Jan 27 (Reuters) – Lucid Group’s (LCID.O) shares surged 43% on Friday, paring gains after doubling on market speculation that Saudi Arabia’s Public Investment Fund (PIF) wanted to buy out the electric vehicle maker.
The speculation originated from an “uncooked” alert attributed to deals website Betaville, using its term for market gossip. Lucid was the sixth-most traded stock on U.S. exchanges and third top mover on the Nasdaq mid-afternoon.
The PIF, the sovereign wealth fund that owns more than 65% of Newark, California-based Lucid, did not immediately respond to a request for comment. Lucid declined to comment.
In 2018, PIF was interested in taking Tesla private, but the deal did not materialize. Tesla chief Elon Musk is under trial for allegedly misleading investors with his tweet “funding secured” for taking the company private.
Lucid has been struggling to deliver its sleek Air luxury EVs after delivering 4,369 vehicles last year.
With Tesla’s price cuts, money-losing U.S. startups like Rivian Automotive Inc (RIVN.O) and Lucid will find it difficult to grab share in an industry competing for shrinking consumer wallets.
Lucid’s short interest as a percentage of its total float is around 37% versus only 3.5% for Tesla. Still, in dollar amounts, Lucid’s short interest totals $1.6 billion, versus $15.01 billion of Musk’s car maker.
Short sellers dealt a mark-to-market loss of $685 million with Lucid’s shares spike on Friday, analytics firm S3 Partners added. Losses, however, only materialize if short sellers close out their positions.
“With Lucid short sellers’ mark-to-market losses climbing, we should expect short covering to begin in earnest after today’s short-side blood bath,” said Ihor Dusaniwsky, managing director of S3, adding it has become a popular trading position.
One long-short fund manager who had no previous exposure to Lucid said it decided to short it as this person believes the spike was solely based on rumors.
Reporting by Carolina Mandl, in New York, Chavi Mehta in Bengaluru and Hyun Joo Jin; Editing by Maju Samuel and Josie Kao
Our Standards: The Thomson Reuters Trust Principles.
DAVOS, Switzerland, Jan 16 (Reuters) – Big oil firms came under pressure at the start of the World Economic Forum (WEF) from activists who accused them of hijacking the climate debate, while a Greta Thunberg-sponsored “cease and desist” campaign gained support on social media.
Major energy firms including BP (BP.L), Chevron (CVX.N) and Saudi Aramco (2222.SE) are among the 1,500 business leaders gathering for the annual meeting in the Swiss resort of Davos, where global threats including climate change are on the agenda.
“We are demanding concrete and real climate action,” said Nicolas Siegrist, the 26-year-old organiser of the protest who also heads the Young Socialists party in Switzerland.
The annual meeting of global business and political leaders opens in Davos on Monday.
“They will be in the same room with state leaders and they will push for their interests,” Siegrist said of the involvement of energy companies during a demonstration attended by several hundred people on Sunday.
The oil and gas industry has said that it needs to be part of the energy transition as fossil fuels will continue to play a major role in the world’s energy mix as countries shift to low carbon economies.
[1/5] Climate activists display a banner during a protest ahead of the World Economic Forum (WEF) 2023 in the Alpine resort of Davos, Switzerland, January 15, 2023. REUTERS/Arnd Wiegmann
On Monday, a social media campaign added to the pressure on oil and gas companies, by promoting a “cease and desist” notice sponsored by climate activists Thunberg, Vanessa Nakate and Luisa Neubauer, through the non-profit website Avaaz.
It demands energy company CEOs “immediately stop opening any new oil, gas, or coal extraction sites, and stop blocking the clean energy transition we all so urgently need”, and threatens legal action and more protests if they fail to comply.
The campaign, which had been signed by more than 660,000 people, had almost 200,000 shares on Monday morning.
Sumant Sinha, who heads one of India’s largest renewable energy firms, said it would be good to include big oil companies in the transition debate as they have a vital role to play.
“If oil people are part of these conversations to the extent that they are also committing to change then by all means. It is better to get them inside the tent than to have them outside the tent,” Sinha, chairman and CEO of ReNew Power, told Reuters, saying that inclusion should not lead to “sabotage”.
Rising interest rates have made it harder for renewable energy developments to attract financing, giving traditional players with deep pockets a competitive advantage.
