Oman Joins Other Oil Producers Saying OPEC Made Wrong Decision - Bloomberg:
"Oman, the biggest Middle Eastern oil producer that’s not a member of OPEC, joined Venezuela and Iran in questioning the group’s decision to keep its output target unchanged even with crude prices falling.
Oman is having a “really difficult time” because of low oil prices, Oman’s Oil Minister Mohammed Al-Rumhy said at a conference in Kuwait City. Standard & Poor’s lowered the country’s outlook to negative from stable on Dec. 5, citing a risk that oil may drop more than expected.
Brent crude slumped 54 percent in the past year as OPEC maintained its target at the group’s Nov. 27 meeting to defend market share amid a U.S. shale boom that’s exacerbating a global glut. Saudi Arabia, the largest producer in the Organization of Petroleum Exporting Countries, led that decision, while fellow members Iran and Venezuela wanted to cut output."
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Wednesday 21 January 2015
Tasweek reaffirms IPO plans for the first quarter | The National
Tasweek reaffirms IPO plans for the first quarter | The National:
"The Abu Dhabi-based property investor Tasweek expects to launch an initial public offering this quarter after having postponed the issue because of market volatility, its chief executive said yesterday.
The firm, which was supposed to go public by last month, has yet to decide whether to list in Abu Dhabi or Dubai. The IPO for 55 per cent of the company’s shares is expected to raise between Dh500 million and Dh700m, said Masood Al Awar.
“We postponed it because we saw how the market was going, but the plan will go ahead,” he said."
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"The Abu Dhabi-based property investor Tasweek expects to launch an initial public offering this quarter after having postponed the issue because of market volatility, its chief executive said yesterday.
The firm, which was supposed to go public by last month, has yet to decide whether to list in Abu Dhabi or Dubai. The IPO for 55 per cent of the company’s shares is expected to raise between Dh500 million and Dh700m, said Masood Al Awar.
“We postponed it because we saw how the market was going, but the plan will go ahead,” he said."
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DP World shares end London trade | The National
DP World shares end London trade | The National:
"Shares of DP World rose 4.6 per cent on low volumes after five consecutive sessions of declines as the global ports operator delisted from the London Stock Exchange. Yesterday was the last day of trading and listing for DP World in London and its shares closed there up at £11.50. each.
Fund managers and brokers yesterday said the moves by DP World and the property developer Damac, which from this month traded shares in Dubai, should signal whether there is a compelling argument for companies that previously sought listings in London to consider having their stock traded on the UAE bourses.
“I think it’s a very good move when a listed company tries to rationalise and consolidate the number of stock exchanges in order to concentrate on the most liquid exchange and liquidity is not divided across different markets,” said Sebastien Henin, the head of asset management at Abu Dhabi-based The National Investor. “It’s better one company is listed in one market where liquidity is enough rather than two exchanges where liquidity is average.”"
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"Shares of DP World rose 4.6 per cent on low volumes after five consecutive sessions of declines as the global ports operator delisted from the London Stock Exchange. Yesterday was the last day of trading and listing for DP World in London and its shares closed there up at £11.50. each.
Fund managers and brokers yesterday said the moves by DP World and the property developer Damac, which from this month traded shares in Dubai, should signal whether there is a compelling argument for companies that previously sought listings in London to consider having their stock traded on the UAE bourses.
“I think it’s a very good move when a listed company tries to rationalise and consolidate the number of stock exchanges in order to concentrate on the most liquid exchange and liquidity is not divided across different markets,” said Sebastien Henin, the head of asset management at Abu Dhabi-based The National Investor. “It’s better one company is listed in one market where liquidity is enough rather than two exchanges where liquidity is average.”"
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Shrill campaigns against the Gulf will not work | GulfNews.com
Shrill campaigns against the Gulf will not work | GulfNews.com:
"As oil prices began to tumble, some countries unleashed media campaigns attacking the GCC countries holding them accountable for the collapse ... as if they are the only oil producers and exporters in the world. These campaigns included reports that distorted facts, false accusations and exaggerations about the expected repercussions on their economies.
