Saudi’s Oil Cut Surprise Is All About Squeezing the Market Harder - Bloomberg
Prince Adbulaziz bin Salman, Saudi Arabia’s oil minister, often talks up the virtues of surprising the market, warning short sellers that they risk an “ouching,” as he likes to put it.
The market was caught off guard yesterday. Traders expected the Saudis to extend its unilateral 1 million barrel-a-day output cut by a month into October, but Riyadh announced a three-month rollover instead. Oil popped above $90 in London for the first time since November.
The move was coordinated with Russia, which promised to extend its own 300,000 barrel-a-day export reduction for the same length of time. While the market can be certain Saudi Arabia will make good on its promises, there will be skepticism about the Kremlin’s commitment.
Nevertheless, the move underscored the strength of the alliance between Riyadh and Moscow.
Wednesday, 6 September 2023
Telefonica Deal Tests Europe’s Appetite for Mideast Influence - Bloomberg
Telefonica Deal Tests Europe’s Appetite for Mideast Influence - Bloomberg
A Saudi Arabian state-backed telecom firm is set to splash out $2.5 billion to become the biggest shareholder in Spain’s Telefonica SA, marking the latest instance of Middle Eastern wealth flowing into key European communication assets.
The move by Saudi Telecom Co. will likely draw scrutiny from the Spanish government, which views Telefonica as a company of strategic importance. If it goes through, that would mean two of the biggest European telecom firms will count state-backed Gulf companies as their top shareholders.
The move comes a year after Abu Dhabi’s Emirates Telecommunications Group emerged as Vodafone Group Plc’s biggest shareholder. The UAE firm has been mandated by the government, its main shareholder, to seek opportunistic deals and this year agreed to pay 2.15 billion euros ($2.3 billion) for a controlling stake in PPF Telecom Group’s service and infrastructure assets in Eastern Europe.
STC and Emirates Telecom are among government-backed firms that Gulf states are increasingly empowering to do deals internationally, in sectors ranging from sports to computer games and mining to healthcare.
A Saudi Arabian state-backed telecom firm is set to splash out $2.5 billion to become the biggest shareholder in Spain’s Telefonica SA, marking the latest instance of Middle Eastern wealth flowing into key European communication assets.
The move by Saudi Telecom Co. will likely draw scrutiny from the Spanish government, which views Telefonica as a company of strategic importance. If it goes through, that would mean two of the biggest European telecom firms will count state-backed Gulf companies as their top shareholders.
The move comes a year after Abu Dhabi’s Emirates Telecommunications Group emerged as Vodafone Group Plc’s biggest shareholder. The UAE firm has been mandated by the government, its main shareholder, to seek opportunistic deals and this year agreed to pay 2.15 billion euros ($2.3 billion) for a controlling stake in PPF Telecom Group’s service and infrastructure assets in Eastern Europe.
STC and Emirates Telecom are among government-backed firms that Gulf states are increasingly empowering to do deals internationally, in sectors ranging from sports to computer games and mining to healthcare.
#SaudiArabia's 2023 GDP growth to slow due to longer oil cuts - IMF | Reuters
Saudi Arabia's 2023 GDP growth to slow due to longer oil cuts - IMF | Reuters
Saudi Arabia's overall gross domestic product growth is likely to be lower than the currently forecast 1.9% by the International Monetary Fund, but will remain in positive territory, the IMF's mission chief for the kingdom said on Wednesday.
Non-oil growth is expected to remain robust this year but overall growth will be revised downwards to reflect the latest extension to oil production cuts, Amine Mati told Reuters in an interview.
Saudi Arabia's overall gross domestic product growth is likely to be lower than the currently forecast 1.9% by the International Monetary Fund, but will remain in positive territory, the IMF's mission chief for the kingdom said on Wednesday.
Non-oil growth is expected to remain robust this year but overall growth will be revised downwards to reflect the latest extension to oil production cuts, Amine Mati told Reuters in an interview.
Most Gulf markets in red on economic concerns, falling oil prices | Reuters
Most Gulf markets in red on economic concerns, falling oil prices | Reuters
Most stock markets in the Gulf ended lower on Wednesday after faltering growth in China and Europe heightened concerns about broader economic momentum, while falling oil prices added to worries.
China's exports likely contracted at a slower pace in August, a Reuters poll showed on Tuesday, highlighting that manufacturers remain under pressure after outbound shipments recorded their worst performance since February 2020 last month.
German industrial orders fell more than expected in July, the federal statistics office said.
Saudi Arabia's benchmark index (.TASI) dropped 1%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 2.4% and Riyad Bank (1010.SE) declining 2%.