As delegates began to arrive in Davos, Debt for Climate activists protested at a private airport in eastern Switzerland, which they said would be used by some WEF attendees, and issued a statement calling for foreign debts of poorer countries to be cancelled in order to accelerate the global energy transition.
Additional reporting by Kathryn Lurie; Editing by Alexander Smith and Alex Richardson
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Xi says summit with Gulf, Arab League is ‘milestone’
U.S. wary of growing Chinese influence in Arab world
Arabs defy U.S. pressure to limit China ties, cut off Russia
Summits showcase Saudi Crown Prince Mohammed as key leader
RIYADH, Dec 9 (Reuters) – President Xi Jinping told Gulf Arab leaders on Friday that China would work to buy oil and gas in yuan, a move that would support Beijing’s goal to establish its currency internationally and weaken the U.S. dollar’s grip on world trade.
Xi was speaking in Saudi Arabia where Crown Prince Mohammed bin Salman hosted two “milestone” Arab summits with the Chinese leader which showcased the powerful prince’s regional heft as he courts partnerships beyond close historic ties with the West.
Top oil exporter Saudi Arabia and economic giant China both sent strong messages during Xi’s visit on “non-interference” at a time when Riyadh’s relationship with Washington has been tested over human rights, energy policy and Russia.
Any move by Saudi Arabia to ditch the dollar in its oil trade would be a seismic political move, which Riyadh had previously threatened in the face of possible U.S. legislation exposing OPEC members to antitrust lawsuits.
China’s growing influence in the Gulf has unnerved the United States. Deepening economic ties were touted during Xi’s visit, where he was greeted with pomp and ceremony and on Friday met with Gulf states and attended a wider summit with leaders of Arab League countries spanning the Gulf, Levant and Africa.
At the start of Friday’s talks, Prince Mohammed heralded a “historic new phase of relations with China”, a sharp contrast with the awkward U.S.-Saudi meetings five months ago when President Joe Biden attended a smaller Arab summit in Riyadh.
Asked about his country’s relations with Washington in light of the warmth shown to Xi, Foreign Minister Prince Faisal bin Farhan Al Saud said Saudi Arabia would continue to work with all its partners. “We don’t see this as a zero sum game,” he said.
“We do not believe in polarisation or in choosing between sides,” the prince told a news conference after the talks.
Though Saudi Arabia and China signed several strategic and economic partnership deals, analysts said relations would remain anchored mostly by energy interests, though Chinese firms have made forays into technology and infrastructure sectors.
“Energy concerns will remain front and centre of relations,” Robert Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington, told Reuters.
[1/4] Saudi Crown Prince Mohammed Bin Salman stands with Chinese President Xi Jinping in Riyadh, Saudi Arabia December 8, 2022. Saudi Press Agency/Handout via REUTERS
“The Chinese and Saudi governments will also be looking to support their national champions and other private sector actors to move forward with trade and investment deals. There will be more cooperation on the tech side of things too, prompting familiar concerns from Washington.”
Saudi Arabia agreed a memorandum of understanding with Huawei this week on cloud computing and building high-tech complexes in Saudi cities. The Chinese tech giant has participated in building 5G networks in Gulf states despite U.S. concerns over a possible security risk in using its technology.
NATURAL PARTNERS
Saudi Arabia and its Gulf allies have defied U.S. pressure to limit dealings with China and break with fellow OPEC+ oil producer Russia over its invasion of Ukraine, as they try to navigate a polarised world order with an eye on national economic and security interests.
Riyadh is a top oil supplier to China and the two countries reaffirmed in a joint statement the importance of global market stability and energy collaboration, while striving to boost non-oil trade and enhance cooperation in peaceful nuclear power
Xi said Beijing would continue to import large quantities of oil from Gulf Arab countries and expand imports of liquefied natural gas, adding that their countries were natural partners who would cooperate further in upstream oil and gas development.
China would also “make full use of the Shanghai Petroleum and National Gas Exchange as a platform to carry out yuan settlement of oil and gas trade,” he said.
Beijing has been lobbying for use of its yuan currency in trade instead of the U.S. dollar.
