The Case Against Emirates Etihad Merger:
Emirates, the airline owned by Dubai government and Etihad, the airline owned by Abu Dhabi government have always attracted speculation that they would merge. Economics and the thought of creating an airline behemoth dwarfing Middle Eastern rivals Qatar Airways and Turkish Airlines, seems the right thing to do for both the airlines. But the ground reality is vastly different, and merger could be the last option for both airlines’ owners.
In favor of the merger, experts might argue to use Abu Dhabi airport for US flights as the airport has a US pre-clearance facility and Dubai could cater to other markets. Even better to jointly develop the Dubai DWC airport which is in-between both Dubai and Abu Dhabi.
Here are some of the reasons why Emirates-Etihad merger is almost impossible to happen.
Monday, 27 July 2020
Lebanon Credit Rating Cut to Lowest Grade by Moody's - Bloomberg
Lebanon Credit Rating Cut to Lowest Grade by Moody's - Bloomberg:
Lebanon had its rating cut to the lowest grade by Moody’s Investors Service, which said that bond investors will likely suffer major losses on their holdings as the government struggles to secure aid to ease a crippling financial crisis.
Moody’s lowered Lebanon’s credit score to C from Ca, the same level as crisis-ravaged Venezuela. It reflects Moody’s “assessment that the losses incurred by bondholders through Lebanon’s current default are likely to exceed 65%,” the agency said in a statement.
Lebanon, which has already defaulted on billions of dollars in debt this year, is struggling to secure an International Monetary Fund loan deal amid sharp domestic divisions over how to tally losses in the financial system.
“The collapse of the currency in the parallel market and the concomitant surge in inflation fuel a highly unstable environment,” Moody’s said. “In the absence of key steps toward plausible economic and fiscal policy reform, official external funding support to accompany a government debt restructuring is not forthcoming.”
Lebanon had its rating cut to the lowest grade by Moody’s Investors Service, which said that bond investors will likely suffer major losses on their holdings as the government struggles to secure aid to ease a crippling financial crisis.
Moody’s lowered Lebanon’s credit score to C from Ca, the same level as crisis-ravaged Venezuela. It reflects Moody’s “assessment that the losses incurred by bondholders through Lebanon’s current default are likely to exceed 65%,” the agency said in a statement.
Lebanon, which has already defaulted on billions of dollars in debt this year, is struggling to secure an International Monetary Fund loan deal amid sharp domestic divisions over how to tally losses in the financial system.
“The collapse of the currency in the parallel market and the concomitant surge in inflation fuel a highly unstable environment,” Moody’s said. “In the absence of key steps toward plausible economic and fiscal policy reform, official external funding support to accompany a government debt restructuring is not forthcoming.”
Oil rises on hopes for U.S. stimulus measure - Reuters
Oil rises on hopes for U.S. stimulus measure - Reuters:
Oil prices rose on Monday on hopes that stimulus efforts will help revitalize the U.S. economy, but the gains were capped by rising coronavirus cases and tensions between Washington and Beijing.
Brent crude LCOc1 rose 7 cents to settle at $43.41 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 rose 31 cents to settle at $41.60 a barrel.
U.S. Senate Republicans were expected to unveil a new $1 trillion coronavirus aid package on Monday afternoon.
“If we can put more money into the pockets of consumers, they’re going to spend it on goods and services,” said Phil Flynn, senior analyst at Price Futures group in Chicago. “That should lead to more gasoline demand, more travel and more shopping.”
Oil prices rose on Monday on hopes that stimulus efforts will help revitalize the U.S. economy, but the gains were capped by rising coronavirus cases and tensions between Washington and Beijing.
Brent crude LCOc1 rose 7 cents to settle at $43.41 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 rose 31 cents to settle at $41.60 a barrel.
U.S. Senate Republicans were expected to unveil a new $1 trillion coronavirus aid package on Monday afternoon.
“If we can put more money into the pockets of consumers, they’re going to spend it on goods and services,” said Phil Flynn, senior analyst at Price Futures group in Chicago. “That should lead to more gasoline demand, more travel and more shopping.”
