Oil falls from multi-year highs on firmer dollar, hike in UK COVID cases | Reuters
Crude oil prices fell nearly 2% from their highest level in years on Thursday as the dollar strengthened after the U.S. Federal Reserve signaled it might raise interest rates as soon as 2023.
Oil demand worries resurfaced after new coronavirus cases jumped in Britain, while supply concerns over the return of Iranian barrels also weighed on the market.
Traders, however, said Friday'spresidential elections in Iran could scuttle nuclear talks between Washington and Tehran and leave U.S. sanction on Iran's oil exports in place.
Brent futures fell $1.31, or 1.8%, to settle at $73.08 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.11, or 1.5%, to settle at $71.04.
On Wednesday, Brent settled at its highest since April 2019 and WTI at its highest since October 2018. Even though Thursday's declines were the biggest daily percentage drops since May, both benchmarks were still up over 40% so far this year.
Thursday, 17 June 2021
Creditors to Sell $463 Million of Air Berlin and Alitalia Claims - Bloomberg
Creditors to Sell $463 Million of Air Berlin and Alitalia Claims - Bloomberg
A group of creditors that bought Etihad Airways PJSC-linked bonds are preparing to auction $463 million of claims against insolvent airlines Alitalia and Air Berlin to recover some of their investment.
The trustee of bonds issued by EA Partners I and II -- two special purpose entities set up by the Abu Dhabi-based carrier -- hired Barclays Bank Plc to arrange the sale, according to a statement. Potential buyers will be able to access documentation on June 21 and the auction will take place within two weeks, it said.
Etihad sold $1.2 billion of bonds between 2015 and 2016 with the help of financier Lars Windhorst and Goldman Sachs Group Inc. to prop up loss-making airlines in which it owned stakes. The notes ended up in restructuring after Etihad changed its strategy and pulled the plug on its support for the airlines.
Air Berlin, Alitalia and India’s Jet Airways have since filed for insolvency, while creditors have so far failed to reach an agreement over Air Seychelles’s debt with the local government.
Investors in EA Partners I received just 43% of their money when the notes came due last year. The EA Partners II’s bondholders also received just a portion of the money owed when the notes matured earlier this month.
Bondholders including BlueBay Asset Management, Sandglass Capital Advisors, Sancta Capital and VR Global Partners have been unable to bring Etihad to the negotiating table over the last two years, as the carrier doesn’t recognize the debt as its own.
A group of creditors that bought Etihad Airways PJSC-linked bonds are preparing to auction $463 million of claims against insolvent airlines Alitalia and Air Berlin to recover some of their investment.
The trustee of bonds issued by EA Partners I and II -- two special purpose entities set up by the Abu Dhabi-based carrier -- hired Barclays Bank Plc to arrange the sale, according to a statement. Potential buyers will be able to access documentation on June 21 and the auction will take place within two weeks, it said.
Etihad sold $1.2 billion of bonds between 2015 and 2016 with the help of financier Lars Windhorst and Goldman Sachs Group Inc. to prop up loss-making airlines in which it owned stakes. The notes ended up in restructuring after Etihad changed its strategy and pulled the plug on its support for the airlines.
Air Berlin, Alitalia and India’s Jet Airways have since filed for insolvency, while creditors have so far failed to reach an agreement over Air Seychelles’s debt with the local government.
Investors in EA Partners I received just 43% of their money when the notes came due last year. The EA Partners II’s bondholders also received just a portion of the money owed when the notes matured earlier this month.
Bondholders including BlueBay Asset Management, Sandglass Capital Advisors, Sancta Capital and VR Global Partners have been unable to bring Etihad to the negotiating table over the last two years, as the carrier doesn’t recognize the debt as its own.
Bahrain's Batelco Telecom Considers #Saudi Dual Listing - Bloomberg
Bahrain's Batelco Telecom Considers Saudi Dual Listing - Bloomberg
Bahrain’s biggest telecommunications firm is planning to become the first company to have a dual listing of shares on Saudi Arabia’s stock exchange, according to people familiar with the matter.