The first campaign was unleashed by Iran, and in which its “moderate” President Hassan Rouhani joined the chorus, blaming the fall in global oil prices on some GCC countries, a clear reference to the UAE and Saudi Arabia. He went as far as to threaten the Gulf states — saying they would regret helping in cutting oil prices.
What did the Gulf states do to receive this kind of vituperation? Did they increase production? The facts say certainly not. GCC’s production has remained stable in recent years, while the increased supply actually came from the US and Iraq. Going by what they say, the US should be the one held responsible for the price collapse."
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"As oil prices began to tumble, some countries unleashed media campaigns attacking the GCC countries holding them accountable for the collapse ... as if they are the only oil producers and exporters in the world. These campaigns included reports that distorted facts, false accusations and exaggerations about the expected repercussions on their economies.
The first campaign was unleashed by Iran, and in which its “moderate” President Hassan Rouhani joined the chorus, blaming the fall in global oil prices on some GCC countries, a clear reference to the UAE and Saudi Arabia. He went as far as to threaten the Gulf states — saying they would regret helping in cutting oil prices.
What did the Gulf states do to receive this kind of vituperation? Did they increase production? The facts say certainly not. GCC’s production has remained stable in recent years, while the increased supply actually came from the US and Iraq. Going by what they say, the US should be the one held responsible for the price collapse."
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Is Dollar Next? Investors Reassess After Swiss Shock: Currencies - Bloomberg
Is Dollar Next? Investors Reassess After Swiss Shock: Currencies - Bloomberg:
"After Switzerland shocked markets by scrapping its currency cap, investors are beginning to ask whether a policy surprise may be lurking for the dollar, too.
Samson Capital Advisors LLC said the Swiss move, which sent the franc surging as much as 41 percent against the euro last week, was “a good reminder” of the risks of following the herd, just as speculators pushed bets on a dollar rally to a new high. A shock from the Federal Reserve, such as raising interest rates less quickly than investors expect, may derail the greenback after it advanced to the highest in a decade, State Street Global Advisors Inc. warned.
“People have to be re-assessing what their positions are,” Jonathan Lewis, chief investment officer at New York-based Samson, which has $7.4 billion in assets, said by phone on Jan. 16. In the case of Switzerland, “people were betting billions of dollars on the kindness of strangers, people they’d never met, whose names they couldn’t pronounce.”"
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"After Switzerland shocked markets by scrapping its currency cap, investors are beginning to ask whether a policy surprise may be lurking for the dollar, too.
Samson Capital Advisors LLC said the Swiss move, which sent the franc surging as much as 41 percent against the euro last week, was “a good reminder” of the risks of following the herd, just as speculators pushed bets on a dollar rally to a new high. A shock from the Federal Reserve, such as raising interest rates less quickly than investors expect, may derail the greenback after it advanced to the highest in a decade, State Street Global Advisors Inc. warned.
“People have to be re-assessing what their positions are,” Jonathan Lewis, chief investment officer at New York-based Samson, which has $7.4 billion in assets, said by phone on Jan. 16. In the case of Switzerland, “people were betting billions of dollars on the kindness of strangers, people they’d never met, whose names they couldn’t pronounce.”"
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Record Saudi Utility Loss Fails to Interrupt Bond Rally - Bloomberg
Record Saudi Utility Loss Fails to Interrupt Bond Rally - Bloomberg:
"The biggest quarterly loss in at least 10 years is failing to thwart a record rally in Saudi Electricity Co. (SECO) bonds as investors bet on lasting government support.
Yields on the utility’s sukuk due April 2024 dropped to 3.16 percent on Jan. 20, the lowest since they were sold, even after the state-owned power supplier posted a fourth-quarter loss of 1.8 billion riyals ($479 million). Two of Saudi Electricity’s Shariah-compliant bonds lead gains in the Gulf Cooperation Council this month, extending 2014’s top returns.
The performance reflects confidence that state backing for the Riyadh-based company will be sustained in the face of the lowest oil prices in almost six years. Saudi Arabia, the world’s largest oil exporter, has never issued dollar sukuk, making securities from the 81 percent state-owned utility a proxy for the sovereign."
