India’s Sovereign Fund Seeks Foreign Capital for Shadow Bank - Bloomberg:
India’s National Investment & Infrastructure Fund, which counts Singapore’s Temasek Holdings Pte. among its backers, plans to tap overseas investors to shore up the capital of its shadow banking unit.
The sovereign fund, which primarily invests in Indian companies that build power plants, airports and roads, will start providing long-tenure loans through its new shadow bank unit Aseem Infrastructure Finance Ltd., according to Sujoy Bose, its chief executive officer.
Aseem, which means “unlimited” or “infinite” in Hindi, has set a lending target of as much as 1 trillion rupees ($13 billion) to back greenfield and brownfield infrastructure projects in India, Bose said in a phone interview April 3. The lender has raised around 13 billion rupees so far and plans to seek about eight times more to beef up its balance sheet, he added.
“We will scale up the capital to 100 billion rupees over a period of time by tapping overseas institutional investors from Japan to Canada,” Bose said. “We want to create a classic project finance institution.”
Monday 13 April 2020
Tehran Stocks Rally as Government Raises Funds for Virus Fight - Bloomberg
Tehran Stocks Rally as Government Raises Funds for Virus Fight - Bloomberg:
Stocks in Iran have rallied to record highs after the government announced plans to sell about $2 billion worth of state assets to raise money for the fight against the coronavirus epidemic.
The Tehran Stock Exchange’s main index of shares rose 2.5% to 623,276 points, driven mostly by industrial shares such as petrochemical producers, steel companies and banks. The index has climbed 30% since Feb. 19, when Iran reported its first confirmed cases of the virus.
With about 4,500 reported dead and more than 70,000 infected, Iran is the Middle East’s epicenter of the disease. Its ability to respond has been hampered by U.S. sanctions that have crippled its economy. On Saturday, President Hassan Rouhani instructed the Minister of Economy and Financial Affairs to expedite plans to sell stakes in a range of state-owned companies and assets on the stock exchange to bolster the country’s coffers.
Over the past two weeks Rouhani has announced about $10 billion worth of measures to support lower-income families, the healthcare system and businesses struggling with the impact of the virus. As infection rates start to flatten, the government relaxed some social distancing rules to allow most government employees to get back to work.
Stocks in Iran have rallied to record highs after the government announced plans to sell about $2 billion worth of state assets to raise money for the fight against the coronavirus epidemic.
The Tehran Stock Exchange’s main index of shares rose 2.5% to 623,276 points, driven mostly by industrial shares such as petrochemical producers, steel companies and banks. The index has climbed 30% since Feb. 19, when Iran reported its first confirmed cases of the virus.
With about 4,500 reported dead and more than 70,000 infected, Iran is the Middle East’s epicenter of the disease. Its ability to respond has been hampered by U.S. sanctions that have crippled its economy. On Saturday, President Hassan Rouhani instructed the Minister of Economy and Financial Affairs to expedite plans to sell stakes in a range of state-owned companies and assets on the stock exchange to bolster the country’s coffers.
Over the past two weeks Rouhani has announced about $10 billion worth of measures to support lower-income families, the healthcare system and businesses struggling with the impact of the virus. As infection rates start to flatten, the government relaxed some social distancing rules to allow most government employees to get back to work.
Will Historic OPEC+ Cuts Work? Oil Timespreads Say Maybe Not - Bloomberg
Will Historic OPEC+ Cuts Work? Oil Timespreads Say Maybe Not - Bloomberg:
Oil timespreads are showing the opposite of what was expected after a historic deal among global producers to slash output.
Brent crude’s six-month contango deepened Monday following the agreement that will curb production by nearly 10%. A market structure where the spot price of a commodity is lower than later-dated contracts, a contango typically indicates over-supply. Meanwhile, the prompt spread of the global benchmark crude also widened slightly.
The timespreads show there’s skepticism the 9.7 million barrels a day of planned production cuts will be enough to steady a market battered by the coronavirus. Citigroup Inc. said the reductions would do little to stem the price rout, while Goldman Sachs Group Inc. described the deal as “historic yet insufficient.”
