Economy
GlobalFoundaries aims for $ 25 billion from listing
Abu Dhabi (Reuters) – Target Global Foundries Chip Industry Co.Owned by Mubadala Investment Company, its initial public offering in the United States was estimated at about $ 25 billion.
In a revelation to the stock market on Tuesday, Global Foundries set a price range of $ 42 to $ 47 per share to list on the stock exchange. The maximum limit indicates that the company aims to raise about $ 2.6 billion.
In August, Reuters announced that it had applied for an initial public offering in New York, valued at about $ 25 billion.
This IPO, one of the most anticipated, is expected to reach the record year of IPOs, with many big names such as Robinhood Markets, Coin Base Global and Roblox Corp benefiting from the previous capital market boom from 2021.
With the introduction of electric car maker Rivian’s stake, Global Foundries is expected to top the list of unusually crowded IPOs later this year.
In its latest revelations, Global Foundries reported a 56 percent increase in third-quarter revenue, driven by global demand for chips.
The shortage of global semiconductor chips has forced the world’s largest chip makers to increase production worldwide as a result of the late production activities of the Covid-19 epidemic.
In September, Intel CEO Pat Gelsinger said the US company plans to invest up to $ 95 billion in Europe over the next 10 years.
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Economy
A strong dollar is powerless against oil… Brent is “around the corner” from 100
Brent crude breaks above $97 level
At a steady pace, oil prices continued to rise in early Asian trade on Thursday after hitting a 2023 high in the previous session, as fears of global supply shortages worsened in light of a sharp decline in US crude inventories. Reached important milestones.
U.S. crude inventories fell by about 2.2 million barrels last week to 416.3 million barrels, according to government data. With a decline of about 320,000 barrels, the decline significantly exceeded analysts’ expectations, according to a Reuters poll.
This comes after Saudi Arabia and Russia announced voluntary production cuts of 1.3 million barrels per day until the end of the year.
Price action
Brent crude remained close to $100 a barrel as it traded above $97 a barrel in Asia on Thursday, up 0.9 percent, its highest level since last November.
U.S. West Texas Intermediate crude futures rose more than a dollar to $94.70, their highest level since August 2022, and U.S. crude rose 3.6 percent after settlement on Wednesday, its biggest gain since early May.
Inventories in Cushing, Oklahoma — a delivery point for U.S. crude oil — fell below 22 million barrels, the lowest level since July 2022 and near the operational minimum.
A strong dollar has failed to deter oil
Amrita Sen, co-founder and head of research at Energy Aspects, said: “What I fear in this market is that we’ve made a huge reduction in inventories… Right now, what’s happening in the U.S. — (the drought) according to Bloomberg, inventories in Cushing).
Will oil prices hit $100 soon?
West Texas Intermediate crude has risen by about a third since late June and is on track for its biggest quarterly gain since early 2022, fueling inflation and posing new problems for central banks.
Earlier this month, OPEC predicted a shortfall of up to 3 million barrels per day of crude oil in the fourth quarter. With demand in the United States and China proving resilient, many in the market now see $100 oil as inevitable, despite a strengthening dollar and lingering worries about rising global interest rates.
The dollar rose to its highest level in ten months against a basket of major currencies on Wednesday, sending the euro to its lowest level in nine months and raising the possibility of intervention to support the yen.
The dollar index, which measures the currency’s performance against a basket of currencies, rose to 106.7, its highest since last November 30.
In an exclusive interview with Sky News Arabia, Ole Hansen, Head of Commodity Strategy at Saxo Bank, said our expectations for oil prices were revised higher after strong support prices received from the Middle East based on continued production cuts.
“OPEC expects a large supply shortfall in the last quarter of the year, Saudi Arabia maintains voluntary cuts, which will keep markets tight in the coming months, so the risk of oil prices reaching $100 remains.” In Hansen’s words.
Can the world do without oil?
However, Ole Hansen, head of commodity strategy at Saxo Bank, noted that some countries in the world are headed for stagnation, meaning demand prospects in 2024 will be challenging.
He emphasized that OPEC member countries are well aware that higher oil prices will reduce demand and that this is not in their interest.
For his part, Warren Patterson, Head of Commodity Strategy at ING Groep NV, said: “It will be a while before Brent crude oil exceeds the $100 per barrel level (…) However, we believe that the breach of these levels will be relatively short-lived,” OPEC+ said in a statement. There will be more pressure to ease the cuts.”