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"The biggest quarterly loss in at least 10 years is failing to thwart a record rally in Saudi Electricity Co. (SECO) bonds as investors bet on lasting government support.
Yields on the utility’s sukuk due April 2024 dropped to 3.16 percent on Jan. 20, the lowest since they were sold, even after the state-owned power supplier posted a fourth-quarter loss of 1.8 billion riyals ($479 million). Two of Saudi Electricity’s Shariah-compliant bonds lead gains in the Gulf Cooperation Council this month, extending 2014’s top returns.
The performance reflects confidence that state backing for the Riyadh-based company will be sustained in the face of the lowest oil prices in almost six years. Saudi Arabia, the world’s largest oil exporter, has never issued dollar sukuk, making securities from the 81 percent state-owned utility a proxy for the sovereign."
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Crude Collapse Has Investors Braced for ’80s-Like Oil Casualties - Bloomberg
Crude Collapse Has Investors Braced for ’80s-Like Oil Casualties - Bloomberg:
"When a glut of crude flooded the market in the 1980s, scores of energy companies disappeared through almost five years of depressed prices. Investors are worried history is repeating itself.
The supply overhang led to a 66 percent slide in prices over four months, starting in November 1985. Bankruptcies and mergers reduced the number of U.S. producers by 54 percent before a price rebound took hold in 1990.
While the rout of the past seven months hasn’t yet led to the carnage of three decades ago, there are ominous signs. North American producers are cutting spending, staff and dividends to stay afloat amid forecasts for U.S. crude below $40 a barrel. Investors are fleeing those most at risk. "
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"When a glut of crude flooded the market in the 1980s, scores of energy companies disappeared through almost five years of depressed prices. Investors are worried history is repeating itself.
The supply overhang led to a 66 percent slide in prices over four months, starting in November 1985. Bankruptcies and mergers reduced the number of U.S. producers by 54 percent before a price rebound took hold in 1990.
While the rout of the past seven months hasn’t yet led to the carnage of three decades ago, there are ominous signs. North American producers are cutting spending, staff and dividends to stay afloat amid forecasts for U.S. crude below $40 a barrel. Investors are fleeing those most at risk. "
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HSBC, JPMorgan Said Among Banks Seeking Aluminum Bahrain Mandate - Bloomberg
HSBC, JPMorgan Said Among Banks Seeking Aluminum Bahrain Mandate - Bloomberg:
"Banks including HSBC Holdings Plc (HSBA), JPMorgan Chase & Co. (JPM), and Standard Chartered Plc (STAN) are pitching to advise Aluminium Bahrain on funding for its $2.5 billion expansion, according to three people familiar with the matter.
BNP Paribas SA (BNP), which was appointed financial adviser for the initial stages of the expansion project in 2012, is also seeking to continue in the role, the people said. Alba, as the company is known, is considering funding the expansion through a bond issue or bank loans, the people said, asking not to be identified as the information is private.
The government of Bahrain approved the allocation of natural gas for Alba’s expansion plans in October. The construction of a sixth production line at its smelter will add 400,000 tonnes to the 890,000 tonne capacity. Alba is also considering a secondary listing of its shares in Saudi Arabia, the company said in September."
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"Banks including HSBC Holdings Plc (HSBA), JPMorgan Chase & Co. (JPM), and Standard Chartered Plc (STAN) are pitching to advise Aluminium Bahrain on funding for its $2.5 billion expansion, according to three people familiar with the matter.
BNP Paribas SA (BNP), which was appointed financial adviser for the initial stages of the expansion project in 2012, is also seeking to continue in the role, the people said. Alba, as the company is known, is considering funding the expansion through a bond issue or bank loans, the people said, asking not to be identified as the information is private.
The government of Bahrain approved the allocation of natural gas for Alba’s expansion plans in October. The construction of a sixth production line at its smelter will add 400,000 tonnes to the 890,000 tonne capacity. Alba is also considering a secondary listing of its shares in Saudi Arabia, the company said in September."
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