Saudi Wealth Fund Ditches Blue-Chip Stocks, Adds ETFs - Bloomberg:
Saudi Arabia’s $325 billion sovereign-wealth fund continued buying U.S. stocks as it hunted for opportunities in the economic wreckage of the coronavirus crisis, but largely exited the blue-chip positions it bought in the first quarter.
The Public Investment Fund, chaired by Crown Prince Mohammed bin Salman, disclosed stakes worth $10.1 billion at the end of the second quarter, according to a regulatory filing. This included holdings in exchange-traded funds tied to the utilities and materials sectors. It also boosted its stake in Suncor Energy Inc. and Carnival Corp.
PIF’s investment drive saw it build holdings in some of the biggest global companies since the start of the coronavirus pandemic, with about $8 billion worth of stakes in firms including BP Plc, Boeing Co., Citigroup Inc. and Facebook Inc. It exited all those names as well as Marriott International Inc., Walt Disney Co., Total and Royal Dutch Shell Plc.
The trading comes as the world’s largest crude exporter faces exceptional fiscal pressure following a crash in global oil markets.
Friday, 14 August 2020
#Saudi Wealth Fund Is Said to Repay $10 Billion Bridge Loan - Bloomberg
Saudi Wealth Fund Is Said to Repay $10 Billion Bridge Loan - Bloomberg:
Saudi Arabia’s sovereign wealth fund has paid back a $10 billion bridge loan two months ahead of schedule, according to people familiar with the matter.
The Public Investment Fund has fully repaid the loan, which was due in October, the people said, asking not to be identified because the information is private. It had signed the loan last year to raise funds while it waited for the proceeds of the sale of its nearly $70 billion stake in Saudi Basic Industries Corp., which closed in June.
Saudi Arabia has been pushed into a deep budget deficit by the coronavirus pandemic and oil-price slump, forcing the kingdom to hike taxes and increase the government debt ceiling to 50% of economic output. The PIF is a key part of a plan by Crown Prince Mohammed bin Salman to transform the economy and wean it off a reliance on petroleum revenues.
A group of 10 banks provided the loan: Bank of America Corp., BNP Paribas SA, Citigroup Inc., Credit Agricole SA, HSBC Holdings Plc, JPMorgan Chase & Co., Mizuho Financial Group Inc., Mitsubishi UFJ Financial Group Inc., Standard Chartered Plc and Sumitomo Mitsui Banking Corp. A spokesman for the PIF confirmed it had been repaid ahead of schedule, without providing further details.
Saudi Arabia’s sovereign wealth fund has paid back a $10 billion bridge loan two months ahead of schedule, according to people familiar with the matter.
The Public Investment Fund has fully repaid the loan, which was due in October, the people said, asking not to be identified because the information is private. It had signed the loan last year to raise funds while it waited for the proceeds of the sale of its nearly $70 billion stake in Saudi Basic Industries Corp., which closed in June.
Saudi Arabia has been pushed into a deep budget deficit by the coronavirus pandemic and oil-price slump, forcing the kingdom to hike taxes and increase the government debt ceiling to 50% of economic output. The PIF is a key part of a plan by Crown Prince Mohammed bin Salman to transform the economy and wean it off a reliance on petroleum revenues.
A group of 10 banks provided the loan: Bank of America Corp., BNP Paribas SA, Citigroup Inc., Credit Agricole SA, HSBC Holdings Plc, JPMorgan Chase & Co., Mizuho Financial Group Inc., Mitsubishi UFJ Financial Group Inc., Standard Chartered Plc and Sumitomo Mitsui Banking Corp. A spokesman for the PIF confirmed it had been repaid ahead of schedule, without providing further details.
As #UAE hails #Israel accord, silence from #SaudiArabia - Reuters
As UAE hails Israel accord, silence from Saudi Arabia - Reuters:
As media and people in the United Arab Emirates hailed the Gulf state’s deal to normalise relations with Israel as a diplomatic victory that helps the Palestinians, silence reigned in Saudi Arabia, longtime figurehead of regional policy towards Israel.
Analysts see the surprise UAE-Israel agreement announced on Thursday as a strategic boost for the UAE’s regional and global standing that could put it ahead of its powerful Saudi neighbour and ally, especially in critical relations with Washington.