A Saudi source, speaking before Xi’s visit, told Reuters that a decision to sell small amounts of oil in yuan to China could make sense in order to pay Chinese imports directly, but “it is not yet the right time”.
Most of Saudi Arabia’s assets and reserves are in dollars including more than $120 billion of U.S. Treasuries that Riyadh holds, and the Saudi riyal, like other Gulf currencies, is pegged to the dollar.
Earlier, the Chinese leader said his visit heralded a new era in relations, voicing hope the Arab summits would become “milestone events in the history of China-Arab relations”.
Additional reporting by Eduardo Baptista in Beijing, Riham Alkousaa, Ahmad Ghaddar and Lina Najm in Dubai
Writing by Ghaida Ghantous and Dominic Evans
Editing by Mark Heinrich, William Maclean and Mark Potter
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Xi gets lavish welcome in Riyadh, a contrast with Biden trip
Chinese leader heralds ‘new era’ in ties with Arab world
U.S. wary of China’s growing influence
RIYADH, Dec 8 (Reuters) – Saudi Arabia and China showcased deepening ties with a series of strategic deals on Thursday during a visit by President Xi Jinping, including one with tech giant Huawei, whose growing foray into the Gulf region has raised U.S. security concerns.
King Salman signed a “comprehensive strategic partnership agreement” with Xi, who received a lavish welcome in a country forging new global partnerships beyond the West.
Xi’s car was escorted to the king’s palace by members of the Saudi Royal Guard riding Arabian horses and carrying Chinese and Saudi flags, and he later attended a welcome banquet.
The Chinese leader held talks with Crown Prince Mohammed bin Salman, de facto ruler of the oil giant, who greeted him with a warm smile. Xi heralded “a new era” in Arab ties.
The display stood in stark contrast to the low-key welcome extended in July to U.S. President Joe Biden, with whom ties have been strained by Saudi energy policy and the 2018 murder of Jamal Khashoggi that had overshadowed the awkward visit.
The United States, warily watching China’s growing sway and with its ties to Riyadh at a nadir, said on Wednesday Xi’s trip was an example of Chinese attempts to exert influence around the world and would not change U.S. policy towards the Middle East.
A memorandum with China’s Huawei Technologies [RIC:RIC:HWT.UL], on cloud computing and building high-tech complexes in Saudi cities, was agreed despite U.S. unease with Gulf allies over a possible security risk in using the Chinese firm’s technology. Huawei has participated in building 5G networks in most Gulf states despite the U.S. concerns.
Prince Mohammed, with whom Biden bumped fists instead of shaking hands in July, has made a comeback on the world stage following the Khashoggi killing and has been defiant in the face of U.S. ire over oil supplies and pressure from Washington to help isolate Russia.
In further burnishing of his international credentials, Saudi Arabia and the United Arab Emirates said on Thursday that the prince and the UAE president jointly led mediation efforts that secured the release of U.S. basketball star Brittney Griner in a prisoner swap with Russia.
[1/10] Saudi King Salman bin Abdulaziz and Chinese President Xi Jinping sign documents during a meeting in Riyadh, Saudi Arabia December 8, 2022. Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS
In an op-ed published in Saudi media, Xi said he was on a “pioneering trip” to “open a new era of China’s relations with the Arab world, the Arab countries of the Gulf, and Saudi Arabia”.
China and Arab countries would “continue to hold high the banner of non-interference in internal affairs”, Xi added.
That sentiment was echoed by the crown prince, who said his country opposed any “interference in China’s internal affairs in the name of human rights”, Chinese state broadcaster CCTV said.
Xi, due to meet other Gulf oil producers and attend a wider gathering of Arab leaders on Friday, said China would work to make those summits “milestone events in the history of China-Arab relations”, and that Beijing sees Riyadh as “an important force in the multipolar world”.
Saudi Arabia and other Gulf states like the United Arab Emirates have said that they would not choose sides between global powers and were diversifying partners to serve national economic and security interests.
“TRUSTED PARTNER”
China, the world’s biggest energy consumer, is a major trade partner of Gulf states and bilateral ties have expanded as the region pushes economic diversification, raising U.S. hackles about Chinese involvement in sensitive Gulf infrastructure.
The Saudi energy minister on Wednesday said Riyadh would stay a “trusted and reliable” energy partner for Beijing and the two would boost cooperation in energy supply chains by setting up a regional centre in the kingdom for Chinese factories.
