Oil posts double-digit gains after U.S. crude storage build slows - Reuters:
Oil prices surged more than 10% on Wednesday after U.S. crude stockpiles grew less than expected and gasoline posted a surprise draw, feeding optimism that fuel consumption will recover as some European countries and U.S. state ease coronavirus lockdowns.
Crude prices crashed earlier this month, with global fuel tanking roughly 30% due to efforts to slow the spread of the virus. To ease the growing glut, major oil producing-nations agreed in mid-April to cut output by nearly 10 million barrels per day. Shale producers and oil majors are also reducing production.
U.S. West Texas Intermediate (WTI) crude futures settled at $15.06 a barrel, jumping $2.72, or 22%. Brent crude futures settled at $22.54 a barrel, up $2.08, or 10.2%.
U.S. crude oil inventories swelled by 9 million barrels last week to 527.6 million barrels, about 7 million barrels below their record high, the Energy Information Administration said. The build was slightly less than the 10.6 million-barrel rise analysts had expected in a Reuters poll.
Wednesday 29 April 2020
#SaudiArabia Suffers Crisis Flashback But Finds New Ways to Cope - Bloomberg
Saudi Arabia Suffers Crisis Flashback But Finds New Ways to Cope - Bloomberg:
It’s a different Saudi Arabia that confronts another collapse in oil prices.
When the kingdom last stared down the crash in crude, it wielded reserves that peaked at over $735 billion in 2014. The stockpile was down by over a third just three years later, channeled almost entirely toward deficit spending.
Saudi Arabia may now be blowing through its reserves at the fastest pace in at least two decades, but the government is barely using the holdings to cover fiscal needs. Following its debut in international bond markets in 2016, borrowing covered most of the budget deficit in the first quarter.
Goldman Sachs Group Inc. predicts the central bank’s reserves, down more than 100 billion riyals ($27 billion) in March alone, will stabilize soon.
“Despite a further anticipated decline in oil revenues in the second quarter, we expect the rate of reserve burn to slow,” Farouk Soussa, a Goldman Sachs economist, said in a report.
It’s a different Saudi Arabia that confronts another collapse in oil prices.
When the kingdom last stared down the crash in crude, it wielded reserves that peaked at over $735 billion in 2014. The stockpile was down by over a third just three years later, channeled almost entirely toward deficit spending.
Saudi Arabia may now be blowing through its reserves at the fastest pace in at least two decades, but the government is barely using the holdings to cover fiscal needs. Following its debut in international bond markets in 2016, borrowing covered most of the budget deficit in the first quarter.
Goldman Sachs Group Inc. predicts the central bank’s reserves, down more than 100 billion riyals ($27 billion) in March alone, will stabilize soon.
“Despite a further anticipated decline in oil revenues in the second quarter, we expect the rate of reserve burn to slow,” Farouk Soussa, a Goldman Sachs economist, said in a report.
Oil Surges on Biggest Jump in U.S. Gasoline Demand in 11 Months - Bloomberg
Oil Surges on Biggest Jump in U.S. Gasoline Demand in 11 Months - Bloomberg:
Oil rose after the U.S. reported the biggest jump in gasoline demand since last year, offering a glimmer of hope that consumption could gradually return as major producers continue to cut output to counter a global glut.
West Texas Intermediate futures surged as much as 36% Wednesday. U.S. gasoline stocks fell by 3.67 million barrels compared to an estimated build of 2.49 million, according to the U.S. Energy Information Administration. Weekly gasoline supplied, an indicator of demand, rose by 549,000 barrels, the most since May.
“That was a nice surprise to the market,” Nick Holmes, portfolio manager at Tortoise, said regarding better-than-expected results for crude inventory and gasoline supply in the EIA report.
Valero Energy Corp. said in its first quarter earnings conference call that it sees gasoline demand to recover gradually, along with jet fuel at a slower pace. The company sees the best recovery in demand in the Midwest.
Oil rose after the U.S. reported the biggest jump in gasoline demand since last year, offering a glimmer of hope that consumption could gradually return as major producers continue to cut output to counter a global glut.
West Texas Intermediate futures surged as much as 36% Wednesday. U.S. gasoline stocks fell by 3.67 million barrels compared to an estimated build of 2.49 million, according to the U.S. Energy Information Administration. Weekly gasoline supplied, an indicator of demand, rose by 549,000 barrels, the most since May.
“That was a nice surprise to the market,” Nick Holmes, portfolio manager at Tortoise, said regarding better-than-expected results for crude inventory and gasoline supply in the EIA report.
Valero Energy Corp. said in its first quarter earnings conference call that it sees gasoline demand to recover gradually, along with jet fuel at a slower pace. The company sees the best recovery in demand in the Midwest.
#Oman tells state companies to replace expats with locals - ONA - Reuters
Oman tells state companies to replace expats with locals - ONA - Reuters:
Oman’s finance ministry told state companies on Wednesday to replace foreign workers with locals, as part of efforts to develop the national workforce, state-owned Oman News Agency reported.
The move is part of the government’s running so-called “Omanisation” policy, which is aimed at improving the number and quality of jobs available for Omani citizens.
