings between U.S. and Saudi officials in Washington and the Gulf, even as broader reconciliation overtures between Arab countries have stalled.
Qatar has depended on Iranian skies at great cost ever since Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed diplomatic and trade ties in June 2017, forcing it to cut some flights and reroute others. Washington sees airspace as a possible way to begin a broader detente, the officials said, though it’s not clear whether this would mean restarting direct flights to Doha or simply allowing flyovers.
#Saudi ex-energy minister bounces back as investment chief - Reuters
Saudi ex-energy minister bounces back as investment chief - Reuters:
The man sacked as Saudi Arabia’s energy minister in September has been tapped to head a new investment ministry, in a cabinet reshuffle announced on Tuesday that also created ministries for tourism and sports.
Khalid al-Falih, who previously chaired state oil company Saudi Aramco and oversaw more than half the economy of the world’s top oil exporter, was widely seen as having fallen out of favor when he was removed from the energy ministry.
Attracting billions of dollars in foreign investment is key to ambitious plans championed by de facto ruler Crown Prince Mohammed bin Salman to end the economy’s dependence on crude exports and open up its long-cloistered society.
According to royal orders published in state media, Falih’s new ministry replaces the Saudi Arabian General Investment Authority (SAGIA), which had been responsible for issuing investment licenses to foreign companies but did not control other key regulations.
The man sacked as Saudi Arabia’s energy minister in September has been tapped to head a new investment ministry, in a cabinet reshuffle announced on Tuesday that also created ministries for tourism and sports.
Khalid al-Falih, who previously chaired state oil company Saudi Aramco and oversaw more than half the economy of the world’s top oil exporter, was widely seen as having fallen out of favor when he was removed from the energy ministry.
Attracting billions of dollars in foreign investment is key to ambitious plans championed by de facto ruler Crown Prince Mohammed bin Salman to end the economy’s dependence on crude exports and open up its long-cloistered society.
According to royal orders published in state media, Falih’s new ministry replaces the Saudi Arabian General Investment Authority (SAGIA), which had been responsible for issuing investment licenses to foreign companies but did not control other key regulations.
RPT-American Airlines, #Qatar Airways sign strategic partnership, codeshare deal - Reuters
RPT-American Airlines, Qatar Airways sign strategic partnership, codeshare deal - Reuters:
American Airlines Group Inc said Tuesday it has signed a strategic partnership deal with Qatar Airways and is reviving its codeshare agreement.
The largest U.S. airline also said it is considering launching service from the United States to Doha.
Starting in 2015, the largest U.S. carriers argued their Gulf rivals were being unfairly subsidized by their governments, distorting competition and costing U.S. jobs - something the Gulf carriers deny.
“The issues that led to the suspension of our partnership two years ago have been addressed, and we believe resuming our codeshare agreement will allow us to provide service to markets that our customers, team members and shareholders value,” said American Chairman and Chief Executive Doug Parker in a statement.
American Airlines Group Inc said Tuesday it has signed a strategic partnership deal with Qatar Airways and is reviving its codeshare agreement.
The largest U.S. airline also said it is considering launching service from the United States to Doha.
Starting in 2015, the largest U.S. carriers argued their Gulf rivals were being unfairly subsidized by their governments, distorting competition and costing U.S. jobs - something the Gulf carriers deny.
“The issues that led to the suspension of our partnership two years ago have been addressed, and we believe resuming our codeshare agreement will allow us to provide service to markets that our customers, team members and shareholders value,” said American Chairman and Chief Executive Doug Parker in a statement.
NMC Health founder BR Shetty pledges 7m shares against debt - Arabianbusiness
NMC Health founder BR Shetty pledges 7m shares against debt - Arabianbusiness:
NMC Health founder BR Shetty has pledged 7 million of the company’s shares as security for debt, according to a statement released by his holding company on Monday.
In a filing to the London Stock Exchange, BRS International said that the Indian billionaire currently has a 9.81 percent interest in the UAE healthcare group.
It said Shetty had pledged the shares to Goldman Sachs as part of a funded equity collar transaction, a complex structure used to help to build a stake in a company.
Shetty resigned as NMC’s co-chairman last week following a slump in its share price on doubts about the shareholdings of its major investors.
The stock has lost 68 percent since a Muddy Waters report on December 17 and is the worst performer this year in the UK’s benchmark FTSE 100 Index. It jumped on February 10 after the company said it received preliminary takeover approaches.
