Porsche Is Said to Court Gulf Sovereign Funds for Landmark IPO - Bloomberg
Porsche is trying to secure anchor investments from some of the largest Middle Eastern sovereign wealth funds, as the iconic sports-car maker looks to pull off one of Europe’s biggest listings amid market headwinds and valuation concerns, people familiar with the matter said.
Abu Dhabi’s Mubadala Investment Co. and ADQ are among those considering committing funds to the Volkswagen AG unit’s listing, according to the people, who asked not to be identified discussing confidential information. State-owned entities in other Gulf markets, including Saudi Arabia, are also exploring investments, they said.
Advisers on the IPO have also approached major Canadian and Malaysian funds, as well as the Norwegian sovereign wealth fund, one of the people said. Volkswagen is considering offering more than 5% of Porsche’s preferred stock to anchor investors, the people said.
Existing Volkswagen shareholder Qatar Investment Authority has already decided to become a strategic investor in Porsche.
Commitments from more funds would be a vote of confidence as the German carmarker looks to push a premium valuation. The German state of Lower Saxony, another Volkswagen shareholder, and the controlling Porsche-Piech family are seeking a valuation of no less than 60 billion euros ($62 billion), the people said.
Thursday, 4 August 2022
Oil prices hit lowest since Ukraine invasion amid recession fears | Reuters
Oil prices hit lowest since Ukraine invasion amid recession fears | Reuters
Global oil prices dropped on Thursday to their lowest levels since before Russia's February invasion of Ukraine, as traders fretted over the possibility of an economic recession later this year that could torpedo energy demand.
Benchmark Brent crude futures settled down $2.66, or 2.75%, at $94.12, the lowest close since Feb. 18. West Texas Intermediate (WTI) crude futures settled down $2.34, or 2.12%, at $88.54, the lowest close since Feb. 2.
The fall in oil prices could come as a relief to large consumer nations including the United States and countries in Europe, which have been urging producers to ramp up output to offset tight supplies and combat raging inflation.
Oil had surged to well over $120 a barrel earlier in the year. A sudden rebound in demand from the darkest days of the COVID-19 pandemic coincided with supply disruptions stemming from sanctions on major producer Russia over its invasion of Ukraine.
Global oil prices dropped on Thursday to their lowest levels since before Russia's February invasion of Ukraine, as traders fretted over the possibility of an economic recession later this year that could torpedo energy demand.
Benchmark Brent crude futures settled down $2.66, or 2.75%, at $94.12, the lowest close since Feb. 18. West Texas Intermediate (WTI) crude futures settled down $2.34, or 2.12%, at $88.54, the lowest close since Feb. 2.
The fall in oil prices could come as a relief to large consumer nations including the United States and countries in Europe, which have been urging producers to ramp up output to offset tight supplies and combat raging inflation.
Oil had surged to well over $120 a barrel earlier in the year. A sudden rebound in demand from the darkest days of the COVID-19 pandemic coincided with supply disruptions stemming from sanctions on major producer Russia over its invasion of Ukraine.
#UAE Healthcare Provider Burjeel Holdings Seeking to Raise $750 Million From IPO - Bloomberg
UAE Healthcare Provider Burjeel Holdings Seeking to Raise $750 Million From IPO - Bloomberg
Healthcare provider Burjeel Holdings is seeking to raise at least $750 million from an initial public offering in Abu Dhabi this year, according to people with knowledge of the matter who asked not to be identified because the matter is private.
Once listed, the United Arab Emirates-based firm, is considering a dividend payout ratio of 40% to 70% of net income from 2023 depending on its investment requirements at the time, according to a presentation for potential investors ahead of the offering that could come as soon as the third quarter.
Burjeel’s owner VPS Healthcare LLC has been courting potential investors including sovereign and pension funds to drum up support for the deal. Talks with more formal group and one-on-one meetings were expected to follow, Bloomberg has reported.
A representative for Burjeel declined to comment.
Healthcare provider Burjeel Holdings is seeking to raise at least $750 million from an initial public offering in Abu Dhabi this year, according to people with knowledge of the matter who asked not to be identified because the matter is private.
Once listed, the United Arab Emirates-based firm, is considering a dividend payout ratio of 40% to 70% of net income from 2023 depending on its investment requirements at the time, according to a presentation for potential investors ahead of the offering that could come as soon as the third quarter.
Burjeel’s owner VPS Healthcare LLC has been courting potential investors including sovereign and pension funds to drum up support for the deal. Talks with more formal group and one-on-one meetings were expected to follow, Bloomberg has reported.
A representative for Burjeel declined to comment.