Low oil prices and the economic slowdown caused by the new coronavirus outbreak are straining the finances of Oman, a relatively small energy producer with debt rated “junk” by all the major rating agencies.
Two weeks ago, the state barred private companies from trying to lessen the economic burden of the coronavirus crisis by firing Omanis.
Oman’s finance ministry told state companies on Wednesday to replace foreign workers with locals, as part of efforts to develop the national workforce, state-owned Oman News Agency reported.
The move is part of the government’s running so-called “Omanisation” policy, which is aimed at improving the number and quality of jobs available for Omani citizens.
Low oil prices and the economic slowdown caused by the new coronavirus outbreak are straining the finances of Oman, a relatively small energy producer with debt rated “junk” by all the major rating agencies.
Two weeks ago, the state barred private companies from trying to lessen the economic burden of the coronavirus crisis by firing Omanis.
#AbuDhabi’s Etihad delays return of passenger flights to June 16 - Reuters
Abu Dhabi’s Etihad delays return of passenger flights to June 16 - Reuters:
Abu Dhabi’s Etihad Airways on Wednesday said it now plans to start operating regular passenger flights from June 16, delaying the resumption for a second time this month.
The airline has opened bookings for flights across its network from June 16, it said in a statement, though cautioned that could change should current restrictions be extended.
Etihad on April 25 said it would extend the suspension until at least May 16 due to the coronavirus outbreak. It earlier planned to start resuming flights from May 1.
Abu Dhabi’s Etihad Airways on Wednesday said it now plans to start operating regular passenger flights from June 16, delaying the resumption for a second time this month.
The airline has opened bookings for flights across its network from June 16, it said in a statement, though cautioned that could change should current restrictions be extended.
Etihad on April 25 said it would extend the suspension until at least May 16 due to the coronavirus outbreak. It earlier planned to start resuming flights from May 1.
Gulf Fiscal Response to Crisis Faulted as ‘Too Small and Narrow’ - Bloomberg
Gulf Fiscal Response to Crisis Faulted as ‘Too Small and Narrow’ - Bloomberg:
The extent of fiscal support provided by Gulf Arab economies in response to the global coronavirus pandemic is “too small and narrow” and lags behind similar efforts in Europe, the U.S. and Asia, according to Oxford Economics.
“Although some of the lockdown restrictions are being eased” across the six members of the energy-rich Gulf Cooperation Council, “the non-oil economy is not yet out of the woods,” Scott Livermore and Ahmed Esam at Oxford Economics said in a report. “And authorities can still aid the recovery across the GCC by expanding the depth and breadth of policy support.”
The extent of fiscal support provided by Gulf Arab economies in response to the global coronavirus pandemic is “too small and narrow” and lags behind similar efforts in Europe, the U.S. and Asia, according to Oxford Economics.
“Although some of the lockdown restrictions are being eased” across the six members of the energy-rich Gulf Cooperation Council, “the non-oil economy is not yet out of the woods,” Scott Livermore and Ahmed Esam at Oxford Economics said in a report. “And authorities can still aid the recovery across the GCC by expanding the depth and breadth of policy support.”
#UAE News: #AbuDhabi Shelves Private Equity Sale Over Coronavirus - Bloomberg
UAE News: Abu Dhabi Shelves Private Equity Sale Over Coronavirus - Bloomberg:
The Abu Dhabi Investment Authority is delaying the sale of $2 billion in private-equity fund stakes after the outbreak of the deadly coronavirus.
The sovereign wealth fund, which is estimated to have about $580 billion under management, was in talks with several investors including money manager Ardian about selling chunks of the portfolio, according to people familiar with the discussions. The market turmoil triggered by the crisis made it difficult for them to agree on how much the stakes were worth, said the people, who asked not to be identified because the talks are private.
ADIA plans to restart the sales process in the second half of the year, one of the people said. Spokespeople for ADIA and Ardian declined to comment.
The fallout from the coronavirus pandemic is roiling companies owned by private equity funds and has hurt the niche business of buying and selling buyout stakes -- known as secondary transactions. Deals have started to dry up amid estimates that portfolios will drop in value by as much as 50% in the first half of the year. Some investors have walked away from secondary deals that were close to being signed, according to Steve Lessar, co-head of secondaries and liquidity solutions in BlackRock Inc.’s Private Equity Partners business.
The Abu Dhabi Investment Authority is delaying the sale of $2 billion in private-equity fund stakes after the outbreak of the deadly coronavirus.
The sovereign wealth fund, which is estimated to have about $580 billion under management, was in talks with several investors including money manager Ardian about selling chunks of the portfolio, according to people familiar with the discussions. The market turmoil triggered by the crisis made it difficult for them to agree on how much the stakes were worth, said the people, who asked not to be identified because the talks are private.
ADIA plans to restart the sales process in the second half of the year, one of the people said. Spokespeople for ADIA and Ardian declined to comment.
The fallout from the coronavirus pandemic is roiling companies owned by private equity funds and has hurt the niche business of buying and selling buyout stakes -- known as secondary transactions. Deals have started to dry up amid estimates that portfolios will drop in value by as much as 50% in the first half of the year. Some investors have walked away from secondary deals that were close to being signed, according to Steve Lessar, co-head of secondaries and liquidity solutions in BlackRock Inc.’s Private Equity Partners business.
