US crude imports surge as Saudi oil armada arrives | Financial Times:
US oil imports surged last week, with almost half of the extra crude arriving from Saudi Arabia, as foreign producers took market share from the struggling American shale patch.
The federal Energy Information Administration said on Thursday that Saudi supplies to the US jumped by almost 1m barrels a day during the week ending May 22, to 1.6m b/d, while commercial imports from all countries soared to 7.2m b/d, almost 40 per cent more than the week before.
“The armada of ships bringing Saudi crude to the US has arrived,” said Amrita Sen, a director at Energy Aspects, a consultancy.
Thursday 28 May 2020
BlackRock Lures Top Asset Managers, Wealth Funds After PNC Exit - Bloomberg
BlackRock Lures Top Asset Managers, Wealth Funds After PNC Exit - Bloomberg:
BlackRock Inc. attracted some of the world’s largest institutional investors and sovereign funds when a major stake was sold this month, illustrating chief Larry Fink’s connections with deep sources of capital in the U.S., Middle East and Asia.
Existing shareholders Wellington Management, Capital Group Cos. and Fidelity Investments were among those that bought shares when PNC Financial Services Group Inc. sold a $14 billion BlackRock stake, according to people familiar with the situation. Norway’s $1 trillion wealth fund and Singapore state investment firm Temasek Holdings Pte also increased their holdings, they said, asking not to be identified as the matter is private.
Fink’s extensive network in the Middle East was also on display, with at least four state investment vehicles from the region snaring a part of the stake sale. Abu Dhabi’s Mubadala Investment Co., the Kuwait Investment Authority, Qatar Investment Authority and Saudi Arabia’s Public Investment Fund all took part in the offering, according to the people.
The BlackRock co-founder has been a regular speaker at events organized by Saudi Arabia’s wealth fund. In April last year, Fink appeared at a Riyadh conference alongside the finance ministers of Saudi Arabia, Kuwait and Bahrain. Two months earlier, he was in Abu Dhabi for a meeting with ruler Mohammed bin Zayed Al Nahyan and signed a deal to invest in the emirate’s oil infrastructure.
BlackRock Inc. attracted some of the world’s largest institutional investors and sovereign funds when a major stake was sold this month, illustrating chief Larry Fink’s connections with deep sources of capital in the U.S., Middle East and Asia.
Existing shareholders Wellington Management, Capital Group Cos. and Fidelity Investments were among those that bought shares when PNC Financial Services Group Inc. sold a $14 billion BlackRock stake, according to people familiar with the situation. Norway’s $1 trillion wealth fund and Singapore state investment firm Temasek Holdings Pte also increased their holdings, they said, asking not to be identified as the matter is private.
Fink’s extensive network in the Middle East was also on display, with at least four state investment vehicles from the region snaring a part of the stake sale. Abu Dhabi’s Mubadala Investment Co., the Kuwait Investment Authority, Qatar Investment Authority and Saudi Arabia’s Public Investment Fund all took part in the offering, according to the people.
The BlackRock co-founder has been a regular speaker at events organized by Saudi Arabia’s wealth fund. In April last year, Fink appeared at a Riyadh conference alongside the finance ministers of Saudi Arabia, Kuwait and Bahrain. Two months earlier, he was in Abu Dhabi for a meeting with ruler Mohammed bin Zayed Al Nahyan and signed a deal to invest in the emirate’s oil infrastructure.
Morgan Stanley not given advisory role on Aramco pipeline sale: sources - Reuters
Morgan Stanley not given advisory role on Aramco pipeline sale: sources - Reuters:
Morgan Stanley (MS.N) has not been given an advisory role on the potential sale of a stake in Saudi Aramco’s pipeline business, a deal worth over $10 billion, two sources told Reuters.
The U.S. investment bank, which has previously advised the world’s largest oil company, was originally looking to be part of the advisory group on any deal, the sources added.
However, Aramco has mandated JP Morgan (JPM.N) and Japan’s MUFG (8306.T) to advise it on the deal, which is still in its early stages but would provide the company with cash at a time of low oil prices caused by the coronavirus crisis, the sources said.
