Oil Trades Near Four-Year Low as Virus Restrictions Tighten - Bloomberg:
Crude prices traded near a four-year low in the Asian morning as nations tighten restrictions to stem the spread of coronavirus.
Futures in New York edged up by 0.6%, after tumbling 9.6% on Monday. Leaders of the Group of Seven said they will do “whatever is necessary” to ensure a globally coordinated response to the coronavirus pandemic and its economic fallout. U.S. President Donald Trump markedly changed his tone on the outbreak and said Americans should avoid gathering in groups of more than 10 people, while Canada closed its borders to most foreigners. France said it may further tighten a national lockdown, while Germany partially closed its borders with five neighboring countries.
Oil plummeted Monday as a massive emergency move by the U.S. Federal Reserve to cushion the world’s biggest economy failed to quell the fear gripping markets, with the S&P 500 falling 12%. Forecasts for global oil use are being cut dramatically as government measures to contain the spread of the pandemic restrict the movement of people and throw supply chains into chaos.
At the same time, giant producers are unleashing a flood of supply after the disintegration of the OPEC+ alliance. Saudi Arabia is showing no sign of backing down in its price war with Russia, with the state oil company Aramco saying it’s “very comfortable” with oil prices below $30 a barrel.
Monday, 16 March 2020
Stock Market Today: Dow, S&P Live Updates for March 16 - Bloomberg
Stock Market Today: Dow, S&P Live Updates for March 16 - Bloomberg:
The stomach-turning ride on global financial markets took a dramatic turn Monday, with U.S. stocks plunging the most since 1987 after President Donald Trump warned the economic disruption from the virus could last into summer.
The stomach-turning ride on global financial markets took a dramatic turn Monday, with U.S. stocks plunging the most since 1987 after President Donald Trump warned the economic disruption from the virus could last into summer.
Oil Supertankers Fetch Astronomical Rates With Vessels Scarce - Bloomberg
Oil Supertankers Fetch Astronomical Rates With Vessels Scarce - Bloomberg:
Oil companies are being forced to pay exorbitant prices for oil tankers as shipowners book vessels for storage and Saudi Arabia snaps up ships as it prepares to flood the market with crude.
Reliance Industries Ltd. booked the supertanker Princess Mary for more than $400,000 a day to haul crude from the Middle East to the west coast of India in early April, according to vessel pool Tankers International.
The charter to India reflects which way rates are going, rather than absolute numbers that supertankers are earning. A voyage to Jamnagar, a key refining hub on India’s west coast, is about 1,300 miles, or 4-5 days’ sailing. Sometimes, in very strong markets, owners will insist on premiums for such routes, fearful of missing out on longer-distance bookings that guarantee high earnings for several weeks.
However, rates are also spiking on longer journeys. Earnings for supertankers on the benchmark voyage from the Middle East to China last week jumped by 700% to $243,347 a day, according to data from the Baltic Exchange.
Oil companies are being forced to pay exorbitant prices for oil tankers as shipowners book vessels for storage and Saudi Arabia snaps up ships as it prepares to flood the market with crude.
Reliance Industries Ltd. booked the supertanker Princess Mary for more than $400,000 a day to haul crude from the Middle East to the west coast of India in early April, according to vessel pool Tankers International.
The charter to India reflects which way rates are going, rather than absolute numbers that supertankers are earning. A voyage to Jamnagar, a key refining hub on India’s west coast, is about 1,300 miles, or 4-5 days’ sailing. Sometimes, in very strong markets, owners will insist on premiums for such routes, fearful of missing out on longer-distance bookings that guarantee high earnings for several weeks.
However, rates are also spiking on longer journeys. Earnings for supertankers on the benchmark voyage from the Middle East to China last week jumped by 700% to $243,347 a day, according to data from the Baltic Exchange.
Oil slumps below $30 a barrel as coronavirus spreads, OPEC rancor remains elevated - Reuters
Oil slumps below $30 a barrel as coronavirus spreads, OPEC rancor remains elevated - Reuters:
Oil prices fell below $30 a barrel on Monday as the worldwide coronavirus outbreak worsened over the weekend, exacerbating fears that government lockdowns to contain the spread of the disease would spark a global recession.
