Oil prices rose on the first day of trading this year on fears of Red Sea supply disruptions and hopes of an improving demand outlook in China.
Brent, the benchmark for two thirds of the world's oil, was trading 2.14 per cent higher at $78.69 a barrel at 4.11pm UAE time. West Texas Intermediate, the gauge that tracks US crude, was up 2.18 per cent at $73.21 a barrel.
Crude futures recorded their biggest annual drop since 2020 last year at a time of record US oil production and a slowdown in major economies.
On an annual basis, Brent ended 2023 more than 10 per cent lower, while WTI dropped by nearly 11 per cent.
On Sunday, the Yemeni Houthi rebel group launched three anti-ship missiles at a commercial vessel, the Maersk Hangzhou, a Singapore-flagged container ship.
One struck it, causing damage but no casualties, while two of the missiles were shot down by the destroyer USS Gravely.
The US said that a naval task force formed in December had shot down four ballistic missiles and 17 drones fired by the Iran-backed militia.
The Bab Al Mandeb, located at the southern edge of the Red Sea, is a route for oil tankers and vessels between the Arabian Gulf and Asia, as well as to Europe by way of the Suez Canal.
About 12 per cent of the seaborne oil trade and 8 per cent of liquefied natural gas passes through the strait.
Meanwhile, manufacturing activity in China, the world’s second-largest economy, fell for the third month in a row, raising expectations of stimulus measures to revive growth.
China’s official manufacturing purchasing managers' index (PMI) fell to 49 last month from 49.4 in November, the third consecutive month of a reading below the neutral 50 mark, and below consensus expectations of an improvement to 49.6.
The deterioration in the official manufacturing PMI stood in contrast to the Caixin manufacturing PMI reading, which rose above expectations, to 50.8 in December from 50.7 the month before.
Investors will closely follow data points to be released by the US this week.
The minutes of the December 13 Federal Reserve meeting will be out on Wednesday and could potentially shed light on the more “dovish” remarks made by Chairman Jerome Powell at the press conference last month, Jeanne Walters, senior economist at Emirates NBD, said.
The Fed left interest rates unchanged after 2023’s last policy meeting but indicated that it would cut rates more than once this year.
The central bank has raised interest rates by 525 basis points since March 2022 after an inflation surge in the US.
Higher interest rates could dampen economic growth, lowering crude demand.
The Labour Department will also release November job openings data on Wednesday, after openings fell in October to their lowest in two and a half years in a sign of a loosening labour market in the US.
Last week, the US Commerce Department’s Personal Consumption Expenditures report showed that inflation fell to 2.6 per cent in November from 2.9 per cent the month before.
Meanwhile, inflation in the UK fell to 3.9 per cent in November from 4.6 per cent in October, representing a bigger dip than predicted and the lowest figure in two years.
“It is no slam-dunk that global inflation will gradually ease to what many central banks have long contemplated, but typically it will be around the 2 per cent level,” said Gary Dugan, chief investment officer at Dalma Capital.
“Geopolitics could still spoil the game and push commodity prices higher. Although inflation pressure has abated, we suspect it may linger longer than the market's current price,” Mr Dugan said.
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E3.5-litre%20twin-turbo%20V6%20%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E456hp%20at%205%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E691Nm%20at%203%2C500rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E10-speed%20auto%20%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E14.6L%2F100km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh349%2C545%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
Sui Dhaaga: Made in India
Director: Sharat Katariya
Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav
3.5/5
England's all-time record goalscorers:
Wayne Rooney 53
Bobby Charlton 49
Gary Lineker 48
Jimmy Greaves 44
Michael Owen 40
Tom Finney 30
Nat Lofthouse 30
Alan Shearer 30
Viv Woodward 29
Frank Lampard 29
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.”
War
Director: Siddharth Anand
Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor
Rating: Two out of five stars
The specs
Engine: 2.0-litre four-cylinder turbo
Power: 268hp at 5,600rpm
Torque: 380Nm at 4,800rpm
Transmission: CVT auto
Fuel consumption: 9.5L/100km
On sale: now
Price: from Dh195,000
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
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Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
COMPANY%20PROFILE
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AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
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HOW%20TO%20ACTIVATE%20THE%20GEMINI%20SHORTCUT%20ON%20CHROME%20CANARY
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
My Cat Yugoslavia by Pajtim Statovci
Pushkin Press
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HOSTS
T20 WORLD CUP
2024: US and West Indies; 2026: India and Sri Lanka; 2028: Australia and New Zealand; 2030: England, Ireland and Scotland
ODI WORLD CUP
2027: South Africa, Zimbabwe and Namibia; 2031: India and
Bangladesh
CHAMPIONS TROPHY
2025: Pakistan; 2029: India
Ukraine
Capital: Kiev
Population: 44.13 million
Armed conflict in Donbass
Russia-backed fighters control territory
Results
Women finals: 48kg - Urantsetseg Munkhbat (MGL) bt Distria Krasniqi (KOS); 52kg - Odette Guiffrida (ITA) bt Majlinda Kelmendi (KOS); 57kg - Nora Gjakova (KOS) bt Anastasiia Konkina (Rus)
Men’s finals: 60kg - Amiran Papinashvili (GEO) bt Francisco Garrigos (ESP); 66kg - Vazha Margvelashvili (Geo) bt Yerlan Serikzhanov (KAZ)
