Oil prices sink to lowest in over a year, biggest weekly drop since 2016 - Reuters:
Oil prices slumped for a sixth day in a row on Friday to their lowest in more than a year, causing futures to drop by the most in a week since 2016, as the spread of coronavirus stoked fears that a slowing global economy would hit energy demand.
The coronavirus spread further, with cases reported for the first time in six countries across three continents, battering markets and leading the World Health Organization (WHO) to raise its impact risk alert to “very high.”
The most active Brent future for May LCOc2 delivery fell $2.06, or 4.0%, to settle at $49.67 a barrel, its lowest since July 2017.
Brent LCOc1 futures for April delivery, meanwhile, lost $1.66, or 3.2%, to settle at $50.52 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 fell $2.33, or 5.0%, to settle at $44.76. That is the lowest closes for both Brent and WTI since December 2018.
For the week, Brent lost almost 14%, its biggest weekly percentage decline since January 2016, while WTI fell over 16% in its biggest weekly p
Friday, 28 February 2020
Ex-Barclays executives cleared over #Qatar fees in blow to UK fraud office - Reuters
Ex-Barclays executives cleared over Qatar fees in blow to UK fraud office - Reuters:
Three former Barclays (BARC.L) executives were acquitted in London on Friday of charges they helped funnel 322 million pounds ($418 million) in secret fees to Qatar in return for rescue financing during the credit crisis.
In a blow to the Serious Fraud Office (SFO), a jury cleared Roger Jenkins, Tom Kalaris, and Richard Boath of fraud.
The men, aged between 61 and 64, all denied any wrongdoing. Qatar, a major investor in Britain and still a significant Barclays shareholder, was neither investigated nor accused of wrongdoing.
The verdict draws a line under an ambitious, seven-and-a-half year investigation that led to the first criminal charges in Britain against senior financiers at a major bank over credit crisis-era conduct.
Three former Barclays (BARC.L) executives were acquitted in London on Friday of charges they helped funnel 322 million pounds ($418 million) in secret fees to Qatar in return for rescue financing during the credit crisis.
In a blow to the Serious Fraud Office (SFO), a jury cleared Roger Jenkins, Tom Kalaris, and Richard Boath of fraud.
The men, aged between 61 and 64, all denied any wrongdoing. Qatar, a major investor in Britain and still a significant Barclays shareholder, was neither investigated nor accused of wrongdoing.
The verdict draws a line under an ambitious, seven-and-a-half year investigation that led to the first criminal charges in Britain against senior financiers at a major bank over credit crisis-era conduct.
Virus Concerns Hit Shares in Builder of World’s Tallest Tower - Bloomberg
Virus Concerns Hit Shares in Builder of World’s Tallest Tower - Bloomberg:
Dubai’s Emaar group felt the downside of being a proxy for investments in the local exchange as traders rushed to price in the impact of the coronavirus on the city’s real estate, hospitality and retail industries.
Shares of Emaar Properties PJSC, developer of the 828-meter (2,716-foot) high Burj Khalifa, slumped 10% this week after more than 230 cases of the virus were confirmed throughout the Middle East. Subsidiaries Emaar Malls and Emaar Development lost 4.7% and 8.4%, respectively.
While analysts and investors assess the full effect of the outbreak on business in the region, there are already signs of the potential damage to come. Emirates, the world’s largest long-haul carrier, suspended flights earlier this month to Guangzhou and Shanghai, while continuing those to Beijing. The United Arab Emirates this week halted all flights to Iran, the epicenter of cases in the region.
The upheaval could hardly come at a worse moment for the listed Emaar companies, which combine to represent about a fifth of Dubai’s main equities index. Emaar Properties has been battered along with its developer peers in the past two years by a slump in the local real estate industry amid a slowing economy. The holding company posted a 4.3% drop in revenue for 2019 as it eked out a slight gain in net income.
Dubai’s Emaar group felt the downside of being a proxy for investments in the local exchange as traders rushed to price in the impact of the coronavirus on the city’s real estate, hospitality and retail industries.
Shares of Emaar Properties PJSC, developer of the 828-meter (2,716-foot) high Burj Khalifa, slumped 10% this week after more than 230 cases of the virus were confirmed throughout the Middle East. Subsidiaries Emaar Malls and Emaar Development lost 4.7% and 8.4%, respectively.
While analysts and investors assess the full effect of the outbreak on business in the region, there are already signs of the potential damage to come. Emirates, the world’s largest long-haul carrier, suspended flights earlier this month to Guangzhou and Shanghai, while continuing those to Beijing. The United Arab Emirates this week halted all flights to Iran, the epicenter of cases in the region.