Top global oil producers Saudi Arabia and Russia, having failed to agree on a plan to curb supply as the fall in global economic activity destroys oil demand, and have turned on each other to start a price war.
Saudi Aramco reiterated on Monday its plans to boost output to record levels to take a bigger share of the global market.
Brent crude LCOc1 settled down $3.80, or 11.2%, to $30.05 a barrel. The international benchmark earlier fell to $29.52 a barrel, its lowest since January 2016.
U.S. West Texas Intermediate (WTI) crude CLc1 fell $3.03, or 9.6%, to end at $28.70 a barrel, its lowest since February 2016.
Oil prices fell below $30 a barrel on Monday as the worldwide coronavirus outbreak worsened over the weekend, exacerbating fears that government lockdowns to contain the spread of the disease would spark a global recession.
Top global oil producers Saudi Arabia and Russia, having failed to agree on a plan to curb supply as the fall in global economic activity destroys oil demand, and have turned on each other to start a price war.
Saudi Aramco reiterated on Monday its plans to boost output to record levels to take a bigger share of the global market.
Brent crude LCOc1 settled down $3.80, or 11.2%, to $30.05 a barrel. The international benchmark earlier fell to $29.52 a barrel, its lowest since January 2016.
U.S. West Texas Intermediate (WTI) crude CLc1 fell $3.03, or 9.6%, to end at $28.70 a barrel, its lowest since February 2016.
Saudi Aramco Earnings Call Underscores Government Ties - Bloomberg
Saudi Aramco Earnings Call Underscores Government Ties - Bloomberg:
Congratulations Saudi Aramco investors: You bought a country.
Saudi Arabian Oil Co. hosted its first ever earnings call as a public company on an even tougher-than-usual Monday morning (New York time). The results themselves weren’t bad; with $88 billion of net income, it is perhaps no wonder the great-quarter-guys statements from some analysts were more elaborate than usual.
But 2019 is, of course, so last year at this point.
Aramco, as it likes to point out, is different from other oil companies. Chiefly, it is much bigger, which is helpful in this industry. But the other key difference is that it happens to be roughly 98% owned by the government of Saudi Arabia. This salient point defined the company’s listing, with it (the big shareholder I mean) choosing to maximize headline valuation rather than capital markets access by keeping the float in Riyadh. Early on Monday’s call, there was the obligatory shout out for “the largest [IPO] the world has ever seen” and I was reminded of that line from “This is Spinal Tap” where the titular group is hailed as “Britain’s loudest band.”
Congratulations Saudi Aramco investors: You bought a country.
Saudi Arabian Oil Co. hosted its first ever earnings call as a public company on an even tougher-than-usual Monday morning (New York time). The results themselves weren’t bad; with $88 billion of net income, it is perhaps no wonder the great-quarter-guys statements from some analysts were more elaborate than usual.
But 2019 is, of course, so last year at this point.
Aramco, as it likes to point out, is different from other oil companies. Chiefly, it is much bigger, which is helpful in this industry. But the other key difference is that it happens to be roughly 98% owned by the government of Saudi Arabia. This salient point defined the company’s listing, with it (the big shareholder I mean) choosing to maximize headline valuation rather than capital markets access by keeping the float in Riyadh. Early on Monday’s call, there was the obligatory shout out for “the largest [IPO] the world has ever seen” and I was reminded of that line from “This is Spinal Tap” where the titular group is hailed as “Britain’s loudest band.”
Column: Hedge funds turn ultra-bearish as volume war compounds pandemic - Kemp - Reuters
Column: Hedge funds turn ultra-bearish as volume war compounds pandemic - Kemp - Reuters:
Hedge funds continued selling petroleum in anticipation of a sharp downturn in oil consumption, even before major governments announced tougher travel restrictions late last week.
Hedge funds and other money managers sold another 58 million barrels of petroleum futures and options in the six major contracts in the week to March 10, exchange and regulatory data showed.
Total sales since the start of the year have reached 637 million barrels – in two waves, the first lasting roughly from Jan. 7 to Feb. 18 (457 million over six weeks) and the second since Feb. 18 (180 million over three weeks).
By March 10, hedge funds had established one of the most bearish positions in petroleum since oil prices slumped in 2014/15.
