Oil prices surge as coronavirus lockdowns ease - Reuters:
Oil prices soared on Tuesday, as some European and Asian countries along with several U.S. states began to ease coronavirus lockdown measures.
The rally extended Brent crude’s gains to six straight days, while U.S. benchmark West Texas Intermediate has now rallied for five consecutive sessions. Fuel demand worldwide was down roughly 30% in April, but demand is rising modestly due to efforts to lift travel restrictions.
International benchmark Brent crude LCOc1 rose $3.77, or 13.9%, to settle at $30.97 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures gained $4.17, or 20.5%, to settle at $24.56 a barrel.
Italy, Spain, Nigeria and India, as well as some U.S. states including Ohio, began allowing some people to go back to work and opened up construction sites, parks and libraries. Health experts, however, have warned that such moves could cause coronavirus infections to rise again.
Tuesday 5 May 2020
Cox: Brace for America’s version of #Saudi Aramco – Breakingviews
https://www.breakingviews.com/columns/cox-brace-for-americas-version-of-saudi-aramco/
Calamity creates opportunity. That has always been true when it comes to corporate consolidation. Recall how a series of mega-mergers and acquisitions transformed the banking industry after the 2008 financial panic. Wells Fargo snagged Wachovia. Bank of America scooped up Merrill Lynch. Lloyds TSB bought HBOS. BNP Paribas grabbed Fortis. JPMorgan got Washington Mutual and Bear Stearns. And so on. Before the coronavirus has taken its full physical and economic toll, expect more of the same.
Strong banks ate the weak, and they were chivvied along by federal and state governments and regulators worried about the sustainability of their financial systems. Governments will play a central role now, too. Even before the Great Lockdown, leaders were calling for relaxation of antitrust restrictions as a response to the emergence of stronger Chinese competitors. France and Germany railed against the European Commission blocking the merger between the rail businesses of Siemens and Alstom, complaining it would give Chinese giant CRRC free reign. President Donald Trump has tried to encourage telecom mergers to combat Huawei. These concerns have only become more pronounced as China appears to have rebounded from the virus more rapidly than the rest of the world.
The political logic of protecting domestic companies through strategic alliances will apply after the pandemic and across a broad range of industries. Governments will come away from Covid-19 with new priorities, ranging from safer, more domestic, manufacturing and supply chains to less risky balance sheets. If history rhymes, then pre-virus views about competition may take a back seat. As Edward Chancellor argued, this will lead to an unhealthy concentration of power.
Emirates' Tim Clark: Coronavirus is a black swan event for the airline industry - The National
Emirates' Tim Clark: Coronavirus is a black swan event for the airline industry - The National:
More airlines could have collapsed or consolidated globally without government intervention amid the Covid-19 pandemic and the aviation industry will see a decline in passenger traffic as well as the number of aircraft used by carriers once the crisis subsides, Emirates president Tim Clark said.
“It might have happened had there not been massive state intervention over the last months,” Mr Clark said in an interview with The National. “You would have seen companies that would have ordinarily sought to merge, amalgamate with others to relieve themselves jointly of the financial predicament they face.
“That would have happened, but then of course things started to accelerate, and the financial state of the business became exponentially bad. The first port of call was not to each other but to either to the shareholders and or to the states to intervene and that is clearly what has happened.”
Airlines across the globe are facing severe liquidity problems after the pandemic triggered country movement restriction measures and crushed
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| Tim Clark joined Emirates in 1985 as head of planning and rose up the ranks to become company president in 2003. Reuters |
More airlines could have collapsed or consolidated globally without government intervention amid the Covid-19 pandemic and the aviation industry will see a decline in passenger traffic as well as the number of aircraft used by carriers once the crisis subsides, Emirates president Tim Clark said.
“It might have happened had there not been massive state intervention over the last months,” Mr Clark said in an interview with The National. “You would have seen companies that would have ordinarily sought to merge, amalgamate with others to relieve themselves jointly of the financial predicament they face.
“That would have happened, but then of course things started to accelerate, and the financial state of the business became exponentially bad. The first port of call was not to each other but to either to the shareholders and or to the states to intervene and that is clearly what has happened.”
Airlines across the globe are facing severe liquidity problems after the pandemic triggered country movement restriction measures and crushed
Shaken markets: Foreign investors go low on #UAE stocks with record selloffs | Analysis – Gulf News
Shaken markets: Foreign investors go low on UAE stocks with record selloffs | Analysis – Gulf News:
Foreign investors remain squeamish about taking an exposure in UAE stocks, with March seeing a record shortfall in fund inflow.
“Even after being granted the MSCI emerging market status in 2013, foreign holding in DFM-listed companies remain much below desired levels,” said Vijay Valecha, Chief Investment Officer at Century Financial.