Chinese and Saudi firms also signed 34 deals for investment in green energy, information technology, cloud services, transport, construction and other sectors, state news agency SPA reported. It gave no figures, but had earlier said the two countries would seal initial agreements worth $30 billion.
Tang Tianbo, Middle East specialist at the China Institutes of Contemporary International Relations (CICIR) – a Chinese government-affiliated think tank – said the visit would result in further expansion of energy cooperation.
Reporting by Aziz El Yaakoubi in Riyadh and Eduardo Baptista in Beijing; Writing by Tom Perry and Dominic Evans; Editing by Ghaida Ghantous and Nick Macfie, William Maclean
Our Standards: The Thomson Reuters Trust Principles.
RIYADH, Dec 7 (Reuters) – Chinese President Xi Jinping began a visit to Saudi Arabia on Wednesday that Beijing said marked its biggest diplomatic initiative in the Arab world, as Riyadh expands global alliances beyond a long-standing partnership with the West.
The meeting between the global economic powerhouse and Gulf energy giant comes as Saudi ties with Washington are strained by U.S. criticism of Riyadh’s human rights record and Saudi support for oil output curbs before the November midterm elections.
The White House said Xi’s visit was an example of Chinese attempts to exert influence, and that this would not change U.S. policy towards the Middle East.
“We are mindful of the influence that China is trying to grow around the world,” White House National Security Council spokesperson John Kirby told reporters.
China, the world’s biggest energy consumer, is a major trade partner of Gulf oil and gas producers. Bilateral ties have expanded under the region’s economic diversification push, raising U.S. concerns about growing Chinese involvement in sensitive infrastructure in the Gulf.
Energy Minister Prince Abdulaziz bin Salman on Wednesday said that Riyadh would remain a “trusted and reliable” energy partner for Beijing and that the two countries would boost cooperation in energy supply chains by establishing a regional centre in the kingdom for Chinese factories.
Saudi Arabia is China’s top oil supplier and Xi’s visit takes place while uncertainty hangs over energy markets after Western powers imposed a price cap on sales of oil from Russia, which has been increasing volumes to China with discounted oil.
On Wednesday Chinese and Saudi firms signed 34 deals for investment in green energy, information technology, cloud services, transport, construction and other sectors, Saudi state news agency SPA reported. It gave no value for the deals, but had earlier said the two countries would seal agreements worth $30 billion.
‘EPOCH-MAKING VISIT’
Xi was met on arrival by the governor of Riyadh, the kingdom’s foreign minister and the governor of sovereign wealth fund PIF.
Crown Prince Mohammed bin Salman is expected to offer him a lavish welcome, in contrast with the low-key reception for U.S. President Joe Biden whose censure of Saudi Arabia’s de facto ruler formed the backdrop for a strained meeting in July.
Xi will hold bilateral talks with Saudi Arabia and Riyadh will later host a wider meeting with Gulf Arab states and a summit with Arab leaders which will be “an epoch-making milestone in the history of the development of China-Arab relations”, foreign ministry spokesperson Mao Ning said.
The Chinese president said he would work with the Gulf Cooperation Council and other Arab leaders “to advance Chinese-Arab relations and Chinese-GCC relations to a new level”, SPA reported.
For Riyadh, frustrated by what it sees as Washington’s gradual disengagement from the Middle East and a slow erosion of its security guarantees, China offers an opportunity for economic gains without the tensions which have come to cloud the U.S. relationship.
“Beijing does not burden its partners with demands or political expectations and refrains from interfering in their internal affairs,” Saudi columnist Abdulrahman Al-Rashed wrote in the Saudi-owned Asharq Al-Awsat newspaper.
Unlike Washington, Beijing retains good ties with Riyadh’s regional rival Iran, another supplier of oil to China, and has shown little interest in addressing Saudi political or security concerns in the region.
Saudi Arabia, birthplace of Islam, had supported China’s policies in Xinjiang, where the U.N. says human rights abuses have been committed against Uyghurs and other Muslims.
Saudi officials have said that regional security would be on the agenda during Xi’s visit. The United States has for decades been Saudi Arabia’s main security guarantor and remains its main defence supplier, but Riyadh has chafed at restrictions on U.S. arms sales to the kingdom.
