Oil falls as U.S. stimulus package faces tough talks - Reuters:
Oil prices fell on Tuesday as U.S. lawmakers prepared to wrangle over an economic stimulus package and investors worried about a rise in coronavirus cases worldwide.
Brent crude futures fell 19 cents, or 0.4%, to settle at $43.22 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 56 cents, or 1.4%, to settle at $41.04 a barrel.
Brent is still on track for a fourth monthly rise, and U.S. crude is expected to gain for a third month.
U.S. Republicans on Monday unveiled a new coronavirus relief proposal hammered out with the White House, four days before millions of Americans lose expanded unemployment benefits. The package is facing opposition both from Democrats and from some Republicans, however.
Tuesday 28 July 2020
Toll of Virus, Oil on #Saudi Budget Laid Bare With Revenue Plunge - Bloomberg
Toll of Virus, Oil on Saudi Budget Laid Bare With Revenue Plunge - Bloomberg:
Saudi Arabia suffered a simultaneous decline in oil and non-oil revenue as the global pandemic combined with lower energy prices to jolt the kingdom’s public finances.
Oil revenue was down 45% in the second quarter from the same period last year to 95.7 billion riyals ($25.5 billion), according to budget data released by the Finance Ministry on Tuesday. Non-oil revenue drawn from sources like taxes and fees declined by 55%.
The deficit more than tripled from the first quarter to 109.2 billion riyals even though authorities cut spending by 17% compared with a year earlier.
Saudi Arabia suffered a simultaneous decline in oil and non-oil revenue as the global pandemic combined with lower energy prices to jolt the kingdom’s public finances.
Oil revenue was down 45% in the second quarter from the same period last year to 95.7 billion riyals ($25.5 billion), according to budget data released by the Finance Ministry on Tuesday. Non-oil revenue drawn from sources like taxes and fees declined by 55%.
The deficit more than tripled from the first quarter to 109.2 billion riyals even though authorities cut spending by 17% compared with a year earlier.
Adnoc Considers Stake Sale in $5 Billion of Properties - Bloomberg
Adnoc Considers Stake Sale in $5 Billion of Properties - Bloomberg:
Abu Dhabi National Oil Co. is exploring the possibility of selling a stake in its real estate portfolio, the latest effort by the state-owned energy producer to raise funds and attract foreign investors.
Initial estimates value the properties at about $5 billion, according to people familiar with the matter, who asked not to be identified because talks are private. The plan is in its inception stage and could still change, they said.
Adnoc declined to comment.
A potential deal could be structured along the same lines as the energy firm’s sale of a $10.1 billion stake in its natural-gas pipelines last month, the people said. In that transaction, Adnoc sold a 49% holding in a new subsidiary housing the assets to a group of investors including Global Infrastructure Partners, Brookfield Asset Management Inc., Ontario Teachers’ Pension Plan and Singapore’s sovereign wealth fund.
Abu Dhabi National Oil Co. is exploring the possibility of selling a stake in its real estate portfolio, the latest effort by the state-owned energy producer to raise funds and attract foreign investors.
Initial estimates value the properties at about $5 billion, according to people familiar with the matter, who asked not to be identified because talks are private. The plan is in its inception stage and could still change, they said.
Adnoc declined to comment.
A potential deal could be structured along the same lines as the energy firm’s sale of a $10.1 billion stake in its natural-gas pipelines last month, the people said. In that transaction, Adnoc sold a 49% holding in a new subsidiary housing the assets to a group of investors including Global Infrastructure Partners, Brookfield Asset Management Inc., Ontario Teachers’ Pension Plan and Singapore’s sovereign wealth fund.
Middle East News: #Oman Seeks to Cut Spending to Tackle Deficit - Bloomberg
Middle East News: Oman Seeks to Cut Spending to Tackle Deficit - Bloomberg:
Oman’s government has asked ministries to slow down projects and identify spending priorities as it looks to tackle the widest budget deficit among Gulf Arab economies.