Moody's downgrades #Dubai utility DEWA to Baa2, outlook still negative - Reuters
Moody's downgrades Dubai utility DEWA to Baa2, outlook still negative - Reuters:
Moody’s on Wednesday downgraded the rating of Dubai Electricity & Water Authority (DEWA), the state-owned monopoly provider of electricity and water in Dubai, to Baa2 from Baa1 and maintained a negative outlook.
Many investors view the ratings of government-related entities in Dubai as an indicator of the government’s own credit profile as Dubai is not rated by any of the major ratings agencies.
“Moody’s expects the coronavirus outbreak will aggravate the structural slowdown in real GDP growth for the Emirate of Dubai, contributing to the further deterioration of fiscal strength of the government via increasing debt levels,” the rating agency said in a report.
“The downgrade also reflects the risk of sustained large dividend transfers from DEWA to the government of Dubai as a result of the deteriorating economic and fiscal health of the emirate.”
Moody’s on Wednesday downgraded the rating of Dubai Electricity & Water Authority (DEWA), the state-owned monopoly provider of electricity and water in Dubai, to Baa2 from Baa1 and maintained a negative outlook.
Many investors view the ratings of government-related entities in Dubai as an indicator of the government’s own credit profile as Dubai is not rated by any of the major ratings agencies.
“Moody’s expects the coronavirus outbreak will aggravate the structural slowdown in real GDP growth for the Emirate of Dubai, contributing to the further deterioration of fiscal strength of the government via increasing debt levels,” the rating agency said in a report.
“The downgrade also reflects the risk of sustained large dividend transfers from DEWA to the government of Dubai as a result of the deteriorating economic and fiscal health of the emirate.”
Emerging sovereigns set for borrowing binge but weaker names struggle - Reuters
Emerging sovereigns set for borrowing binge but weaker names struggle - Reuters:
A flurry of international debt issuance by investment-grade emerging market sovereigns in 2020 should help offset a dearth of sales by lower-rated names, barred from capital markets until they can muster support in the form of debt relief or emergency funding.
Gulf governments such as Qatar, Abu Dhabi and Saudi Arabia, have provided a significant chunk of 2020 bond sales so far, accounting for around half of the sovereign emerging sales as they scrambled to raise cash to plug budget shortfalls caused by plunging oil prices.
Israel and Indonesia have also raised money in the wake of the COVID-19 outbreak.
With $100 billon already issued year to date, despite a drought in March, emerging sovereign debt issuance could surpass the record of $178.3 billion in 2017, said Stefan Weiler, head of Central and Eastern Europe, Middle East and Africa debt capital markets at JPMorgan.
A flurry of international debt issuance by investment-grade emerging market sovereigns in 2020 should help offset a dearth of sales by lower-rated names, barred from capital markets until they can muster support in the form of debt relief or emergency funding.
Gulf governments such as Qatar, Abu Dhabi and Saudi Arabia, have provided a significant chunk of 2020 bond sales so far, accounting for around half of the sovereign emerging sales as they scrambled to raise cash to plug budget shortfalls caused by plunging oil prices.
Israel and Indonesia have also raised money in the wake of the COVID-19 outbreak.
With $100 billon already issued year to date, despite a drought in March, emerging sovereign debt issuance could surpass the record of $178.3 billion in 2017, said Stefan Weiler, head of Central and Eastern Europe, Middle East and Africa debt capital markets at JPMorgan.
Mideast Stocks: #Saudi leads Gulf higher as oil prices gain | ZAWYA MENA Edition
Mideast Stocks: Saudi leads Gulf higher as oil prices gain | ZAWYA MENA Edition:
Saudi Arabian stocks ended higher on Wednesday, buoyed by a leap in oil prices, while bourses in the United Arab Emirates were little changed as banks faced write-downs on NMC debt.
June Brent crude futures were up 4.6%, or 95 cents, at $21.41 a barrel by 1139 GMT, as U.S. stockpiles rose less than expected and on hopes that demand will improve as some European countries and some U.S. cities moved to ease restrictions.
Saudi Arabia's benchmark index closed 1.5% higher, with Al Rajhi Bank 1120.SE rising 2.7% and Jabal Omar Development gaining 6%.
Elsewhere, oil giant Saudi Aramco ended up 0.8%.
In Dubai, the index edged up 0.3%, as blue-chip developer Emaar Properties increased 1.1%, while its unit Emaar Development jumped 4.1%.
However, Dubai Islamic Bank, which has a $425 million exposure to troubled Hospital Group NMC Heath, dropped 0.8%.
Banks in the United Arab Emirates with exposure to troubled hospital operator NMC Health risk having to make provisions for between 25% and 50% on more than $2 billion of outstanding debt to the company, Reuters reported citing three banking sources.
The Abu Dhabi index gave up early gains to end flat. First Abu Dhabi Bank, the country's largest lender, added 0.4%, whereas Abu Dhabi Commercial Bank, which has an exposure to NMC of $981 million, fell 0.5%.