Portfolio managers have continued selling despite already-low prices and the existence of stretched short positioning, both of which would normally be a signal to start trimming short positions and rebuilding long ones.
Hedge funds continued selling petroleum in anticipation of a sharp downturn in oil consumption, even before major governments announced tougher travel restrictions late last week.
Hedge funds and other money managers sold another 58 million barrels of petroleum futures and options in the six major contracts in the week to March 10, exchange and regulatory data showed.
Total sales since the start of the year have reached 637 million barrels – in two waves, the first lasting roughly from Jan. 7 to Feb. 18 (457 million over six weeks) and the second since Feb. 18 (180 million over three weeks).
By March 10, hedge funds had established one of the most bearish positions in petroleum since oil prices slumped in 2014/15.
Portfolio managers have continued selling despite already-low prices and the existence of stretched short positioning, both of which would normally be a signal to start trimming short positions and rebuilding long ones.
Oil slumps below $30-per-barrel as coronavirus spreads, OPEC rancor remains elevated - Reuters
Oil slumps below $30-per-barrel as coronavirus spreads, OPEC rancor remains elevated - Reuters:
Oil prices fell below $30 a barrel on Monday as the worldwide coronavirus outbreak worsened over the weekend, leading governments and businesses to shut down as the global economy appeared to be headed toward certain recession.
At the same time, Saudi Arabia reiterated its plans to boost production in response to a developing price war with its rival Russia after efforts to restrict supply failed earlier this month. The coming flood of supply could result in the largest surplus of crude in history, analysts said.
Brent crude LCOc1 was down $3.35, or 9.9%, to $30.50 a barrel by 12:10 p.m. EDT (1610 GMT). The international benchmark earlier fell to $29.52 a barrel, its lowest since January 2016.
U.S. West Texas Intermediate (WTI) crude CLc1 fell $2.08, or 6.6%, to $29.65 a barrel.
Oil prices fell below $30 a barrel on Monday as the worldwide coronavirus outbreak worsened over the weekend, leading governments and businesses to shut down as the global economy appeared to be headed toward certain recession.
At the same time, Saudi Arabia reiterated its plans to boost production in response to a developing price war with its rival Russia after efforts to restrict supply failed earlier this month. The coming flood of supply could result in the largest surplus of crude in history, analysts said.
Brent crude LCOc1 was down $3.35, or 9.9%, to $30.50 a barrel by 12:10 p.m. EDT (1610 GMT). The international benchmark earlier fell to $29.52 a barrel, its lowest since January 2016.
U.S. West Texas Intermediate (WTI) crude CLc1 fell $2.08, or 6.6%, to $29.65 a barrel.
MIDEAST STOCKS-Most Gulf stocks dive, #Qatar gains on stimulus measures - Reuters
MIDEAST STOCKS-Most Gulf stocks dive, Qatar gains on stimulus measures - Reuters:
Most major Gulf shares fell sharply on Monday as
stimulus measures, including rate cuts, failed to calm investors worried about
the economic damage from the coronavirus that has infected nearly 1,000 people
in the region.
While Saudi Arabia and United Arab Emirates announced packages worth $13
billion and $27 billion, respectively on Saturday, Gulf central banks on Monday
took cue from the U.S. Federal Reserve's decision to cut interest rates by 100
basis points to 0%-0.25% target range.
Qatar, however, bucked the trend as the government announced measures to
support the economy, including providing 75 billion riyals ($20.60 billion) in
financial incentives, and a plan to inject up to 10 billion riyals in the local
bourse.
Denting sentiment further were lower crude oil prices, with Brent crude
dropping 10.6% to $30.27 a barrel by 1231 GMT.
Saudi Arabia's index slipped 5.2%, with Al Rajhi Bank
falling 4.9%.
- Aramco closes down at 27.8 riyals
- Yansab slips on ex-dividend
- Jarir Marketing falls after showrooms shutdown
- Stimulus plan boosts Qatari index
Most major Gulf shares fell sharply on Monday as
stimulus measures, including rate cuts, failed to calm investors worried about
the economic damage from the coronavirus that has infected nearly 1,000 people
in the region.
