US stocks gain, Treasury yields hit multi-year highs ahead of expected Fed rate hike: Reuters

Update US stocks gain, Treasury yields hit multi-year highs ahead of expected Fed rate hike: Reuters
About 20 minutes into trading, the Dow Jones Industrial Average was flat (Shutterstock)
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Updated 02 May 2022

US stocks gain, Treasury yields hit multi-year highs ahead of expected Fed rate hike: Reuters

US stocks gain, Treasury yields hit multi-year highs ahead of expected Fed rate hike: Reuters

NEW YORK: Wall Street recovered some lost ground on Monday and benchmark US Treasury yields hit a 3-1/2-year high at the start of an eventful week of corporate earnings, economic data, and an expected interest rate hike from the US Federal Reserve, according to Reuters.

All three major US stock indexes were last modestly green as the 10-year Treasury yield crept closer to the 3 percent mark and touched its highest level since December 2018.

US stocks’ modest rebound comes in the wake of the S&P 500’s fourth straight weekly decline which capped its worst January-April percentage drop since 1932, as market participants girded their loins for an expected 50-basis-point interest rate rise at the conclusion of the Fed’s two-day monetary policy meeting on Wednesday.

“There are several crosswinds right now,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. “The first is the Fed, the second is the war (in Ukraine) and the third is inflation.”

“Most economies are headed for a hard landing – a recession — and that’s what the market is discounting now,” Cardillo added.

A report from the Institute for Supply Management showed US factory activity losing steam, its purchasing managers’ index coming in well below consensus.

This followed a PMI report from China which showed factory activity contracting for the second straight month as widespread COVID-19 shutdowns disrupted production and supply chains.

The Dow Jones Industrial Average rose 188.63 points, or 0.57 percent, to 33,165.84, the S&P 500 gained 31.09 points, or 0.75 percent, to 4,163.02 and the Nasdaq Composite added 153.37 points, or 1.24 percent, to 12,488.01.

The glum China factory data dragged European stocks sharply lower, although the STOXX 600 had partly recovered from a sudden 3 percent plunge earlier in the session, what some brokers called a “flash crash” caused by an erroneous trade.

The pan-European STOXX 600 index lost 1.05 percent and MSCI’s gauge of stocks across the globe gained 0.18 percent.

Emerging market stocks lost 0.40 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.46 percent lower, while Japan’s Nikkei lost 0.11 percent.

US Treasury yields gained ground, with long-dated debt hitting multi-year highs.

Benchmark 10-year notes last fell 24/32 in price to yield 2.9768 percent, from 2.885 percent late on Friday.

The 30-year bond last fell 52/32 in price to yield 3.038 percent, from 2.946 percent late on Friday.

Crude prices plunged over demand worries driven by the bleak factory data from China, the world’s largest oil importer.

US crude fell 2.73 percent to $101.83 per barrel and Brent was last at $104.35, down 2.6 percent on the day.

The dollar hovered just below a 20-year high against a basket of currencies ahead of the Fed’s expected rate hike as investors focused on the possibility that the FOMC could adopt an even more hawkish stance than expected.

The dollar index rose 0.48 percent, with the euro down 0.05 percent to $1.0536.

The Japanese yen weakened 0.19 percent to 130.10 per dollar, while Sterling was last trading at $1.2531, down 0.32 percent on the day.

Gold prices slipped, edging closer to 2-1/2-month lows as investors anticipated a hefty interest rate hike from the Fed aimed at cooling inflation.

Spot gold dropped 1.8 percent to $1,863.24 an ounce.

— Reuters


Iran’s top automaker sets sights on Russian market

Iran’s top automaker sets sights on Russian market
Updated 14 August 2022

Iran’s top automaker sets sights on Russian market

Iran’s top automaker sets sights on Russian market

TEHRAN: Iran’s leading automaker is seeking to prioritize exports to Russia, its CEO said on Sunday, as both countries reel under Western economic sanctions.

