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RBI RAISES FII SUB-LIMIT IN GOVT BONDS BY $5 BN

Mumbai: The Reserve Bank of India (RBI) has raised the foreign institutional investors’ (FIIs’) sub-limit in government bonds by $5 billion, after the existing $20-billion limit was almost exhausted. The move is expected to stabilise yields, volatile in the recent past. The overall limit for FII investment in government bonds has been kept unchanged at $30 bn. As a result on the rise in the sub-limit, that for long-term investors like insurance and pension funds will be reduced to $5 bn. RBI said the incremental investment limit of $5 bn shall be required to be invested in government bonds with a minimum residual maturity of three years. Besides, all future investment against the limit vacated, when the current investment by these foreign inve

SUBSIDY DEPENDENCE FOR DISCOMS OF 16 STATES MAY RISE SHARPLY, SAYS ICRA

NEW DELHI: The subsidy burden for distribution utilities of 16 states is estimated at Rs 72,000 crore, 17% higher than the previous financial year, due to higher costs and cheaper tariff for the farm sector, said ICRA in a recent note. The note states that state electricity regulators in 16 out of the 29 states have issued tariff orders for the current fiscal so far, attributing the delay partly to the recently-held Lok Sabha elections.

The rating agency noted that subsidy dependence for utilities in Maharashtra is likely to increase sharply by about 55% on a year-on-year basis in FY15 as a result of tariff subsidy of 20% announced by the state government, and also for Jammu & Kashmir where the subsidy burden is projected to rise

INDIAN OIL, BPCL, HPCL TO REVIVE PREMIUM PETROL BRANDS ON EXCISE CUT

MUMBAI: The state-run oil marketing companies (OMCs) plan to revive branded petrol such as IndianOil’s XtraPremium and Bharat Petroleum’s Speed, backed by aggressive marketing, to make the most of a significant excise duty cut announced in the budget.

Sales of branded petrol, which contain additives that enhance automobile’s performance, had plummeted in recent years as they became Rs 7-10 per litre more expensive than the regular fuel, forcing companies such as Hindustan Petroleum Corporation (HPCL), Indian Oil Corporation and Bharat Petroleum Corporation (BPCL) to pull out such products from most outlets. But with finance minister Arun Jaitley announcing a cut in central excise duty on branded petrol to Rs

Western banks set to gain big time from Saudi market opening

HSBC Holdings Plc (HSBA) and JPMorgan Chase & Co. (JPM) are among the banks set to profit after the Riyadh-based Capital Market Authority announced plans this week to open Saudi Arabia’s bourse to foreign investors. The CMA said on July 22 that it would open up the oil-producing kingdom’s $531 billion stock market to foreigners next year. That may attract inflows of about $35 billion to the […]

Middle East set to gain gold global market share

The Middle East will take a bigger share of gold demand as buyers from Kuwait to Saudi Arabia to the United Arab Emirates diversify investments and Dubai nears offering a contract for immediate delivery bullion. MKS (Switzerland) SA, a Geneva-based bullion trader and refiner, expanded into Dubai three years ago and employs 25 people there, with the gold trade an “important market,” said Frederic Panizzutti, chief executive […]

Qatar stock rout creates opportunities to buy

The worst Qatar stock rout in nine months is creating a buying opportunity for some of the biggest Middle East investors, who say they’re undaunted by speculation the country will lose the right to host the 2022 World Cup. Emirates NBD PJSC, whose wealth management division oversaw about $2.1 billion at the end of 2013, says it’s looking to add stocks because any impact on corporate earnings […]

With BRIC on wall, it may be time to enter India

Although the world’s largest democracy has been hobbled by inflation, a declining currency and difficult business environment, the pro-business Bharatiya Janata Party that just won an epic election in India has engendered optimism that the country can turn around its sagging economic scenario. It’s time to increase your exposure to India’s stock market. The timing is good with equities in India perking up of late, something that […]

Qatar raises foreign ownership level before MSCI upgrade

Qatar raised the foreign ownership limit for shares listed on Doha’s stock exchange, less than a week before an MSCI Inc. upgrade to emerging market status. The benchmark index rose. Investors outside the six-nation Gulf Cooperation Council will be able to hold as much as 49 percent of a company listed on the Qatar Stock Exchange after Emir Sheikh Tamim bin Hamad Al Thani gave instructions to […]

Travelex buy puts Shetty in a new league

|By K Raveendran| It is indeed a milestone in the history of UAE’s expatriate business. The purchase of a controlling stake in Travelex by Dr B R Shetty is easily the biggest acquisition by an expatriate both in terms of its value and profile. It is also perhaps the biggest global brand acquired by a UAE-based Indian entrepreneur. There have been buyouts of higher values, but these […]

Shetty-acquired Travelex to be independent of UAE Exchange

|TAP Special|Travelex, which has been acquired by leading UAE businessman Dr. B. R. Shetty along with his partners associated with Centurion Investments, will continue to operate independently of UAE Exchange. The acquisition, to be effected through BRS Ventures & Holdings Limited, a company owned by Dr Shetty and equity partners associated with Centurion, is subject to customary regulatory and other approvals and consents.  The acquisition will not […]

UAE Exchange to buy Travelex

|TAP Special|UAE Exchange owners are said to be in talks with Apax Partners, the London-based private equity firm that controls Travelex Holdings, to buy majority stake in Travelex. The transaction may be worth about 500 million pounds ($843 million). UAE Exchange is owned by BR Shetty, Centurion Investment and Infinite Investment LLC belonging to Abu Dhabi’s bin Butti family. Bloomberg reported quoting unnamed sources that a deal […]