#SaudiArabia Second-Quarter Budget Surplus at $21 Billion on Rising Oil Prices - Bloomberg
Saudi Arabia Second-Quarter Budget Surplus at $21 Billion on Rising Oil Prices - Bloomberg
Saudi Arabia reported a budget surplus of 77.9 billion riyals ($20.7 billion) in the second quarter, driven by a surge in global oil prices.
Total government revenue stood at 370.4 billion riyals, more than 33% higher than the previous quarter, while spending rose to 292.5 billion riyals in the quarter, according to a statement by the kingdom’s finance ministry on Thursday.
Oil prices which have averaged above $100 per barrel this year. The Organization of Petroleum Exporting Countries, of which the kingdom is a part, agreed to increase daily oil production slightly but Saudi Arabia anticipates the market will stay tight.
Saudi officials previously said they will stick with spending plans for 2022 outlined in December’s budget announcement, using higher oil revenues for replenishing its reserves or transferring to one of its investment funds.
Oil markets are pulling Saudi Arabia’s fortunes up again after it was hit hard by plummeting crude prices during the pandemic in 2020. The International Monetary Fund expects Saudi Arabia’s fiscal balance to achieve a surplus higher than 5% of gross domestic product this year.
Saudi Arabia reported a budget surplus of 77.9 billion riyals ($20.7 billion) in the second quarter, driven by a surge in global oil prices.
Total government revenue stood at 370.4 billion riyals, more than 33% higher than the previous quarter, while spending rose to 292.5 billion riyals in the quarter, according to a statement by the kingdom’s finance ministry on Thursday.
Oil prices which have averaged above $100 per barrel this year. The Organization of Petroleum Exporting Countries, of which the kingdom is a part, agreed to increase daily oil production slightly but Saudi Arabia anticipates the market will stay tight.
Saudi officials previously said they will stick with spending plans for 2022 outlined in December’s budget announcement, using higher oil revenues for replenishing its reserves or transferring to one of its investment funds.
Oil markets are pulling Saudi Arabia’s fortunes up again after it was hit hard by plummeting crude prices during the pandemic in 2020. The International Monetary Fund expects Saudi Arabia’s fiscal balance to achieve a surplus higher than 5% of gross domestic product this year.
Most Gulf bourses in red on selling pressure, falling oil prices | Reuters
Most Gulf bourses in red on selling pressure, falling oil prices | Reuters
Most stock markets in the Gulf ended lower on Thursday, as selling pressures and declining oil prices pushed the markets down to a certain extent.
Oil prices, a key catalyst for the Gulf's financial markets, eased to $96.23 a barrel amid fears of a demand slowdown, after a build in U.S. crude and gasoline stocks sent prices to multi-month lows in the previous session.
Crude prices have soared in 2022 to their highest since 2008, climbing above $139 a barrel in March after the United States and Europe imposed sanctions on Russia over its invasion of Ukraine.
Prices have since eased to below $100 a barrel as soaring inflation and higher interest rates raise fears of a recession that would erode demand.
Dubai's main share index (.DFMGI) fell 0.5%, with top lender Emirates NBD (ENBD.DU) losing 2.2% and blue-chip developer Emaar Properties (EMAR.DU) dropping 0.9%.
In Abu Dhabi, equities (.FTFADGI) lost 0.3%, hit by a 1.6% fall in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
The Abu Dhabi stock market was volatile with declining oil prices pulling the main index down, said Fadi Reyad, market analyst at CAPEX.com.
"The market could see more price corrections as investors secure their gains."
The Qatari benchmark (.QSI) closed 0.1% lower, driven down by a 2.6% fall in Mesaieed Petrochemical (MPHC.QA).
Saudi Arabia's benchmark index (.TASI), however, ended flat.
Outside the Gulf, Egypt's blue-chip index (.EGX30) jumped 5.3%, trimming year to date losses to 16%.
According to Reyad, the Egyptian bourse saw an increase thanks to the expectations of improving conditions in grain deliveries and inflation.
"However, it remains exposed to selling pressures from local and international investors."
The Egyptian benchmark hit its lowest in nearly six years last month as the country has come under pressure because of a sharp slide in foreign portfolio investor holdings and rising costs of key commodity imports, especially since Russia's invasion of Ukraine.
Most stock markets in the Gulf ended lower on Thursday, as selling pressures and declining oil prices pushed the markets down to a certain extent.
Oil prices, a key catalyst for the Gulf's financial markets, eased to $96.23 a barrel amid fears of a demand slowdown, after a build in U.S. crude and gasoline stocks sent prices to multi-month lows in the previous session.
