WASHINGTON: President Donald Trump signed an unprecedented $2.2 trillion economic rescue package into law Friday, after swift and near-unanimous action by Congress to support businesses, rush resources to overburdened health care providers and help struggling families during the deepening coronavirus epidemic.
Acting with unity and resolve unseen since the 9/11 attacks, Washington moved urgently to stem an economic free fall caused by widespread restrictions meant to slow the spread of the virus that have shuttered schools, closed businesses and brought American life in many places to a virtual standstill.
“This will deliver urgently needed relief,” Trump said as he signed the bill in the Oval Office, flanked only by Republican lawmakers. He thanked members of both parties for putting Americans “first.”
Earlier Friday, the House gave near-unanimous approval by voice vote after an impassioned session conducted along the social distancing guidelines imposed by the crisis. Many lawmakers sped to Washington to participate — their numbers swollen after a maverick Republican signaled he’d try to force a roll call vote — though dozens of others remained safely in their home districts.
The Senate passed the bill unanimously late Wednesday.
“Today we’ve all acknowledged our nation faces an economic and health emergency of historic proportions,” said House Speaker Nancy Pelosi, D-Calif. She said Americans deserve a full-on government response “to address these threats to their lives and their livelihood and they need it now.”
The $2.2 trillion legislation will speed government payments of $1,200 to most Americans and increase jobless benefits for millions of people thrown out of work. Businesses big and small will get loans, grants and tax breaks. It will send unprecedented billions to states and local governments, and the nation’s all but overwhelmed health care system.
“This is not a time for cynicism or invective or second-guessing,” said GOP Whip Liz Cheney of Wyoming. “This is a time to remember that we are citizens of the greatest nation on Earth, that we have overcome every challenge we have faced, and we will overcome this one.”
Despite reservations, arch conservatives joined with progressives like Alexandria Ocasio-Cortez, D-N.Y., to back the bill, which moved quickly through a Congress that’s been battered by partisanship and is itself not immune to the suffering the virus has caused. Reps. Joe Cunningham, D-S.C., and Mike Kelly, R-Pennsylvania, announced Friday that they’d tested positive, bringing the number of infected lawmakers to five.
Tea party Republicans said government orders to shutter businesses merited actions that conflict with their small-government ideology. Liberals accepted generous corporate rescues that accompany larger unemployment benefits, deferrals of student loans, and an enormous surge of funding for health care and other agencies responding to the crisis.
“I’m going to have to vote for something that has things in it that break my heart,” said conservative Rep. David Schweikert, R-Arizona
The bipartisan amity went only so far. Top congressional Democrats were not invited to the White House signing ceremony, said Democratic aides speaking on condition of anonymity to describe the situation.
Many lawmakers summoned the bipartisan spirit of 9/11 and efforts to fight terrorism. Others praised the roles low-income workers play in keeping the country going and the heroism of health care workers. Some, like Iowa Democrat Abby Finkenauer, who had just learned of two additional coronavirus-related deaths in her district, came close to tears.
Others couldn’t restrain their partisan impulses. Republicans chided Democratic leaders for delays and provisions they see as extraneous, such as funding for public broadcasting and the arts; Democrats said too many elements are a bailout for corporations that may not need it.
Still, in a chamber increasingly populated by lawmakers whose chief skill often seems to be partisan attacks, Friday’s debate was a noteworthy break.
“We have no time to dither,” said Rep. Gerald Connolly, D-Virginia “We have no time to engage in ideological or petty partisan fights. Our country needs us as one.”
The run-up to the vote contained an element of drama because libertarian conservative Thomas Massie, R-Kentucky, announced plans to seek a roll call vote.
Leaders of both parties united to prevent that because it would have forced lawmakers back to the Capitol or blemished their voting records if they stayed home. Instead, they made sure enough lawmakers would attend Friday’s session to block Massie’s move under the rules, and lawmakers took the unprecedented step of sitting in the visitors galleries to establish the necessary quorum.
The House promptly adjourned for a weeks-long recess but will return later in the spring to consider further legislation.
“This bill is not only a rescue package, it’s a commitment — a commitment that your government, and the people whom you elected to serve you, will do everything we can to limit the harm and hardship you face, both now and in the foreseeable future,” said Minority Leader Kevin McCarthy, R-Calif.
The massive CARES Act started as a draft plan among Republicans controlling the Senate who were seeking a greater voice in the coronavirus response efforts — especially after Pelosi was a dominant force in earlier legislation imposing a sick leave mandate on businesses.
