Dubai's DGCX, Nasdaq technology deal set to boost region's capital markets | ZAWYA MENA Edition:
Nasdaq and Dubai Gold & Commodities Exchange (DGCX) has signed an agreement enabling the derivatives exchange to avail a full suite of integrated marketplace solutions via Nasdaq Financial Framework (NFF).
The marketplace solutions, delivered via the NFF, are expected to provide DGCX members and their clients with ever-increasing levels of service performance, a statement from DGCX said.
The solutions include multi-asset trading and real time clearing capabilities, pre-trade risk management, as well as market intelligence, market surveillance and quality assurance applications required to safeguard the integrity of the market.
Nasdaq’s real-time clearing solution will provide DGCX with high-velocity multi-asset class clearing, settlement and risk management capabilities.
Monday, 10 August 2020
#Saudi Aramco to press ahead with plan to boost output capacity, CEO says - Reuters
Saudi Aramco to press ahead with plan to boost output capacity, CEO says - Reuters:
Saudi Aramco (2222.SE) is moving ahead with plans to boost crude output capacity by 1 million barrels per day (bpd) to 13 million bpd despite cuts in capital expenditure this year and next year, the state oil group’s CEO said on Monday.
Aramco’s capital spending plan for 2021 will be “significantly lower than previous guidance,” CEO Amin Nasser also said on a call with analysts and investors after the company’s second quarter results, which were published on Sunday.
Its previous capital spending guidance was $40 billion to $45 billion, he said.
“We are proceeding with increasing our MSC (maximum sustainable capacity) from 12 to 13 million barrels ... it should not have a major impact on capital in 2021,” Nasser said.
Saudi Aramco (2222.SE) is moving ahead with plans to boost crude output capacity by 1 million barrels per day (bpd) to 13 million bpd despite cuts in capital expenditure this year and next year, the state oil group’s CEO said on Monday.
Aramco’s capital spending plan for 2021 will be “significantly lower than previous guidance,” CEO Amin Nasser also said on a call with analysts and investors after the company’s second quarter results, which were published on Sunday.
Its previous capital spending guidance was $40 billion to $45 billion, he said.
“We are proceeding with increasing our MSC (maximum sustainable capacity) from 12 to 13 million barrels ... it should not have a major impact on capital in 2021,” Nasser said.
Oil settles higher on Chinese factory data, U.S. stimulus hopes - Reuters
Oil settles higher on Chinese factory data, U.S. stimulus hopes - Reuters:
Oil settled higher on Monday, supported by data suggesting Chinese factories were returning to pre-pandemic levels, signs of rising energy demand and hopes for an agreement in the United States on more coronavirus-related economic stimulus.
Brent crude LCOc1 settled up 59 cents, or 1.3%, to $44.99 a barrel. West Texas Intermediate U.S. crude CLc1 was up 72 cents, or 1.8%, to $41.94 a barrel.
Prices also found support after U.S. President Donald Trump tweeted that top congressional Democrats wanted to meet with him on coronavirus-related economic relief.
The talks between Democrats and the Trump administration broke down last week.
Oil settled higher on Monday, supported by data suggesting Chinese factories were returning to pre-pandemic levels, signs of rising energy demand and hopes for an agreement in the United States on more coronavirus-related economic stimulus.
Brent crude LCOc1 settled up 59 cents, or 1.3%, to $44.99 a barrel. West Texas Intermediate U.S. crude CLc1 was up 72 cents, or 1.8%, to $41.94 a barrel.
Prices also found support after U.S. President Donald Trump tweeted that top congressional Democrats wanted to meet with him on coronavirus-related economic relief.
The talks between Democrats and the Trump administration broke down last week.
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.
COLUMN-Oil market stalls as absence of signals compounds summer slowdown: Kemp - Reuters
COLUMN-Oil market stalls as absence of signals compounds summer slowdown: Kemp - Reuters:
Hedge funds’ oil trading largely dried up last week as the normal summer holiday slowdown was compounded by an absence of price or fundamental signals about the future direction of the market.
Hedge funds and other money managers purchased the equivalent of 13 million barrels in the six major petroleum futures and options contracts in the week to Aug. 4, after selling 40 million the week before.
Portfolio managers have left their overall position little changed since the end of June, according to an analysis of records published by ICE Futures Europe and the U.S. Commodity Futures Trading Commission.
There has been a marginal shift from holding positions in crude to refined fuels such as diesel and gasoil but otherwise weekly changes have been insignificant and show no discernible trend.
Hedge funds’ oil trading largely dried up last week as the normal summer holiday slowdown was compounded by an absence of price or fundamental signals about the future direction of the market.
Hedge funds and other money managers purchased the equivalent of 13 million barrels in the six major petroleum futures and options contracts in the week to Aug. 4, after selling 40 million the week before.