Crude prices have soared in 2022 to their highest since 2008, climbing above $139 a barrel in March after the United States and Europe imposed sanctions on Russia over its invasion of Ukraine.
Prices have since eased to below $100 a barrel as soaring inflation and higher interest rates raise fears of a recession that would erode demand.
Dubai's main share index (.DFMGI) fell 0.5%, with top lender Emirates NBD (ENBD.DU) losing 2.2% and blue-chip developer Emaar Properties (EMAR.DU) dropping 0.9%.
In Abu Dhabi, equities (.FTFADGI) lost 0.3%, hit by a 1.6% fall in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
The Abu Dhabi stock market was volatile with declining oil prices pulling the main index down, said Fadi Reyad, market analyst at CAPEX.com.
"The market could see more price corrections as investors secure their gains."
The Qatari benchmark (.QSI) closed 0.1% lower, driven down by a 2.6% fall in Mesaieed Petrochemical (MPHC.QA).
Saudi Arabia's benchmark index (.TASI), however, ended flat.
Outside the Gulf, Egypt's blue-chip index (.EGX30) jumped 5.3%, trimming year to date losses to 16%.
According to Reyad, the Egyptian bourse saw an increase thanks to the expectations of improving conditions in grain deliveries and inflation.
"However, it remains exposed to selling pressures from local and international investors."
The Egyptian benchmark hit its lowest in nearly six years last month as the country has come under pressure because of a sharp slide in foreign portfolio investor holdings and rising costs of key commodity imports, especially since Russia's invasion of Ukraine.
Oil fall on demand fears, supply tightness offers floor | Reuters
Oil fall on demand fears, supply tightness offers floor | Reuters
Oil prices fell on Thursday, pressured by concerns economic weakness in the United States and Europe would cut demand, but prices seesawed as the market also considered tight supply.
Brent crude futures were down 79 cents, or 0.8%, to $95.99 a barrel by 1404 GMT, while West Texas Intermediate (WTI) crude futures fell 43 cents, a 0.4% decline, at $90.23.
Both benchmarks fell on Wednesday to their weakest levels since before Russia's Feb. 24 invasion of UKraine, that Moscow calls "a special operation". And WTI futures touched their lowest on Thursday since mid-February.
The selling followed an unexpected surge in U.S. crude inventories last week. Gasoline stocks, the proxy for demand, also showed a surprise build as demand slowed, the Energy Information Administration said. read more
The demand outlook remains clouded by increasing worries about an economic slump in the United States and Europe, debt distress in emerging market economies, and a strict zero COVID-19 policy in China, the world's largest oil importer.
Oil prices fell on Thursday, pressured by concerns economic weakness in the United States and Europe would cut demand, but prices seesawed as the market also considered tight supply.
Brent crude futures were down 79 cents, or 0.8%, to $95.99 a barrel by 1404 GMT, while West Texas Intermediate (WTI) crude futures fell 43 cents, a 0.4% decline, at $90.23.
Both benchmarks fell on Wednesday to their weakest levels since before Russia's Feb. 24 invasion of UKraine, that Moscow calls "a special operation". And WTI futures touched their lowest on Thursday since mid-February.
The selling followed an unexpected surge in U.S. crude inventories last week. Gasoline stocks, the proxy for demand, also showed a surprise build as demand slowed, the Energy Information Administration said. read more
The demand outlook remains clouded by increasing worries about an economic slump in the United States and Europe, debt distress in emerging market economies, and a strict zero COVID-19 policy in China, the world's largest oil importer.
#Dubai Aerospace doesn't know if it will get its planes back from Russia | Reuters
Dubai Aerospace doesn't know if it will get its planes back from Russia | Reuters
Major airplane lessor Dubai Aerospace Enterprise said on Thursday it didn't know if it would ever get back 19 jets leased in Russia after Moscow passed a law allowing for hundreds of jets to be seized in response to Western sanctions.
The Dubai state-owned lessor reiterated that it had written off $576.5 million for the planes and filed insurance claims to recover amounts due. It had previously said it had filed insurance claims of $1 billion, while noting the amount could increase.
Sanctions imposed by Western countries after Russia's invasion of Ukraine forced lessors to terminate contracts with Russian airlines. Moscow retaliated by barring leased jets from being repossessed, though some airlines have since returned some aircraft.
Dubai Aerospace said it had terminated contracts on 22 aircraft leased to Russian airlines in compliance with sanctions and that it had no control over 19 jets that were currently in Russia.
Major airplane lessor Dubai Aerospace Enterprise said on Thursday it didn't know if it would ever get back 19 jets leased in Russia after Moscow passed a law allowing for hundreds of jets to be seized in response to Western sanctions.