The upheaval could hardly come at a worse moment for the listed Emaar companies, which combine to represent about a fifth of Dubai’s main equities index. Emaar Properties has been battered along with its developer peers in the past two years by a slump in the local real estate industry amid a slowing economy. The holding company posted a 4.3% drop in revenue for 2019 as it eked out a slight gain in net income.
#UAE News: NMC Health's Shetty Sunk by Muddy Waters Attack - Bloomberg
UAE News: NMC Health's Shetty Sunk by Muddy Waters Attack - Bloomberg:
When discussing his business philosophy, Indian entrepreneur Bavaguthu Raghuram Shetty likes to stress the importance of embracing challenges — even those you fail to overcome. “Without mistakes you can’t learn,” the founder of hospital operator NMC Health Plc said in a YouTube video in January. “If I don’t have one problem in the office, it’s not a good day for me.”
By that measure, Shetty has been having a string of really good days lately. Since U.S. short seller Muddy Waters Capital LLC in December alleged fraud at NMC, the company has lost two-thirds of its value. Yesterday, shares of NMC, the largest private health-care company in the United Arab Emirates, were suspended and the company announced it was under investigation by the U.K. markets regulator.
In the last two weeks, five of 11 board members have either been fired or resigned amid a drip-drip-drip of financial improprieties. Shetty himself was out on Feb. 17 after the company said he may have misreported the size of his stake, calling into question who really holds control. Next month, when the FTSE 100 carries out its quarterly recalibration, NMC is almost certain to be dropped from the benchmark index of the biggest companies listed in London.
When discussing his business philosophy, Indian entrepreneur Bavaguthu Raghuram Shetty likes to stress the importance of embracing challenges — even those you fail to overcome. “Without mistakes you can’t learn,” the founder of hospital operator NMC Health Plc said in a YouTube video in January. “If I don’t have one problem in the office, it’s not a good day for me.”
By that measure, Shetty has been having a string of really good days lately. Since U.S. short seller Muddy Waters Capital LLC in December alleged fraud at NMC, the company has lost two-thirds of its value. Yesterday, shares of NMC, the largest private health-care company in the United Arab Emirates, were suspended and the company announced it was under investigation by the U.K. markets regulator.
In the last two weeks, five of 11 board members have either been fired or resigned amid a drip-drip-drip of financial improprieties. Shetty himself was out on Feb. 17 after the company said he may have misreported the size of his stake, calling into question who really holds control. Next month, when the FTSE 100 carries out its quarterly recalibration, NMC is almost certain to be dropped from the benchmark index of the biggest companies listed in London.
Brent Crude Drops Below $50 as Coronavirus Spreads Around World - Bloomberg
Brent Crude Drops Below $50 as Coronavirus Spreads Around World - Bloomberg:
Oil slipped below $50 a barrel in London as the fast-spreading coronavirus roiled global markets, intensifying speculation that OPEC and its allies will strike a deal to support prices.
Brent crude for May delivery, the most actively traded contract, lost almost 4% as fears over the outbreak sent shares around the world slumping. The market’s price structure has weakened dramatically, tumbling into a contango, while the profits from making products like diesel have also collapsed. Amid the slump, there are signs that OPEC and its allies could be nearing agreement on action to stem the rout before meeting in Vienna next week.
The group’s top official said the cartel and its allies are displaying a “renewed commitment” to reach an accord as the virus puts the world economy on course for its worst performance since 2009. Saudi Arabia has been pushing for deeper production cuts over the last few weeks, but Russia has so far taken a more cautious stance. One silver lining for markets is that prices are now at a level that may be uneconomic for U.S. shale producers.
Oil slipped below $50 a barrel in London as the fast-spreading coronavirus roiled global markets, intensifying speculation that OPEC and its allies will strike a deal to support prices.
Brent crude for May delivery, the most actively traded contract, lost almost 4% as fears over the outbreak sent shares around the world slumping. The market’s price structure has weakened dramatically, tumbling into a contango, while the profits from making products like diesel have also collapsed. Amid the slump, there are signs that OPEC and its allies could be nearing agreement on action to stem the rout before meeting in Vienna next week.
The group’s top official said the cartel and its allies are displaying a “renewed commitment” to reach an accord as the virus puts the world economy on course for its worst performance since 2009. Saudi Arabia has been pushing for deeper production cuts over the last few weeks, but Russia has so far taken a more cautious stance. One silver lining for markets is that prices are now at a level that may be uneconomic for U.S. shale producers.
#Saudi reserves up 2.4% in January – SAMA | ZAWYA MENA Edition
Saudi reserves up 2.4% in January – SAMA | ZAWYA MENA Edition:
The Saudi Arabian Monetary Authority (SAMA) reported an increase in assets by 2.54% during January 2020, compared with the same months of last year to SAR 1.91 trillion.