NMC Health founder BR Shetty has pledged 7 million of the company’s shares as security for debt, according to a statement released by his holding company on Monday.
In a filing to the London Stock Exchange, BRS International said that the Indian billionaire currently has a 9.81 percent interest in the UAE healthcare group.
It said Shetty had pledged the shares to Goldman Sachs as part of a funded equity collar transaction, a complex structure used to help to build a stake in a company.
Shetty resigned as NMC’s co-chairman last week following a slump in its share price on doubts about the shareholdings of its major investors.
The stock has lost 68 percent since a Muddy Waters report on December 17 and is the worst performer this year in the UK’s benchmark FTSE 100 Index. It jumped on February 10 after the company said it received preliminary takeover approaches.
#UAE's largest bank approves $2.1bn cash dividends for 2019 - Arabianbusiness
UAE's largest bank approves $2.1bn cash dividends for 2019 - Arabianbusiness:
First Abu Dhabi Bank, the UAE's largest bank, has approved the distribution of cash dividends of more than AED8 billion ($2.1 billion) for the financial year ending December 31.
Its general assembly meeting in Abu Dhabi approved the distribution of 74 percent cash dividends, implying total cash dividends of AED8.08 billion.
The meeting also saw the election of new board members, increasing the size of FAB's board from nine to 11 members.
Jassim Mohammed Buatabh Al Zaabi and Dr Sultan bin Ahmad Sultan Al Jaber, Waleed Al Mokarrab Al Muhairi and Abdulhamid Saeed were named as the new members joining the board for a three-year term.
Leaving the board after completing their terms are Khaldoon Khalifa Al Mubarak and Nasser Ahmed Khalifa Ahmed Alsowaidi, a FAB statement noted.
First Abu Dhabi Bank, the UAE's largest bank, has approved the distribution of cash dividends of more than AED8 billion ($2.1 billion) for the financial year ending December 31.
Its general assembly meeting in Abu Dhabi approved the distribution of 74 percent cash dividends, implying total cash dividends of AED8.08 billion.
The meeting also saw the election of new board members, increasing the size of FAB's board from nine to 11 members.
Jassim Mohammed Buatabh Al Zaabi and Dr Sultan bin Ahmad Sultan Al Jaber, Waleed Al Mokarrab Al Muhairi and Abdulhamid Saeed were named as the new members joining the board for a three-year term.
Leaving the board after completing their terms are Khaldoon Khalifa Al Mubarak and Nasser Ahmed Khalifa Ahmed Alsowaidi, a FAB statement noted.
Oil slips for 3rd day as virus fears outweigh supply cuts - Reuters
Oil slips for 3rd day as virus fears outweigh supply cuts - Reuters:
Oil fell below $56 a barrel on Tuesday, dropping for a third day, as concerns about the spread of the coronavirus and its impact on oil demand outweighed OPEC output cuts and Libyan supply losses.
Crude fell almost 4% on Monday, with other commodities also reporting losses while U.S. and European equities suffered their steepest declines since mid-2016 on concern the coronavirus outbreak could turn into a pandemic.
Brent crude fell 83 cents to $55.47 a barrel by 12:33 p.m. EST. U.S. West Texas Intermediate crude slipped 91 cents to $50.52.
“Demand concerns are wiping out all of the gains we have made over the last few weeks,” said Bob Yawger, director of energy futures at Mizuho in New York. “This is not a situation that is going to suddenly get better.”
Oil fell below $56 a barrel on Tuesday, dropping for a third day, as concerns about the spread of the coronavirus and its impact on oil demand outweighed OPEC output cuts and Libyan supply losses.
Crude fell almost 4% on Monday, with other commodities also reporting losses while U.S. and European equities suffered their steepest declines since mid-2016 on concern the coronavirus outbreak could turn into a pandemic.
Brent crude fell 83 cents to $55.47 a barrel by 12:33 p.m. EST. U.S. West Texas Intermediate crude slipped 91 cents to $50.52.
“Demand concerns are wiping out all of the gains we have made over the last few weeks,” said Bob Yawger, director of energy futures at Mizuho in New York. “This is not a situation that is going to suddenly get better.”
#SaudiArabia’s former energy minister returns in cabinet reshuffle | Financial Times
Saudi Arabia’s former energy minister returns in cabinet reshuffle | Financial Times:
Khalid al-Falih, who was removed from his position as Saudi Arabia’s energy minister last year, has returned to lead a new government ministry for investment as part of a cabinet reshuffle announced on Tuesday.