Morgan Stanley, JP Morgan and MUFG all declined to comment, while Aramco did not immediately respond to a request for comment on plans for the pipeline business.
Morgan Stanley (MS.N) has not been given an advisory role on the potential sale of a stake in Saudi Aramco’s pipeline business, a deal worth over $10 billion, two sources told Reuters.
The U.S. investment bank, which has previously advised the world’s largest oil company, was originally looking to be part of the advisory group on any deal, the sources added.
However, Aramco has mandated JP Morgan (JPM.N) and Japan’s MUFG (8306.T) to advise it on the deal, which is still in its early stages but would provide the company with cash at a time of low oil prices caused by the coronavirus crisis, the sources said.
Morgan Stanley, JP Morgan and MUFG all declined to comment, while Aramco did not immediately respond to a request for comment on plans for the pipeline business.
Oil rises as higher U.S. refinery rates offsets surprise crude build - Reuters
Oil rises as higher U.S. refinery rates offsets surprise crude build - Reuters:
Oil futures rose about 2% on Thursday as a steady improvement in U.S. refining activity offset a surprise build in crude and diesel inventories and on worries that China’s new Hong Kong security law could result in trade sanctions.
Brent for July rose 55 cents, or 1.6%, to settle at $35.29 a barrel on its second to last day as the front-month. U.S. West Texas Intermediate (WTI) crude rose 90 cents, or 2.7%, to settle at $33.71.
That move in U.S. crude narrowed Brent’s premium over WTI to its lowest since mid-April.
Oil futures rose about 2% on Thursday as a steady improvement in U.S. refining activity offset a surprise build in crude and diesel inventories and on worries that China’s new Hong Kong security law could result in trade sanctions.
Brent for July rose 55 cents, or 1.6%, to settle at $35.29 a barrel on its second to last day as the front-month. U.S. West Texas Intermediate (WTI) crude rose 90 cents, or 2.7%, to settle at $33.71.
That move in U.S. crude narrowed Brent’s premium over WTI to its lowest since mid-April.
European, Middle Eastern & African Stocks - Bloomberg #UAE 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.
Banks in #Saudi, emerging markets will see spike in bad loans- S&P | ZAWYA MENA Edition
Banks in Saudi, emerging markets will see spike in bad loans- S&P | ZAWYA MENA Edition:
Banks in Saudi Arabia and more than a dozen other countries are likely going to see their profits deteriorate and bad loans spike this year, as emerging market (EM) economies are heading for “the worst in decades,” S&P said.
About one-third of lenders that the ratings agency tracks in15 emerging markets, which include the Gulf state - one of the largest Arab economies - now have a negative outlook as a result of the coronavirus pandemic.
Bad loans are forecast to go up by half across the region or probably double in some economies. Lenders that have huge exposure to small businesses, as well as real estate and retail will be among those that will be heavily impacted.
“We expect asset quality to deteriorate across the board, with NPLs (non-performing loans) increasing by more than 50 percent on average and potentially doubling in some countries,” the ratings agency said on Thursday.
Banks in Saudi Arabia and more than a dozen other countries are likely going to see their profits deteriorate and bad loans spike this year, as emerging market (EM) economies are heading for “the worst in decades,” S&P said.
About one-third of lenders that the ratings agency tracks in15 emerging markets, which include the Gulf state - one of the largest Arab economies - now have a negative outlook as a result of the coronavirus pandemic.
Bad loans are forecast to go up by half across the region or probably double in some economies. Lenders that have huge exposure to small businesses, as well as real estate and retail will be among those that will be heavily impacted.
“We expect asset quality to deteriorate across the board, with NPLs (non-performing loans) increasing by more than 50 percent on average and potentially doubling in some countries,” the ratings agency said on Thursday.