Of the 55 companies where foreign investment is permitted, foreign ownership is now at an average 10.32 per cent. Even marquee companies like Air Arabia, Commercial Bank of Dubai and Dubai Islamic Bank have foreign investments in the range of 10-20 per cent only, Valecha said.
There was significantly higher foreign selling on DFM during February, March and April, with March seeing a record shortfall in investments, equal to about Dh764 million. During April, the deficit was Dh206 million.
Foreign investors remain squeamish about taking an exposure in UAE stocks, with March seeing a record shortfall in fund inflow.
“Even after being granted the MSCI emerging market status in 2013, foreign holding in DFM-listed companies remain much below desired levels,” said Vijay Valecha, Chief Investment Officer at Century Financial.
Of the 55 companies where foreign investment is permitted, foreign ownership is now at an average 10.32 per cent. Even marquee companies like Air Arabia, Commercial Bank of Dubai and Dubai Islamic Bank have foreign investments in the range of 10-20 per cent only, Valecha said.
There was significantly higher foreign selling on DFM during February, March and April, with March seeing a record shortfall in investments, equal to about Dh764 million. During April, the deficit was Dh206 million.
#Qatar Wealth Fund Said to Seek $7.6 Billion Loan Backed by Stock - Bloomberg
Qatar Wealth Fund Said to Seek $7.6 Billion Loan Backed by Stock - Bloomberg:
Qatar’s sovereign fund is borrowing around 7 billion euros ($7.6 billion) against its stock holdings, as the top liquefied natural gas exporter seeks to bolster its cash reserves at a time of plunging energy prices, people with knowledge of the matter said.
The Qatar Investment Authority is in discussions with banks including JPMorgan Chase & Co. and UBS Group AG for a margin loan backed by some of its European equity investments, according to the people, who asked not to be identified because the information is private. The deal could rank as one of the biggest-ever margin loans in the region.
The fund manages about $295 billion of assets and ranks as the eleventh largest globally, according to the Sovereign Wealth Fund Institute. It has holdings in some of Europe’s biggest companies including London Stock Exchange Group Plc, Volkswagen AG and Glencore Plc, data compiled by Bloomberg show.
Qatar, one of the world’s richest nations per-capita income, raised $10 billion in an April bond sale that attracted around $45 billion of orders. The Gulf monarchy has been impacted by plunging oil prices because most gas prices are closely tied to the cost of crude, which dropped more than 50% in March.
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A boat moored in front of the skyline of Doha, Qatar.
Photographer: GIUSEPPE CACACE/AFP via Getty Images |
Qatar’s sovereign fund is borrowing around 7 billion euros ($7.6 billion) against its stock holdings, as the top liquefied natural gas exporter seeks to bolster its cash reserves at a time of plunging energy prices, people with knowledge of the matter said.
The Qatar Investment Authority is in discussions with banks including JPMorgan Chase & Co. and UBS Group AG for a margin loan backed by some of its European equity investments, according to the people, who asked not to be identified because the information is private. The deal could rank as one of the biggest-ever margin loans in the region.
The fund manages about $295 billion of assets and ranks as the eleventh largest globally, according to the Sovereign Wealth Fund Institute. It has holdings in some of Europe’s biggest companies including London Stock Exchange Group Plc, Volkswagen AG and Glencore Plc, data compiled by Bloomberg show.
Qatar, one of the world’s richest nations per-capita income, raised $10 billion in an April bond sale that attracted around $45 billion of orders. The Gulf monarchy has been impacted by plunging oil prices because most gas prices are closely tied to the cost of crude, which dropped more than 50% in March.
Oil Set for Longest Rally in Nine Months Amid Falling Output - Bloomberg
Oil Set for Longest Rally in Nine Months Amid Falling Output - Bloomberg:
Oil is headed for the longest run of daily gains in more than nine months as production cuts start to whittle down a supply glut and more economies ease their coronavirus lockdowns.
Futures in New York rose for a fifth day, gaining more than 20%, while Brent topped $30 dollars a barrel for the first time since April 15. As OPEC+ producers begin to cut output as part of an historic supply-curb agreement, U.S. explorers are shutting in production in the country’s biggest shale fields. Diamondback Energy Inc., Parsley Energy Inc. and Centennial Resource Development Inc. on Monday became the latest Permian Basin producer to say they were dialing back.
“The primary issue is that there is less fear of a storage crisis, and there is also an anticipation that production is going to start to fall pretty quickly,” said Bill O’Grady, chief market strategist at Confluence Investment Management LLC.
The American crude benchmark has more than doubled from an intraday low near $10 a barrel last week. The discount on crude for June delivery relative to July, a structure known as contango, tightened to its narrowest in more than a month, indicating that concerns about oversupply may be easing.