Bahrain Telecommunications Co., also known as Batelco, has hired the investment arm of Samba Financial Group as an adviser on the deal, the people said, asking not to be identified as the information is private. No decision has been made and the company may decide against the dual listing, they said.
Betelco and Samba Capital didn’t immediately respond to requests for comments.
Saudi Arabia’s bourse has been trying to encourage Middle Eastern firms to dual list for years, without success. Aluminium Bahrain had considered a dual listing in 2014, but it never occurred.
The Saudi exchange is the largest and most actively traded in the Gulf region. Trading volumes on other exchanges have languished, leading several firms to delist from bourses in Dubai and Bahrain.
Saudi Tadawul Group Chief Executive Officer Khalid Al Hussan said in April that the exchange is reviewing cross-listings from companies in Bahrain and Abu Dhabi and two agreements were signed -- with the Abu Dhabi Securities Exchange and the Bahrain Bourse.
“There are companies that applied and hired financial advisers to be dual listed,” Saudi Exchange CEO Mohammed Al-Rumaih had said in April. “I expect this year we’ll witness the first dual-listed company.”
Bahrain’s biggest telecommunications firm is planning to become the first company to have a dual listing of shares on Saudi Arabia’s stock exchange, according to people familiar with the matter.
Bahrain Telecommunications Co., also known as Batelco, has hired the investment arm of Samba Financial Group as an adviser on the deal, the people said, asking not to be identified as the information is private. No decision has been made and the company may decide against the dual listing, they said.
Betelco and Samba Capital didn’t immediately respond to requests for comments.
Saudi Arabia’s bourse has been trying to encourage Middle Eastern firms to dual list for years, without success. Aluminium Bahrain had considered a dual listing in 2014, but it never occurred.
The Saudi exchange is the largest and most actively traded in the Gulf region. Trading volumes on other exchanges have languished, leading several firms to delist from bourses in Dubai and Bahrain.
Saudi Tadawul Group Chief Executive Officer Khalid Al Hussan said in April that the exchange is reviewing cross-listings from companies in Bahrain and Abu Dhabi and two agreements were signed -- with the Abu Dhabi Securities Exchange and the Bahrain Bourse.
“There are companies that applied and hired financial advisers to be dual listed,” Saudi Exchange CEO Mohammed Al-Rumaih had said in April. “I expect this year we’ll witness the first dual-listed company.”
#UAE central bank raises benchmark interest rate in step with Fed | Reuters
UAE central bank raises benchmark interest rate in step with Fed | Reuters
The United Arab Emirates central bank raised its key overnight interest rate by 5 basis points on Thursday, in step with a similar move by the U.S. Federal Reserve a day earlier.
The UAE's base rate for overnight deposits is anchored to the Fed's Interest on Excess Reserves (IOER), which the U.S. central bank raised by 5 basis points to 0.15% at the end of a two-day policy meeting on Wednesday.
The UAE central bank said in a statement it had also raised its base rate to 0.15%.
"This decision was taken following the US Federal Reserve Board’s yesterday’s announcement to increase the Interest on Excess Reserves (IOER) by 5 basis points," it said.
The central bank also decided to maintain the rate applicable to borrowing short-term liquidity through all of the central bank's standing credit facilities at 50 basis points above the base rate, it said in the statement.
The United Arab Emirates central bank raised its key overnight interest rate by 5 basis points on Thursday, in step with a similar move by the U.S. Federal Reserve a day earlier.
The UAE's base rate for overnight deposits is anchored to the Fed's Interest on Excess Reserves (IOER), which the U.S. central bank raised by 5 basis points to 0.15% at the end of a two-day policy meeting on Wednesday.
The UAE central bank said in a statement it had also raised its base rate to 0.15%.
"This decision was taken following the US Federal Reserve Board’s yesterday’s announcement to increase the Interest on Excess Reserves (IOER) by 5 basis points," it said.
The central bank also decided to maintain the rate applicable to borrowing short-term liquidity through all of the central bank's standing credit facilities at 50 basis points above the base rate, it said in the statement.
