Oil steadies; virus concerns weigh as hurricane heads to U.S. - Reuters:
Oil prices steadied on Wednesday, pressured by worries about the demand outlook during the coronavirus pandemic but buoyed as U.S. producers shut output in the Gulf of Mexico ahead of Hurricane Laura.
Renewed worries over the pandemic, which has squeezed demand and sent prices to record lows in April, dampened market sentiment after reports this week of patients being re-infected, raising concerns about future immunity.
Brent crude LCOc1 fell 22 cents to settle at $45.64 a barrel, while U.S. West Texas Intermediate crude CLc1 rose 4 cents to $43.39 a barrel. Both benchmarks settled at a five-month high on Tuesday.
The U.S. energy industry was preparing for Hurricane Laura, forecast to become a Category 4 hurricane with heavy rains and catastrophic, 130 mile-per-hour (209 kph) winds that will drive ocean waters up to 30 miles (48 km) inland, forecasters said. Nine oil-processing plants that convert nearly 2.9 million barrels per day of oil into fuel, and account for about 15% of U.S. processing, were shutting down.
Wednesday, 26 August 2020
Kingdom Holding CEO Talal Ibrahim Al Maiman Says Everything Is Overvalued - Bloomberg
Kingdom Holding CEO Talal Ibrahim Al Maiman Says Everything Is Overvalued - Bloomberg:
Talal Ibrahim Al Maiman, chief executive officer at Kingdom Holding Co., discusses his investment portfolio, his strategy and where he’s finding opportunities. He speaks on “Bloomberg Surveillance.” (Source: Bloomberg)
Talal Ibrahim Al Maiman, chief executive officer at Kingdom Holding Co., discusses his investment portfolio, his strategy and where he’s finding opportunities. He speaks on “Bloomberg Surveillance.” (Source: Bloomberg)
Oil holds near five-month high on U.S. output cuts, virus concern weighs - Reuters
Oil holds near five-month high on U.S. output cuts, virus concern weighs - Reuters:
Oil edged up towards $46 a barrel on Wednesday, close to its highest since March, lifted by U.S. producers shutting most of their offshore Gulf of Mexico output ahead of Hurricane Laura and a report showing a drop in U.S. crude inventories.
Renewed worries over the COVID-19 pandemic, which has squeezed demand and sent prices to record lows in April, limited gains after reports this week of patients being re-infected, raising concerns about future immunity.
Brent crude LCOc1 rose 8 cents, or 0.2%, to $45.94 a barrel by 1331 GMT, while U.S. West Texas Intermediate crude CLc1 added 26 cents, or 0.6%, to $43.61. Both benchmarks settled at a five-month high on Tuesday.
“Oil traders will be preoccupied with the hurricane today,” said Tamas Varga of broker PVM. “Once the danger passes, demand considerations will come into focus again.”
Oil edged up towards $46 a barrel on Wednesday, close to its highest since March, lifted by U.S. producers shutting most of their offshore Gulf of Mexico output ahead of Hurricane Laura and a report showing a drop in U.S. crude inventories.
Renewed worries over the COVID-19 pandemic, which has squeezed demand and sent prices to record lows in April, limited gains after reports this week of patients being re-infected, raising concerns about future immunity.
Brent crude LCOc1 rose 8 cents, or 0.2%, to $45.94 a barrel by 1331 GMT, while U.S. West Texas Intermediate crude CLc1 added 26 cents, or 0.6%, to $43.61. Both benchmarks settled at a five-month high on Tuesday.
“Oil traders will be preoccupied with the hurricane today,” said Tamas Varga of broker PVM. “Once the danger passes, demand considerations will come into focus again.”
#UAE, #AbuDhabi News: NMC Health Faces Fees of $140 Million for Bankruptcy - Bloomberg
UAE, Abu Dhabi News: NMC Health Faces Fees of $140 Million for Bankruptcy - Bloomberg:
The restructuring of NMC Health Plc through an Abu Dhabi court could cost as much as $140 million in consultancy and legal fees, almost half of what the hospital operator’s administrators are raising in new funding from creditors.
“It’s not cheap and we have the best advisers and the best minds in the world working on the preservation of this business,” acting Chief Executive Officer Michael Davis said in a recent interview. “If you look at the amount of money that has gone to other parties or that the company has lost, this is money well spent.”
NMC’s court-appointed overseers are applying for bankruptcy proceedings through Abu Dhabi Global Markets, the financial center of the United Arab Emirates capital. They’re doing so as the company’s complex legal structure across different geographies makes it more efficient to oversee the process in one jurisdiction, where the bulk of its operations are based.