Senate Majority Leader Mitch McConnell, R-Kentucky, welcomed Democratic participation a week ago, and signed off on a major expansion of unemployment insurance, but his efforts to freeze out Pelosi and force a quick agreement were met with Democratic demands for large infusions of aid to states and hospitals, as well as an assortment of smaller items. McConnell and top Senate Democrat Chuck Schumer of New York wrestled for days, along with Treasury Secretary Steven Mnuchin and other administration officials.
Negotiations finally produced a deal early Wednesday morning, and the Senate passed the measure by a 96-0 vote.
The legislation dwarfs prior Washington responses to crises like 9/11, the 2008 financial crisis, and natural disasters.
Key elements are untested, such as grants to small businesses to keep workers on payroll and complex lending programs to larger businesses. Rebate payments will go to people who have retained their jobs. Agencies like the Small Business Administration and state unemployment systems will be severely taxed, and conservatives fear that a new, generous unemployment benefit will dissuade jobless people from returning to the workforce.
The bill amounts to a bridge loan for much of the economy and carries a price tag that equals half the size of the entire $4 trillion-plus annual federal budget.
The legislation also establishes a $454 billion program for guaranteed, subsidized loans to larger industries in hopes of leveraging up to $4.5 trillion in lending to distressed businesses, states, and municipalities.
There is also $150 billion devoted to the health care system, including $100 billion for grants to hospitals and other health care providers buckling under the strain of COVID-19 caseloads.
It also seeks to strengthen the safety net for the poor and homeless. Schools and students would get relief, small business loans payments would be deferred. Evictions from public housing would be put on pause.
Republicans successfully pressed for an employee retention tax credit designed to help companies keep workers on payroll. Companies would also be able to defer payment of the 6.2% Social Security payroll tax. A huge tax break for interest costs and operating losses limited by the 2017 tax overhaul was restored at a $200 billion cost in a boon for the real estate sector.
Most people who contract the new coronavirus have mild or moderate symptoms, such as fever and cough that clear up in two to three weeks. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia, or death.
Trump signs $2.2T stimulus after swift congressional votes
https://arab.news/gskqb
Trump signs $2.2T stimulus after swift congressional votes
- Trump: “This will deliver urgently needed relief"
- Washington moved urgently to stem an economic free fall
China discovers 100m tonne oilfield in Bohai Sea
- Chinese state oil company raises its 2024 production target by about 8 percent
RIYADH: China’s CNOOC Ltd. has made a major oilfield discovery in the Bohai Sea, adding over 100 million tonnes of oil equivalent proved in-place volume, the state-owned oil and gas giant said on Monday.
The discovery was made at the Qinhuangdao 27-3 oilfield located in the north-central waters of the Bohai Sea, the company said in a statement. The field has been tested to produce about 742 barrels of crude oil per day from a single well, it added.
Earlier in the month, CNOOC announced the discovery of a new reserve in the South China Sea, which contains over 100 million tonnes of oil equivalent proved in-place.
The announcements come as CNOOC invests heavily in the development of China’s offshore oil and gas reserves as part of a broader push to offset declining output from aging onshore fields.
The oil and gas giant in January raised its 2024 production target by about 8 percent to a record 700 million to 720 million barrels of oil equivalent, citing higher annual capital spending, with production reaching about 675 million boe in 2023.
Industrial output
China’s factory output and retail sales beat expectations in the January-February period, marking a solid start for 2024 and offering some relief to policymakers even as weakness in the property sector remains a drag on the economy and confidence.
Monday’s data join recent better-than-expected exports and consumer inflation indicators, providing an early boost to Beijing’s hopes of reaching what analysts have described as an ambitious 5 percent gross domestic product growth target for this year.
FASTFACTS
• The discovery was made at the Qinhuangdao 27-3 oilfield located in the north-central waters of the Bohai Sea.
• The field has been tested to produce about 742 barrels of crude oil per day from a single well.
• The announcements come as CNOOC invests heavily in the development of China’s offshore oil and gas reserves.
“China’s activity data broadly stabilized at the start of the year. But there are still reasons to think some of the strength could be one-off,” said Louise Loo, China economist at Oxford Economics.
Industrial output rose 7 percent in the first two months of the year, data released by the National Bureau of Statistics showed on Monday, above expectations for a 5 percent increase in a Reuters poll of analysts and faster than the 6.8 percent growth seen in December. It also marked the quickest growth in almost two years.
Retail sales, a gauge of consumption, rose 5.5 percent, slowing from a 7.4 percent increase in December but beating an expected 5.2 percent gain.
The eight-day Lunar New Year holiday in February saw a solid return of travel, which supported revenue of tourism and hospitality sectors. That also led to a 3 percent growth in oil refinery throughput to meet strong demand for transport fuels.
Property sector
A protracted crisis in the property sector, a key pillar of the economy, remains a major concern for policymakers, consumers and investors.