Saudi Arabian stocks ended higher on Wednesday, buoyed by a leap in oil prices, while bourses in the United Arab Emirates were little changed as banks faced write-downs on NMC debt.
June Brent crude futures were up 4.6%, or 95 cents, at $21.41 a barrel by 1139 GMT, as U.S. stockpiles rose less than expected and on hopes that demand will improve as some European countries and some U.S. cities moved to ease restrictions.
Saudi Arabia's benchmark index closed 1.5% higher, with Al Rajhi Bank 1120.SE rising 2.7% and Jabal Omar Development gaining 6%.
Elsewhere, oil giant Saudi Aramco ended up 0.8%.
In Dubai, the index edged up 0.3%, as blue-chip developer Emaar Properties increased 1.1%, while its unit Emaar Development jumped 4.1%.
However, Dubai Islamic Bank, which has a $425 million exposure to troubled Hospital Group NMC Heath, dropped 0.8%.
Banks in the United Arab Emirates with exposure to troubled hospital operator NMC Health risk having to make provisions for between 25% and 50% on more than $2 billion of outstanding debt to the company, Reuters reported citing three banking sources.
The Abu Dhabi index gave up early gains to end flat. First Abu Dhabi Bank, the country's largest lender, added 0.4%, whereas Abu Dhabi Commercial Bank, which has an exposure to NMC of $981 million, fell 0.5%.
In Qatar, the index rose 1.2%, most of the stocks on the index advanced including Commercial Bank, which closed 4% higher.
But Qatar Insurance slipped 1.1%, after it posted a net loss of 185 million riyals ($50.82 million) in the first-quarter, against a profit of 266 million riyals a year earlier.
Oil prices jump after smaller than feared U.S. inventories build - Reuters
Oil prices jump after smaller than feared U.S. inventories build - Reuters:
Oil prices jumped on Wednesday after U.S. stockpiles rose less than expected and gasoline stocks fell, with support also coming from hopes that demand will improve as some European countries and U.S. cities moved to ease coronavirus lockdowns.
June Brent crude LCOc1 futures were up 11.88%, or $2.43, at $22.89 a barrel by 1340 GMT. The more active July contract added $1.83, or 8.05%, to $24.57.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 24.31% or $3, to $15.34, after a 27% plunge over the first two days of the week.
U.S. crude inventories rose by 10 million barrels to 510 million barrels in the week to April 24, data from the American Petroleum Institute (API) showed on Tuesday, compared with analyst expectations of 10.6 million barrels.
Oil prices jumped on Wednesday after U.S. stockpiles rose less than expected and gasoline stocks fell, with support also coming from hopes that demand will improve as some European countries and U.S. cities moved to ease coronavirus lockdowns.
June Brent crude LCOc1 futures were up 11.88%, or $2.43, at $22.89 a barrel by 1340 GMT. The more active July contract added $1.83, or 8.05%, to $24.57.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 24.31% or $3, to $15.34, after a 27% plunge over the first two days of the week.
U.S. crude inventories rose by 10 million barrels to 510 million barrels in the week to April 24, data from the American Petroleum Institute (API) showed on Tuesday, compared with analyst expectations of 10.6 million barrels.
Airlines and oil giants are on the brink. No government should offer them a lifeline | Environment | The Guardian
Airlines and oil giants are on the brink. No government should offer them a lifeline | Environment | The Guardian:
Do Not Resuscitate. This tag should be attached to the oil, airline and car industries. Governments should provide financial support to company workers while refashioning the economy to provide new jobs in different sectors. They should prop up only those sectors that will help secure the survival of humanity and the rest of the living world.
They should either buy up the dirty industries and turn them towards clean technologies, or do what they often call for but never really want: let the market decide. In other words, allow these companies to fail.
This is our second great chance to do things differently. It could be our last. The first, in 2008, was spectacularly squandered. Vast amounts of public money were spent reassembling the filthy old economy, while ensuring that wealth remained in the hands of the rich. Today, many governments appear determined to repeat that catastrophic mistake.
Do Not Resuscitate. This tag should be attached to the oil, airline and car industries. Governments should provide financial support to company workers while refashioning the economy to provide new jobs in different sectors. They should prop up only those sectors that will help secure the survival of humanity and the rest of the living world.
They should either buy up the dirty industries and turn them towards clean technologies, or do what they often call for but never really want: let the market decide. In other words, allow these companies to fail.
This is our second great chance to do things differently. It could be our last. The first, in 2008, was spectacularly squandered. Vast amounts of public money were spent reassembling the filthy old economy, while ensuring that wealth remained in the hands of the rich. Today, many governments appear determined to repeat that catastrophic mistake.
Covid-19 Oil Collapse Is Geopolitical Reset in Disguise - Bloomberg
Covid-19 Oil Collapse Is Geopolitical Reset in Disguise - Bloomberg:
The world is on the cusp of a geopolitical reset. The global pandemic could well undermine international institutions, reinforce nationalism and spur de-globalization. But far-sighted leadership could also rekindle cooperation, glimmers of which appeared in the G-20’s offer of debt relief for some of the world’s poorest countries, a joint plea from more than 200 former national leaders for a more coordinated pandemic response and an unprecedented multinational pact to arrest the crash in oil markets.
