Covid-19: Dubai May Lose a Third of Its Hotel Jobs in Crisis - Bloomberg:
Dubai’s hotel occupancy has plummeted since the outbreak of the coronavirus and about 30% of workers in the industry will probably lose their jobs, according to research firm STR Global.
About 43,000 hotel rooms, about a third of the total, will probably remain closed until September as most owners channel reservations into fewer properties to save on operating costs, Philip Wooller, Middle East and Africa director at STR Global, said in an interview. The industry employs about 40,000 people, he estimated.
The job-loss estimate is a “minimum” Wooller said. “Otherwise you’re asking the owners to reach into their own pockets and, while some might do that, others won’t be able to afford it.”
Wednesday, 20 May 2020
Oil rises on lower U.S. stocks, firmer demand - Reuters
Oil rises on lower U.S. stocks, firmer demand - Reuters:
Oil prices climbed over 3% on Wednesday on signs of improving demand and a drawdown in U.S. crude inventories, but gains were capped by worries over the economic fallout from the coronavirus pandemic and weak refining margins.
Brent crude LCoc1 settled $1.10, or 3.2%, higher at $35.75 per barrel while the new front-month July U.S. crude futures CLc1 ended up $1.53, or 4.8%, at $33.49. Both benchmarks rose more than 5% during the session.
Last month, the May U.S. crude contract sank well below zero ahead of expiry as storage filled rapidly.
U.S. crude inventories fell by 5 million barrels last week, Energy Information Administration data showed, while stocks at Cushing, Oklahoma, delivery hub for U.S. futures dropped by 5.6 million barrels.
Oil prices climbed over 3% on Wednesday on signs of improving demand and a drawdown in U.S. crude inventories, but gains were capped by worries over the economic fallout from the coronavirus pandemic and weak refining margins.
Brent crude LCoc1 settled $1.10, or 3.2%, higher at $35.75 per barrel while the new front-month July U.S. crude futures CLc1 ended up $1.53, or 4.8%, at $33.49. Both benchmarks rose more than 5% during the session.
Last month, the May U.S. crude contract sank well below zero ahead of expiry as storage filled rapidly.
U.S. crude inventories fell by 5 million barrels last week, Energy Information Administration data showed, while stocks at Cushing, Oklahoma, delivery hub for U.S. futures dropped by 5.6 million barrels.
REFILE-Emirates pushing to take fewer Airbus A380s from final order - sources - Reuters
REFILE-Emirates pushing to take fewer Airbus A380s from final order - sources - Reuters:
Emirates, one of the world’s biggest long-haul airlines, is in talks with European planemaker Airbus over whether to take delivery of its last remaining A380 superjumbos on order, according to two industry sources.
The Dubai state-owned carrier has eight A380s scheduled for delivery before Airbus ends the programme for the world’s biggest passenger jet next year.
The sources said Emirates no longer wanted to take all eight A380s due to the coronavirus pandemic that has shattered global travel demand and which the industry expects could take years to recover from.
Bloomberg earlier reported Emirates was in talks to cancel five of the eight A380s.
Emirates, one of the world’s biggest long-haul airlines, is in talks with European planemaker Airbus over whether to take delivery of its last remaining A380 superjumbos on order, according to two industry sources.
The Dubai state-owned carrier has eight A380s scheduled for delivery before Airbus ends the programme for the world’s biggest passenger jet next year.
The sources said Emirates no longer wanted to take all eight A380s due to the coronavirus pandemic that has shattered global travel demand and which the industry expects could take years to recover from.
Bloomberg earlier reported Emirates was in talks to cancel five of the eight A380s.
#Dubai wealth fund ICD posts $6.8bn profit for 2019, up 16.9% - Arabianbusiness
Dubai wealth fund ICD posts $6.8bn profit for 2019, up 16.9% - Arabianbusiness:
Dubai's sovereign wealth fund on Wednesday announced full-year revenues of AED 228 billion ($62 billion) and a net profit of AED 25 billion ($6.8bn).
Investment Corporation of Dubai (ICD) said revenues fell 1.9 per cent, due to drop in oil and gas revenues and a marginally lower income from its transportation portfolio. The drop in revenue was offset by higher income in its banking and financial services, which includes Emirates NBD and Dubai Islamic Bank.
ICD said its banking and financial services made a record contribution to its increase in net profit, while its transportation portfolio, which includes Emirates airline, Flydubai and aircraft lessor Dubai Aerospace Enterprise, had a "strong performance" in 2019.