The Dubai state-owned lessor reiterated that it had written off $576.5 million for the planes and filed insurance claims to recover amounts due. It had previously said it had filed insurance claims of $1 billion, while noting the amount could increase.
Sanctions imposed by Western countries after Russia's invasion of Ukraine forced lessors to terminate contracts with Russian airlines. Moscow retaliated by barring leased jets from being repossessed, though some airlines have since returned some aircraft.
Dubai Aerospace said it had terminated contracts on 22 aircraft leased to Russian airlines in compliance with sanctions and that it had no control over 19 jets that were currently in Russia.
Exclusive: #Saudi, #UAE save oil firepower in case of winter supply crisis | Reuters
Exclusive: Saudi, UAE save oil firepower in case of winter supply crisis | Reuters
OPEC leaders Saudi Arabia and the United Arab Emirates stand ready to deliver a "significant increase" in oil output should the world face a severe supply crisis this winter, sources familiar with the thinking of the top Gulf exporters said.
When the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided on Wednesday to raise oil output by a mere 100,000 barrels per day (bpd), it broke a taboo with a rare reference to the group's spare production capacity.
The statement referred to "the severely limited availability" of spare capacity, saying that meant it needed to kept it in reserve for "severe supply disruptions".
At first glance, that reads as an acknowledgement that OPEC’s leader Saudi Arabia has almost no room to raise output, as mentioned by French President Emmanuel Macron in a conversation with U.S. President Joe Biden last month.
Three sources, speaking on condition of anonymity because of the sensitivity of the issue, said Saudi Arabia and the UAE could pump "significantly more", but would only do so if the supply crisis worsened.
OPEC leaders Saudi Arabia and the United Arab Emirates stand ready to deliver a "significant increase" in oil output should the world face a severe supply crisis this winter, sources familiar with the thinking of the top Gulf exporters said.
When the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided on Wednesday to raise oil output by a mere 100,000 barrels per day (bpd), it broke a taboo with a rare reference to the group's spare production capacity.
The statement referred to "the severely limited availability" of spare capacity, saying that meant it needed to kept it in reserve for "severe supply disruptions".
At first glance, that reads as an acknowledgement that OPEC’s leader Saudi Arabia has almost no room to raise output, as mentioned by French President Emmanuel Macron in a conversation with U.S. President Joe Biden last month.
Three sources, speaking on condition of anonymity because of the sensitivity of the issue, said Saudi Arabia and the UAE could pump "significantly more", but would only do so if the supply crisis worsened.
Middle East Stocks Rally Seen Stalling on Global Economy Slowdown, Oil Prices - Bloomberg
Middle East Stocks Rally Seen Stalling on Global Economy Slowdown, Oil Prices - Bloomberg
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Investors see limited room for stocks listed in Arab Gulf states to extend a world-beating rally as oil prices waver and the world economy slows over tight central bank policies.
The region, dominated by banks and energy firms, has benefited from rising interest rates and higher oil prices this year, as well as from US President Joe Biden’s meeting with Crown Prince Mohammed Bin Salman last month. But investors are now fretting over the drop in oil prices and risks to corporate earnings and global growth amid continued tightening by the Federal Reserve and other major central banks.
The MSCI GCC Countries Combined Index is up 7.9% this year after rebounding in July, compared with a 15% slump for the MSCI All-Country World Index. It posted the best month since January, outperforming other developing nations, and now trades at a 43% premium to the MSCI Emerging Markets Index, nearly three times the average premium over the past 10 years.
“Investors are still very cautious of how things go from here as in the global markets corporate earnings have been a mixed bag,” said Faisal Hasan, chief investment officer at Al Mal Capital. “This might lead to revision in estimates and hence valuations.”
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Investors see limited room for stocks listed in Arab Gulf states to extend a world-beating rally as oil prices waver and the world economy slows over tight central bank policies.
The region, dominated by banks and energy firms, has benefited from rising interest rates and higher oil prices this year, as well as from US President Joe Biden’s meeting with Crown Prince Mohammed Bin Salman last month. But investors are now fretting over the drop in oil prices and risks to corporate earnings and global growth amid continued tightening by the Federal Reserve and other major central banks.
The MSCI GCC Countries Combined Index is up 7.9% this year after rebounding in July, compared with a 15% slump for the MSCI All-Country World Index. It posted the best month since January, outperforming other developing nations, and now trades at a 43% premium to the MSCI Emerging Markets Index, nearly three times the average premium over the past 10 years.
“Investors are still very cautious of how things go from here as in the global markets corporate earnings have been a mixed bag,” said Faisal Hasan, chief investment officer at Al Mal Capital. “This might lead to revision in estimates and hence valuations.”