Riyadh has said it would continue to expand partnerships to serve economic and security interests, despite U.S. reservations about Gulf ties with both Russia and China.
Reporting by Eduardo Baptista in Beijing and Aziz El Yaakoubi in Riyadh; Additional reporting by Ghaida Ghantous and Maha El Dahan in Dubai and Steve Holland and Doina Chiacu in Washington; Writing by Dominic Evans and Ghaida Ghantous; Editing by Nick Macfie, Toby Chopra and Alistair Bell
Our Standards: The Thomson Reuters Trust Principles.
No discussions about Russian price cap – delegates
Oil prices have come under pressure from weak economy
Next meetings to take place Feb. 1 and June 3-4
LONDON/DUBAI, Dec 4 (Reuters) – OPEC+ agreed to stick to its oil output targets at a meeting on Sunday as the oil markets struggle to assess the impact of a slowing Chinese economy on demand and a G7 price cap on Russian oil on supply.
The decision comes two days after the Group of Seven (G7) nations agreed a price cap on Russian oil.
OPEC+, which comprises the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, angered the United States and other Western nations in October when it agreed to cut output by 2 million barrels per day (bpd), about 2% of world demand, from November until the end of 2023.
Washington accused the group and one of its leaders, Saudi Arabia, of siding with Russia despite Moscow’s war in Ukraine.
OPEC+ argued it had cut output because of a weaker economic outlook. Oil prices have declined since October due to slower Chinese and global growth and higher interest rates, prompting market speculation the group could cut output again.
But on Sunday the group of oil producers decided to keep the policy unchanged. Its key ministers will next meet on Feb. 1 for a monitoring committee while a full meeting is scheduled for June 3-4.
On Friday, G7 nations and Australia agreed a $60 per barrel price cap on Russian seaborne crude oil in a move to deprive President Vladimir Putin of revenue while keeping Russian oil flowing to global markets.
Moscow said it would not sell its oil under the cap and was analysing how to respond.
Many analysts and OPEC ministers have said the price cap is confusing and probably inefficient as Moscow has been selling most of its oil to countries like China and India, which have refused to condemn the war in Ukraine.
Neither an OPEC meeting on Saturday nor the OPEC+ meeting on Sunday discussed the Russian price cap, sources said.
Russia’s Deputy Prime Minister Alexander Novak said on Sunday Russia would rather cut production than supply oil under the price cap and said the cap may affect other producers.
Sources have told Reuters several OPEC+ members have expressed frustration at the cap saying the anti-market measure could ultimately be used by the West against any producer.
The United States said the measure was not aimed at OPEC.
JP Morgan said on Friday that OPEC+ could review production in the new year based on fresh data on Chinese demand trends and consumer compliance with price caps on Russia crude output and tanker flow.
Reporting by Maha el Dahan and Rowena Edwards, Editing by Kirsten Donovan
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NUSA DUA, Indonesia, Nov 14 (Reuters) – Chinese leader Xi Jinping will arrive on the Indonesian island of Bali on Monday for a long-awaited meeting with U.S. President Joe Biden, ahead of a Group of 20 (G20) summit set to be fraught with tension over Russia’s invasion of Ukraine.
The two leaders are expected to discuss Taiwan, Ukraine and North Korea’s nuclear ambitions, issues that will also loom over the G20 that opens on Tuesday without Russian President Vladimir Putin in attendance.
Billionaire Elon Musk, the CEO of Tesla Inc (TSLA.O) and Twitter Inc, addressed a business forum that is part of the summit and said he had “too much work” on his plate.
Speaking by videolink, he appeared lit by candles, wearing a batik shirt sent by the organisers. He said he was speaking from a place that had just lost power.
Foreign Minister Sergei Lavrov will represent the Russian president at the G20 summit – the first since Russia invaded Ukraine in February – after the Kremlin said Putin was too busy to attend.
On the eve of Monday’s meeting with Xi, Biden told Asian leaders in Cambodia that U.S. communication lines with China would stay open to prevent conflict, with tough talks almost certain in the days ahead.
The United States would “compete vigorously” with China while “ensuring competition does not veer into conflict”, said Biden, stressing the importance of peace in the Taiwan Strait during an address to the East Asia Summit in Cambodia. He arrived in Bali on Sunday night.