On a monthly basis, assets marginally increased compared to its level in December 2019 at SAR 1.9 trillion.
Meanwhile, Saudi Arabia’s foreign reserves grew by 2.4% last month by SAR 44.55 billion ($11.88 billion) to SAR 1.88 trillion, compared with SAR 1.84 trillion in the same period in the year before.
Reserves also increased by SAR 8.47 billion compared with its level in December at SAR 1.87 trillion.
Meanwhile, general reserves rose by 0.25% month-on-month (MoM) to SAR 470.8 billion, while the government’s current account surged by 45% MoM to SAR 86.66 billion
The Saudi Arabian Monetary Authority (SAMA) reported an increase in assets by 2.54% during January 2020, compared with the same months of last year to SAR 1.91 trillion.
On a monthly basis, assets marginally increased compared to its level in December 2019 at SAR 1.9 trillion.
Meanwhile, Saudi Arabia’s foreign reserves grew by 2.4% last month by SAR 44.55 billion ($11.88 billion) to SAR 1.88 trillion, compared with SAR 1.84 trillion in the same period in the year before.
Reserves also increased by SAR 8.47 billion compared with its level in December at SAR 1.87 trillion.
Meanwhile, general reserves rose by 0.25% month-on-month (MoM) to SAR 470.8 billion, while the government’s current account surged by 45% MoM to SAR 86.66 billion
#AbuDhabi in talks with banks for debut loan of $2 billion - sources - Reuters
Abu Dhabi in talks with banks for debut loan of $2 billion - sources - Reuters:
The government of Abu Dhabi is in talks with banks for a $2 billion loan, two sources familiar with the discussions said, a move which would allow the oil-rich emirate to tap new liquidity pools in an era of low oil prices.
Abu Dhabi, the capital of the United Arab Emirates, sold its latest international bonds in September last year, raising $10 billion for budgetary purposes and garnering almost $20 billion in demand.
It is now working on a “self-arranged loan”, putting together commitments from banks for a potential $2 billion debt facility which, if finalised, would be the government’s first, the two sources familiar with the discussions said.
The Abu Dhabi Department of Finance declined to comment, a spokesman said.
The government of Abu Dhabi is in talks with banks for a $2 billion loan, two sources familiar with the discussions said, a move which would allow the oil-rich emirate to tap new liquidity pools in an era of low oil prices.
Abu Dhabi, the capital of the United Arab Emirates, sold its latest international bonds in September last year, raising $10 billion for budgetary purposes and garnering almost $20 billion in demand.
It is now working on a “self-arranged loan”, putting together commitments from banks for a potential $2 billion debt facility which, if finalised, would be the government’s first, the two sources familiar with the discussions said.
The Abu Dhabi Department of Finance declined to comment, a spokesman said.
Oil prices on track for biggest weekly fall in four years - Reuters
Oil prices on track for biggest weekly fall in four years - Reuters:
Oil prices slumped to their lowest in more than a year on Friday and were set for their steepest weekly fall in more than four years as the spread of the coronavirus stokes fears of slowing global demand.
Investors are increasingly worried as the virus has spread beyond its epicentre in China to more than 40 other countries.
The most active Brent crude contract for May LCOc2 was down $1.42, or 2.8%, at $50.31 a barrel by 0745 GMT, a 14-month low. The front-month April contract expires later on Friday.
West Texas Intermediate (WTI) crude futures CLc1 fell $1.39, or about 3%, to $45.70 per barrel. U.S. crude has fallen about 14% for the week, the biggest weekly decline since May 2011.
New infections of the coronavirus reported around the world were now surpassing those in mainland China, where more than 2,700 people have died. A further 57 deaths have been recorded in other countries.
Oil prices slumped to their lowest in more than a year on Friday and were set for their steepest weekly fall in more than four years as the spread of the coronavirus stokes fears of slowing global demand.
Investors are increasingly worried as the virus has spread beyond its epicentre in China to more than 40 other countries.
The most active Brent crude contract for May LCOc2 was down $1.42, or 2.8%, at $50.31 a barrel by 0745 GMT, a 14-month low. The front-month April contract expires later on Friday.
West Texas Intermediate (WTI) crude futures CLc1 fell $1.39, or about 3%, to $45.70 per barrel. U.S. crude has fallen about 14% for the week, the biggest weekly decline since May 2011.
New infections of the coronavirus reported around the world were now surpassing those in mainland China, where more than 2,700 people have died. A further 57 deaths have been recorded in other countries.