The remarkable effort to address the turmoil in the oil markets will be critical to oil’s eventual balance — although the past two weeks have shown that its promised production cuts were too slow and insufficient in the face of oil demand’s plunge. The challenges and opportunities that the collapse in the oil market is pushing to the fore are perhaps just the first taste of Covid-19 induced geopolitical crises that world leaders and policy makers will need to grapple with in the coming months and years.
As history has shown, a big change in energy markets often precipitates a big change in geopolitics. For instance, the shift from coal to oil catapulted Middle Eastern countries to strategic significance. And the recent technology-driven boom in shale oil elevated the United States to net oil exporter status, changing its outlook on the importance of oil in global affairs. We now face a disruption of such proportions that it, too, will reorder some power relationships.
The world is on the cusp of a geopolitical reset. The global pandemic could well undermine international institutions, reinforce nationalism and spur de-globalization. But far-sighted leadership could also rekindle cooperation, glimmers of which appeared in the G-20’s offer of debt relief for some of the world’s poorest countries, a joint plea from more than 200 former national leaders for a more coordinated pandemic response and an unprecedented multinational pact to arrest the crash in oil markets.
The remarkable effort to address the turmoil in the oil markets will be critical to oil’s eventual balance — although the past two weeks have shown that its promised production cuts were too slow and insufficient in the face of oil demand’s plunge. The challenges and opportunities that the collapse in the oil market is pushing to the fore are perhaps just the first taste of Covid-19 induced geopolitical crises that world leaders and policy makers will need to grapple with in the coming months and years.
As history has shown, a big change in energy markets often precipitates a big change in geopolitics. For instance, the shift from coal to oil catapulted Middle Eastern countries to strategic significance. And the recent technology-driven boom in shale oil elevated the United States to net oil exporter status, changing its outlook on the importance of oil in global affairs. We now face a disruption of such proportions that it, too, will reorder some power relationships.
Expect Further FX Reserve Drawdowns in #SaudiArabia, Says Monica Malik of Abu Dhabi Commercial Bank - Bloomberg
Expect Further FX Reserve Drawdowns in Saudi Arabia, Says Monica Malik of Abu Dhabi Commercial Bank - Bloomberg:
Monica Malik, chief economist at Abu Dhabi Commercial Bank, discusses Saudi Arabia’s central bank depleting its net foreign assets in March and what it means for the economy. She speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Monica Malik, chief economist at Abu Dhabi Commercial Bank, discusses Saudi Arabia’s central bank depleting its net foreign assets in March and what it means for the economy. She speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Record Plunge in #Saudi Reserves Only Prelude to Looming Drawdown - Bloomberg
Record Plunge in Saudi Reserves Only Prelude to Looming Drawdown - Bloomberg:
Saudi Arabia’s central bank depleted its net foreign assets in March at the fastest clip since at least 2000, showing the severity of the damage inflicted by the slump in oil prices even as the government is only starting to lean on the holdings to cover budget needs.
The drop of more than 100 billion riyals ($27 billion), or over 5% from the previous month, brought the stockpile to $464 billion, the lowest since 2011, according to data compiled by Bloomberg. In the first quarter, the government ran a budget deficit of 34.1 billion riyals, which was mostly covered by external and domestic borrowing, Finance Ministry data showed on Wednesday.
Economists say the world’s biggest oil exporter will have have to dig deeper into reserves despite scaling back spending and looking to rely more on debt to withstand the historic collapse in commodity markets. Crude sales account for the majority of the government’s revenue.
Saudi Arabia’s central bank depleted its net foreign assets in March at the fastest clip since at least 2000, showing the severity of the damage inflicted by the slump in oil prices even as the government is only starting to lean on the holdings to cover budget needs.
The drop of more than 100 billion riyals ($27 billion), or over 5% from the previous month, brought the stockpile to $464 billion, the lowest since 2011, according to data compiled by Bloomberg. In the first quarter, the government ran a budget deficit of 34.1 billion riyals, which was mostly covered by external and domestic borrowing, Finance Ministry data showed on Wednesday.
Economists say the world’s biggest oil exporter will have have to dig deeper into reserves despite scaling back spending and looking to rely more on debt to withstand the historic collapse in commodity markets. Crude sales account for the majority of the government’s revenue.
'Small group of employees' behind fraud at NMC Health | Banking – Gulf News
'Small group of employees' behind fraud at NMC Health | Banking – Gulf News:
Fraudulent bank accounts were created and cheques issued by a "small group of current and former" executives at NMC Health, according to the founder, the Indian billionaire Dr. B.R. Shetty.
The former chairman of the Abu Dhabi headquartered hospital operator said, investigations he commissioned found:
"The fraudulent creation and operating of bank accounts in my name including many fraudulent transfers that I neither authorised, consented to, or had any knowledge of. "The fraudulent creation of loans, personal guarantees, cheques and bank transfers in my name, and using my forged signature, that I neither authorised, consented to, or had any knowledge of."
