Tuesday, 9 January 2024

Boeing Becomes the Poor Relation in Duopoly With Airbus - Bloomberg

Boeing Becomes the Poor Relation in Duopoly With Airbus - Bloomberg




When Boeing Co. was building a seemingly unassailable position in commercial aviation in the 1960s and ‘70s, passengers’ faith in its relentless focus on quality inspired the slogan “ if it ain’t Boeing, I ain’t going.”

Following the latest calamity to befall the US aerospace giant — the in-flight blowout of a 737 Max door plug of a plane operated by Alaska Air Group Inc. that fortunately wasn’t fatal, unlike the two crashes involving 737 Max jets in 2018 and 2019 — aviation requires a new catchphrase that encapsulates Boeing’s shattered safety reputation and the ascendancy of its only serious rival. This nervous flier suggests “If it ain’t Airbus, the regular bus will do just fine.”

In the wake of the Lion Air and Ethiopian Airlines disasters, I wrote that the Airbus-Boeing dupoly had become “extremely unbalanced.” At this point, I’m running out of hyperbole to describe the starkly diverging fortunes of the two aircraft manufacturers.

Notwithstanding a punishing pandemic and supplier difficulties that have slowed Airbus’ advance, on just about every metric the European firm is now trouncing its US rival. Barring an unforced error, it’s hard to see the Americans catching up for years.



#UAE Bans Tankers Flying Cameroon Flag On Safety Concern - Bloomberg

UAE Bans Tankers Flying Cameroon Flag On Safety Concern - Bloomberg

The United Arab Emirates banned ships arriving in its waters that sail under the flag of Cameroon — a move that distances the emirate from risky vessels that have been assembled to transport sanctioned oil.

The Cameroon flag has been added to a restricted list and maritime companies and ship agents should not provide vessels registered in the African country with services, according to a Ministry of Energy and Infrastructure circular published on the Port of Fujairah website. The ban won’t apply to ships that have been assessed by a wider international classification body.

Most merchant ships sail under flags far from the countries in which they’re owned or operated. Popular ones include Panama and the Marshall Islands, which are integral in upholding safety standards in the shipping industry.

But when Russia assembled a vast shadow fleet of tankers to keep its oil moving in the face of US sanctions, part of that fleet turned to little-known flags such as Cameroon’s.

Oil prices climb over 2% on Mideast crisis and Libya outage | Reuters

Oil prices climb over 2% on Mideast crisis and Libya outage | Reuters

Oil prices climbed over 2% on Tuesday as the Middle East crisis and a Libyan supply outage pared the previous day's heavy losses.

Brent futures rose $1.90, or 2.5%, to $78.02 a barrel by 11:59 a.m. (1659 GMT). U.S. West Texas Intermediate crude (WTI) rose $1.91, or 2.7%, to $72.68.

Both benchmarks were up more than $2 at their session highs.

Prices were supported by the closure of Libya's 300,000 barrels per day Sharara oilfield, one of Libya's largest, which has been a frequent target for local and broader political protests, and Middle East tensions.

Major Gulf markets mixed ahead of US inflation data | Reuters

Major Gulf markets mixed ahead of US inflation data | Reuters


Major stock markets in the Gulf diverged on Tuesday as investors awaited U.S. inflation data for clues on the timing of interest rate cuts.

Data on Friday showed U.S. employers hired more workers than expected in December, dousing expectations of a rapid easing of interest rates and leading market participants to shift attention to U.S. inflation data due on Thursday for more clarity on the trajectory of borrowing costs.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy because most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index (.TASI) lost 0.4%, hit by a 3.7% fall for Etihad Atheeb Telecommunication (7040.SE) while oil giant Saudi Aramco (2222.SE) gained 0.6%.

Saudi Arabia National Debt Management Centre completed the first issuance of U.S. dollar international bonds in 2024, worth $12 billion, it said in a statement. The $12 billion was via a triple-tranche offering.

Dubai's main share index (.DFMGI) gained 0.7%, led by a 1% rise for blue-chip developer Emaar Properties (EMAR.DU) and a 1.6% gain for Dubai Electricity and Water Authority (DEWAA.DU).

The Dubai stock market continued to climb in small increments. The market could encounter resistance near current levels, said Daniel Takieddine, CEO MENA at BDSwiss, adding that strong local fundamentals could offer market support.

In Abu Dhabi, the index (.FTFADGI) closed 0.6% up.

The Qatari benchmark (.QSI) fell 0.6%, with Qatar Islamic Bank (QISB.QA) down 1.3% and Qatar National Bank (QNBK.QA) declining by 0.9%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) edged up by 0.1%, with Abu Qir Fertilizers and Chemical Industries (ABUK.CA) jumping 3.3%.