The state news agency published a series of royal decrees that also announced the creation of new ministries for sports, tourism and human resources as well as new government appointments.
Until last year, Mr Falih was one of the highest ranking officials in the kingdom. An oil industry veteran for decades, he oversaw a Saudi super-ministry that straddled energy, industry and mining.
But his inability to deliver a rapid overhaul of industrial strategy and a cautious approach to the stock market offering of Saudi Aramco - much sought after by Crown Prince Mohammed bin Salman - were among reasons he fell from grace in a dramatic fashion. Within a few days in September he lost a series of positions including his role as the head of oil policy and the chairman of the state energy giant, moves that revealed the ruthless nature of governance in the kingdom.
Khalid al-Falih, who was removed from his position as Saudi Arabia’s energy minister last year, has returned to lead a new government ministry for investment as part of a cabinet reshuffle announced on Tuesday.
The state news agency published a series of royal decrees that also announced the creation of new ministries for sports, tourism and human resources as well as new government appointments.
Until last year, Mr Falih was one of the highest ranking officials in the kingdom. An oil industry veteran for decades, he oversaw a Saudi super-ministry that straddled energy, industry and mining.
But his inability to deliver a rapid overhaul of industrial strategy and a cautious approach to the stock market offering of Saudi Aramco - much sought after by Crown Prince Mohammed bin Salman - were among reasons he fell from grace in a dramatic fashion. Within a few days in September he lost a series of positions including his role as the head of oil policy and the chairman of the state energy giant, moves that revealed the ruthless nature of governance in the kingdom.
MIDEAST STOCKS-Most Mideast stocks slip as virus fears continue - Agricultural Commodities - Reuters
MIDEAST STOCKS-Most Mideast stocks slip as virus fears continue - Agricultural Commodities - Reuters:
Most Middle Eastern stocks fell on
Tuesday, extending the previous session's sharp selloff
triggered by a spike in the number of coronavirus cases outside
China.
The death toll from the virus in Iran rose to 16, the
highest outside China, while other hard-hit nations including
South Korea and Italy accelerated emergency measures to curb the
spread of the epidemic.
Dubai's share index closed down 0.9% with Emaar
Properties losing 3.2% and Air Arabia
falling 3.4%.
The United Arab Emirates on Tuesday suspended all flights to
and from Iran for at least a week due to the spread of the virus
in the country. Air Arabia, whose main base is at
Sharjah International Airport, is the UAE's only listed airline.
Qatar’s index dropped 0.7% with Qatar Islamic Bank
down 2.5% and Industries Qatar off 1.7%.
Most Middle Eastern stocks fell on
Tuesday, extending the previous session's sharp selloff
triggered by a spike in the number of coronavirus cases outside
China.
The death toll from the virus in Iran rose to 16, the
highest outside China, while other hard-hit nations including
South Korea and Italy accelerated emergency measures to curb the
spread of the epidemic.
Dubai's share index closed down 0.9% with Emaar
Properties losing 3.2% and Air Arabia
falling 3.4%.
The United Arab Emirates on Tuesday suspended all flights to
and from Iran for at least a week due to the spread of the virus
in the country. Air Arabia, whose main base is at
Sharjah International Airport, is the UAE's only listed airline.
Qatar’s index dropped 0.7% with Qatar Islamic Bank
down 2.5% and Industries Qatar off 1.7%.
#Saudi regulator issues licensing guidelines for digital-only banks | ZAWYA MENA Edition
Saudi regulator issues licensing guidelines for digital-only banks | ZAWYA MENA Edition:
The Saudi Arabian Monetary Authority (SAMA) has issued additional licensing guidelines for digital-only banks in the kingdom, the regulator said on twitter.
Conditions for the digital-only bank include that it should be set up as a locally incorporated joint-stock company and maintain a physical presence in Saudi Arabia. The promoter should also have experience and knowledge in the financial industry and technology-related expertise.
While it is not expected to establish physical branches, the regulator may require setting up costumer service centers in some exceptional cases.
Other requirements include a clearly articulated business plan that covers the IT infrastructure, the financial projections, the target segment, and the proposed products and services.
These guidelines must be considered as additional conditions to be met along with the licensing guidelines for conventional banks, SAMA said in the detailed report on the licensing criteria for digital-only banks.