The International Monetary Fund (IMF) projects Saudi Arabia to swing to a fiscal deficit of 1.2% of GDP in 2023, from a surplus of 2.5% in 2022, it said in its latest assessment report on Wednesday.
Elsewhere, Saudi Telecom Company (STC) (7010.SE) retreated. Spain is analysing STC's purchase of a 9.9% stake in Telefonica (TEF.MC) to ensure its strategic interests are defended, acting economy minister Nadia Calvino said on Wednesday, signalling a potential hurdle.
Dubai's main share index (.DFMGI) finished 0.4% lower, hit by a 1.4% fall in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) lost 0.4%.
Oil prices - which fuel the Gulf economy - reversed course after rising over 1% in the previous session, on a firmer dollar and as investors shrugged off jitters arising from supply cuts from Saudi Arabia and Russia.
The Qatari benchmark (.QSI), however, bucked the trend to close 0.7% higher, led by a 3.4% rise in petrochemical maker Industries Qatar (IQCD.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 1%, driven by a 3.4% jump in Commercial International Bank Egypt (COMI.CA).
Most stock markets in the Gulf ended lower on Wednesday after faltering growth in China and Europe heightened concerns about broader economic momentum, while falling oil prices added to worries.
China's exports likely contracted at a slower pace in August, a Reuters poll showed on Tuesday, highlighting that manufacturers remain under pressure after outbound shipments recorded their worst performance since February 2020 last month.
German industrial orders fell more than expected in July, the federal statistics office said.
Saudi Arabia's benchmark index (.TASI) dropped 1%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 2.4% and Riyad Bank (1010.SE) declining 2%.
The International Monetary Fund (IMF) projects Saudi Arabia to swing to a fiscal deficit of 1.2% of GDP in 2023, from a surplus of 2.5% in 2022, it said in its latest assessment report on Wednesday.
Elsewhere, Saudi Telecom Company (STC) (7010.SE) retreated. Spain is analysing STC's purchase of a 9.9% stake in Telefonica (TEF.MC) to ensure its strategic interests are defended, acting economy minister Nadia Calvino said on Wednesday, signalling a potential hurdle.
Dubai's main share index (.DFMGI) finished 0.4% lower, hit by a 1.4% fall in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) lost 0.4%.
Oil prices - which fuel the Gulf economy - reversed course after rising over 1% in the previous session, on a firmer dollar and as investors shrugged off jitters arising from supply cuts from Saudi Arabia and Russia.
The Qatari benchmark (.QSI), however, bucked the trend to close 0.7% higher, led by a 3.4% rise in petrochemical maker Industries Qatar (IQCD.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 1%, driven by a 3.4% jump in Commercial International Bank Egypt (COMI.CA).
Most Gulf bourses drop in early trade on weaker oil prices | Reuters
Most Gulf bourses drop in early trade on weaker oil prices | Reuters
Most stock markets in the Gulf fell in early trade on Wednesday, tracking oil prices lower as weak services activity data from China revived worries over its economy's recovery.
Crude prices — a key catalyst for the Gulf's financial markets — fell 0.4% after rising over 1% in the previous session with Brent trading at $89.6 a barrel by 0740 GMT.
Investor sentiment was dampened by a private-sector survey on Tuesday that showed China's services activity expanded at the slowest pace in eight months in August, reflecting weak demand in the world's top oil importer.
In Abu Dhabi, the benchmark stock index (.FTFADGI) was down 0.5%, dragged down by a 0.7% loss in conglomerate International Holding Company(IHC.AD) and 0.8% drop in First Abu Dhabi Bank (FAB.AD),the largest lender in the United Arab Emirates.
Dubai's benchmark stock index (.DFMGI) dropped 0.2% in early trade, weighed down by losses in all sectors, with Emaar Properties (EMAR.DU) slipping 0.9% and the Dubai Electricity and Water Authority (DEWAA.DU) dropping 0.8%.
Saudi Arabia's benchmark stock index (.TASI) fell 0.2% with Dr Sulaiman Al-Habib Medical Services (4013.SE) slumping 2.5%.
Among the losers, Etihad Etisalat Co (7020.SE) lost 1.5% and Saudi Telecom Company (STC) (7010.SE) shed 1.4%.
STC, the kingdom's largest telecoms operator acquired a 9.9% stake in Telefonica worth 2.1 billion euros ($2.25 billion), becoming top shareholder in Spanish telecom giant, it reported on Tuesday after market hours.
In Qatar, the benchmark (.QSI) rose 0.7%, with Industries Qatar(IQCD.QA) surging 3.2% and Gulf's largest lender Qatar National Bank (QNBK.QA) gaining 0.6%.