#Dubai Financial Markets reports 21% growth in first half profit as it appoints new chief executive - The National
Dubai Financial Markets reports 21% growth in first half profit as it appoints new chief executive - The National:
DFM company, the operator of the Dubai Financial Market, said net profit rose 21 per cent in the first half of the year as it benefitted from higher trading volumes during periods of market volatility.
Net profit for the six-month period rose 21 per cent to Dh78.9m, and revenue rose 11 per cent to Dh181.1m.
“During the first six months of 2020, the DFM’s trading value has exceeded Dh31 billion, a 25 per cent increase compared to the corresponding period of 2019,” the company’s chairman, Essa Kazim, said.
He also said the market’s performance in the second quarter indicated its resilience, as the DFM general index rebounded by 16 per cent, “restoring a considerable percentage of its previous decline”.
DFM company, the operator of the Dubai Financial Market, said net profit rose 21 per cent in the first half of the year as it benefitted from higher trading volumes during periods of market volatility.
Net profit for the six-month period rose 21 per cent to Dh78.9m, and revenue rose 11 per cent to Dh181.1m.
“During the first six months of 2020, the DFM’s trading value has exceeded Dh31 billion, a 25 per cent increase compared to the corresponding period of 2019,” the company’s chairman, Essa Kazim, said.
He also said the market’s performance in the second quarter indicated its resilience, as the DFM general index rebounded by 16 per cent, “restoring a considerable percentage of its previous decline”.
Damac, Arabtec stock rallies keep #UAE markets buzzing | Markets – Gulf News
Damac, Arabtec stock rallies keep UAE markets buzzing | Markets – Gulf News:
Major UAE real estate sector stocks are on a tear with Arabtec rallying 14.85 per cent and Damac gaining 8.25 per cent for the day.
The wider DFM is in the black by 0.10 per cent, while ADX closed 1.06 per cent higher. The real estate sector has been outperforming the general indices since the lows in March. From the third week of March, DFM has rallied 20 per cent while the DFM Real Estate index is up a staggering 40 per cent.
During the same period, Damac has rallied by an astounding 163 per cent and Arabtec leapt higher by 153 per cent.
There are company-specific and macro-level factors behind the stellar outperformance of real estate stocks. Recently Arabtec had a reshuffle of its top level management - Walled Al Muhairi, who happens to be deputy CEO of the Abu Dhabi sovereign wealth fund Mubadala, was appointed Arabtec chairman, and the hope is that he will speed up the restructuring process.
Major UAE real estate sector stocks are on a tear with Arabtec rallying 14.85 per cent and Damac gaining 8.25 per cent for the day.
The wider DFM is in the black by 0.10 per cent, while ADX closed 1.06 per cent higher. The real estate sector has been outperforming the general indices since the lows in March. From the third week of March, DFM has rallied 20 per cent while the DFM Real Estate index is up a staggering 40 per cent.
During the same period, Damac has rallied by an astounding 163 per cent and Arabtec leapt higher by 153 per cent.
There are company-specific and macro-level factors behind the stellar outperformance of real estate stocks. Recently Arabtec had a reshuffle of its top level management - Walled Al Muhairi, who happens to be deputy CEO of the Abu Dhabi sovereign wealth fund Mubadala, was appointed Arabtec chairman, and the hope is that he will speed up the restructuring process.
#Oman picks FAB and Bank Muscat to arrange $2bln loan - sources | ZAWYA MENA Edition
Oman picks FAB and Bank Muscat to arrange $2bln loan - sources | ZAWYA MENA Edition:
The government of Oman has picked First Abu Dhabi Bank and Bank Muscat to coordinate a $2 billion bridge loan it is seeking to borrow from international and regional banks, according to two sources familiar with the matter.
Oman is taking out the one-year loan - which would subsequently be repaid with money raised from an international bond - to bolster state coffers hit by low oil prices and the economic downturn caused by the coronavirus crisis.
It started talks with banks for the loan in June, sources told Reuters earlier this month.
First Abu Dhabi Bank and Bank Muscat have been chosen to coordinate the deal, two sources said.
