Oil extends rally, rises over 1% on U.S. fuel demand recovery | Reuters
Oil prices rose more than 1% on Wednesday, extending gains for a third session, after U.S. government data showed that fuel demand climbed to its highest since the start of the COVID-19 pandemic.
Brent crude rose $1.20, or 1.7%, to settle at $72.25 a barrel. U.S. West Texas Intermediate (WTI) crude gained 82 cents, or 1.2%, to end at $68.36 a barrel.
U.S. gasoline futures rose 5.5% to settle at $2.3008 a gallon. During the session, prices reached $2.3026 a gallon, their highest since Aug. 12.
The four-week average for U.S. total product supplied, a proxy for fuel demand, soared to nearly 21 million barrels per day, its highest since March 2020, when governments first began to widely impose pandemic-related restrictions, U.S. Energy Information Administration data for last week showed.
Wednesday 25 August 2021
Oil rises on US fuel demand, extends rally | Reuters
Oil rises on US fuel demand, extends rally | Reuters
Oil prices rose about 1% on Wednesday, extending gains for a third session, after U.S. government data showed that fuel demand climbed to its highest since the start of the COVID-19 pandemic.
Brent crude rose 81 cents, or 1.1%, to $71.86 a barrel by 1:26 p.m. EDT (1726 GMT). U.S. West Texas Intermediate (WTI) crude rose 45 cents, or 0.7%, to $67.99 a barrel.
The four-week average for U.S. total product supplied, a proxy for fuel demand, soared to nearly 21 million barrels per day, its highest since March 2020, when governments first began to widely impose pandemic-related restrictions, U.S. Energy Information Administration data showed Wednesday.
U.S. crude inventories fell by 3 million barrels in the last week to 432.6 million barrels, the EIA said, about 1% higher than during the same time in 2019, before the pandemic. Refiners have ramped up production to 92.4% of operable capacity, the highest since late June.
Oil prices rose about 1% on Wednesday, extending gains for a third session, after U.S. government data showed that fuel demand climbed to its highest since the start of the COVID-19 pandemic.
Brent crude rose 81 cents, or 1.1%, to $71.86 a barrel by 1:26 p.m. EDT (1726 GMT). U.S. West Texas Intermediate (WTI) crude rose 45 cents, or 0.7%, to $67.99 a barrel.
The four-week average for U.S. total product supplied, a proxy for fuel demand, soared to nearly 21 million barrels per day, its highest since March 2020, when governments first began to widely impose pandemic-related restrictions, U.S. Energy Information Administration data showed Wednesday.
U.S. crude inventories fell by 3 million barrels in the last week to 432.6 million barrels, the EIA said, about 1% higher than during the same time in 2019, before the pandemic. Refiners have ramped up production to 92.4% of operable capacity, the highest since late June.
MIDEAST STOCKS Most major Gulf bourses fall; oil lifts #Saudi stocks | Reuters
MIDEAST STOCKS Most major Gulf bourses fall; oil lifts Saudi stocks | Reuters
Most major stock markets in the Gulf ended lower on Wednesday, after weak economic data from Germany, Europe's biggest economy.
In Abu Dhabi, the index (.ADI) fell 0.2%, weighed down by a 0.5% fall in Emirates Telecommunications Group (ETISALAT.AD) and a 1% decline in Alpha Dhabi Holdings (ALPHADHABI.AD).
"Investor sentiment remains cautious and exposed to any doubts regarding the (global) economy," said Wael Makarem senior market strategist at Exness.
"They have reacted to the downtrend in the German stock market and the downward movement of the U.S. S&P futures as American markets are expected to open in the negative territory."
German business morale fell for the second month running in August as companies took a dimmer view about the coming months in Europe's largest economy due to rising numbers of COVID-19 cases and supply bottlenecks, a survey showed on Wednesday. read more
Abu Dhabi's most valuable listed company, International Holding (IHC.AD), is seeking investment opportunities in Turkey in sectors including healthcare, industrial and food processing, its chief executive Syed Basar Shueb said. read more
Shares of the conglomerate finished flat.
Dubai's main share index (.DFMGI) eased 0.1%, hit by a 1% drop in blue-chip developer Emaar Properties (EMAR.DU).