“The oversupply situation is just so large and the market’s interpretation of the deal is that it’s just not enough,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “We’re going deeper into contango, and that’s not a good sign.”
Oil timespreads are showing the opposite of what was expected after a historic deal among global producers to slash output.
Brent crude’s six-month contango deepened Monday following the agreement that will curb production by nearly 10%. A market structure where the spot price of a commodity is lower than later-dated contracts, a contango typically indicates over-supply. Meanwhile, the prompt spread of the global benchmark crude also widened slightly.
The timespreads show there’s skepticism the 9.7 million barrels a day of planned production cuts will be enough to steady a market battered by the coronavirus. Citigroup Inc. said the reductions would do little to stem the price rout, while Goldman Sachs Group Inc. described the deal as “historic yet insufficient.”
“The oversupply situation is just so large and the market’s interpretation of the deal is that it’s just not enough,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “We’re going deeper into contango, and that’s not a good sign.”
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar
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.
#UAE central bank urges commercial lenders to use stimulus scheme - Reuters
UAE central bank urges commercial lenders to use stimulus scheme - Reuters:
The United Arab Emirates (UAE) central bank has urged commercial lenders to use the $70 billion-worth of capital and liquidity measures launched by the regulator to support the economy during the coronavirus outbreak.
The UAE, which as of April 12 had registered 4,123 virus cases, has sought to stem the spread of the disease by bringing vital sectors such as tourism and transport to a near halt.
To offset that, the central bank has announced over the past few weeks measures worth $70 billion to guarantee liquidity in the banking system, so banks can support private sector corporates, small enterprises and individuals.
Since the launch of the support scheme on March 14, the central bank has provided 10 billion ($2.72 billion) dirhams to banks in the form of zero interest funding and over 61 billion dirhams in the form of lowered cash reserve requirements, it said in a statement late on Sunday.
The United Arab Emirates (UAE) central bank has urged commercial lenders to use the $70 billion-worth of capital and liquidity measures launched by the regulator to support the economy during the coronavirus outbreak.
The UAE, which as of April 12 had registered 4,123 virus cases, has sought to stem the spread of the disease by bringing vital sectors such as tourism and transport to a near halt.
To offset that, the central bank has announced over the past few weeks measures worth $70 billion to guarantee liquidity in the banking system, so banks can support private sector corporates, small enterprises and individuals.
Since the launch of the support scheme on March 14, the central bank has provided 10 billion ($2.72 billion) dirhams to banks in the form of zero interest funding and over 61 billion dirhams in the form of lowered cash reserve requirements, it said in a statement late on Sunday.
Oil climbs after OPEC+ agree record output cut - Reuters
Oil climbs after OPEC+ agree record output cut - Reuters:
Oil prices rose on Monday after major producers finally agreed their biggest-ever output cut, but gains were capped amid concern that it won’t be enough to head off oversupply with the coronavirus pandemic hammering demand.
After four days of wrangling, the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a group known as OPEC+, agreed on Sunday to cut output by 9.7 million barrels per day (bpd) in May and June to support oil prices, representing around 10% of global supply.
Brent crude LCOc1 futures rose 16 cents, or 0.5%, to $31.64 a barrel by 0709 GMT after opening at a session high of $33.99. U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 37 cents, or 1.6%, to $23.13 a barrel, after hitting a high of $24.74.
“What this deal does is enable the global oil industry and the national economies and other industries that depend upon it to avoid a very deep crisis,” said IHS Markit Vice Chairman Daniel Yergin.
Oil prices rose on Monday after major producers finally agreed their biggest-ever output cut, but gains were capped amid concern that it won’t be enough to head off oversupply with the coronavirus pandemic hammering demand.
After four days of wrangling, the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a group known as OPEC+, agreed on Sunday to cut output by 9.7 million barrels per day (bpd) in May and June to support oil prices, representing around 10% of global supply.
Brent crude LCOc1 futures rose 16 cents, or 0.5%, to $31.64 a barrel by 0709 GMT after opening at a session high of $33.99. U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 37 cents, or 1.6%, to $23.13 a barrel, after hitting a high of $24.74.
