Oil dives 4% to lowest since July on demand worry, strong dollar | Reuters
Oil prices fell more than 4% on Tuesday to their lowest since late July, as mixed Chinese economic data and rising OPEC exports eased fears about tight markets and as the dollar strengthened.
Brent crude futures closed below $84 a barrel for the first time since Hamas Islamists' Oct. 7 attack on Israel. The global benchmark settled at $81.61 a barrel, down $3.57, or 4.2%, while U.S. West Texas Intermediate crude futures settled at $77.37 a barrel, down $3.45, or 4.3%.
"Traders will remain on high alert for signs of a wider conflict emerging in the region that could disrupt supplies, but it seems those fears are subsiding," OANDA analyst Craig Erlam said.
A recovery in oil exports from the Organization of Petroleum Exporting Countries also added to the pressure on oil prices, UBS analyst Giovanni Staunovo said.
"OPEC crude exports are up by about 1 million barrels per day (bpd) since their August low, as a result of seasonally lower domestic demand in the Middle East. It seems it is too much supply to be absorbed by oil consuming nations," Staunovo said.
Tuesday 7 November 2023
#Saudi PIF in Talks to Invest in Chinese EV Maker Human Horizons - Bloomberg
Saudi PIF in Talks to Invest in Chinese EV Maker Human Horizons - Bloomberg
Saudi Arabia’s sovereign wealth fund is in talks to invest at least $250 million in Chinese electric-vehicle maker Human Horizons Group Inc., people familiar with the matter said, as part of the kingdom’s efforts to build a domestic auto industry.
The Public Investment Fund could buy into the Shanghai-based firm at a $3 billion valuation, the people said, asking not to be identified as the discussions are private. An agreement may be reached as soon as this year, but could take longer as terms are still being finalized, they said. No final decisions have been made.
Human Horizons, which has been exploring strategic options, is weighing raising as much as $1 billion from private investors to bolster growth, the people said. The firm has also been working with UBS Group AG and Morgan Stanley on a potential initial public offering, Bloomberg has reported.
Representatives for the PIF and Human Horizons declined to comment.
Saudi Arabia’s sovereign wealth fund is in talks to invest at least $250 million in Chinese electric-vehicle maker Human Horizons Group Inc., people familiar with the matter said, as part of the kingdom’s efforts to build a domestic auto industry.
The Public Investment Fund could buy into the Shanghai-based firm at a $3 billion valuation, the people said, asking not to be identified as the discussions are private. An agreement may be reached as soon as this year, but could take longer as terms are still being finalized, they said. No final decisions have been made.
Human Horizons, which has been exploring strategic options, is weighing raising as much as $1 billion from private investors to bolster growth, the people said. The firm has also been working with UBS Group AG and Morgan Stanley on a potential initial public offering, Bloomberg has reported.
Representatives for the PIF and Human Horizons declined to comment.
Gulf markets end mixed; #Qatar snaps 7-day winning streak | Reuters
Gulf markets end mixed; Qatar snaps 7-day winning streak | Reuters
Stock markets in the Gulf ended mixed on Tuesday as investor enthusiasm about a peak in global interest rates faded, with the Qatari index snapping seven sessions of gains.
The Qatari benchmark (.QSI) fell 0.3%, ending the winning streak, with petrochemical maker Industries Qatar (IQCD.QA) losing 1.7% and telecoms firm Ooredoo (ORDS.QA) declining 2.3%.
Dubai's main share index (.DFMGI) gained 0.8%, with top lender Emirates NBD (ENBD.DU) advancing 1.1% and Mashreq Bank (MASB.DU) closing up 5.2%.
Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum approved a budget of 246.6 billion dirham ($67.14 billion) for the emirate's government in 2024-2026, the Dubai media office said on Monday.
The Dubai stock market continued to recover from its losses in October. The market continues to find support in the strong local economic fundamentals while sentiment improves, said Daniel Takieddine, CEO MENA at BDSwiss.
"Performance could remain positive if traders continue to focus on softer monetary policy expectations," Takieddine said.
In Abu Dhabi, the index (.FTFADGI) finished flat.