In a directive to ministries ahead of the country’s fiscal preparation for 2021, the sultanate’s Finance Ministry told the government bodies to avoid exceeding the spending limits set down by the revised budget this year.
The aim is “to prioritize the execution of essential projects that serve economic and social objectives while also slowing down non-essential projects as well as prioritizing the operating of completed projects,” according to a guidance published on the Finance Ministry’s website.
Oman’s government has asked ministries to slow down projects and identify spending priorities as it looks to tackle the widest budget deficit among Gulf Arab economies.
In a directive to ministries ahead of the country’s fiscal preparation for 2021, the sultanate’s Finance Ministry told the government bodies to avoid exceeding the spending limits set down by the revised budget this year.
The aim is “to prioritize the execution of essential projects that serve economic and social objectives while also slowing down non-essential projects as well as prioritizing the operating of completed projects,” according to a guidance published on the Finance Ministry’s website.
#Dubai property developer Nakheel in talks to refinance debt - sources | Nasdaq
Dubai property developer Nakheel in talks to refinance debt - sources | Nasdaq:
Dubai property developer Nakheel has approached banks to refinance outstanding debt, sources said, amid an economic downturn which is exacerbating property oversupply problems and has raised concerns over Dubai's debt sustainability.
State-owned Nakheel, developer of Dubai's palm-shaped islands, was forced into a massive debt restructuring in the aftermath of the emirate's 2009-2010 real estate crash, when the company was one of the hardest hit.
It has recently approached banks to refinance multiple outstanding loans, said three sources familiar with the matter, without disclosing the amount of debt involved.
The refinancing would include debt Nakheel raised for the development of its Deira Mall project, two of the sources said.
Dubai property developer Nakheel has approached banks to refinance outstanding debt, sources said, amid an economic downturn which is exacerbating property oversupply problems and has raised concerns over Dubai's debt sustainability.
State-owned Nakheel, developer of Dubai's palm-shaped islands, was forced into a massive debt restructuring in the aftermath of the emirate's 2009-2010 real estate crash, when the company was one of the hardest hit.
It has recently approached banks to refinance multiple outstanding loans, said three sources familiar with the matter, without disclosing the amount of debt involved.
The refinancing would include debt Nakheel raised for the development of its Deira Mall project, two of the sources said.
UPDATE 1-First #AbuDhabi Bank profit drops 25% as impairments jump - Reuters
UPDATE 1-First Abu Dhabi Bank profit drops 25% as impairments jump - Reuters:
First Abu Dhabi Bank (FAB), the United Arab Emirates’ biggest lender, reported a 25% fall in quarterly profit on Tuesday, dragged down by another quarter of higher impairment charges.
Banks in the region have been hit by the twin shock of the coronavirus pandemic and lower oil price, with most seeing their profits plunge in the second quarter as they book higher provisions for expected credit losses.
FAB’s second-quarter net profit was 2.41 billion dirhams ($656 million) versus 3.22 billion dirhams a year earlier. It was flat compared with the first quarter.
Net impairment charges jumped 127% in the quarter to 1.06 billion dirhams from 467 million dirhams a year ago. In the first quarter, net impairment charges were 738 million dirhams, 81% higher year-on-year.
First Abu Dhabi Bank (FAB), the United Arab Emirates’ biggest lender, reported a 25% fall in quarterly profit on Tuesday, dragged down by another quarter of higher impairment charges.
Banks in the region have been hit by the twin shock of the coronavirus pandemic and lower oil price, with most seeing their profits plunge in the second quarter as they book higher provisions for expected credit losses.
FAB’s second-quarter net profit was 2.41 billion dirhams ($656 million) versus 3.22 billion dirhams a year earlier. It was flat compared with the first quarter.
Net impairment charges jumped 127% in the quarter to 1.06 billion dirhams from 467 million dirhams a year ago. In the first quarter, net impairment charges were 738 million dirhams, 81% higher year-on-year.