The Saudi Arabian Monetary Authority (SAMA) has issued additional licensing guidelines for digital-only banks in the kingdom, the regulator said on twitter.
Conditions for the digital-only bank include that it should be set up as a locally incorporated joint-stock company and maintain a physical presence in Saudi Arabia. The promoter should also have experience and knowledge in the financial industry and technology-related expertise.
While it is not expected to establish physical branches, the regulator may require setting up costumer service centers in some exceptional cases.
Other requirements include a clearly articulated business plan that covers the IT infrastructure, the financial projections, the target segment, and the proposed products and services.
These guidelines must be considered as additional conditions to be met along with the licensing guidelines for conventional banks, SAMA said in the detailed report on the licensing criteria for digital-only banks.
#Dubai regulator slaps $105,000 fine on company for unauthorized financial service | ZAWYA MENA Edition
Dubai regulator slaps $105,000 fine on company for unauthorized financial service | ZAWYA MENA Edition:
The Dubai Financial Services Authority (DFSA) has fined Enness Limited, a DIFC representative office of a UK-based firm, $105,000 (approximately 386,000 UAE dirhams) for engaging in unauthorised activity outside the scope of its license.
Enness DIFC is only permitted to carry out activities in the DIFC relating to the marketing of mortgage services offered by its head office, as per the DFSA license.
However, the company engaged in arranging mortgages and providing mortgage advice for its clients between November 2017 and January 2019. The firm now has sought to obtain a license authorising it to carry on wider financial services activity.
“This action demonstrates that the DFSA takes the failure by Representative Offices to act within the scope of their Licenses seriously. We expect that all Representative Offices in the DIFC understand what they are authorised to do and have controls in place that ensure they only engage in authorised activities,” said Bryan Stirewalt, Chief Executive of the DFSA in a statement.
The Dubai Financial Services Authority (DFSA) has fined Enness Limited, a DIFC representative office of a UK-based firm, $105,000 (approximately 386,000 UAE dirhams) for engaging in unauthorised activity outside the scope of its license.
Enness DIFC is only permitted to carry out activities in the DIFC relating to the marketing of mortgage services offered by its head office, as per the DFSA license.
However, the company engaged in arranging mortgages and providing mortgage advice for its clients between November 2017 and January 2019. The firm now has sought to obtain a license authorising it to carry on wider financial services activity.
“This action demonstrates that the DFSA takes the failure by Representative Offices to act within the scope of their Licenses seriously. We expect that all Representative Offices in the DIFC understand what they are authorised to do and have controls in place that ensure they only engage in authorised activities,” said Bryan Stirewalt, Chief Executive of the DFSA in a statement.
Credit risk rises for Gulf crude exporters on virus fears - Reuters
Credit risk rises for Gulf crude exporters on virus fears - Reuters:
The cost of insuring against sovereign debt defaults by Gulf Arab states has risen in recent days as markets price the risk the coronavirus outbreak represents for the crude export-dependent region.
Conventional spreads on the five-year credit default swaps (CDS) of Bahrain and Oman were up four and seven basis points respectively on Tuesday compared to their close last week, according to IHS Markit, while those for Saudi Arabia and Dubai have risen 5 and 3 points respectively.
The rise, though not huge, reflected risk-off sentiment in debt markets which could translate into further weakness in coming days, fund managers said.
“We haven’t seen a sell off in regional bonds but the overall emerging markets sentiment is heavy because of the virus outbreak,” said Zeina Rizk, executive fixed income director at Arqaam Capital, adding that it was normal for CDS to move before bonds.
The cost of insuring against sovereign debt defaults by Gulf Arab states has risen in recent days as markets price the risk the coronavirus outbreak represents for the crude export-dependent region.
Conventional spreads on the five-year credit default swaps (CDS) of Bahrain and Oman were up four and seven basis points respectively on Tuesday compared to their close last week, according to IHS Markit, while those for Saudi Arabia and Dubai have risen 5 and 3 points respectively.
The rise, though not huge, reflected risk-off sentiment in debt markets which could translate into further weakness in coming days, fund managers said.
“We haven’t seen a sell off in regional bonds but the overall emerging markets sentiment is heavy because of the virus outbreak,” said Zeina Rizk, executive fixed income director at Arqaam Capital, adding that it was normal for CDS to move before bonds.