While Saudi Arabia and United Arab Emirates announced packages worth $13
billion and $27 billion, respectively on Saturday, Gulf central banks on Monday
took cue from the U.S. Federal Reserve's decision to cut interest rates by 100
basis points to 0%-0.25% target range.
Qatar, however, bucked the trend as the government announced measures to
support the economy, including providing 75 billion riyals ($20.60 billion) in
financial incentives, and a plan to inject up to 10 billion riyals in the local
bourse.
Denting sentiment further were lower crude oil prices, with Brent crude
dropping 10.6% to $30.27 a barrel by 1231 GMT.
Saudi Arabia's index slipped 5.2%, with Al Rajhi Bank
falling 4.9%.
Fed’s Dash to Zero Lets Gulf Top Off Stimulus With Rate Cuts - Bloomberg
Fed’s Dash to Zero Lets Gulf Top Off Stimulus With Rate Cuts - Bloomberg:
- The central bank of the United Arab Emirates cut the rate on one-week certificates of deposit by 75 basis points.
- The Saudi Arabian Monetary Authority also lowered its repo rate by 75 basis points to 1%, and its reverse repo rate by the same amount to 0.5%.
- Kuwait reduced its discount rate by 100 basis points to an all-time low of 1.5%.
- Qatar’s central bank decreased its deposit and repurchase rates by half a percentage point and lowered the lending rate by 100 basis points.
- Bahrain cut its policy rate by 75 basis points.
- The central bank of Oman, one of the Gulf’s weakest economies, has yet to make an announcement.
Key highlights of stimulus in the Gulf:
- Saudi Arabia’s central bank pledged a 50-billion riyal ($13.3 billion) package to support private businesses, while the U.A.E.’s announced a 100-billion dirham ($27.2 billion) program to assist its lenders.
- Qatar was the latest to unveil a stimulus program of 75-billion riyals ($20.5 billion).
- Bahrain’s cabinet will authorize the finance minister to use up to 5% of this year’s government spending on emergency expenses to limit the impact of the coronavirus, Bahrain News Agency reported Monday.
- Abu Dhabi Crown Prince Mohammed Bin Zayed said that all approved capital expenditure and development projects in the emirate will continue to take place. He also said a new committee will be formed to review lending options to support local companies.
- Further measures could be introduced if required, according to Al Mansoori.
Oil Slumps to Lowest Since 2016 as Demand Collapse Triggers Rout - Bloomberg
Oil Slumps to Lowest Since 2016 as Demand Collapse Triggers Rout - Bloomberg:
Oil’s spectacular collapse deepened as widening global efforts to fight the spread of the coronavirus looked set to trigger the most severe contraction in annual demand in history.
Global benchmark Brent crude fell more than 12.5% after Saudi Aramco’s chief financial officer said the company is “very comfortable” with oil at $30 a barrel. Demand for fuels is falling off a cliff as a result of global restrictions to prevent the spread of virus, with gasoline futures reaching their weakest level since at least 2005.
Even a massive emergency move by the U.S. Federal Reserve to cushion the world’s biggest economy just added to the fear gripping markets. Forecasts for global oil use are being cut dramatically as government measures to contain the spread of the pandemic restrict the movement of people and throw supply chains into chaos. At the same time, giant producers are unleashing a flood of supply after the disintegration of the OPEC+ alliance.
“Oil prices remain in freefall,” Commerzbank analysts including Carsten Fritsch wrote in a report. “The more countries ‘freeze’ public life, close their borders and cancel flights, the greater the impact will be on oil demand.”
Oil’s spectacular collapse deepened as widening global efforts to fight the spread of the coronavirus looked set to trigger the most severe contraction in annual demand in history.
Global benchmark Brent crude fell more than 12.5% after Saudi Aramco’s chief financial officer said the company is “very comfortable” with oil at $30 a barrel. Demand for fuels is falling off a cliff as a result of global restrictions to prevent the spread of virus, with gasoline futures reaching their weakest level since at least 2005.
Even a massive emergency move by the U.S. Federal Reserve to cushion the world’s biggest economy just added to the fear gripping markets. Forecasts for global oil use are being cut dramatically as government measures to contain the spread of the pandemic restrict the movement of people and throw supply chains into chaos. At the same time, giant producers are unleashing a flood of supply after the disintegration of the OPEC+ alliance.
