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The Gulf's most important bourses are muted due to lower oil prices and Fed rate uncertainty
The majority of Gulf stock markets declined in the early trading on Monday as oil prices fell. Investors awaited the release of a number of U.S. Economic data after the end of government shutdown. After a two-day suspension, loadings at Novorossiysk, the Black Sea port which had been attacked by the Ukrainians, resumed after the suspension. Brent traded at $63.91 per barrel as of 0810 GMT. The benchmark index in Qatar fell 0.6% due to a broad decline. Industries Qatar dropped 1.4% while Qatar National Bank eased 1%. Dubai's benchmark index fell 0.3% due to pressure from consumer staples, real-estate and communications stocks. Emaar Properties fell 2.2%, while Spinneys 1961 Holding dropped 2.5%. Most constituents were in red. The benchmark Abu Dhabi index fell 0.5%. Abu Dhabi Commercial Bank dropped 2.2%, and Presight AI Holding fell 2.5%. ADNOC Drilling fell 1% while ADNOC Gas and ADNOC Logistics, as well as ADNOC Distribution, also slipped. Separately, on Friday the European Commission gave conditional approval to Abu Dhabi National Oil Company's (14.7 billion euro) offer for German chemicals company Covestro. Saudi Arabia's benchmark index rose by 0.2% with all sectors showing positive returns. Saudi National Bank rose 1%, and Arabian Drilling climbed 3.5%. The company announced that it had renewed four rig contracts worth more than 533.22 million riyals. This week, the main U.S. release will be Thursday's non-farm payrolls for September. The market's expectations of a U.S. rate cut in December are now below 50%, after Federal Reserve policymakers adopted a cautious tone. The U.S. monetary policy changes have a major impact on Gulf markets where the majority of currencies are pegged with the dollar.
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The PM claims that the explosion on a Polish railway track was caused as a result of sabotage
Donald Tusk, the Polish prime minister, said that an explosion on Sunday destroyed a rail track along the Warsaw-Lublin line. The blast was caused by sabotage. Tusk posted on the social media platform X that "the explosion of an explosive devise destroyed the rail track." "Emergency Services and the Prosecutor's Office are on the scene." Damage has been found on the same route closer to Lublin," he added. On Sunday, the local police reported that a train conductor had reported damage to a railway line in central Poland. Warsaw said that it has been the target of sabotage in the past because its role as the hub for Ukraine's aid in the Russian War. Moscow has denied such acts.
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New York Times Business News - November 17,
These are the most popular stories from the New York Times' business pages. These stories have not been verified and we cannot vouch for the accuracy of these reports. The U.S. Department of Transportation (DOT) and the Federal Aviation Administration (FAA) announced they would lift the flight restrictions that had been imposed at 40 airports just a little over a week prior during the shutdown of the federal government, citing an improved staffing level among air traffic control officers. Despite the protests of local and state leaders, the Pentagon has ordered hundreds of National Guard troops to leave Chicago and Portland in Oregon, only weeks after President Donald Trump had ordered them there. According to the U.S. Southern Command (USSC), the U.S. Military killed three more people who were accused by the Trump Administration of smuggling drug by sea. This brings the total number of deaths from this campaign to at least eighty-three since the beginning September. (Compiled by Bengaluru Newsroom)
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Japan's tourism share falls as diplomatic dispute with China worsens