Oil steadies above $56 as supply constraints counter virus fears - Reuters
Oil steadies above $56 as supply constraints counter virus fears - Reuters:
Oil steadied above $56 a barrel on Tuesday after two days of declines as OPEC output cuts and Libyan supply losses balanced concerns about the spread of the coronavirus and its impact on oil demand.
Crude fell almost 4% on Monday, with other commodities also posting losses while U.S. and European equities suffered their steepest declines since mid-2016 on concern the coronavirus outbreak could turn into a pandemic. [MKTS/GLOB]
Brent crude rose 5 cents to $56.35 a barrel by 0952 GMT. U.S. West Texas Intermediate crude was down 14 cents at $51.29.
“Risk appetite appears to be growing again on the markets,” said Commerzbank analyst Eugen Weinberg. “However, the Covid-19 virus and resulting risks to demand cannot be expected to disappear from the news any time soon.”
Oil steadied above $56 a barrel on Tuesday after two days of declines as OPEC output cuts and Libyan supply losses balanced concerns about the spread of the coronavirus and its impact on oil demand.
Crude fell almost 4% on Monday, with other commodities also posting losses while U.S. and European equities suffered their steepest declines since mid-2016 on concern the coronavirus outbreak could turn into a pandemic. [MKTS/GLOB]
Brent crude rose 5 cents to $56.35 a barrel by 0952 GMT. U.S. West Texas Intermediate crude was down 14 cents at $51.29.
“Risk appetite appears to be growing again on the markets,” said Commerzbank analyst Eugen Weinberg. “However, the Covid-19 virus and resulting risks to demand cannot be expected to disappear from the news any time soon.”
#UAE suspends all flights with Iran over coronavirus outbreak - Reuters
UAE suspends all flights with Iran over coronavirus outbreak - Reuters:
The United Arab Emirates has suspended all flights to and from Iran for at least a week due to the spread of the new coronavirus in the Islamic republic, state news agency WAM reported, citing a directive from the Gulf Arab state’s aviation authority.
The suspension affects passenger and cargo flights of UAE carriers Emirates, flydubai, which operate services from Dubai, and Air Arabia (AIRA.DU), which flies from Sharjah, and Iranian airlines.
“The aviation authority said it was suspending all passenger and cargo flights to and from the Islamic Republic of Iran for a week, which could be extended,” WAM said, quoting a statement from the authority.
Two more Iranians infected with the new coronavirus have died in Iran, media said on Tuesday, taking to 14 its tally of deaths.
The United Arab Emirates has suspended all flights to and from Iran for at least a week due to the spread of the new coronavirus in the Islamic republic, state news agency WAM reported, citing a directive from the Gulf Arab state’s aviation authority.
The suspension affects passenger and cargo flights of UAE carriers Emirates, flydubai, which operate services from Dubai, and Air Arabia (AIRA.DU), which flies from Sharjah, and Iranian airlines.
“The aviation authority said it was suspending all passenger and cargo flights to and from the Islamic Republic of Iran for a week, which could be extended,” WAM said, quoting a statement from the authority.
Two more Iranians infected with the new coronavirus have died in Iran, media said on Tuesday, taking to 14 its tally of deaths.
Fierce competition, rising medical cost drain profits of #Saudi, #UAE insurers | ZAWYA MENA Edition
Fierce competition, rising medical cost drain profits of Saudi, UAE insurers | ZAWYA MENA Edition:
Insurance companies in the UAE and Saudi Arabia will continue to face challenges amid high healthcare costs and a crowded market, according to Fitch Ratings.
The credit rating agency stated in its latest report issued on Monday that medical inflation, coupled with stiff competition, will further squeeze insurers’ profits in the two markets this year.
Rising medical claims are outpacing premiums increases in Saudi Arabia, while health insurance gross written premiums in the UAE are on a decline, it said.
The UAE and Saudi Arabia are the two largest insurance markets in the Middle East, with health insurance business dominating in both.
Since the compulsory cover was mandated in the UAE in 2005 and in Saudi Arabia in 2006, the health segment has been the fastest-growing insurance product in the region.
Insurance companies in the UAE and Saudi Arabia will continue to face challenges amid high healthcare costs and a crowded market, according to Fitch Ratings.
The credit rating agency stated in its latest report issued on Monday that medical inflation, coupled with stiff competition, will further squeeze insurers’ profits in the two markets this year.
Rising medical claims are outpacing premiums increases in Saudi Arabia, while health insurance gross written premiums in the UAE are on a decline, it said.