Coronavirus hits Gulf banks in Q2 but full impact of bad loans looms - Reuters
Coronavirus hits Gulf banks in Q2 but full impact of bad loans looms - Reuters:
Most Gulf banks’ profits plunged in the second quarter after a spike in impairment charges for expected credit losses, as regional economies reel from the double blow of low oil prices and the coronavirus outbreak.
But the banks may need to set aside even more money in the second half of the year to cover bad loans, as their full impact on banks has so far been curbed by stimulus measures allowing debt repayment delays, analysts say.
“Given that we have payment holidays, the current asset quality metrics as measured by the non-performing loans, still does not fully reflect the true size of these non-performing loans,” said Ashraf Madani, a senior analyst at Moody’s.
“Hence we expect further pressure on provisioning charge once those NPLs (non-performing loans) get reflected in the financial position of banks and as they move to stage 3.”
Most Gulf banks’ profits plunged in the second quarter after a spike in impairment charges for expected credit losses, as regional economies reel from the double blow of low oil prices and the coronavirus outbreak.
But the banks may need to set aside even more money in the second half of the year to cover bad loans, as their full impact on banks has so far been curbed by stimulus measures allowing debt repayment delays, analysts say.
“Given that we have payment holidays, the current asset quality metrics as measured by the non-performing loans, still does not fully reflect the true size of these non-performing loans,” said Ashraf Madani, a senior analyst at Moody’s.
“Hence we expect further pressure on provisioning charge once those NPLs (non-performing loans) get reflected in the financial position of banks and as they move to stage 3.”
MIDEAST STOCKS- #Kuwait shares rise on broad-based gains; others little changed - Reuters
MIDEAST STOCKS-Kuwait shares rise on broad-based gains; others little changed - Reuters:
Broad-based gains pushed Kuwaiti shares
higher on Tuesday, with financial stocks leading the pack, while
other major bourses in the Gulf were little changed ahead of Eid
Al-Azha.
In Kuwait, the index leapt 2.6%, as most of the
stocks on the index ended higher including National Bank of
Kuwait, which was up 3.5%.
Kuwait's government has set a road map and a time frame to
improve the country's credit rating, a statement issued after a
cabinet meeting on Monday said, without giving details.
Saudi Arabia's benchmark index edged up 0.1%,
supported by a 0.8% gain in National Commercial Bank.
Dubai's main share index added 0.2%, with blue-chip
developer Emaar Properties rising 1.6%.
In Abu Dhabi, the index eased 0.2%, weighed by a 2.3%
fall in Abu Dhabi Commercial Bank (ADCB).
Broad-based gains pushed Kuwaiti shares
higher on Tuesday, with financial stocks leading the pack, while
other major bourses in the Gulf were little changed ahead of Eid
Al-Azha.
In Kuwait, the index leapt 2.6%, as most of the
stocks on the index ended higher including National Bank of
Kuwait, which was up 3.5%.
Kuwait's government has set a road map and a time frame to
improve the country's credit rating, a statement issued after a
cabinet meeting on Monday said, without giving details.
Saudi Arabia's benchmark index edged up 0.1%,
supported by a 0.8% gain in National Commercial Bank.
Dubai's main share index added 0.2%, with blue-chip
developer Emaar Properties rising 1.6%.
In Abu Dhabi, the index eased 0.2%, weighed by a 2.3%
fall in Abu Dhabi Commercial Bank (ADCB).
Oil falls as U.S. fiscal package faces tough talks - Reuters
Oil falls as U.S. fiscal package faces tough talks - Reuters:
Oil prices fell around 1% on Tuesday, as U.S. lawmakers prepared to wrangle over an economic stimulus package and investors worried about a rise in coronavirus cases worldwide.
Brent crude futures fell 26 cents, or 0.6%, to $43.15 a barrel by 11:20 a.m. EDT (1520 GMT), while U.S. West Texas Intermediate (WTI) crude futures fell 62 cents, or 1.5%, to $40.98 a barrel.