Relations between the superpowers have sunk to their lowest in decades, marred by growing tensions in recent years over a host of issues ranging from Hong Kong and Taiwan to the South China Sea, trade practices and U.S. restrictions on Chinese technology.
But U.S. officials said there have been quiet efforts by both Beijing and Washington over the past two months to repair ties.
“These meetings do not take place in isolation, they are part of a very sustained process,” said one Biden administration official. “We have engaged in serious, sustained – dozens and dozens of hours – of quiet diplomacy behind the scenes.
“I think we are satisfied with the seriousness that both sides have brought to that process.”
Biden and Xi, who have held five phone or video calls since Biden became president in January 2021, last met in person during the Obama administration when Biden was vice president.
Monday’s face-to-face meeting will be at The Mulia, a luxury beachside hotel on Nusa Dua bay in Bali. It is unlikely to produce a joint statement, the White House has said, but it could help stabilise the bilateral relationship.
Both leaders will attend the opening of the G20 summit on Tuesday.
‘SOME DISCOMFORT’
One of the main topics at the G20 will be Russia’s war in Ukraine and Biden will be “unapologetic” in his defence of the European nation, U.S. officials said last week.
Xi and Putin have grown increasingly close in recent years, bound by their shared distrust of the West, and reaffirmed their partnership just days before Russia invaded Ukraine. But China has been careful not to provide any direct material support that could trigger Western sanctions against it.
Chinese Premier Li Keqiang emphasised the “irresponsibility” of nuclear threats during the summit in Cambodia, suggesting China was uncomfortable with strategic partner Russia’s nuclear rhetoric, the Biden administration official said.
The West has accused Russia of making irresponsible statements on the possible use of nuclear weapons since its February invasion of Ukraine. Russia has in turn accused the West of “provocative” nuclear rhetoric.
“There have been areas where China and Russia have worked together to deepen and broaden their relationship economically,” said the U.S. official. “But on some of these big issues, I think there is undeniably some discomfort in Beijing about what we’ve seen in terms of reckless rhetoric and activity on the part of Russia.”
Russia’s Lavrov said on Sunday the West was “militarising” Southeast Asia in a bid to contain Russian and Chinese interests, setting the stage for more confrontation with Western leaders at the G20.
Ukrainian President Volodymyr Zelenskiy has said he will address the G20 gathering by videolink on Tuesday.
British Prime Minister Rishi Sunak is expected to meet Lavrov at the summit, a Downing Street spokesperson said in a statement. He is also likely to hold a bilateral meeting with Biden.
The G20 bloc, which includes a broad array of countries ranging from Brazil to India and Germany, accounts for more than 80% of the world’s gross domestic product (GDP) and 60% of its population.
Australian Prime Minister Anthony Albanese is due to join Indonesian President Joko Widodo to address the parallel B20 business forum taking place on Monday ahead of the G20 summit.
Reporting by Nandita Bose, Fransiska Nangoy, Leika Kihara and Simon Lewis in Nusa Dua; Writing by Kay Johnson and Raju Gopalakrishnan; Editing by Ed Davies and Robert Birsel
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WASHINGTON, Nov 1 (Reuters) – The United States is concerned about threats from Iran against Saudi Arabia and will not hesitate to respond if necessary, a White House spokesperson said on Tuesday.
“We are concerned about the threat picture, and we remain in constant contact through military and intelligence channels with the Saudis,” said the spokesperson from the National Security Council. “We will not hesitate to act in the defense of our interests and partners in the region.”
The official spoke after the Wall Street Journal reported that Saudi Arabia has shared intelligence with the United States warning of an imminent attack from Iran on targets in the kingdom.
The Saudi government media office did not immediately respond to a Reuters’ request for comment.
The top commander of Iran’s Revolutionary Guards, Hossein Salami, on Oct. 20 issued what he described as a warning to Saudi leaders not to rely on Israel and mentioned their “glass palaces”.
Riyadh had blessed U.S.-brokered pacts under which two of its Gulf allies forged ties with Israel in 2020 in a move that created a new regional anti-Iran axis, but also launched direct talks with Tehran last year in a bid to contain tensions amid Gulf uncertainty over U.S. commitment to the region.