China boom spurs $1 trillion gain for Gulf economies, says HSBC

The surge in oil prices driven by Chinese demand has added $1 trillion to output in the Gulf Cooperation Council countries over 10 years, according to HSBC Holdings Plc. The six-member bloc’s gross domestic product increased to $1.7 trillion between 2003 and 2013, bringing per capital GDP to an average of $35,000, HSBC said in a report on the effect of a “globalizing China” on the Middle […]

Emaar hires Rothschild, HSBC, others for mall float

Emaar Properties, owner of the world’s biggest mall, hired HSBC Holdings and Emirates NBD  as bookrunners for the initial public offering of its retail arm, with Rothschild as financial adviser, five people familiar with the matter said. National Bank of Abu Dhabi and EFG Hermes Holding Co. will also be bookrunners on the sale of between 25 percent to 30 percent of the malls unit on the […]

Etihad faces heat over ‘state funding’

Etihad Airways had access to an interest-free $3 billion loan from Abu Dhabi’s ruling family, the Australian Financial Review newspaper said on Thursday, prompting criticism from rivals that have long complained of state support for the carrier. Citing what it said were leaked documents prepared for prospective financiers in 2011, the newspaper said the loan for government-owned Etihad required no repayments until 2027. The airline, which also […]

Qatar Comes to European Banks’ Rescue – With a Twist

A Deutsche Bank stake worth 1.75 billion euros has already been placed with an investment vehicle owned and controlled by Sheikh Hamad Bin Jassim Al-Thani, Qatar’s former prime minister. Reuters Qatar is again swooping in to help one of Europe’s biggest banks – this time with a twist. Paramount Holdings Services, a vehicle owned by former prime minister Sheikh Hamad bin Jassim Al Thani, agreed to put […]

Al Thani returns to dealmaking a year after ouster

Sheikh Hamad bin Jassim bin Jabr Al Thani, who played a key role in Glencore International Plc’s takeover of Xstrata Plc, is returning to dealmaking a year after his ouster as prime minister and head of Qatar’s sovereign wealth fund. Sheikh Hamad is injecting 1.75 billion euros ($2.4 billion) into Deutsche Bank AG through his Paramount Holdings Services Ltd. investment vehicle, the Frankfurt-based bank said May 18. […]

Building a ‘forest in the sky’

STORY HIGHLIGHTS Porta Nuova aims to transform Milan’s skyline Project will feature new skyscrapers and buildings covered with trees Some experts believe construction ventures like these could get Italian economy moving One Square Meter explores the leading architectural designs, city plans and demand for property investment in emerging markets. Join CNN’s John Defterios as he visits some of the world’s most dynamic cities for an insight into […]

ME banks weighing kangaroo bonds

Middle East borrowers are increasingly weighing Australian-dollar bonds as they seek to tap one of the world’s biggest sources of pension funds, according to HSBC Holdings Plc. Three regional lenders including National Bank of Abu Dhabi sold A$1.05 billion ($984 million) of debt this year, known as Kangaroo bonds, compared with two sales in 2013 for A$475 million, according to data compiled by Bloomberg. “We expect to […]

Big Gulf Funds Shouldn’t Fret About Treasuries, Atlanta Fed President Says

Dennis Lockhart, President, Federal Reserve Bank of Atlanta, spoke to the American Business Council of Dubai on Sunday. Reuters Large Middle Eastern holders of U.S. Treasuries shouldn’t worry about the stability of their investments especially as the U.S. economy shows more signs of improvement following the worst recession in a generation, Atlanta Fed President Dennis Lockhart said on Sunday. U.S. government debt has long been a key […]

HSBC sees $40b Gulf bond issues this year

HSBC Holdings, the biggest manager of bond sales in the six-nation Gulf Cooperation Council, expects debt issues in the region to raise as much as $40 billion in 2014, almost matching last year’s total. Sales will start to catch up with 2013 volumes in the next two months, Mustafa Aziz Ata, head of Middle East and North Africa debt capital markets at the London-based bank, said in […]

Etihad says Europe acquisitions to raise competitiveness

Abu Dhabi’s Etihad Airways on Sunday said its strategy of buying stakes in European airlines was bringing fresh competition to the region, despite close scrutiny by regulators over whether its investments comply with European ownership rules. State-owned Etihad is building up a network of minority stakes in airlines around the world as it seeks to drive traffic to its Abu Dhabi hub. “We are bringing competition in […]

BlackRock launches stand-alone ETF for UAE

The United Arab Emirates will have its own stand-alone exchange-traded funds with this week’s launch of the iShares MSCI UAE Capped ETF (UAE). On May 30th, both Qatar and the UAE will get promoted by the MSCI index folks being frontier markets to becoming full-fledged emerging markets. As of this year’s first quarter, the UAE and Qatar occupied the second- and third-largest country weights in the MSCI […]

Gold faces second weekly drop

Gold was steady on Friday after two consecutive sessions of losses, but the metal was headed for its second weekly drop in three on growing optimism about the U.S. economy and selling in the top bullion-backed exchange-traded fund. Spot gold was flat at $1,283.66 an ounce by 0034 GMT, after falling 0.6 percent in the previous session. The metalis down 1.6 percent for the week. Silver, with […]

Lufthansa CEO reopens old wound with a hit on Emirates

Deutsche Lufthansa’s new chief executive officer identified the menace of fast-expanding Gulf carriers such as Dubai-based Emirates as his biggest challenge, threatening to reopen a war of words with Mid-East operators. Carsten Spohr, who takes over from Christoph Franz as CEO of the German company on May 1, said the emerging long-haul heavyweights represent a different proposition to short-haul discount operators such as Ryanair Holdings Plc. “Those […]