Oil prices rose on Wednesday on growing concerns that the Israel-Gaza war could escalate and potentially affect crude supplies from the region.
Brent, the benchmark for two thirds of the world’s oil, was trading 1.37 per cent higher at $91.21 a barrel at 8.37pm UAE time while West Texas Intermediate, the gauge that tracks US crude, was up 1.50 per cent at $87.96 a barrel.
“The fresh spike in oil was after the hospital bombing in Gaza, and as focus turns to China’s gross domestic product and activity data today,” said Charu Chanana, market strategist at Saxo Bank.
The Middle East is facing a new bout of geopolitical uncertainty as the war between Israel and Hamas, which governs the Gaza Strip, continues to rage. More than 4,000 people have been killed in the conflict, which has entered its 12th day.
More than 3,000 have been killed in Gaza alone as the siege of the blockaded enclave continues.
Israeli Prime Minister Benjamin Netanyahu has already spoken of a long war as his troops gather on the Gaza border for a full-fledged ground invasion.
There were protests in the occupied West Bank and around Middle East cities after more than 500 Palestinians were killed in an air strike on a Gaza city hospital on Tuesday.
While Palestinian health workers confirmed it was an Israeli strike, Prime Minister Benjamin Netanyahu's government has denied responsibility.
Meanwhile, US President Joe Biden’s Wednesday meeting in Amman with Arab leaders to discuss the escalating developments conflict has been cancelled, the White House has said.
The summit, which was due to take place in the Jordanian capital after his stop in Israel, was to include Jordan's King Abdullah II, Palestinian President Mahmoud Abbas and Egyptian President Abdel Fattah El Sisi.
Energy traders are unsure how far the conflict will drag on and the impact it could have on crude supplies from the region, home to some of the world’s top oil-exporting nations.
The prices are surging “as energy traders remain in wait-and-see mode to see if the US diplomatic efforts will be successful in preventing the Israel-Hamas conflict from turning into a wider regional war”, said Edward Moya, a senior market analyst at Oanda.
Tension in Gaza will remain a major factor influencing prices in the short term, overshadowing even the potential return of Venezuelan oil to the market, as the situation continues to deteriorate in the Middle East, Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said.
“I am afraid we will see tensions further escalate in Gaza, and that could send oil prices higher by a big chunk,” she said.
Meanwhile, China's economy, the world's second largest, grew faster-than-expected in the third quarter, official data on Wednesday showed.
The country's gross domestic product grew 4.9 per cent year on year in July-September, according to the National Bureau of Statistics.
Analysts polled by Reuters had been expecting an expansion of 4.4 per cent.
The Asian country's post-Covid economic recovery lost momentum in the second quarter mainly due to a deepening property slump and weak consumer spending.
China, the world’s largest crude importer, has announced a string of stimulus measures, including halving the stamp duty on stock transactions and easing mortgage rates.
“Chinese growth beat expectations as it came this close to the 5 per cent mark in the [third quarter], retail sales rose more than expected as unemployment fell,” Ms Ozkardeskaya said.
The Saga Continues
Wu-Tang Clan
(36 Chambers / Entertainment One)
What went into the film
25 visual effects (VFX) studios
2,150 VFX shots in a film with 2,500 shots
1,000 VFX artists
3,000 technicians
10 Concept artists, 25 3D designers
New sound technology, named 4D SRL
MATCH INFO
Manchester United 2
(Martial 30', McTominay 90 6')
Manchester City 0
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
INDIA SQUAD
Rohit Sharma (captain), Shikhar Dhawan (vice-captain), KL Rahul, Suresh Raina, Manish Pandey, Dinesh Karthik (wicketkeeper), Deepak Hooda, Washington Sundar, Yuzvendra Chahal, Axar Patel, Vijay Shankar, Shardul Thakur, Jaydev Unadkat, Mohammad Siraj and Rishabh Pant (wicketkeeper)
'The Woman in the House Across the Street from the Girl in the Window'
Director:Michael Lehmann
Stars:Kristen Bell
Rating: 1/5
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
MATCH INFO
Manchester City 3 (Silva 8' &15, Foden 33')
Birmginahm City 0
Man of the match Bernado Silva (Manchester City)
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Types of bank fraud
1) Phishing
Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.
2) Smishing
The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.
3) Vishing
The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.
4) SIM swap
Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.
5) Identity theft
Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.
6) Prize scams
Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.
