Bailed-out Bahrain may need more Gulf support as soon as this year - Reuters:
Bahrain may need more financial aid from fellow Gulf Arab states as soon as this year but its wealthier neighbours could themselves be hamstrung by low oil prices and the economic impact of the new coronavirus, bankers and analysts said.
Bahrain, rated junk by major credit rating agencies, in 2018 received a $10 billion aid package over five years from Saudi Arabia, Kuwait and the United Arab Emirates to help it avoid a credit crunch in a deal tied to fiscal reform.
But the U.S.-allied island state, a small oil producer, could need a larger amount than allotted for 2020 to fill bigger financing needs with petroleum prices at $20-$30 a barrel.
Bahrain announced in March an $11 billion stimulus package including plans to spend $570 million on private sector salaries to mitigate the coronavirus impact on the economy.
Monday 4 May 2020
#Saudi dollar bonds post losses as investors brace for pain to come - Reuters
Saudi dollar bonds post losses as investors brace for pain to come - Reuters:
Saudi government dollar bonds posted losses on Monday after the finance minister said Riyadh would have to take painful measures to deal with the impact of the coronavirus and Moody’s downgraded the country’s ratings outlook.
Moody’s cut Saudi Arabia’s outlook to negative from stable on Saturday, citing higher fiscal risks due to the crash in oil prices, and uncertainty about the government’s ability to offset oil revenue losses and stabilize its debt in the medium term.
By 0736 GMT on Monday, Saudi Arabia’s 35-year bonds due in 2055 had lost 1.4 cents to trade at 89.8 cents on the dollar, while its 40-year bonds due in 2060 shed 1.6 cents to trade at 98.2 cents on the dollar, Refinitiv data showed.
The country saw steep losses on its other bonds as well, while most other sovereign bonds in the Gulf region saw smaller losses in early trade and some even strengthened marginally.
Saudi government dollar bonds posted losses on Monday after the finance minister said Riyadh would have to take painful measures to deal with the impact of the coronavirus and Moody’s downgraded the country’s ratings outlook.
Moody’s cut Saudi Arabia’s outlook to negative from stable on Saturday, citing higher fiscal risks due to the crash in oil prices, and uncertainty about the government’s ability to offset oil revenue losses and stabilize its debt in the medium term.
By 0736 GMT on Monday, Saudi Arabia’s 35-year bonds due in 2055 had lost 1.4 cents to trade at 89.8 cents on the dollar, while its 40-year bonds due in 2060 shed 1.6 cents to trade at 98.2 cents on the dollar, Refinitiv data showed.
The country saw steep losses on its other bonds as well, while most other sovereign bonds in the Gulf region saw smaller losses in early trade and some even strengthened marginally.
Oil, Energy News: Oil Falls After Three-Day Rebound as Funds Shun Short-Term Crude - Bloomberg
Oil, Energy News: Latest Updates for May 4, 2020 - Bloomberg:
Oil fell after a three-day rebound as a number of funds shifted away from near-term contracts, fearing a repeat of the meltdown last month that saw prices plunge below zero.
Futures fell 8% toward $18 a barrel in New York as investors worried that a massive supply overhang while the coronavirus shatters demand will send the market tumbling again.
The manager of a $500 million oil exchange-traded fund in Hong Kong said its broker refused to let it increase holdings of crude futures. S&P Global Inc., which is behind the most closely followed commodity index, said it will roll West Texas Intermediate futures for July into August, while the United States Oil Fund LP said it will halve holdings in the July contract.
Last week, crude rallied almost 50% in three days on early signs of improving consumption and the start of output curbs from OPEC+ and other producers.
Oil fell after a three-day rebound as a number of funds shifted away from near-term contracts, fearing a repeat of the meltdown last month that saw prices plunge below zero.
Futures fell 8% toward $18 a barrel in New York as investors worried that a massive supply overhang while the coronavirus shatters demand will send the market tumbling again.
The manager of a $500 million oil exchange-traded fund in Hong Kong said its broker refused to let it increase holdings of crude futures. S&P Global Inc., which is behind the most closely followed commodity index, said it will roll West Texas Intermediate futures for July into August, while the United States Oil Fund LP said it will halve holdings in the July contract.