U.S. Republicans unveiled a new coronavirus relief proposal on Monday, four days before millions of Americans lose expanded unemployment benefits. On Tuesday, they faced difficult talks with Democrats on how best to recover from the coronavirus pandemic.
“There’s concern with the stimulus out of Washington, which is critical to the oil complex and to supporting demand, especially for gasoline,” said John Kilduff, partner at Again Capital LLC in New York. Kilduff added that the longer the talks drag out, the more it will weigh on market sentiment.
Oil prices fell around 1% on Tuesday, as U.S. lawmakers prepared to wrangle over an economic stimulus package and investors worried about a rise in coronavirus cases worldwide.
Brent crude futures fell 26 cents, or 0.6%, to $43.15 a barrel by 11:20 a.m. EDT (1520 GMT), while U.S. West Texas Intermediate (WTI) crude futures fell 62 cents, or 1.5%, to $40.98 a barrel.
U.S. Republicans unveiled a new coronavirus relief proposal on Monday, four days before millions of Americans lose expanded unemployment benefits. On Tuesday, they faced difficult talks with Democrats on how best to recover from the coronavirus pandemic.
“There’s concern with the stimulus out of Washington, which is critical to the oil complex and to supporting demand, especially for gasoline,” said John Kilduff, partner at Again Capital LLC in New York. Kilduff added that the longer the talks drag out, the more it will weigh on market sentiment.
#SaudiArabia posts $29 billion deficit in second quarter as oil revenues slump - Reuters
Saudi Arabia posts $29 billion deficit in second quarter as oil revenues slump - Reuters:
Saudi Arabia posted a deficit of 109.2 billion riyals ($29.12 billion) in the second quarter this year as low oil prices hurt revenues, a finance ministry report published on Tuesday showed.
The coronavirus crisis has hurt the non-oil sectors of the world’s largest oil exporter this year, adding to the impact of historic price lows on the economy.
Second quarter oil revenues fell by 45% year-on-year to $25.5 billion. Total revenues dropped 49% to nearly $36 billion.
Total second-quarter expenditures dropped annually by 17% to around $65 billion, the report on quarterly budget performance showed, although spending increased when compared to Q1 by 7.5%.
Saudi Arabia posted a deficit of 109.2 billion riyals ($29.12 billion) in the second quarter this year as low oil prices hurt revenues, a finance ministry report published on Tuesday showed.
The coronavirus crisis has hurt the non-oil sectors of the world’s largest oil exporter this year, adding to the impact of historic price lows on the economy.
Second quarter oil revenues fell by 45% year-on-year to $25.5 billion. Total revenues dropped 49% to nearly $36 billion.
Total second-quarter expenditures dropped annually by 17% to around $65 billion, the report on quarterly budget performance showed, although spending increased when compared to Q1 by 7.5%.
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.
Exclusive: #Saudi banks may suspend dividend payouts for H1 2020 | ZAWYA MENA Edition
Exclusive: Saudi banks may suspend dividend payouts for H1 2020 | ZAWYA MENA Edition:
Earnings calls this week revealed that Saudi Arabia’s listed banks may withhold dividends for the first half of 2020.
Although some banks like Al Rajhi and Banque Saudi Fransi, which had their earnings calls on Monday, made no direct mention of withholding dividends, they indicated as much.
“Banks stated that while they were not given direct instructions to hold H1 dividends, they were asked by SAMA [the Saudi Arabian Monetary Authority] to exercise prudence when taking the decision. Banks hinted that the decision will be revisited towards year-end, implying that it is a postponement rather than a cancellation. It will then be a function of how developments evolve in H2,” Sara Boutros, Senior Analyst at Egypt-based CI Capital told Zawya.
On Sunday, rumors were rife in the market that bank dividends would be withheld on a directive from SAMA, the central bank, in lieu of the stimulus package that has been allocated to the lenders.