These increases were offset by lower contributions from oil and gas and aluminium production, it said.
Dubai's sovereign wealth fund on Wednesday announced full-year revenues of AED 228 billion ($62 billion) and a net profit of AED 25 billion ($6.8bn).
Investment Corporation of Dubai (ICD) said revenues fell 1.9 per cent, due to drop in oil and gas revenues and a marginally lower income from its transportation portfolio. The drop in revenue was offset by higher income in its banking and financial services, which includes Emirates NBD and Dubai Islamic Bank.
ICD said its banking and financial services made a record contribution to its increase in net profit, while its transportation portfolio, which includes Emirates airline, Flydubai and aircraft lessor Dubai Aerospace Enterprise, had a "strong performance" in 2019.
These increases were offset by lower contributions from oil and gas and aluminium production, it said.
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.
Oil up on lower U.S. stocks, firmer demand - Reuters
Oil up on lower U.S. stocks, firmer demand - Reuters:
Oil prices firmed on Wednesday on signs of improving demand and a drawdown in U.S. crude inventories, but worries over the economic fallout from the coronavirus pandemic and weak refining margins capped gains.
Brent crude futures LCoc1 were up $1.33, or 3.84%, at $35.98 per barrel at 1348 GMT.
U.S. West Texas Intermediate (WTI) July crude futures CLc1 were up $1.17, or 3.66%, at $33.13 a barrel.
The WTI June contract expired on Tuesday at $32.50 a barrel, up 2.1%, avoiding the chaos of last month’s May expiry, when prices sank well below zero.
Oil prices firmed on Wednesday on signs of improving demand and a drawdown in U.S. crude inventories, but worries over the economic fallout from the coronavirus pandemic and weak refining margins capped gains.
Brent crude futures LCoc1 were up $1.33, or 3.84%, at $35.98 per barrel at 1348 GMT.
U.S. West Texas Intermediate (WTI) July crude futures CLc1 were up $1.17, or 3.66%, at $33.13 a barrel.
The WTI June contract expired on Tuesday at $32.50 a barrel, up 2.1%, avoiding the chaos of last month’s May expiry, when prices sank well below zero.
#UAE News: #Dubai ENBD REIT Offers Rent Relief to Some Tenants - Bloomberg
UAE News: Dubai ENBD REIT Offers Rent Relief to Some Tenants - Bloomberg:
ENBD REIT Plc, the real estate investment trust managed by Dubai’s biggest bank, joined efforts to offer relief to clients impacted by the coronavirus pandemic in the Middle East business hub.
Tenants can apply for rent-free periods, postponement of checks and rescheduling of payment plans, according to a statement.
“Our priority right now is identifying those in genuine need of financial assistance to weather the sustained impact of Covid-19 across businesses in Dubai,” said Anthony Taylor, head of real estate at Emirates NBD Asset Management Ltd. “While we are in a strong financial position having met our objectives to build resilience into the portfolio, we are not in a position to offer blanket relief to all tenants.”
ENBD REIT is in a “healthy” financial position after taking cost-cutting measures including negotiating down several service contracts, it said.
ENBD REIT Plc, the real estate investment trust managed by Dubai’s biggest bank, joined efforts to offer relief to clients impacted by the coronavirus pandemic in the Middle East business hub.
Tenants can apply for rent-free periods, postponement of checks and rescheduling of payment plans, according to a statement.
“Our priority right now is identifying those in genuine need of financial assistance to weather the sustained impact of Covid-19 across businesses in Dubai,” said Anthony Taylor, head of real estate at Emirates NBD Asset Management Ltd. “While we are in a strong financial position having met our objectives to build resilience into the portfolio, we are not in a position to offer blanket relief to all tenants.”
ENBD REIT is in a “healthy” financial position after taking cost-cutting measures including negotiating down several service contracts, it said.
Oil Prices Surge One Month After Hitting Zero - Bloomberg
Oil Prices Surge One Month After Hitting Zero - Bloomberg:
For the world’s most important commodity, there’s never been a month like it.
Just a few weeks ago, crude oil was akin to industrial waste in some parts of the world, something you had to pay people to take away. Now prices are surging, up about 70% in New York since the start of May.
The turnaround, which has been welcomed from Riyadh and Moscow to the White House, came quicker than most people were expecting but wasn’t easy. Painful OPEC+ production cuts and the world’s risky first steps out of coronavirus lockdown have lifted the market out of the abyss of negative prices, but either of them could falter.