“Oil prices remain in freefall,” Commerzbank analysts including Carsten Fritsch wrote in a report. “The more countries ‘freeze’ public life, close their borders and cancel flights, the greater the impact will be on oil demand.”
Finablr raises doubts about its future, CEO leaves - Reuters
Finablr raises doubts about its future, CEO leaves - Reuters:
Payments group Finablr (FINF.L) on Monday expressed doubts about its ability to continue as a going concern and said its chief executive would step down.
Finablr was founded by BR Shetty, who also founded troubled UAE hospital operator NMC Health (NMC.L), which earlier this month asked for an informal debt standstill to stabilize its finances.
Finablr’s troubles have followed problems at its Travelex business, which was hit by a ransomware attack late last year. The company is also facing disruption to its business from the coronavirus crisis.
“(Constraints) now reached a point where they are having a material adverse impact on the company’s operations, including resulting in the company no longer being able to provide certain payment processing services,” Finablr said.
Payments group Finablr (FINF.L) on Monday expressed doubts about its ability to continue as a going concern and said its chief executive would step down.
Finablr was founded by BR Shetty, who also founded troubled UAE hospital operator NMC Health (NMC.L), which earlier this month asked for an informal debt standstill to stabilize its finances.
Finablr’s troubles have followed problems at its Travelex business, which was hit by a ransomware attack late last year. The company is also facing disruption to its business from the coronavirus crisis.
“(Constraints) now reached a point where they are having a material adverse impact on the company’s operations, including resulting in the company no longer being able to provide certain payment processing services,” Finablr said.
European, Middle Eastern & African Stocks - Bloomberg
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Future uncertain for BR Shetty's Finablr after shares suspended in London - Arabianbusiness
Future uncertain for BR Shetty's Finablr after shares suspended in London - Arabianbusiness:
Finablr, the owner of currency-exchange businesses including Travelex Holdings, said on Monday that the Financial Conduct Authority of London Stock Exchange has agreed to the temporary suspension of listing of its shares at the request of the company.
The move follows an announcement last week in which the company, founded by Dubai-based billionaire BR Shetty, said a number of factors were placing significant constraints on its access to the daily liquidity it needs to manage its business effectively and its ability to negotiate longer term financing.
"Since that announcement, these constraints have become amplified and have now reached a point where they are having a material adverse impact on the company's operations, including resulting in the company no longer being able to provide certain payment processing services," said a statement posted on the website of the London Stock Exchange.
The board said it is unable accurately to assess the financial position of the company and there is a "material uncertainty" about the group's ability to continue as a going concern.
Finablr, the owner of currency-exchange businesses including Travelex Holdings, said on Monday that the Financial Conduct Authority of London Stock Exchange has agreed to the temporary suspension of listing of its shares at the request of the company.
The move follows an announcement last week in which the company, founded by Dubai-based billionaire BR Shetty, said a number of factors were placing significant constraints on its access to the daily liquidity it needs to manage its business effectively and its ability to negotiate longer term financing.
"Since that announcement, these constraints have become amplified and have now reached a point where they are having a material adverse impact on the company's operations, including resulting in the company no longer being able to provide certain payment processing services," said a statement posted on the website of the London Stock Exchange.
The board said it is unable accurately to assess the financial position of the company and there is a "material uncertainty" about the group's ability to continue as a going concern.
#UAE Virus News: Willing to Extend Plan to Stimulate Economy - Bloomberg
UAE Virus News: Willing to Extend Plan to Stimulate Economy - Bloomberg:
The United Arab Emirates is willing to extend measures to stimulate the second-biggest Arab nation’s economy after it rolled out a $27 billion package last week, according to its central bank governor.
“We are willing to extend this scheme, so we have no hesitation to renew these measures,” Mubarak Rashed Al Mansoori told Bloomberg TV. “Before the end of the six months, we will assess and if this is required, we will renew this.”
The central bank last week rolled out a 100-billion dirham ($27 billion) package to support its banks as it seeks to mitigate the economic impact of the coronavirus.
U.A.E. plans to cut interest rates in lock-step with the Federal Reserve’s monetary actions, he said. Al Mansoori also said the U.A.E. is committed to the dollar peg.