Oil is headed for the longest run of daily gains in more than nine months as production cuts start to whittle down a supply glut and more economies ease their coronavirus lockdowns.
Futures in New York rose for a fifth day, gaining more than 20%, while Brent topped $30 dollars a barrel for the first time since April 15. As OPEC+ producers begin to cut output as part of an historic supply-curb agreement, U.S. explorers are shutting in production in the country’s biggest shale fields. Diamondback Energy Inc., Parsley Energy Inc. and Centennial Resource Development Inc. on Monday became the latest Permian Basin producer to say they were dialing back.
“The primary issue is that there is less fear of a storage crisis, and there is also an anticipation that production is going to start to fall pretty quickly,” said Bill O’Grady, chief market strategist at Confluence Investment Management LLC.
The American crude benchmark has more than doubled from an intraday low near $10 a barrel last week. The discount on crude for June delivery relative to July, a structure known as contango, tightened to its narrowest in more than a month, indicating that concerns about oversupply may be easing.
Behind the Numbers, Supply-Chain Chaos Masks Extent of Gulf Pain - Bloomberg
Behind the Numbers, Supply-Chain Chaos Masks Extent of Gulf Pain - Bloomberg:
Supply disruptions that came with the global coronavirus pandemic are obscuring the distress among businesses in the two biggest Gulf Arab economies.
Longer delivery times, usually a sign of stronger demand, pushed up the latest readings of operating conditions in the non-oil private sector economies of Saudi Arabia and the United Arab Emirates, according to IHS Markit. Its Purchasing Managers’ Index for Saudi Arabia actually improved slightly in April, while a similar gauge for the U.A.E. declined less than in March. Both remain below the threshold of 50 that separates growth from contraction.
But the signs of improvement could be deceptive. It was a supply shock that caused longer delivery times, as delays in shipping and shortages of products followed efforts to contain the virus, according to IHS Markit.
“Longer suppliers’ delivery times are typically seen as an advance indicator of rising demand for raw materials and therefore have a positive influence on the PMI index,” IHS Markit said in its report on Saudi Arabia.
Supply disruptions that came with the global coronavirus pandemic are obscuring the distress among businesses in the two biggest Gulf Arab economies.
Longer delivery times, usually a sign of stronger demand, pushed up the latest readings of operating conditions in the non-oil private sector economies of Saudi Arabia and the United Arab Emirates, according to IHS Markit. Its Purchasing Managers’ Index for Saudi Arabia actually improved slightly in April, while a similar gauge for the U.A.E. declined less than in March. Both remain below the threshold of 50 that separates growth from contraction.
But the signs of improvement could be deceptive. It was a supply shock that caused longer delivery times, as delays in shipping and shortages of products followed efforts to contain the virus, according to IHS Markit.
“Longer suppliers’ delivery times are typically seen as an advance indicator of rising demand for raw materials and therefore have a positive influence on the PMI index,” IHS Markit said in its report on Saudi Arabia.
UPDATE 1- #Qatar National Bank raises $1 bln in five-year bonds - sources - Reuters
UPDATE 1-Qatar National Bank raises $1 bln in five-year bonds - sources - Reuters:
Qatar National Bank, the Gulf’s biggest lender, sold on Tuesday $1 billion in five-year bonds, two sources said, the first non-sovereign public issuance in the international debt markets from the Gulf since February.
The bank is offering investors an interest rate equivalent to 225 basis points (bps) over mid-swaps, 35 bps tighter than where it began marketing the notes earlier on Tuesday. It received more than $3.75 billion in orders for the debt sale.
QNB hired Barclays, Credit Agricole, ING, Mizuho, QNB Capital and Standard Chartered to arrange the deal.
The sale follows a combined $24 billion in bonds raised by Qatar, Abu Dhabi and Saudi Arabia last month, which bankers said would pave the way for regional banks to return to the public debt markets.
Qatar National Bank, the Gulf’s biggest lender, sold on Tuesday $1 billion in five-year bonds, two sources said, the first non-sovereign public issuance in the international debt markets from the Gulf since February.
The bank is offering investors an interest rate equivalent to 225 basis points (bps) over mid-swaps, 35 bps tighter than where it began marketing the notes earlier on Tuesday. It received more than $3.75 billion in orders for the debt sale.
QNB hired Barclays, Credit Agricole, ING, Mizuho, QNB Capital and Standard Chartered to arrange the deal.
The sale follows a combined $24 billion in bonds raised by Qatar, Abu Dhabi and Saudi Arabia last month, which bankers said would pave the way for regional banks to return to the public debt markets.
