|By Lawrie Williams| As we come up to the Easter holiday and trading gets thin, the opportunities for traders to manipulate precious metals prices up or down become easier and for the moment, those who would like to see prices lower are in the ascendant. Whether gold goes into freefall and loses all its gains achieved so far this year is the big question on gold investors’ lips. […]
|By Matein Khalid| I was surprised by the dovishness of the Federal Reserve’s FOMC policy statement last week given the white hot US labour market and metrics of wage inflation. Hence the $29 rally in gold, the plunge in the Volatility Index to 15, the fall in the US dollar and the surge in oil/mining shares. The Yellen Fed is still worried about deflation risk in China, Europe […]
|By Alaa Alghamdi| Judicial rulings have shown that the calamitous and tragic events of September 11 were borne out of a relationship between Iran and Hezbollah and al-Qaeda. Will the coming days reveal a similar relationship with Daesh too? Hezbollah is widely known for its support of terrorism, for inciting sectarian strife in the Arab countries, and for the cooperation of its members with drug dealers in Europe, North and South America, Africa, as a means to finance multiple activities, ease the burden on the Iranian treasury offering them substantial financial support, in […]
|By Arabian Post Staff| A sudden spurt in the number of new project announcements despite the weakening sentiments and a clear downturn in property prices is stoking fears of a 2008-style default revisiting the Dubai property market. The phase has even seen the revival of some of the grandiose schemes announced during the peak of the boom period, but got abandoned later as the crisis began to […]
|By Rani Molla & Andrea Felsted| You’d have thought negative interest rates would fuel a boom in diamonds, antiques and fine wine, as people look for an alternative to stuffing cash under the mattress. But you’d be wrong: prices for all three are falling. While some “collectibles” such as vintage watches, luxury handbags and old cars are holding up pretty well, others are struggling. The phenomenon of safe havens […]
|By Arabian Post Staff| The benefits of this prolonged period of very low oil prices are diminishing for some corporate finance sectors or even starting to have a negative impact on others, Moody’s Investors Service said in a report. The exploration & production, oilfield services, building materials and steel industries continue to bear the immediate effects of low oil prices. The global oversupply, combined with additional exports […]
|By Arabian Post Staff| The introduction of a new technique, using excavators that could virtually be called concrete-eaters, is set to revolutionize the way high rise structures are demolished in the UAE. The new method reduces the time required to bring down a high rise structure to a matter of days, instead of months and years required by conventional methods. The shorter time frames would mean much quicker […]
|By Matein Khalid| It is no coincidence that the most profitable hotels on the planet are located in Makkah, the holiest city of Islam as the site of the Grand Mosque and the Kaaba. For fifteen centuries, Muslims have traveled to Makkah from all over the world for the Hajj and Umrah pilgrimages, making the city the highest source of inbound foreign visitors in Saudi Arabia. Makkah is […]
|By Arabian Post Staff| Moody’s has placed United Arab Emirates, along with Abu Dhabi emirate, under review for a possible downgrade. The action was also applied to all GCC countries, including Kuwait and Saudi Arabia. Abu Dhabi’s (Aa2 stable) economic growth could come under pressure this year amid government spending cutbacks in response to lower oil prices, Moody’s Investors Service said in a report. Moody’s estimates that […]
With little fanfare, Amazon has removed the option for device encryption for tablets, phones and other products running its Fire OS 5 operating system. The decision has been met with widespread confusion and criticism, especially as Amazon yesterday filed an amicus brief in support of Apple’s decision not to give the FBI access to the data on the iPhone of one of the San Bernadino, Calif. terrorists. […]
|By Matein Khalid| Six data points last week reinforce my conviction that the GCC’s property/credit market stress will only accelerate in 2016. One, Standard and Poors downgraded Saudi Arabia’s sovereign credit rating to A- while Bahrain and Oman are now both below investment grade. The new sovereign credit downgrade cycle in the GCC comes at a time when sukuk/debt new issuance volumes have plummeted by 50%, the […]
|By Arabian Post Staff| The need to part-finance funding gaps by the GCC countries through sovereign US dollar debt will complicate their efforts to refinance the bonds and loans maturing this year and the next, HSBC warned in a report on the GCC finances. Some $94 billion in foreign currency denominated bonds and syndicated loans by GCC countries are maturing this year or the next year, which […]