After China warned its citizens not to travel to its North Asian neighbor following an increasing diplomatic split over Taiwan, stocks in Japan related to tourism plunged. Isetan Mitsukoshi is a department store with significant sales from Chinese tourists. Its stock dropped 10.7% and it's on track to have its largest drop in over a year. Tokyo Disneyland operator Oriental Land dropped 5.9%, and Japan Airlines (JAL), fell 4.4%. Beijing warned Chinese nationals against traveling to Japan on Friday. Minoru Kihara said on Monday that any attempt by China to restrict travel will violate the agreement between leaders. Japanese media reported that senior Japanese diplomat Masaaki KANAI will visit China on Monday in order to meet with counterpart Liu Jinsong to try to ease tensions. The China-Japan conflict over Taiwan, and Beijing's advice to avoid travel to Japan, will have a negative impact on consumer-facing industries in the near future. This was stated by Masahiko LOO, senior fixed income analyst at State Street Investment Management. He added that "Chinese tourists account for approximately 25% of Japan's traffic inbound, making department shops, luxury retail and hospitality especially vulnerable." Tourism has grown to be a major part of Japan's economic growth, fueled by the weakening yen. According to the Japan National Tourism Organization, more than 650,000 Chinese tourists visited Japan in September. They were only surpassed by South Koreans. According to Takahide Kuchi, executive economist of Nomura Research Institute, the Beijing travel boycott could cause Japan's gross domestic product (GDP) to fall by 0.36 percent on an annual basis. ANA Holdings said that it would continue to monitor the situation and added that the status of reservations for flights from or to China had not changed so far. Its shares fell 3.5%. Spring Japan, the low-cost subsidiary company of JAL, has confirmed that there have been no changes made to their flight schedule, although they are receiving inquiries about cancellations from customers. Fast Retailing, the operator of more than 900 Uniqlo shops in China, has dropped by 5.3%. Ryohin Keikaku (the operator of Muji stores) is down 9.4%. The Nikkei index, the benchmark for Japanese stocks, was down by 0.4%. Tensions between Tokyo and Beijing have flared up since Japan's newly elected Prime Minister Sanae Takaichi said on November 7 that a Chinese attack on Taiwan could amount to a "survival-threatening situation" and trigger a potential military response from Tokyo. The spat was a result of a disagreement between Japan and the United States over the decision to discharge wastewater from the Fukushima Daiichi reactor into the ocean. This dispute has been affecting trade and tourism for many years. According to Alicia Garcia-Herrero of Natixis, Asia-Pacific Chief Economist, a diplomatic rift between Japan and China could have a greater impact on Japan's tourism sector. She said that the Japanese government's insistence on using rare earth metals has only marginally decreased since it began to diversify. China produces 90% of rare earths and rare-earth magnets in the world, which are used for a variety of technologies. Chinese companies that have exposure to the Japanese markets also suffered. The shares of Linkage Software, a software company that derives the majority of its revenue from Japan, dropped 3%. South Korea's Tourism Industry will benefit from the economic turmoil in Asia. Lotte Tour Development, based in Seoul, saw its shares rise 9.6% on the Monday.
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Oil falls after loadings resume at key Russian export hub
The oil prices dropped on Monday, wiping out the gains of last week, as loadings were resumed in the Black Sea port of Novorossiysk, which had been suspended for two days following an attack by Ukraine. Brent crude futures fell 53 cents or 0.82% to $63.86 per barrel at 0423 GMT. U.S. West Texas Intermediate crude futures traded at $59.53 per barrel, down 56c or 0.93% since Friday's closing price. Both benchmarks gained more than 2% Friday, ending the week modestly after exports at Novorossiysk & a Caspian Pipeline Consortium Terminal in the neighbouring city were suspended. This affected the equivalent of 2% global supply. According to two sources in the industry and LSEG, oil loadings resumed at Novorossiysk on Sunday. Ukraine's increased attacks on Russia's infrastructure for oil remain a concern as further disruptions are possible. Ukraine's military announced on Saturday that it had struck Russia's Ryazan Oil Refinery. Kyiv General Staff confirmed on Sunday that it had also struck the Novokuibyshevsk Oil Refinery in Russia’s Samara Region. Toshitaka Takawa, an analyst with Fujitomi Securities, said that investors are trying to assess how Ukraine's attack will affect Russia's oil exports over the long-term, as well as locking in profits