Founded by Indian entrepreneur Bavaguthu Raghuram Shetty, NMC had a peak market value of $10 billion on the London Stock Exchange before the uncovering of billions of dollars of undisclosed debt pushed it into administration. Caretakers Alvarez & Marsal Inc. are now working on a turnaround plan that will see NMC focus on its UAE and Oman domestic markets, while selling non-core international assets.
The restructuring of NMC Health Plc through an Abu Dhabi court could cost as much as $140 million in consultancy and legal fees, almost half of what the hospital operator’s administrators are raising in new funding from creditors.
“It’s not cheap and we have the best advisers and the best minds in the world working on the preservation of this business,” acting Chief Executive Officer Michael Davis said in a recent interview. “If you look at the amount of money that has gone to other parties or that the company has lost, this is money well spent.”
NMC’s court-appointed overseers are applying for bankruptcy proceedings through Abu Dhabi Global Markets, the financial center of the United Arab Emirates capital. They’re doing so as the company’s complex legal structure across different geographies makes it more efficient to oversee the process in one jurisdiction, where the bulk of its operations are based.
Founded by Indian entrepreneur Bavaguthu Raghuram Shetty, NMC had a peak market value of $10 billion on the London Stock Exchange before the uncovering of billions of dollars of undisclosed debt pushed it into administration. Caretakers Alvarez & Marsal Inc. are now working on a turnaround plan that will see NMC focus on its UAE and Oman domestic markets, while selling non-core international assets.
#Saudi Billionaire’s Firm Eyes Europe With U.S. Stocks Overvalued - Bloomberg
Saudi Billionaire’s Firm Eyes Europe With U.S. Stocks Overvalued - Bloomberg:
The investment firm of Saudi Arabian billionaire Prince Alwaleed bin Talal is looking for deals in Europe because U.S. assets, particularly technology stocks, are seen as overpriced.
“The markets are really exuberant in the United States versus Europe,” Kingdom Holding Chief Executive Officer Talal Al Maiman said in an interview with Bloomberg TV on Wednesday. “Europe is actually a much better place to invest in at this time.”
Al Maiman adds to a growing list of investors including BlackRock Inc. and Manulife Investment Management that are nervous about U.S. equities hitting all-time highs during an economic crisis and an election year.
Prince Alwaleed, who owns 95% of Kingdom Holding, has stakes in Citigroup Inc., ride-hailing firm Lyft Inc., and Accor SA through the investment firm. He has also made several high-profile technology investments, including $250 million into Snap Inc. and $267 million in music-streaming service Deezer in 2018.
The investment firm of Saudi Arabian billionaire Prince Alwaleed bin Talal is looking for deals in Europe because U.S. assets, particularly technology stocks, are seen as overpriced.
“The markets are really exuberant in the United States versus Europe,” Kingdom Holding Chief Executive Officer Talal Al Maiman said in an interview with Bloomberg TV on Wednesday. “Europe is actually a much better place to invest in at this time.”
Al Maiman adds to a growing list of investors including BlackRock Inc. and Manulife Investment Management that are nervous about U.S. equities hitting all-time highs during an economic crisis and an election year.
Prince Alwaleed, who owns 95% of Kingdom Holding, has stakes in Citigroup Inc., ride-hailing firm Lyft Inc., and Accor SA through the investment firm. He has also made several high-profile technology investments, including $250 million into Snap Inc. and $267 million in music-streaming service Deezer in 2018.
MIDEAST STOCKS-Most Gulf bourses fall as financial shares drag; #Saudi up - Reuters
MIDEAST STOCKS-Most Gulf bourses fall as financial shares drag; Saudi up - Reuters:
Most major stock markets in the Gulf ended lower on Wednesday, pressured by losses in financial shares, although the Saudi index bucked the trend to close higher.
Saudi Arabia's benchmark index edged up 0.2%, helped by a 2.2% rise in Banque Saudi Fransi and a 4.1% jump in Sahara International Petrochemical Company.
Elsewhere, Saudi British Bank (SABB) reversed earlier losses to close up 1.6%.
SABB on Tuesday reported a net loss of 6.87 billion riyals ($1.83 billion) in the quarter ended June 30, compared with a loss of 196 million riyals a year earlier.
Dubai's main share index fell 0.7%, with sharia-compliant lender Dubai Islamic Bank losing 1.9% and blue-chip developer Emaar Properties down 1.7%.
