Covid Stimulus: Saudi Arabia Extends Some Measure for Businesses - Bloomberg:
Saudi Arabia is extending some private sector stimulus measures that would have expired this month, with the government saying it’s keen to support businesses that are struggling to recover from the effects of the coronavirus pandemic.
Among the initiatives extended is a pledge to cover 60% of some Saudi salaries in the private sector through a government unemployment insurance program called Saned. The announcement came the day after the kingdom implemented a tripling of its value added tax to 15%, a measure that many economists expect to hurt businesses and consumption.
Facing a double crisis from the pandemic and oil market turmoil, the economy of the world’s biggest crude exporter is expected to contract 6.8% overall this year, the most in over three decades, according to the International Monetary Fund. The fund forecasts a return to 3.1% growth in 2021.
Saudi officials prolonged the stimulus programs in order to “reduce the financial and economic effects of the coronavirus pandemic on individuals, investors and private sector institutions,” according to a statement published by the official Saudi Press Agency.
Thursday 2 July 2020
Oil up more than 2% on U.S. jobs data but virus fears cap gains - Reuters
Oil up more than 2% on U.S. jobs data but virus fears cap gains - Reuters:
Oil futures gained more than 2% on Thursday, supported by a drop in U.S. unemployment and a drawdown in crude inventories, but a resurgence in U.S. coronavirus infections fanned concerns that economic activity will weaken in coming weeks.
New COVID-19 cases in the United States rose by nearly 50,000 on Wednesday, the biggest one-day increase since the start of the pandemic.
Numerous states are advising citizens to restrict movements and closing businesses and restaurants again, which is expected to hamper job growth.
Brent crude LCOc1 futures settled at $43.14 a barrel, rising $1.11, or 2.6%. U.S. West Texas Intermediate (WTI) crude CLc1 futures settled at $40.65 a barrel, up 83 cents, or 2.1%.
Oil futures gained more than 2% on Thursday, supported by a drop in U.S. unemployment and a drawdown in crude inventories, but a resurgence in U.S. coronavirus infections fanned concerns that economic activity will weaken in coming weeks.
New COVID-19 cases in the United States rose by nearly 50,000 on Wednesday, the biggest one-day increase since the start of the pandemic.
Numerous states are advising citizens to restrict movements and closing businesses and restaurants again, which is expected to hamper job growth.
Brent crude LCOc1 futures settled at $43.14 a barrel, rising $1.11, or 2.6%. U.S. West Texas Intermediate (WTI) crude CLc1 futures settled at $40.65 a barrel, up 83 cents, or 2.1%.
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.
#Bahrain borrowing 'critical' for currency peg after FX reserves drop - Moody's - Reuters
Bahrain borrowing 'critical' for currency peg after FX reserves drop - Moody's - Reuters:
Bahrain will need to attract additional capital this year, including through borrowing to sustain its currency peg, after a huge drop in foreign reserves due to low oil prices, ratings agency Moody’s said.
One of the financially weakest countries in the Gulf, Bahrain’s foreign reserves more than halved between February and March, and then dropped to 290 million Bahraini dinars ($768.82 million) in April, central bank data showed.
That was their lowest level since 1990, Moody’s said.
Reserves picked up in May, rising to $1.8 billion, after Bahrain issued $2 billion in bonds.
Bahrain will need to attract additional capital this year, including through borrowing to sustain its currency peg, after a huge drop in foreign reserves due to low oil prices, ratings agency Moody’s said.
One of the financially weakest countries in the Gulf, Bahrain’s foreign reserves more than halved between February and March, and then dropped to 290 million Bahraini dinars ($768.82 million) in April, central bank data showed.
That was their lowest level since 1990, Moody’s said.
Reserves picked up in May, rising to $1.8 billion, after Bahrain issued $2 billion in bonds.
