Category Archives: Finance

MIDEAST STOCKS-Shares retreat as investors reduce back exposure to oil-linked markets

* Oil’s drop to near 11 year lows drags down Gulf markets

* Saudi Arabia down 32 percent from 2015 peak

* Dubai worst performing Gulf market place in 2015

* Egypt monetary policy selection this week as inflation up

By Celine Aswad

DUBAI, Dec 13 Gulf bourses fell on Sunday as the crude price slumped to near 11-year lows and investors scurried to cut back their exposure to oil dependents markets.

Brent crude posted its biggest weekly percentage drop in over a year on Friday to settle at $ 37.93 soon after the International Power Agency (IEA) warned global oversupply of crude could worsen next year.

Saudi’s benchmark index plunged two.7 to 6,764 points. It is down 32 percent from a 2015 peak of 9,897 on April 30.

Brent has fallen 47 percent over the very same period.

“Low oil costs coupled with investors’ heightened nervousness about the kingdom’s spending budget has compounded volatility in the markets,” stated Hisham Tuffaha, head of equity investments at Riyadh-based Mulkia Investments.

“Overall we are in a downtrend, for some sectors this is justified, specially oil-linked industries like petrochemicals, other segments such as banks this is less so.”

Saudi Telecom Co (STC), the country’s largest telecommunications organization, dropped 1.9 %, regardless of the Kuwaiti industry regulator approving STC’s takeover strategy for Kuwait’s Viva.

The retail sector was down three.five %, with Saudi Business for Hardware (SACO) and Al Othaim losing six.three and 3.7 % respectively.

Recent retail data showed signs of weakness, as customers are shopping less and cutting back on spending at shops, according to a note by Saudi’s NCB Capital.

“The slowing development in sales transaction values is comparable to the period for the duration of the international financial crisis and oil value declines in 2008,” NCB Capital’s note added.

Dubai’s index fell two.1 % to two,883 points. It is down 23.6 percent in 2015, creating it the worst performing Gulf bourse this year.

Emirates NBD – Dubai’s biggest bank by market place value – tumbled 4.1 %, reversing earlier session gains. Dubai Islamic Bank fell three percent to five.42 dirhams, a 2015 low.

Arabtec retreated three.7 %, falling near a four-year low.

Abu Dhabi’s index dropped 2.1 % as blue-chip Etisalat, the largest stock by market value, slid two.5 %. The telecom company is up 57.2 percent this year, which has helped limit the benchmark’s year losses to 11.7 %.

Qatar’s benchmark slumped three.7 %, taking its losses for the year to 21.2 %, underperforming the MSCI emerging marketplace index which is down 19.1 %.

Economic sector heavyweights Masraf Al Rayan and Qatar National Bank dropped 6.3 and 2.1 percent respectively.

EGYPT DIPS, INVESTORS EYE CENTRAL BANK

Egypt’s bourse fell three.7 percent to six,395 points, within 93 points of November’s 2015 low.

“The sell-off is part of the declines in other Middle East markets following a drop in oil costs,” said Simon Kitchen, head of regional approach at Cairo’s EFG Hermes.

“The Egyptian marketplace is uncertain about the central bank’s interest price decision at the monetary policy meeting scheduled at the finish of this week,” Kitchen added.

Egypt’s annual urban customer inflation rose to 11.1 % in November from 9.7 percent in October, the official statistics agency CAPMAS mentioned on Thursday. That is the steepest increase in headline inflation because June.

The higher inflation figures are unlikely to influence Thursday’s central bank meeting to set interest rates, analysts told Reuters, noting the principal priority is probably to be advertising development.

Neighborhood and Arab traders had been net sellers even though foreign investors were net purchasers, exchange data showed.

Orascom Telecom and Industrial International Bank fell 7.three and four.2 percent respectively.

SUNDAY’S HIGHLIGHTS

SAUDI ARABIA

* The index fell two.7 percent to six,765 points.

DUBAI

* The index slid 2.1 percent to 2,883 points.

ABU DHABI

* The index dropped two.1 % to 4,001 points.

QATAR

* The index plunged three.7 % to 9,644 points.

EGYPT

* The index stumbled 3.7 % to six,395 points.

KUWAIT

* The index dipped 1 % to 5,633 points.

BAHRAIN

* The index fell .1 percent to 1,212 points.

OMAN

* The index slid .7 % to 5,415 points. (Editing by Matt Smith and Mark Potter)

Function-On the internet vacation package tsunami swamping U.S. apartment buildings

WASHINGTON Dec 13 As the holiday shopping season peaks, U.S. apartment complexes are being flooded with packages, from HD televisions to children’s scooters, inundating lobbies and forcing building managers to take measures to extremes.

