Abu Dhabi Sheikh Is Said in Talks to Buy Stake in Amanat - Bloomberg:
A company backed by a member of Abu Dhabi’s royal family is in talks to buy a stake in Amanat Holdings PJSC, an investment firm with interests in health and education, according to people with knowledge of the matter.
One of the businesses led by Sheikh Tahnoon Bin Zayed Al Nahyan is in early-stage discussions to invest in Amanat, which has a market value of about $524 million, the people said. It wasn’t immediately clear which entity Sheikh Tahnoon would use for the potential transaction, according to the people, who asked not to be identified because the information is private.
Any deal would add to a buying spree by companies under Sheikh Tahnoon’s control as the emirate uses the coronavirus pandemic to snap up stakes in key industries such as food supply and health-care. Abu Dhabi, holder of about 6% of the world’s oil reserves, recently agreed to buy a stake worth more than $1 billion in one of the Middle East’s largest hypermarket chains as it seeks to diversify its economy away from crude.
Thursday, 14 May 2020
World’s Biggest Wealth Fund Dumps $3 Billion in Fossil Fuels - Bloomberg
World’s Biggest Wealth Fund Dumps $3 Billion in Fossil Fuels - Bloomberg:
Norway’s $1 trillion wealth fund is doubling down on its climate action by making deeper cuts to its fossil fuel exposure.
The exclusions span some of the world’s biggest coal miners and make use of climate rules for the first time to exit oil-sands firms. Glencore Plc and Anglo American Plc, utility RWE AG and Canadian oil producer Suncor Energy Inc. are among those hit by withdrawals that amount to about $3.3 billion based on Bloomberg calculations using the fund’s reported holdings at the end of last year.
The move had been eagerly awaited by environmental activists after Norway tightened the fund’s restrictions on investments in thermal coal last year, closing what critics had described as a loophole to continue funding polluters.
Norway’s $1 trillion wealth fund is doubling down on its climate action by making deeper cuts to its fossil fuel exposure.
The exclusions span some of the world’s biggest coal miners and make use of climate rules for the first time to exit oil-sands firms. Glencore Plc and Anglo American Plc, utility RWE AG and Canadian oil producer Suncor Energy Inc. are among those hit by withdrawals that amount to about $3.3 billion based on Bloomberg calculations using the fund’s reported holdings at the end of last year.
The move had been eagerly awaited by environmental activists after Norway tightened the fund’s restrictions on investments in thermal coal last year, closing what critics had described as a loophole to continue funding polluters.
Maybe it's time for Emirates and Etihad to consider a merger - Arabianbusiness
Maybe it's time for Emirates and Etihad to consider a merger - Arabianbusiness:
Who would have thought that two of the Middle East’s largest airlines, who have denied rumours of a merger for years, would release a joint statement? Then again, who would have predicted that a virus would wipe out $314bn in ticket sales in 2020?
In May, Emirates airline President Tim Clark and Etihad Airways CEO Tony Douglas warned that 85 percent of airlines globally face insolvency by the end of the year without government intervention.
It may have taken a global health pandemic, but maybe now is the time for the airlines to hook up. They already cooperate in aviation security, maintenance, repair, and overhaul (MRO) works. Emirates’ tie-up with Flydubai in terms has also kind of transformed into a de facto merger. So what is keeping them from creating the world’s biggest carrier by passenger traffic? Well it’s a little more complicated than it seems.
A win-win
On the one hand, a merger will help Etihad Airways cut its losses, which it managed to shrink from $1.52bn in 2017 to $1.28bn in 2018, extending the deficit over three years to $4.8bn thanks in no small part to investments in Alitalia, Air Berlin and India’s Jet Airways which turned sour. Emirates would also have to take on the Abu Dhabi carrier’s struggling load factor, having carried over a million passengers less in 2018 compared to 2017.
Who would have thought that two of the Middle East’s largest airlines, who have denied rumours of a merger for years, would release a joint statement? Then again, who would have predicted that a virus would wipe out $314bn in ticket sales in 2020?