Last week, crude rallied almost 50% in three days on early signs of improving consumption and the start of output curbs from OPEC+ and other producers.
US law firms to pursue legal action against troubled NMC Health - Arabianbusiness
US law firms to pursue legal action against troubled NMC Health - Arabianbusiness:
Six US law firms have signalled their intent to pursue legal action on behalf of investors against troubled UAE-based NMC Health.
Bernstein Liebherd, Bronstein, Gewirtz & Grossman, Gainey, McKenna & Egleston, Pomerantz Law, Schall Law and Wolf Hadenstein Adler Freeman & Herz have all filed class action lawsuits on behalf of US investors amid allegations of securities fraud.
The Schall Law firm, which represents investors around the world and specialises in securities class action lawsuits and shareholder rights litigation, is encouraging investors with losses of more than $100,000, who purchased the company’s securities between March 13, 2016 and March 10, 2020, to contact the firm before May 11.
A release by the firm alleges that NMC made false and misleading statements to the market; failed to maintain effective internal controls; understated its debts while simultaneously overstating its cash-on-hand; and NMC Health's principal shareholders did not accurately report their interest in the company, which did not review the ownership stakes of these principal shareholders, and therefore could not enforce its Relationship Agreement with them.
Six US law firms have signalled their intent to pursue legal action on behalf of investors against troubled UAE-based NMC Health.
Bernstein Liebherd, Bronstein, Gewirtz & Grossman, Gainey, McKenna & Egleston, Pomerantz Law, Schall Law and Wolf Hadenstein Adler Freeman & Herz have all filed class action lawsuits on behalf of US investors amid allegations of securities fraud.
The Schall Law firm, which represents investors around the world and specialises in securities class action lawsuits and shareholder rights litigation, is encouraging investors with losses of more than $100,000, who purchased the company’s securities between March 13, 2016 and March 10, 2020, to contact the firm before May 11.
A release by the firm alleges that NMC made false and misleading statements to the market; failed to maintain effective internal controls; understated its debts while simultaneously overstating its cash-on-hand; and NMC Health's principal shareholders did not accurately report their interest in the company, which did not review the ownership stakes of these principal shareholders, and therefore could not enforce its Relationship Agreement with them.
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.
SABIC CEO says impact of coronavirus will be more significant in second quarter - Reuters
SABIC CEO says impact of coronavirus will be more significant in second quarter - Reuters:
Saudi Basic Industries Corp (SABIC) (2010.SE) expects a more significant impact on its business from the coronavirus pandemic in the second quarter, its chief executive said on Monday after the company reported a loss in the first quarter.
Yousef al-Benyan told an earnings briefing that the company expects current circumstances will last until the end of 2020, as the coronavirus has hurt global economic growth and dampened energy prices, leading to a decline in petrochemical prices.
SABIC, the world’s fourth-biggest petrochemicals firm, reported a net loss in the first quarter of 950 million riyals ($252.89 million), citing impairment losses on assets and lower demand for its products in the wake of the coronavirus pandemic.
Saudi Basic Industries Corp (SABIC) (2010.SE) expects a more significant impact on its business from the coronavirus pandemic in the second quarter, its chief executive said on Monday after the company reported a loss in the first quarter.
Yousef al-Benyan told an earnings briefing that the company expects current circumstances will last until the end of 2020, as the coronavirus has hurt global economic growth and dampened energy prices, leading to a decline in petrochemical prices.
SABIC, the world’s fourth-biggest petrochemicals firm, reported a net loss in the first quarter of 950 million riyals ($252.89 million), citing impairment losses on assets and lower demand for its products in the wake of the coronavirus pandemic.
UK watchdog investigates EY audit of NMC Health - Reuters
UK watchdog investigates EY audit of NMC Health - Reuters:
Britain’s accounting regulator said it has opened an investigation into EY’s audit of NMC Health, the troubled hospital operator that was placed into administration in April.
Shares in NMC were suspended on the London Stock Exchange after the company revised its debt position to $6.6 billion, well above earlier estimates.