The United Arab Emirates is willing to extend measures to stimulate the second-biggest Arab nation’s economy after it rolled out a $27 billion package last week, according to its central bank governor.
“We are willing to extend this scheme, so we have no hesitation to renew these measures,” Mubarak Rashed Al Mansoori told Bloomberg TV. “Before the end of the six months, we will assess and if this is required, we will renew this.”
The central bank last week rolled out a 100-billion dirham ($27 billion) package to support its banks as it seeks to mitigate the economic impact of the coronavirus.
U.A.E. plans to cut interest rates in lock-step with the Federal Reserve’s monetary actions, he said. Al Mansoori also said the U.A.E. is committed to the dollar peg.
#SaudiArabia News: Aramco Keeps $75 Billion Dividend Promise - Bloomberg
Saudi Arabia News: Aramco Keeps $75 Billion Dividend Promise - Bloomberg:
Even with oil prices having slumped, Saudi Aramco said it still intends to give at least $75 billion to shareholders this year.
The world’s biggest company by market value, which listed in the Saudi Arabian capital of Riyadh in December, will pay the dividends on a quarterly basis, it said in its 2019 financial results released on Sunday.
Capital expenditure will be cut to between $25 billion and $30 billion this year, from $32.8 billion in 2019. Even so, the firm would still need at least $100 billion to meet its dividend and capex commitments alone, almost matching its 2019 payments.
The spread of the coronavirus and the oil-price war instigated by Saudi Arabia after Russia rejected coordinated production curbs has sent Brent crude prices spiraling. They have fallen more than 50% since the end of December to around $32 a barrel, and some analysts predict they’ll drop further to below $10 a barrel.
Even with oil prices having slumped, Saudi Aramco said it still intends to give at least $75 billion to shareholders this year.
The world’s biggest company by market value, which listed in the Saudi Arabian capital of Riyadh in December, will pay the dividends on a quarterly basis, it said in its 2019 financial results released on Sunday.
Capital expenditure will be cut to between $25 billion and $30 billion this year, from $32.8 billion in 2019. Even so, the firm would still need at least $100 billion to meet its dividend and capex commitments alone, almost matching its 2019 payments.
The spread of the coronavirus and the oil-price war instigated by Saudi Arabia after Russia rejected coordinated production curbs has sent Brent crude prices spiraling. They have fallen more than 50% since the end of December to around $32 a barrel, and some analysts predict they’ll drop further to below $10 a barrel.
#Dubai's DIB shareholders approve increase in foreign ownership limit | ZAWYA MENA Edition
Dubai's DIB shareholders approve increase in foreign ownership limit | ZAWYA MENA Edition:
Shareholders of Dubai Islamic Bank, the largest Islamic bank in the UAE, have approved an increase in foreign ownership limit to 40 percent proposed by the board.
The board recommended an increase in the foreign ownership limit of its shares to 40 per cent from 25 per cent, subject to regulatory and corporate approvals.
The lender reported a 2 percent rise in full-year net profit for 2019 on higher revenue and assets. Its net profit for 2019 jumped to 5.1 billion dirhams.
On January 23, 2020, DIB completed the acquisition of Noor Bank to become one of the largest Islamic banks in the world with total assets exceeding 275 billion dirhams.
Shareholders of Dubai Islamic Bank, the largest Islamic bank in the UAE, have approved an increase in foreign ownership limit to 40 percent proposed by the board.
The board recommended an increase in the foreign ownership limit of its shares to 40 per cent from 25 per cent, subject to regulatory and corporate approvals.
The lender reported a 2 percent rise in full-year net profit for 2019 on higher revenue and assets. Its net profit for 2019 jumped to 5.1 billion dirhams.
On January 23, 2020, DIB completed the acquisition of Noor Bank to become one of the largest Islamic banks in the world with total assets exceeding 275 billion dirhams.
UPDATE 1-Gulf bonds extend losses as coronavirus fears, oil price war deepen - Reuters
UPDATE 1-Gulf bonds extend losses as coronavirus fears, oil price war deepen - Reuters:
International bonds issued by borrowers in the Gulf extended losses on Monday, including Saudi government bonds and those issued by its oil giant Saudi Aramco, as the coronavirus outbreak and tumbling oil prices continued to hit the region’s debt and equity markets.