The government of Oman has picked First Abu Dhabi Bank and Bank Muscat to coordinate a $2 billion bridge loan it is seeking to borrow from international and regional banks, according to two sources familiar with the matter.
Oman is taking out the one-year loan - which would subsequently be repaid with money raised from an international bond - to bolster state coffers hit by low oil prices and the economic downturn caused by the coronavirus crisis.
It started talks with banks for the loan in June, sources told Reuters earlier this month.
First Abu Dhabi Bank and Bank Muscat have been chosen to coordinate the deal, two sources said.
Oil falls 2% on U.S.-China tensions, rising virus cases - Reuters
Oil falls 2% on U.S.-China tensions, rising virus cases - Reuters:
Oil prices dropped nearly 2% on Monday despite a weaker U.S. dollar, as rising coronavirus cases and tensions between the United States and China clouded the outlook for oil demand’s recovery.
Brent crude LCOc1 lost 81 cents, or 1.9%, to $42.53 a barrel by 11:13 a.m. EDT, while U.S. West Texas Intermediate (WTI) crude CLc1 fell 65 cents, or 1.6%, to $40.64 a barrel.
Following the closures of consulates in Houston and Chendu, investors worried about relations between China and the United States and have retreated to safe havens, such as gold and bonds.
“In lack of larger fundamental news, oil prices are following the overall macro trends, behaving as a ‘risky asset’ and being traded lower when safe-haven assets strengthen,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.
Oil prices dropped nearly 2% on Monday despite a weaker U.S. dollar, as rising coronavirus cases and tensions between the United States and China clouded the outlook for oil demand’s recovery.
Brent crude LCOc1 lost 81 cents, or 1.9%, to $42.53 a barrel by 11:13 a.m. EDT, while U.S. West Texas Intermediate (WTI) crude CLc1 fell 65 cents, or 1.6%, to $40.64 a barrel.
Following the closures of consulates in Houston and Chendu, investors worried about relations between China and the United States and have retreated to safe havens, such as gold and bonds.
“In lack of larger fundamental news, oil prices are following the overall macro trends, behaving as a ‘risky asset’ and being traded lower when safe-haven assets strengthen,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.
MIDEAST STOCKS- #Kuwait leads most of Gulf higher; #Qatar retreats - Reuters
MIDEAST STOCKS-Kuwait leads most of Gulf higher; Qatar retreats - Reuters:
Most Gulf stock markets ended higher on
Monday with Kuwait leading the gains on the back of a broad
increase in shares in its index, while Qatar's was hit by
first-half losses from Qatar Insurance Company.
Saudi Arabia's benchmark index added 0.3%, bolstered
by a 0.6% gain in Saudi Aramco and a 1% rise in Saudi
Basic Industries.
But Yamama Cement declined 1.8% as the company
reported a fall in second-quarter net profit.
In Kuwait, the index advanced 1.7%, buoyed by a 3.5%
jump in National Bank of Kuwait.
News about the health of the Emir of Kuwait, who is in the
United States for medical treatment, is "very reassuring,"
parliament speaker Marzouq al-Ghanim said on Sunday in a
statement on the parliament's Twitter account.
The Qatar index slipped 0.3%, hit by a 4.2% slide in
Qatar Insurance after the company reported a net loss
of 207.8 million riyals ($57.06 million) in the first half,
compared with a profit of 409.9 million riyals a year ago.
Most Gulf stock markets ended higher on
Monday with Kuwait leading the gains on the back of a broad
increase in shares in its index, while Qatar's was hit by
first-half losses from Qatar Insurance Company.
Saudi Arabia's benchmark index added 0.3%, bolstered
by a 0.6% gain in Saudi Aramco and a 1% rise in Saudi
Basic Industries.
But Yamama Cement declined 1.8% as the company
reported a fall in second-quarter net profit.
In Kuwait, the index advanced 1.7%, buoyed by a 3.5%
jump in National Bank of Kuwait.
