Oil Takes Fresh Hit as China Says Stockpile Release in the Works - Bloomberg

Oil Takes Fresh Hit as China Says Stockpile Release in the Works - Bloomberg

PRICES:
Western Texas Intermediate crude for December delivery rose 65 cents to settle at $79.01 a barrel in New York. Brent for January settlement rose 96 cents to settle at $81.24 a barrel.

Oil rose in choppy trade as recent declines below $80 lured some investors back for bargains while the market waited to see whether the U.S. would match China’s plans to release strategic reserves.

Futures in New York closed up 0.8% on Thursday. Buyers were attracted by lower prices after both crude benchmarks fell below their 50-day moving averages in the previous session. Political headlines kept trading volatile. China is releasing some oil from its strategic reserves days after the U.S. invited it to participate in a joint sale as both nations work together to keep a lid on energy costs.

“With lots of political talk trying to chase the market lower, WTI seems to be getting some support at $78, for now, after coming off from the mid-$80s last week,” said Spencer Vosko, director for crude oil at Black Diamond Commodities LLC.

Oil hovers above six-week low as China readies crude reserve release | Reuters

Oil hovers above six-week low as China readies crude reserve release | Reuters

Oil prices rose slightly on Thursday, bouncing after a drop to six-week lows as investors wondered about how much crude major economies would release from their strategic reserves and how much that would ease global crude demand pressures.

Prices fell to the six-week lows early in the session as China said it was moving to tap reserves. On Wednesday, Reuters reported that the United States was asking large consuming nations to consider a stockpile release to lower prices.

Washington's bid to cool markets, asking China to join a coordinated action for the first time, comes as high gasoline prices and other inflationary pressures have sparked a political backlash. read more

"Japan and South Korea have shown resistance to releasing reserves, so we're coming back up a little bit," said Phil Flynn, Senior Analyst at Price Futures Group in Chicago. "The market is going to continue to be nervous, because it is on guard from a release."

Brent crude was up 53 cents, or 0.7%, at $80.81 a barrel at 11:55 ET (1655 GMT). The session low of $79.28 was the lowest since Oct. 7. U.S. West Texas Intermediate crude futures were up 18 cents at $78.54 a barrel. It also fell during the session to the lowest since early last month at $77.08.

Colombian Pension Fund Proteccion Is Key in Billionaire's Bid for Food Firm - Bloomberg

Colombian Pension Fund Proteccion Is Key in Billionaire's Bid for Food Firm - Bloomberg

Billionaire Jaime Gilinski’s takeover bid for a majority stake in Colombian food producer Nutresa SA has placed the spotlight on a pension fund manager that may hold the key to whether the transaction goes through.

Proteccion SA, which manages retirement funds with a 5.2% stake in the Medellin-based food producer, is closely associated with the two largest holders of Nutresa -- Grupo de Inversiones Suramericana SA, or Sura, and Grupo Argos SA, which combined hold another 45.3%. If they don’t want to sell, that means Proteccion could tip the scales one way or the other should minority investors decide to tender at the 38% premium on offer.

Nutresa, Proteccion, Sura and Argos form part of an exclusive business group that hails from Medellin called the Grupo Empresarial Antioqueño, or GEA. The coalition runs large swathes of Colombia’s economy and publicly traded conglomerates, and since the 1970s and 1980s has been able to fend off hostile acquisition bids.

But now Gilinski, who has made the bulk of his estimated $4.4 billion fortune in banking and private-equity investments, is looking to upset that dynamic. He’s partnered with Abu Dhabi’s Royal Group to offer to buy a minimum of 50.1% of shares and a maximum of 62.6%, according to people familiar with the plans. The offer, at $7.71 per share, represents a 38% premium from where the stock had been trading before the announcement.

Ford, GlobalFoundries say they will work together to boost chip supply | Reuters

Ford, GlobalFoundries say they will work together to boost chip supply | Reuters

Ford Motor Co (F.N) and chip manufacturer GlobalFoundries Inc (GFS.O) on Thursday said they plan to work together to boost supplies for the automaker's vehicles and the broader U.S. auto industry but gave few details about what the deal entails.

The two companies announced a non-binding agreement that could involve increasing production capacity for Ford's current lineup and performing joint research and development on several categories of chips that are likely to be key to future cars, such as battery-management systems and self-driving systems.