Iran Khodro unveiled the latest model of its crossover Rira vehicle at its factory west of Tehran, where CEO Mehdi Khatibi announced the manufacturer’s ambitions for the Russian market.

“We are going to pay special attention to the Russian market, and we are also thinking of partnering with Russian investors,” he said.

“We have held good negotiations with Moscow. The Russian market, with its capacities, will be one of our important markets,” Khatibi added.

“We will begin exporting this year” to Russia, he said.

Iran Khodro had previously exported vehicles to Russia, notably between 2007 and 2009, Iranian media said.

The two countries have responded to the sanctions by boosting cooperation in key areas to help prop up their economies.
The company’s vice president, Kianoush Pourmojib, struck an optimistic note on Sunday, pointing to increased exports to Azerbaijan over the past five years.

“We are ambitious about improving the quality of our vehicles,” he told AFP.

He added that while the manufacturer hopes to compete in markets such as Azerbaijan, Oman and Iraq, “in volume, it is of course Russia that is the most important.”

“This year, we will produce more than 500,000 vehicles and our goal within three years is to export 100,000 vehicles annually,” compared with fewer than 20,000 currently, he said.


Saudi Arabia’s Kingdom Holding unveils $3.4bn investment program

Saudi Arabia’s Kingdom Holding unveils $3.4bn investment program
Updated 14 August 2022

Saudi Arabia’s Kingdom Holding unveils $3.4bn investment program

Saudi Arabia’s Kingdom Holding unveils $3.4bn investment program

RIYADH: Kingdom Holding Co.unveiled its investment program worth SR12.8 billion ($3.4 billion), according to a bourse filing.

In June, the company announced that it completed its investment program during the period between the second quarter of 2020 and Q2 2022. The program invested in companies operating in diverse sectors with a proven track-record of growth and strong financial position.

The company’s total investments amounted to SR4.33 billion in 2020, SR3.75 billion in 2021 and SR4.73 billion in 2022.

 

 

 


UAE In-Focus — SWVL announces a $20m private placement; Dubai developer plans to raise $4.6bn loan

UAE In-Focus — SWVL announces a $20m private placement; Dubai developer plans to raise $4.6bn loan
Updated 14 August 2022

UAE In-Focus — SWVL announces a $20m private placement; Dubai developer plans to raise $4.6bn loan

UAE In-Focus — SWVL announces a $20m private placement; Dubai developer plans to raise $4.6bn loan

DUBAI: SWVL, Dubai-based mobility and transport solutions provider, announced on Wednesday that it had entered into a deal with US-based institutional investors to sell and buy over 12 million shares and securities for 73.4 million dirhams ($20 million) at 6.06 dirhams a share.

The sale of securities and private placement will take place on Friday, the statement said.

It said warrants issued under Series A and Series B will expire five and two years from the date of issuance, respectively.

The company will receive additional 110 million dirhams if the warrants are exercised during this period, it added.

Earlier this year, a special purpose acquisition company bought the transport startup.

Since its founding in Egypt in 2017, it has raised a total of 969 million dirhams.

Dubai developer plans to raise $4.6bn loan

The developer of Dubai’s artificial palm-shaped islands, Nakheel, plans to refinance existing debt by raising 17 billion dirhams ($4.6 billion), according to Bloomberg.

In addition to Dubai Islamic Bank and Emirates NBD, Mashreqbank is seeking financing from the company, the people said, asking not to be identified because the information is confidential.

Aside from regional and global lenders, the banks arranging the loan are also asking them to participate.
 
Emaar reports $1.8bn in H1 revenues

Emaar Development had its highest property sales during the first half of 2022, supported by recent successful launches that will create value for years to come, according to Emirates News Agency, known as WAM.

Compared to 2021, real estate sales increased by 10 percent to 15.216 billion dirhams ($4.143 billion) in the first half of 2022, WAM said.