“I think the worst is behind,” said Pierre Andurand, chief investment officer and founder of Andurand Capital Management LLP. “OPEC+ cut enough, and demand will slowly, gradually recover.”
It was the afternoon of April 20 when panicked sellers drove the price of the U.S. crude benchmark below zero for the first time in history. In one of the most extraordinary 20-minute spans in the history of financial markets, West Texas Intermediate fell as low as minus $40.32 a barrel, stunning everyone from veteran brokers to retail investors.
For the world’s most important commodity, there’s never been a month like it.
Just a few weeks ago, crude oil was akin to industrial waste in some parts of the world, something you had to pay people to take away. Now prices are surging, up about 70% in New York since the start of May.
The turnaround, which has been welcomed from Riyadh and Moscow to the White House, came quicker than most people were expecting but wasn’t easy. Painful OPEC+ production cuts and the world’s risky first steps out of coronavirus lockdown have lifted the market out of the abyss of negative prices, but either of them could falter.
“I think the worst is behind,” said Pierre Andurand, chief investment officer and founder of Andurand Capital Management LLP. “OPEC+ cut enough, and demand will slowly, gradually recover.”
It was the afternoon of April 20 when panicked sellers drove the price of the U.S. crude benchmark below zero for the first time in history. In one of the most extraordinary 20-minute spans in the history of financial markets, West Texas Intermediate fell as low as minus $40.32 a barrel, stunning everyone from veteran brokers to retail investors.
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.
#Qatar offers #Turkey relief by tripling FX swap line to $15 billion - Reuters
Qatar offers Turkey relief by tripling FX swap line to $15 billion - Reuters:
Turkey secured a tripling of its currency-swap agreement with Qatar to $15 billion, the central bank said on Wednesday, providing some much-needed foreign funding to reinforce its depleted reserves and help steady the Turkish lira.
Ankara had been urgently seeking access to funds from Doha and elsewhere to head off a potential currency spiral, and analysts say tens of billions of dollars might be needed. A senior Turkish official told Reuters talks are continuing.
Turkey’s central bank said the deal with its Qatari counterpart - which raised the existing FX limit from the equivalent of $5 billion - would support financial stability and trade.
The lira touched a historic low earlier this month as investors fretted over a drop in the central bank’s net FX reserves and the country’s relatively high foreign debt obligations, accelerating Ankara’s overseas funding search.
Turkey secured a tripling of its currency-swap agreement with Qatar to $15 billion, the central bank said on Wednesday, providing some much-needed foreign funding to reinforce its depleted reserves and help steady the Turkish lira.
Ankara had been urgently seeking access to funds from Doha and elsewhere to head off a potential currency spiral, and analysts say tens of billions of dollars might be needed. A senior Turkish official told Reuters talks are continuing.
Turkey’s central bank said the deal with its Qatari counterpart - which raised the existing FX limit from the equivalent of $5 billion - would support financial stability and trade.
The lira touched a historic low earlier this month as investors fretted over a drop in the central bank’s net FX reserves and the country’s relatively high foreign debt obligations, accelerating Ankara’s overseas funding search.
Oil steady as economic worries offset signs of firmer demand - Reuters
Oil steady as economic worries offset signs of firmer demand - Reuters:
Oil prices held steady on Wednesday despite signs of improving demand and a drawdown in U.S. crude inventories, as worries over the economic fallout from the coronavirus pandemic capped gains.
Brent crude futures for July delivery LCoc1 were up 10 cents, or 0.3%, at $34.75 per barrel at 0626 GMT.
U.S. West Texas Intermediate (WTI) crude futures for July CLc1 were down 2 cents at $31.94 a barrel after closing up 1% in the previous session.
The June contract expired on Tuesday at $32.50 a barrel, up 2.1%, as the WTI futures market avoided the chaos of last month’s May expiry, when prices sank below zero.
Oil prices held steady on Wednesday despite signs of improving demand and a drawdown in U.S. crude inventories, as worries over the economic fallout from the coronavirus pandemic capped gains.
Brent crude futures for July delivery LCoc1 were up 10 cents, or 0.3%, at $34.75 per barrel at 0626 GMT.
U.S. West Texas Intermediate (WTI) crude futures for July CLc1 were down 2 cents at $31.94 a barrel after closing up 1% in the previous session.
The June contract expired on Tuesday at $32.50 a barrel, up 2.1%, as the WTI futures market avoided the chaos of last month’s May expiry, when prices sank below zero.