The region’s debt markets have been hit hard over the past 10 days, as uncertainty grew over the virus and by the fallout from an oil price war between Saudi Arabia and Russia that last week sent oil prices to their lowest levels since 2016.
Saudi government and Aramco 30-year dollar bonds, due in 2049, shed 0.8 cents on the dollar in early trade, Refinitiv data showed.
Aramco’s shares also slumped 3% on Monday, a day after the company reported a nearly 21% drop in its yearly profit and a plan to cut capital spending this year.
International bonds issued by borrowers in the Gulf extended losses on Monday, including Saudi government bonds and those issued by its oil giant Saudi Aramco, as the coronavirus outbreak and tumbling oil prices continued to hit the region’s debt and equity markets.
The region’s debt markets have been hit hard over the past 10 days, as uncertainty grew over the virus and by the fallout from an oil price war between Saudi Arabia and Russia that last week sent oil prices to their lowest levels since 2016.
Saudi government and Aramco 30-year dollar bonds, due in 2049, shed 0.8 cents on the dollar in early trade, Refinitiv data showed.
Aramco’s shares also slumped 3% on Monday, a day after the company reported a nearly 21% drop in its yearly profit and a plan to cut capital spending this year.
#UAE Exchange halts all new money transfers, other transactions | ZAWYA MENA Edition
UAE Exchange halts all new money transfers, other transactions | ZAWYA MENA Edition:
UAE Exchange, a subsidiary of London-listed Finablr which is owned by NMC Health’s B.R. Shetty, has temporarily halted processing of new transactions, including money transfers, in the country.
The operator of remittance houses confirmed that the suspension of services is due to the “operational challenges” it is facing at the moment.
“We have temporarily suspended acceptance of any new transactions at UAE Exchange branches and via our online channels,” the company said in a statement sent to Zawya on Monday.
The news comes shortly after the financial services firm received complaints about delayed fund transfers. Some customers had earlier complained that the money they remitted from UAE did not reflect on the recipients’ accounts for days.
UAE Exchange, a subsidiary of London-listed Finablr which is owned by NMC Health’s B.R. Shetty, has temporarily halted processing of new transactions, including money transfers, in the country.
The operator of remittance houses confirmed that the suspension of services is due to the “operational challenges” it is facing at the moment.
“We have temporarily suspended acceptance of any new transactions at UAE Exchange branches and via our online channels,” the company said in a statement sent to Zawya on Monday.
The news comes shortly after the financial services firm received complaints about delayed fund transfers. Some customers had earlier complained that the money they remitted from UAE did not reflect on the recipients’ accounts for days.
U.S. crude falls below $30 as Fed move fails to calm markets - Reuters
U.S. crude falls below $30 as Fed move fails to calm markets - Reuters:
U.S. crude fell below $30 on Monday as emergency rate cuts by the U.S. Federal Reserve and its global counterparts failed to tame markets and China’s factory output plunged at the sharpest pace in 30 years amid the spread of coronavirus.
Brent crude was down $2.89, or 8.5%, to $30.96 a barrel by 1012 GMT. The front-month price had risen $1 earlier in the session.
U.S. West Texas Intermediate (WTI) crude was at $29.94, down $1.79 or 5.6%.
To combat the economic fallout of the pandemic, the Fed on Sunday cut its key rate to near zero, triggering an unscheduled easing by the Reserve Bank of New Zealand to a record low as markets in Asia opened for trading this week.
U.S. crude fell below $30 on Monday as emergency rate cuts by the U.S. Federal Reserve and its global counterparts failed to tame markets and China’s factory output plunged at the sharpest pace in 30 years amid the spread of coronavirus.
Brent crude was down $2.89, or 8.5%, to $30.96 a barrel by 1012 GMT. The front-month price had risen $1 earlier in the session.
U.S. West Texas Intermediate (WTI) crude was at $29.94, down $1.79 or 5.6%.
To combat the economic fallout of the pandemic, the Fed on Sunday cut its key rate to near zero, triggering an unscheduled easing by the Reserve Bank of New Zealand to a record low as markets in Asia opened for trading this week.