Portfolio managers have left their overall position little changed since the end of June, according to an analysis of records published by ICE Futures Europe and the U.S. Commodity Futures Trading Commission.
There has been a marginal shift from holding positions in crude to refined fuels such as diesel and gasoil but otherwise weekly changes have been insignificant and show no discernible trend.
Aramco’s dividend defences are triple-locked – Breakingviews
Aramco’s dividend defences are triple-locked – Breakingviews:
Saudi Aramco has deployed its triple-bottomed dividend defences sooner than expected. The Saudi state energy giant is handing $18.75 billion to investors this quarter even though earnings plunged to little more than a third of that amount. It’s a contrast with rivals BP and Royal Dutch Shell, which both trimmed their payouts. But even if crude demand plunges again, the $1.8 trillion firm has multiple ways of ensuring rewards for shareholders.
Given that the price of West Texas Intermediate crude briefly turned negative in April, Aramco’s net income of $6.6 billion in the three months to June is a testament to its efficiency. On average, each barrel of oil cost it just $7.5 to produce, including $4.7 per unit of capital spending. Even at an average price of just $23, Aramco remains comfortably in the black.
A gradual recovery in crude prices is Aramco boss Amin Nasser’s first wish. The black stuff is now trading at $44 a barrel, and with gasoline and diesel demand in China almost back at pre-crisis levels, Goldman Sachs analysts reckon it might finish the year as high as $63.
Even if prices remain subdued, however, Nasser has scope to ride out the storm. With just $6.1 billion of free cash flow in the quarter, Aramco will effectively borrow nearly $13 billion to fund its payout. After this year’s takeover of petrochemicals group Saudi Basic Industries, net debt has jumped to $286 billion. But that’s still only a fifth of total funding, compared with 36% for BP. To hit a similar ratio, Aramco would have to fund its $75 billion annual dividend entirely out of debt three years in a row.
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.
Union Properties completes Dh946m debt restructuring deal with Emirates NBD | Property – Gulf News
Union Properties completes Dh946m debt restructuring deal with Emirates NBD | Property – Gulf News:
Union Properties, the Dubai developer behind Uptown Mirdiff and other high-end communities, has completed a debt restructuring deal with Emirates NBD. Deal applies to the full Dh946 million outstandings the developer has with the bank.
Payment of the initial amount has also been made, as per the terms of the deal.
It was on Sunday that Union Properties announced it had put together a three-year turnaround plan, and backed it up with the launch of a new project near its Dubai Autodrome destination.
The UP share price was trading in the red early on Monday. Following the announcement, it recovered some of the lost ground.
Union Properties, the Dubai developer behind Uptown Mirdiff and other high-end communities, has completed a debt restructuring deal with Emirates NBD. Deal applies to the full Dh946 million outstandings the developer has with the bank.
Payment of the initial amount has also been made, as per the terms of the deal.
It was on Sunday that Union Properties announced it had put together a three-year turnaround plan, and backed it up with the launch of a new project near its Dubai Autodrome destination.
The UP share price was trading in the red early on Monday. Following the announcement, it recovered some of the lost ground.
False invoices at centre of new NMC probe | Financial Times
False invoices at centre of new NMC probe | Financial Times:
False invoices and forged documents covering hundreds of millions of dollars worth of purported medicine sales are at the centre of a new investigation into fraudulent raising of debt at NMC Health, the troubled healthcare group.
NMC, the largest private healthcare provider in the UAE, was once a rising star on the London Stock Exchange but it collapsed spectacularly earlier this year as it disclosed billions of dollars in unreported debt. Creditors placed it into administration in April.
Now Neopharma, a pharmaceuticals company controlled by NMC founder BR Shetty, is investigating whether false invoices relating to fake medicine sales underpinned large-scale debt raising at NMC.
According to documents seen by the Financial Times and people briefed on the situation, the invoices were at the centre of a scheme that is believed to have funnelled billions of UAE dirhams of loans to NMC via Neopharma and one of its partners.
False invoices and forged documents covering hundreds of millions of dollars worth of purported medicine sales are at the centre of a new investigation into fraudulent raising of debt at NMC Health, the troubled healthcare group.
NMC, the largest private healthcare provider in the UAE, was once a rising star on the London Stock Exchange but it collapsed spectacularly earlier this year as it disclosed billions of dollars in unreported debt. Creditors placed it into administration in April.
Now Neopharma, a pharmaceuticals company controlled by NMC founder BR Shetty, is investigating whether false invoices relating to fake medicine sales underpinned large-scale debt raising at NMC.
According to documents seen by the Financial Times and people briefed on the situation, the invoices were at the centre of a scheme that is believed to have funnelled billions of UAE dirhams of loans to NMC via Neopharma and one of its partners.