Most stock markets in the Gulf fell in early trade on Wednesday, tracking oil prices lower as weak services activity data from China revived worries over its economy's recovery.
Crude prices — a key catalyst for the Gulf's financial markets — fell 0.4% after rising over 1% in the previous session with Brent trading at $89.6 a barrel by 0740 GMT.
Investor sentiment was dampened by a private-sector survey on Tuesday that showed China's services activity expanded at the slowest pace in eight months in August, reflecting weak demand in the world's top oil importer.
In Abu Dhabi, the benchmark stock index (.FTFADGI) was down 0.5%, dragged down by a 0.7% loss in conglomerate International Holding Company(IHC.AD) and 0.8% drop in First Abu Dhabi Bank (FAB.AD),the largest lender in the United Arab Emirates.
Dubai's benchmark stock index (.DFMGI) dropped 0.2% in early trade, weighed down by losses in all sectors, with Emaar Properties (EMAR.DU) slipping 0.9% and the Dubai Electricity and Water Authority (DEWAA.DU) dropping 0.8%.
Saudi Arabia's benchmark stock index (.TASI) fell 0.2% with Dr Sulaiman Al-Habib Medical Services (4013.SE) slumping 2.5%.
Among the losers, Etihad Etisalat Co (7020.SE) lost 1.5% and Saudi Telecom Company (STC) (7010.SE) shed 1.4%.
STC, the kingdom's largest telecoms operator acquired a 9.9% stake in Telefonica worth 2.1 billion euros ($2.25 billion), becoming top shareholder in Spanish telecom giant, it reported on Tuesday after market hours.
In Qatar, the benchmark (.QSI) rose 0.7%, with Industries Qatar(IQCD.QA) surging 3.2% and Gulf's largest lender Qatar National Bank (QNBK.QA) gaining 0.6%.
Apple Veteran Mujeeb Ijaz’s Battery Firm ONE Draws Investment From #Oman Fund - Bloomberg
Apple Veteran Mujeeb Ijaz’s Battery Firm ONE Draws Investment From Oman Fund - Bloomberg
Oman’s sovereign wealth fund will buy a minority stake in US-based Our Next Energy Inc., which specializes in battery technology for electric vehicles and energy storage, adding to its expanding portfolio of sustainable investments.
Under the agreement, ONE, which was founded by Apple Inc. veteran Mujeeb Ijaz, will explore potential areas of collaboration such as energy storage and battery manufacturing in the Gulf country, the Oman Investment Authority said in a statement.
“Electric vehicles are the future, and we are making sure to be a player in the transformation to ensure the growth and sustainability of the electric vehicles’ market as an environmentally responsible investor,” said Ibrahim Al-Eisri, OIA’s director of private equity.
Oman is investing billions of dollars in green hydrogen as part of its shift to cleaner energy and as the world eventually shifts off oil. As part of that, the OIA is diversifying its overseas deals to optimize benefits for Oman in terms of return on investments and sustainability that fit with the country’s commitment to Net Zero emissions by 2050, it said.
It follows OIA’s investments in Ascend Elements, which recycles lithium-ion batteries, and Group14, which manufactures silicon-carbonate battery materials.
Oman in 2020 combined its two wealth funds into one entity which holds about $17 billion of assets. Last year, the sultanate split the OIA into two units overseeing local and foreign assets.
Oman’s sovereign wealth fund will buy a minority stake in US-based Our Next Energy Inc., which specializes in battery technology for electric vehicles and energy storage, adding to its expanding portfolio of sustainable investments.
Under the agreement, ONE, which was founded by Apple Inc. veteran Mujeeb Ijaz, will explore potential areas of collaboration such as energy storage and battery manufacturing in the Gulf country, the Oman Investment Authority said in a statement.
“Electric vehicles are the future, and we are making sure to be a player in the transformation to ensure the growth and sustainability of the electric vehicles’ market as an environmentally responsible investor,” said Ibrahim Al-Eisri, OIA’s director of private equity.
Oman is investing billions of dollars in green hydrogen as part of its shift to cleaner energy and as the world eventually shifts off oil. As part of that, the OIA is diversifying its overseas deals to optimize benefits for Oman in terms of return on investments and sustainability that fit with the country’s commitment to Net Zero emissions by 2050, it said.
It follows OIA’s investments in Ascend Elements, which recycles lithium-ion batteries, and Group14, which manufactures silicon-carbonate battery materials.
Oman in 2020 combined its two wealth funds into one entity which holds about $17 billion of assets. Last year, the sultanate split the OIA into two units overseeing local and foreign assets.
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