With on-line purchasing anticipated to reach a record this year, overwhelmed house managers are beginning to place a cap on the size of the boxes they will accept, installing storage lockers or banning deliveries outright.

On the internet purchases have spiked throughout this vacation season, with Americans purchasing $ three.07 billion of goods on “Cyber Monday,” the first workday right after the Thanksgiving holiday, a 16 percent boost year on year, according to the Adobe Digital Index Report.

The Boston Residence, a 1950s-era apartment creating in Washington that saw package deliveries grow from a couple of dozen to hundreds a week in a handful of years, has restricted the size of boxes, said Liz Cullison, the building’s basic manager.

“The packages got larger and larger and bigger,” Cullison said. “That all overflowed out into the lobby. Now the lobby is overrun with packages.”

Apartment buildings and complexes, home to about a single in eight Americans, are being buffeted by the surge in online U.S. retail sales, which rose on an adjusted basis to $ 87.5 billion in the third quarter, up 15 % from a year earlier, according to the Commerce Division.

Apartment managers “are hunting at the future, and they are only seeing a lot more packages,” said Rick Haughey, vice president of market technologies initiatives at the National Multifamily Housing Council, an sector group.

“You’ve got old systems in place that do not truly reflect the structural changes that we’ve observed in retail,” he stated.

Vacation VOLUME

The quantity of U.S. packages shipped is soaring in tandem with on the web sales. United Parcel Service Inc, FedEx Corp and the U.S. Postal Service all estimate an improve in the low double digits this year, in part since of 1 extra day in the vacation season amongst Thanksgiving and Christmas.

UPS is forecasting 630 million deliveries during the vacation season, up 43 percent from 2010. Deliveries for all carriers are expected to peak about Dec. 21, 4 days ahead of Christmas.

Boston Residence, exactly where employees were currently coping with deliveries of beds, furniture and other bulky products, reached its breaking point when a tenant who was moving across the country had his possessions delivered by UPS, with 40 of the carrier’s biggest boxes piling up in the lobby, Cullison mentioned.

The creating has limited the size of packages it will accept to 70 pounds (32 kg) and 120 inches (three.05 meters) in length and girth combined. It also has set up an overflow storage space in its basement, Cullison said.

A 2014 survey of two,768 apartment managers by the National Multifamily Housing Council discovered that the typical building or complex receives up to one hundred packages a week and they take up to five hours a week of staff time to handle.

Jose Vega, the assistant director of the 424-unit Elan City Lights, a Greystar Actual Estate Partners LLC complicated in Dallas, mentioned packages were a substantial burden on employees, particularly in the course of holidays.

“It is really time-consuming just simply because (of) the quantity,” he stated. “The age that we live in, you know, folks choose to shop on-line and have some thing come to their front door.”

Fed up with packages flooding its offices, Camden Property Trust, the 13th-greatest U.S. apartment owner, decided this year to refuse deliveries at its front desks. Carriers now must provide to the customer’s door.

“We believe this is a greater client service knowledge and the proper decision lengthy term,” Julie Keel, a Camden advertising director, stated in an email. (Reporting by Ian Simpson Editing by Scott Malone and Steve Orlofsky)

Egyptian pound steady at forex auction, stronger on black market

CAIRO Dec 13 The Egyptian pound held steady at an official foreign currency auction on Sunday and strengthened slightly on the black marketplace.

Egypt, which depends on imported food and energy, is facing a dollar shortage and mounting stress to devalue the pound. The central bank shocked markets when it strengthened the pound on Nov. 11 by 20 piasters against the dollar.

On Sunday it sold $ 39.3 million at a reduce-off cost of 7.7301 pounds to the dollar, unchanged from Thursday, delivering 38.83 % of the amount requested by banks.

The official price is nonetheless far from that on the black market place, which was quoted at 8.55 pounds to the dollar on Sunday by a trader, producing the pound marginally stronger than Thursday’s black market place price of 8.56/57 pounds.

Egypt’s reserves have tumbled from $ 36 billion in 2011 to $ 16.four billion in October, and the nation has been rationing dollars by way of weekly auctions to banks, keeping the pound artificially strong.

On Dec. 3 the central bank said it had changed the way it allocated dollars at its foreign exchange auctions. It supplied fewer banks with dollars but at greater allocations.

Previously, banks in Egypt had been accustomed to receiving a standard quota of dollars at every foreign currency sale. Given that the alterations, some banks have mentioned they have been declined dollars at the typical auctions.

The country has been starved of foreign currency considering that a popular uprising in 2011 ousted autocrat Hosni Mubarak and drove away vacationers and foreign investors.

