Finance World

Commodities remain under pressure from uncertainty surrounding the US’ trade dispute with the rest of the world and the continued weakness seen across emerging market stocks, bonds, and currency markets. These developments have resulted in the Bloomberg Commodity Index losing close to 9% since its early June peak while sending it towards its lowest weekly close in more than a year.

A consortium composed of Novus Aviation Capital, Development Bank of Japan Inc., NORD/LB Norddeutsche Landesbank and The Boeing Company has launched Cedar Aviation Finance (CAF), a new junior debt fund designed to provide airlines and lessors with higher loan-to-value financing for the acquisition of Boeing manufactured aircraft. The fund will be managed by Novus and will provide junior and mezzanine loans to bridge the gap between equity and senior debt.

Equitativa, the largest REIT manager in the GCC and manager of Emirates REIT (CEIC) Limited, reports the unaudited first-half financial results for Emirates REIT, the world's largest Shari'a compliant REIT, for the period ending 30 June 2018.

The commodity sector recorded a third consecutive monthly loss in August as trade wars and emerging market turmoil more than offset a return to profit across the energy sector. Crude oil moved higher on emerging signs that Iranian production has begun to fall in response to US sanctions. Many of the developments, both up and down, can directly be linked back to decisions taken by the US administration and Federal Reserve in recent months.

Currencies

Strong German economy lifts Euro

All sectors of the German economy grew in the second quarter, data showed, with robust domestic activity helping to cushion against risks to exports from an uncertain global trade outlook. Construction and state spending expanded the most, both up 0.6 per cent quarter on quarter. Private consumption extended its growth run to six straight quarters, reflecting steady falls in unemployment during what has been a long phase of economic recovery. Turkish crisis seems to be calming down a bit, attention is starting to focus on other things, such as the risk appetite. That should lift the Euro overall.