Oil tumbles 3% from multi-year highs on stronger dollar | Reuters
Oil tumbles 3% from multi-year highs on stronger dollar | Reuters
Oil prices slumped nearly 3% from their highest level in years on Thursday as the U.S. dollar strengthened after the Federal Reserve signaled it might raise interest rates as soon as 2023 and hopes the United States and Iran could come to a nuclear agreement.
But an upcoming election in Iran on Friday could scuttle the nuclear talks and leave U.S. sanction on Iran's oil exports in place.
Brent futures fell $2.07, or 2.8%, to $72.32 a barrel by 12:22 p.m. EDT (1622 GMT), while U.S. crude fell $2.00, or 2.8%, to $70.15.
On Wednesday, Brent settled at its highest since April 2019 and WTI at its highest since October 2018.
The U.S. dollar strengthened to its highest since mid April against a basket of other currencies (.DXY) after the Federal Reserve signaled it might raise interest rates at a much faster pace than assumed.
Oil prices slumped nearly 3% from their highest level in years on Thursday as the U.S. dollar strengthened after the Federal Reserve signaled it might raise interest rates as soon as 2023 and hopes the United States and Iran could come to a nuclear agreement.
But an upcoming election in Iran on Friday could scuttle the nuclear talks and leave U.S. sanction on Iran's oil exports in place.
Brent futures fell $2.07, or 2.8%, to $72.32 a barrel by 12:22 p.m. EDT (1622 GMT), while U.S. crude fell $2.00, or 2.8%, to $70.15.
On Wednesday, Brent settled at its highest since April 2019 and WTI at its highest since October 2018.
The U.S. dollar strengthened to its highest since mid April against a basket of other currencies (.DXY) after the Federal Reserve signaled it might raise interest rates at a much faster pace than assumed.
#SaudiArabia Pension, Unemployment Insurance Funds to Combine Into One Entity - Bloomberg
Saudi Arabia Pension, Unemployment Insurance Funds to Combine Into One Entity - Bloomberg
Saudi Arabia will combine two state-run pension and unemployment insurance funds into an entity with almost $29 billion of local and foreign stocks.
The cabinet approved the combination of the Public Pension Agency and the General Organization of Social Insurance, also known as GOSI. It’ll boost investment returns, reduce costs and help with their diversification, Finance Minister and GOSI Chairman Mohammed Al Jadaan said in a statement.
The funds hold significant stakes in Saudi Arabian firms, including a combined $8.5 billion holding in Saudi National Bank and a $4.3 billion stake in Al Rajhi Bank, according to data compiled by Bloomberg. They also hold shares worth $207 million in AstraZeneca Plc and $170 million in HSBC Holdings Plc. Their portfolios also include real estate and bonds.
Saudi Arabia has been taking steps to merge and restructure various entities as it looks to boost efficiency as part of a plan to diversify the economy away from oil. The Public Investment Fund, the country’s $430 billion sovereign wealth fund, is mandated with investing in new industries inside the kingdom, while also buying stakes abroad.
The kingdom has also bought several local funds focused on sector including real estate, industry, and agriculture together under the National Development Fund to reduce overlap and costs.
Saudi Arabia will combine two state-run pension and unemployment insurance funds into an entity with almost $29 billion of local and foreign stocks.
The cabinet approved the combination of the Public Pension Agency and the General Organization of Social Insurance, also known as GOSI. It’ll boost investment returns, reduce costs and help with their diversification, Finance Minister and GOSI Chairman Mohammed Al Jadaan said in a statement.
The funds hold significant stakes in Saudi Arabian firms, including a combined $8.5 billion holding in Saudi National Bank and a $4.3 billion stake in Al Rajhi Bank, according to data compiled by Bloomberg. They also hold shares worth $207 million in AstraZeneca Plc and $170 million in HSBC Holdings Plc. Their portfolios also include real estate and bonds.
Saudi Arabia has been taking steps to merge and restructure various entities as it looks to boost efficiency as part of a plan to diversify the economy away from oil. The Public Investment Fund, the country’s $430 billion sovereign wealth fund, is mandated with investing in new industries inside the kingdom, while also buying stakes abroad.
The kingdom has also bought several local funds focused on sector including real estate, industry, and agriculture together under the National Development Fund to reduce overlap and costs.
