Investment
Saudi Arabia considering investing in ‘Made in Italy’ fund
MILAN, Sept 4 (Reuters) – Italy and Saudi Arabia are in talks about a potential Saudi investment in Rome’s new strategic fund, Italy’s Industry Minister Adolfo Urso said on Monday, as the two signed a deal to forge closer economic relations, particularly in energy.
The “Made in Italy” fund, which was approved in May, will have an initial endowment of 700 million euros ($756 million) in 2023 and an additional 300 million next year in state cash.
Sources have previously told Reuters that Italy’s Prime Minister Giorgia Meloni is courting sovereign wealth funds to increase the fund’s firepower. The scheme would support Italian companies operating in key supply chains, while also aiming to boost procurement and reuse of “critical raw materials”.
The fund would help support Italian manufacturing and make the country less reliant on external suppliers, but Meloni’s coalition government is battling to contain a budget deficit.
Meloni has pursued tighter ties with Gulf countries since taking office last October, shrugging off the human rights concerns of previous governments.
Rome and Riyadh said on Monday they had signed an agreement to strengthen economic ties and boost investments in areas of strategic importance such as energy, where possible M&A deals were discussed, Urso told reporters in Milan.
“We have to start from the premise that the world is very different from the values to which we remain firmly committed,” Urso said at an investment event.
Saudi Arabia will focus on energy, sustainability, supply chains and sport to expand its presence in Italy, Investment Minister Khalid al-Falih said at the same event.
The Kingdom, which has invested in sports such as soccer in other countries, already hosts the Italian Super Cup event, but has no direct investment in a major soccer club in Italy.
ENERGY HUB
Under Meloni, Italy sees itself playing an increasing role in linking the European Union with energy suppliers in the Middle East and North Africa as the EU cuts its with Russia.
The Memorandum of Understanding (MoU) with Saudi, seen by Reuters, lasts two years and will automatically be renewed for a further 24 months unless one of the parties notifies the other of its intention to quit six months before the expiry date.
Italian exports to Saudi Arabia totalled just over 4 billion euros in 2022, much from manufacturing, while imports totalled more than 7.4 billion euros, the bulk from oil products.
Also at the Milan event, leading Italian energy company Eni (ENI.MI) and Saudi Acwa Power (2082.SE) agreed to jointly develop a green hydrogen project in the Middle East and Africa.
Acwa Power also struck a separate MoU with regional utility A2A (A2.MI) and electrodes maker De Nora (DNR.MI) to cooperate on green hydrogen.
Saudi Arabia has a well advanced project dubbed NEOM to produce green hydrogen at home while Italy so far has not developed yet any plan to produce it in significant quantity.
($1 = 0.9267 euros)
Additional reporting by Giuseppe Fonte in Rome; Writing by Keith Weir; Editing by Angus MacSwan and Alexander Smith
Economy
S&P/TSX composite down more than 200 points, U.S. stock markets also fall
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)
The Canadian Press. All rights reserved.
Economy
S&P/TSX composite up more than 150 points, U.S. stock markets also higher
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)
The Canadian Press. All rights reserved.
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