Aramco Still Aims for $15 Billion Deal With India’s Reliance - Bloomberg
Aramco Still Aims for $15 Billion Deal With India’s Reliance - Bloomberg:
Saudi Aramco said it’s still working on a deal to buy a $15 billion stake in Reliance Industries Ltd.’s refining and chemicals business, even as lower oil prices forces it to slash investment spending.
Mumbai-based Reliance’s shares fell in mid-July after Chairman Mukesh Ambani said a transaction had been delayed “due to unforeseen circumstances in the energy market and the Covid-19 situation.”
A deal with Reliance would help the world’s biggest crude exporter join the ranks of the top oil refiners and chemical makers. State-owned Aramco, which bought chemical firm Saudi Basic Industries Corp. for $70 billion this year, is already a major supplier of crude to India, while Reliance sells petroleum products such as gasoline to the kingdom.
“We are still in discussion with Reliance,” Aramco Chief Executive Officer Amin Nasser said on a call with reporters on Sunday. “The work is still on. We will update our shareholders in due course.”
Saudi Aramco said it’s still working on a deal to buy a $15 billion stake in Reliance Industries Ltd.’s refining and chemicals business, even as lower oil prices forces it to slash investment spending.
Mumbai-based Reliance’s shares fell in mid-July after Chairman Mukesh Ambani said a transaction had been delayed “due to unforeseen circumstances in the energy market and the Covid-19 situation.”
A deal with Reliance would help the world’s biggest crude exporter join the ranks of the top oil refiners and chemical makers. State-owned Aramco, which bought chemical firm Saudi Basic Industries Corp. for $70 billion this year, is already a major supplier of crude to India, while Reliance sells petroleum products such as gasoline to the kingdom.
“We are still in discussion with Reliance,” Aramco Chief Executive Officer Amin Nasser said on a call with reporters on Sunday. “The work is still on. We will update our shareholders in due course.”
Oil rises 1% on #Saudi Aramco's upbeat demand view, Iraq supply cut - Reuters
Oil rises 1% on Saudi Aramco's upbeat demand view, Iraq supply cut - Reuters:
Oil prices climbed on Monday, supported by Saudi optimism about Asian demand and an Iraqi pledge to deepen supply cuts, although uncertainty over a deal to shore up the U.S. economic recovery capped gains.
Brent crude LCOc1 futures rose 34 cents, or 0.8%, to $44.74 a barrel by 0641 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 47 cents, or 1.1%, to $41.69 a barrel.
Both benchmark contracts fell on Friday, hurt by demand concerns, but Brent still ended the week up 2.5%, with WTI up 2.4%.
“Comments from the weekend from Aramco are the driver at the moment,” said Michael McCarthy, market strategist at CMC Markets and Stockbroking.
Oil prices climbed on Monday, supported by Saudi optimism about Asian demand and an Iraqi pledge to deepen supply cuts, although uncertainty over a deal to shore up the U.S. economic recovery capped gains.
Brent crude LCOc1 futures rose 34 cents, or 0.8%, to $44.74 a barrel by 0641 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 47 cents, or 1.1%, to $41.69 a barrel.
Both benchmark contracts fell on Friday, hurt by demand concerns, but Brent still ended the week up 2.5%, with WTI up 2.4%.
“Comments from the weekend from Aramco are the driver at the moment,” said Michael McCarthy, market strategist at CMC Markets and Stockbroking.
MIDEAST STOCKS-Most major Gulf markets gain as financials jump - Reuters
MIDEAST STOCKS-Most major Gulf markets gain as financials jump - Reuters:
Most major Gulf stock markets advanced in early trade on Monday, supported by gains in their financial shares, although Qatar bucked the regional trend to trade lower.
Saudi Arabia’s benchmark index ticked up 0.2%, with Saudi Arabia Fertilizers rising 2.5% and the kingdom’s largest lender, National Commercial Bank, gaining 0.4%.
Oil giant Saudi Aramco firmed 0.3%. The state-owned company on Sunday reported a 73% plunge in profit for the second quarter, but it stuck with plans to pay $75 billion in dividends this year.
Dubai’s main share index edged up 0.1%, helped by a 0.6% increase in blue-chip developer Emaar Properties and a 0.5% gain in sharia-compliant lender Dubai Islamic Bank .
Most major Gulf stock markets advanced in early trade on Monday, supported by gains in their financial shares, although Qatar bucked the regional trend to trade lower.
Saudi Arabia’s benchmark index ticked up 0.2%, with Saudi Arabia Fertilizers rising 2.5% and the kingdom’s largest lender, National Commercial Bank, gaining 0.4%.
Oil giant Saudi Aramco firmed 0.3%. The state-owned company on Sunday reported a 73% plunge in profit for the second quarter, but it stuck with plans to pay $75 billion in dividends this year.
Dubai’s main share index edged up 0.1%, helped by a 0.6% increase in blue-chip developer Emaar Properties and a 0.5% gain in sharia-compliant lender Dubai Islamic Bank .