#UAE-based Air Arabia cuts 57 jobs due to coronavirus crisis - Reuters
UAE-based Air Arabia cuts 57 jobs due to coronavirus crisis - Reuters:
Air Arabia, the only listed carrier in the United Arab Emirates, has laid off 57 employees due to travel disruptions caused by the coronavirus pandemic, a spokesman said on Tuesday.
The Sharjah-based airline, which has about 2,000 employees, has like other UAE carriers suspended scheduled operations since March. It is not clear when normal services will resume.
“It is unfortunate that we had to take the decision to lay off a small number of our staff this week. This is the first time in our history that we were forced to do so taking into consideration the current market realities,” the spokesman said.
The airline did not say which departments had been affected.
Air Arabia, the only listed carrier in the United Arab Emirates, has laid off 57 employees due to travel disruptions caused by the coronavirus pandemic, a spokesman said on Tuesday.
The Sharjah-based airline, which has about 2,000 employees, has like other UAE carriers suspended scheduled operations since March. It is not clear when normal services will resume.
“It is unfortunate that we had to take the decision to lay off a small number of our staff this week. This is the first time in our history that we were forced to do so taking into consideration the current market realities,” the spokesman said.
The airline did not say which departments had been affected.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar close
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.
EU to beef up scrutiny of money-laundering risks, adds Panama to list - Reuters
EU to beef up scrutiny of money-laundering risks, adds Panama to list - Reuters:
The European Commission aims to intensify its scrutiny of states posing money-laundering risks, and is looking into creating a new body to help police financial crime and monitor banks more strictly, draft documents seen by Reuters show.
One document, expected to be published on Thursday, adds Panama and other countries to an existing blacklist but spares Saudi Arabia and U.S. territories that had been put on an earlier list before being shelved in the face of objections.
A second document, also due on Thursday, suggests giving the European Union more powers to tackle financial malfeasance within the bloc after a spate of scandals at large banks dented the EU’s reputation.
The proposal, still subject to changes, says the EU could set up by 2023 a common supervisory body in charge of carrying out inspections at banks and possibly empowered to impose sanctions and identify suspicious payments.
The European Commission aims to intensify its scrutiny of states posing money-laundering risks, and is looking into creating a new body to help police financial crime and monitor banks more strictly, draft documents seen by Reuters show.
One document, expected to be published on Thursday, adds Panama and other countries to an existing blacklist but spares Saudi Arabia and U.S. territories that had been put on an earlier list before being shelved in the face of objections.
A second document, also due on Thursday, suggests giving the European Union more powers to tackle financial malfeasance within the bloc after a spate of scandals at large banks dented the EU’s reputation.
The proposal, still subject to changes, says the EU could set up by 2023 a common supervisory body in charge of carrying out inspections at banks and possibly empowered to impose sanctions and identify suspicious payments.
Oil prices surge on demand hopes as lockdowns ease - Reuters
Oil prices surge on demand hopes as lockdowns ease - Reuters:
Oil prices soared higher on Tuesday on hopes for a recovery in vehicle traffic and fuel demand as some European and Asian countries along with several U.S. states began to ease coronavirus lockdown measures.
International benchmark Brent crude LCOc1 rose $2.77, or 10.2%, to $29.97 a barrel by 11:30 a.m. EDT (1530 GMT).
U.S. West Texas Intermediate (WTI) crude CLc1 futures traded $3.47, or 17%, higher at $23.86 a barrel.
Brent has closed higher the previous five sessions, while WTI has closed higher for the last four.
Oil prices soared higher on Tuesday on hopes for a recovery in vehicle traffic and fuel demand as some European and Asian countries along with several U.S. states began to ease coronavirus lockdown measures.
International benchmark Brent crude LCOc1 rose $2.77, or 10.2%, to $29.97 a barrel by 11:30 a.m. EDT (1530 GMT).
U.S. West Texas Intermediate (WTI) crude CLc1 futures traded $3.47, or 17%, higher at $23.86 a barrel.
Brent has closed higher the previous five sessions, while WTI has closed higher for the last four.
#Saudi foreign reserves slide as epidemic, oil volume war take toll: Kemp - Reuters
Saudi foreign reserves slide as epidemic, oil volume war take toll: Kemp - Reuters:
Saudi Arabia’s decision to wage an oil volume war with Russia, which proved badly timed as it coincided with coronavirus lockdowns and tumbling crude demand, exacted a heavy toll on the kingdom’s finances.
Total foreign reserve assets fell by almost $24 billion in March, the largest one-month decline for at least 20 years, according to the latest official data from the kingdom’s central bank, the Saudi Arabian Monetary Authority (SAMA).
Reserve assets had fallen from a peak of $746 billion in August 2014 but until March had been steady at around $500 billion since the middle of 2017 (“Monthly bulletin”, Saudi Arabian Monetary Authority, April 28).