In Abu Dhabi, the index dropped 0.6%, dragged down by a 1.2% fall in the country's largest lender First Abu Dhabi Bank and 3.7% slide in Aldar Properties.
Abu Dhabi raised $5 billion through a three-tranche bond offering on Tuesday, the oil-rich Gulf emirate's third foray into the international debt markets this year to prop up its finances following a fall in crude prices.
In Qatar, the index eased 0.1%, hurt by a 0.9% fall in petrochemical firm Industries Qatar and a 0.5% drop in Commercial Bank.
Most major stock markets in the Gulf ended lower on Wednesday, pressured by losses in financial shares, although the Saudi index bucked the trend to close higher.
Saudi Arabia's benchmark index edged up 0.2%, helped by a 2.2% rise in Banque Saudi Fransi and a 4.1% jump in Sahara International Petrochemical Company.
Elsewhere, Saudi British Bank (SABB) reversed earlier losses to close up 1.6%.
SABB on Tuesday reported a net loss of 6.87 billion riyals ($1.83 billion) in the quarter ended June 30, compared with a loss of 196 million riyals a year earlier.
Dubai's main share index fell 0.7%, with sharia-compliant lender Dubai Islamic Bank losing 1.9% and blue-chip developer Emaar Properties down 1.7%.
In Abu Dhabi, the index dropped 0.6%, dragged down by a 1.2% fall in the country's largest lender First Abu Dhabi Bank and 3.7% slide in Aldar Properties.
Abu Dhabi raised $5 billion through a three-tranche bond offering on Tuesday, the oil-rich Gulf emirate's third foray into the international debt markets this year to prop up its finances following a fall in crude prices.
In Qatar, the index eased 0.1%, hurt by a 0.9% fall in petrochemical firm Industries Qatar and a 0.5% drop in Commercial Bank.
#AbuDhabi Returns to Debt Market With Longest Gulf Bond Ever - Bloomberg
Abu Dhabi Returns to Debt Market With Longest Gulf Bond Ever - Bloomberg:
Abu Dhabi returned to the dollar debt market, selling the longest bond ever offered by Gulf Arab governments as countries in the region raise cash buffers to weather the pandemic and low oil prices.
The capital of the United Arab Emirates raised $5 billion from a three-part offering, according to a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified. Abu Dhabi offered a yield of 65 basis points over U.S. Treasuries on $2 billion of notes due September 2023, 105 basis points for its $1.5 billion in long 10-year securities and 2.7% for $1.5 billion in bonds due in half a century, which will be its longest yet. Final pricing on all three tranches was lower than initial guidance.
The government is taking advantage of low borrowing costs and investor demand for higher returns as it seeks to bolster its finances, with oil prices below what it needs to balance its budget. The wealthiest of the seven emirates that make up the UAE, its debt is rated AA by S&P Global Ratings.
Abu Dhabi returned to the dollar debt market, selling the longest bond ever offered by Gulf Arab governments as countries in the region raise cash buffers to weather the pandemic and low oil prices.
The capital of the United Arab Emirates raised $5 billion from a three-part offering, according to a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified. Abu Dhabi offered a yield of 65 basis points over U.S. Treasuries on $2 billion of notes due September 2023, 105 basis points for its $1.5 billion in long 10-year securities and 2.7% for $1.5 billion in bonds due in half a century, which will be its longest yet. Final pricing on all three tranches was lower than initial guidance.
The government is taking advantage of low borrowing costs and investor demand for higher returns as it seeks to bolster its finances, with oil prices below what it needs to balance its budget. The wealthiest of the seven emirates that make up the UAE, its debt is rated AA by S&P Global Ratings.
GCC corporate earnings plunge 60.7% in Q2 | ZAWYA MENA Edition
GCC corporate earnings plunge 60.7% in Q2 | ZAWYA MENA Edition:
Combined profit of most GCC-listed companies plummeted 60.7 per cent year-on-year in the second quarter 2020 to $15.7 billion as compared to $39.9 billion in the same 2019 period, reflecting the impact of the Covid-19 lockdown, a study by Kamco Invest has revealed.
In terms of quarter-on-quarter performance, earnings of 55 per cent of the listed companies that reported their second-quarter performance declined by 38.8 per cent in the second quarter. "The decline in earnings was broad-based as all of the GCC exchanges reported a year-on-year decline," said Mohamed Ali Omar, analyst at Kamco Invest.
The International Monetary Fund said the economy of the six GCC member countries will shrink by 7.6 per cent in 2020 amid low oil prices and the coronavirus outbreak.
