SoftBank, Saudis Would Get a Liquidity Boost From Vision Fund IPO - Bloomberg:
SoftBank Group Corp.’s flagship, $98.6 billion Vision Fund is almost tapped out. Its holdings of unicorn startups aren’t likely to deliver cash to investors anytime soon.
Yet SoftBank needs liquidity, and there’s talk that the Saudi government’s Public Investment Fund may be looking to monetize its stake through a margin loan. (The PIF denied a Bloomberg News report that it has such plans).
An answer to both problems would be to list shares in the Vision Fund itself, a topic that has been given scant regard as people focus on the underlying investments.
Hear me out, though.
The fund’s two biggest holdings right now are Chinese content-platform Bytedance Inc. and ride-hailing leader Didi Chuxing. There’s slim chance that either will have an initial public offering this year, and probably not in the U.S., where the mood toward Chinese companies has soured after the Luckin Coffee Inc. scandal. Too bad for them: All the dollars printed by Washington to tackle the Covid-19 economic crisis might mean there’s plenty of money sitting around waiting for a big new share sale.
Monday, 18 May 2020
Airport services company dnata turns to layoffs and unpaid leave -sources - Reuters
Airport services company dnata turns to layoffs and unpaid leave -sources - Reuters:
Emirates Group’s airport services subsidiary dnata is laying off some employees and has placed thousands of others on unpaid leave after a large drop in business during the coronavirus pandemic, industry and company sources said.
Dnata, which employs 45,000 globally across its airport and travel services divisions, this month reported a 57% fall in annual profit after the pandemic shredded travel demand.
The business, which along with Emirates airline is an asset of Dubai state company Emirates Group, provides airport services at 95 airports in 15 countries and catering services at 60 locations in 12 countries.
Two sources said the company was making a number of jobs redundant at Dubai’s second airport, Al Maktoum, while three sources said that thousands of employees had been placed on unpaid leave around the world.
Emirates Group’s airport services subsidiary dnata is laying off some employees and has placed thousands of others on unpaid leave after a large drop in business during the coronavirus pandemic, industry and company sources said.
Dnata, which employs 45,000 globally across its airport and travel services divisions, this month reported a 57% fall in annual profit after the pandemic shredded travel demand.
The business, which along with Emirates airline is an asset of Dubai state company Emirates Group, provides airport services at 95 airports in 15 countries and catering services at 60 locations in 12 countries.
Two sources said the company was making a number of jobs redundant at Dubai’s second airport, Al Maktoum, while three sources said that thousands of employees had been placed on unpaid leave around the world.
Oil jumps to two-month high on easing lockdowns, positive vaccine results - Reuters
Oil jumps to two-month high on easing lockdowns, positive vaccine results - Reuters:
Oil prices on Monday jumped to their highest in over two months on positive early results on a potential coronavirus vaccine, optimism about a resumption in economic activity and signs producers were following through on planned output reductions.
Brent LCOc1 futures for July delivery rose $2.31, or 7.1%, to $34.81 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 rose $2.39, or 8.1%, to $31.82.
That was the highest settles for Brent and WTI since March 11, just a few days after prices started to collapse following the failure of a production cut agreement between the Organization of the Petroleum Exporting Countries (OPEC) and Russia, a group known as OPEC+.
“It has taken WTI over two months to basically clean up the wreckage from the March (OPEC+) meeting,” said Bob Yawger, director of energy futures at Mizuho in New York.
Oil prices on Monday jumped to their highest in over two months on positive early results on a potential coronavirus vaccine, optimism about a resumption in economic activity and signs producers were following through on planned output reductions.
Brent LCOc1 futures for July delivery rose $2.31, or 7.1%, to $34.81 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 rose $2.39, or 8.1%, to $31.82.
That was the highest settles for Brent and WTI since March 11, just a few days after prices started to collapse following the failure of a production cut agreement between the Organization of the Petroleum Exporting Countries (OPEC) and Russia, a group known as OPEC+.
“It has taken WTI over two months to basically clean up the wreckage from the March (OPEC+) meeting,” said Bob Yawger, director of energy futures at Mizuho in New York.
#Qatar halts all commercial activities until end of May - Reuters #stayathome
Qatar halts all commercial activities until end of May - Reuters:
Qatar tightened restrictions on commercial activities on Monday, ordering all shops to close until the end of the month as part of measures to stem the spread of the novel coronavirus.
The decision taken at a cabinet meeting exempts pharmacies, food supply stores and food deliveries. Malls and dine-in restaurants were already closed but other stores had still been operating.
The country of some 2.8 million on Monday reported 1,364 new COVID-19 cases, raising the total to 33,969, the second highest infection count after larger neighbour Saudi Arabia among six Gulf Arab states. Its death toll from the virus stands at 15.
Qatar, where expatriates make up the majority of the population, has like other Gulf states seen the virus spread among low-wage foreign workers living in cramped quarters.
