Iran's stock market hits record high amid battered economy:
The Tehran Stock Exchange closed at a record high on Sunday, crossing 2 million points for the first time, even as U.S. sanctions, unemployment, inflation and low oil prices batter the Iranian economy.
The exchange’s website showed it closed at 2,011,492 points, up some 50,000 points from Saturday. Government authorities also offered additional shares of state-owned companies onto the market Sunday.
The Tehran Stock Exchange has seen sharp increases this year, even as Iran struggled with one of the first serious coronavirus outbreaks outside China.
Encouraged by a government eager to privatize state-owned firms, average people now have access to the market and can trade shares, earning returns they’d never see in a savings account or a certificate of deposit.
But these rapid gains increasingly have analysts and experts worried about a growing stock market bubble, one that could be particularly dire and wipe away the earnings of the average people flooding into the market.
Sunday, 2 August 2020
Gaddafi’s prophecy comes true as foreign powers battle for Libya’s oil | World news | The Guardian
Gaddafi’s prophecy comes true as foreign powers battle for Libya’s oil | World news | The Guardian:
In August 2011, as Libya’s rebels and Nato jets began an assault on Tripoli, Colonel Muammar Gaddafi delivered a speech calling on his supporters to defend the country from foreign invaders.
“There is a conspiracy to control Libyan oil and to control Libyan land, to colonise Libya once again. This is impossible, impossible. We will fight until the last man and last woman to defend Libya from east to west, north to south,” he said in a message broadcast by a pro-regime television station. Two months later, the dictator was dragged bleeding and confused from a storm drain in his hometown of Sirte, before being killed.
Nine years on, after the outbreak of a second civil war, Gaddafi’s proclamation is not far from the truth – but as the US has retreated from the role it played in his downfall, a constellation of emboldened regional powers has descended on Libya instead. As the battle moves to Sirte, gateway to the country’s oil crescent, a potential showdown over control of Libya’s oil wealth is looming.
In August 2011, as Libya’s rebels and Nato jets began an assault on Tripoli, Colonel Muammar Gaddafi delivered a speech calling on his supporters to defend the country from foreign invaders.
“There is a conspiracy to control Libyan oil and to control Libyan land, to colonise Libya once again. This is impossible, impossible. We will fight until the last man and last woman to defend Libya from east to west, north to south,” he said in a message broadcast by a pro-regime television station. Two months later, the dictator was dragged bleeding and confused from a storm drain in his hometown of Sirte, before being killed.
Nine years on, after the outbreak of a second civil war, Gaddafi’s proclamation is not far from the truth – but as the US has retreated from the role it played in his downfall, a constellation of emboldened regional powers has descended on Libya instead. As the battle moves to Sirte, gateway to the country’s oil crescent, a potential showdown over control of Libya’s oil wealth is looming.
GCC government deficits could exceed $180b in 2020 | Banking – Gulf News
GCC government deficits could exceed $180b in 2020 | Banking – Gulf News:
Government funding deficit across the GCC is expected to exceed $180 billion in 2020 due to low oil prices and the economic repercussions of the COVID-19, according to a recent note by Standard & Poor’s.
The rating agency expect the surge in deficits to increase demand for debt issuance across the region. “We expect total GCC government debt to increase by a record-high of about $100 billion in 2020 alone, with an additional $80 billion run-down in government assets to finance an aggregate GCC central government deficit of about$180 billion,” S&P said in report.
Analysts at S&P anticipates GCC government balance sheets continue to deteriorate up until 2023. Most GCC sovereigns have demonstrated ready access to the international capital markets this year, and are in the enviable position of having substantial pools of external liquid assets to fund their fiscal deficits should market access become constrained.
Government funding deficit across the GCC is expected to exceed $180 billion in 2020 due to low oil prices and the economic repercussions of the COVID-19, according to a recent note by Standard & Poor’s.
The rating agency expect the surge in deficits to increase demand for debt issuance across the region. “We expect total GCC government debt to increase by a record-high of about $100 billion in 2020 alone, with an additional $80 billion run-down in government assets to finance an aggregate GCC central government deficit of about$180 billion,” S&P said in report.
Analysts at S&P anticipates GCC government balance sheets continue to deteriorate up until 2023. Most GCC sovereigns have demonstrated ready access to the international capital markets this year, and are in the enviable position of having substantial pools of external liquid assets to fund their fiscal deficits should market access become constrained.
