Saudi Wealth Fund Is Said to Explore Investment in Reliance Jio - Bloomberg:
Saudi Arabia’s $320 billion sovereign wealth fund is exploring a potential investment in Reliance Industries Ltd.’s digital unit, according to people with knowledge of the matter.
The Public Investment Fund is considering purchasing a minority stake in Jio Platforms, said the people, who asked not to be identified as the information is private. Deliberations are ongoing and might not lead to a transaction, the people said.
Representatives for Reliance and PIF didn’t immediately respond to requests for comment.
Any new investment into Jio Platforms will add to the $8 billion deal run that billionaire Mukesh Ambani has sealed in the past weeks. Facebook Inc. last month agreed to pay $5.7 billion for a 10% stake in the digital unit, while Silver Lake Partners and Vista Equity Partners this week said they would invest about $2.25 billion in total.
Friday, 8 May 2020
S&P affirms #Qatar's rating at 'AA-', outlook at 'stable' - Reuters
S&P affirms Qatar's rating at 'AA-', outlook at 'stable' - Reuters:
S&P Global Ratings on Friday affirmed Qatar’s rating at “AA-“, saying it believes the Arab country’s government and external balance sheets will be able to provide sufficient buffers to withstand shocks.
The agency said it expects a timely policy response from Qatar’s government to shore up its liquidity, given continued challenges in the international capital markets.
Qatar sold $10 billion in bonds in April, the first Gulf state to raise cash in the debt markets against a backdrop of low oil prices and market uncertainty caused by the coronavirus pandemic.
"Despite a sharp economic contraction and low hydrocarbon prices, we don't expect the government's fiscal and external stock positions will materially deteriorate beyond our expectations," the ratings agency said in a statement.
S&P Global Ratings on Friday affirmed Qatar’s rating at “AA-“, saying it believes the Arab country’s government and external balance sheets will be able to provide sufficient buffers to withstand shocks.
The agency said it expects a timely policy response from Qatar’s government to shore up its liquidity, given continued challenges in the international capital markets.
Qatar sold $10 billion in bonds in April, the first Gulf state to raise cash in the debt markets against a backdrop of low oil prices and market uncertainty caused by the coronavirus pandemic.
"Despite a sharp economic contraction and low hydrocarbon prices, we don't expect the government's fiscal and external stock positions will materially deteriorate beyond our expectations," the ratings agency said in a statement.
Oil rises 5% in second weekly gain on output cuts, demand hopes - Reuters
Oil rises 5% in second weekly gain on output cuts, demand hopes - Reuters:
Oil prices settled 5% higher on Friday in their second consecutive week of gains as U.S. producers cut production with the number of drilling rigs falling to a record low, and as more states moved ahead with plans to relax lockdowns intended to halt the coronavirus pandemic.
The number of operating oil and natural gas rigs fell by 34 to an all-time low of 374 this week - reflecting data going back 80 years - as the energy industry slashes output and spending to deal with the coronavirus-led crash in fuel demand.
North American oil companies have shut production faster than analysts expected and are on track to withdraw about 1.7 million barrels per day (bpd) of output by the end of June.
Brent crude settled up $1.51, or 5.1%, at $30.97 a barrel. U.S. West Texas Intermediate crude futures (WTI) gained $1.19, or 5%, to $24.74 a barrel.
Both contracts posted a second week of gains, with Brent advancing over 18% this week and WTI up about 33%.
Oil prices settled 5% higher on Friday in their second consecutive week of gains as U.S. producers cut production with the number of drilling rigs falling to a record low, and as more states moved ahead with plans to relax lockdowns intended to halt the coronavirus pandemic.
The number of operating oil and natural gas rigs fell by 34 to an all-time low of 374 this week - reflecting data going back 80 years - as the energy industry slashes output and spending to deal with the coronavirus-led crash in fuel demand.
North American oil companies have shut production faster than analysts expected and are on track to withdraw about 1.7 million barrels per day (bpd) of output by the end of June.
Brent crude settled up $1.51, or 5.1%, at $30.97 a barrel. U.S. West Texas Intermediate crude futures (WTI) gained $1.19, or 5%, to $24.74 a barrel.