Saudi Arabia had blamed Iran for a 2019 missile and drone assault on its oil plants, a charge Tehran denies. The leading Sunni Muslim and Shi’ite powers have been locked in rivalry for decades, backing allies fighting proxy wars across the region.
The latest concerns come at a time of strained relations between Riyadh and Washington after the Saudi-led OPEC+ alliance last month decided to cut oil output targets, which raised fears of a gasoline price spike in the United States.
President Joe Biden had said there will be consequences for U.S. ties with Riyadh and several senators urged the White House to freeze all cooperation with Riyadh, including arms sales. Saudi Arabia relies heavily on the United States for its security.
The United States has said Iran has supplied Russia with drones for use in its war against Ukraine, prompting Washington to set aside efforts to resurrect the Iran nuclear deal, which then-President Donald Trump abandoned in 2018.
Reporting By Steve Holland; Editing by Josie Kao and Michael Perry
Our Standards: The Thomson Reuters Trust Principles.
BAKU, Oct 27 (Reuters) – Igor Sechin, chief executive of Russian oil giant Rosneft (ROSN.MM) and one of Vladimir Putin’s closest allies, on Thursday heaped praise on China’s leaders and said Taiwan would return to its “native harbour” on time.
Sechin said that decisions taken by the 20th Communist Party Congress, which cemented Xi Jinping position as the most powerful Chinese leader since Mao Zedong, would provide for a new level of development for the country.
The deepening “no limits” partnership between the rising superpower of China and the natural resources titan of Russia is one of the most intriguing geopolitical developments of recent years – and one the West is watching with anxiety.
“The position of (China’s) leadership is highly respected, which calmly and openly, without false premises, sets out its positions, even on the most difficult issues, such as the problem of Taiwan, which in this regard can be assessed as somewhat exaggerated,” Sechin told an international economic forum in Baku, previously held in Italy’s Verona.
He said U.S. attempts to create its own complex microchip industry showed that “Taiwan’s return to its native harbour” was “on schedule”.
Taiwan’s Foreign Ministry condemned the comments, saying only the island’s people could decide their future.
“Neither our government, people nor the international community can accept absurd remarks that are in China’s cortege or demean Taiwan’s sovereign status,” it said in a statement.
China claims democratically governed Taiwan as its own territory and has ramped up military and political pressure against the island over the past two years. Taipei strongly rejects Beijing’s sovereignty claims.
Russia has repeatedly warned the United States against meddling in China’s affairs while President Vladimir Putin has explicitly backed Xi over the fate of the island where the defeated Republic of China government fled in 1949 after losing the Chinese civil war to Mao’s communists.
BP’S DIVIDEND
Sechin said Rosneft had transferred $700 million in second-half 2021 dividends into special accounts for BP (BP.L), which remained Rosneft’s “shadow” shareholder despite a decision to leave the company following the start of what Moscow calls its “special military operation” in Ukraine.
BP said its position on Russia has remained unchanged.
“In February we announced our decision to exit Rosneft and our other Russian businesses – we continue to pursue that,” it said in emailed comments.
Sechin also said that Saudi Arabia’s position on the global oil market was “reasonable” and based on analysis of oil supply and demand.
The United States, he said, had tried to persuade Saudi Arabia to postpone oil output cuts as part of OPEC+.
“Today, the energy policy of the (Joe) Biden administration is solving exclusively pre-election tasks with a planning horizon of two weeks, given that the elections to the U.S. Congress are on November 8,” Sechin said.
“This includes attempts to persuade Saudi Arabia to at least postpone the announcement of this decision until the elections.”
The OPEC+ group of global leading oil producers, which includes Saudi Arabia and Russia, agreed this month to cut its combined output by 2 million barrels per day despite opposition from the United States, which wants lower fuel prices.
Saudi Arabia rejected criticism of an OPEC+ decision to cut its oil production target despite U.S. objections and said that Washington’s request to delay the cut by a month would have had negative economic consequences.