following last Friday's rally. "Overall, there is still a perception of an oversupply due to OPEC+'s production increases," he added, adding that WTI will likely stay around $60 a barrel and fluctuate within a $5 range. Investors also monitor the impact of Western Sanctions on Russian trade and supply flows. After November 21, the United States banned deals with Russian oil firms Lukoil, and Rosneft to encourage Moscow into peace talks on Ukraine. Donald Trump, the U.S. president, said on Sunday that Republicans were working on legislation to impose sanctions against any country that does business with Russia. He also said that Iran could be added to this list. Earlier in the month, OPEC+ decided to raise December production targets by 137,000 barrels a day, just as they did for October and November. The group also agreed to put a stop to the increases during the first quarter next year. ING stated in a recent report that it expected the oil market to remain in a surplus until 2026. It warned of increased supply risks, as Ukraine intensified drone attacks on Russian energy installations and Iran seized an oil tanker in Gulf of Oman following its transit of the Strait of Hormuz. This is a major route used by about 20 million barrels of oil a day. Last Tuesday, the latest data on positioning showed that speculators had increased their net-long positions in ICE Brent from 164 867 lots to 12,636 over the previous reporting week. ING stated that this was primarily driven by short-covering, and suggested that some participants were reluctant at the moment to be short due to supply risks associated with uncertainty regarding sanctions. Baker Hughes, an oil services company, reported on Friday that the number of oil rigs in the United States increased by three in the week ending November 14. Reporting by Yuka obayashi in Tokyo, Sam Li in Beijing and Jamie Freed. Editing by Sonali Paul & Jamie Freed.
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Japan's tourism share falls as diplomatic dispute with China worsens
After China warned its citizens not to travel to its North Asian neighbor following an increasing diplomatic split over Taiwan, shares in Japanese tourism companies plunged Monday. Isetan Mitsukoshi is a department store with a large number of Chinese customers. Its sales have dropped 11.4% and are on track to be the largest drop in over a year. Tokyo Disneyland operator Oriental Land dropped 5.1% while Japan Airlines fell 3.9%. China warned Japan on Friday that it would suffer a "crushing defeat" if Japan used force to interfere over Taiwan and warned Chinese citizens not to visit Japan. Kyodo reported that Tokyo asked Beijing to take "appropriate steps" in response to the travel warning on Saturday. Tourism has grown to be a major part of Japan's economic growth, largely due to the weakening yen. According to the Japan National Tourism Organization, mainland Chinese tourists accounted for about 24% (second most) of all visitors to Japan in September. According to Takahide Kuchi, executive economist of Nomura Research Institute, the Beijing travel boycott could cause Japan's gross domestic product (GDP) to fall by 0.36 percent on a yearly basis. Ryohin Keikaku (the operator of Muji stores) dropped 9.4% on the Tokyo stock exchange. Fast Retailing has over 900 Uniqlo shops in mainland China. Its shares dropped by 5.6%. The Nikkei index of stocks fell 0.7%. Tensions between Tokyo and Beijing have heated up since Japan's newly elected Prime Minister Sanae Takaichi said on November 7 that a Chinese attack on Taiwan could amount to a "survival-threatening situation" and trigger a potential military response from Tokyo. According to Alicia Garcia-Herrero of Natixis, the chief economist for Asia Pacific, a diplomatic rift could be more damaging to Japan than a mere dent to its tourism industry. She said that the Japanese government's insistence on using rare earth metals has only marginally decreased since it began to diversify. Over 90% of rare earths are produced in China. Rare earth magnets are also made there. They're essential to a variety of technologies. Chinese companies that have exposure to the Japanese markets also suffered. The shares of Linkage software, whose sales are largely derived from Japan, dropped 3.5%. Airline companies were also hit hard, with mainland listed shares of Air China (China Eastern) and China Eastern falling by more than 2%.