Earnings calls this week revealed that Saudi Arabia’s listed banks may withhold dividends for the first half of 2020.
Although some banks like Al Rajhi and Banque Saudi Fransi, which had their earnings calls on Monday, made no direct mention of withholding dividends, they indicated as much.
“Banks stated that while they were not given direct instructions to hold H1 dividends, they were asked by SAMA [the Saudi Arabian Monetary Authority] to exercise prudence when taking the decision. Banks hinted that the decision will be revisited towards year-end, implying that it is a postponement rather than a cancellation. It will then be a function of how developments evolve in H2,” Sara Boutros, Senior Analyst at Egypt-based CI Capital told Zawya.
On Sunday, rumors were rife in the market that bank dividends would be withheld on a directive from SAMA, the central bank, in lieu of the stimulus package that has been allocated to the lenders.
Singapore’s GIC reports lowest returns since global financial crisis | Financial Times
Singapore’s GIC reports lowest returns since global financial crisis | Financial Times:
GIC has posted its lowest rate of return since the global financial crisis as the Singapore sovereign wealth fund braces for deeper geopolitical and market uncertainties due to the coronavirus pandemic.
“Coming into this year we already had concerns about high valuation, indebtedness, policy room and geopolitics,” said Lim Chow Kiat, chief executive of GIC. “Covid just made every one of them worse and more uncertain.”
The state fund's annualised 20-year real rate of return, its main performance metric, was 2.7 per cent for the year through March. That was down from 3.4 per cent in the previous 12 months, and the lowest since hitting 2.6 per cent in the 2008-2009 global financial crisis.
GIC said the drop was largely due to gains from the “tech-bubble” financial year of 1999-2000 dropping out of the 20-year metric.
GIC has posted its lowest rate of return since the global financial crisis as the Singapore sovereign wealth fund braces for deeper geopolitical and market uncertainties due to the coronavirus pandemic.
“Coming into this year we already had concerns about high valuation, indebtedness, policy room and geopolitics,” said Lim Chow Kiat, chief executive of GIC. “Covid just made every one of them worse and more uncertain.”
The state fund's annualised 20-year real rate of return, its main performance metric, was 2.7 per cent for the year through March. That was down from 3.4 per cent in the previous 12 months, and the lowest since hitting 2.6 per cent in the 2008-2009 global financial crisis.
GIC said the drop was largely due to gains from the “tech-bubble” financial year of 1999-2000 dropping out of the 20-year metric.
‘They want us to leave’ — foreign workers under pressure in the Gulf | Financial Times
‘They want us to leave’ — foreign workers under pressure in the Gulf | Financial Times:
Ashraf, an Egyptian working in Kuwait, lost all his income as a result of the coronavirus pandemic. The country’s curfew was eased two months ago, but for Ashraf there was little respite.
While other areas of the oil-rich sheikhdom opened up, the taxi driver endured a total lockdown in a suburb close to Kuwait City’s airport popular with foreign workers, which only reopened on Sunday. Taxi services, suspended in March, are scheduled to restart on Tuesday. Public transport, almost exclusively used by foreigners, has been halted for months.
Ashraf believes his plight has been made worse by Kuwait’s attitude towards foreign workers. “We feel the lockdown is deliberate, to make us have no work, to push us out,” he said. “Social media is full of [anti-expatriate] comments. We know they want us to leave.”
The coronavirus outbreak has shone a spotlight on the treatment of millions of foreign workers across the oil-rich Gulf. Many have lost their jobs as businesses have closed, and thousands have left. Now there are questions about how many will return and whether Gulf governments will use the crisis to improve workers' conditions.
Ashraf, an Egyptian working in Kuwait, lost all his income as a result of the coronavirus pandemic. The country’s curfew was eased two months ago, but for Ashraf there was little respite.
