Investors are favoring U.S. stocks over emerging markets by the most ever as fund flows and volatility measures show institutions are increasingly seeking the relative safety of American equities. Almost $95 billion was poured into exchange-traded funds of American shares this year, while developing-nation ETFs saw withdrawals of $8.4 billion, according to data compiled by Bloomberg. The Standard & Poor’s 500 Index (SPX) trades at 16 times […]
Global financial stability is at risk as central banks draw back from ultra-easy policies that have flooded the world with cash, because emerging markets lack defenses to prevent potentially huge capital outflows, top officials were warned on Saturday. Central bankers from around the world, devoting the second day at their annual Jackson Hole policy retreat to the threats posed by global liquidity, heard two academic papers on […]
Iran is raising its exports of iron ore and iron products to China and India in an attempt to replace at least a small part of the massive revenue that has been lost due to sanctions on its oil sales. While Iran’s oil exports have halved in the last few years due to western sanctions over the country’s disputed nuclear program, iron ore exports have grown by […]
Stock markets in the United Arab Emirates and Qatar rose to new multi-year highs on Thursday despite a sell-off in emerging markets around the world, as retail investors in the Gulf bought selected stocks viewed as laggards. Egypt’s bourse rose on the back of a reduction in street violence. “It’s a good surprise to see that the most internationally-linked markets like UAE have been resilient despite the […]
A long-awaited opening of Saudi Arabia’s stock market to direct foreign investment appears near, industry executives and fund managers say – a reform that could give equity investment in the Gulf its biggest boost for years. Hopes have been raised and dashed several times over the last few years. While the Saudi government has long considered the reform and has been making technical preparations, it has never […]
At least two major global investment banks are maintaining that the beleaguered Indian rupee, which is already down about 15 per cent since the beginning of 2013, could see a further deterioration of about 10.5 per cent in the near future and slump to Rs70 against the US dollar. That would equate to a level of Rs19 against the UAE dirham, and if attained, this exchange rate […]
Deposits with UAE banks climbed to an all-time high at the end of the first half of 2013 while assets also peaked at their highest level and loans picked up sharply. Official data showed the UAE’s 23 national banks and 28 foreign units are pushing ahead with a provisioning drive to bolster their financial base in the wake of the 2008 global fiscal distress, with allocations for […]
By Steen Jakobsen, Saxo Bank Commenting on Egypt is not something I take lightly, particularly when the death toll there continues to rise. The Middle East and North Africa (MENA) is a difficult region to comment on in general. You cannot apply the usual economic models when doing your research, but have to make a careful assessment of evidence on the ground and by observing the evolution […]
SAUDI ARABIA: Saudi female students want to work during their time at university, a recent study revealed. The study, conducted by Glowork, a human capital company dedicated to women, and partners DAF Advisory Services and Alwane, revealed that 87% of Saudi women are looking to work part time if the opportunity was given. “They want to work not for financial reasons, but purely for experience” said Khalid […]
The Dubai Economic Council (DEC) has signed a Memorandum of Understanding (MoU) with Deloitte Corporate Finance Limited for mutual cooperation. Hani Al Hamli, Secretary General DEC; and Humphry Hatton, Chief Executive Officer of Deloitte Corporate Finance, signed the MoU in the presence of the executive teams of both sides. Al Hamli stated, “We’re proud to have Deloitte Corporate Finance Limited as our partner, which comes in our […]
A programming error at Goldman Sachs Group Inc. caused unintended stock-option orders to flood American exchanges this morning, roiling markets and shaking confidence in electronic trading infrastructure. An internal system that Goldman Sachs uses to help prepare to meet market demand for equity options inadvertently produced orders with inaccurate price limits and sent them to exchanges, said a person familiar with the situation, who asked not to […]
NEW DELHI—As India’s economy shifted into low gear earlier this year, sales at the country’s largest car manufacturer also lost steam, falling nearly 7% in the second quarter from a year earlier. Now the auto maker, Maruti Suzuki India Ltd., faces trouble on a new front: the rapid drop in the Indian currency. The rupee has slumped nearly 3% against the dollar since last Wednesday and roughly […]