Investor sells $300 mln worth of shares in #UAE's ADCB -term sheet | Reuters
Investor sells $300 mln worth of shares in UAE's ADCB -term sheet | Reuters
An undisclosed investor has sold 1.1 billion dirhams ($300 million) worth of shares in Abu Dhabi Commercial Bank (ADCB.AD), United Arab Emirates' third-biggest lender, a term sheet seen by Reuters showed.
The investor sold 164 million shares at 6.70 dirhams a share through Bank of America Securities and Emirates NBD Capital, the term sheet said.
ADCB shares were down nearly 1% in late morning trade at 7.02 dirhams, recovering from an early low of 6.95 dirhams.
An undisclosed investor has sold 1.1 billion dirhams ($300 million) worth of shares in Abu Dhabi Commercial Bank (ADCB.AD), United Arab Emirates' third-biggest lender, a term sheet seen by Reuters showed.
The investor sold 164 million shares at 6.70 dirhams a share through Bank of America Securities and Emirates NBD Capital, the term sheet said.
ADCB shares were down nearly 1% in late morning trade at 7.02 dirhams, recovering from an early low of 6.95 dirhams.
MIDEAST STOCKS #Dubai bourse gains, major Gulf markets fall | Reuters
MIDEAST STOCKS Dubai bourse gains, major Gulf markets fall | Reuters
Most major stock markets in the Gulf ended lower on Thursday, although the Dubai index was boosted by gains in financial shares.
Dubai's main share index (.DMFGI) finished 0.8% higher, buoyed by a 1.8% rise in Emirates NBD Bank (ENBD.DU) and a 0.8% increase in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
The United Arab Emirates (UAE) central bank raised its key overnight interest rate by 5 basis points on Thursday, in step with a similar move by the U.S. Federal Reserve a day earlier. read more
The UAE central bank also decided to maintain the rate applicable to borrowing short-term liquidity through all of its standing credit facilities at 50 basis points above the base rate.
Saudi Arabia's benchmark index (.TASI) gave up early gains to close flat.
However, the index registered its sixth weekly gain.
The kingdom's April crude oil exports fell to their lowest level since June 2020, official data showed. read more
In Abu Dhabi, the index (.ADI) retreated 0.8%, hit by a 2% fall in First Abu Dhabi Bank (FAB.AD), the country's largest lender, and a 2.7% decline in Abu Dhabi Commercial Bank (ADCB) (ADCB.AD).
An undisclosed investor has sold 1.1 billion dirhams ($299.52 million) worth of shares in ADCB. read more
The investor sold 164 million shares at 6.70 dirhams a share through Bank of America Securities and Emirates NBD Capital.
The Qatari benchmark (.QSI) fell 0.4%, pressured by a 1.2% fall in Qatar Islamic Bank (QISB.QA) and a 1% decrease in Qatar National Bank (QNBK.QA).
The Arab state's cabinet said on Wednesday it would allow up to 80% of public and private sector employees to return to offices from June 18 as a part of its plan to gradually ease coronavirus-related measures. read more
Qatar decided early in May to lift coronavirus-related measures in four phases starting on May 28 and ending on July 30. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) lost 0.2%, with top lender Commercial International Bank (COMI.CA) losing 1.1%.
Most major stock markets in the Gulf ended lower on Thursday, although the Dubai index was boosted by gains in financial shares.
Dubai's main share index (.DMFGI) finished 0.8% higher, buoyed by a 1.8% rise in Emirates NBD Bank (ENBD.DU) and a 0.8% increase in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
The United Arab Emirates (UAE) central bank raised its key overnight interest rate by 5 basis points on Thursday, in step with a similar move by the U.S. Federal Reserve a day earlier. read more
The UAE central bank also decided to maintain the rate applicable to borrowing short-term liquidity through all of its standing credit facilities at 50 basis points above the base rate.
Saudi Arabia's benchmark index (.TASI) gave up early gains to close flat.
However, the index registered its sixth weekly gain.
The kingdom's April crude oil exports fell to their lowest level since June 2020, official data showed. read more
In Abu Dhabi, the index (.ADI) retreated 0.8%, hit by a 2% fall in First Abu Dhabi Bank (FAB.AD), the country's largest lender, and a 2.7% decline in Abu Dhabi Commercial Bank (ADCB) (ADCB.AD).