While other areas of the oil-rich sheikhdom opened up, the taxi driver endured a total lockdown in a suburb close to Kuwait City’s airport popular with foreign workers, which only reopened on Sunday. Taxi services, suspended in March, are scheduled to restart on Tuesday. Public transport, almost exclusively used by foreigners, has been halted for months.
Ashraf believes his plight has been made worse by Kuwait’s attitude towards foreign workers. “We feel the lockdown is deliberate, to make us have no work, to push us out,” he said. “Social media is full of [anti-expatriate] comments. We know they want us to leave.”
The coronavirus outbreak has shone a spotlight on the treatment of millions of foreign workers across the oil-rich Gulf. Many have lost their jobs as businesses have closed, and thousands have left. Now there are questions about how many will return and whether Gulf governments will use the crisis to improve workers' conditions.
#Kuwait Fund Sues London Boss Who ‘Blew’ Budget on Bonuses - Bloomberg
Kuwait Fund Sues London Boss Who ‘Blew’ Budget on Bonuses - Bloomberg:
Kuwait Investment Authority, the fourth-largest sovereign wealth fund, is caught up in a legal dispute with former managers at its U.K. office over accusations of inflated bonuses.
The fund alleges that Simon Hard, who oversaw fixed income at its London branch, and two other managers “blew the whole budget” by raising salaries and bonuses while a senior executive was away. It’s filed a claim for more than 1 million pounds ($1.3 million) in damages. Hard denies the allegations and said he was victimized and faced age discrimination.
The case, which was reported earlier by the Financial Times, was heard at a London court Monday. The Kuwait fund was ordered to postpone its damages claim until a separate lawsuit brought by Hard takes place at the employment tribunal. The fund has asserted diplomatic immunity in the employment case.
Adam Solomon, an attorney for the fund, said it was alerted in the middle of last year to the alleged misconduct by the country’s State Audit Bureau, which raised “serious concerns” about the pay increases in London. It discovered that Hard and two other managers hid a hike in bonuses of more than 50,000 pounds, the fund said in a March legal filing.
Kuwait Investment Authority, the fourth-largest sovereign wealth fund, is caught up in a legal dispute with former managers at its U.K. office over accusations of inflated bonuses.
The fund alleges that Simon Hard, who oversaw fixed income at its London branch, and two other managers “blew the whole budget” by raising salaries and bonuses while a senior executive was away. It’s filed a claim for more than 1 million pounds ($1.3 million) in damages. Hard denies the allegations and said he was victimized and faced age discrimination.
The case, which was reported earlier by the Financial Times, was heard at a London court Monday. The Kuwait fund was ordered to postpone its damages claim until a separate lawsuit brought by Hard takes place at the employment tribunal. The fund has asserted diplomatic immunity in the employment case.
Adam Solomon, an attorney for the fund, said it was alerted in the middle of last year to the alleged misconduct by the country’s State Audit Bureau, which raised “serious concerns” about the pay increases in London. It discovered that Hard and two other managers hid a hike in bonuses of more than 50,000 pounds, the fund said in a March legal filing.
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.
End game for oil? OPEC prepares for an age of dwindling demand - Reuters
End game for oil? OPEC prepares for an age of dwindling demand - Reuters:
The coronavirus crisis may have triggered the long-anticipated tipping point in oil demand and it is focusing minds in OPEC.
The pandemic drove down daily crude consumption by as much as a third earlier this year, at a time when the rise of electric vehicles and a shift to renewable energy sources were already prompting downward revisions in forecasts for long-term oil demand.
It has prompted some officials in the Organization of the Petroleum Exporting Countries, oil’s most powerful proponent since it was founded 60 years ago, to ask whether this year’s dramatic demand destruction heralds a permanent shift and how best to manage supplies if the age of oil is drawing to a close.
“People are waking up to a new reality and trying to work their heads around it all,” an industry source close to OPEC told Reuters, adding the “possibility exists in the minds of all the key players” that consumption might never fully recover.