It added that the Emaar Properties-owned build-to-sell business launched 15 projects in different master plans during the first half of 2022.

The earnings before interest, taxes, depreciation, and amortization at Emaar Development was 2.564 billion dirhams in the first half of 2022, up 15 percent from the same period in 2021, while revenue was 7.282 billion dirhams, WAM said.

Emaar now has a robust backlog of 32.753 billion dirhams, which will be recognized as future revenue for the company.

Over 3,100 residential units have been delivered by Emaar Development across prime locations, including Dubai Hills Estate, Dubai Creek Harbor, Downtown Dubai, Emaar Beachfront, Arabian Ranches, and Emaar South. 

Currently, Emaar is developing over 26,100 residences in the UAE, with more than 55,100 being delivered as of June 2022. 


Saudi Arabia’s Halwani Bros posts 65% decline in profits as inflation bites

Saudi Arabia’s Halwani Bros posts 65% decline in profits as inflation bites
Updated 14 August 2022

Saudi Arabia’s Halwani Bros posts 65% decline in profits as inflation bites

Saudi Arabia’s Halwani Bros posts 65% decline in profits as inflation bites

RIYADH: Saudi food manufacturer Halwani Bros Co. has reported a 65 percent drop in profit in the first half of the year, due to increased costs resulting from global inflation.

The company’s net profit fell to SR18 million ($5 million) compared to SR52 million in the same period last year, according to a bourse filing.

Halwani Bros attributed the lower profits to rising raw material costs and increased marketing costs due to global inflation.

The devaluation of the Egyptian currency also weighed on profits from its subsidiary in Egypt, it added.

Founded in 1952, Jeddah-based Halwani produces and distributes a wide range of food products in Saudi Arabia as well as around the world.


NRG Matters — UAE to hold 8th green economy summit in September; Egypt joins Power Reactors Information System database 

NRG Matters — UAE to hold 8th green economy summit in September; Egypt joins Power Reactors Information System database 
Updated 14 August 2022

NRG Matters — UAE to hold 8th green economy summit in September; Egypt joins Power Reactors Information System database 

NRG Matters — UAE to hold 8th green economy summit in September; Egypt joins Power Reactors Information System database 

RIYADH: The UAE will hold the eighth World Green Economy Summit at Dubai World Trade Centre in September, as the Gulf state prepares to host COP28 next year, Emirates News Agency reported. 

Alongside promoting a green economy, the WGES plays a key role in supporting UAE’s climate action efforts and its commitment to sustainability. 

It also reflects the country’s support for energy and climate change issues and developing sustainable solutions to environmental challenges, according to the statement. 

Egypt's nuclear power plant 

The International Atomic Energy Agency has officially included Egypt among the countries that have a nuclear plant under construction, according to the Nuclear Power Plants Authority. 

The country is now included in the Power Reactors Information System PRIS database, which focuses on nuclear power plants worldwide. 

This happens as Egypt started the construction of the El-Dabaa plant, located in the northwestern governorate of Marsa Matrouh, which aims to generate a total of 4,800MW via four reactors.

Through a micro lens

Oman’s Sur Industrial City, affiliated to the Public Establishment for Industrial Estates, has signed an over $40 million investment contract with Al Ghaith for Chemical Industries to establish a chemical plant on a 60,000 sq. m. site.

The project aims to promote the growth of chemical industries and supply the oil and gas, petrochemical and water treatment industries with basic chemicals and raw materials, according to Trade Arabia. 

Also, China’s CATL said it would build a €7.3 billion ($7.6 billion) battery plant in Hungary, Europe's largest so far, as the electric vehicle battery maker gears up to meet growing demand from global automakers.

The construction of the 100GW plant in the eastern Hungarian city of Debrecen, is the firm’s biggest overseas investment, according to Reuters. 

It would start this year after receiving approvals and should last no more than 64 months.