Investment

Saudi ex-energy minister bounces back as investment chief – National Post

Published

5 years ago

February 25, 2020

RIYADH — The man sacked as Saudi Arabia’s energy minister in September has been tapped to head a new investment ministry, in a cabinet reshuffle announced on Tuesday that also created ministries for tourism and sports.

Khalid al-Falih, who previously chaired state oil company Saudi Aramco and oversaw more than half the economy of the world’s top oil exporter, was widely seen as having fallen out of favor when he was removed from the energy ministry.

Attracting billions of dollars in foreign investment is key to ambitious plans championed by de facto ruler Crown Prince Mohammed bin Salman to end the economy’s dependence on crude exports and open up its long-cloistered society.

According to royal orders published in state media, Falih’s new ministry replaces the Saudi Arabian General Investment Authority (SAGIA), which had been responsible for issuing investment licenses to foreign companies but did not control other key regulations.

“Falih’s return is a small surprise,” said Hasnain Malik, a managing director at Tellimer. “More important is the upgrade of the General Investment Authority to a full ministry, which underlines the importance of private sector home-grown and foreign direct investment (FDI) for the future of Saudi.”

It was not immediately clear if the restructuring would expand investment entity’s authorities. As energy minister, Falih had one of the highest international profiles of any Saudi official.

FDI rose to $3.50 billion in the first nine months of 2019 from $3.18 billion a year earlier, but still lags behind Riyadh’s ambitions.

The cornerstone of Prince Mohammed’s plans to open the gates of foreign capital was supposed to be the initial public offering of Aramco, but many global investors steered clear when the oil giant debuted on the Riyadh bourse in December.

Falih was privately opposed and had lobbied against it, fearing he would have to step down as chairman of the company, sources close to the matter told Reuters last year.

He was ultimately removed from that position three months before the listing, replaced by Yasir al-Rumayyan, governor of the kingdom’s sovereign wealth fund PIF.

Other royal orders on Tuesday elevated commissions into ministries for tourism and sports, identified by Riyadh as two big growth areas. Ahmed al-Khateeb and Prince Abdulaziz bin Turki al Faisal were named ministers respectively.

The civil service ministry, which is responsible for millions of public employees, was also merged into the labor ministry.

The media minister was removed and the file given to Commerce Minister Majid al-Qasabi, while Housing Minister Majid al-Hoqail was handed additional responsibility for municipalities and rural affairs. (Additional reporting by Nafisa Eltahir and Davide Barbuscia in Dubai; editing by John Stonestreet and Ed Osmond)

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Economy

S&P/TSX composite down more than 200 points, U.S. stock markets also fall

Published

1 week ago

September 6, 2024

Anne Joseph

TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.

The S&P/TSX composite index was down 239.24 points at 22,749.04.

In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.

The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.

The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.

The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.

This report by The Canadian Press was first published Sept. 6, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets also higher

Published

3 weeks ago

August 29, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.

The S&P/TSX composite index was up 171.41 points at 23,298.39.

In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.

The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.

The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.

The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.

This report by The Canadian Press was first published Aug. 29, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Investment

Crypto Market Bloodbath Amid Broader Economic Concerns

Published

1 month ago

August 5, 2024

Harry Miller

The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.

The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.

Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.

The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.

Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.

Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.

Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.

Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.

The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.