However, total reserves tumbled to just $473 billion at the end of March, the lowest for nine years, in a sign of the strain the volume war and the coronavirus epidemic imposed on the kingdom’s balance of payments.
Saudi Arabia’s decision to wage an oil volume war with Russia, which proved badly timed as it coincided with coronavirus lockdowns and tumbling crude demand, exacted a heavy toll on the kingdom’s finances.
Total foreign reserve assets fell by almost $24 billion in March, the largest one-month decline for at least 20 years, according to the latest official data from the kingdom’s central bank, the Saudi Arabian Monetary Authority (SAMA).
Reserve assets had fallen from a peak of $746 billion in August 2014 but until March had been steady at around $500 billion since the middle of 2017 (“Monthly bulletin”, Saudi Arabian Monetary Authority, April 28).
However, total reserves tumbled to just $473 billion at the end of March, the lowest for nine years, in a sign of the strain the volume war and the coronavirus epidemic imposed on the kingdom’s balance of payments.
#UAE banks will be able to 'manage' COVID-19 economic shock - Central Bank | ZAWYA MENA Edition
UAE banks will be able to 'manage' COVID-19 economic shock - Central Bank | ZAWYA MENA Edition:
The coronavirus that continues to rage around the world and drags the global economy to a near standstill will test the strength of the UAE’s banking sector, but financial institutions will be able to “manage” the economic shock, a top official said.
The UAE Central Bank has just released its annual report for 2019, highlighting the “remarkable” performance of banks in the country despite last year’s turbulent external environment. The regulatory body said it is still too early to gauge the extent of the impact of the coronavirus on the local economy, but it stressed it is committed to intervene and help affected businesses.
“The outlook for 2020 is uncertain, marked by the global impact of the COVID-19 pandemic… The strength and resilience of the banking sector will be tested,” Central Bank governor Abdulhamid Saeed said in the report.
He, however, pointed out that in the past year, UAE banks remained sound with strong levels of capital and liquidity. The sector also witnessed major progress in the banking consolidation space and enjoyed a strong operating environment.
The coronavirus that continues to rage around the world and drags the global economy to a near standstill will test the strength of the UAE’s banking sector, but financial institutions will be able to “manage” the economic shock, a top official said.
The UAE Central Bank has just released its annual report for 2019, highlighting the “remarkable” performance of banks in the country despite last year’s turbulent external environment. The regulatory body said it is still too early to gauge the extent of the impact of the coronavirus on the local economy, but it stressed it is committed to intervene and help affected businesses.
“The outlook for 2020 is uncertain, marked by the global impact of the COVID-19 pandemic… The strength and resilience of the banking sector will be tested,” Central Bank governor Abdulhamid Saeed said in the report.
He, however, pointed out that in the past year, UAE banks remained sound with strong levels of capital and liquidity. The sector also witnessed major progress in the banking consolidation space and enjoyed a strong operating environment.
#UAE News: Economy Crashes Along With #SaudiArabia, Egypt - Bloomberg
UAE News: Economy Crashes Along With Saudi Arabia, Egypt - Bloomberg:
Business conditions in the Arab world’s three largest economies deteriorated further last month amid shutdowns from the coronavirus and a plunge in commodity prices.
Non-oil private sector activity collapsed at an unprecedented pace in Egypt and suffered another record setback in the United Arab Emirates, according to Purchasing Managers’ Index surveys compiled by IHS Markit. Business conditions in Saudi Arabia also remained below the threshold of 50 that separates growth from contraction.
Egyptian “businesses lucky enough to remain open scaled back activity on a massive scale, as many highlighted sharp falls in domestic sales and foreign demand,” said David Owen, economist at IHS Markit. “Firms forced to close unsurprisingly recorded an even steeper decline in output.”
Business conditions in the Arab world’s three largest economies deteriorated further last month amid shutdowns from the coronavirus and a plunge in commodity prices.
Non-oil private sector activity collapsed at an unprecedented pace in Egypt and suffered another record setback in the United Arab Emirates, according to Purchasing Managers’ Index surveys compiled by IHS Markit. Business conditions in Saudi Arabia also remained below the threshold of 50 that separates growth from contraction.
Egyptian “businesses lucky enough to remain open scaled back activity on a massive scale, as many highlighted sharp falls in domestic sales and foreign demand,” said David Owen, economist at IHS Markit. “Firms forced to close unsurprisingly recorded an even steeper decline in output.”