#AbuDhabi state fund in talks to invest $1 billion in Jio Platforms: sources - Reuters
Abu Dhabi state fund in talks to invest $1 billion in Jio Platforms: sources - Reuters:
Abu Dhabi state fund Mubadala Investment Company is in talks to invest about $1 billion in Reliance Industries’ (RELI.NS) digital unit Jio platforms, three sources said on Thursday.
Jio Platforms, which houses music and movie apps as well a Reliance’s telecoms venture Jio Infocomm, has secured a massive $10 billion from investors including Facebook Inc (FB.O) within a month.
Reliance did not immediately respond to a request for comment.
“Clearly Jio’s platform is attracting a wide range of world-class investors, given its enormous potential to serve one of the world’s largest marketplaces,” Mubadala said in an email to Reuters.
Abu Dhabi state fund Mubadala Investment Company is in talks to invest about $1 billion in Reliance Industries’ (RELI.NS) digital unit Jio platforms, three sources said on Thursday.
Jio Platforms, which houses music and movie apps as well a Reliance’s telecoms venture Jio Infocomm, has secured a massive $10 billion from investors including Facebook Inc (FB.O) within a month.
Reliance did not immediately respond to a request for comment.
“Clearly Jio’s platform is attracting a wide range of world-class investors, given its enormous potential to serve one of the world’s largest marketplaces,” Mubadala said in an email to Reuters.
Lenders to Shetty’s Pharma Firm Are Said to Start Debt Talks - Bloomberg
Lenders to Shetty’s Pharma Firm Are Said to Start Debt Talks - Bloomberg:
Lenders to Neopharma, the pharmaceuticals business founded by Bavaguthu Raghuram Shetty, are set to kick off talks to restructure 1 billion dirhams ($272 million) of debt, according to people with knowledge of the matter.
Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Dubai Islamic Bank PJSC, Emirates Islamic Bank PJSC, India’s Bank of Baroda and Bahrain’s First Energy Bank BSC will meet on Thursday to discuss a proposal to restructure the debt, the people said, asking not to be identified because the talks are private. Creditors will also consider plans to bring in a new strategic investor to Neopharma to keep the business operating, the people said.
Abu Dhabi-based Neopharma, which is linked to NMC Health Plc through Shetty, has been pulled into the scandal surrounding the embattled hospital operator. A report by short seller Muddy Waters Capital LLC alleged that NMC had overpaid for assets, inflated cash balances and understated debt. NMC is being run by administrators Alvarez & Marsal Inc. after more than $4 billion of undisclosed borrowings were discovered.
Lenders to Neopharma, the pharmaceuticals business founded by Bavaguthu Raghuram Shetty, are set to kick off talks to restructure 1 billion dirhams ($272 million) of debt, according to people with knowledge of the matter.
Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Dubai Islamic Bank PJSC, Emirates Islamic Bank PJSC, India’s Bank of Baroda and Bahrain’s First Energy Bank BSC will meet on Thursday to discuss a proposal to restructure the debt, the people said, asking not to be identified because the talks are private. Creditors will also consider plans to bring in a new strategic investor to Neopharma to keep the business operating, the people said.
Abu Dhabi-based Neopharma, which is linked to NMC Health Plc through Shetty, has been pulled into the scandal surrounding the embattled hospital operator. A report by short seller Muddy Waters Capital LLC alleged that NMC had overpaid for assets, inflated cash balances and understated debt. NMC is being run by administrators Alvarez & Marsal Inc. after more than $4 billion of undisclosed borrowings were discovered.
Bank account freezes hit other parts of BR Shetty's empire - The National
Bank account freezes hit other parts of BR Shetty's empire - The National:
The fallout from the collapse of NMC Healthcare and the subsequent freezing of accounts of the company’s founder, BR Shetty, is having a knock-on effect on other parts of his business empire, leaving him unable to pay staff at his Neopharma business and other companies.
In a telephone call with The National, Mr Shetty said he is “really sorry” about the situation that banks are in as a result of NMC Health’s collapse, but added that “without proof, they have taken this action” to freeze his accounts. Banks in the UAE alone have reported an exposure of at least Dh7.5 billion to NMC Health and some lenders have already begun writing down the value of these.