News about the health of the Emir of Kuwait, who is in the
United States for medical treatment, is "very reassuring,"
parliament speaker Marzouq al-Ghanim said on Sunday in a
statement on the parliament's Twitter account.
The Qatar index slipped 0.3%, hit by a 4.2% slide in
Qatar Insurance after the company reported a net loss
of 207.8 million riyals ($57.06 million) in the first half,
compared with a profit of 409.9 million riyals a year ago.
Blackrock, #Qatar's QIA interested in Atlantia's tollroad unit: sources - Reuters
Blackrock, Qatar's QIA interested in Atlantia's tollroad unit: sources - Reuters:
U.S. asset manager BlackRock (BLK.N) and Qatar’s sovereign fund QIA are interested in investing in Atlantia’s motorway unit (ATL.MI) along with Italian state lender Cassa Depositi e Prestiti (CDP), two sources with knowledge of the matter said.
The two could be part of a consortium made of Italian and foreign funds that is expected to buy around 20% in Atlantia’s Autostrade per l’Italia once it is demerged from its parent company, the source said.
BlackRock and Qatar Investment Authority declined to comment on the issue.
Autostrade is being sold off after the Italian government forced Atlantia to hand over control of the unit or face being stripped of its lucrative tollway concession in the wake of the deadly collapse of a motorway bridge in 2018 in which 43 people were killed.
U.S. asset manager BlackRock (BLK.N) and Qatar’s sovereign fund QIA are interested in investing in Atlantia’s motorway unit (ATL.MI) along with Italian state lender Cassa Depositi e Prestiti (CDP), two sources with knowledge of the matter said.
The two could be part of a consortium made of Italian and foreign funds that is expected to buy around 20% in Atlantia’s Autostrade per l’Italia once it is demerged from its parent company, the source said.
BlackRock and Qatar Investment Authority declined to comment on the issue.
Autostrade is being sold off after the Italian government forced Atlantia to hand over control of the unit or face being stripped of its lucrative tollway concession in the wake of the deadly collapse of a motorway bridge in 2018 in which 43 people were killed.
Oil slips on U.S.-China tensions, rising virus cases - Reuters
Oil slips on U.S.-China tensions, rising virus cases - Reuters:
Oil prices edged lower on Monday as rising coronavirus cases and tensions between the United States and China pushed investors towards safe-haven assets.
Brent crude LCOc1 dipped 20 cents, or 0.5%, to $43.14 a barrel by 1000 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 dropped to $41.15 a barrel, down 14 cents, or 0.4%.
The fall in oil mirrored moves in broader financial markets in Asia amid concerns about escalating tensions between the world’s two biggest economies following the closures of consulates in Houston and Chengdu. Global coronavirus cases, meanwhile, exceeded 16 million.
Oil prices edged lower on Monday as rising coronavirus cases and tensions between the United States and China pushed investors towards safe-haven assets.
Brent crude LCOc1 dipped 20 cents, or 0.5%, to $43.14 a barrel by 1000 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 dropped to $41.15 a barrel, down 14 cents, or 0.4%.
The fall in oil mirrored moves in broader financial markets in Asia amid concerns about escalating tensions between the world’s two biggest economies following the closures of consulates in Houston and Chengdu. Global coronavirus cases, meanwhile, exceeded 16 million.
European, Middle Eastern & African Stocks - Bloomberg #UAE close #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.
China National Offshore Oil Corporation picks up rights in ADNOC fields | Energy – Gulf News
China National Offshore Oil Corporation picks up rights in ADNOC fields | Energy – Gulf News:
The Abu Dhabi National Oil Company (ADNOC) has agreed to a transfer of rights in its Lower Zakum and Umm Shaif and Nasr offshore concessions to a unit of China National Offshore Oil Corporation. The rights will shift from the previous holder, China National Petroleum Corporation (CNPC).
The transfer, approved by Abu Dhabi’s Supreme Petroleum Council, marks the first time that a Chinese offshore oil and gas company has joins ADNOC’s concessions, UAE’s state-run energy firm said in a statement.
As a result, CNOOC will hold a 4 per cent interest in the Lower Zakum concession and a 4 per cent interest in the Umm Shaif and Nasr concession, while PetroChina retains a 6 per cent stake in the concessions.