In May, Emirates airline President Tim Clark and Etihad Airways CEO Tony Douglas warned that 85 percent of airlines globally face insolvency by the end of the year without government intervention.
It may have taken a global health pandemic, but maybe now is the time for the airlines to hook up. They already cooperate in aviation security, maintenance, repair, and overhaul (MRO) works. Emirates’ tie-up with Flydubai in terms has also kind of transformed into a de facto merger. So what is keeping them from creating the world’s biggest carrier by passenger traffic? Well it’s a little more complicated than it seems.
A win-win
On the one hand, a merger will help Etihad Airways cut its losses, which it managed to shrink from $1.52bn in 2017 to $1.28bn in 2018, extending the deficit over three years to $4.8bn thanks in no small part to investments in Alitalia, Air Berlin and India’s Jet Airways which turned sour. Emirates would also have to take on the Abu Dhabi carrier’s struggling load factor, having carried over a million passengers less in 2018 compared to 2017.
Exclusive: Saudi Binladin seeks adviser for financial overhaul of Mecca complex - Reuters
Exclusive: Saudi Binladin seeks adviser for financial overhaul of Mecca complex - Reuters:
Binladin International Holding Group, Saudi Arabia’s biggest construction company, is seeking an adviser to cut costs as well as restructure the debt of a Mecca skyscraper complex, sources familiar with the matter said and a document showed.
The move is part of efforts to restructure the construction group, after the government took a 35% stake from Bin Laden family members that were swept up in an anti-graft campaign launched by Riyadh in late 2017.
Binladin completed the $15 billion government-owned Abraj Al Beit golden clocktower complex in 2011. The development has seven towers of hotels and malls and looms over the Grand Mosque in Mecca, the holy city visited by millions of Muslim pilgrims every year.
The 603-metre tall clock tower is the landmark feature of the complex, which was built to modernise the old city and provide accommodation and other facilities for pilgrims.
Binladin International Holding Group, Saudi Arabia’s biggest construction company, is seeking an adviser to cut costs as well as restructure the debt of a Mecca skyscraper complex, sources familiar with the matter said and a document showed.
The move is part of efforts to restructure the construction group, after the government took a 35% stake from Bin Laden family members that were swept up in an anti-graft campaign launched by Riyadh in late 2017.
Binladin completed the $15 billion government-owned Abraj Al Beit golden clocktower complex in 2011. The development has seven towers of hotels and malls and looms over the Grand Mosque in Mecca, the holy city visited by millions of Muslim pilgrims every year.
The 603-metre tall clock tower is the landmark feature of the complex, which was built to modernise the old city and provide accommodation and other facilities for pilgrims.
Ashmore shows interest in deal to run NMC hospitals: sources - Reuters
Ashmore shows interest in deal to run NMC hospitals: sources - Reuters:
Ashmore Group (ASHM.L) has shown interest in a contract to operate troubled NMC Health’s chain of hospitals in the United Arab Emirates (UAE), two sources close to the matter told Reuters.
The British investment manager’s approach excludes any acquisition of NMC Health, the London-listed holding company that was placed into administration last month after months of turmoil, one of the sources said.
Ashmore, the private equity arm of which focuses on the healthcare sector, is among a number of potential bidders seeking a deal to run the hospitals, both sources said.
The investor already has a presence in the UAE after King’s College Hospital London was brought to Dubai through a joint venture with Al Tayer Group, Dubai Investments and Ashmore.
NMC, which was founded by Indian businessman BR Shetty in the mid-1970s, became the largest private healthcare provider in the UAE but has run into trouble after short-seller Muddy Waters questioned its financial reporting and doubts emerged over the size of stakes owned by its biggest shareholders.
Ashmore Group (ASHM.L) has shown interest in a contract to operate troubled NMC Health’s chain of hospitals in the United Arab Emirates (UAE), two sources close to the matter told Reuters.
The British investment manager’s approach excludes any acquisition of NMC Health, the London-listed holding company that was placed into administration last month after months of turmoil, one of the sources said.
Ashmore, the private equity arm of which focuses on the healthcare sector, is among a number of potential bidders seeking a deal to run the hospitals, both sources said.