An undisclosed investor has sold 1.1 billion dirhams ($299.52 million) worth of shares in ADCB. read more
The investor sold 164 million shares at 6.70 dirhams a share through Bank of America Securities and Emirates NBD Capital.
The Qatari benchmark (.QSI) fell 0.4%, pressured by a 1.2% fall in Qatar Islamic Bank (QISB.QA) and a 1% decrease in Qatar National Bank (QNBK.QA).
The Arab state's cabinet said on Wednesday it would allow up to 80% of public and private sector employees to return to offices from June 18 as a part of its plan to gradually ease coronavirus-related measures. read more
Qatar decided early in May to lift coronavirus-related measures in four phases starting on May 28 and ending on July 30. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) lost 0.2%, with top lender Commercial International Bank (COMI.CA) losing 1.1%.
MIDEAST STOCKS Major Gulf indexes mixed, #Saudi market gains | Reuters
MIDEAST STOCKS Major Gulf indexes mixed, Saudi market gains | Reuters
Major Gulf stock markets were mixed in early trade on Thursday with the Saudi index supported by gains in financial shares.
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, helped by a 0.2% gain in Al Rajhi Bank (1120.SE) and 0.8% rise in Riyad Bank (1010.SE).
Goldman Sachs raised its expectations for Saudi Arabian growth this year and in 2022 amid rising oil prices and an increase in oil output by the kingdom.
Dubai's main share index (.TASI) added 0.2%, with diversified investment group Dubai Investments (DINV.DU) rising 1.2%, while Emaar Development (EMAARDEV.DU) advanced 1.6%.
In Abu Dhabi, the index (.ADI) dropped 0.4%, hit by a 1.1% fall in the country's largest lender and a 1% drop in Abu Dhabi Commercial Bank (ADCB) (ADCB.AD).
An undisclosed investor has sold 1.1 billion dirhams ($299.52 million) worth of shares in ADCB, a term sheet seen by Reuters showed. read more
The Qatari benchmark (.QSI) declined 0.4%, with the index set for a third consecutive fall.
Qatar National Bank (QNBK.QA), the Gulf's biggest bank, retreated 0.8%, while Commercial Bank (COMB.QA) was down 0.5%.
The Arab state's cabinet said on Wednesday it would allow up to 80% of public and private sector employees to return to offices from June 18 as a part of its plan to gradually ease coronavirus-related measures. read more
Qatar decided early in May to lift coronavirus-related measures in four phases starting on May 28 and ending on July 30.
Major Gulf stock markets were mixed in early trade on Thursday with the Saudi index supported by gains in financial shares.
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, helped by a 0.2% gain in Al Rajhi Bank (1120.SE) and 0.8% rise in Riyad Bank (1010.SE).
Goldman Sachs raised its expectations for Saudi Arabian growth this year and in 2022 amid rising oil prices and an increase in oil output by the kingdom.
Dubai's main share index (.TASI) added 0.2%, with diversified investment group Dubai Investments (DINV.DU) rising 1.2%, while Emaar Development (EMAARDEV.DU) advanced 1.6%.
In Abu Dhabi, the index (.ADI) dropped 0.4%, hit by a 1.1% fall in the country's largest lender and a 1% drop in Abu Dhabi Commercial Bank (ADCB) (ADCB.AD).
An undisclosed investor has sold 1.1 billion dirhams ($299.52 million) worth of shares in ADCB, a term sheet seen by Reuters showed. read more
The Qatari benchmark (.QSI) declined 0.4%, with the index set for a third consecutive fall.
Qatar National Bank (QNBK.QA), the Gulf's biggest bank, retreated 0.8%, while Commercial Bank (COMB.QA) was down 0.5%.
The Arab state's cabinet said on Wednesday it would allow up to 80% of public and private sector employees to return to offices from June 18 as a part of its plan to gradually ease coronavirus-related measures. read more
Qatar decided early in May to lift coronavirus-related measures in four phases starting on May 28 and ending on July 30.