- The Egypt PMI slumped to 29.7, down from 44.2 in March and the lowest since the series began in April 2011, according to IHS Markit; activity, new business and exports all dropped at record rates
- Saudi Arabia’s PMI was at 44.4, compared with 42.4 in March; new orders and employment levels continued to decline
- IHS Markit’s gauge for the U.A.E. dropped for the sixth month running to a record low 44.1 in April; export demand collapsed amid global lockdown
We'd be better off closed, say #Dubai restaurants - Arabianbusiness
We'd be better off closed, say Dubai restaurants - Arabianbusiness:
Restaurants in Dubai are losing more money by being open than by remaining closed, according to a letter signed by over 100 industry leaders including Marriott International, Tim Hortons, Sunset Hospitality and Solutions Leisure - and which account for over 50% of people working in the F&B sector and 10% of the city’s population.
In the letter seen by Arabian Business, the restaurants claim to be facing severe negative cashflow due to rental obligations and employee liabilities amid strict Covid-19 restrictions which limit their seating capacity to 30 percent in line with social distancing measures.
"The F&B sector was hit first and hit hardest due to social distancing. Fear of the virus and the long-term need for physical distancing will mean that most restaurant and café businesses will not have sufficient income to cover monthly expenses to reopen,” reads the letter addressing Secretary General of the Executive Council of Dubai, Abdulla Mohammed Al Basti.
Restaurants in Dubai are losing more money by being open than by remaining closed, according to a letter signed by over 100 industry leaders including Marriott International, Tim Hortons, Sunset Hospitality and Solutions Leisure - and which account for over 50% of people working in the F&B sector and 10% of the city’s population.
In the letter seen by Arabian Business, the restaurants claim to be facing severe negative cashflow due to rental obligations and employee liabilities amid strict Covid-19 restrictions which limit their seating capacity to 30 percent in line with social distancing measures.
"The F&B sector was hit first and hit hardest due to social distancing. Fear of the virus and the long-term need for physical distancing will mean that most restaurant and café businesses will not have sufficient income to cover monthly expenses to reopen,” reads the letter addressing Secretary General of the Executive Council of Dubai, Abdulla Mohammed Al Basti.
Emir of #AbuDhabi fights for £32m ‘siphoned’ from London property empire | News | The Times
Emir of Abu Dhabi fights for £32m ‘siphoned’ from London property empire | News | The Times:
The Abu Dhabi royal family has accused its former property managers in London of siphoning tens of millions of pounds in fraudulent payments.
A High Court case has been brought by Berkeley Square Holdings, which owns £5 billion of properties in the capital. It is ultimately controlled by Sheikh Khalifa bin Zayed Al Nahyan, emir of Abu Dhabi and president of the United Arab Emirates, who was revealed by the 2016 Panama Papers to have built one of the biggest offshore property empires in Britain.
His assets include about 140 properties in exclusive parts of London, including the Berkeley Square estate in Mayfair, where tenants include Hermès, Alice Temperley and Annabel’s nightclub.
The case will feed speculation over the health of the ruler after defence lawyers stated it was an “open secret” that Sheikh Khalifa, 71, was incapacitated by a stroke in 2014, with others in the Nahyan family running the country.
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The Queen meeting Sheikh Khalifa in 2010.His health has since deteriorated
JOHN STILWELL/GETTY IMAGES
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The Abu Dhabi royal family has accused its former property managers in London of siphoning tens of millions of pounds in fraudulent payments.
A High Court case has been brought by Berkeley Square Holdings, which owns £5 billion of properties in the capital. It is ultimately controlled by Sheikh Khalifa bin Zayed Al Nahyan, emir of Abu Dhabi and president of the United Arab Emirates, who was revealed by the 2016 Panama Papers to have built one of the biggest offshore property empires in Britain.
His assets include about 140 properties in exclusive parts of London, including the Berkeley Square estate in Mayfair, where tenants include Hermès, Alice Temperley and Annabel’s nightclub.
The case will feed speculation over the health of the ruler after defence lawyers stated it was an “open secret” that Sheikh Khalifa, 71, was incapacitated by a stroke in 2014, with others in the Nahyan family running the country.
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.
#UAE non-oil private sector hits second consecutive record low: PMI - Reuters
UAE non-oil private sector hits second consecutive record low: PMI - Reuters:
The United Arab Emirates’ (UAE) non-oil private sector shrank at a record rate for the second month running in April, as lockdown measures to fight the coronavirus pandemic piled pressure on an already sluggish economy.
The seasonally adjusted IHS Markit UAE Purchasing Managers’ Index (PMI), which covers manufacturing and services, fell to 44.1 in April from 45.2 in March. The 50.0 mark separates expansion from contraction.
The output and new export orders sub-indices fell sharply, both falling to record lows since the survey began in August 2009. Output tumbled to 39.9 in April from 47.2 in March.
“Shop closures and restrictions in domestic and international travel had huge repercussions on new business, which fell at an unprecedented pace after also declining sharply during March,” said David Owen, economist at survey compiler IHS Markit.