Both contracts posted a second week of gains, with Brent advancing over 18% this week and WTI up about 33%.
Commodities trader Phoenix goes into liquidation due to coronavirus: documents - Reuters
Commodities trader Phoenix goes into liquidation due to coronavirus: documents - Reuters:
Phoenix Commodities Pvt Ltd, a trader of agricultural products with offices in Dubai and Singapore, is being liquidated after amassing more than $400 million in potential trading losses, according a document prepared by the liquidators seen by Reuters.
The business, founded 20 years ago, grew into a company generating $3 billion in revenue in 2019 trading grain, coal, metals and other products but it unravelled when the coronavirus outbreak upset financial markets. Phoenix blamed the liabilities on currency volatility caused by the onset of the coronavirus, affecting financial derivatives linked to the U.S. dollar and other currencies, the document prepared by the liquidators said.
Executives from restructuring firms Quantuma LLP and KRyS Global were appointed as joint liquidators and notice was sent to the company’s creditors on April 24, according to the document. They declined to comment.
The holding company was based in the British Virgin Islands, where the liquidation process took place. A notice was sent to creditors for a meeting with the liquidators on Friday, the document showed.
Phoenix Commodities Pvt Ltd, a trader of agricultural products with offices in Dubai and Singapore, is being liquidated after amassing more than $400 million in potential trading losses, according a document prepared by the liquidators seen by Reuters.
The business, founded 20 years ago, grew into a company generating $3 billion in revenue in 2019 trading grain, coal, metals and other products but it unravelled when the coronavirus outbreak upset financial markets. Phoenix blamed the liabilities on currency volatility caused by the onset of the coronavirus, affecting financial derivatives linked to the U.S. dollar and other currencies, the document prepared by the liquidators said.
Executives from restructuring firms Quantuma LLP and KRyS Global were appointed as joint liquidators and notice was sent to the company’s creditors on April 24, according to the document. They declined to comment.
The holding company was based in the British Virgin Islands, where the liquidation process took place. A notice was sent to creditors for a meeting with the liquidators on Friday, the document showed.
#Dubai News: Palm Island Pizza and Coronavirus Impact - Bloomberg
Dubai News: Palm Island Pizza and Coronavirus Impact - Bloomberg:
In a bleak morning ritual at his home in Dubai, Hisham Ibrahim weighs up which invoices he absolutely must pay.
The Canadian entrepreneur’s “House of Pizza” restaurant on the man-made Palm Jumeirah island had been restricted to delivery orders by government regulations to contain the Covid-19 pandemic for most of April. Unable even to cover salaries in full as sales slumped 70%, the 49-year-old gave each employee 1,000 dirhams ($272) to help them through. Some suppliers, though, would have to wait. “We were already struggling and now the coronavirus is killing us,” he said.
With its low taxes, wealthy residents and sun-seeking tourists, the business hub of the United Arab Emirates was an obvious choice when Ibrahim set up in the Gulf in 2016. In Dubai, small and medium enterprises like his generate nearly half of output, double the level in neighboring Saudi Arabia, and employ 51% of the workforce.
Yet the arrival of the virus exposed some of its downsides. Cautious banks are still reluctant to lend to the private sector a decade on from the emirate’s near-default during the global financial crisis. And the government’s preference for monetary stimulus, through lenders, rather than direct cash handouts to an expat-dominated private sector means Dubai’s virus safety-net falls far short of those elsewhere.
In a bleak morning ritual at his home in Dubai, Hisham Ibrahim weighs up which invoices he absolutely must pay.
The Canadian entrepreneur’s “House of Pizza” restaurant on the man-made Palm Jumeirah island had been restricted to delivery orders by government regulations to contain the Covid-19 pandemic for most of April. Unable even to cover salaries in full as sales slumped 70%, the 49-year-old gave each employee 1,000 dirhams ($272) to help them through. Some suppliers, though, would have to wait. “We were already struggling and now the coronavirus is killing us,” he said.
With its low taxes, wealthy residents and sun-seeking tourists, the business hub of the United Arab Emirates was an obvious choice when Ibrahim set up in the Gulf in 2016. In Dubai, small and medium enterprises like his generate nearly half of output, double the level in neighboring Saudi Arabia, and employ 51% of the workforce.