Saudi Arabia is the Gulf’s largest economy and the world’s biggest oil exporter, but the UAE has in recent years become increasingly assertive in its own foreign policy, especially in regional hot spots such as Libya, Sudan and Yemen.
In July last year the UAE said it was withdrawing its troops from Yemen where it had jointly with Saudi Arabia led a Western-backed coalition fighting the Iran-aligned Houthis since 2015.
As media and people in the United Arab Emirates hailed the Gulf state’s deal to normalise relations with Israel as a diplomatic victory that helps the Palestinians, silence reigned in Saudi Arabia, longtime figurehead of regional policy towards Israel.
Analysts see the surprise UAE-Israel agreement announced on Thursday as a strategic boost for the UAE’s regional and global standing that could put it ahead of its powerful Saudi neighbour and ally, especially in critical relations with Washington.
Saudi Arabia is the Gulf’s largest economy and the world’s biggest oil exporter, but the UAE has in recent years become increasingly assertive in its own foreign policy, especially in regional hot spots such as Libya, Sudan and Yemen.
In July last year the UAE said it was withdrawing its troops from Yemen where it had jointly with Saudi Arabia led a Western-backed coalition fighting the Iran-aligned Houthis since 2015.
Oil prices down on demand worries, growing supply - Reuters
Oil prices down on demand worries, growing supply - Reuters:
Oil prices edged lower on Friday on worries that demand would recover more slowly than expected from COVID-19 pandemic lockdowns, while rising supply also overshadowed optimism over falling crude and fuel inventories.
This week, two prominent forecasters, the International Energy Agency and the Organization of the Petroleum Exporting Countries, trimmed their 2020 oil demand forecasts. OPEC and its allies are increasing output this month.
“The big-picture question is whether the spread of coronavirus is going to continue to impact on the return of gasoline and diesel demand,” said Andy Lipow of Lipow Oil Associates in Houston.
Brent crude LCOc1 settled at $44.80 a barrel, falling 16 cents. U.S. West Texas Intermediate CLc1 settled at $42.01 a barrel, down 23 cents.
For the week, Brent was up 0.9% and WTI gained 1.9%.
Oil prices edged lower on Friday on worries that demand would recover more slowly than expected from COVID-19 pandemic lockdowns, while rising supply also overshadowed optimism over falling crude and fuel inventories.
This week, two prominent forecasters, the International Energy Agency and the Organization of the Petroleum Exporting Countries, trimmed their 2020 oil demand forecasts. OPEC and its allies are increasing output this month.
“The big-picture question is whether the spread of coronavirus is going to continue to impact on the return of gasoline and diesel demand,” said Andy Lipow of Lipow Oil Associates in Houston.
Brent crude LCOc1 settled at $44.80 a barrel, falling 16 cents. U.S. West Texas Intermediate CLc1 settled at $42.01 a barrel, down 23 cents.
For the week, Brent was up 0.9% and WTI gained 1.9%.
Oil Set for Weekly Gain With U.S. Rebound Outweighing IEA Report - Bloomberg
Oil Set for Weekly Gain With U.S. Rebound Outweighing IEA Report - Bloomberg:
Oil headed for a second weekly gain as signs an energy demand recovery in the U.S. is gaining traction outweighed a more pessimistic report from the International Energy Agency.
Futures in New York edged higher near $42 a barrel Friday and are up around 3% for the week. A slew of encouraging data on U.S. crude stockpiles, gasoline consumption and refinery activity spurred the biggest daily jump in three weeks Wednesday. The optimism was tempered the following day as the IEA cut its global demand estimates for almost every quarter through the end of 2021.
The agency’s steepest downgrades were for the second half of this year and it said the outlook for jet fuel consumption had worsened in the last few weeks as the coronavirus spread more widely. On a brighter note, the IEA said that world markets should tighten during the rest of the year as activity recovers and Saudi Arabia and other OPEC nations keep production in check.
Oil headed for a second weekly gain as signs an energy demand recovery in the U.S. is gaining traction outweighed a more pessimistic report from the International Energy Agency.