This is the first time Dr. Shetty, who has been in India for the last two months and more on a family issue, has issued a statement based on investigations he had commissioned. He had brought in a consultancy to conduct it after initial revelations came to light that NMC Health had not been fully transparent with its finances.
Dr. Shetty had stepped down as executive chairman after the then Board of Directors barred him from attending any meetings.
 |
| B.R. Shetty is a multi-billionaire non-resident Indian (NRI) who has dedicated a large part of his life building an empire of healthcare facilities and other companies in the country. Forbes set his personal net worth at a whopping $4.2 billion in August 2018.Image Credit: Ahmed Kutty/ Gulf News |
Fraudulent bank accounts were created and cheques issued by a "small group of current and former" executives at NMC Health, according to the founder, the Indian billionaire Dr. B.R. Shetty.
The former chairman of the Abu Dhabi headquartered hospital operator said, investigations he commissioned found:
"The fraudulent creation and operating of bank accounts in my name including many fraudulent transfers that I neither authorised, consented to, or had any knowledge of. "The fraudulent creation of loans, personal guarantees, cheques and bank transfers in my name, and using my forged signature, that I neither authorised, consented to, or had any knowledge of."
This is the first time Dr. Shetty, who has been in India for the last two months and more on a family issue, has issued a statement based on investigations he had commissioned. He had brought in a consultancy to conduct it after initial revelations came to light that NMC Health had not been fully transparent with its finances.
Dr. Shetty had stepped down as executive chairman after the then Board of Directors barred him from attending any meetings.
MIDEAST STOCKS-Major bourses in the Gulf rise on gains in oil prices - Agricultural Commodities - Reuters
MIDEAST STOCKS-Major bourses in the Gulf rise on gains in oil prices - Agricultural Commodities - Reuters:
Major stock markets in the Gulf climbed on Wednesday boosted by a jump in oil prices and as sentiment was helped by coronavirus-induced lockdowns easing in some parts of the world.
Oil prices gained on Wednesday as U.S. stockpiles rose less than expected and on expectations demand will improve as some European countries and some U.S. cities moved to ease restrictions.
Brent crude futures rose 4.1%, or 83 cents, to $21.29 a barrel at 0753 GMT, adding to a 2.3% gain on Tuesday.
Energy stocks added 0.5% boosted by gains in oil giant Saudi Aramco, up 0.8%.That along with gains in Al Rajhi Bank, up 1.3%, helped Saudi Arabia’s benchmark index rise 1%.
Investment firm Saudi Industrial Development increased 2% after its board proposed to use its statutory reserves to cover a part of accumulated losses.
In Dubai, the index gained 1%, with blue-chip developer Emaar Properties rising 1.9% and DAMAC Properties leaping 5.9%.
The Abu Dhabi index edged 0.2% higher as aquaculture firm International Holding rose 4.5% and Abu Dhabi Islamic Bank gained 0.6%.
Also helping sentiment, emirate’s media office in a tweet said the United Arab Emirates’ government of Abu Dhabi will allocate 15% of government procurement spending and annual contracts to micro-Small and Medium Enterprises from 2020 onwards to drive growth for small businesses.
However, the gains in Abu Dhabi’s index were limited by losses at energy firm Dana Gas, which declined 2.7% a day before it trades ex-dividend.
Qatar’s index gained 0.3%, supported by a 1.6% rise in petrochemical firm Industries Qatar and a 3% increase in telecoms firm Ooredoo. Ooredoo is scheduled to report its first-quarter results on Wednesday.
A decliner was Qatar Insurance, down 3.9%, after it posted a net loss of 185 million riyals ($50.82 million) in the first-quarter, from a profit of 266 million riyals a year earlier.
Major stock markets in the Gulf climbed on Wednesday boosted by a jump in oil prices and as sentiment was helped by coronavirus-induced lockdowns easing in some parts of the world.
Oil prices gained on Wednesday as U.S. stockpiles rose less than expected and on expectations demand will improve as some European countries and some U.S. cities moved to ease restrictions.
Brent crude futures rose 4.1%, or 83 cents, to $21.29 a barrel at 0753 GMT, adding to a 2.3% gain on Tuesday.
Energy stocks added 0.5% boosted by gains in oil giant Saudi Aramco, up 0.8%.That along with gains in Al Rajhi Bank, up 1.3%, helped Saudi Arabia’s benchmark index rise 1%.
Investment firm Saudi Industrial Development increased 2% after its board proposed to use its statutory reserves to cover a part of accumulated losses.
In Dubai, the index gained 1%, with blue-chip developer Emaar Properties rising 1.9% and DAMAC Properties leaping 5.9%.
The Abu Dhabi index edged 0.2% higher as aquaculture firm International Holding rose 4.5% and Abu Dhabi Islamic Bank gained 0.6%.
Also helping sentiment, emirate’s media office in a tweet said the United Arab Emirates’ government of Abu Dhabi will allocate 15% of government procurement spending and annual contracts to micro-Small and Medium Enterprises from 2020 onwards to drive growth for small businesses.