Russia Slightly Raised July Oil Output Ahead of OPEC+ Tapering - Bloomberg
Russia Slightly Raised July Oil Output Ahead of OPEC+ Tapering - Bloomberg:
Russia slightly increased its oil production in July, ahead of OPEC+ plans to start easing their record supply cuts starting this month.
The nation’s producers pumped 39.63 million tons of crude and condensate last month, according to preliminary data from the Energy Ministry’s CDU-TEK unit. That’s an average daily of 9.371 million barrels, applying a 7.33 barrel-per-ton conversion rate, and is above June levels, when output averaged 9.329 million barrels a day.
The Organization of Petroleum Exporting Countries and its allies last month agreed to start tapering their cutbacks from 9.6 million barrels a day in July to 7.7 million from Aug. 1. The group led by Saudi Arabia and Russia will be returning supply at a time oil’s recovery has faltered with coronavirus infections still surging in many parts of the world, and new cases emerging in Asia and Europe.
Russia slightly increased its oil production in July, ahead of OPEC+ plans to start easing their record supply cuts starting this month.
The nation’s producers pumped 39.63 million tons of crude and condensate last month, according to preliminary data from the Energy Ministry’s CDU-TEK unit. That’s an average daily of 9.371 million barrels, applying a 7.33 barrel-per-ton conversion rate, and is above June levels, when output averaged 9.329 million barrels a day.
The Organization of Petroleum Exporting Countries and its allies last month agreed to start tapering their cutbacks from 9.6 million barrels a day in July to 7.7 million from Aug. 1. The group led by Saudi Arabia and Russia will be returning supply at a time oil’s recovery has faltered with coronavirus infections still surging in many parts of the world, and new cases emerging in Asia and Europe.
GCC corporates to focus on preservation rather than growth: S&P | ZAWYA MENA Edition
GCC corporates to focus on preservation rather than growth: S&P | ZAWYA MENA Edition:
The key focus for GCC corporates will be on preservation rather than growth, a recent report by S&P Global Ratings has showed.
A sharp drop in oil prices and a negative impact from COVID-19 measures have been weighing on corporates in the region and worldwide. According to S&P, new investments are expected to take a back seat for most sectors, with the key priorities for businesses being cost optimization, management of liquidity, and cash-flow preservation.
“Overall, the region has witnessed a decline in new investments and the reduction and postponement of capital expenditures by a number of companies, particularly those in the real-estate sector,” S&P said.
The sectors most exposed to weaker operating conditions are aviation, tourism, real estate, hospitality, nonstaples retail, and oil and gas, according to the ratings agency.
The key focus for GCC corporates will be on preservation rather than growth, a recent report by S&P Global Ratings has showed.
A sharp drop in oil prices and a negative impact from COVID-19 measures have been weighing on corporates in the region and worldwide. According to S&P, new investments are expected to take a back seat for most sectors, with the key priorities for businesses being cost optimization, management of liquidity, and cash-flow preservation.
“Overall, the region has witnessed a decline in new investments and the reduction and postponement of capital expenditures by a number of companies, particularly those in the real-estate sector,” S&P said.
The sectors most exposed to weaker operating conditions are aviation, tourism, real estate, hospitality, nonstaples retail, and oil and gas, according to the ratings agency.
#Iran's stock market surges past key level to record high, as analysts warn of bubble - Reuters
Iran's stock market surges past key level to record high, as analysts warn of bubble - Reuters:
Iran’s main stock index broke through the key 2 million point mark for the first time ever on Sunday, state media reported, amid warnings that the market is overheating.
The Tehran Stock Exchange’s benchmark TEDPIX index gained 46,844 points in early trading, the official IRNA news agency said, up 2.4%.
The index closed at 1,961,649 on Saturday after surging by over 57,325 points, or 3.01%, on the day, according to the Tehran Stock Exchange (TSE) website.
Iran’s clerical rulers have been encouraging ordinary Iranians to invest in local stocks to boost the country’s economy, which has been hard hit by the reimposition of U.S. sanctions over Tehran’s nuclear programme.
Iran’s main stock index broke through the key 2 million point mark for the first time ever on Sunday, state media reported, amid warnings that the market is overheating.
The Tehran Stock Exchange’s benchmark TEDPIX index gained 46,844 points in early trading, the official IRNA news agency said, up 2.4%.
The index closed at 1,961,649 on Saturday after surging by over 57,325 points, or 3.01%, on the day, according to the Tehran Stock Exchange (TSE) website.
Iran’s clerical rulers have been encouraging ordinary Iranians to invest in local stocks to boost the country’s economy, which has been hard hit by the reimposition of U.S. sanctions over Tehran’s nuclear programme.