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Six bus passengers killed in Central Vietnam by a landslide
State media reported that at least six people died in central Vietnam on Sunday night when a bus they were riding on was struck by a landslide. Heavy rains pounded the region on Monday. Online newspaper VnExpress reported that the bus was carrying 32 passengers and was on its way from Da Lat towards Nha Trang at the time of this incident. According to the report, 19 passengers were also injured by the landslide that occurred on Khanh Le Pass due to heavy rain. According to the report, two passengers are still trapped in the bus which is partially buried under mud and stones. The report added that rescuers were on the scene. The report included a photo that showed the entire road covered with soil and large rocks. VnExpress reports that three more people are missing from a landslide in Danang. (Reporting and editing by Jamie Freed; Khanh Vu)
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FAA ends mandatory cuts on domestic US flights
Federal Aviation Administration announced late Sunday that it will end mandatory cuts in domestic flight at 40 major U.S. Airports at 6 am. Monday morning, ET (1000 GMT), the Federal Aviation Administration eased restrictions imposed during the shutdown due to concerns about air traffic control. Bryan Bedford, FAA administrator, said that the decision "reflects a steady decline in the staffing concerns." FAA removed restrictions at certain airports on general aviation and space launches. Airlines were expecting this move. On condition of anonymity, several major airlines said that they did not cancel any flights on Monday and had no plans to do so. Airlines for America is a trade association that represents American Airlines, United Airlines Delta Air Lines Southwest Airlines among others. The group declined to comment. The FAA reduced the requirement for flight cuts from 6% down to 3% late Friday evening, despite the fact that airlines were not complying with it anyway. Cirium, a firm that analyzes aviation data, reports that carriers cancelled just 0.25 percent of flights on Sunday at these 40 airports. This is less than the normal cancellation rate. Cirium reported that the cancellation rate in the United States for Sunday was only 0.36%. They interpreted this as a sign of operations returning to normal. The FAA's order was much higher. On Sunday, the FAA said it had received reports that carriers were not complying with the emergency order. The agency is assessing and reviewing enforcement options." The FAA can seek fines of up to $75,000.00 for each flight that exceeds the limits. FAA officials initially aimed to gradually increase the reductions in domestic flights to 10%, but on November 12, they decided to freeze this requirement at 6% as disruptions decreased dramatically after the shutdown ended. The agency initially ordered flight reductions to minimize disruptions to travel caused by a shortage of air traffic control during the shutdown of the federal government, when many controllers stopped coming to work due to not being paid. There are about 3,500 controllers below the FAA's target staffing level. Before the shutdown, many had already been working six-day weekends and mandatory overtime. After October 1, when the shutdown started, thousands of flights were cancelled and delayed due to air traffic controllers' absence. Air traffic controllers, FAA employees, and others began receiving their back pay on Friday, just two days after the end of a record-breaking 43-day government shutdown. The amount is about 70%.
Diamondback and Kinetik purchase 30% stake in impressive Crude pipeline
Oil and gas firms Diamondback Energy and Kinetik Holdings on Tuesday stated they acquired a 30% equity interest in the legendary Crude pipeline system.
The business will each own 27.5% of EPIC Crude, while moms and dad impressive Midstream will continue to own a 45% stake in the pipeline.
WHY IT IS ESSENTIAL
The consolidation wave in the U.S. energy sector that activated $250 billion worth of handle 2023 has actually extended into this year, as business try to find opportunities to release their money stockpile, boost reserves, and become economical.
Previously this month, Diamondback bought privately held rival Undertaking Energy Resources in a $26 billion cash-and-stock offer, making it the third-largest oil and gas manufacturer in the Permian Basin of West Texas and New Mexico.
The impressive Crude deal will guarantee a cost-effective. takeaway out of the basin for our broadened crude portfolio,. Diamondback Chief Financial Officer Kaes Van't Hof said in a. declaration.
CONTEXT
Impressive Crude is an 800-mile crude oil pipeline system that. connects the Delaware, Midland Basin, and Eagle Ford supply to. Legendary's 3.4 million barrel Robstown Terminal near Corpus Christi.
The pipeline system went into complete in April 2020.
BY THE NUMBERS
Impressive Crude has a capacity of 600,000 barrels per day (bpd),. which is expandable approximately 1 million barrels daily, and about 7. million barrels of operational storage.
Diamondback stated it is transforming its existing commitment on. EPIC Crude into a larger volume commitment of 200,000 bpd to. accommodate extra crude barrels from its completed offer. with Endeavor Energy.
(source: Reuters)