The investor already has a presence in the UAE after King’s College Hospital London was brought to Dubai through a joint venture with Al Tayer Group, Dubai Investments and Ashmore.
NMC, which was founded by Indian businessman BR Shetty in the mid-1970s, became the largest private healthcare provider in the UAE but has run into trouble after short-seller Muddy Waters questioned its financial reporting and doubts emerged over the size of stakes owned by its biggest shareholders.
Pandemic leaves McLaren exploring funding options - Reuters
Pandemic leaves McLaren exploring funding options - Reuters:
McLaren is looking into various funding options to help the sportscar maker and Formula One team owner negotiate the coronavirus pandemic, a spokesman said on Thursday.
Sky News reported that British-based McLaren was seeking to raise up to 275 million pounds ($335.61 million) by borrowing against its Woking headquarters and extensive collection of historic racing cars.
It quoted sources as saying McLaren, advised by JP Morgan, could raise the money in the form of new bonds with funding secured from existing or new bondholders.
A request for a 150 million-pound loan from the government was recently rejected, according to media reports.
McLaren is looking into various funding options to help the sportscar maker and Formula One team owner negotiate the coronavirus pandemic, a spokesman said on Thursday.
Sky News reported that British-based McLaren was seeking to raise up to 275 million pounds ($335.61 million) by borrowing against its Woking headquarters and extensive collection of historic racing cars.
It quoted sources as saying McLaren, advised by JP Morgan, could raise the money in the form of new bonds with funding secured from existing or new bondholders.
A request for a 150 million-pound loan from the government was recently rejected, according to media reports.
Air Arabia first quarter profit sinks 45% on coronavirus - Reuters
Air Arabia first quarter profit sinks 45% on coronavirus - Reuters:
Middle East budget carrier Air Arabia (AIRA.DU) reported a 45% fall in first quarter profit on Thursday, blaming the coronavirus pandemic that has crushed travel demand.
The United Arab Emirates’ only listed airline made 71 million dirhams ($19.3 million) in the three months to March 31, compared to 128 million dirhams a year earlier, it said in a statement.
Revenue fell 12% to 901 million dirhams and quarterly passenger traffic declined 14% to 2.4 million.
The airline recorded a strong start to the year but the coronavirus outbreak impacted overall performance in the first three months of the year, Chairman Sheikh Abdullah Bin Mohamed al-Thani said.
Middle East budget carrier Air Arabia (AIRA.DU) reported a 45% fall in first quarter profit on Thursday, blaming the coronavirus pandemic that has crushed travel demand.
The United Arab Emirates’ only listed airline made 71 million dirhams ($19.3 million) in the three months to March 31, compared to 128 million dirhams a year earlier, it said in a statement.
Revenue fell 12% to 901 million dirhams and quarterly passenger traffic declined 14% to 2.4 million.
The airline recorded a strong start to the year but the coronavirus outbreak impacted overall performance in the first three months of the year, Chairman Sheikh Abdullah Bin Mohamed al-Thani said.
Oil prices rise on dip in U.S. crude stockpiles and IEA data - Reuters
Oil prices rise on dip in U.S. crude stockpiles and IEA data - Reuters:
Oil prices settled higher on Thursday after the International Energy Agency (IEA) forecast lower global stockpiles in the second half of 2020, although worries remain that a second surge in coronavirus infections could occur in coming months.
Crude prices have ticked up in the last two weeks as some countries relaxed coronavirus restrictions to allow factories and shops to reopen.
Brent crude futures settled up $1.94, or 6.7 percent, to $31.13 a barrel.
U.S. West Texas Intermediate (WTI) crude futures settled up $2.27, or 9%, to $27.56 a barrel.
The market rebounded from Wednesday’s losses built on a glum forecast for the economy from U.S. Federal Reserve Chairman Jerome Powell, who warned of an “extended period” of weak economic growth. That offset an unexpected drop in U.S. stockpiles.
Oil prices settled higher on Thursday after the International Energy Agency (IEA) forecast lower global stockpiles in the second half of 2020, although worries remain that a second surge in coronavirus infections could occur in coming months.