After the tremendous rally in global equities, investors are trying to anticipate the next move and lowering exposure ahead of the Federal Reserve's annual economic symposium at Jackson Hole on Friday, Makarem added.
Saudi Arabia's benchmark index (.TASI) added 0.2%, supported by higher oil prices and improving sanitary conditions.
Riyad Bank (1010.SE) gained 2.8% and Banque Saudi Fransi (1050.SE) closed up 3.8%.
Brent crude was up 14 cents, or 0.2%, at $71.19 a barrel by 1028 GMT.
In Qatar, the index (.QSI) dropped 0.3%, snapping a 10-day winning streak, with Commercial Bank (COMB.QA) and Qatar Islamic Bank (QISB.QA) losing 1.2% and 0.6%, respectively.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 1%, as most of the stocks were in positive territory including Commercial International Bank (COMI.CA), up 1.1%.
Most major stock markets in the Gulf ended lower on Wednesday, after weak economic data from Germany, Europe's biggest economy.
In Abu Dhabi, the index (.ADI) fell 0.2%, weighed down by a 0.5% fall in Emirates Telecommunications Group (ETISALAT.AD) and a 1% decline in Alpha Dhabi Holdings (ALPHADHABI.AD).
"Investor sentiment remains cautious and exposed to any doubts regarding the (global) economy," said Wael Makarem senior market strategist at Exness.
"They have reacted to the downtrend in the German stock market and the downward movement of the U.S. S&P futures as American markets are expected to open in the negative territory."
German business morale fell for the second month running in August as companies took a dimmer view about the coming months in Europe's largest economy due to rising numbers of COVID-19 cases and supply bottlenecks, a survey showed on Wednesday. read more
Abu Dhabi's most valuable listed company, International Holding (IHC.AD), is seeking investment opportunities in Turkey in sectors including healthcare, industrial and food processing, its chief executive Syed Basar Shueb said. read more
Shares of the conglomerate finished flat.
Dubai's main share index (.DFMGI) eased 0.1%, hit by a 1% drop in blue-chip developer Emaar Properties (EMAR.DU).
After the tremendous rally in global equities, investors are trying to anticipate the next move and lowering exposure ahead of the Federal Reserve's annual economic symposium at Jackson Hole on Friday, Makarem added.
Saudi Arabia's benchmark index (.TASI) added 0.2%, supported by higher oil prices and improving sanitary conditions.
Riyad Bank (1010.SE) gained 2.8% and Banque Saudi Fransi (1050.SE) closed up 3.8%.
Brent crude was up 14 cents, or 0.2%, at $71.19 a barrel by 1028 GMT.
In Qatar, the index (.QSI) dropped 0.3%, snapping a 10-day winning streak, with Commercial Bank (COMB.QA) and Qatar Islamic Bank (QISB.QA) losing 1.2% and 0.6%, respectively.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 1%, as most of the stocks were in positive territory including Commercial International Bank (COMI.CA), up 1.1%.
#UAE banking sector profitability improves in Q2-2021 | Banking – Gulf News
UAE banking sector profitability improves in Q2-2021 | Banking – Gulf News
The UAE banking sector’s profitability improved in the second quarter on 2021 with the return on equity (RoE) back at Q4-2019 levels as loans and advances increased.
Improved lending was supported by Dubai’s mortgage market that witnesses strong rebound according to analysis of second quarter financial results of top 10 UAE banks by assets by Alvarez & Marsal (A&M).
The RoE has reached its highest level of 10.9 per cent for the first time in the last five quarters with 13.3 per cent in in the fourth quarter of as economic conditions continue to improve. An increase of +2.8 per cent quarter on quarter in operating income coupled with lower impairment charges of -9.3 per cent were the key drivers for growth in profitability.
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| ADCB, CBD, and NBF reported NIM expansion by 10-20 bps, the remaining banks largely remained unchanged. |
Improved lending was supported by Dubai’s mortgage market that witnesses strong rebound according to analysis of second quarter financial results of top 10 UAE banks by assets by Alvarez & Marsal (A&M).