Qatar tightened restrictions on commercial activities on Monday, ordering all shops to close until the end of the month as part of measures to stem the spread of the novel coronavirus.
The decision taken at a cabinet meeting exempts pharmacies, food supply stores and food deliveries. Malls and dine-in restaurants were already closed but other stores had still been operating.
The country of some 2.8 million on Monday reported 1,364 new COVID-19 cases, raising the total to 33,969, the second highest infection count after larger neighbour Saudi Arabia among six Gulf Arab states. Its death toll from the virus stands at 15.
Qatar, where expatriates make up the majority of the population, has like other Gulf states seen the virus spread among low-wage foreign workers living in cramped quarters.
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.
#Dubai, #AbuDhabi stock markets to merge? DFM issues further clarification | ZAWYA MENA Edition
Dubai, Abu Dhabi stock markets to merge? DFM issues further clarification | ZAWYA MENA Edition:
The Dubai Financial Market (DFM) has fully doused speculations that it is merging with the stock market in Abu Dhabi.
Reuters recently reported that Dubai is in talks with Abu Dhabi for support from the state fund Mubadala. One of the areas where this can be done “in the near term” is through a merger of DFM and Abu Dhabi Securities Exchange (ADX), a source was quoted as saying.
The Dubai Media office immediately dismissed the report, citing that the claim was not verified by a credible source.
However, DFM today said in a statement that it does not have any knowledge regarding the matter that requires public disclosure.
“Regarding a potential merger of the financial markets in the UAE mentioned in the report, please note that the company has no information that requires disclosure and confirm its full commitment to the disclosure and transparency regulations,” the DFM said.
The Dubai Financial Market (DFM) has fully doused speculations that it is merging with the stock market in Abu Dhabi.
Reuters recently reported that Dubai is in talks with Abu Dhabi for support from the state fund Mubadala. One of the areas where this can be done “in the near term” is through a merger of DFM and Abu Dhabi Securities Exchange (ADX), a source was quoted as saying.
The Dubai Media office immediately dismissed the report, citing that the claim was not verified by a credible source.
However, DFM today said in a statement that it does not have any knowledge regarding the matter that requires public disclosure.
“Regarding a potential merger of the financial markets in the UAE mentioned in the report, please note that the company has no information that requires disclosure and confirm its full commitment to the disclosure and transparency regulations,” the DFM said.
Flying Blind Through Crisis, Many Gulf Economies Still an Enigma - Bloomberg
Flying Blind Through Crisis, Many Gulf Economies Still an Enigma - Bloomberg:
Statistics are a poor guide to the crisis raging across Gulf Arab economies.
The region’s second-biggest economy, the United Arab Emirates, has yet to disclose how it performed in the second quarter -- of last year. The statistics authority separately released an assessment of the U.A.E.’s full-year gross domestic product growth for 2019, without providing a quarterly breakdown.
Qatar published national accounts for the fourth quarter only in late April. Although faster than its neighbors, Saudi Arabia is scheduled to report the first quarter’s GDP on the last day of June, some two months behind most of its counterparts in the Group of 20.
The delays are increasingly a source of frustration for investors, economists and rating companies -- especially at a time when the damage from slumping oil prices and the coronavirus pandemic is reshaping the outlook so fast that analysts can barely keep up. Statistics in some of the countries can be equally scarce on everything from budgets to wealth fund holdings.
Statistics are a poor guide to the crisis raging across Gulf Arab economies.
The region’s second-biggest economy, the United Arab Emirates, has yet to disclose how it performed in the second quarter -- of last year. The statistics authority separately released an assessment of the U.A.E.’s full-year gross domestic product growth for 2019, without providing a quarterly breakdown.
Qatar published national accounts for the fourth quarter only in late April. Although faster than its neighbors, Saudi Arabia is scheduled to report the first quarter’s GDP on the last day of June, some two months behind most of its counterparts in the Group of 20.
The delays are increasingly a source of frustration for investors, economists and rating companies -- especially at a time when the damage from slumping oil prices and the coronavirus pandemic is reshaping the outlook so fast that analysts can barely keep up. Statistics in some of the countries can be equally scarce on everything from budgets to wealth fund holdings.
Middle East News: #Saudi Binladin Construction Cuts Jobs and Pay - Bloomberg
Middle East News: Saudi Binladin Construction Cuts Jobs and Pay - Bloomberg:
Saudi Binladin Group cut jobs and reduced staff salaries as Saudi Arabia’s biggest construction firm navigates the fallout of the coronavirus pandemic.
The Jeddah-based conglomerate put thousands of employees on indefinite, unpaid leave as it weighs options to lower costs by as much as 50%, according to people with knowledge of the matter. The group reduced pay by about a third during the holy month of Ramadan to reflect shorter working hours, which impacted about half of its 100,000 employees, according to an internal announcement seen by Bloomberg.
