Browsing all articles tagged with Barclays

Banks In The Dark Over $15 Billion of Promised Rosneft M&A business

Banks that assist Russian oil company Rosneft finance its $55 billion buyout of rival have been left waiting for their payback a share in $15 billion in asset sales projected to follow the deal.

State oil company Rosneft’s takeover of this year aimed to generate a major oil group producing more oil than however it also tightened the Russian government’s grip on the country’s energy sector.

The asset sales promised by Rosneft Chief Executive Igor Sechin would offload less-profitable businesses to turn the company into the major oil player the CEO has stated he wants it to be. The delay demonstrate Rosneft has a lot on its plate integrating and that the sales are on the back burner.

Rosneft had dangled the juicy divestment mandates at the banks in exchange for a $29.8 billion loan the largest in Russia’s history on good terms, all the lending banks are waiting. We thought asset sales and refinancing bonds would kick start straight following the closing.

Rosneft’s slow motion is annoying the banks as they would earn fat fees from advising the oil giant on the asset sales this year, which would assist boost M&A revenues in an otherwise arid deal making landscape.

M&A activity across all sectors is losing 7 percent in Europe, Africa and Middle East since January partly due to the impact of the euro zone crisis on business confidence.

Banks that uphold big balance sheets throughout the financial crisis have been hoping to use this muscle to win lucrative M&A advisory business from competitor which had to shrink partly to meet tough European capital rules.

Banks frequently use their balance sheets to offer cheap loans to corporate clients to secure higher margin business such as share or bond issues or M&A work.

Big balance sheets helped Deutsche Bank and Barclays to achieve number 2 and 3 rankings in M&A league tables previous year, challenging US rival Goldman Sachs which had the top slot.


Gold Hang On About $1,590, US job Statistics Weighs

Yellow metal float at $1,590 per ounce on Friday, following positive US labour market statistics added to indication of an economic recovery that would make safe haven assets like precious metal less attractive.

The number of Americans heading new claims for unemployment benefits knock down for a third straight week previous week, the latest signal the labour market recovery was rising grip.

Barclays lowered its 2013 and 2014 price predicts for on Thursday in a memo, saying downside risks to the yellow metal position have increased, as the benefit catalysts have retreated.

Commissioner Scott O’Malia said on Thursday that the US Commodity Futures Trading Commission has engaged in a couple of dialogues regarding whether the daily setting of silver and gold prices in London is open to manipulation.

Germany’s economy will gradually recover ground lost at the end of 2012 and develop 0.6 percent this year thanks to higher investments on the back of low interest rates.

Holdings of SPDR Gold Trust, the world’s biggest gold backed exchange traded fund had plunged 3.432 tonnes so far this week on course for an eleventh week of turn down, while holdings were unaffected at 1,236.307 tonnes from a day earlier on March 14.

Spot gold traded nearly on a flat rate at $1,589.61 per ounce by 0016 GMT, on course for a second week of modest addition.

US gold knock down 0.1 percent to $1,588.70 per ounce.

With sustained confidence in the US economy and a lack of obvious concern for the global economy in general, precious metal is struggling to find a justification for price strength.

Gold future for April delivery tacked on $2.30, or 0.1%, to settle at $1,590.70 per ounce on the Comex division of the New York Mercantile Exchange, following tapping a low of $1,575.20 per ounce.