Monday’s data offered little relief on that front with declines in property investment narrowing in January-February, but still far from levels of reaching stability.
The frailty of the sector was highlighted by the poor demand. Property sales by floor area logged a 20.5 percent slide in January-February from a year earlier, compared with a 23 percent fall in December last year.
Aramco CEO calls for energy transition reset during keynote speech at CERAWeek 2024
- Amin H. Nasser: ‘We should abandon the fantasy of phasing out oil and gas and instead invest in them adequately, reflecting realistic demand assumptions’
- Nasser: ‘Despite the world investing more than $9.5 trillion on energy transition over the past two decades, alternatives have been unable to displace hydrocarbons at scale’
DHAHRAN: Aramco President and CEO Amin H. Nasser today emphasized the need for a new, realistic pathway for the energy transition that includes oil and gas. In a keynote speech at CERAWeek 2024 in Houston, Texas, Mr. Nasser said the current transition strategy “is visibly failing on most fronts as it collides with five hard realities.”
These hard realities include the need to reset global efforts to meet climate ambitions, the inability of alternatives so far to displace hydrocarbons at scale, the costs associated with alternatives, energy requirements of the Global South, and the potential for further emissions reductions from hydrocarbons.
On reducing emissions from oil and gas, Nasser said: “We should abandon the fantasy of phasing out oil and gas and instead invest in them adequately, reflecting realistic demand assumptions. We should ramp up our efforts to reduce carbon emissions, aggressively improve efficiency, and introduce lower carbon solutions. And we should phase in new energy sources and technologies when they are genuinely ready, economically competitive, and with the right infrastructure.”
On the energy transition’s impact on consumers, Nasser said: “As the current transition strategy increasingly impacts the majority, not just a tiny minority, consumers around the world are sending powerful messages that can no longer be ignored. We know they want energy with lower emissions, and rightly so. But many are struggling to afford the energy they need. And they worry about ample and reliable supply, which the recent energy crisis showed is not guaranteed… Unfortunately, the current transition strategy overlooks these broader messages from consumers. It focuses almost exclusively on replacing hydrocarbons with alternatives, more on sources than on reducing emissions.”
On the demand outlook for hydrocarbons, Nasser said: “Despite the world investing more than $9.5 trillion on energy transition over the past two decades, alternatives have been unable to displace hydrocarbons at scale… Global oil demand is expected to reach an all-time high in the second half of this year… Likewise, gas remains a mainstay of global energy, growing by about almost 70 percent since the start of the century… All this strengthens the view that peak oil and gas is unlikely for some time to come.”
CERAWeek is an annual conference that gathers leaders, ministers, public-policy officials and CEOs from around the world to share insights, innovative ideas and solutions to energy, climate and environmental challenges. More than 8,000 representatives of the energy, utilities, automotive, manufacturing, policy, financial, and technology fields attend CERAWeek, which features more than 1,400 expert speakers.
Saudi Arabia’s mining sector records 138% growth in exploitation licenses
RIYADH: Saudi Arabia’s mining sector is on an impressive upswing, recording a 138 percent increase in the issuance of exploitation licenses since the implementation of the new Mining Investment Law in 2021.
The number of permits rose from eight in 2021 to 19 last year as the Saudi Ministry of Industry and Mineral Resources actively works to boost mineral production and investment.
The strategic shift is part of the Kingdom’s efforts to transform mining into a foundational industrial pillar. The Kingdom’s mineral wealth is valued at an estimated SR9.4 trillion ($2.4 trillion), according to a press release from the ministry.
Data further revealed a surge in building materials quarry licenses, which rose from 158 in 2021 to 538 in 2023, and a leap in exploration licenses, from 58 to 259 during the same period.
These increases, 241 percent and 347 percent, respectively, are propelled by strategic undertakings like the Accelerated Exploration Program initiative and more efficient licensing procedures.
Saudi Arabia’s mining sector has been expanding both locally and internationally, with significant strides being made.
In January, the Royal Commission for Jubail and Yanbu signed a memorandum of understanding with Brazilian mining company Vale for the development of an iron ore briquettes project in the Kingdom.
The MoU was signed on the sidelines of the two-day Future Minerals Forum, during which the Brazilian company disclosed its plans for the Middle East.
The deal marked a key milestone in Vale’s journey in the region, spotlighting the upcoming state-of-the-art project in the Kingdom as a crucial part of its strategy to decarbonize the steelmaking industry.
Speaking in a panel discussion titled “Making Africa, Western and Central Asia Processing and Manufacturing Hubs,” Vale CEO Eduardo Bartolomeo highlighted the technological innovations and advancements planned within the mega hub in Ras Al-Khair Industrial City.
