Friday 13 October 2023
Watch Citi’s Azevedo: Israel Conflict Has Muted Impact So Far - Bloomberg video
Watch Citi’s Azevedo: Israel Conflict Has Muted Impact So Far - Bloomberg
Miguel Azevedo, Managing Director and Chairman Investment Banking, Middle East & Africa of Citi, discusses the impact of the Israel-Hamas war on the global economy. He also speaks about the Egyptian, Saudi and UAE's IPOs, the Dubai real estate sector, and the capital markets' reforms. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East and Africa". (Source: Bloomberg)
Israel-Hamas War: Citi Says May Have Little Impact on Gulf Deals - Bloomberg
Israel-Hamas War: Citi Says May Have Little Impact on Gulf Deals - Bloomberg
The rising conflict between Israel and Hamas will likely have a limited impact on deal activity in the Middle East if it doesn’t escalate into a wider war, according to Citigroup Inc.’s regional head of investment banking.
“So far, it’s a very muted impact,” Miguel Azevedo, the Wall Street firm’s chairman of emerging markets EMEA investment banking, said in an interview with Bloomberg Television on Friday. “If it stays contained we don’t really believe there will be much of an impact.”
“Sentiment is a bit more nervous, but there are a lot of reasons to be nervous and volatile in the market these days,” he said, pointing to the worsening sentiment after US inflation data bolstered bets on rate hikes.
The IPO scene in the region is “resilient,” Azevedo said, adding that next year’s pipeline is “very solid.”
The rising conflict between Israel and Hamas will likely have a limited impact on deal activity in the Middle East if it doesn’t escalate into a wider war, according to Citigroup Inc.’s regional head of investment banking.
“So far, it’s a very muted impact,” Miguel Azevedo, the Wall Street firm’s chairman of emerging markets EMEA investment banking, said in an interview with Bloomberg Television on Friday. “If it stays contained we don’t really believe there will be much of an impact.”
“Sentiment is a bit more nervous, but there are a lot of reasons to be nervous and volatile in the market these days,” he said, pointing to the worsening sentiment after US inflation data bolstered bets on rate hikes.
The IPO scene in the region is “resilient,” Azevedo said, adding that next year’s pipeline is “very solid.”
Aramco to Study Potential Bid for Shell’s Pakistan Unit - Bloomberg
Aramco to Study Potential Bid for Shell’s Pakistan Unit - Bloomberg
Saudi Aramco is exploring a potential bid for Shell Plc’s assets in Pakistan, according to people familiar with the matter, possibly marking the Gulf oil giant’s first foray into the South Asian nation.
Aramco is studying the Shell assets including Karachi-listed Shell Pakistan Ltd., which has a market value of about $123 million, said the people, who asked not to be identified as the information is private. The Pakistani assets could be valued at around $200 million in a transaction, the people said.
Shell, one of the oldest multinational companies with operations in Pakistan, runs more than 600 fuel stations in the country and has been present there for about 75 years. Shell Pakistan also has a lubricants business in addition to the retail network.
There’s no certainty the deliberations will lead to a transaction, and other suitors could also emerge, the people said. A representative for Shell said the company is seeing strong interest from local and international buyers, declining to comment on specific companies.
“Any sale will be subject to a targeted sales process, the execution of binding documentation and the receipt of applicable regulatory approvals,” the representative said. A spokesperson for Aramco didn’t immediately respond to queries.
Shell said in June it decided to exit Pakistan and planned to sell its 77.4% stake in Shell Pakistan as well as its 26% ownership in Pak-Arab Pipeline Co., a state-backed cross-country pipeline system. The divestment plan comes as Shell executes a strategy under Chief Executive Officer Wael Sawan to increase returns to shareholders and cut businesses that aren’t making enough money.
Saudi Aramco is exploring a potential bid for Shell Plc’s assets in Pakistan, according to people familiar with the matter, possibly marking the Gulf oil giant’s first foray into the South Asian nation.
Aramco is studying the Shell assets including Karachi-listed Shell Pakistan Ltd., which has a market value of about $123 million, said the people, who asked not to be identified as the information is private. The Pakistani assets could be valued at around $200 million in a transaction, the people said.