Oil prices - a key catalyst for the Gulf's financial markets - hit fresh 2-1/2-month lows as mixed economic data from China offset the impact of Saudi Arabia and Russia extending output cuts.
Saudi Arabia's benchmark index (.TASI) closed flat with negligible loss.
Oil giant Saudi Aramco (2222.SE) rose 0.5% after reporting a 23% drop in third-quarter net profit, which marginally beat analyst estimates.
Meanwhile, auto rental firm Lumi (4262.SE) slipped 0.6%, after recording a quarterly net profit of 35 million riyals ($9.33 million), up from 30.5 million riyals last year but down 30% in sequentially.
Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 1.5%, led by a 3.5% leap in Commercial International Bank (COMI.CA).
Egypt is offering incentives to shore up its tourism industry in southern Sinai on the Red Sea, with fallout from the conflict in the Gaza Strip so far contained to under 10% of bookings in the country, the Egyptian tourism minister said on Monday.
Stock markets in the Gulf ended mixed on Tuesday as investor enthusiasm about a peak in global interest rates faded, with the Qatari index snapping seven sessions of gains.
The Qatari benchmark (.QSI) fell 0.3%, ending the winning streak, with petrochemical maker Industries Qatar (IQCD.QA) losing 1.7% and telecoms firm Ooredoo (ORDS.QA) declining 2.3%.
Dubai's main share index (.DFMGI) gained 0.8%, with top lender Emirates NBD (ENBD.DU) advancing 1.1% and Mashreq Bank (MASB.DU) closing up 5.2%.
Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum approved a budget of 246.6 billion dirham ($67.14 billion) for the emirate's government in 2024-2026, the Dubai media office said on Monday.
The Dubai stock market continued to recover from its losses in October. The market continues to find support in the strong local economic fundamentals while sentiment improves, said Daniel Takieddine, CEO MENA at BDSwiss.
"Performance could remain positive if traders continue to focus on softer monetary policy expectations," Takieddine said.
In Abu Dhabi, the index (.FTFADGI) finished flat.
Oil prices - a key catalyst for the Gulf's financial markets - hit fresh 2-1/2-month lows as mixed economic data from China offset the impact of Saudi Arabia and Russia extending output cuts.
Saudi Arabia's benchmark index (.TASI) closed flat with negligible loss.
Oil giant Saudi Aramco (2222.SE) rose 0.5% after reporting a 23% drop in third-quarter net profit, which marginally beat analyst estimates.
Meanwhile, auto rental firm Lumi (4262.SE) slipped 0.6%, after recording a quarterly net profit of 35 million riyals ($9.33 million), up from 30.5 million riyals last year but down 30% in sequentially.
Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 1.5%, led by a 3.5% leap in Commercial International Bank (COMI.CA).
Egypt is offering incentives to shore up its tourism industry in southern Sinai on the Red Sea, with fallout from the conflict in the Gaza Strip so far contained to under 10% of bookings in the country, the Egyptian tourism minister said on Monday.
#AbuDhabi’s Investment Fund Joins KKR for Telecom Italia’s Grid - Bloomberg
Abu Dhabi’s Investment Fund Joins KKR for Telecom Italia’s Grid - Bloomberg
The Abu Dhabi Investment Authority, which controls almost $1 trillion in assets, is part of the KKR & Co.-led consortium acquiring Telecom Italia’s landline network.
ADIA is one of the controlling investors of acquisition vehicle Optics Bidco, according to a statement that Telecom Italia filed late Monday. The sovereign wealth fund’s involvement was first reported by Bloomberg in July.
The bidders have offered to buy Telecom Italia’s fixed network in a blockbuster deal valued at as much as €22 billion ($23.6 billion). KKR has partnered with the Italian government on the deal, which could provide a lifeline for the debt-laden former phone monopoly.
ADIA has backed some of the largest buyout deals in Europe this year, including EQT AB’s approximately £4.5 billion ($5.5 billion) take-private of UK veterinary drug maker Dechra Pharmaceuticals Plc. The fund is also part of a private equity-led investor group weighing a buyout of European online classifieds company Adevinta ASA.