The United Arab Emirates’ (UAE) non-oil private sector shrank at a record rate for the second month running in April, as lockdown measures to fight the coronavirus pandemic piled pressure on an already sluggish economy.
The seasonally adjusted IHS Markit UAE Purchasing Managers’ Index (PMI), which covers manufacturing and services, fell to 44.1 in April from 45.2 in March. The 50.0 mark separates expansion from contraction.
The output and new export orders sub-indices fell sharply, both falling to record lows since the survey began in August 2009. Output tumbled to 39.9 in April from 47.2 in March.
“Shop closures and restrictions in domestic and international travel had huge repercussions on new business, which fell at an unprecedented pace after also declining sharply during March,” said David Owen, economist at survey compiler IHS Markit.
#Saudi non-oil private sector contracts again, output hits new low: PMI - Reuters
Saudi non-oil private sector contracts again, output hits new low: PMI - Reuters:
Saudi Arabia’s non-oil private sector shrank for the second consecutive month in April and its output hit a record low as lockdowns and business closures to tackle the new coronavirus hammered the economy, a survey showed on Tuesday.
The seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index (PMI) rose slightly to 44.4 in April from 42.4 in March, which was the lowest reading since the survey began in August 2009.
April is only the second time the headline index has fallen below the 50.0 mark that separates growth from contraction. The slight rise from March reflected “a slower reduction in new work and a stronger contribution from the suppliers’ delivery times component,” the survey compilers wrote in a report.
“Saudi Arabian private sector output fell at the fastest pace since the survey began more than a decade ago, reflecting widespread business closures and a sharp reduction in customer demand,” said Tim Moore, economics director at IHS Markit.
Saudi Arabia’s non-oil private sector shrank for the second consecutive month in April and its output hit a record low as lockdowns and business closures to tackle the new coronavirus hammered the economy, a survey showed on Tuesday.
The seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index (PMI) rose slightly to 44.4 in April from 42.4 in March, which was the lowest reading since the survey began in August 2009.
April is only the second time the headline index has fallen below the 50.0 mark that separates growth from contraction. The slight rise from March reflected “a slower reduction in new work and a stronger contribution from the suppliers’ delivery times component,” the survey compilers wrote in a report.
“Saudi Arabian private sector output fell at the fastest pace since the survey began more than a decade ago, reflecting widespread business closures and a sharp reduction in customer demand,” said Tim Moore, economics director at IHS Markit.
Oil prices extend gains on demand hopes as lockdowns ease - Reuters
Oil prices extend gains on demand hopes as lockdowns ease - Reuters:
Oil prices jumped again on Tuesday on hopes for a recovery in vehicle traffic and fuel demand as some European and Asian countries along with several U.S. states began to ease coronavirus lockdown measures.
West Texas Intermediate (WTI) crude CLc1 futures were 7.75%, or $1.58, higher at $21.97 per barrel by 0820 GMT. The U.S. benchmark has closed higher for the last four sessions.
Brent crude LCOc1 futures were up 5.5%, or $1.49, at $28.69.
Italy, Spain, Nigeria and India, together with Ohio and other U.S. states, began allowing some people to go back to work and opened up construction sites, parks and libraries.
Oil prices jumped again on Tuesday on hopes for a recovery in vehicle traffic and fuel demand as some European and Asian countries along with several U.S. states began to ease coronavirus lockdown measures.
West Texas Intermediate (WTI) crude CLc1 futures were 7.75%, or $1.58, higher at $21.97 per barrel by 0820 GMT. The U.S. benchmark has closed higher for the last four sessions.
Brent crude LCOc1 futures were up 5.5%, or $1.49, at $28.69.
Italy, Spain, Nigeria and India, together with Ohio and other U.S. states, began allowing some people to go back to work and opened up construction sites, parks and libraries.
MIDEAST STOCKS- #Saudi leads Gulf higher on rising oil prices - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi leads Gulf higher on rising oil prices - Agricultural Commodities - Reuters:
Major stock markets in the Gulf rose in early trade on Tuesday, with Saudi Arabia leading the gains amid rising oil prices on expectations that fuel demand would begin to pick up.
Brent crude rose 6.7% to $29.02 a barrel at 0723 GMT, up for a sixth straight day, as countries began easing coronavirus-led restrictions and crude supply cuts took effect.
Saudi’s benchmark index advanced 1.9%, with oil giant Saudi Aramco rising 1.8% and Al Rajhi Bank was up 1.3%.
Aramco said on Monday that its operations and supply chains were uninterrupted despite the outbreak of the new coronavirus.
Major stock markets in the Gulf rose in early trade on Tuesday, with Saudi Arabia leading the gains amid rising oil prices on expectations that fuel demand would begin to pick up.