However, the gains in Abu Dhabi’s index were limited by losses at energy firm Dana Gas, which declined 2.7% a day before it trades ex-dividend.
Qatar’s index gained 0.3%, supported by a 1.6% rise in petrochemical firm Industries Qatar and a 3% increase in telecoms firm Ooredoo. Ooredoo is scheduled to report its first-quarter results on Wednesday.
A decliner was Qatar Insurance, down 3.9%, after it posted a net loss of 185 million riyals ($50.82 million) in the first-quarter, from a profit of 266 million riyals a year earlier.
Emirates Will Really Miss Those Big-Spending Business Travelers - Bloomberg
Emirates Will Really Miss Those Big-Spending Business Travelers - Bloomberg:
Until recently, Tarek Sultani Makhzoumi typically spent every other week of the year on the road, traveling from London to the U.S. or the United Arab Emirates. Like many road warriors, Makhzoumi, chief operating officer for health-care technology company MAP Sciences, became accustomed to the perks of constant corporate travel—everything from restaurant-class in-flight meals to lay-flat beds in business or first class—on business-focused carriers including Emirates.
But in the era of shrunken corporate budgets and a growing embrace of videoconferences, such extravagances risk becoming relics of a globe-trotting past. Moreover, many travelers are likely to remain reluctant to spend time in densely packed lines at airports, queue up at temperature-measuring checkpoints, or sit for hours in close proximity to strangers. “The process of getting into a plane is going to be longer,” Makhzoumi says. “And I have to look into my cash flow more closely.” He plans to travel only “when it’s absolutely worth it” and pack more meetings into each trip when he does.
Any pullback among the bankers, consultants, and tech specialists like Makhzoumi who’ve long filled the front cabins of commercial airliners is bad news for carriers that cater to them. Especially Emirates, which boasts the world’s biggest long-haul fleet.
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Airplanes operated by Emirates at Dubai International Airport on March 23. The airline has idled as much as 90% of its aircraft.
PHOTOGRAPHER: CHRISTOPHER PIKE/BLOOMBERG
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Until recently, Tarek Sultani Makhzoumi typically spent every other week of the year on the road, traveling from London to the U.S. or the United Arab Emirates. Like many road warriors, Makhzoumi, chief operating officer for health-care technology company MAP Sciences, became accustomed to the perks of constant corporate travel—everything from restaurant-class in-flight meals to lay-flat beds in business or first class—on business-focused carriers including Emirates.
But in the era of shrunken corporate budgets and a growing embrace of videoconferences, such extravagances risk becoming relics of a globe-trotting past. Moreover, many travelers are likely to remain reluctant to spend time in densely packed lines at airports, queue up at temperature-measuring checkpoints, or sit for hours in close proximity to strangers. “The process of getting into a plane is going to be longer,” Makhzoumi says. “And I have to look into my cash flow more closely.” He plans to travel only “when it’s absolutely worth it” and pack more meetings into each trip when he does.
Any pullback among the bankers, consultants, and tech specialists like Makhzoumi who’ve long filled the front cabins of commercial airliners is bad news for carriers that cater to them. Especially Emirates, which boasts the world’s biggest long-haul fleet.
#Saudi Prince MBS’s Vision 2030 Confronts Coronavirus, Oil Shock - Bloomberg
Saudi Prince MBS’s Vision 2030 Confronts Coronavirus, Oil Shock - Bloomberg:
The courtyard around the Grand Mosque in Mecca should be teeming with hundreds of thousands of pilgrims marking the start of Ramadan. Instead, it’s deserted: The coronavirus pandemic has hit the city where the Prophet Mohammed was born.
Saudi Arabia’s health minister appealed for social distancing during the month of abstention, a time of large gatherings at iftar, the daily meal at sunset to break the fast. On state-run Ekhbariya TV, doctors and nurses are hailed as heroes as they test foreign workers living in cramped quarters and hand out medical supplies in plastic bags with a rose sticking out of each one.
The country’s response to Covid-19 was to lock down quickly, winning praise from many Saudis. Tourism is at a standstill worldwide, hitting the finances of many nations. The economic impact of the pandemic, though, couldn’t have come at a more pivotal time for Saudi Arabia.
This was supposed to be Crown Prince Mohammed bin Salman’s year. For 2020 the plan was for Saudi Arabia to exhibit some of the first fruits of its great modernization project—from a record number of Muslim faithful visiting holy sites to new industries and entertainment that showed the society had become more open and could one day thrive without oil. Then in November, the 34-year-old prince, the kingdom’s de facto leader, would claim the spotlight on the world stage by hosting his fellow Group of 20 chiefs.
The courtyard around the Grand Mosque in Mecca should be teeming with hundreds of thousands of pilgrims marking the start of Ramadan. Instead, it’s deserted: The coronavirus pandemic has hit the city where the Prophet Mohammed was born.
Saudi Arabia’s health minister appealed for social distancing during the month of abstention, a time of large gatherings at iftar, the daily meal at sunset to break the fast. On state-run Ekhbariya TV, doctors and nurses are hailed as heroes as they test foreign workers living in cramped quarters and hand out medical supplies in plastic bags with a rose sticking out of each one.