The Italian government is set to get a 20% stake in the network unit as part of the Telecom Italia deal, and Prime Minister Giorgia Meloni has set aside as much as €2.5 billion in state funds to invest in the company.
Still, Telecom Italia’s top shareholder Vivendi SE has said it will challenge the deal in court as it seeks to block the sale.
The Abu Dhabi Investment Authority, which controls almost $1 trillion in assets, is part of the KKR & Co.-led consortium acquiring Telecom Italia’s landline network.
ADIA is one of the controlling investors of acquisition vehicle Optics Bidco, according to a statement that Telecom Italia filed late Monday. The sovereign wealth fund’s involvement was first reported by Bloomberg in July.
The bidders have offered to buy Telecom Italia’s fixed network in a blockbuster deal valued at as much as €22 billion ($23.6 billion). KKR has partnered with the Italian government on the deal, which could provide a lifeline for the debt-laden former phone monopoly.
ADIA has backed some of the largest buyout deals in Europe this year, including EQT AB’s approximately £4.5 billion ($5.5 billion) take-private of UK veterinary drug maker Dechra Pharmaceuticals Plc. The fund is also part of a private equity-led investor group weighing a buyout of European online classifieds company Adevinta ASA.
The Italian government is set to get a 20% stake in the network unit as part of the Telecom Italia deal, and Prime Minister Giorgia Meloni has set aside as much as €2.5 billion in state funds to invest in the company.
Still, Telecom Italia’s top shareholder Vivendi SE has said it will challenge the deal in court as it seeks to block the sale.
#Dubai Real Estate: Russians Slow Purchases of Pricey Properties With Ruble Fall - Bloomberg
Dubai Real Estate: Russians Slow Purchases of Pricey Properties With Ruble Fall - Bloomberg
The Russian property boom in Dubai appears to be over.
Russian purchases of Dubai real estate have been slowing down over the last few months, brokers say, during a year in which the ruble lost a third of its value. Meanwhile, there’s a natural ebb after a flurry of buying in the year following the Ukraine invasion, according to the brokers, and some Russians who have resettled here decided Dubai just wasn’t for them and have moved on.
Russians traditionally have been fans of United Arab Emirates property, but they really flooded into the market in 2022, when international sanctions squeezed Russia’s economy and finances after the country’s invasion of Ukraine. They were part of a post-pandemic market boom that’s pushed home prices up about 30% in the past two years to September, according to CBRE Group Inc.
One luxury broker says Russians have become net sellers at his firm, repatriating money after big gains in the emirate’s red-hot property market or getting out of deals they can no longer afford.
“They’re taking profits,” said Abdullah Alajaji, founder of Driven Properties, whose Russian clients bought 146.5 million dirhams’ ($39.9 million) worth of real estate in June through August and sold 276 million dirhams’ worth in the same period.
The Russian property boom in Dubai appears to be over.
Russian purchases of Dubai real estate have been slowing down over the last few months, brokers say, during a year in which the ruble lost a third of its value. Meanwhile, there’s a natural ebb after a flurry of buying in the year following the Ukraine invasion, according to the brokers, and some Russians who have resettled here decided Dubai just wasn’t for them and have moved on.
Russians traditionally have been fans of United Arab Emirates property, but they really flooded into the market in 2022, when international sanctions squeezed Russia’s economy and finances after the country’s invasion of Ukraine. They were part of a post-pandemic market boom that’s pushed home prices up about 30% in the past two years to September, according to CBRE Group Inc.
One luxury broker says Russians have become net sellers at his firm, repatriating money after big gains in the emirate’s red-hot property market or getting out of deals they can no longer afford.
“They’re taking profits,” said Abdullah Alajaji, founder of Driven Properties, whose Russian clients bought 146.5 million dirhams’ ($39.9 million) worth of real estate in June through August and sold 276 million dirhams’ worth in the same period.