“As a result, all my other companies are suffering,” he said. “Even Neopharma, the salary I can’t pay because of the blockage of the funds.”
“I have not taken one dollar” from NMC Health, which was placed into administration in April with debts of $6.6bn (Dh24.2bn) owed to more than 80 lenders, Mr Shetty insisted.
The fallout from the collapse of NMC Healthcare and the subsequent freezing of accounts of the company’s founder, BR Shetty, is having a knock-on effect on other parts of his business empire, leaving him unable to pay staff at his Neopharma business and other companies.
In a telephone call with The National, Mr Shetty said he is “really sorry” about the situation that banks are in as a result of NMC Health’s collapse, but added that “without proof, they have taken this action” to freeze his accounts. Banks in the UAE alone have reported an exposure of at least Dh7.5 billion to NMC Health and some lenders have already begun writing down the value of these.
“As a result, all my other companies are suffering,” he said. “Even Neopharma, the salary I can’t pay because of the blockage of the funds.”
“I have not taken one dollar” from NMC Health, which was placed into administration in April with debts of $6.6bn (Dh24.2bn) owed to more than 80 lenders, Mr Shetty insisted.
Covid-19 job losses will be replaced as entrepreneurs emerge, says Shehab Gargash - Arabianbusiness
Covid-19 job losses will be replaced as entrepreneurs emerge, says Shehab Gargash - Arabianbusiness:
Widespread job losses in the UAE and GCC caused by the economic impact of the Covid-19 pandemic will eventually be replaced, and a new spirit of entrepreneurism may emerge, according to Gargash Group managing director and CEO Shehab Gargash.
Gargash is also the founding chairman of Daman Investments, a non-banking financial service company based in Dubai that has been operating since 1998.
In an interview with Arabian Business, Gargash said that “in the longer term, jobs will be replaced, rather than lost”.
Widespread job losses in the UAE and GCC caused by the economic impact of the Covid-19 pandemic will eventually be replaced, and a new spirit of entrepreneurism may emerge, according to Gargash Group managing director and CEO Shehab Gargash.
Gargash is also the founding chairman of Daman Investments, a non-banking financial service company based in Dubai that has been operating since 1998.
In an interview with Arabian Business, Gargash said that “in the longer term, jobs will be replaced, rather than lost”.
European, Middle Eastern & African Stocks - Bloomberg #UAE 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 falls as surprise U.S. stock build douses demand recovery hopes - Reuters
Oil falls as surprise U.S. stock build douses demand recovery hopes - Reuters:
Oil prices plunged on Thursday after U.S. industry data showed a surprise steep build in crude oil inventories, dampening hopes of a smooth recovery in demand as some countries begin to ease their way out of coronavirus lockdowns.
The decline in oil benchmarks extended losses from Wednesday over uncertainty about Russia’s commitment to deep output cuts ahead of a June 9 meeting of the Organization of the Petroleum Exporting Countries and its allies, a grouping dubbed OPEC+.
U.S. West Texas Intermediate (WTI) crude futures were down 3%, or 98 cents, at $31.83 a barrel at 0709 GMT. The U.S. futures slipped earlier as much as 5% to a low of $31.14.
Brent crude futures were down 2%, or 71 cents at $34.03 per barrel, after dropping to as low as $33.63.
Oil prices plunged on Thursday after U.S. industry data showed a surprise steep build in crude oil inventories, dampening hopes of a smooth recovery in demand as some countries begin to ease their way out of coronavirus lockdowns.
The decline in oil benchmarks extended losses from Wednesday over uncertainty about Russia’s commitment to deep output cuts ahead of a June 9 meeting of the Organization of the Petroleum Exporting Countries and its allies, a grouping dubbed OPEC+.
U.S. West Texas Intermediate (WTI) crude futures were down 3%, or 98 cents, at $31.83 a barrel at 0709 GMT. The U.S. futures slipped earlier as much as 5% to a low of $31.14.
Brent crude futures were down 2%, or 71 cents at $34.03 per barrel, after dropping to as low as $33.63.
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