Shell, one of the oldest multinational companies with operations in Pakistan, runs more than 600 fuel stations in the country and has been present there for about 75 years. Shell Pakistan also has a lubricants business in addition to the retail network.
There’s no certainty the deliberations will lead to a transaction, and other suitors could also emerge, the people said. A representative for Shell said the company is seeing strong interest from local and international buyers, declining to comment on specific companies.
“Any sale will be subject to a targeted sales process, the execution of binding documentation and the receipt of applicable regulatory approvals,” the representative said. A spokesperson for Aramco didn’t immediately respond to queries.
Shell said in June it decided to exit Pakistan and planned to sell its 77.4% stake in Shell Pakistan as well as its 26% ownership in Pak-Arab Pipeline Co., a state-backed cross-country pipeline system. The divestment plan comes as Shell executes a strategy under Chief Executive Officer Wael Sawan to increase returns to shareholders and cut businesses that aren’t making enough money.
Oil surges over 4% on concerns that Middle East conflict could widen | Reuters
Oil surges over 4% on concerns that Middle East conflict could widen | Reuters
Oil prices leapt nearly $4 on Friday, with Brent on track for its highest weekly gain since April, as investors worried the conflict in the Middle East could widen after Israel warned half of Gaza's population to move south.
Brent futures rose $3.97, or 4.6%, to $89.97 per barrel as of 12:46 p.m. EDT (1646 GMT). US West Texas Intermediate (WTI) crude gained $3.88, or 4.7%, to $86.79 a barrel, after earlier breaking the $4 barrier.
Brent was set for a weekly gain of 6.3%, its biggest such increase since April. WTI was set to climb about 4.8% for the week, after both surged on Monday.
Market participants worried about disruptions to Middle Eastern exports after the weekend attack by Hamas on Israel threatened a wider conflict.
The United Nations said Israel's military informed it late on Thursday that 1.1 million Palestinians in Gaza should relocate to the enclave's south within the next 24 hours, in what Palestinians fear could be a precursor to a planned Israeli ground offensive following a deadly Hamas militant attack.
Oil prices leapt nearly $4 on Friday, with Brent on track for its highest weekly gain since April, as investors worried the conflict in the Middle East could widen after Israel warned half of Gaza's population to move south.
Brent futures rose $3.97, or 4.6%, to $89.97 per barrel as of 12:46 p.m. EDT (1646 GMT). US West Texas Intermediate (WTI) crude gained $3.88, or 4.7%, to $86.79 a barrel, after earlier breaking the $4 barrier.
Brent was set for a weekly gain of 6.3%, its biggest such increase since April. WTI was set to climb about 4.8% for the week, after both surged on Monday.
Market participants worried about disruptions to Middle Eastern exports after the weekend attack by Hamas on Israel threatened a wider conflict.
The United Nations said Israel's military informed it late on Thursday that 1.1 million Palestinians in Gaza should relocate to the enclave's south within the next 24 hours, in what Palestinians fear could be a precursor to a planned Israeli ground offensive following a deadly Hamas militant attack.
#UAE bourses tumble as Israel/Hamas conflict intensifies | Reuters
UAE bourses tumble as Israel/Hamas conflict intensifies | Reuters
Stock markets in United Arab Emirates tumbled on Friday, tracking global equities as a widening conflict between Hamas militants and Israel made investors nervous.
MSCI's broadest index of global equities (.MIWD00000PUS) fell 0.4%, while Europe's Stoxx 600 share index (.STOXX) slid 0.9%.
On Friday, the Israeli military called for civilians to leave Gaza City ahead of an anticipated ground invasion in response to devastating attacks by Hamas militants at the weekend.
Dubai's benchmark index (.DFMGI) dropped 2.3%, hitting three months low as the majority of stocks in the index were trading in negative territory.
Dubai's blue-chip developer Emaar Properties (EMAR.DU) recorded its worst day since mid-May 2022 with a 5.5% decline, while toll operator Salik Company (SALIK.DU) slid 4.7%.