Crude prices have ticked up in the last two weeks as some countries relaxed coronavirus restrictions to allow factories and shops to reopen.
Brent crude futures settled up $1.94, or 6.7 percent, to $31.13 a barrel.
U.S. West Texas Intermediate (WTI) crude futures settled up $2.27, or 9%, to $27.56 a barrel.
The market rebounded from Wednesday’s losses built on a glum forecast for the economy from U.S. Federal Reserve Chairman Jerome Powell, who warned of an “extended period” of weak economic growth. That offset an unexpected drop in U.S. stockpiles.
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.
MIDEAST STOCKS-Major Gulf stocks fall as OPEC cuts oil demand forecast - Agricultural Commodities - Reuters
MIDEAST STOCKS-Major Gulf stocks fall as OPEC cuts oil demand forecast - Agricultural Commodities - Reuters:
Major Gulf stock markets retreated in early trade on Thursday after the Organization of the Petroleum Exporting Countries (OPEC) slashed its forecast again for global oil demand this year.
OPEC now expects global demand to contract by 9.07 million barrels per day, or 9.1%, in 2020, it said in a monthly report on Wednesday. Last month, OPEC expected a contraction of 6.85 million bpd.
Saudi Arabia’s benchmark index eased 0.2% in choppy trading. Banque Saudi Fransi slipped 3.7%, while petrochemical maker Saudi Basic Industries was down 1%.
The oil giant Saudi Aramco was trading 0.3% down at 31.25 riyals.
Major Gulf stock markets retreated in early trade on Thursday after the Organization of the Petroleum Exporting Countries (OPEC) slashed its forecast again for global oil demand this year.
OPEC now expects global demand to contract by 9.07 million barrels per day, or 9.1%, in 2020, it said in a monthly report on Wednesday. Last month, OPEC expected a contraction of 6.85 million bpd.
Saudi Arabia’s benchmark index eased 0.2% in choppy trading. Banque Saudi Fransi slipped 3.7%, while petrochemical maker Saudi Basic Industries was down 1%.
The oil giant Saudi Aramco was trading 0.3% down at 31.25 riyals.
Rich Nations Face a World Without Cheap Migrant Labor (Podcast) - Bloomberg
Rich Nations Face a World Without Cheap Migrant Labor (Podcast) - Bloomberg:
Romanian home-care workers in Italy. Indian construction crews in Dubai. Filipino maids and cooks in Singapore. The world’s wealthy economies depend on a steady flow of cheap labor from lower-income nations. And people in those nations often rely on remittances from family members working abroad.
Now it seems that the coronavirus pandemic that’s crushing economies all over the world is also upending the global labor market. Workers are heading back to their native countries in large numbers—or stranded far from home without jobs and benefits.
https://megaphone.link/BLM7808859206
Romanian home-care workers in Italy. Indian construction crews in Dubai. Filipino maids and cooks in Singapore. The world’s wealthy economies depend on a steady flow of cheap labor from lower-income nations. And people in those nations often rely on remittances from family members working abroad.
Now it seems that the coronavirus pandemic that’s crushing economies all over the world is also upending the global labor market. Workers are heading back to their native countries in large numbers—or stranded far from home without jobs and benefits.
https://megaphone.link/BLM7808859206
Currency News: Dollar Peg Wobbles for #Saudi, #UAE, #Oman, #Qatar - Bloomberg
Currency News: Dollar Peg Wobbles for Saudi, U.A.E., Oman, Qatar - Bloomberg:
Although the decades-old currency pegs of the Gulf Arab region often come under strain in depressed oil markets, they always have survived. This time, however, energy prices are at historic lows and the coronavirus outbreak has unleashed recessions that are squeezing government budgets like never before. With some of the Gulf currencies under pressure from speculators, are the pegs facing their sternest test?