Turkish Billionaire Ferit Sahenk Approaches QIA for Istanbul Port Sale - Bloomberg
Turkish Billionaire Ferit Sahenk Approaches QIA for Istanbul Port Sale - Bloomberg
Turkish billionaire Ferit Sahenk has approached the Qatar Investment Authority to gauge the wealth fund’s interest in potentially buying a cruise port and shopping mall project in the heart of Istanbul, according to people with knowledge of the matter.
The project — Galataport — was financed partly with a €1.02 billion ($1.1 billion) loan and Sahenk plans to use any proceeds from a potential sale to repay that debt, said the people, who declined to be identified as the talks are private. Talks are at an early stage and a deal may not eventually materialize, they said.
The $1.7 billion cruise port project, built by Sahenk’s Dogus Group and smaller partner Bilgili Holding under a 30-year government contract, was beset with delays and opened in 2021. The port, on the Bosphorus, has a 1.2 kilometer coastline and is projected to average 25 million visitors and 1.5 million passengers a year.
Shares in Dogus REIT, a subsidiary of Sahenk’s holding company, rose as much as 8.6% in Istanbul.
Representatives for Dogus and Bilgili weren’t available for comment. The QIA declined to comment.
Sahenk, once Turkey’s richest man, spent heavily on hotels, marinas and restaurants after selling his stake in Turkiye Garanti Bankasi AS to Spain’s BBVA for about $5 billion.
For the past few years, his firm — Dogus — has been trying to raise cash and deliver on pledges it made to banks as part of a debt restructuring. In 2020, the company agreed to sell a 30% stake in a high-end Istanbul shopping center to an arm of the QIA.
Turkish billionaire Ferit Sahenk has approached the Qatar Investment Authority to gauge the wealth fund’s interest in potentially buying a cruise port and shopping mall project in the heart of Istanbul, according to people with knowledge of the matter.
The project — Galataport — was financed partly with a €1.02 billion ($1.1 billion) loan and Sahenk plans to use any proceeds from a potential sale to repay that debt, said the people, who declined to be identified as the talks are private. Talks are at an early stage and a deal may not eventually materialize, they said.
The $1.7 billion cruise port project, built by Sahenk’s Dogus Group and smaller partner Bilgili Holding under a 30-year government contract, was beset with delays and opened in 2021. The port, on the Bosphorus, has a 1.2 kilometer coastline and is projected to average 25 million visitors and 1.5 million passengers a year.
Shares in Dogus REIT, a subsidiary of Sahenk’s holding company, rose as much as 8.6% in Istanbul.
Representatives for Dogus and Bilgili weren’t available for comment. The QIA declined to comment.
Sahenk, once Turkey’s richest man, spent heavily on hotels, marinas and restaurants after selling his stake in Turkiye Garanti Bankasi AS to Spain’s BBVA for about $5 billion.
For the past few years, his firm — Dogus — has been trying to raise cash and deliver on pledges it made to banks as part of a debt restructuring. In 2020, the company agreed to sell a 30% stake in a high-end Istanbul shopping center to an arm of the QIA.
#Saudi Aramco net profit drops less than expected, shares inch up | Reuters
Saudi Aramco net profit drops less than expected, shares inch up | Reuters
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Saudi Aramco (2222.SE) on Tuesday reported a 23% fall in third-quarter net profit on the back of lower oil prices and volumes sold, marginally beating analyst estimates and helping prop up its shares in early trade.
Net profit fell to $32.6 billion for the quarter to Sept. 30, above the $31.8 billion expected by 12 analysts in a company-provided forecast.
The Saudi oil producer said lower oil prices and volumes were partially offset by a reduction in production royalties.
The group's shares, up about 15% this year, pared earlier gains to inch up 0.3% to 33.55 riyals by 1000 GMT.
Chevron (CVX.N) and Exxon Mobil (XOM.N) last month reported sharp year-on-year falls in third-quarter profit as energy prices cooled.
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Saudi Aramco (2222.SE) on Tuesday reported a 23% fall in third-quarter net profit on the back of lower oil prices and volumes sold, marginally beating analyst estimates and helping prop up its shares in early trade.
Net profit fell to $32.6 billion for the quarter to Sept. 30, above the $31.8 billion expected by 12 analysts in a company-provided forecast.
