2 April 2019 FT — Articles to Read

2 April 2019

Question: According to MSN: Money, what is the average American Retirement Savings?


Saudi Aramco bond sale lifts veil on world’s biggest profit of $111bn – Pg. 1

–          …for the first time disclosed the financial performance it has kept secret for three-quarters of a century, revealing the kingdom’s state oil group generated more profits last year than any other company in the world

–          …produces more than 10% of the world crude, shows the state’s reliance on the producer means it generates less in post-tax profits per barrel than privately owned rivals

–          The government in Riyadh relied on the oil sector for 63% of its total revenue in 2017,…

–          Moody’s and Fitch assigned the company ratings of A1 and A+ respectively but said the government’s reliance on the oil producer to fund its budget acted as a cap on its creditworthiness.  Exxon-Mobil of the US is rated triple A by Moody’s


What if you build it and they don’t come? – Pg. 7

–          Property prices are down by at least 25% since 2014; real estate developers are trimming their headcounts and delaying payments to suppliers; parents speak of falling numbers at their children’s schools.  Growth in GDP decelerated to 1.9% last year, the emirate’s slowest rate of expansion since 2010

–          At a time when job cuts are hitting white-collar workers, a priority appears to be boosting population growth among wealthy foreigners by providing expatriates – who make up 92% of the 3.2m population and yet have no right to stay in the emirate if they lose their jobs – with a greater sense of belonging to encourage long-term investment

–          A new law to allow 100% foreign ownership of companies outside existing business parks, which currently exempt the need for a local partner, is another measure designed to improve the commercial climate and cut costs

–          Giving foreigners more rights in what was historically a conservative, local society is unpopular among the 250,000 Emiratis in Dubai

–          Abu Dhabi’s foreign policy has forced Dubai, for the first time, to choose politics over business

–          Dubai is credited with developing one of the region’s most diversified economies, founded on trade and transportation

–          Dubai, including state-related entities, has been paying down debt over the past few years but still owes $122.5bn, equivalent to about 110% of GDP


Developers hail ‘game changer’ for India’s commercial property – Pg. 19

–          This week brings a landmark for the industry with the start of trading in India’s first real estate investment trust, an asset class whose cheerleaders say heralds a wave of funding from foreign institutions and domestic savers

–          A debt market crunch late last year has made it tougher for many developers to raise funds from short-term bond issuance and from nonbank financial companies that have themselves been hit by the debt market problems

–          The strong reception for the Embassy Reit, which owns seven business parks and four city-centre office buildings in Bangalore, Pune, Mumbai and Noida (outside Delhi), highlights the divergence between the residential and commercial property segment in India

–          …commercial property has performed strongly with occupied office space growing two or three times over the past decade in hubs such as Bangalore, Mumbai and Delhi (Prof Note: P(Gain) is in the early stages, very early, of negotiating office space in India.  As we build out and expand back-office support systems and infrastructure.  The amount of high-quality, affordable talent in India appears to be endless.)

–          Reits will allow small Indian savers to invest in commercial property for the first time.  Indian families have long concentrated their wealth in real estate with physical assets accounting for about 56% of household savings,…

–          Indian Reit rules state that only commercial property can be included and at least 80% of the assets must be revenue-generating


Answer: 42.3% of Americans have less than $10,000.00