The RoE has reached its highest level of 10.9 per cent for the first time in the last five quarters with 13.3 per cent in in the fourth quarter of as economic conditions continue to improve. An increase of +2.8 per cent quarter on quarter in operating income coupled with lower impairment charges of -9.3 per cent were the key drivers for growth in profitability.
Mubadala Petroleum plans South-East Asia expansion to tap into rising energy demand
Mubadala Petroleum plans South-East Asia expansion to tap into rising energy demand
Abu Dhabi-based Mubadala Petroleum is planning to expand its operations in South-East Asia as it seeks to tap into growing demand for electricity in the region.
"For the moment, ... most of the demand post-Covid-19 or growth rather will happen in the Asean region. You are talking about double-digit growth in demand for electricity," Mubadala Petroleum's chief operating officer Mazin Al Lamki told the Future Energy Asia conference that was held online on Wednesday.
The Association of South-East Asian Nations is a 10-member economic bloc comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Mubadala Petroleum, a unit of Abu Dhabi’s strategic investment firm Mubadala Investment Company ,is actively exploring and developing hydrocarbon assets in South-East Asia.
Abu Dhabi-based Mubadala Petroleum is planning to expand its operations in South-East Asia as it seeks to tap into growing demand for electricity in the region.
"For the moment, ... most of the demand post-Covid-19 or growth rather will happen in the Asean region. You are talking about double-digit growth in demand for electricity," Mubadala Petroleum's chief operating officer Mazin Al Lamki told the Future Energy Asia conference that was held online on Wednesday.
The Association of South-East Asian Nations is a 10-member economic bloc comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Mubadala Petroleum, a unit of Abu Dhabi’s strategic investment firm Mubadala Investment Company ,is actively exploring and developing hydrocarbon assets in South-East Asia.
#UAE News: Cargo-Jet Boom Quickens as IAI Converts Boeing (BA) 777 in #AbuDhabi - Bloomberg
UAE News: Cargo-Jet Boom Quickens as IAI Converts Boeing (BA) 777 in Abu Dhabi - Bloomberg
Booming demand for freighter planes spurred Israel Aerospace Industries Ltd. to announce a new site for converting passenger jets to cargo use in Abu Dhabi, its second such expansion within a week.
IAI will establish two conversion lines for Boeing Co. 777-300ER wide-body planes at a maintenance facility run by Etihad Aviation Group, complementing its own 777 site in Tel Aviv, the companies said Wednesday.
Demand for freighters is surging as coronavirus lockdowns accelerate a shift to online shopping at a time when passenger jets are flying less, limiting access to belly space that usually accommodates most airborne cargo. The pandemic has also prompted the retirement of older planes, swelling the supply of models ripe for conversion, including the relatively efficient twin-engine 777.
“We’ve seen a sharp increase in demand over the past few years and the 777 is going to be the plane for the future, so this will give us the extra capacity we need,” Yossi Melamed, IAI executive vice president and general manager for aviation, said in an interview.
Booming demand for freighter planes spurred Israel Aerospace Industries Ltd. to announce a new site for converting passenger jets to cargo use in Abu Dhabi, its second such expansion within a week.
IAI will establish two conversion lines for Boeing Co. 777-300ER wide-body planes at a maintenance facility run by Etihad Aviation Group, complementing its own 777 site in Tel Aviv, the companies said Wednesday.
Demand for freighters is surging as coronavirus lockdowns accelerate a shift to online shopping at a time when passenger jets are flying less, limiting access to belly space that usually accommodates most airborne cargo. The pandemic has also prompted the retirement of older planes, swelling the supply of models ripe for conversion, including the relatively efficient twin-engine 777.
“We’ve seen a sharp increase in demand over the past few years and the 777 is going to be the plane for the future, so this will give us the extra capacity we need,” Yossi Melamed, IAI executive vice president and general manager for aviation, said in an interview.
Aramco Trading to join Platts oil pricing process in Asia | Reuters
Aramco Trading to join Platts oil pricing process in Asia | Reuters
Aramco Trading Company (ATC) will be participating in S&P Global Platts' price assessment process for crude cargoes in Asia, the price reporting agency said on Wednesday.
Platts said in a notice that it had reviewed the trading arm of the world's top oil exporter Saudi Aramco, and would consider information from ATC in the Asia Market on Close (MOC) price assessment process for Asia crude cargoes.