1. How are the pegs under pressure?
As Saudi Arabia embarked on an oil-price war in March by boosting crude production, traders were betting through the derivatives market that the region’s currencies would weaken within a year. Such a scenario is possible only if countries abandon their currency pegs. Fixed exchange-rate regimes in Asia were swept away during the currency crisis of the late 1990s, when speculators forced the likes of Thailand and South Korea to abandon their links with the dollar. Currency pegs are now largely confined to the major oil producers in the Middle East which appear unwilling to let them go.
Although the decades-old currency pegs of the Gulf Arab region often come under strain in depressed oil markets, they always have survived. This time, however, energy prices are at historic lows and the coronavirus outbreak has unleashed recessions that are squeezing government budgets like never before. With some of the Gulf currencies under pressure from speculators, are the pegs facing their sternest test?
1. How are the pegs under pressure?
As Saudi Arabia embarked on an oil-price war in March by boosting crude production, traders were betting through the derivatives market that the region’s currencies would weaken within a year. Such a scenario is possible only if countries abandon their currency pegs. Fixed exchange-rate regimes in Asia were swept away during the currency crisis of the late 1990s, when speculators forced the likes of Thailand and South Korea to abandon their links with the dollar. Currency pegs are now largely confined to the major oil producers in the Middle East which appear unwilling to let them go.
RPT-Promise of future prosperity fades as austerity hits #Saudis' pockets - Reuters
RPT-Promise of future prosperity fades as austerity hits Saudis' pockets - Reuters:
Saudi Arabia’s austerity drive will squeeze a private sector vital to its plan to diversify away from oil and may cost its powerful crown prince some prestige as citizens see their spending power shrink.
Several businessmen and economists said the tripling of value added tax (VAT) and suspension of a cost of living allowance for state employees could deepen a downturn in the Arab world’s largest economy and delay job creation.
The changes are set to ripple through most areas of business life, already struggling with weak demand due to a coronavirus lockdown, and weigh on living standards of ordinary Saudis.
“I don’t understand how this will help the private sector that is already hit by low demand,” said a Saudi retailer, who requested anonymity to speak freely.
Saudi Arabia’s austerity drive will squeeze a private sector vital to its plan to diversify away from oil and may cost its powerful crown prince some prestige as citizens see their spending power shrink.
Several businessmen and economists said the tripling of value added tax (VAT) and suspension of a cost of living allowance for state employees could deepen a downturn in the Arab world’s largest economy and delay job creation.
The changes are set to ripple through most areas of business life, already struggling with weak demand due to a coronavirus lockdown, and weigh on living standards of ordinary Saudis.
“I don’t understand how this will help the private sector that is already hit by low demand,” said a Saudi retailer, who requested anonymity to speak freely.
#Dubai Airports Chief Sees ‘Hockey Stick’ Recovery After Vaccine - Bloomberg
Dubai Airports Chief Sees ‘Hockey Stick’ Recovery After Vaccine - Bloomberg:
The head of the world’s busiest international air hub is confident that passengers will return to the skies in droves once they believe it’s safe. He’s just not sure when that will occur.
Activity has slowed to a trickle at Dubai International airport, which handled some 86.4 million passengers last year. Dubai Airports Chief Executive Officer Paul Griffiths said he expects a hockey stick-like resumption in traffic driven by pent-up demand, but only after there’s a lasting solution to the coronavirus pandemic that’s hammered air travel across the globe.
“Until there is the sort of proven level of confidence medically that people can safely travel without fear of contracting or spreading the virus, unfortunately the situation we find ourselves in will likely continue for some time,” Griffiths said in an interview. “Gradually we’ll start to see some confidence build,” he said, starting with countries that have gotten the spread of the virus under control.
The head of the world’s busiest international air hub is confident that passengers will return to the skies in droves once they believe it’s safe. He’s just not sure when that will occur.
Activity has slowed to a trickle at Dubai International airport, which handled some 86.4 million passengers last year. Dubai Airports Chief Executive Officer Paul Griffiths said he expects a hockey stick-like resumption in traffic driven by pent-up demand, but only after there’s a lasting solution to the coronavirus pandemic that’s hammered air travel across the globe.