Futures in New York edged higher near $42 a barrel Friday and are up around 3% for the week. A slew of encouraging data on U.S. crude stockpiles, gasoline consumption and refinery activity spurred the biggest daily jump in three weeks Wednesday. The optimism was tempered the following day as the IEA cut its global demand estimates for almost every quarter through the end of 2021.
The agency’s steepest downgrades were for the second half of this year and it said the outlook for jet fuel consumption had worsened in the last few weeks as the coronavirus spread more widely. On a brighter note, the IEA said that world markets should tighten during the rest of the year as activity recovers and Saudi Arabia and other OPEC nations keep production in check.
#AbuDhabi's Masdar to buy 50% stake in EDF's US clean energy portfolio | ZAWYA MENA Edition
Abu Dhabi's Masdar to buy 50% stake in EDF's US clean energy portfolio | ZAWYA MENA Edition:
Masdar, one of the world’s leading clean energy developers and a unit of Mubadala Investment Company, has announced its second strategic investment in the US in a deal with EDF Renewables North America that will see it acquire a 50 per cent stake in a 1.6-gigawatt (GW) clean-energy portfolio.
As per the deal, Masdar has bought a 50 percent interest in three utility-scale wind farms in Nebraska and Texas totalling 815 MW, and five photovoltaic (PV) solar projects in California – two of which include battery energy storage systems – totalling 689 MW of solar and 75 MW of lithium-ion battery energy storage.
The 243 MW Coyote wind project is located in Scurry County, Texas; the 273 MW Las Majadas wind project is in Willacy County, Texas; and the 300 MW Milligan 1 wind project is in Saline County, Nebraska.
All three wind projects are currently under construction and expected to begin commercial operations in the fourth quarter of 2020.
Masdar, one of the world’s leading clean energy developers and a unit of Mubadala Investment Company, has announced its second strategic investment in the US in a deal with EDF Renewables North America that will see it acquire a 50 per cent stake in a 1.6-gigawatt (GW) clean-energy portfolio.
As per the deal, Masdar has bought a 50 percent interest in three utility-scale wind farms in Nebraska and Texas totalling 815 MW, and five photovoltaic (PV) solar projects in California – two of which include battery energy storage systems – totalling 689 MW of solar and 75 MW of lithium-ion battery energy storage.
The 243 MW Coyote wind project is located in Scurry County, Texas; the 273 MW Las Majadas wind project is in Willacy County, Texas; and the 300 MW Milligan 1 wind project is in Saline County, Nebraska.
All three wind projects are currently under construction and expected to begin commercial operations in the fourth quarter of 2020.
Oil slips below $45 on demand doubts, rising supply - Reuters
Oil slips below $45 on demand doubts, rising supply - Reuters:
Oil slipped further below $45 a barrel on Friday, giving up this week’s gains, under pressure from doubts about demand recovery due to the coronavirus pandemic and rising supply.
Two prominent forecasters, the International Energy Agency and the Organization of the Petroleum Exporting Countries, trimmed their 2020 oil demand forecasts this week. [IEA/M] [OPEC/M] OPEC and its allies are increasing output this month.
“Pessimism about this year’s oil demand growth prospects is due to the weakening outlook in the coming months,” said Stephen Brennock of oil broker PVM.
“To make matters worse, global oil supply is on the upswing.”
Brent crude LCOc1 was 29 cents, or 0.7%, lower at $44.67 by 0810 GMT, heading for a flat week. U.S. West Texas Intermediate CLc1 slipped 25 cents, or 0.6%, to $41.99.
Oil slipped further below $45 a barrel on Friday, giving up this week’s gains, under pressure from doubts about demand recovery due to the coronavirus pandemic and rising supply.
Two prominent forecasters, the International Energy Agency and the Organization of the Petroleum Exporting Countries, trimmed their 2020 oil demand forecasts this week. [IEA/M] [OPEC/M] OPEC and its allies are increasing output this month.
“Pessimism about this year’s oil demand growth prospects is due to the weakening outlook in the coming months,” said Stephen Brennock of oil broker PVM.
“To make matters worse, global oil supply is on the upswing.”
Brent crude LCOc1 was 29 cents, or 0.7%, lower at $44.67 by 0810 GMT, heading for a flat week. U.S. West Texas Intermediate CLc1 slipped 25 cents, or 0.6%, to $41.99.