Among other losers, real estate firm Union Properties (UPRO.DU) dropped 8.3% after a local bank took action on the company's plot to settle the debt of its subsidiary Thermo in which the company was a guarantor.
Abu Dhabi's main index (.FTFADGI) dipped 1.1%, pressured by a 5.1% fall in Aldar properties (ALDAR.AD) and a 3.1% decline in IHC-owned conglomerate Alpha Dhabi Holding (ALPHADHABI.AD).
The Abu Dhabi and Dubai indexes recorded weekly losses of 2.8% and 4.8% respectively, according to LSEG data.
Meanwhile, the oil price, a key contributor to the Gulf's economy, jumped nearly 4% after the U.S. tightened its sanctions programme against Russian crude exports, raising supply concerns in an already tight market.
Brent Crude was up 3.9%, or $3.34, at $89.34 a barrel as of 1143 GMT.
Stock markets in United Arab Emirates tumbled on Friday, tracking global equities as a widening conflict between Hamas militants and Israel made investors nervous.
MSCI's broadest index of global equities (.MIWD00000PUS) fell 0.4%, while Europe's Stoxx 600 share index (.STOXX) slid 0.9%.
On Friday, the Israeli military called for civilians to leave Gaza City ahead of an anticipated ground invasion in response to devastating attacks by Hamas militants at the weekend.
Dubai's benchmark index (.DFMGI) dropped 2.3%, hitting three months low as the majority of stocks in the index were trading in negative territory.
Dubai's blue-chip developer Emaar Properties (EMAR.DU) recorded its worst day since mid-May 2022 with a 5.5% decline, while toll operator Salik Company (SALIK.DU) slid 4.7%.
Among other losers, real estate firm Union Properties (UPRO.DU) dropped 8.3% after a local bank took action on the company's plot to settle the debt of its subsidiary Thermo in which the company was a guarantor.
Abu Dhabi's main index (.FTFADGI) dipped 1.1%, pressured by a 5.1% fall in Aldar properties (ALDAR.AD) and a 3.1% decline in IHC-owned conglomerate Alpha Dhabi Holding (ALPHADHABI.AD).
The Abu Dhabi and Dubai indexes recorded weekly losses of 2.8% and 4.8% respectively, according to LSEG data.
Meanwhile, the oil price, a key contributor to the Gulf's economy, jumped nearly 4% after the U.S. tightened its sanctions programme against Russian crude exports, raising supply concerns in an already tight market.
Brent Crude was up 3.9%, or $3.34, at $89.34 a barrel as of 1143 GMT.
How #Dubai's digital economy court aims to combat cryptocurrency fraud and keep AI in check
How Dubai's digital economy court aims to combat cryptocurrency fraud and keep AI in check
The head judge of Dubai's dedicated digital economy court has told of how the emirate aims to keep pace with an evolving legal landscape to help safeguard the public against emerging threats such as cryptocurrency fraud.
Justice Michael Black works at the DIFC Courts’ Digital Economy Court, launched in December last year to act as a crucial arbiter in disputes arising from advanced technology, from artificial intelligence and big data to blockchain, 3D printing and robotics.
"It’s a new area and we are in no doubt that the wave is coming,” Justice Black told The National.
“We have to look at what was said to be science fiction about seven years ago and is now science fact.”
The senior judge said the court's current workload primarily involves the use and misuse of digital currency.
He said one high-profile cryptocurrency case at the court was the subject of "huge international interest".
The cutting-edge body, managed by Dubai International Financial Centre (DIFC) Courts, has been heralded by authorities as a world first.
It provides civil and commercial litigation for cases within the rapidly expanding digital economy field.
The head judge of Dubai's dedicated digital economy court has told of how the emirate aims to keep pace with an evolving legal landscape to help safeguard the public against emerging threats such as cryptocurrency fraud.
Justice Michael Black works at the DIFC Courts’ Digital Economy Court, launched in December last year to act as a crucial arbiter in disputes arising from advanced technology, from artificial intelligence and big data to blockchain, 3D printing and robotics.
"It’s a new area and we are in no doubt that the wave is coming,” Justice Black told The National.
“We have to look at what was said to be science fiction about seven years ago and is now science fact.”