A recent report by S&P Global Ratings said the key focus for GCC corporates would be on preservation rather than growth. A sharp drop in oil prices and a negative impact from Covid-19 measures have been weighing on corporates in the region and worldwide. New investments are expected to take a back seat for most sectors, with the key priorities for businesses being cost optimisation, management of liquidity, and cash-flow preservation, the ratings agency said.
Combined profit of most GCC-listed companies plummeted 60.7 per cent year-on-year in the second quarter 2020 to $15.7 billion as compared to $39.9 billion in the same 2019 period, reflecting the impact of the Covid-19 lockdown, a study by Kamco Invest has revealed.
In terms of quarter-on-quarter performance, earnings of 55 per cent of the listed companies that reported their second-quarter performance declined by 38.8 per cent in the second quarter. "The decline in earnings was broad-based as all of the GCC exchanges reported a year-on-year decline," said Mohamed Ali Omar, analyst at Kamco Invest.
The International Monetary Fund said the economy of the six GCC member countries will shrink by 7.6 per cent in 2020 amid low oil prices and the coronavirus outbreak.
A recent report by S&P Global Ratings said the key focus for GCC corporates would be on preservation rather than growth. A sharp drop in oil prices and a negative impact from Covid-19 measures have been weighing on corporates in the region and worldwide. New investments are expected to take a back seat for most sectors, with the key priorities for businesses being cost optimisation, management of liquidity, and cash-flow preservation, the ratings agency said.
#Qatar's Masraf Al Rayan markets 5-yr dollar sukuk - document - Reuters
Qatar's Masraf Al Rayan markets 5-yr dollar sukuk - document - Reuters:
Qatari Islamic lender Masraf Al Rayan began marketing a five-year U.S. dollar-denominated sukuk on Wednesday, a document showed.
It gave an initial price guidance of 220 basis points over midswaps for the Islamic bonds, the document from one of the banks arranging the deal showed. It is expected to close later on Wednesday.
Al Rayan Investment, Credit Agricole, HSBC, Mizuho, MUFG, QNB Capital, Societe Generale and Standard Chartered were hired to arrange the debt sale.
Qatari Islamic lender Masraf Al Rayan began marketing a five-year U.S. dollar-denominated sukuk on Wednesday, a document showed.
It gave an initial price guidance of 220 basis points over midswaps for the Islamic bonds, the document from one of the banks arranging the deal showed. It is expected to close later on Wednesday.
Al Rayan Investment, Credit Agricole, HSBC, Mizuho, MUFG, QNB Capital, Societe Generale and Standard Chartered were hired to arrange the debt sale.
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.
Brent prices climb on U.S. output cuts, China trade deal hopes - Reuters
Brent prices climb on U.S. output cuts, China trade deal hopes - Reuters:
Brent crude oil prices rose on Wednesday, lifted by U.S. producers shutting most of their offshore output in the Gulf of Mexico ahead of Hurricane Laura and optimism over China-U.S. trade talks.
But gains were capped amid renewed concern over the coronavirus pandemic, which has squeezed fuel demand, after reports from Europe and Asia of patients being re-infected with COVID-19, raising concerns about future immunity.
Brent crude oil futures LCOc1 added 10 cents, or 0.2%, to $45.96 a barrel by 0642 GMT, while U.S. West Texas Intermediate crude CLc1 fell 5 cents, or 0.1%, to $43.30 a barrel. Both benchmarks settled at a five-month high on Tuesday.
“The hurricane impact is short-term bullish, but that could be short-lived if the damage to the Texas and Louisiana coasts cripples demand for an extended time,” said Edward Moya, senior market analyst at OANDA in New York.
Brent crude oil prices rose on Wednesday, lifted by U.S. producers shutting most of their offshore output in the Gulf of Mexico ahead of Hurricane Laura and optimism over China-U.S. trade talks.
But gains were capped amid renewed concern over the coronavirus pandemic, which has squeezed fuel demand, after reports from Europe and Asia of patients being re-infected with COVID-19, raising concerns about future immunity.
Brent crude oil futures LCOc1 added 10 cents, or 0.2%, to $45.96 a barrel by 0642 GMT, while U.S. West Texas Intermediate crude CLc1 fell 5 cents, or 0.1%, to $43.30 a barrel. Both benchmarks settled at a five-month high on Tuesday.
“The hurricane impact is short-term bullish, but that could be short-lived if the damage to the Texas and Louisiana coasts cripples demand for an extended time,” said Edward Moya, senior market analyst at OANDA in New York.