“What this deal does is enable the global oil industry and the national economies and other industries that depend upon it to avoid a very deep crisis,” said IHS Markit Vice Chairman Daniel Yergin.
In oil market sunk by coronavirus, giant output cuts make ripple, not big waves - Reuters
In oil market sunk by coronavirus, giant output cuts make ripple, not big waves - Reuters:
Minimal oil price gains on Monday show record output cuts by giant producers will still leave them with a mountain to climb to restore market balance, industry watchers said, with the coronavirus pandemic decimating demand just as stocks swell.
The day after the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia agreed to reduce output by 9.7 million barrels per day (bpd) in May and June - equal to nearly 10% of global supply - prices inched up 1% on average, remaining 50-60% down for the year so far.
That headline cut by the grouping known as OPEC+ may be more than four times deeper than the previous record set in 2008, and may provide a floor for prices according to some analysts, but the reduction still dwarfed by the near 30 million bpd drop in demand in April already anticipated by forecasters like Goldman Sachs.
What’s more, governments in countries around the globe are considering extending travel and social lockdown measures that have sapped fuel use in order to prevent the coronavirus from spreading.
Minimal oil price gains on Monday show record output cuts by giant producers will still leave them with a mountain to climb to restore market balance, industry watchers said, with the coronavirus pandemic decimating demand just as stocks swell.
The day after the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia agreed to reduce output by 9.7 million barrels per day (bpd) in May and June - equal to nearly 10% of global supply - prices inched up 1% on average, remaining 50-60% down for the year so far.
That headline cut by the grouping known as OPEC+ may be more than four times deeper than the previous record set in 2008, and may provide a floor for prices according to some analysts, but the reduction still dwarfed by the near 30 million bpd drop in demand in April already anticipated by forecasters like Goldman Sachs.
What’s more, governments in countries around the globe are considering extending travel and social lockdown measures that have sapped fuel use in order to prevent the coronavirus from spreading.
Oil Prices: Market Reacts to OPEC+ Deal to Cut Production - Bloomberg
Oil Prices: Market Reacts to OPEC+ Deal to Cut Production - Bloomberg:
Oil declined after an initial jump as an historic deal among the world’s top producers to cut global output by nearly a 10th failed to revive prices that have been pummeled by the coronavirus.
Futures in New York rose as much as 9% but quickly reversed those gains as markets opened following a three-day break. The OPEC+ alliance agreed to a plan to slash production by 9.7 million barrels a day starting in May, ending a price war between Saudi Arabia and Russia. The producer group reached a deal following days of intense negotiations after Mexico declined to endorse the original agreement reached Thursday.
The U.S., Brazil and Canada will contribute another 3.7 million barrels on paper as their production declines, and other Group of 20 nations will cut an additional 1.3 million. The G-20 numbers don’t represent real voluntary cuts, but rather reflect the impact that low prices have already had on output and would take months, or perhaps more than a year, to occur.
Oil declined after an initial jump as an historic deal among the world’s top producers to cut global output by nearly a 10th failed to revive prices that have been pummeled by the coronavirus.
Futures in New York rose as much as 9% but quickly reversed those gains as markets opened following a three-day break. The OPEC+ alliance agreed to a plan to slash production by 9.7 million barrels a day starting in May, ending a price war between Saudi Arabia and Russia. The producer group reached a deal following days of intense negotiations after Mexico declined to endorse the original agreement reached Thursday.
The U.S., Brazil and Canada will contribute another 3.7 million barrels on paper as their production declines, and other Group of 20 nations will cut an additional 1.3 million. The G-20 numbers don’t represent real voluntary cuts, but rather reflect the impact that low prices have already had on output and would take months, or perhaps more than a year, to occur.
NMC Creditors Said Forming Committee for $6.6 Billion Debt Talks - Bloomberg
NMC Creditors Said Forming Committee for $6.6 Billion Debt Talks - Bloomberg:
The main lenders to embattled NMC Health Plc are setting up a coordinating committee, taking a major step toward restructuring the hospital operator’s $6.6 billion debt, according to people with knowledge of the matter.