Yet the arrival of the virus exposed some of its downsides. Cautious banks are still reluctant to lend to the private sector a decade on from the emirate’s near-default during the global financial crisis. And the government’s preference for monetary stimulus, through lenders, rather than direct cash handouts to an expat-dominated private sector means Dubai’s virus safety-net falls far short of those elsewhere.
#Saudi Shift From Price War Has Asia Oil Buyers Stewing Over Rise - Bloomberg
Saudi Shift From Price War Has Asia Oil Buyers Stewing Over Rise - Bloomberg:
Saudi Arabia’s boost to prices of most of its oil is signaling an end to a destructive price war, but it’s left Asian buyers less than impressed.
The increase was a surprise to Asian customers, which were expecting another cut to prices, according to ten traders surveyed by Bloomberg, just as pockets of demand start to emerge across the region including from the biggest consumer -- China. Buyers were left disappointed when the kingdom hiked the cost of its crude for four of the five grades sold to Asia, prompting some to consider purchasing slightly less from OPEC’s top exporter, traders said.
Buyers will be informing Aramco of their requests such as import volumes, grades, loading dates -- a process known as nomination -- by Friday. Saudi Arabia raised the official price of its flagship Arab Light crude to Asia by $1.40 a barrel for June from May. That compares with an expected cut of as much as $7.50 in a Bloomberg survey last week.
Across the region, oil demand remains some way from pre-virus levels even as consumption in some countries may have bottomed out. In China, Asia’s biggest crude importer, processing rates led by independents refiners rebounded as more motorists took to the streets and factories resumed operations. India’s fuel use is also seeing a slight gain this month.
Saudi Arabia’s boost to prices of most of its oil is signaling an end to a destructive price war, but it’s left Asian buyers less than impressed.
The increase was a surprise to Asian customers, which were expecting another cut to prices, according to ten traders surveyed by Bloomberg, just as pockets of demand start to emerge across the region including from the biggest consumer -- China. Buyers were left disappointed when the kingdom hiked the cost of its crude for four of the five grades sold to Asia, prompting some to consider purchasing slightly less from OPEC’s top exporter, traders said.
Buyers will be informing Aramco of their requests such as import volumes, grades, loading dates -- a process known as nomination -- by Friday. Saudi Arabia raised the official price of its flagship Arab Light crude to Asia by $1.40 a barrel for June from May. That compares with an expected cut of as much as $7.50 in a Bloomberg survey last week.
Across the region, oil demand remains some way from pre-virus levels even as consumption in some countries may have bottomed out. In China, Asia’s biggest crude importer, processing rates led by independents refiners rebounded as more motorists took to the streets and factories resumed operations. India’s fuel use is also seeing a slight gain this month.
Oil heads for another weekly gain on demand hopes and shut-ins - Reuters
Oil heads for another weekly gain on demand hopes and shut-ins - Reuters:
Oil prices rose on Friday and were on course for a second consecutive week of gains as more countries moved ahead with plans to relax economic and social lockdowns put in place to halt the coronavirus pandemic and as more output was shut in.
Brent crude was up by 52 cents, or 1.8%, at $29.98 a barrel by 0920 GMT, having fallen nearly 1% on Thursday.
U.S. West Texas Intermediate (WTI) crude gained 78 cents, or 3.3%, to $24.33 after a decline of nearly 2% in the previous session.
Both contracts are heading for a second week of gains after the lows of April, when U.S. oil crashed below zero, with Brent advancing more than 13% this week and WTI up 23%.
Oil prices rose on Friday and were on course for a second consecutive week of gains as more countries moved ahead with plans to relax economic and social lockdowns put in place to halt the coronavirus pandemic and as more output was shut in.
Brent crude was up by 52 cents, or 1.8%, at $29.98 a barrel by 0920 GMT, having fallen nearly 1% on Thursday.
U.S. West Texas Intermediate (WTI) crude gained 78 cents, or 3.3%, to $24.33 after a decline of nearly 2% in the previous session.
Both contracts are heading for a second week of gains after the lows of April, when U.S. oil crashed below zero, with Brent advancing more than 13% this week and WTI up 23%.