The coronavirus crisis may have triggered the long-anticipated tipping point in oil demand and it is focusing minds in OPEC.
The pandemic drove down daily crude consumption by as much as a third earlier this year, at a time when the rise of electric vehicles and a shift to renewable energy sources were already prompting downward revisions in forecasts for long-term oil demand.
It has prompted some officials in the Organization of the Petroleum Exporting Countries, oil’s most powerful proponent since it was founded 60 years ago, to ask whether this year’s dramatic demand destruction heralds a permanent shift and how best to manage supplies if the age of oil is drawing to a close.
“People are waking up to a new reality and trying to work their heads around it all,” an industry source close to OPEC told Reuters, adding the “possibility exists in the minds of all the key players” that consumption might never fully recover.
IMF Bailout May Be Half What #Lebanon Sought When Talks Began - Bloomberg
IMF Bailout May Be Half What Lebanon Sought When Talks Began - Bloomberg:
Lebanon may only count on the International Monetary Fund for as little as half the bailout it had originally sought to help unlock other assistance the country critically needs to bridge the crisis, according to a top official.
With talks over a $10 billion loan program stalling for much of this month, the IMF could provide an amount in a range of $5 billion to $9 billion, Economy Minister Raoul Nehme said in an interview with Bloomberg Television. Although Lebanon’s economic collapse is accelerating, Nehme gave no time frame for when a deal might be reached.
Should negotiations succeed, Lebanon will look to cover the rest of its $30 billion in total needs by seeking help from allies and capitalizing on pledges of about $11 billion made by international donors in 2018 in exchange for a promise of reforms, according to Nehme, a 64-year-old former banking executive.
“All of them are waiting for the IMF, in my opinion,” he said. Without an IMF bailout, Lebanon is looking at a “real black scenario,” and officials are working hard to secure a package as quickly as possible, Nehme said.
Lebanon may only count on the International Monetary Fund for as little as half the bailout it had originally sought to help unlock other assistance the country critically needs to bridge the crisis, according to a top official.
With talks over a $10 billion loan program stalling for much of this month, the IMF could provide an amount in a range of $5 billion to $9 billion, Economy Minister Raoul Nehme said in an interview with Bloomberg Television. Although Lebanon’s economic collapse is accelerating, Nehme gave no time frame for when a deal might be reached.
Should negotiations succeed, Lebanon will look to cover the rest of its $30 billion in total needs by seeking help from allies and capitalizing on pledges of about $11 billion made by international donors in 2018 in exchange for a promise of reforms, according to Nehme, a 64-year-old former banking executive.
“All of them are waiting for the IMF, in my opinion,” he said. Without an IMF bailout, Lebanon is looking at a “real black scenario,” and officials are working hard to secure a package as quickly as possible, Nehme said.
#AbuDhabi's ADCB to lay off 400 employees, sources say - Reuters
Abu Dhabi's ADCB to lay off 400 employees, sources say - Reuters:
Abu Dhabi Commercial Bank (ADCB) (ADCB.AD) is letting go hundreds of employees, sources said, the latest in a round of lay-offs by regional banks as pressure mounts to cut costs amid lower oil prices and the coronavirus crisis.
The UAE’s third-biggest lender is laying off 400 employees, two sources familiar with the matter said, after it had committed to not cutting staff because of the crisis.
In a statement, a spokesman said ADCB had pursued efficiency over the last decade by managing out its lowest underachievers after regular reviews, while ensuring talent was deployed in high-growth areas, such as digital banking.
“A certain number of redundancies are therefore expected every year in the normal course of business,” the bank spokesman added.
Abu Dhabi Commercial Bank (ADCB) (ADCB.AD) is letting go hundreds of employees, sources said, the latest in a round of lay-offs by regional banks as pressure mounts to cut costs amid lower oil prices and the coronavirus crisis.
The UAE’s third-biggest lender is laying off 400 employees, two sources familiar with the matter said, after it had committed to not cutting staff because of the crisis.