HSBC Holdings Plc, Barclays Plc and Standard Chartered Plc will join Abu Dhabi Commercial Bank PJSC, Dubai Islamic Bank PJSC and Abu Dhabi Islamic Bank PJSC to lead the debt talks with representatives for NMC, the people said, asking not to be named because the discussions are private. The company was placed in administration last week.
The coordinating committee is set to hire Deloitte LLP and Clifford Chance LLP to advise on the negotiations, the people said. The banks and advisers still have to formally agree on the formation of the committee and its final composition may change, they said.
Representatives for HSBC, Standard Chartered, Abu Dhabi Commercial Bank and Abu Dhabi Islamic Bank declined to comment. Representatives for Deloitte, NMC, Clifford Chance, Barclays and Dubai Islamic Bank didn’t immediately respond to requests for comment.
The main lenders to embattled NMC Health Plc are setting up a coordinating committee, taking a major step toward restructuring the hospital operator’s $6.6 billion debt, according to people with knowledge of the matter.
HSBC Holdings Plc, Barclays Plc and Standard Chartered Plc will join Abu Dhabi Commercial Bank PJSC, Dubai Islamic Bank PJSC and Abu Dhabi Islamic Bank PJSC to lead the debt talks with representatives for NMC, the people said, asking not to be named because the discussions are private. The company was placed in administration last week.
The coordinating committee is set to hire Deloitte LLP and Clifford Chance LLP to advise on the negotiations, the people said. The banks and advisers still have to formally agree on the formation of the committee and its final composition may change, they said.
Representatives for HSBC, Standard Chartered, Abu Dhabi Commercial Bank and Abu Dhabi Islamic Bank declined to comment. Representatives for Deloitte, NMC, Clifford Chance, Barclays and Dubai Islamic Bank didn’t immediately respond to requests for comment.
Oil futures little changed despite record output cut by OPEC+ - Reuters
Oil futures little changed despite record output cut by OPEC+ - Reuters:
Oil futures were little changed on Sunday even after major oil producers reached a deal for a record 10 million bpd output cut, with analysts saying the agreement is insufficient to head off oversupply as the coronavirus hammers demand.
Total global oil supply cuts could come to 20 million barrels per day, around 20% of global supply, Kuwait’s oil minister said. After four days of wrangling, OPEC, Russia and other oil-producing nations, a group known as OPEC+, agreed on Sunday to cut output by a record amount of 9.7 million barrels per day, representing around 10% of global supply to support oil prices amid the pandemic, sources said.
“If G20 adds about another 10 mln bpd, then the world is meeting the total imbalance from May and this would be a massive relief,” Rystad Energy said. “Still storage will be filled to nearly the top in April, but the market will stabilize.”
In early trade Brent crude LCOc1 futures rose 6 cents to $31.54 a barrel by 2211 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 22 cents to $22.54 a barrel.
Morgan Stanley on Sunday raised its second-quarter oil price forecasts to $25 a barrel for Brent and $22.50 a barrel for WTI. However, the bank said the 9.7 mln bpd cut would not prevent sharp inventory build-ups in the coming months, keeping prices under pressure.
Oil futures were little changed on Sunday even after major oil producers reached a deal for a record 10 million bpd output cut, with analysts saying the agreement is insufficient to head off oversupply as the coronavirus hammers demand.
Total global oil supply cuts could come to 20 million barrels per day, around 20% of global supply, Kuwait’s oil minister said. After four days of wrangling, OPEC, Russia and other oil-producing nations, a group known as OPEC+, agreed on Sunday to cut output by a record amount of 9.7 million barrels per day, representing around 10% of global supply to support oil prices amid the pandemic, sources said.
“If G20 adds about another 10 mln bpd, then the world is meeting the total imbalance from May and this would be a massive relief,” Rystad Energy said. “Still storage will be filled to nearly the top in April, but the market will stabilize.”
In early trade Brent crude LCOc1 futures rose 6 cents to $31.54 a barrel by 2211 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 22 cents to $22.54 a barrel.
Morgan Stanley on Sunday raised its second-quarter oil price forecasts to $25 a barrel for Brent and $22.50 a barrel for WTI. However, the bank said the 9.7 mln bpd cut would not prevent sharp inventory build-ups in the coming months, keeping prices under pressure.