The transfer also includes CNOOC buying 40 per cent in CNPC’s majority-owned subsidiary PetroChina Investment Overseas (Middle East) Ltd. (PetroChina).
The Abu Dhabi National Oil Company (ADNOC) has agreed to a transfer of rights in its Lower Zakum and Umm Shaif and Nasr offshore concessions to a unit of China National Offshore Oil Corporation. The rights will shift from the previous holder, China National Petroleum Corporation (CNPC).
The transfer, approved by Abu Dhabi’s Supreme Petroleum Council, marks the first time that a Chinese offshore oil and gas company has joins ADNOC’s concessions, UAE’s state-run energy firm said in a statement.
As a result, CNOOC will hold a 4 per cent interest in the Lower Zakum concession and a 4 per cent interest in the Umm Shaif and Nasr concession, while PetroChina retains a 6 per cent stake in the concessions.
The transfer also includes CNOOC buying 40 per cent in CNPC’s majority-owned subsidiary PetroChina Investment Overseas (Middle East) Ltd. (PetroChina).
#SaudiArabia’s NCB reports drop in second quarter profit on higher operating expenses - The National
Saudi Arabia’s NCB reports drop in second quarter profit on higher operating expenses - The National:
Saudi Arabia’s National Commercial Bank (NCB), the kingdom's biggest lender by assets, reported a 22 per cent drop in its second-quarter profit as total operating expenses including impairments for bad loans climbed and operating income decreased.
Net profit for the three months ending June 30 declined to 2.09 billion Saudi riyals (Dh2.05bn), the lender said in a statement to the Tadawul stock exchange, where its shares trade. Operating income during the period slid 5.6 per cent to 4.76bn riyals.
Total operating expenses iclimbed 18.4 per cent during the period, “mainly due to higher net impairment charge for expected credit losses". They were partially offset by a decrease in salaries and employee-related expenses, rent and premises-related expenses, depreciation or amortisation of property, equipment, software and ROU (right of use) assets, and other general and administrative expenses, the statement said.
Saudi Arabia’s National Commercial Bank (NCB), the kingdom's biggest lender by assets, reported a 22 per cent drop in its second-quarter profit as total operating expenses including impairments for bad loans climbed and operating income decreased.
Net profit for the three months ending June 30 declined to 2.09 billion Saudi riyals (Dh2.05bn), the lender said in a statement to the Tadawul stock exchange, where its shares trade. Operating income during the period slid 5.6 per cent to 4.76bn riyals.
Total operating expenses iclimbed 18.4 per cent during the period, “mainly due to higher net impairment charge for expected credit losses". They were partially offset by a decrease in salaries and employee-related expenses, rent and premises-related expenses, depreciation or amortisation of property, equipment, software and ROU (right of use) assets, and other general and administrative expenses, the statement said.
Things Are Looking ‘Very Good’ for Bank Albilad, Says CEO Abdulaziz Al Onaizan - Bloomberg
Things Are Looking ‘Very Good’ for Bank Albilad, Says CEO Abdulaziz Al Onaizan - Bloomberg:
Abdulaziz Al Onaizan, chief executive officer at Bank Albilad, discusses the health of the Saudi economy, support from the central bank and the potential for consolidation with another bank. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Abdulaziz Al Onaizan, chief executive officer at Bank Albilad, discusses the health of the Saudi economy, support from the central bank and the potential for consolidation with another bank. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Global port operator DP World says outlook uncertain as Q2 volumes fall - Reuters
Global port operator DP World says outlook uncertain as Q2 volumes fall - Reuters:
Global port operator DP World recorded a fall of 8.8% in second quarter container volumes, warning on Monday the outlook remained uncertain.
The coronavirus pandemic shut cities and factories worldwide for months, disrupting shipments and global supply chains, while some cities are now reintroducing curbs after a recent rise in infections.
The Dubai state-owned company, which also operates logistics facilities, handled 16.7 million shipping containers in the second quarter, down from 18.3 million a year earlier.