“On 15 April 2020 the Financial Reporting Council opened an investigation into the audit by Ernst and Young LLP of the financial statements of NMC Health for the year ended 31 December 2018,” the FRC said in a statement on Monday.
EY said it has been notified of the FRC’s intention to conduct an investigation into the audit of NMC Health plc.
Britain’s accounting regulator said it has opened an investigation into EY’s audit of NMC Health, the troubled hospital operator that was placed into administration in April.
Shares in NMC were suspended on the London Stock Exchange after the company revised its debt position to $6.6 billion, well above earlier estimates.
“On 15 April 2020 the Financial Reporting Council opened an investigation into the audit by Ernst and Young LLP of the financial statements of NMC Health for the year ended 31 December 2018,” the FRC said in a statement on Monday.
EY said it has been notified of the FRC’s intention to conduct an investigation into the audit of NMC Health plc.
Oil prices fall on demand concerns, U.S.-China trade tension - Reuters
Oil prices fall on demand concerns, U.S.-China trade tension - Reuters:
Oil prices fell on Monday, paring last week’s gains, on worries a global oil glut may persist amid slumping demand and U.S.-China trade tensions that could restrict an economic recovery even as coronavirus pandemic lockdowns start to ease.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell as low as $18.10 a barrel earlier in the session and were down $1.01, or 5.1%, at $18.77 at 0658 GMT. The benchmark contract rose 17% last week.
Brent crude LCOc1 futures were down 10 cents, or 0.4%, at $26.34, after touching a low of $25.50. Brent rose about 23% last week following three consecutive weeks of losses.
“As optimism fades around global growth prospects, oil is giving up (last week’s) gains, aided by a strengthening U.S. dollar,” said Michael McCarthy, chief market strategist at CMC Markets.
Oil prices fell on Monday, paring last week’s gains, on worries a global oil glut may persist amid slumping demand and U.S.-China trade tensions that could restrict an economic recovery even as coronavirus pandemic lockdowns start to ease.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell as low as $18.10 a barrel earlier in the session and were down $1.01, or 5.1%, at $18.77 at 0658 GMT. The benchmark contract rose 17% last week.
Brent crude LCOc1 futures were down 10 cents, or 0.4%, at $26.34, after touching a low of $25.50. Brent rose about 23% last week following three consecutive weeks of losses.
“As optimism fades around global growth prospects, oil is giving up (last week’s) gains, aided by a strengthening U.S. dollar,” said Michael McCarthy, chief market strategist at CMC Markets.
MIDEAST STOCKS- #Saudi shares drop, property stocks weigh on #Dubai - Reuters
MIDEAST STOCKS-Saudi shares drop, property stocks weigh on Dubai - Reuters:
Banks dragged Saudi Arabian shares lower on Monday and markets in the United Arab Emirates extended losses due to a fall in financials and real estate stocks.
Saudi Arabia’s benchmark index dropped 0.9%, a day after it saw its biggest intraday fall in nearly two months, driven down by a 0.7% fall in oil giant Saudi Aramco and a 2.7% drop in Samba Financial Group.
On Monday, Credit Suisse cut Aramco’s price target to 26.7 riyals ($7.11) from 28 riyals on lower crude oil production.
Saudi Basic Industries fell 1% after reporting a net loss in the first quarter, which it blamed on impairment losses on assets and a lower demand for its products in the wake of the COVID-19 pandemic.
Banks dragged Saudi Arabian shares lower on Monday and markets in the United Arab Emirates extended losses due to a fall in financials and real estate stocks.
Saudi Arabia’s benchmark index dropped 0.9%, a day after it saw its biggest intraday fall in nearly two months, driven down by a 0.7% fall in oil giant Saudi Aramco and a 2.7% drop in Samba Financial Group.
On Monday, Credit Suisse cut Aramco’s price target to 26.7 riyals ($7.11) from 28 riyals on lower crude oil production.
Saudi Basic Industries fell 1% after reporting a net loss in the first quarter, which it blamed on impairment losses on assets and a lower demand for its products in the wake of the COVID-19 pandemic.
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