The UAE and Saudi Arabia are the two largest insurance markets in the Middle East, with health insurance business dominating in both.
Since the compulsory cover was mandated in the UAE in 2005 and in Saudi Arabia in 2006, the health segment has been the fastest-growing insurance product in the region.
MIDEAST STOCKS-Most major Gulf stocks slide as virus fears grip markets | Nasdaq
MIDEAST STOCKS-Most major Gulf stocks slide as virus fears grip markets | Nasdaq:
Most major Gulf markets extended losses on Tuesday, with Qatar falling the most as concerns about the coronavirus spreading out of China weighed on investor sentiment.
The coronavirus death toll climbed to seven in Italy on Monday and several Middle East countries were dealing with their first infections, feeding worries it could turn into a pandemic.
The Qatari index .QSI extended losses from the previous session to open 1.4% down. Qatar Islamic Bank QISB.QA slid 4.9%, while Mesaieed Petrochemical MPHC.QA retreated 4%.
Saudi Arabia's benchmark index .TASI retreated a further 0.8%, a day after it saw its biggest decline in more than nine months. Oil giant Saudi Aramco 2222.SE eased 0.6%, while Savola Group 2050.SE decreased 2.7%.
Most major Gulf markets extended losses on Tuesday, with Qatar falling the most as concerns about the coronavirus spreading out of China weighed on investor sentiment.
The coronavirus death toll climbed to seven in Italy on Monday and several Middle East countries were dealing with their first infections, feeding worries it could turn into a pandemic.
The Qatari index .QSI extended losses from the previous session to open 1.4% down. Qatar Islamic Bank QISB.QA slid 4.9%, while Mesaieed Petrochemical MPHC.QA retreated 4%.
Saudi Arabia's benchmark index .TASI retreated a further 0.8%, a day after it saw its biggest decline in more than nine months. Oil giant Saudi Aramco 2222.SE eased 0.6%, while Savola Group 2050.SE decreased 2.7%.
How Is the Coronavirus Outbreak Affecting Middle East Markets? - Bloomberg
How Is the Coronavirus Outbreak Affecting Middle East Markets? - Bloomberg:
Ali Taqi, the head of equities at Rasmala Investment Bank Ltd. in Dubai, discusses how the coronavirus outbreak is affecting Middle East economies and markets. He speaks with Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Ali Taqi, the head of equities at Rasmala Investment Bank Ltd. in Dubai, discusses how the coronavirus outbreak is affecting Middle East economies and markets. He speaks with Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Doha Bank Plans to Hold Off Paying Dividends For the Near Term - Bloomberg
Doha Bank Plans to Hold Off Paying Dividends For the Near Term - Bloomberg:
Doha Bank QPSC will hold off paying dividends for the near term and focus on consolidating its capital after the Qatari lender posted a fourth-quarter loss.
“We have reasons to believe we’ll continue to perform well and start paying dividend as we deem fit,” Raghavan Seetharaman said in an interview with Bloomberg TV on Tuesday.
Doha Bank last week said it was reducing the “2019 dividend to zero to enhance capital and reserves.”
The bank’s quarterly loss was “solely attributable” to a surge in provisions and impairments to the highest level in the bank’s operating history.
Doha Bank QPSC will hold off paying dividends for the near term and focus on consolidating its capital after the Qatari lender posted a fourth-quarter loss.
“We have reasons to believe we’ll continue to perform well and start paying dividend as we deem fit,” Raghavan Seetharaman said in an interview with Bloomberg TV on Tuesday.
Doha Bank last week said it was reducing the “2019 dividend to zero to enhance capital and reserves.”
The bank’s quarterly loss was “solely attributable” to a surge in provisions and impairments to the highest level in the bank’s operating history.
#UAE News: 44% of Energy Supply to Come From Solar, Wind - Bloomberg
UAE News: 44% of Energy Supply to Come From Solar, Wind - Bloomberg:
The United Arab Emirates plans to produce 44% of its energy mix from renewable sources, according to United Arab Emirates Energy Minister Suhail Al Mazrouei.
The country aims to capture 5 million tons of carbon dioxide by 2030, he said at an event in Riyadh, Saudi Arabia.
The United Arab Emirates plans to produce 44% of its energy mix from renewable sources, according to United Arab Emirates Energy Minister Suhail Al Mazrouei.
The country aims to capture 5 million tons of carbon dioxide by 2030, he said at an event in Riyadh, Saudi Arabia.