Some industry players have raised concerns about a potential conflict of interest as ATC is wholly-owned by Saudi Aramco and the Platts Dubai crude market structure is used by the world's top oil exporter to set monthly prices for millions of barrels of Saudi crude sold in Asia.
Others think sellers should share the platform with buyers.
Aramco Trading Company (ATC) will be participating in S&P Global Platts' price assessment process for crude cargoes in Asia, the price reporting agency said on Wednesday.
Platts said in a notice that it had reviewed the trading arm of the world's top oil exporter Saudi Aramco, and would consider information from ATC in the Asia Market on Close (MOC) price assessment process for Asia crude cargoes.
Some industry players have raised concerns about a potential conflict of interest as ATC is wholly-owned by Saudi Aramco and the Platts Dubai crude market structure is used by the world's top oil exporter to set monthly prices for millions of barrels of Saudi crude sold in Asia.
Others think sellers should share the platform with buyers.
Israel Aerospace, Etihad to open aircraft conversion site in #AbuDhabi | Reuters
Israel Aerospace, Etihad to open aircraft conversion site in Abu Dhabi | Reuters
Israel Aerospace Industries (IAI) (ISRAI.UL) said on Wednesday it signed an agreement with Etihad Engineering to establish a facility in Abu Dhabi that will convert Boeing 777-300ER passenger planes into cargo aircraft.
The new facility, which will operate as the company's maintenance centre in Abu Dhabi, aims to meet the growing demand for large cargo jets.
"Not only do we see the demand, but we view it as a greener, more profitable, highly innovative solution for our airline customers, and an excellent way to drive value for our business," Tony Douglas, chief executive of Etihad Aviation Group, said in a statement.
Demand for cargo plane conversions has been on the rise with the increase in ecommerce and the decline in value of used planes during the COVID-19 pandemic.
Israel Aerospace Industries (IAI) (ISRAI.UL) said on Wednesday it signed an agreement with Etihad Engineering to establish a facility in Abu Dhabi that will convert Boeing 777-300ER passenger planes into cargo aircraft.
The new facility, which will operate as the company's maintenance centre in Abu Dhabi, aims to meet the growing demand for large cargo jets.
"Not only do we see the demand, but we view it as a greener, more profitable, highly innovative solution for our airline customers, and an excellent way to drive value for our business," Tony Douglas, chief executive of Etihad Aviation Group, said in a statement.
Demand for cargo plane conversions has been on the rise with the increase in ecommerce and the decline in value of used planes during the COVID-19 pandemic.
MIDEAST STOCKS Most major Gulf bourses fall in early trade; #Saudi gains | Reuters
MIDEAST STOCKS Most major Gulf bourses fall in early trade; Saudi gains | Reuters
Most major stock markets in the Gulf retreated in early trade on Wednesday, a day after registering moderate gains, although the Saudi index extended gains from the previous session.
Saudi Arabia's benchmark index (.TASI) added 0.2%, with petrochemical maker Saudi Basic Industries (2010.SE) gaining 0.8% and Saudi Telecom Co (7010.SE) up 0.6%.
The value of Saudi Arabia's oil exports in June increased 123% to 61.5 billion riyals ($16.4 billion) from a year earlier, while non-oil exports rose by around 41%, official data showed on Tuesday. read more
China remained Saudi Arabia's main trading partner, with exports there amounting to nearly 20% of total exports.
However, the energy index (.TENI) eased 0.1%.
Brent crude futures dropped 9 cents, or 0.1%, to $70.96 a barrel by 0639 GMT, after a two-day rally on supply issues.
In Abu Dhabi, the index (.ADI) fell 0.2%, hit by a 0.3% drop in conglomerate International Holding Co (IHC) (IHC.AD) and a 0.7% decline in Alpha Dhabi Holding (ALPHADHABI.AD).
IHC, Abu Dhabi's most valuable listed company, is considering acquisitions across several sectors totalling a few billion dollars, including a real estate developer in Abu Dhabi, its chief executive Syed Basar Shueb told Reuters. read more
Dubai's main share index (.DFMGI) lost 0.4%, weighed down by a 1.2% fall in sharia-compliant lender Dubai Islamic Bank (DISB.DU) and blue-chip developer Emaar Properties (EMAR.DU).