Over the past year, a global chip shortage has caused Ford and other automakers to curtail vehicle production. Most companies have directed the chips they receive to their most profitable vehicles. That has led automakers to explore ways to boost access to chips.

Majority owned by Abu Dhabi's sovereign wealth fund, GlobalFoundries became publicly traded this year when it sold a stake in its business in a $26 billion initial public offering. The company has said that some of the $2.6 billion raised in the deal will go toward building a second chip factory at a site in Malta, New York.

Emirates cargo boss says supply chain constraints could stretch beyond 2022 | Reuters

Emirates cargo boss says supply chain constraints could stretch beyond 2022 | Reuters

Global supply chain constraints will continue to hit freight movers until at least the end of next year and could stretch beyond 2022 as logistics companies struggle with labour shortages amid booming demand, Emirates' cargo boss said.

A shortage of freight space and manpower as a result of the pandemic compounded by a rapid recovery in demand has jammed seaports and airports and led transport costs to skyrocket.

"It's not something that will disappear overnight," Emirates SkyCargo Divisional Senior Vice President Nabul Sultan told Reuters at the Dubai air show.

"I believe honestly it's going to be at least another year or two if not more ... I think it is going to go beyond 2022," he said. "There are huge logistical challenges that are out there."

#Saudi bourse retreats on weak oil, registers weekly loss | Reuters

Saudi bourse retreats on weak oil, registers weekly loss | Reuters

Saudi Arabia's stock market ended lower on Thursday and recorded its third weekly loss in four, tracking weaker oil prices, while other major Gulf bourses traded mixed.

Oil prices slid to six-week lows before recovering some ground, as China said it was moving to tap reserves after a Reuters report that the United States was asking large consuming nations to consider a stockpile release to lower prices.

The bid by the U.S. to cool markets, asking China to join a coordinated action for the first time, comes as inflationary pressures - partly driven by surging energy prices - start to produce a political backlash. read more

Saudi Arabia's benchmark index (.TASI) dropped 1%, weighed down by a 1.8% fall in Al Rajhi Bank (1120.SE) and a 1.7% decline in petrochemical maker Saudi Basic Industries Corp (2010.SE).

In Abu Dhabi, the index (.ADI) edged up 0.1%, helped by a 2.4% rise in Alpha Dhabi Holding (ALPHADHABI.AD) after its subsidiary Trojan General Contracting formed a joint venture to construct Guggenheim Abu Dhabi.

Separately, the United Arab Emirates signed 23 agreements with local and international companies worth around 22.5 billion dirhams ($6.1 billion) during the first four days of the Dubai Airshow, the Ministry of Defence said on its official Twitter account on Thursday. read more

Dubai's main share index (.DFMGI) rose 0.1%, with blue-chip developer Emaar Properties (EMAR.DU) putting on 0.8%, while Deyaar Development (DEYR.DU) jumped 4.4%, rising for a sixth consecutive session.

On Sunday, Deyaar reported a quarterly net profit of 8.2 million dirhams ($2.23 million), up from 4.5 million dirhams year ago.

Dubai Financial Market announced an incentives program to encourage initial public offerings and listings from private sector companies.

The Dubai index registered its sixth weekly gain.

In Qatar, the index (.QSI) gave up early gains to close 0.1% lower, hit by a 0.8% fall in Qatar Islamic Bank (QISB.QA).

Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 1%, dragged down by a 1.9% slide in top lender Commercial International Bank (COMI.CA).

#Dubai Investor Close to $600 Million Saudi Dental Clinics Deal - Bloomberg

Dubai Investor Close to $600 Million Saudi Dental Clinics Deal - Bloomberg

A Dubai-based investment company is nearing a $600 million deal to buy a majority stake in Saudi Arabia’s largest provider of dental and dermatology care, according to people familiar with the matter.

Gulf Islamic Investments LLC., also known as GII, is set to buy the 70% stake owned by private equity firm Jadwa Investment Co. in Almeswak Dental Clinics, said the people, who asked not to be identified because the information is private. Emirati health-care company United Eastern Medical Services owns the rest of the shares. Jadwa acquired the stake in Almeswak in 2017, according to information on its website.