Egypt's inflation rate probably fell for a third straight month in December on lower food prices but could rebound in coming months after recent government price increases and a possible currency devaluation, a Reuters poll showed on Monday.

#AbuDhabi Real Estate: Q Holding Names Chair, CEO - Bloomberg

Abu Dhabi Real Estate: Q Holding Names Chair, CEO - Bloomberg

Q Holding, an Abu Dhabi firm with $12 billion of real estate assets, said it made key senior appointments as it prepares to expand across the oil-rich emirate.

Jassem Al Zaabi, the chairman of Abu Dhabi’s Department of Finance, will also chair Q Holding. Bill O’Regan, who was previously the chief executive officer of Modon Properties, will become Group CEO of the company. Abdullah Al Sahi was appointed group managing director, according to a statement on Tuesday.

In August, Abu Dhabi consolidated its key real estate assets under Q Holding to help bolster the emirate’s economic transformation efforts. Sovereign wealth fund ADQ and the emirate’s most valuable listed firm, International Holding Co. combined their shareholdings in Modon and ADQ’s stake in Abu Dhabi National Exhibitions Co. into the company.

Q Holding is now one of the region’s largest real estate firms with a portfolio that spans developments, venues, land plots and hospitality assets.

#SaudiArabia Issues $12 Billion Bond as EM Nations Load Up - Bloomberg

Saudi Arabia Issues $12 Billion Bond as EM Nations Load Up - Bloomberg


Saudi Arabia sold $12 billion of bonds — its largest deal since 2017 — amid a record start to a year for emerging-market countries.

The kingdom added to the almost $25 billion of bonds that developing nations had sold since the start of the year, the biggest of those being a $7.5 billion offering from Mexico. The Saudi deal is equivalent to more than half the fiscal deficit the government is projecting for this year.

Many borrowers are seeking to lock in lower funding costs following a steep drop in US Treasury yields since October. While the Federal Reserve is widely expected to start cutting interest rates this year, pushing down yields even more, that probably won’t happen for several months.

The kingdom sold six-, 10- and 30-year notes with respective yields of 4.89%, 5.13% and 5.91%. Ten-year US Treasuries trade around 4%.

Investors placed around $30 billion of orders, according to Saudi Arabia’s debt office. Citigroup Inc., JPMorgan Chase & Co., HSBC Holdings Plc and Standard Chartered Plc were the main banks managing the sale.

Oil tries to regain footing as Middle East crisis, OPEC supply in focus | Reuters

Oil tries to regain footing as Middle East crisis, OPEC supply in focus | Reuters

Oil prices steadied on Tuesday after sliding in the previous session, as markets weighed Middle East tensions against demand worries and rising OPEC supply.

Brent crude futures rose 17 cents, or 0.2%, to $76.29 a barrel at 0707 GMT, while U.S. West Texas Intermediate crude futures inched up 0.1%, or 5 cents, to $70.82 a barrel.

The benchmarks had fallen over 3% and 4% respectively on Monday on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output.

Most Gulf markets track Asian shares higher | Reuters

Most Gulf markets track Asian shares higher | Reuters

Most major stock markets in the Gulf rose in early trade on Tuesday tracking Asian shares, as investors look to U.S inflation numbers due this week, which could provide clarity on when the Federal Reserve might start cutting interest rates.

Overnight, the New York Fed's latest Survey of Consumer Expectations showed that U.S. consumers' projections of inflation over the short run fell to the lowest level in nearly three years in December.

That reinforced bets for Fed cuts to begin soon, though some analysts say the market pricing of monetary easing is overdone.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy because most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index (.TASI) gained 0.3%, with oil company Saudi Aramco (2222.SE) rising 0.6%.

Elsewhere, media giant MBC Group (4072.SE) surged 30%, on course to extend gains from the previous session when it jumped 30% on its market debut.

Newly listed stocks in Riyadh are allowed to rise or fall up to 30% on their first three days of trading.

The kingdom launched a $12 billion, three-part bond issue on Monday, generating more than $30 billion in orders amid strong investor demand.

Dubai's main share index (.DFMGI) added 0.6%, with utility firm Dubai Electricity and Water Authority (DEWAA.DU) increasing 1.2%.

In Abu Dhabi, the index (.FTFADGI) climbed 0.5%.

The Qatari benchmark (.QSI), however, eased 0.1%, hit by a 0.3% decrease in Qatar Islamic Bank (QISB.QA).