The Qatari index (.QSI) lost 0.2%, on course to end a 10-day winning streak. Qatar Islamic Bank (QISB.QA) and Commercial Bank (COMB.QA) declined 0.7% and 1%, respectively.
Most major stock markets in the Gulf retreated in early trade on Wednesday, a day after registering moderate gains, although the Saudi index extended gains from the previous session.
Saudi Arabia's benchmark index (.TASI) added 0.2%, with petrochemical maker Saudi Basic Industries (2010.SE) gaining 0.8% and Saudi Telecom Co (7010.SE) up 0.6%.
The value of Saudi Arabia's oil exports in June increased 123% to 61.5 billion riyals ($16.4 billion) from a year earlier, while non-oil exports rose by around 41%, official data showed on Tuesday. read more
China remained Saudi Arabia's main trading partner, with exports there amounting to nearly 20% of total exports.
However, the energy index (.TENI) eased 0.1%.
Brent crude futures dropped 9 cents, or 0.1%, to $70.96 a barrel by 0639 GMT, after a two-day rally on supply issues.
In Abu Dhabi, the index (.ADI) fell 0.2%, hit by a 0.3% drop in conglomerate International Holding Co (IHC) (IHC.AD) and a 0.7% decline in Alpha Dhabi Holding (ALPHADHABI.AD).
IHC, Abu Dhabi's most valuable listed company, is considering acquisitions across several sectors totalling a few billion dollars, including a real estate developer in Abu Dhabi, its chief executive Syed Basar Shueb told Reuters. read more
Dubai's main share index (.DFMGI) lost 0.4%, weighed down by a 1.2% fall in sharia-compliant lender Dubai Islamic Bank (DISB.DU) and blue-chip developer Emaar Properties (EMAR.DU).
The Qatari index (.QSI) lost 0.2%, on course to end a 10-day winning streak. Qatar Islamic Bank (QISB.QA) and Commercial Bank (COMB.QA) declined 0.7% and 1%, respectively.
#AbuDhabi’s Mubadala and CBC-led consortium buys into Korean medical aesthetics company | Markets – Gulf News
Abu Dhabi’s Mubadala and CBC-led consortium buys into Korean medical aesthetics company | Markets – Gulf News
A consortium led by CBC Group has bought 46.9 per cent in South Korea’s Hugel from Bain Capital. The market capitalization of Hugel is approximately $2.5 billion.
Members of the consortium include Singapore’s CBC, Asia’s largest healthcare-dedicated investment firm; Abu Dhabi’s Mubadala Investment Company, GS Holdings of South Korea and IMM Investment, an investment firm based in Korea.
Established in 2001, Hugel is the market leader in the botulinum toxin and hyaluronic acid fillers space in Korea and also develops, manufactures and distributes cosmeceutical products. In October 2020, its injectable type A botulinum toxin officially received marketing approval from the National Medical Products Administration of China, which made Hugel the fourth type A botulinum toxin product manufacturer approved for launch in China and the first of its kind from South Korea.
Hugel expects to obtain marketing approvals in Europe and the US in the next 12 months.
“This opportunity cements Mubadala Life Sciences’ entry into Asia alongside our colleagues from the Mubadala’s China Investment Program team, who already have an established presence in China and a long-standing relationship with CBC,” said Camilla Macapili Languille, Head of Life Sciences at Mubadala.
Founded in 2014, CBC has focused on control-oriented acquisitions and platform-building investments in leading Asian businesses.
A consortium led by CBC Group has bought 46.9 per cent in South Korea’s Hugel from Bain Capital. The market capitalization of Hugel is approximately $2.5 billion.
Members of the consortium include Singapore’s CBC, Asia’s largest healthcare-dedicated investment firm; Abu Dhabi’s Mubadala Investment Company, GS Holdings of South Korea and IMM Investment, an investment firm based in Korea.
