Saudi Arabia’s Net Foreign Assets Rose in June From 10-Year Low - Bloomberg
Saudi Arabia’s net foreign assets rose 2% in June, recovering slightly from their lowest level in more than a decade as higher oil prices gave the kingdom a boost.
The stockpile at the central bank increased by 34 billion riyals ($9.1 billion) last month, according to the central bank’s monthly report released on Saturday.
Net foreign assets declined significantly in 2020 as lower oil income strained finances and officials transferred $40 billion to the kingdom’s sovereign fund to fuel an investment spree. The indicator -- which topped $700 billion in 2014 after an oil boom pumped up savings -- now stands at 1.66 trillion riyals.
Most economists say that’s more than enough to defend the riyal’s peg to the dollar, and rising oil prices could further lift the fortunes of the world’s largest crude exporter in the months ahead.
The price of Brent crude averaged over $73 a barrel in June, compared to $68 in May and $65 in April.
Saturday 31 July 2021
#Qatar dials into Africa’s mobile-money scramble | Reuters
Qatar dials into Africa’s mobile-money scramble | Reuters
Africa’s financial technology buzz is growing. Airtel Africa (AAF.L) on Friday said the Qatar Investment Authority would pay $200 million for a minority stake and a board seat in the telco’s mobile-money unit, AMC. That’s on top of the $300 million Airtel Africa received from selling stakes in the business to private equity firm TPG and Mastercard (MA.N) earlier this year. The deal values AMC at an enterprise value of $2.7 billion – over 13 times its EBITDA for the year to March. Airtel Africa gets cash to invest in telecom infrastructure.
AMC allows phone subscribers to send money without using the banking system. The long-run potential is vast: mobile-money transaction volumes in sub-Saharan Africa rose 23% to $490 billion last year. Yet competition is growing. African banks, tech firms and mobile rivals MTN (MTNJ.J) and Vodacom (VODJ.J) are all battling for market share read more . The continent’s unpredictable regulators and economic gyrations also create problems. Not everyone will grab a prize.
Africa’s financial technology buzz is growing. Airtel Africa (AAF.L) on Friday said the Qatar Investment Authority would pay $200 million for a minority stake and a board seat in the telco’s mobile-money unit, AMC. That’s on top of the $300 million Airtel Africa received from selling stakes in the business to private equity firm TPG and Mastercard (MA.N) earlier this year. The deal values AMC at an enterprise value of $2.7 billion – over 13 times its EBITDA for the year to March. Airtel Africa gets cash to invest in telecom infrastructure.
AMC allows phone subscribers to send money without using the banking system. The long-run potential is vast: mobile-money transaction volumes in sub-Saharan Africa rose 23% to $490 billion last year. Yet competition is growing. African banks, tech firms and mobile rivals MTN (MTNJ.J) and Vodacom (VODJ.J) are all battling for market share read more . The continent’s unpredictable regulators and economic gyrations also create problems. Not everyone will grab a prize.
Column - IEA’s roadmap shows difficult journey to net zero: Kemp | Reuters
Column-IEA’s roadmap shows difficult journey to net zero: Kemp | Reuters
Polarised responses to the International Energy Agency report on achieving net zero emissions by 2050 reveal the enormous challenges of the goal and differences about whether it is realistic in the timeframe.
Like the Rorschach inkblot test, reactions to the report reveal more about the reader’s own views on how energy and climate systems change than about the technical contents of the report itself.
Reducing net emissions to zero by mid-century is consistent with the goal of limiting the long-term increase in average global temperatures to 1.5 degrees Celsius (2.7°F) to which global policymakers have committed themselves.
In the last year, an increasing number of governments have pledged to achieve net zero by 2050 or 2060, covering 70% of worldwide emissions (“Net zero by 2050: a roadmap for the global energy sector”, IEA, 2021).
But in the short term, emissions are on a rising trend, notwithstanding a temporary decline during the COVID-19 pandemic, putting the world a long way off track.
Polarised responses to the International Energy Agency report on achieving net zero emissions by 2050 reveal the enormous challenges of the goal and differences about whether it is realistic in the timeframe.