“Until there is the sort of proven level of confidence medically that people can safely travel without fear of contracting or spreading the virus, unfortunately the situation we find ourselves in will likely continue for some time,” Griffiths said in an interview. “Gradually we’ll start to see some confidence build,” he said, starting with countries that have gotten the spread of the virus under control.
#Qatar Airways to Cut Almost 20% of Workforce, CEO Tells BBC - Bloomberg
Qatar Airways to Cut Almost 20% of Workforce, CEO Tells BBC - Bloomberg:
Qatar Airways will cut almost 20% of its workforce after a slump in travel demand caused by the coronavirus, the carrier’s chief executive officer said in a BBC interview.
“We have no other alternative,” Akbar Al Baker said Wednesday. He told Bloomberg earlier this week that rehiring laid-off employees would be his first priority once business returns.
The airline employs more than 46,000 people, according to its website, meaning the layoffs could affect about 9,200 workers.
Qatar Airways will cut almost 20% of its workforce after a slump in travel demand caused by the coronavirus, the carrier’s chief executive officer said in a BBC interview.
“We have no other alternative,” Akbar Al Baker said Wednesday. He told Bloomberg earlier this week that rehiring laid-off employees would be his first priority once business returns.
The airline employs more than 46,000 people, according to its website, meaning the layoffs could affect about 9,200 workers.
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.
IEA still sees record 2020 oil demand fall but easing lockdowns helping - Reuters
IEA still sees record 2020 oil demand fall but easing lockdowns helping - Reuters:
Oil demand is still set for a record fall in 2020, the International Energy Agency (IEA) said on Thursday, but it trimmed its forecast for the drop citing easing lockdown measures.
Demand is expected to fall by 8.6 million barrels per day (bpd), the IEA said in its monthly report, trimming its estimate by 690,000 bpd.
Around 2.8 billion people will be living under confinement measures aimed at containing the coronavirus at the end of May, down from 4 billion in April, the Paris-based IEA said.
In trimming its forecast it also cited stronger-than-expected mobility in some European countries and the United States as well as higher Chinese demand as it recovers from the virus outbreak.
Oil demand is still set for a record fall in 2020, the International Energy Agency (IEA) said on Thursday, but it trimmed its forecast for the drop citing easing lockdown measures.
Demand is expected to fall by 8.6 million barrels per day (bpd), the IEA said in its monthly report, trimming its estimate by 690,000 bpd.
Around 2.8 billion people will be living under confinement measures aimed at containing the coronavirus at the end of May, down from 4 billion in April, the Paris-based IEA said.
In trimming its forecast it also cited stronger-than-expected mobility in some European countries and the United States as well as higher Chinese demand as it recovers from the virus outbreak.
Oil prices rise on U.S. stockpile drop, but bleak outlook caps gains - Reuters
Oil prices rise on U.S. stockpile drop, but bleak outlook caps gains - Reuters:
Oil prices climbed on Thursday following an unexpected drop in U.S. crude stocks, but gains were capped by a bleak outlook for the world’s No. 1 economy as the coronavirus pandemic crushes fuel demand, and concern over a potential second wave of cases.
Brent crude futures were up 18 cents, or 0.6%, at $29.37 per barrel at 0621 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 23 cents, or 0.9%, at $25.52 a barrel.
Prices have risen in the past two weeks as some countries relaxed coronavirus restrictions and lockdowns to allow factories and shops to open again. But new cases have emerged in South Korea and China, raising concerns over a possible second wave of infections which would weigh on economic recovery and fuel demand.
Oil prices climbed on Thursday following an unexpected drop in U.S. crude stocks, but gains were capped by a bleak outlook for the world’s No. 1 economy as the coronavirus pandemic crushes fuel demand, and concern over a potential second wave of cases.
Brent crude futures were up 18 cents, or 0.6%, at $29.37 per barrel at 0621 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 23 cents, or 0.9%, at $25.52 a barrel.
Prices have risen in the past two weeks as some countries relaxed coronavirus restrictions and lockdowns to allow factories and shops to open again. But new cases have emerged in South Korea and China, raising concerns over a possible second wave of infections which would weigh on economic recovery and fuel demand.