The country’s response to Covid-19 was to lock down quickly, winning praise from many Saudis. Tourism is at a standstill worldwide, hitting the finances of many nations. The economic impact of the pandemic, though, couldn’t have come at a more pivotal time for Saudi Arabia.
This was supposed to be Crown Prince Mohammed bin Salman’s year. For 2020 the plan was for Saudi Arabia to exhibit some of the first fruits of its great modernization project—from a record number of Muslim faithful visiting holy sites to new industries and entertainment that showed the society had become more open and could one day thrive without oil. Then in November, the 34-year-old prince, the kingdom’s de facto leader, would claim the spotlight on the world stage by hosting his fellow Group of 20 chiefs.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar mid-session
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.
#Saudi foreign reserves fall at fastest in at least two decades - Reuters
Saudi foreign reserves fall at fastest in at least two decades - Reuters:
Saudi Arabia’s central bank foreign reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011, while the kingdom slipped into a $9 billion budget deficit in the first quarter as oil revenues collapsed.
Saudi Arabia, the world’s largest oil exporter, is facing an unprecedented challenge this year as oil prices have plumbed historic lows.
At the same time, measures to contain the spread of the new coronavirus are likely to curb the pace and the scale of sweeping economic reforms launched by Crown Price Mohammed bin Salman.
The Saudi Arabian Monetary Authority said on Tuesday its net foreign assets, which include securities such as U.S Treasuries and foreign deposits, fell in March to $464 billion, their lowest since 2011.
Saudi Arabia’s central bank foreign reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011, while the kingdom slipped into a $9 billion budget deficit in the first quarter as oil revenues collapsed.
Saudi Arabia, the world’s largest oil exporter, is facing an unprecedented challenge this year as oil prices have plumbed historic lows.
At the same time, measures to contain the spread of the new coronavirus are likely to curb the pace and the scale of sweeping economic reforms launched by Crown Price Mohammed bin Salman.
The Saudi Arabian Monetary Authority said on Tuesday its net foreign assets, which include securities such as U.S Treasuries and foreign deposits, fell in March to $464 billion, their lowest since 2011.
Russia expects up to 15% drop in oil output in 2020: Ifx - Reuters
Russia expects up to 15% drop in oil output in 2020: Ifx - Reuters:
Russian Energy Minister Alexander Novak on Wednesday said the country’s oil output could fall by up to 15% this year, Interfax news agency reported, representing its first annual decline since 2008.
Novak cited this month’s deal between the Organization of the Petroleum Exporting Countries (OPEC) and other large oil producers to cut their combined oil output by almost 10 million barrels per day (bpd) in May and June to combat slumping prices in the face of the coronavirus pandemic.
Russian oil output will decline to between 480 million and 500 million tonnes (9.6 million bpd to 10 million bpd), from 2019’s post-Soviet high of 560 million tonnes, Novak said.
Russian Energy Minister Alexander Novak on Wednesday said the country’s oil output could fall by up to 15% this year, Interfax news agency reported, representing its first annual decline since 2008.
Novak cited this month’s deal between the Organization of the Petroleum Exporting Countries (OPEC) and other large oil producers to cut their combined oil output by almost 10 million barrels per day (bpd) in May and June to combat slumping prices in the face of the coronavirus pandemic.
Russian oil output will decline to between 480 million and 500 million tonnes (9.6 million bpd to 10 million bpd), from 2019’s post-Soviet high of 560 million tonnes, Novak said.
Oil prices claw back losses as storage fills less rapidly than feared - Reuters
Oil prices claw back losses as storage fills less rapidly than feared - Reuters:
U.S. oil prices gained on Wednesday, trimming some of this week’s losses, after U.S. stockpiles rose less than expected and on expectations demand will improve as some European countries and U.S. cities moved to ease coronavirus lockdown.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 12.6%, or $1.56, at $13.91 at 0643 GMT, paring a 27% plunge over the first two days of this week.
Earlier in the session, WTI futures jumped by more than 15% to a session high of $14.40.
Brent crude LCOc1 futures rose 3.1%, or 64 cents, to $21.10 a barrel, adding to a 2.3% gain on Tuesday.
U.S. crude inventories rose by 10 million barrels to 510 million barrels in the week to April 24, data from industry group the American Petroleum Institute showed on Tuesday, compared with analysts’ expectations for a build of 10.6 million barrels.
U.S. oil prices gained on Wednesday, trimming some of this week’s losses, after U.S. stockpiles rose less than expected and on expectations demand will improve as some European countries and U.S. cities moved to ease coronavirus lockdown.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 12.6%, or $1.56, at $13.91 at 0643 GMT, paring a 27% plunge over the first two days of this week.
Earlier in the session, WTI futures jumped by more than 15% to a session high of $14.40.
Brent crude LCOc1 futures rose 3.1%, or 64 cents, to $21.10 a barrel, adding to a 2.3% gain on Tuesday.
U.S. crude inventories rose by 10 million barrels to 510 million barrels in the week to April 24, data from industry group the American Petroleum Institute showed on Tuesday, compared with analysts’ expectations for a build of 10.6 million barrels.