The senior judge said the court's current workload primarily involves the use and misuse of digital currency.
He said one high-profile cryptocurrency case at the court was the subject of "huge international interest".
The cutting-edge body, managed by Dubai International Financial Centre (DIFC) Courts, has been heralded by authorities as a world first.
It provides civil and commercial litigation for cases within the rapidly expanding digital economy field.
#Turkey approves Tab Gida's IPO, largest offering since 2018 | Reuters
Turkey approves Tab Gida's IPO, largest offering since 2018 | Reuters
Turkey's Capital Markets Board (SPK) gave the green light on Friday for an initial public offering by food services company TAB Gida, which is set to be the biggest dollar-denominated IPO since 2018.
Tab Gida, which holds franchise rights for Burger King, Popeyes and others, would raise 6.85 billion lira ($247 million) if all the shares were sold.
The company will float about 20% of its shares at 130 lira each, SPK said in a bulletin on Thursday. Shareholder TFI TAB Gida Yatirimlari will sell some shares along with a capital increase.
Listing proceeds will be used to finance new restaurant openings, a solar plant, and reducing financial debts.
The number of public offerings has soared this year in Turkey as domestic retail investors flocked to the stockmarket but the listings largely consisted of smaller companies, raising on average about $60 million.
Turkey's Capital Markets Board (SPK) gave the green light on Friday for an initial public offering by food services company TAB Gida, which is set to be the biggest dollar-denominated IPO since 2018.
Tab Gida, which holds franchise rights for Burger King, Popeyes and others, would raise 6.85 billion lira ($247 million) if all the shares were sold.
The company will float about 20% of its shares at 130 lira each, SPK said in a bulletin on Thursday. Shareholder TFI TAB Gida Yatirimlari will sell some shares along with a capital increase.
Listing proceeds will be used to finance new restaurant openings, a solar plant, and reducing financial debts.
The number of public offerings has soared this year in Turkey as domestic retail investors flocked to the stockmarket but the listings largely consisted of smaller companies, raising on average about $60 million.
Oil rises $2 as US sanctions, stockpile forecasts raise supply worries | Reuters
Oil rises $2 as US sanctions, stockpile forecasts raise supply worries | Reuters
Oil prices jumped $2 on Friday after the U.S. tightened its sanctions programme against Russian crude exports, raising supply concerns in an already tight market, and global inventories are forecast to decline through the fourth quarter.
Brent futures rose $1.96, or 2.28%, to $87.96 per barrel as of 0819 GMT. US West Texas Intermediate (WTI) crude gained $1.98, or 2.39%, to $84.89 a barrel. Both benchmarks had earlier hit gains of $2.
Despite fluctuations through the week in both benchmarks, Brent was set for a weekly gain of almost 4%, while WTI was set to climb over 2.5% for the week, after both contracts surged on Monday. The uptick was driven by the potential for disruptions to Middle Eastern exports after Palestinian militant group Hamas' attack on Israel at the weekend threatened a possible wider conflict.
"(A) geopolitical risk premium still lingers around the corner that is likely to support oil prices in the short-term," said Kelvin Wong, senior markets analyst at OANDA in Singapore.
Oil prices jumped $2 on Friday after the U.S. tightened its sanctions programme against Russian crude exports, raising supply concerns in an already tight market, and global inventories are forecast to decline through the fourth quarter.
Brent futures rose $1.96, or 2.28%, to $87.96 per barrel as of 0819 GMT. US West Texas Intermediate (WTI) crude gained $1.98, or 2.39%, to $84.89 a barrel. Both benchmarks had earlier hit gains of $2.
Despite fluctuations through the week in both benchmarks, Brent was set for a weekly gain of almost 4%, while WTI was set to climb over 2.5% for the week, after both contracts surged on Monday. The uptick was driven by the potential for disruptions to Middle Eastern exports after Palestinian militant group Hamas' attack on Israel at the weekend threatened a possible wider conflict.
"(A) geopolitical risk premium still lingers around the corner that is likely to support oil prices in the short-term," said Kelvin Wong, senior markets analyst at OANDA in Singapore.