No OPEC Decision Yet on Oil Cuts, #Saudi Energy Minister Says - Bloomberg
No OPEC Decision Yet on Oil Cuts, Saudi Energy Minister Says - Bloomberg:
OPEC hasn’t made a decision yet on whether to extend or modify its agreement to cut oil output, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said.
The Organization of Petroleum Exporting Countries and its allies are to meet next week in Vienna to assess their global cuts and output policy. Prince Abdulaziz is confident of OPEC’s partnership with other producers including Russia, he told reporters in Riyadh.
“We are communicating with each other at every opportunity,” he said, before addressing an industry conference in the Saudi capital. “The OPEC secretary-general is attending this conference, and we just had a chat. We did not run out of ideas.”
Crude rose, with benchmark Brent gaining as much as 68 cents a barrel, or 1.2%. The contract was at $56.84 a barrel at 7:34 a.m. in London.
OPEC hasn’t made a decision yet on whether to extend or modify its agreement to cut oil output, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said.
The Organization of Petroleum Exporting Countries and its allies are to meet next week in Vienna to assess their global cuts and output policy. Prince Abdulaziz is confident of OPEC’s partnership with other producers including Russia, he told reporters in Riyadh.
“We are communicating with each other at every opportunity,” he said, before addressing an industry conference in the Saudi capital. “The OPEC secretary-general is attending this conference, and we just had a chat. We did not run out of ideas.”
Crude rose, with benchmark Brent gaining as much as 68 cents a barrel, or 1.2%. The contract was at $56.84 a barrel at 7:34 a.m. in London.
FIFA, NFL Ask U.S. to Keep #SaudiArabia on Watchlist Over Piracy - Bloomberg
FIFA, NFL Ask U.S. to Keep Saudi Arabia on Watchlist Over Piracy - Bloomberg:
Global sports bodies asked the U.S. to keep Saudi Arabia on its higher-priority watch list of nations that don’t adequately protect intellectual-property rights because of what they say is unchecked content piracy in the kingdom.
The International Olympic Committee, global soccer governing-body FIFA, Europe’s UEFA, and a coalition representing U.S. sports organizations including the National Football League are among those that have written in recent weeks to the U.S. Trade Representative as part of its annual review to identify countries that deny adequate protection of IP rights. The USTR holds hearings on the so-called special 301 review in Washington Wednesday.
Global sports bodies say Saudi Arabia-based beoutQ tapped illegally into coverage of their top events and sold it on to viewers across the Middle East. Qatar, whose beIN Media Group LLC holds the rights to most soccer games, tennis matches and motor races, says beoutQ has pirated much of its content, adding Saudi Arabia is behind the operation. The Saudi authorities denied the allegation and said they were combating piracy.
Global sports bodies asked the U.S. to keep Saudi Arabia on its higher-priority watch list of nations that don’t adequately protect intellectual-property rights because of what they say is unchecked content piracy in the kingdom.
The International Olympic Committee, global soccer governing-body FIFA, Europe’s UEFA, and a coalition representing U.S. sports organizations including the National Football League are among those that have written in recent weeks to the U.S. Trade Representative as part of its annual review to identify countries that deny adequate protection of IP rights. The USTR holds hearings on the so-called special 301 review in Washington Wednesday.
Global sports bodies say Saudi Arabia-based beoutQ tapped illegally into coverage of their top events and sold it on to viewers across the Middle East. Qatar, whose beIN Media Group LLC holds the rights to most soccer games, tennis matches and motor races, says beoutQ has pirated much of its content, adding Saudi Arabia is behind the operation. The Saudi authorities denied the allegation and said they were combating piracy.
#UAE News: Flights Halted to Iran, Except Tehran, on Virus - Bloomberg
UAE News: Flights Halted to Iran, Except Tehran, on Virus - Bloomberg:
The United Arab Emirates banned flights to all cities in Iran with the exception of Tehran in an effort to prevent the spread of coronavirus.
The decision is effective Tuesday until further notice, the U.A.E. civil aviation authority said in a statement. The country has already suspended all flights to and from China, with the exception of Beijing.
Iran is the epicenter of coronavirus in the Middle East, with 12 deaths and about 60 confirmed cases. Air Arabia PJSC and FlyDubai operate about 25 weekly flights to Iranian cities other than Tehran. Emirates, the world’s biggest airline by international traffic, only flies to Tehran.