By Asa Fitch and Rory Jones Thousands of people are on the move in the United Arab Emirates as a deadline approaches for employees of the Abu Dhabi government to live in the city or risk losing a portion of their salaries. The move-or-lose requirement was announced in an unusual edict last year that said government workers would have to give up housing allowances built into their […]
LONDON–Iran’s Bank Mellat is claiming GBP500 million ($782 million) from the U.K. Treasury after a London court ruled against a British decision to sanction the bank, a defense lawyer said. The claim underscores the financial risks faced by Western governments as they seek to enforce sanctions over Iran’s controversial nuclear program. The U.K.’s “Supreme Court has referred [the claim] to the High Court so it can assess […]
India’s biggest stock-market swings in 16 months are poised to continue, boosting options prices as the prospect of reduced Federal Reserve stimulus spurs further weakness in the rupee, according to JPMorgan Chase & Co. The CNX Nifty index has retreated 10 percent during the past month and the gauge’s 30-day historical volatility reached 21.1 yesterday, the highest level since April 2012, according to data compiled by Bloomberg. […]
(Reuters) – A federal judge has endorsed a broad interpretation of a savings-and-loan era law that the Justice Department is trying to use in cases against Wall Street banks. U.S. District Judge Jed Rakoff in Manhattan said Monday that a “straightforward application of the plain words” of the Financial Institutional Reform, Recovery and Enforcement Act (FIRREA) allowed the interpretation sought by the government. The law has a […]
Airports in the Gulf Cooperation Council (GCC) experience local disruptions – such as those that stem from fog – which, annually, affect over 200 flights and 30,000 passengers in the United Arab Emirates (UAE) alone. In addition, according to Oxford Economics, disruptions from the 2010 spread of Icelandic volcanic ash over European airspace had a $253 million net impact on the aviation sector in the Middle East […]
(Reuters) – Shares of Dubai property developer Union Properties, in which lender Emirates NBD holds a major stake, surged 11 percent in massive trading volume on Sunday – a fresh sign of growing optimism toward the emirate’s real estate. The stock, which closed at 0.46 dirham per share, saw 423.7 million shares change hands on the Dubai equities market, accounting for nearly two-thirds of the market’s entire […]
Qatar has reiterated there is no going back on its currency’s peg to the US dollar and said the riyal’s rate to the greenback is to be maintained at QR3.64. Local banks and exchange houses involved in foreign exchange dealings must use this rate with a margin of 0.24 percent. While converting the riyal to other currencies, they must use the above riyal-dollar rate as the basis […]
Saudi bank deposits posted a new record of SR1.36 trillion by the end of first quarter of 2013. The expansion in credit portfolios was facilitated by this enormous depositary base. Demand deposits remain the main beneficiary given the globally suppressed interest rate environment, according to a report by the National Commercial Bank (NCB). NCB’s customer deposits, the largest in the market, reached SR276.7 billion in March 2013 […]
Gold may extend a rally from a two-month high as an increase in demand from jewelry buyers in China and India helps counter a drop in assets under exchange-traded funds backed by bullion. Prices may rally to as much as $1,550 an ounce by the end of the year, said Jeffrey Rhodes, managing director of the financial institutions division of the Kaloti Jewellery Group, a Dubai-based gold […]
Merrill Lynch & Co., the 99-year-old firm known for its “thundering herd” of brokers pitching stocks to Main Street, may cease to exist as a legal entity more than four years after being acquired by Bank of America Corp. While Bank of America will keep the Merrill Lynch brand for its retail brokerage and investment bank, the Charlotte, North Carolina-based company plans to dissolve the subsidiary as […]
(Reuters) – By canceling a military exercise with Egypt but not cutting off U.S. aid, President Barack Obama sought on Thursday to show his displeasure at the Egyptian army’s violent crackdown on protesters – without totally alienating the generals. Obama announced the move a day after at least 623 people were killed, according to Egypt’s Health Ministry, as troops and police used force against protesters seeking the […]
Saudi Arabia is currently working to develop its trade and investment laws with the intent of wooing more foreign direct investments and settling disputes between foreign investors and their local partners. Saudi Arabian General Investment Authority (SAGIA), the country’s investment facilitator, spearheads the move by adding some points of explanation in the current law in addition to putting a set of new conditions. The Kingdom encourages successful […]