Brent crude rose 6.7% to $29.02 a barrel at 0723 GMT, up for a sixth straight day, as countries began easing coronavirus-led restrictions and crude supply cuts took effect.
Saudi’s benchmark index advanced 1.9%, with oil giant Saudi Aramco rising 1.8% and Al Rajhi Bank was up 1.3%.
Aramco said on Monday that its operations and supply chains were uninterrupted despite the outbreak of the new coronavirus.
Uber's Middle East business Careem cuts 31% of workforce - Reuters
Uber's Middle East business Careem cuts 31% of workforce - Reuters:
Uber Technologies’ Careem subsidiary said on Monday it was cutting 536 jobs this week, representing 31% of the Dubai-headquartered company’s workforce.
The announcement came hours after Uber said it was shuttering its Eats delivery business in several markets, including the Middle East, and laying off dozens of staff.
Careem, which operates ride-hailing and delivery businesses primarily in the Middle East, said it was prioritising the security of the company and that parent Uber continued to believe in its business model and was committed to the region.
“As we have discussed several times in the last few weeks, the crisis brought on by COVID-19 has put our dream and future impact at significant risk,” Chief Executive Mudassir Sheikha said in a blog on Careem’s website.
Uber Technologies’ Careem subsidiary said on Monday it was cutting 536 jobs this week, representing 31% of the Dubai-headquartered company’s workforce.
The announcement came hours after Uber said it was shuttering its Eats delivery business in several markets, including the Middle East, and laying off dozens of staff.
Careem, which operates ride-hailing and delivery businesses primarily in the Middle East, said it was prioritising the security of the company and that parent Uber continued to believe in its business model and was committed to the region.
“As we have discussed several times in the last few weeks, the crisis brought on by COVID-19 has put our dream and future impact at significant risk,” Chief Executive Mudassir Sheikha said in a blog on Careem’s website.
Oil up 3% as countries ease lockdowns, production falls - Reuters
Oil up 3% as countries ease lockdowns, production falls - Reuters:
Oil was up 3% on Monday as more countries announced they would begin easing coronavirus lockdowns and as crude supply cuts by the world’s top producing nations and companies take hold.
Worldwide fuel demand fell by an estimated 30% in April largely due to stay-at-home orders, and weak consumption is expected to overhang the crude market for months, even as major world oil-producers reduce output as of May 1. However, analysts have said that swift action by those parties could help reduce the supply glut more quickly.
“The market continues to price in the idea that things are improving,” Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.
Brent crude LCOc1 settled at $27.20 a barrel, up 76 cents, or 2.9%, while U.S. West Texas Intermediate (WTI) crude CLc1 gained 61 cents, or 3.1%, to $20.39 a barrel.
Oil was up 3% on Monday as more countries announced they would begin easing coronavirus lockdowns and as crude supply cuts by the world’s top producing nations and companies take hold.
Worldwide fuel demand fell by an estimated 30% in April largely due to stay-at-home orders, and weak consumption is expected to overhang the crude market for months, even as major world oil-producers reduce output as of May 1. However, analysts have said that swift action by those parties could help reduce the supply glut more quickly.
“The market continues to price in the idea that things are improving,” Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.
Brent crude LCOc1 settled at $27.20 a barrel, up 76 cents, or 2.9%, while U.S. West Texas Intermediate (WTI) crude CLc1 gained 61 cents, or 3.1%, to $20.39 a barrel.
Funds buy WTI in bet worst is over for oil: Kemp - Reuters
Funds buy WTI in bet worst is over for oil: Kemp - Reuters:
Hedge funds and other money managers bought petroleum derivatives last week in the cautious hope the industry may have passed the worst point of the coronavirus-induced lockdown.
Money managers purchased the equivalent of 41 million barrels in the six most important petroleum futures and options contracts in the week ending on April 28, exchange and regulatory records showed.
Purchases were down from 122 million barrels the previous week, but funds have now been buyers for five weeks running, with total purchases reaching 246 million barrels.
Repeating the pattern of previous weeks, last week’s buying was concentrated in crude (+41 million barrels) with an orientation towards U.S. light sweet crude (known as WTI) (+32 million) rather than Brent (+9 million).
Hedge funds and other money managers bought petroleum derivatives last week in the cautious hope the industry may have passed the worst point of the coronavirus-induced lockdown.
Money managers purchased the equivalent of 41 million barrels in the six most important petroleum futures and options contracts in the week ending on April 28, exchange and regulatory records showed.
Purchases were down from 122 million barrels the previous week, but funds have now been buyers for five weeks running, with total purchases reaching 246 million barrels.
Repeating the pattern of previous weeks, last week’s buying was concentrated in crude (+41 million barrels) with an orientation towards U.S. light sweet crude (known as WTI) (+32 million) rather than Brent (+9 million).
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.