Oil prices gain on fall in U.S. crude stockpiles - Reuters
Oil prices gain on fall in U.S. crude stockpiles - Reuters:
Oil prices rose on Thursday as a sharp drop in oil stockpiles outweighed concerns that a spike in U.S. coronavirus infections and revived lockdown measures in California could stall a recovery in fuel demand.
Brent crude LCOc1 futures were up 21 cents or 0.5% at $42.24 a barrel by 1114 GMT, after rising 1.8% in the previous session.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 20 cents, or 0.5%, to $40.02 a barrel, adding to a 1.4% rise on Wednesday.
U.S. crude inventories USOILC=ECI fell 7.2 million barrels from a record high last week, far more than analysts had expected, U.S. Energy Information Administration data showed, as refiners ramped up production and imports eased.
Oil prices rose on Thursday as a sharp drop in oil stockpiles outweighed concerns that a spike in U.S. coronavirus infections and revived lockdown measures in California could stall a recovery in fuel demand.
Brent crude LCOc1 futures were up 21 cents or 0.5% at $42.24 a barrel by 1114 GMT, after rising 1.8% in the previous session.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 20 cents, or 0.5%, to $40.02 a barrel, adding to a 1.4% rise on Wednesday.
U.S. crude inventories USOILC=ECI fell 7.2 million barrels from a record high last week, far more than analysts had expected, U.S. Energy Information Administration data showed, as refiners ramped up production and imports eased.
#SaudiArabia extends economic measures to mitigate pandemic impact: agency - Reuters
Saudi Arabia extends economic measures to mitigate pandemic impact: agency - Reuters:
Saudi Arabia extended for an additional period several government initiatives to support the private sector and investors in mitigating the impact of the coronavirus outbreak, state news agency SPA reported on Thursday, citing a decision by King Salman.
Saudi Arabia extended for an additional period several government initiatives to support the private sector and investors in mitigating the impact of the coronavirus outbreak, state news agency SPA reported on Thursday, citing a decision by King Salman.
New M&A Wave Seen for Gulf Banks Trying to Outrun Virus Slowdown - Bloomberg
New M&A Wave Seen for Gulf Banks Trying to Outrun Virus Slowdown - Bloomberg:
The coronavirus-induced economic slowdown is prompting a new wave of consolidation talk among banks in the Persian Gulf.
In less than a week, two potential tie-ups have been announced, adding momentum to an already unprecedented merger and acquisition spree. Saudi Arabia’s biggest lender National Commercial Bank kicked off the most recent wave with an offer to buy rival Samba Financial Group in what could be the world’s biggest banking takeover this year. Days later, two Qatari lenders said they’d started initial talks to combine.
“Banks are struggling to deliver top-line growth in an environment where low oil prices are crimping public spending and denting private-sector confidence, and where low interest rates are keeping margins in check,” said Rahul Shah, the Dubai-based head of financials equity research at Tellimer Ltd. The Saudi deal is also being driven the desire to create a regional champion and other lenders “may be forced to respond.”
The region is also heavily over-banked and lenders are being compelled to do deals to remain competitive. There are more than 70 listed banks in the six-nation Gulf Cooperation Council, according to data compiled by Bloomberg, catering to a population of about 50 million people.
The coronavirus-induced economic slowdown is prompting a new wave of consolidation talk among banks in the Persian Gulf.
In less than a week, two potential tie-ups have been announced, adding momentum to an already unprecedented merger and acquisition spree. Saudi Arabia’s biggest lender National Commercial Bank kicked off the most recent wave with an offer to buy rival Samba Financial Group in what could be the world’s biggest banking takeover this year. Days later, two Qatari lenders said they’d started initial talks to combine.
“Banks are struggling to deliver top-line growth in an environment where low oil prices are crimping public spending and denting private-sector confidence, and where low interest rates are keeping margins in check,” said Rahul Shah, the Dubai-based head of financials equity research at Tellimer Ltd. The Saudi deal is also being driven the desire to create a regional champion and other lenders “may be forced to respond.”