The Saudi oil producer said lower oil prices and volumes were partially offset by a reduction in production royalties.
The group's shares, up about 15% this year, pared earlier gains to inch up 0.3% to 33.55 riyals by 1000 GMT.
Chevron (CVX.N) and Exxon Mobil (XOM.N) last month reported sharp year-on-year falls in third-quarter profit as energy prices cooled.
Major Gulf markets mixed; #Saudi to snap 7-day winning streak | Reuters
Major Gulf markets mixed; Saudi to snap 7-day winning streak | Reuters
Major stock markets in the Gulf were mixed in early trade on Tuesday amid falling oil prices, with the Saudi index on course to snap a seven-day winning streak.
Oil prices slipped on Tuesday, erasing Monday's gains as mixed economic data from second-largest oil consumer China and winter demand worries offset the impact of Saudi Arabia and Russia extending output cuts.
Saudi Arabia's benchmark index (.TASI) fell 0.2%, and was on course to end seven straight sessions of gains, as Lumi Rental (4262.SE) fell 0.8%.
The auto rental firm recorded a quarterly net profit of 35 million riyals ($9.3 million), up from 30.5 million riyals last year but down 30% in sequentially.
Meanwhile, Malath Cooperative Insurance (8020.SE) plunged about 9% after posting a quarterly loss.
On the other hand, oil giant Saudi Aramco (2222.SE) rose 0.5% after reporting a 23% drop in third-quarter net profit, which marginally beat analyst estimates.
Saudi Arabia, OPEC's de facto leader, said it would continue with voluntary oil output cut of 1 million barrels per day (bpd) until the end of the year and review the decision next month.
The Qatari benchmark (.QSI) dropped 0.5%, dragged by a 1.7% decline in petrochemical maker Industries Qatar (IQCD.QA) and a 1.3% decrease in Islamic lender Masraf Al Rayan (MARK.QA).
Elsewhere, Dubai's main share index (.DFMGI) gained 0.5%, with toll operator Salik (SALIK.DU) rising 1.3% and blue-chip developer Emaar Properties (EMAR.DU) trading 0.9% higher.
Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum approved a budget of 246.6 billion dirham ($67.14 billion) for the emirate's government in 2024-2026, the Dubai media office said on Monday.
In Abu Dhabi, the index (.FTFADGI) added 0.2%.
Major stock markets in the Gulf were mixed in early trade on Tuesday amid falling oil prices, with the Saudi index on course to snap a seven-day winning streak.
Oil prices slipped on Tuesday, erasing Monday's gains as mixed economic data from second-largest oil consumer China and winter demand worries offset the impact of Saudi Arabia and Russia extending output cuts.
Saudi Arabia's benchmark index (.TASI) fell 0.2%, and was on course to end seven straight sessions of gains, as Lumi Rental (4262.SE) fell 0.8%.
The auto rental firm recorded a quarterly net profit of 35 million riyals ($9.3 million), up from 30.5 million riyals last year but down 30% in sequentially.
Meanwhile, Malath Cooperative Insurance (8020.SE) plunged about 9% after posting a quarterly loss.
On the other hand, oil giant Saudi Aramco (2222.SE) rose 0.5% after reporting a 23% drop in third-quarter net profit, which marginally beat analyst estimates.
Saudi Arabia, OPEC's de facto leader, said it would continue with voluntary oil output cut of 1 million barrels per day (bpd) until the end of the year and review the decision next month.
The Qatari benchmark (.QSI) dropped 0.5%, dragged by a 1.7% decline in petrochemical maker Industries Qatar (IQCD.QA) and a 1.3% decrease in Islamic lender Masraf Al Rayan (MARK.QA).
Elsewhere, Dubai's main share index (.DFMGI) gained 0.5%, with toll operator Salik (SALIK.DU) rising 1.3% and blue-chip developer Emaar Properties (EMAR.DU) trading 0.9% higher.
Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum approved a budget of 246.6 billion dirham ($67.14 billion) for the emirate's government in 2024-2026, the Dubai media office said on Monday.
In Abu Dhabi, the index (.FTFADGI) added 0.2%.