The sale of Almeswak, which operates about 85 centers across 25 cities in Saudi Arabia, underscores the growing appeal of health-care assets in the Gulf region. The domestic medical sector has been booming in recent years thanks to an improvement in incomes and as governments invested massively in medical infrastructure for their citizens. Investor interest in medical care has also been rising as the world population ages, and as the industry has emerged as something of a safe haven for deal-makers during the coronavirus outbreak.

Almeswak shareholders hired investment bank EFG-Hermes Holding Co. to explore options including a sale or initial public offering, people familiar told Bloomberg in February.

GII, which oversees more than $2 billion in assets, said earlier this year it is looking to expand in India and Saudi Arabia, where it intends to invest about $1 billion over the next 18 months in sectors ranging from health-care to cloud kitchens. The privately held Shariah-compliant company focuses on investments in alternative assets such as real estate, venture capital and private equity. More than half of its shareholders are Saudi.

Jadwa and GII declined to comment.

Airbus jet demand hopes bolstered by #Dubai orders -CEO | Reuters

Airbus jet demand hopes bolstered by Dubai orders -CEO | Reuters

A slew of plane orders at this week's Dubai Airshow has added weight to Airbus' hopes of raising output, but the jetmaker is not yet ready to pull the trigger, its top executive said.

Airbus SE (AIR.PA) bagged 265 firm orders at the Middle East event, closing a gap with Boeing (BA.N) which had been leading this year as sales of its 737 MAX rebound from a safety crisis.

A further 139 provisional orders lifted Airbus' Dubai tally above 400 jets, while Boeing won a firm order for 72 MAX.

CEO Guillaume Faury said Airbus had definitively agreed to increase production to 65 single-aisle jets a month by summer 2023, from a planned average of 45 this quarter.

Beyond that, Airbus has asked suppliers to explore rates of 70 in early 2024 and 75 by 2025, but has not made a decision.

#Dubai’s Amanat Exploring Deals, Sees IPO Candidates in Portfolio - Bloomberg

Dubai’s Amanat Exploring Deals, Sees IPO Candidates in Portfolio - Bloomberg

Amanat Holdings PJSC, the health-care and education investment firm, has earmarked at least 1.5 billion dirhams ($408 million) for acquisitions next year and some of its portfolio companies are candidates for stock market listings, its chief executive said.

“In 2022, we have a war chest of around 1.5 billion dirhams at least to be invested in health-care and education,” said Chief Executive Officer Mohamad Hamade told Bloomberg TV. Amanat spent more than 1 billion dirhams on acquisitions this year.

“Markets such as the UAE, Saudi, Egypt, be it in higher education, K12 or specialized health-care is a target for us and we are currently exploring all of the above,” he said.

Amanat may also benefit from a series of initiatives announced by Dubai authorities to encourage listings on the stock exchange, Hamade said.

#SaudiArabia Woos ESG Skeptics With Massive Green Bond Offering - Bloomberg

Saudi Arabia Woos ESG Skeptics With Massive Green Bond Offering - Bloomberg

With the biggest member of the world’s No. 1 oil cartel readying its first-ever green bond, sustainable investors are debating what to make of it.

Saudi Arabia’s plan to enter the market for green bonds marks a watershed moment. Some investors say it represents an encouraging step for the oil-addicted Gulf state to plot a path away from fossil fuels. Others are asking for credible evidence the debt will genuinely be green. The upshot, though, is that the biggest oil exporter on the planet is likely to find plenty of buyers for a bond it says will be climate friendly.

Both the Saudi government itself and the kingdom’s sovereign wealth fund are preparing to sell green bonds in the coming months. The deals may raise billions of dollars each and will help the Public Investment Fund finance projects like a so-called sustainable tourism resort on the Red Sea that will be powered entirely by renewable energy, according to people familiar with the plans.

According to Todd Schubert, head of fixed-income research at Bank of Singapore Ltd., it almost makes no difference who an issuer is, given the near insatiable appetite for green assets. “The demand for green and other ESG bonds is so voracious that I would expect Saudi Arabia to have little trouble consummating this deal,” he said.

#Dubai Denies Loophole in Its Gold-Trading Regulation Open to Illicit Business - Bloomberg

Dubai Denies Loophole in Its Gold-Trading Regulation Open to Illicit Business - Bloomberg

Dubai’s commodities exchange rejected claims it doesn’t do enough to regulate its gold business, while the United Arab Emirates government announced new guidelines for trading the metal.