#Dubai Aerospace Enterprise mulls more rent deferrals amid pandemic impact - Arabianbusiness
Dubai Aerospace Enterprise mulls more rent deferrals amid pandemic impact - Arabianbusiness:
Aircraft leasing company Dubai Aerospace Enterprise (DAE) said it has granted 29 rent deferral requests totalling aggregate rent of approximately 12 percent of annual reported revenue amid the Covid-19 pandemic.
In a statement outlining its current position, DAE said that it is mulling another 28 rent deferral requests, totalling aggregate rent of 6 percent of annual reported revenue.
According to DAE, its owned, managed and mandated-to-manage fleet has remained stable at over 400 aircraft.
Aircraft leasing company Dubai Aerospace Enterprise (DAE) said it has granted 29 rent deferral requests totalling aggregate rent of approximately 12 percent of annual reported revenue amid the Covid-19 pandemic.
In a statement outlining its current position, DAE said that it is mulling another 28 rent deferral requests, totalling aggregate rent of 6 percent of annual reported revenue.
According to DAE, its owned, managed and mandated-to-manage fleet has remained stable at over 400 aircraft.
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.
MIDEAST STOCKS-Most major Gulf markets gains; Aramex drags #Dubai lower - Agricultural Commodities - Reuters
MIDEAST STOCKS-Most major Gulf markets gains; Aramex drags Dubai lower - Agricultural Commodities - Reuters:
Most major Gulf stock markets opened higher on Thursday, with Saudi Arabia leading the gains on back of its financials, while Dubai bucked the trend.
Saudi Arabia’s benchmark index rose 0.6%, led by a 1.1% increase in Al Rajhi Bank and a 1% gain in petrochemical maker Saudi Basic Industries.
Elsewhere, National Commercial Bank (NCB) traded 0.3% up.
NCB has completed the issuance of additional tier 1 sukuk denominated in Saudi riyals by way of a private placement.
The issuance amount is 4.2 billion riyals ($1.12 billion), NCB said in a statement on Tadawul.
Most major Gulf stock markets opened higher on Thursday, with Saudi Arabia leading the gains on back of its financials, while Dubai bucked the trend.
Saudi Arabia’s benchmark index rose 0.6%, led by a 1.1% increase in Al Rajhi Bank and a 1% gain in petrochemical maker Saudi Basic Industries.
Elsewhere, National Commercial Bank (NCB) traded 0.3% up.
NCB has completed the issuance of additional tier 1 sukuk denominated in Saudi riyals by way of a private placement.
The issuance amount is 4.2 billion riyals ($1.12 billion), NCB said in a statement on Tadawul.
Oil prices gain on fall in crude stockpiles - Reuters
Oil prices gain on fall in crude stockpiles - Reuters:
Oil prices rose on Thursday, reversing early losses, as a sharp drop in oil stockpiles outweighed concerns that a spike in U.S. coronavirus infections and revived lockdown measures in California could stall a recovery in fuel demand.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 25 cents, or 0.6%, to $40.07 a barrel by 0632 GMT, adding to a 1.4% rise from Wednesday.
Brent crude LCOc1 futures was up 25 cents or 0.6% at $42.28 a barrel, after rising 1.8% in the previous session.
U.S. Energy Information Administration data showed U.S. crude inventories USOILC=ECI fell 7.2 million barrels from a record high last week, far more than analysts had expected, as refiners ramped up production and imports eased.
Oil prices rose on Thursday, reversing early losses, as a sharp drop in oil stockpiles outweighed concerns that a spike in U.S. coronavirus infections and revived lockdown measures in California could stall a recovery in fuel demand.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 25 cents, or 0.6%, to $40.07 a barrel by 0632 GMT, adding to a 1.4% rise from Wednesday.
Brent crude LCOc1 futures was up 25 cents or 0.6% at $42.28 a barrel, after rising 1.8% in the previous session.
U.S. Energy Information Administration data showed U.S. crude inventories USOILC=ECI fell 7.2 million barrels from a record high last week, far more than analysts had expected, as refiners ramped up production and imports eased.
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