In February, the central bank imposed capital controls, limiting dollar-denominated deposits to $ 50,000 a month in an try to fight the black industry. The move caused difficulties for importers, which could no longer supply their foreign currency wants. (Reporting by Ahmed Aboulenein Editing by Mark Potter)

UPDATE 1-Fosun executives to meet Delek in Israel more than Phoenix deal

(Releads with Delek statement on Fosun meetings)

TEL AVIV Dec 13 Representatives of Fosun International will arrive in Israel in the coming days to discuss the procedure of its agreed deal to buy handle of Israeli insurer Phoenix Holdings from Delek Group .

Delek mentioned in a statement to the Tel Aviv Stock Exchange on Sunday that it would issue additional statements on any developments associated to the sales process.

The stock exchange on Sunday suspended trading in Delek and Phoenix due to events connected to Fosun, which mentioned on Friday its Chairman Guo Guangchang, a single of China’s very best-recognized entrepreneurs, was assisting authorities with an investigation, soon after an earlier report mentioned the group lost make contact with with its billionaire founder.

Following Delek issued its statement, the stock exchange mentioned trading in the shares would resume at 0939 GMT.

Delek, one of Israel’s major conglomerates, in June agreed to sell its 52.31 % stake in Phoenix to Fosun for 1.eight billion shekels ($ 467 million). ($ 1 = three.8545 shekels) (Reporting by Tova Cohen. Editing by Jane Merriman)

MIDEAST STOCKS-Oil slump strengthens market sell-off in UAE, Qatar

DUBAI Dec 13 Gulf markets fell in early trade on Sunday as the oil cost slump fuelled a broad stock sell-off.

Brent crude posted its greatest weekly percentage drop in over a year on Friday to settle at $ 37.93 right after the International Power Agency (IEA) warned that global oversupply of crude could worsen next year.

Qatar’s stock index tumbled three.8 %, taking its losses for the year to 21.7 percent, underperforming the MSCI emerging market index which is down 19 percent in 2015.

Monetary sector heavyweights Masraf Al Rayan and Qatar National Bank declined four.eight and 2.3 % respectively.

Dubai’s bourse fell 1.6 percent. It is down 23.2 percent in 2015, creating it the worst performing Gulf market index this year.

Losers outnumbered gainers 19 to three. Blue-chips Emaar Properties and Dubai Islamic Bank dropped 3 and 2.5 % respectively, whilst Emirates NBD – Dubai’s largest bank by market worth – rose 2.7 % as 7,000 shares have been traded to ease the main benchmark’s losses.

Drake and Scull slid .eight percent to .38 dirhams, hitting a new record low. One more construction firm, Arabtec retreated two.6 percent, falling to a 4-year low.

Abu Dhabi’s index dropped 1.eight % as blue-chips tugged the index lower. First Gulf Bank and telecom giant Etisalat declined 1.7 and 1 % respectively, providing back Thursday’s gains. (Reporting by Celine Aswad Editing by Matt Smith)

Global climate conference adopts historic deal

PARIS Dec 12 Nicaragua on Saturday raised objections to the new climate deal, saying it did not do sufficient to shield “Mother Earth”, in a symbolic protest soon after the deal had been formally adopted.

Paul Oquist, head of the Nicaraguan delegation, stated wealthy nations should do far far more to reduce emissions to aid defend “Mother Earth” and that governments had been sending their grandchildren to a hotter globe.

“We want to clarify now why we can’t accompany this consensus,” he said.

Oquist spoke following French Foreign Minister Laurent Fabius had banged down the gavel on a new worldwide deal to curb climate change.

Nicaragua all through the talks has stated developed nations are not carrying out adequate to reduce their use of carbon and are not providing enough funding to assist the created world adapt to the influence of climate alter. (Reporting by Barbara Lewis and Valerie Volcovici editing by Andrew Roche)

China capital outflows to top $500 bln in 2015-IIF

LONDON China will post record capital outflows in 2015 of much more than $ 500 billion, according to a report by the Institute of International Finance (IIF).

The IIF, an authoritative tracker of emerging industry capital flows, mentioned the world’s second largest economy is most likely to see $ 150 billion in capital outflow in the fourth quarter of the year, following the third quarter’s record $ 225 billion.

The estimate is based on trade information, Chinese banks’ transactions on the behalf of clients, and adjustments in central bank reserves, the IIF stated in the report.

“The most recent higher-frequency indicators show that Chinese exports continued to decline for a fifth consecutive month in November, with the trade surplus narrowing to $ 54 billion from $ 62 billion in October,” the report said.