Reporting by Nailia Bagirova and Olesya Astakhova; Additional reporting by Ron Bousso and Ben Blanchard in London; Writing by Vladimir Soldatkin; Editing by Guy Faulconbridge, Nick Macfie and Mike Harrison
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ZURICH, Oct 27 (Reuters) – Credit Suisse plans to raise 4 billion Swiss francs ($4 billion) from investors, cut thousands of jobs and shift its focus from investment banking towards its rich clients, as the bank attempts to put years of scandals behind it.
The Swiss lender outlined on Thursday what its chairman Axel Lehmann dubbed a “blueprint for success”, after it racked up an unexpected 4 billion Swiss franc loss in the third quarter of the year.
The announcement followed torrid weeks for the bank and fell flat with investors. Its stock, which has plumbed record lows in recent weeks, dropped about 14 percent in early trading, valuing the embattled bank around 11 billion francs.
Credit Suisse said clients pulled funds in recent weeks at a pace that saw the lender breach some regulatory requirements for liquidity, underscoring the impact on its business of wild market swings and a social media storm.
The group added that it was stable throughout.
Analysts gave the announcement a lukewarm welcome. Vontobel’s Andreas Venditti said the bank was embarking on a “lengthy process to restore credibility”.
“Resolute execution and no further missteps will be key and it will take time until results will begin to show,” he said.
The turnaround plan has many elements, from cutting jobs to refocusing on banking for the wealthy.
It will cut 2,700 jobs or 5% of its workforce by the end of this year, and ultimately reduce its workforce by roughly 9,000 to about 43,000 by the end of 2025.
The Swiss bank said it also aims to separate out its investment bank to create CS First Boston, focused on advisory work such as mergers and acquisitions and arranging deals on capital markets.
The bank envisions selling a stake but keeping roughly 50% in the new business, said one person familiar with the issue. It is also exploring the possibility of an initial public offering, another source familiar with the matter said.
Saudi National Bank, majority-owned by the government of Saudi Arabia, said it will invest up to 1.5 billion francs in Credit Suisse to take a stake of up to 9.9% and may invest in the investment bank.
The move bolsters Saudi influence in one of Switzerland’s best-known banks. Olayan Group, one of the biggest Saudi family-owned conglomerates, with a multibillion dollar investment portfolio, also owns a 5% stake in the bank.
The Qatar Investment Authority – which owns about 5% of the Swiss bank – declined to comment on whether it plans to buy any shares.
Credit Suisse said it will create a capital release unit to wind down non-strategic, higher-risk businesses, while announcing plans to sell a large part of its securitised products business to an investor group led by Apollo.
The bank will also wind down some trading businesses in emerging markets and equities.
Its heavy loss in the third quarter was due in large part to write-offs linked to its investment banking overhaul, including adjustments for lost tax credits.
JPMorgan analysts said that “question marks remain” over the restructuring of investment banking, adding that the share sale would also weigh on the stock.
The latest revamp, aiming to overcome the bank’s worst crisis in its history, is the third attempt in recent years by successive CEOs to turn the group around.
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Once a symbol for Swiss reliability, the bank’s reputation has been tarnished by a series of scandals, including an unprecedented prosecution at home involving laundering money for a criminal gang.
The bank had been rushing to raise money and free up capital by selling assets, keen to limit how much cash it would have to raise from investors to fund its overhaul, handle its legacy litigation costs and retain a cushion for rough markets ahead.
Credit Suisse needs to revamp after a series of costly and morale-sapping blunders that triggered a wholesale change of management.
In refocusing away from risky investment banking to banking for the globe’s rich, Credit Suisse is following in the footsteps of its bigger Swiss rival, UBS.
The UBS turnaround succeeded in large part because of a flood of freshly printed money from the world’s central banks to reignite the economy during the financial crisis.
Credit Suisse, on the other hand, is attempting to refocus its business in a world facing war, an energy crisis, rocketing inflation and an economic slide.
Last year, the bank took a $5.5 billion loss from the unravelling of U.S. investment firm Archegos and had to freeze $10 billion worth of supply chain finance funds linked to insolvent British financier Greensill, highlighting risk-management failings.
Its deepening problems even put it on the radar of day traders earlier this month, when a frenzy of wild speculation about its health sent its stock price into a tailspin to a record low.
($1 = 0.9858 Swiss francs)
Additional reporting by Michael Shields in Zurich and Yousef Saba in Dubai; Writing by John O’Donnell; Editing by Edmund Klamann
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