It’s worth noting that stocks in Cushing have fallen for seven consecutive weeks, and many traders believe they are already at a low enough level to allow tanks to function normally. Buying spot supplies from storage centers is also expensive, and the price of U.S. crude has risen significantly for foreign buyers outside the U.S.
Madonier: Oil will be an important part of the global energy mix
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Economy
European shares fall for fifth straight day, real estate shares fall, Reuters
(Reuters) – European stocks fell for a fifth straight day on Wednesday as negative reports from brokerages on property owners in Britain hurt real estate stocks, while recent moves weighed on shares of Dutch insurers and Swiss bank UBS. .
The European index fell 0.2 percent, closing at its lowest level in six months.
The European real estate sector index fell 2 percent.
Land Securities, British Land and Derwent London shares fell between 3.4 percent and 4.3 percent.
Overall, market sentiment remained pessimistic with investors on the likelihood of major central banks keeping interest rates high for longer, and a slump in China’s real estate sector added to negative sentiment.
The STOXX 600 index appeared to be on track for its first quarterly loss in four years, while the German index turned out to be the worst performer at the regional level.
Meanwhile, shares of Dutch insurers took a hit after court rulings raised the prospect of huge damage claims in a long-running battle over investment-linked products.
NN shares fell 18.8 percent, while ASR shares fell 14.2 percent.
Shares of UBS Bank fell about three percent after the U.S. Justice Department stepped up scrutiny of cases of suspected noncompliance with rules that helped clients from Russia avoid sanctions.
H&M shares, on the other hand, rose 3.4 percent after the world’s second-largest clothing retailer reported a slightly larger-than-expected increase in its quarterly profit, supported by cost cuts.
(Prepared by Rehab Ala for Arabic Bulletin)
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Economy
Saudi Aramco to enter into new acquisition deal in China
Saudi Aramco continues its strategy of expanding petrochemical investments as part of a plan to convert 4 million barrels of oil per day into chemical products.
The Saudi oil giant has made China one of the most important markets it aims to expand into by entering into partnership or acquisition deals in the oil refining and petrochemical sector.
In this context, Saudi Aramco, one of the world’s leading integrated companies in the field of energy and petrochemicals, and Jiangsu Eastern Xinghong Company Limited (Eastern Xinghong), on Wednesday, September 27 (2023), signed a framework cooperation agreement to enter. In advising on potential acquisitions.
Acquisition Agreement Targets – Step Report Seen by Special Energy Platform – Acquisition of 10% strategic stake in Jiangsu Xinghong Petrochemical Industry Group Co., Ltd. (Jinghong Petrochemical), a wholly-owned subsidiary of East Jinggang, the deal is subject to necessary assessments and approvals.
Big investments
Xinghong Petrochemical Company owns and operates an integrated refining and petrochemical complex with a production capacity of 320 million barrels per day, as well as a methanol-to-olefins and derivatives complex.
Through its wholly-owned subsidiaries, it also has a facility for the production of refined terephthalic acid, and its facilities are located in the Petrochemical Industrial Park in Jiangsu Province.
Under the framework cooperation agreement, Saudi Aramco intends to supply crude oil and other raw materials to Shenghong Petrochemical Company. Saudi Oil Company and Shenghong Petrochemical Company intend to cooperate on a major expansion project, subject to the results of consultations between the two countries. Conclusion of parties and binding final agreements.
The new deal comes two months after Saudi Aramco closed a deal to buy a 10% stake in Rongsheng Petrochemical Co. for 24.6 billion Chinese yuan (3.4 billion US dollars).
The deal includes the export of 480,000 barrels per day of Arabian crude oil to the largest integrated refining and petrochemical complex in China owned by Zhejiang Petroleum and Petrochemical Co., Ltd., a subsidiary of Rongsheng.
Energy security in China
Mohammed Yahya Al-Qahdani, Saudi Arabia’s head of refining, chemicals and marketing, said, “Through our partnership with East China Sea, we look forward to providing Aramco with the reliable energy needed for growth, development and the long-term sustainability of China’s energy security.
He added: “The signing of the structural cooperation agreement with Saudi Aramco is an important step in our strategy in the field of refining, chemicals and marketing, which aims to increase the company’s ability to convert Arab crude oil into chemicals. Our vision to expand into the Chinese market, one of the world’s leading markets in the energy sector, is to “make China We consider ourselves an important partner today and for decades to come.”
Eastern Singhong, listed on the Shenzhen Stock Exchange, is one of the leading integrated companies in the energy and chemical industry and is keen to adopt advanced technologies in its new businesses in the energy and materials sectors.
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