Major Gulf markets in red on U.S.-China tensions | Reuters
Major Gulf markets in red on U.S.-China tensions | Reuters
Major stock markets in the Gulf were subdued in early trade on Thursday amid U.S.-China tensions over House of Representatives Speaker Nancy Pelosi's visit to Taiwan and as investors booked profits from a recent rally.
Saudi Arabia's benchmark index (.TASI) eased 0.1%, with Banque Saudi Fransi (1050.SE) losing 1.5%, while Bupa Arabia (8210.SE) retreated more than 1%, after reporting a fall in quarterly profit.
The kingdom's non-oil private sector kept up a steady pace of growth in July, though slowing slightly from June, helped by increases in customer numbers, purchasing and output, a business survey showed on Wednesday. read more
Dubai's main share index (.DFMGI) dropped 0.4%, hit by a 1.4% fall in top lender Emirates NBD (ENBD.DU) and a 1.1% decrease in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) fell 0.1%, with the United Arab Emirates' biggest lender, First Abu Dhabi Bank, (FAB.AD) losing 1.4%.
The Qatari benchmark (.QSI) was down 0.3%, driven lower by a 1.8% fall in Mesaieed Petrochemical (MPHC.QA).
China launched unprecedented live-fire military drills in six areas that ring Taiwan on Thursday, a day after Pelosi's visit. read more
Major stock markets in the Gulf were subdued in early trade on Thursday amid U.S.-China tensions over House of Representatives Speaker Nancy Pelosi's visit to Taiwan and as investors booked profits from a recent rally.
Saudi Arabia's benchmark index (.TASI) eased 0.1%, with Banque Saudi Fransi (1050.SE) losing 1.5%, while Bupa Arabia (8210.SE) retreated more than 1%, after reporting a fall in quarterly profit.
The kingdom's non-oil private sector kept up a steady pace of growth in July, though slowing slightly from June, helped by increases in customer numbers, purchasing and output, a business survey showed on Wednesday. read more
Dubai's main share index (.DFMGI) dropped 0.4%, hit by a 1.4% fall in top lender Emirates NBD (ENBD.DU) and a 1.1% decrease in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) fell 0.1%, with the United Arab Emirates' biggest lender, First Abu Dhabi Bank, (FAB.AD) losing 1.4%.
The Qatari benchmark (.QSI) was down 0.3%, driven lower by a 1.8% fall in Mesaieed Petrochemical (MPHC.QA).
China launched unprecedented live-fire military drills in six areas that ring Taiwan on Thursday, a day after Pelosi's visit. read more
Oil prices stabilize after drop to near 6-month low | Reuters
Oil prices stabilize after drop to near 6-month low | Reuters
Oil prices were broadly steady on Thursday as the market weighed tight supply against demand fears, after a build in U.S. crude and gasoline stocks sent prices to multi-month lows in the previous session.
Brent crude futures inched up 36 cents, or 0.37% to $97.14 a barrel by 0925 GMT, while West Texas Intermediate (WTI) crude futures were up 43 cents, a 0.47% gain, at $91.09.
Both benchmarks fell to on Wednesday to their weakest levels since before Russia's Feb. 24 invasion of UKraine, that Moscow calls "a special operation".
The move followed an unexpected surge in U.S. crude inventories last week. Gasoline stocks, the proxy for demand, also showed a surprise build as demand slowed, the Energy Information Administration said. read more
The decision on Wednesday by the Organization of the Petroleum Exporting Countries and allies such as Russia, known as OPEC+, to raise its oil output target by 100,000 barrels per day (bpd) in September has added to bearish sentiment. read more
Oil prices were broadly steady on Thursday as the market weighed tight supply against demand fears, after a build in U.S. crude and gasoline stocks sent prices to multi-month lows in the previous session.
Brent crude futures inched up 36 cents, or 0.37% to $97.14 a barrel by 0925 GMT, while West Texas Intermediate (WTI) crude futures were up 43 cents, a 0.47% gain, at $91.09.
Both benchmarks fell to on Wednesday to their weakest levels since before Russia's Feb. 24 invasion of UKraine, that Moscow calls "a special operation".
The move followed an unexpected surge in U.S. crude inventories last week. Gasoline stocks, the proxy for demand, also showed a surprise build as demand slowed, the Energy Information Administration said. read more
The decision on Wednesday by the Organization of the Petroleum Exporting Countries and allies such as Russia, known as OPEC+, to raise its oil output target by 100,000 barrels per day (bpd) in September has added to bearish sentiment. read more