Bahrain on Monday temporarily banned flights to and from Dubai, the Middle East’s airline hub, and Sharjah in the U.A.E. as Middle East countries reported more cases overnight.
The United Arab Emirates banned flights to all cities in Iran with the exception of Tehran in an effort to prevent the spread of coronavirus.
The decision is effective Tuesday until further notice, the U.A.E. civil aviation authority said in a statement. The country has already suspended all flights to and from China, with the exception of Beijing.
Iran is the epicenter of coronavirus in the Middle East, with 12 deaths and about 60 confirmed cases. Air Arabia PJSC and FlyDubai operate about 25 weekly flights to Iranian cities other than Tehran. Emirates, the world’s biggest airline by international traffic, only flies to Tehran.
Bahrain on Monday temporarily banned flights to and from Dubai, the Middle East’s airline hub, and Sharjah in the U.A.E. as Middle East countries reported more cases overnight.
RPT- #Saudi Aramco launches largest shale gas development outside U.S. - Reuters
RPT-Saudi Aramco launches largest shale gas development outside U.S. - Reuters:
Saudi Aramco is launching the biggest shale gas development outside of the United States to boost domestic gas supply and end the burning of oil at its power generation plants, Chief Executive Officer Amin Nasser told Reuters on Monday.
The world’s top crude oil exporter has for years battled for market share with rapidly expanding shale oil producers in the United States, which in just a decade have developed capacity to pump millions of barrels per day of oil from rock formations that were previously too costly to tap.
Saudi Arabia fought a price war aimed at putting the U.S. shale industry out of business just six years ago, which ultimately failed. Now, the country has adopted the techniques developed in U.S. fields - which started with gas - for the huge $110 billion Jafurah shale gas field project. Aramco said it received the go ahead for the project on Saturday.
If Aramco hits its targets for development of the field, Saudi Arabia would become the world’s third largest gas producer by 2030. The world’s top two gas producers are the United States and Russia.
Saudi Aramco is launching the biggest shale gas development outside of the United States to boost domestic gas supply and end the burning of oil at its power generation plants, Chief Executive Officer Amin Nasser told Reuters on Monday.
The world’s top crude oil exporter has for years battled for market share with rapidly expanding shale oil producers in the United States, which in just a decade have developed capacity to pump millions of barrels per day of oil from rock formations that were previously too costly to tap.
Saudi Arabia fought a price war aimed at putting the U.S. shale industry out of business just six years ago, which ultimately failed. Now, the country has adopted the techniques developed in U.S. fields - which started with gas - for the huge $110 billion Jafurah shale gas field project. Aramco said it received the go ahead for the project on Saturday.
If Aramco hits its targets for development of the field, Saudi Arabia would become the world’s third largest gas producer by 2030. The world’s top two gas producers are the United States and Russia.
Oil steadies on bargain-hunting; virus fears cap gains - Reuters
Oil steadies on bargain-hunting; virus fears cap gains - Reuters:
Oil steadied on Tuesday as investors sought bargains after crude benchmarks slumped almost 4% in the previous session, although concerns about the coronavirus spreading out of China denting major economies and curbing fuel demand capped gains.
Brent crude rose 19 cents, or 0.3%, to $56.49 a barrel by 0436 GMT, after slipping 3.8% on Monday, the largest single-day price fall since Feb. 3.
U.S. crude futures gained 17 cents, or 0.3%, to $51.60, recovering from a 3.7% drop in the previous session.
“Because we’ve seen a very significant fall in case of West Texas, from above $60 to touch below $50 (over the past six weeks), I think oil has largely reflected a lot of risk, unlike other markets,” Michael McCarthy, chief market strategist at CMC Markets, told Reuters over the phone.
Oil steadied on Tuesday as investors sought bargains after crude benchmarks slumped almost 4% in the previous session, although concerns about the coronavirus spreading out of China denting major economies and curbing fuel demand capped gains.
Brent crude rose 19 cents, or 0.3%, to $56.49 a barrel by 0436 GMT, after slipping 3.8% on Monday, the largest single-day price fall since Feb. 3.
U.S. crude futures gained 17 cents, or 0.3%, to $51.60, recovering from a 3.7% drop in the previous session.
“Because we’ve seen a very significant fall in case of West Texas, from above $60 to touch below $50 (over the past six weeks), I think oil has largely reflected a lot of risk, unlike other markets,” Michael McCarthy, chief market strategist at CMC Markets, told Reuters over the phone.