Allegations from foreign regulators, refineries and non-governmental organizations are “lies” and “nationally-targeted insults,” the chief executive officer of the Dubai Multi Commodities Centre, Ahmed bin Sulayem, said Thursday at a conference in the emirate. They are “consistent and unsubstantiated attacks” on Dubai, he said.

Bin Sulayem’s comments come as concerns mount about Dubai’s role in the illicit gold business. Critics say regulatory loopholes allow bullion used for money laundering and smuggled out of war zones to trade there.

Switzerland has told its gold refiners to do more to identify the origin of bullion arriving from the UAE. The London Bullion Market Association last year threatened to blacklist countries that didn’t meet its standards, a move targeted at Dubai and the United Arab Emirates, Bloomberg reported.

ADNOC secures $3 billion loan from JBIC and four other banks | Reuters

ADNOC secures $3 billion loan from JBIC and four other banks | Reuters

State oil firm Abu Dhabi National Oil Company (ADNOC) signed a $3 billion loan agreement with the Japan Bank for International Cooperation (JBIC) and four other lenders, JBIC said in a statement on Thursday.

JBIC is providing $2.1 billion and Sumitomo Mitsui Banking Corporation (SMBC) (8316.T), the Tokyo branch of HSBC (HSBA.L), Mizuho (8411.T) and MUFG (8306.T) are providing the rest, the statement said.

Oil at six-week low as China readies crude oil reserve release | Reuters

Oil at six-week low as China readies crude oil reserve release | Reuters

Oil prices slid to six-week lows on Thursday as China said it was moving to release strategic reserves after a Reuters report that the United States was asking large consuming nations to consider a coordinated stockpile release to lower prices.

The bid by the U.S. to shock markets, asking China to join a coordinated action for the first time, comes as inflationary pressures, partly driven by surging energy prices, start to produce a political backlash, as the world fitfully recovers from the worst health crisis in a century. read more

Brent crude was down 83 cents, or 1%, to $79.87 a barrel by 0749 GMT, after earlier dropping to $79.28, the lowest since Oct. 7.

U.S. West Texas Intermediate crude futures were down $1.13, or 1.4%, at $77.23 a barrel, having fallen earlier to $77.09, also the lowest since early last month.

#Saudi shares fall on weak oil, set for weekly loss | Reuters

Saudi shares fall on weak oil, set for weekly loss | Reuters

Saudi shares eased in early trade on Thursday and were set for a weekly loss, tracking weaker oil prices, while other Gulf bourses traded mixed.

Oil prices slid to near six-week lows as China said it was moving to release reserves following a Reuters report that the United States was asking big crude consumers to consider a coordinated release of stocks to lower prices.

Oil prices are down around 4% since Wednesday as the shock treatment seemed to take effect.

Saudi Arabia's benchmark index (.TASI) dropped 0.2%, hit by a 1.1% fall in Dr Sulaiman Al-Habib Medical Services (4013.SE) and a 0.8% decrease in petrochemical maker Saudi Basic Industries Corp (2010.SE).

The Saudi-led coalition fighting in Yemen intercepted and destroyed a drone that attempted to attack Saudi Arabia's Abha international airport, Saudi state media said early on Thursday. read more

In Abu Dhabi, the index (.ADI) fell 0.3%, with Emirates Telecommunications (ETISALAT.AD) dropping 0.6% and the Country's largest lender First Abu Dhabi Bank (FAB.AD) falling 0.2%.

Dubai's main share index (.DFMGI) edged up 0.1%, with blue-chip developer Emaar Properties (EMAR.DU) rising 0.6% and Deyaar Development (DEYR.DU) advancing 4.4%.

Dubai Financial Market (DFM.DU) announced an incentives program to encourage initial public offerings and listings from private sector companies.

Separately, the United Arab Emirates, one of the world's biggest bullion trade hubs, will launch new standards aimed at increasing transparency and combating illicit trading in the bullion market, it said on Thursday.

The Qatari index (.QSI) added 0.2%, helped by a 0.7% rise in Commercial Bank (COMB.QA) and a 0.5% increase in sharia-compliant lender Masraf Al Rayan (MARK.QA).