In a statement, a spokesman said ADCB had pursued efficiency over the last decade by managing out its lowest underachievers after regular reviews, while ensuring talent was deployed in high-growth areas, such as digital banking.
“A certain number of redundancies are therefore expected every year in the normal course of business,” the bank spokesman added.
Oil prices steady as demand concerns offset U.S. stimulus hopes - Reuters
Oil prices steady as demand concerns offset U.S. stimulus hopes - Reuters:
Oil prices were steady on Tuesday, erasing gains earlier in the session, as rising coronavirus cases dampened the outlook for demand and countered optimism over more U.S. stimulus.
Efforts to stimulate the U.S. economy’s recovery from the coronavirus crisis had raised hopes for stronger oil demand. However, a proposal on Monday from Senate Republicans will likely face opposition from Democrats, delaying the passage of a final stimulus package.
Brent crude futures were unchanged at $43.41 a barrel at 0634 GMT while U.S. West Texas Intermediate (WTI) crude futures fell 14 cents, or 0.3%, to $41.46 a barrel. Both benchmarks rose as much as 0.5% earlier in the session.
“A weaker U.S. dollar is supporting both base and precious metals, but oil traders appear focused on the economic signal that the lower dollar is flashing – i.e. demand destruction,” said Michael McCarthy, chief market strategist at CMC Markets.
Oil prices were steady on Tuesday, erasing gains earlier in the session, as rising coronavirus cases dampened the outlook for demand and countered optimism over more U.S. stimulus.
Efforts to stimulate the U.S. economy’s recovery from the coronavirus crisis had raised hopes for stronger oil demand. However, a proposal on Monday from Senate Republicans will likely face opposition from Democrats, delaying the passage of a final stimulus package.
Brent crude futures were unchanged at $43.41 a barrel at 0634 GMT while U.S. West Texas Intermediate (WTI) crude futures fell 14 cents, or 0.3%, to $41.46 a barrel. Both benchmarks rose as much as 0.5% earlier in the session.
“A weaker U.S. dollar is supporting both base and precious metals, but oil traders appear focused on the economic signal that the lower dollar is flashing – i.e. demand destruction,” said Michael McCarthy, chief market strategist at CMC Markets.
MIDEAST STOCKS- #Saudi dips on financials in quiet trade for major Gulf indexes - Reuters
MIDEAST STOCKS-Saudi dips on financials in quiet trade for major Gulf indexes - Reuters:
The Saudi Arabian stock market slipped in early trade on Tuesday, due to dips in financial shares, while trade on other major bourses in the Gulf was uneventful.
Saudi Arabia’s benchmark index eased 0.1%, hurt by a 0.2% fall in Al Rajhi Bank and a 0.3% decrease in the country’s biggest lender National Commercial Bank.
Elsewhere, Rabigh Refining and Petrochemical Company dropped 2.6%, a day after it posted quarterly losses.
In Dubai, the index rose 0.4%, with blue-chip developer Emaar Properties rising 0.8%, while Arabtec Holding jumped 6.9%.
Meanwhile, global port operator DP World recorded a fall of 8.8% in second-quarter container volumes, warning on Monday the outlook remained uncertain.
The Saudi Arabian stock market slipped in early trade on Tuesday, due to dips in financial shares, while trade on other major bourses in the Gulf was uneventful.
Saudi Arabia’s benchmark index eased 0.1%, hurt by a 0.2% fall in Al Rajhi Bank and a 0.3% decrease in the country’s biggest lender National Commercial Bank.
Elsewhere, Rabigh Refining and Petrochemical Company dropped 2.6%, a day after it posted quarterly losses.
In Dubai, the index rose 0.4%, with blue-chip developer Emaar Properties rising 0.8%, while Arabtec Holding jumped 6.9%.
Meanwhile, global port operator DP World recorded a fall of 8.8% in second-quarter container volumes, warning on Monday the outlook remained uncertain.
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