|By K Raveendran| A clear assessment of the impact of the introduction of value added tax (VAT) in the UAE is not available yet, but it is fairly clear that it will have serious adverse results for the retail industry, which is already suffering a dip in demand. Minister of State for Financial Affairs Obaid Humaid Al Tayer announced the other day after a joint press conference […]
|By Matein Khalid| The sultanate of Oman has enjoyed phenomenal economic development success in the 45 year reign of His Majesty Sultan Qaboos bin Said. Modern Oman is one of the true social, political and economic success stories of the Arab world. However, the Achilles heel of the Omani economy is its huge dependence on oil and gas export earnings, 60% of the sultanate’s GDP. Standard and […]
|By Matein Khalid| The global credit cycle has an immediate impact on the UAE via oil prices, the US dollar peg, cross border bank credit flows, Federal Reserve monetary policy and world trade. The IMF has cut its 2016 growth forecast to 2.6%, the lowest since 2010. A leading developer just booked a 20 fold rise in penalties from walkaway offplan home buyers. Banks hire “loan rangers” […]
|By Arabian Post Staff| Stability in office rents in Dubai’s main markets persisted throughout Q1 2016 as a result of continued high demand from both international and domestic occupiers, according to leading real estate consultancy Cluttons. Showcasing the performance of 22 submarkets across the city in the first quarter of the year with the use of heat maps, Cluttons’ first office market bulletin highlights that, 13 submarkets […]
HSBC Holdings cut its price estimates for Dubai developer Emaar Properties and peers including Damac Properties Dubai Co., predicting falling revenue and declining property prices in the United Arab Emirates. Emaar’s price estimate was slashed 26 percent to 8.5 dirhams, while Damac’s is 8 percent lower at 3.4 dirhams, HSBC said in a note on Thursday. The bank also lowered its target for Aldar Properties to 3.5 […]
The yearlong decline in global equities that started with a selloff in energy became a full-blown bear market Thursday as a rout in bank shares extended losses in the broadest worldwide gauge past 20 percent. The MSCI All-Country World Index slipped 1.3 percent, pushing its decline since May to 20 percent and marking the biggest retreat from risk since Europe’s sovereign debt crisis in 2011. Every industry […]
Gold and its miners’ stocks are rocketing higher as speculators and investors alike return to this left-for-dead sector. This sudden deluge of capital inflows has crowned gold stocks the best-performing sector of this young new year by far, shocking traders. And this stunning reversal of fortunes in both the metal and the companies producing it is only starting, so it’s exceedingly important to understand what’s going on. […]
Markets are currently in a well-oiled “death spiral,” according to Citigroup Inc. analysts led by Jonathan Stubbs. “It appears that four inter-linked phenomena are driving a negative feedback loop in the global economy and across financial markets,” the analysts write, citing the resilient U.S. dollar, lower commodities prices, weaker trade and capital flows, and declining emerging market growth. “It seems reasonable to assume that another year of extreme moves in […]
LinkedIn is the world’s largest professional network and most of us have an account. Let’s face it, no one actually reads 95% of the stuff that appears on the feed but there is so much of sharing done that LinkedIn is slowly inching closer and closer to the top of the list of largest content aggregators. There are 3 main types of users of the platform and […]
UAE. The start of 2016 signalled another loss of growth momentum at UAE non-oil private sector firms, with business conditions improving at the weakest rate since March 2012. Underpinning the slowdown was a relatively subdued rise in new work, which was linked in turn to a near-stagnation in new export business. Growth rates for output and employment also eased, though stocks of pre-production items increased more quickly. […]
A GoPro Hero 3+ camera is seen at the Nasdaq Market Site before before GoPro Inc’s IPO in New York City, June 26, 2014. Reuters/Mike Segar GoPro Inc (GPRO.O) forecast current-quarter revenue well below analysts’ estimates on weak demand for its wearable cameras and the company named Brian McGee as its new chief financial officer. GoPro said McGee, who joined the company from Qualcomm Inc (QCOM.O) in […]
|By Matein Khalid| “One country, two systems”. This was the historic formula under which Margaret Thatcher agreed to hand over the British Crown Colony of Hong Kong to the People’s Republic of China, then ruled by Paramount Leader Deng Xiao Ping. The Hong Kong dollar’s spike to 7.81, on the high end of its 7.75 – 7.85 band, demonstrates the sheer scale of the speculative attack against […]