Vale said that its participation at the forum underscored the company’s pivotal role in the region’s sustainable mining sector, adding that it demonstrated a strong alignment with the Kingdom’s Vision 2030 in an emphasis to its project in Ras Al-Khair and commitment to net-zero emissions.
Closing Bell: TASI ends session in green, nears $3bn in trade volume
RIYADH: Saudi Arabia’s Tadawul All Share Index wrapped up Monday’s trading session at 12,772.46 points, witnessing an increase of 10.03 points, or 0.08 percent.
The parallel market, Nomu, ended the day at 27,204.67 points, down 75.02 or 0.28 percent.
Conversely, the MSCI Tawadul Index grew by 1.53 points to close at 1,606.96, a 0.10 percent increase.
TASI reported a trading volume of SR11 billion ($2.94 billion), with 115 stocks gaining and 113 witnessing declines.
Nomu, on the other hand, saw a trading volume of SR26 million.
On the announcement front, the Saudi Industrial Investment Group Co. released its financial results for 2023, recording a 59.5 percent drop in net profits compared to the previous year.
Since SIIG employs the equity method for its joint venture investments, it does not list sales, revenue, and gross profit on its profit or loss statement.
However, the company’s results indicated a massive drop in net profits from SR277 million in 2022 to SR112 million in 2023.
SIIG reported a decline in its share of profits from joint ventures, primarily due to falling selling prices across all products and an unplanned shutdown at the Saudi Polymer Co. project this year.
Despite these challenges, the company observed an uptick in financing income, particularly from Murabaha, and a reduction in general and administrative expenses, indicating a mixed financial performance in the current fiscal period, according to a bourse filing.
Furthermore, United Mining Industries Co. saw a slight decrease in its revenue, recording SR240,327 in 2023, a 0.6 percent drop from SR241,813 the year before.
However, the company’s net profit experienced a massive uptick recording SR35,830 last year, an 11.81 percent rise from the year before, largely attributed to a change in the sales mix, according to a bourse filing.
Moreover, Nahdi Medical Co. reported a marginal increase in net profit for 2023, totaling SR892.6 million, up 0.5 percent from the previous year.
The company faced a slight decline in gross profit due to investments in sales promotions, leading to a gross margin of 40.4 percent.
Despite this, strategic investments in healthcare, e-commerce, and the UAE operations were supported by efficient cost management, keeping operating expenses steady.
Arabian Drilling also announced its financial results for 2023 reporting a 28.5 percent growth in revenue to reach SR3.4 billion.
The company’s net profit also increased to reach SR605 million, an 8.4 percent growth from 2022.
Experts to discuss cybersecurity issues at Riyadh forum
RIYADH: Top decision-makers and entities will convene to discuss pivotal issues in the digital realm at the fourth edition of the Global Cybersecurity Forum in Riyadh, scheduled for October.
Under the patronage of King Salman, the National Cybersecurity Authority is organizing the event on Oct. 2 and 3, centered around the theme “Advancing Collective Action in Cyberspace.”
The objective is to bolster international cooperation on critical digital issues, attracting elite participants and prominent global entities in the cybersecurity domain.
This year’s forum will build on the principles and objectives established during previous events, contributing to the enhancement of international cooperation in cybersecurity and stimulating economic and social development in this field, according to the Saudi Press Agency.
The conference will feature several dialogue sessions focusing on key areas, including addressing cyber disparities and understanding online behavior and social dynamics in the digital world to foster integration.
An additional topic will include how to bridge social gaps between communities, organizations, and nations.
Additionally, talks will delve into the cyber economy, exploring how it can spur development by cultivating markets in the sector.
Participants will explore strategies for harnessing emerging technologies to propel progress and innovation.
The forum acts as a global platform that gathers decision-makers, government officials, businesses, cybersecurity experts, academics, and nongovernmental organizations. It operates in accordance with the strategic objectives of the GCF Institute to strengthen cybersecurity globally, foster economic and social development, and coordinate with and support relevant international initiatives.
A forum recently held in Geneva, organized in partnership with Saudi Arabia’s UN Mission, emphasized collaborations in addressing challenges and opportunities in cyberspace.
The event on Jan. 23, organized by the GCF, drew over 60 diplomats, UN representatives, and NGO officials. They participated in the GCF Institute’s endeavors to foster global dialogue, research, and initiatives related to cyberspace.
In his opening speech, Abdulmohsen Majed bin Khothaila, ambassador and permanent representative of Saudi Arabia to the UN, underscored the GCF as a symbol of the Kingdom’s commitment to strengthening global cybersecurity efforts.
He highlighted that the GCF reflects Saudi Arabia’s resolve to unify international cybersecurity endeavors and promote initiatives that foster peace, prosperity, and positive socio-economic impact worldwide.