Forex reserves had fallen about $ 87 billion to $ 3.44 trillion in the course of the month to the lowest since February 2013.

The yuan has been weakening against the dollar in recent months, primarily pressured by jitters about slowing development in China and an expected interest price rise in the United States.

China mentioned on Friday it had begun issuing a yuan exchange rate against a basket of currencies to discourage investors from exclusively tracking the yuan’s fluctuations against the U.S. dollar, a move some think signals intention to gradually shift toward a basket technique.

China’s woes have had a significant influence on the rest of the developing planet, with the IIF predicting that emerging markets would post net capital outflows in 2015 for the initial time given that 1988.

(Reporting by Sujata Rao)

UPDATE 1-Eurozone officials rule out IMF’s exclusion from Greek bailout

ATHENS The IMF will not be excluded from Greece’s third bailout program review, Eurozone officials told Greece on Saturday after its prime minister said the global lender was not playing a constructive role.

Earlier this week Alexis Tsipras accused the IMF of making unrealistic reform demands, triggering a reaction from German Finance Minister Wolfgang Schauble, who said it was not in Greece’s interest to question the fund’s involvement.

“There is no chance that the first review will conclude without the IMF,” Eurogroup Working Group President Thomas Wieser told the Kathimerini weekly newspaper.

“This is not my personal opinion or that of EU institutions, but a reality that occurs from the parliamentary procedures in some member states,” he said.

The IMF said earlier this year it would wait to see the outcome of Greece’s debt relief talks with EU partners before agreeing to inject new cash as part of an 86 billion euro ($ 94.45 billion) third bailout program.

Athens, meanwhile, hopes to start debt relief talks in February after a successful conclusion of the latest bailout’s first review that includes a painful pension reform.

Another European official, European Stability Mechanism (ESM) chief Klaus Regling, said on Saturday the IMF would participate in Greece’s bailout with a small contribution, adding in an interview to weekly newspaper To Vima that this was agreed in July.

The ESM chief said the organization aimed to re-profile Greece’s debt and smoothen servicing payments to make it viable and attract investors.

“We will aim to smoothen the profile of the debt… If we manage to extend a little more the period of the already very low repayments, then we will attract investors,” he said.

Earlier this month Greek finance minister Tsakalotos told Reuters he saw a 50-50 chance of Greece tapping capital markets by the end of 2016 – the first time it would do so since it was excluded from them in 2010.

(Reporting by Lefteris Karagiannopoulos; Editing by Clelia Oziel)

CLIMATE Brief-France seeks to type coalition of ambition, carbon value

PARIS France will revise its domestic targets for cutting greenhouse gases by 2020 and will seek to develop a coalition of nations striving for a international carbon price tag to accelerate a shift toward greener power, French President Hollande said on Saturday.

He was speaking just soon after the sealing of a worldwide accord to limit international warming, which the French leaders of the deal stated sacrificed some ambition in order to get a universal deal.

Hollande, whose presidential term ends in 2017, stated he engaged on behalf of France to revise the nation’s greenhouse gas objectives by 2020 at the latest and to review the quantity of cash it is providing to support the poorest nations adapt to climate modify.

He said he would also seek to function with other nations seeking to lead the fight against international warming.

“I engage with other countries if they want to join us to establish a coalition for a carbon price tag so that investment can be redirected,” Hollande told delegates in Paris.

A binding text, agreed by practically 200 nations, contains loose language on “internationally transferred mitigation outcomes,” which could allow countries to offset their personal emissions by getting emissions credits from other nations.

A political, non-legal component of the Paris Agreement recognizes the importance of “carbon pricing”, but does not require nations to seek to develop it.

(Reporting by Barbara Lewis and Alister Doyle)

CLIMATE Short-Nicaragua tends to make symbolic protest over new climate deal

PARIS Dec 12 Nicaragua on Saturday raised objections to the new climate deal, saying it did not do sufficient to safeguard “Mother Earth”, in a symbolic protest right after the deal had been formally adopted.

Paul Oquist, head of the Nicaraguan delegation, mentioned wealthy nations must do far much more to minimize emissions to aid defend “Mother Earth” and that governments had been sending their grandchildren to a hotter world.

“We want to explain now why we can’t accompany this consensus,” he said.

Oquist spoke following French Foreign Minister Laurent Fabius had banged down the gavel on a new international deal to curb climate modify.

Nicaragua throughout the talks has mentioned created nations are not doing enough to decrease their use of carbon and are not providing adequate funding to aid the developed globe adapt to the influence of climate alter. (Reporting by Barbara Lewis and Valerie Volcovici editing by Andrew Roche)