Like the Rorschach inkblot test, reactions to the report reveal more about the reader’s own views on how energy and climate systems change than about the technical contents of the report itself.
Reducing net emissions to zero by mid-century is consistent with the goal of limiting the long-term increase in average global temperatures to 1.5 degrees Celsius (2.7°F) to which global policymakers have committed themselves.
In the last year, an increasing number of governments have pledged to achieve net zero by 2050 or 2060, covering 70% of worldwide emissions (“Net zero by 2050: a roadmap for the global energy sector”, IEA, 2021).
But in the short term, emissions are on a rising trend, notwithstanding a temporary decline during the COVID-19 pandemic, putting the world a long way off track.
OPEC July oil output hits 15-month high as demand recovers, survey shows | Reuters
OPEC July oil output hits 15-month high as demand recovers, survey shows | Reuters
OPEC oil output rose in July to its highest since April 2020, a Reuters survey found, as the group further eased production curbs under a pact with its allies and top exporter Saudi Arabia phased out a voluntary supply cut.
The Organization of the Petroleum Exporting Countries has pumped 26.72 million barrels per day (bpd), the survey found, up 610,000 bpd from June's revised estimate. Output has risen every month since June 2020 apart from in February.
OPEC and allies, known as OPEC+, have been unwinding record output cuts agreed in April 2020, as demand and the economy recover. With oil prices rising to a 2 1/2-year high, OPEC+ decided this month on further hikes from August. read more
"Most forecasts are still predicting robust growth in demand in the second half of the year," said Carsten Fritsch of Commerzbank. "It is easy to believe that the oil market has learnt to live with the virus, in other words."
OPEC oil output rose in July to its highest since April 2020, a Reuters survey found, as the group further eased production curbs under a pact with its allies and top exporter Saudi Arabia phased out a voluntary supply cut.
The Organization of the Petroleum Exporting Countries has pumped 26.72 million barrels per day (bpd), the survey found, up 610,000 bpd from June's revised estimate. Output has risen every month since June 2020 apart from in February.
OPEC and allies, known as OPEC+, have been unwinding record output cuts agreed in April 2020, as demand and the economy recover. With oil prices rising to a 2 1/2-year high, OPEC+ decided this month on further hikes from August. read more
"Most forecasts are still predicting robust growth in demand in the second half of the year," said Carsten Fritsch of Commerzbank. "It is easy to believe that the oil market has learnt to live with the virus, in other words."
Moody's keeps Apicorp's credit outlook stable amid strong profitability
Moody's keeps Apicorp's credit outlook stable amid strong profitability
Moody's affirmed the Arab Petroleum Investments Corporation's long-term issuer and senior unsecured ratings at Aa2 while maintaining a stable outlook for the multilateral development bank.
The agency based its assessment on the Dammam-based bank's "high capital adequacy, supported by a track record of strong profitability, robust asset quality and low levels of nonperforming assets, which balance relatively high leverage."
Apicorp, which is owned by the 10 members of the Organisation of Arab Petroleum Exporting Countries, is also "supported by its very strong liquidity, underpinned by ample availability of liquid resources to cover upcoming net cash outflows, and a well-diversified funding structure," the agency added.
Moody's took into account potential risks the bank faces from operating in countries with elevated geopolitical tensions and high exposure to commodity prices.
Moody's affirmed the Arab Petroleum Investments Corporation's long-term issuer and senior unsecured ratings at Aa2 while maintaining a stable outlook for the multilateral development bank.
The agency based its assessment on the Dammam-based bank's "high capital adequacy, supported by a track record of strong profitability, robust asset quality and low levels of nonperforming assets, which balance relatively high leverage."
Apicorp, which is owned by the 10 members of the Organisation of Arab Petroleum Exporting Countries, is also "supported by its very strong liquidity, underpinned by ample availability of liquid resources to cover upcoming net cash outflows, and a well-diversified funding structure," the agency added.
Moody's took into account potential risks the bank faces from operating in countries with elevated geopolitical tensions and high exposure to commodity prices.
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