It recorded its biggest quarterly decline in the Asia Pacific and Indian subcontinent region, where volumes fell 12.2% to 7.2 million containers.
Global port operator DP World recorded a fall of 8.8% in second quarter container volumes, warning on Monday the outlook remained uncertain.
The coronavirus pandemic shut cities and factories worldwide for months, disrupting shipments and global supply chains, while some cities are now reintroducing curbs after a recent rise in infections.
The Dubai state-owned company, which also operates logistics facilities, handled 16.7 million shipping containers in the second quarter, down from 18.3 million a year earlier.
It recorded its biggest quarterly decline in the Asia Pacific and Indian subcontinent region, where volumes fell 12.2% to 7.2 million containers.
Oil slips as U.S.-China friction, rising virus cases weigh on markets - Reuters
Oil slips as U.S.-China friction, rising virus cases weigh on markets - Reuters:
Oil prices edged lower on Monday as rising coronavirus cases and tensions between the United States and China pushed investors toward safe-haven assets.
Brent crude LCOc1 dipped 8 cents, or 0.2%, to $43.26 a barrel by 0403 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 dropped to $41.22 a barrel, down 7 cents, or 0.2%.
The fall in oil mirrored moves in broader financial markets in Asia amid concerns about escalating tensions between the world’s two biggest economies following the closures of consulates in Houston and Chengdu. Global coronavirus cases, meanwhile, exceeded 16 million.
Still, Brent is on track for a fourth straight monthly gain in July and WTI is set to rise for a third month as unprecedented supply cuts from the Organization of the Petroleum Countries and its allies including Russia propped up prices. Output has also fallen in the United States.
Oil prices edged lower on Monday as rising coronavirus cases and tensions between the United States and China pushed investors toward safe-haven assets.
Brent crude LCOc1 dipped 8 cents, or 0.2%, to $43.26 a barrel by 0403 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 dropped to $41.22 a barrel, down 7 cents, or 0.2%.
The fall in oil mirrored moves in broader financial markets in Asia amid concerns about escalating tensions between the world’s two biggest economies following the closures of consulates in Houston and Chengdu. Global coronavirus cases, meanwhile, exceeded 16 million.
Still, Brent is on track for a fourth straight monthly gain in July and WTI is set to rise for a third month as unprecedented supply cuts from the Organization of the Petroleum Countries and its allies including Russia propped up prices. Output has also fallen in the United States.
MIDEAST STOCKS-Most major Gulf stocks rise in early trade; #Qatar slips - Reuters
MIDEAST STOCKS-Most major Gulf stocks rise in early trade; Qatar slips - Reuters:
Most major stocks markets in the Gulf rose in early trade on Monday, largely on the back of their financials, while Qatar’s index was hurt by first-half losses posted by Qatar Insurance Company.
Saudi Arabia’s benchmark index edged up 0.1%, helped by a 0.7% rise in Dr Sulaiman Al-Habib Medical Services , while National Commercial Bank was up 0.4%, despite recording a lower second-quarter profit.
But Banque Saudi Fransi declined 1% as the lender reported a fall in second-quarter net-profit.
The Qatari index lost 0.2%, driven down by a 4.3% slide in Qatar Insurance.
The insurer posted a net loss of 207.8 million riyals ($57.08 million) in the first-half, compared to a profit of 409.9 million riyals year ago.
Most major stocks markets in the Gulf rose in early trade on Monday, largely on the back of their financials, while Qatar’s index was hurt by first-half losses posted by Qatar Insurance Company.
Saudi Arabia’s benchmark index edged up 0.1%, helped by a 0.7% rise in Dr Sulaiman Al-Habib Medical Services , while National Commercial Bank was up 0.4%, despite recording a lower second-quarter profit.
But Banque Saudi Fransi declined 1% as the lender reported a fall in second-quarter net-profit.
The Qatari index lost 0.2%, driven down by a 4.3% slide in Qatar Insurance.
The insurer posted a net loss of 207.8 million riyals ($57.08 million) in the first-half, compared to a profit of 409.9 million riyals year ago.