The company, which is restructuring an estimated $15 billion of debt, has already started laying off staff, including senior managers, and more jobs will be cut, the people said, asking not to be identified due to the sensitivity of the matter. A Binladin representative didn’t respond to requests for comment.
Saudi Arabia’s economy is being battered by a 50% slump in crude prices this year and from lockdown measures to prevent the spread of Covid-19. Faced with the prospect of ballooning deficits, the government has tripled valued-added tax, cut allowances for state employees and tapped its foreign reserves.
Saudi Binladin Group cut jobs and reduced staff salaries as Saudi Arabia’s biggest construction firm navigates the fallout of the coronavirus pandemic.
The Jeddah-based conglomerate put thousands of employees on indefinite, unpaid leave as it weighs options to lower costs by as much as 50%, according to people with knowledge of the matter. The group reduced pay by about a third during the holy month of Ramadan to reflect shorter working hours, which impacted about half of its 100,000 employees, according to an internal announcement seen by Bloomberg.
The company, which is restructuring an estimated $15 billion of debt, has already started laying off staff, including senior managers, and more jobs will be cut, the people said, asking not to be identified due to the sensitivity of the matter. A Binladin representative didn’t respond to requests for comment.
Saudi Arabia’s economy is being battered by a 50% slump in crude prices this year and from lockdown measures to prevent the spread of Covid-19. Faced with the prospect of ballooning deficits, the government has tripled valued-added tax, cut allowances for state employees and tapped its foreign reserves.
#Iran stock market booms, but analysts fear a growing bubble
Iran stock market booms, but analysts fear a growing bubble:
Even as U.S. sanctions, unemployment, inflation and low oil prices batter the Iranian economy, there seems to be at least one refuge for investors.
The Tehran Stock Exchange has seen gains of 225% in the last year, with sharp increases even as the country struggled with one of the first serious coronavirus outbreaks outside of China.
Encouraged by a government eager to privatize state-owned firms, average people now have access to the market and can trade shares, earning returns they’d never see in a savings account or a certificate of deposit.
But these rapid gains increasingly have analysts and experts worried about a growing stock market bubble, one that could be particularly dire and wipe away the earnings of the average people flooding into the market.
Even as U.S. sanctions, unemployment, inflation and low oil prices batter the Iranian economy, there seems to be at least one refuge for investors.
The Tehran Stock Exchange has seen gains of 225% in the last year, with sharp increases even as the country struggled with one of the first serious coronavirus outbreaks outside of China.
Encouraged by a government eager to privatize state-owned firms, average people now have access to the market and can trade shares, earning returns they’d never see in a savings account or a certificate of deposit.
But these rapid gains increasingly have analysts and experts worried about a growing stock market bubble, one that could be particularly dire and wipe away the earnings of the average people flooding into the market.
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.
Oil prices rise more than $1 ahead of June WTI contract expiry - Reuters
Oil prices rise more than $1 ahead of June WTI contract expiry - Reuters:
Oil prices climbed by more than $1 a barrel on Monday, supported by output cuts and signs of a gradual recovery in demand amid easing coronavirus curbs, with U.S. oil showing no signs of last month’s contract expiry price rout.
Brent crude LCOc1 was up $1.33, or 4.1%, at $33.83 a barrel by 0634 GMT, after touching its highest since April 13. U.S. West Texas Intermediate crude CLc1 was up $1.65, or 5.6%, at $31.08 a barrel, after rising to its highest since March 16. The more active July contract CLc2 was at $31.05, up $1.53.
“Oil prices may show further upside momentum as the easing in mobility restrictions grows,” said Stephen Innes, chief global market strategist at AxiCorp in a note, referring to curbs that were designed to counter the coronavirus.
The June WTI contract expires on Tuesday, but there was little indication of WTI repeating the historic plunge below zero seen last month on the eve of the May contract’s expiry amid signs that demand for crude and derived fuels is recovering from its nadir.
Oil prices climbed by more than $1 a barrel on Monday, supported by output cuts and signs of a gradual recovery in demand amid easing coronavirus curbs, with U.S. oil showing no signs of last month’s contract expiry price rout.
Brent crude LCOc1 was up $1.33, or 4.1%, at $33.83 a barrel by 0634 GMT, after touching its highest since April 13. U.S. West Texas Intermediate crude CLc1 was up $1.65, or 5.6%, at $31.08 a barrel, after rising to its highest since March 16. The more active July contract CLc2 was at $31.05, up $1.53.
“Oil prices may show further upside momentum as the easing in mobility restrictions grows,” said Stephen Innes, chief global market strategist at AxiCorp in a note, referring to curbs that were designed to counter the coronavirus.
The June WTI contract expires on Tuesday, but there was little indication of WTI repeating the historic plunge below zero seen last month on the eve of the May contract’s expiry amid signs that demand for crude and derived fuels is recovering from its nadir.
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