Established in 2001, Hugel is the market leader in the botulinum toxin and hyaluronic acid fillers space in Korea and also develops, manufactures and distributes cosmeceutical products. In October 2020, its injectable type A botulinum toxin officially received marketing approval from the National Medical Products Administration of China, which made Hugel the fourth type A botulinum toxin product manufacturer approved for launch in China and the first of its kind from South Korea.
Hugel expects to obtain marketing approvals in Europe and the US in the next 12 months.
“This opportunity cements Mubadala Life Sciences’ entry into Asia alongside our colleagues from the Mubadala’s China Investment Program team, who already have an established presence in China and a long-standing relationship with CBC,” said Camilla Macapili Languille, Head of Life Sciences at Mubadala.
Founded in 2014, CBC has focused on control-oriented acquisitions and platform-building investments in leading Asian businesses.
Oil Holds Onto Stellar Two-Day Rally With Virus Impact in Focus - Bloomberg
Oil Holds Onto Stellar Two-Day Rally With Virus Impact in Focus - Bloomberg
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#Dubai's GGICO to restructure finances after losses hit over 90% of capital | ZAWYA MENA Edition
Dubai's GGICO to restructure finances after losses hit over 90% of capital | ZAWYA MENA Edition
The board of directors of Dubai-listed Gulf General Investment Company (GGICO) has agreed to proceed with the plan to restructure the company’s finances, following losses that hit more than 90 percent of the capital.
The move will include the appointment of a financial advisor that will review the firm’s assets, liabilities and cash flows, so that a financial recovery plan can be drawn up, a bourse filing to the Dubai Financial Market (DFM) said on Wednesday.
“The financial advisor will be responsible for studying the economic and financial situation of the company,” the statement said.
The company, which has investments in real estate, retail, hospitality, manufacturing and financial services sectors, posted accumulated losses amounting to 1.687 billion dirhams ($459 million) during the first three months of the year.
The losses incurred were a result of impairment of assets due to the “challenging market situation” and represent more than 94 percent of the share capital, GGICO had said last May.
The board of directors of Dubai-listed Gulf General Investment Company (GGICO) has agreed to proceed with the plan to restructure the company’s finances, following losses that hit more than 90 percent of the capital.
The move will include the appointment of a financial advisor that will review the firm’s assets, liabilities and cash flows, so that a financial recovery plan can be drawn up, a bourse filing to the Dubai Financial Market (DFM) said on Wednesday.
“The financial advisor will be responsible for studying the economic and financial situation of the company,” the statement said.
The company, which has investments in real estate, retail, hospitality, manufacturing and financial services sectors, posted accumulated losses amounting to 1.687 billion dirhams ($459 million) during the first three months of the year.
The losses incurred were a result of impairment of assets due to the “challenging market situation” and represent more than 94 percent of the share capital, GGICO had said last May.
Oil edge lower after two-day rally on supply issues | Reuters
Oil edge lower after two-day rally on supply issues | Reuters
Oil prices nudged lower on Wednesday, taking a breather after a strong rally this week spurred by the loss of a quarter of Mexico's production and signs that China, the world's biggest importer, has curbed a recent coronavirus outbreak.
Brent crude futures dropped 9 cents, or 0.1%, to $70.96 a barrel by 0639 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 19 cents, or 0.3%, to $67.35.
Both benchmark contracts rose by about 8% over the previous two days, erasing most of the slump from a seven-day losing streak.
"A second consecutive day of price rally in the crude market had also spurred some profit-taking, while American Petroleum Institute data showing a less-than-expected decline in U.S. oil inventories last week added to the downward pressure," Vandana Hari said in a note to clients.
Oil prices nudged lower on Wednesday, taking a breather after a strong rally this week spurred by the loss of a quarter of Mexico's production and signs that China, the world's biggest importer, has curbed a recent coronavirus outbreak.
Brent crude futures dropped 9 cents, or 0.1%, to $70.96 a barrel by 0639 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 19 cents, or 0.3%, to $67.35.
Both benchmark contracts rose by about 8% over the previous two days, erasing most of the slump from a seven-day losing streak.
"A second consecutive day of price rally in the crude market had also spurred some profit-taking, while American Petroleum Institute data showing a less-than-expected decline in U.S. oil inventories last week added to the downward pressure," Vandana Hari said in a note to clients.