Regional investors will be eyeing cues from Europe this week as officials from the world's two biggest central banks, the US Federal Reserve and the European Central Bank, meet in Frankfurt.
It was between July 27 and the end of September last year that global markets wiped almost 20 per cent off their value. In the United States, battles in Washington heightened over the US debt ceiling, followed by a sovereign ratings downgrade. Andin Europe, signs of a worsening debt crisis were already in motion, threatening to put the brakes on the global economy.
"The global economy is still fragile and US data doesn't look quite as healthy, the drop in housing sales last week, down 1.4 per cent, does not give comfort for analysts to give a full optimistic view for the remaining of the year," said Wadah Al Taha, the chief investment officer at Al Zarooni Group, an investment company based in Dubai.
"In Europe, the problems are compounded, they are not related to a single currency, country or one aspect of the financial sector, which needs an integrated group of solutions for all members.
"Politics is still playing a big part of the problem and the disagreement on certain aspects is slowing down the recovery of the European financial crisis."
The European Central Bank chief Mario Draghi, who last week said the banking regulator would do everything in its power to save the euro, saw his comments boost world markets. But that was only because they were twinned with his assertion that some stabilisation and reversal of now wildly divergent government borrowing rates within the bloc was central to the institution's mandate.
Mr Draghi's ability to quickly back his words with action that cuts those extreme bond yield spreads and at least neutralises the corrosive effect on global economic confidence of the lingering euro threat is easily the biggest make-or-break issue for investors for the next seven days.
The Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) saw muted trading activity last week as jittery investors were unwilling to take any further risk ahead of Mr Draghi's meeting.
That was even as second-quarter earnings results from the banking and financial services sector came out better than expected.
The ADX General Index added 0.09 per cent to 2,470.23 for the week, while the DFM General Index declined 1.6 per cent to 1,509.81.
"What we have seen so far is a very muted reaction on the banks despite good results," said Haissam Arabi, the chief executive at Gulfmena Investments in Dubai.
"We are in Ramadan season, there is low interest, low volumes, a lack of conviction and direction for these markets. We might see a repeat of it this week, unless there is a disaster in Europe, in which case stocks will go down."
On Tuesday, Union National Bank and Dubai Islamic Bank will report their second-quarter results. Tabreed, a district cooling company, is also expected to report quarterly earnings on Tuesday.
Last week, Abu Dhabi Commercial Bank, the country's third-biggest lender posted a quarterly profit of Dh733.1 million, exceeding analyst estimates, although the figure was down 45 per cent year on year because of a one-off gain booked in the second quarter last year from the sale of a 25 per cent stake in Malaysia's RHB Capital.
Analysts polled by Reuters had forecast an average profit of Dh679.5m.
Abu Dhabi's First Gulf Bank reported a profit of Dh1.01 billion in the quarter, compared to Dh890.1m a year earlier. Analyst consensus had estimated an average profit of Dh950.1m.
National Bank of Abu Dhabi, the country's second-biggest bank, reported a profit of Dh1.05bn versus Dh1.03bn a year ago.
Analysts had forecast an average profit of Dh1.031bn in a Reuters poll.
* with Reuters
halsayegh@thenational.ae
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Iran's dirty tricks to dodge sanctions
There’s increased scrutiny on the tricks being used to keep commodities flowing to and from blacklisted countries. Here’s a description of how some work.
1 Going Dark
A common method to transport Iranian oil with stealth is to turn off the Automatic Identification System, an electronic device that pinpoints a ship’s location. Known as going dark, a vessel flicks the switch before berthing and typically reappears days later, masking the location of its load or discharge port.
2. Ship-to-Ship Transfers
A first vessel will take its clandestine cargo away from the country in question before transferring it to a waiting ship, all of this happening out of sight. The vessels will then sail in different directions. For about a third of Iranian exports, more than one tanker typically handles a load before it’s delivered to its final destination, analysts say.
3. Fake Destinations
Signaling the wrong destination to load or unload is another technique. Ships that intend to take cargo from Iran may indicate their loading ports in sanction-free places like Iraq. Ships can keep changing their destinations and end up not berthing at any of them.
4. Rebranded Barrels
Iranian barrels can also be rebranded as oil from a nation free from sanctions such as Iraq. The countries share fields along their border and the crude has similar characteristics. Oil from these deposits can be trucked out to another port and documents forged to hide Iran as the origin.
* Bloomberg
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FOOTBALL TEST
Team X 1 Team Y 0
Scorers
Red card
Man of the Match
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months
Low turnout
Two months before the first round on April 10, the appetite of voters for the election is low.
Mathieu Gallard, account manager with Ipsos, which conducted the most recent poll, said current forecasts suggested only two-thirds were "very likely" to vote in the first round, compared with a 78 per cent turnout in the 2017 presidential elections.
"It depends on how interesting the campaign is on their main concerns," he told The National. "Just now, it's hard to say who, between Macron and the candidates of the right, would be most affected by a low turnout."
Racecard
6.35pm: The Madjani Stakes – Group 2 (PA) Dh97,500 (Dirt) 1,900m
7.10pm: Evidenza – Handicap (TB) Dh87,500 (D) 1,200m
7.45pm: The Longines Conquest – Maiden (TB) Dh82,500 (D) 2,000m
8.20: The Longines Elegant – Conditions (TB) Dh82,500 (D)
8.35pm: The Dubai Creek Mile – Listed (TB) Dh132,500 (D) 1,600m
9.30pm: Mirdif Stakes – Conditions (TB) Dh120,000 (D) 1,400m
10.05pm: The Longines Record – Handicap (TB) Dh87,500 (D) 1,900m
Buy farm-fresh food
The UAE is stepping up its game when it comes to platforms for local farms to show off and sell their produce.
In Dubai, visit Emirati Farmers Souq at The Pointe every Saturday from 8am to 2pm, which has produce from Al Ammar Farm, Omar Al Katri Farm, Hikarivege Vegetables, Rashed Farms and Al Khaleej Honey Trading, among others.
In Sharjah, the Aljada residential community will launch a new outdoor farmers’ market every Friday starting this weekend. Manbat will be held from 3pm to 8pm, and will host 30 farmers, local home-grown entrepreneurs and food stalls from the teams behind Badia Farms; Emirates Hydroponics Farms; Modern Organic Farm; Revolution Real; Astraea Farms; and Al Khaleej Food.
In Abu Dhabi, order farm produce from Food Crowd, an online grocery platform that supplies fresh and organic ingredients directly from farms such as Emirates Bio Farm, TFC, Armela Farms and mother company Al Dahra.
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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Crops that could be introduced to the UAE
1: Quinoa
2. Bathua
3. Amaranth
4. Pearl and finger millet
5. Sorghum
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Primera Liga fixtures (all times UAE: 4 GMT)
Friday
Real Sociedad v Villarreal (10.15pm)
Real Betis v Celta Vigo (midnight)
Saturday
Alaves v Barcelona (8.15pm)
Levante v Deportivo La Coruna (10.15pm)
Girona v Malaga (10.15pm)
Las Palmas v Atletico Madrid (12.15am)
Sunday
Espanyol v Leganes (8.15pm)
Eibar v Athletic Bilbao (8.15pm)
Getafe v Sevilla (10.15pm)
Real Madrid v Valencia (10.15pm)
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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In numbers
1,000 tonnes of waste collected daily:
- 800 tonnes converted into alternative fuel
- 150 tonnes to landfill
- 50 tonnes sold as scrap metal
800 tonnes of RDF replaces 500 tonnes of coal
Two conveyor lines treat more than 350,000 tonnes of waste per year
25 staff on site