Saudi Arabia calls for urgent OPEC+ meeting to stabilize oil market

“The invitation to the OPEC + meeting comes in appreciation of President Trump's request and friends in the United States,” a Saudi official said. (File/AFP)
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Updated 03 April 2020
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Saudi Arabia calls for urgent OPEC+ meeting to stabilize oil market

  • The announcement comes after Crown Prince Mohammed bin Salman and US President Donald Trump held a phone call to discuss the matter

LONDON: Saudi Arabia called for an urgent OPEC+ meeting on Thursday in an attempt to stabilize the oil market during the coronavirus pandemic.
“We previously tried to reach an agreement in the OPEC + group, and a consensus could not be reached at the time,” an official said, adding that “The invitation to the OPEC + meeting comes in appreciation of President Trump's request and friends in the United States.”

The announcement comes after Crown Prince Mohammed bin Salman and US President Donald Trump held a phone call to discuss the matter.

 

 


US intel suggests Putin may not have ordered Navalny death in prison: WSJ

Updated 14 min 7 sec ago
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US intel suggests Putin may not have ordered Navalny death in prison: WSJ

  • The Russian prison service said that Navalny collapsed on February 16 after a walk at the isolated camp

WASHINGTON: US intelligence agencies believe that while the Russian president was ultimately responsible for the death of opposition leader Alexei Navalny, he didn’t order it to take place when it did, the Wall Street Journal reported Saturday.
The finding, which the Journal said was based on both classified intelligence and an analysis of public facts, raises new questions about Navalny’s death in a remote Arctic prison camp, which led to a new round of sanctions against President Vladimir Putin’s Russia.
Among those facts was the timing of the opposition leader’s death in mid-February, which overshadowed Putin’s reelection a month later.
While the new finding does not question Putin’s responsibility for Navalny’s death, the CIA and other US intelligence agencies believe he probably didn’t order it “at that moment,” the Journal said, quoting people familiar with the matter.
It said that some European officials, briefed on the US finding, were skeptical that the 47-year-old dissident could have been targeted without Putin’s prior knowledge, given the tight controls in today’s Russia.
President Joe Biden and several other world leaders have publicly expressed little doubt about the matter. “Make no mistake. Putin is responsible for Navalny’s death,” Biden said after the stunning news of the death emerged.
The Russian prison service said that Navalny collapsed on February 16 after a walk at the isolated camp. It said attempts to revive him failed.
Navalny had seemed relatively healthy and in good spirits when seen in a video just a day earlier.
A week before that, he reportedly had been the subject of high-level talks over a potential prisoner swap that could have freed him.
Navalny had been serving a 19-year prison sentence on charges he and his backers insist were fabricated.
He had earlier survived a poisoning that US and other investigators blamed on the Kremlin. Russian officials have denied culpability in the poisoning or in his death.
A number of prominent Kremlin opponents have died, been jailed and or forced into exile in recent years.
Reached by AFP, the National Security Council declined to comment on the report.
 

 


Some US officials say in internal memo Israel may be violating international law in Gaza

Updated 28 April 2024
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Some US officials say in internal memo Israel may be violating international law in Gaza

  • The submissions to the memo provide the most extensive picture to date of the divisions inside the State Department over whether Israel might be violating international humanitarian law in Gaza

WASHINGTON: Some senior US officials have advised Secretary of State Antony Blinken that they do not find “credible or reliable” Israel’s assurances that it is using US-supplied weapons in accordance with international humanitarian law, according to an internal State Department memo reviewed by Reuters.
Other officials upheld support for Israel’s representation.
Under a National Security Memorandum (NSM) issued by President Joe Biden in February, Blinken must report to Congress by May 8 whether he finds credible Israel’s assurances that its use of US weapons does not violate US or international law.
By March 24, at least seven State Department bureaus had sent in their contributions to an initial “options memo” to Blinken. Parts of the memo, which has not been previously reported, were classified.
The submissions to the memo provide the most extensive picture to date of the divisions inside the State Department over whether Israel might be violating international humanitarian law in Gaza.
“Some components in the department favored accepting Israel’s assurances, some favored rejecting them and some took no position,” a US official said.
A joint submission from four bureaus — Democracy Human Rights & Labor; Population, Refugees and Migration; Global Criminal Justice and International Organization Affairs – raised “serious concern over non-compliance” with international humanitarian law during Israel’s prosecution of the Gaza war.
The assessment from the four bureaus said Israel’s assurances were “neither credible nor reliable.” It cited eight examples of Israeli military actions that the officials said raise “serious questions” about potential violations of international humanitarian law.
These included repeatedly striking protected sites and civilian infrastructure; “unconscionably high levels of civilian harm to military advantage“; taking little action to investigate violations or to hold to account those responsible for significant civilian harm and “killing humanitarian workers and journalists at an unprecedented rate.”
The assessment from the four bureaus also cited 11 instances of Israeli military actions the officials said “arbitrarily restrict humanitarian aid,” including rejecting entire trucks of aid due to a single “dual-use” item, “artificial” limitations on inspections as well as repeated attacks on humanitarian sites that should not be hit.
Another submission to the memo reviewed by Reuters, from the bureau of Political and Military Affairs, which deals with US military assistance and arms transfers, warned Blinken that suspending US weapons would limit Israel’s ability to meet potential threats outside its airspace and require Washington to re-evaluate “all ongoing and future sales to other countries in the region.”
Any suspension of US arms sales would invite “provocations” by Iran and aligned militias, the bureau said in its submission, illustrating the push-and-pull inside the department as it prepares to report to Congress.
The submission did not directly address Israel’s assurances.
Inputs to the memo from the Office of the Special Envoy to Monitor and Combat Antisemitism and US ambassador to Israel Jack Lew said they assessed Israel’s assurances as credible and reliable, a second US official told Reuters.
The State Department’s legal bureau, known as the Office of the Legal Adviser, “did not take a substantive position” on the credibility of Israel’s assurances, a source familiar with the matter said.
State Department spokesperson Matthew Miller said the agency doesn’t comment on leaked documents.
“On complex issues, the Secretary often hears a diverse range of views from within the Department, and he takes all of those views into consideration,” Miller said.

MAY 8 REPORT TO CONGRESS
When asked about the memo, an Israeli official said: “Israel is fully committed to its commitments and their implementation, among them the assurances given to the US government.”
The White House did not respond to a request for comment.
Biden administration officials repeatedly have said they have not found Israel in violation of international law.
Blinken has seen all of the bureau assessments about Israel’s pledges, the second US official said.
Matthew Miller on March 25 said the department received the pledges. However, the State Department is not expected to render its complete assessment of credibility until the May 8 report to Congress.
Further deliberations between the department’s bureaus are underway ahead of the report’s deadline, the US official said.
USAID also provided input to the memo. “The killing of nearly 32,000 people, of which the GOI (Government of Israel) itself assesses roughly two-thirds are civilian, may well amount to a violation of the international humanitarian law requirement,” USAID officials wrote in the submission.
USAID does not comment on leaked documents, a USAID spokesperson said.
The warnings about Israel’s possible breaches of international humanitarian law made by some senior State Department officials come as Israel is vowing to launch a military offensive into Rafah, the southern-most pocket of the Gaza Strip that is home to over a million people displaced by the war, despite repeated warnings from Washington not to do so.
Israel’s military conduct has come under increasing scrutiny as its forces have killed 34,000 Palestinians in Gaza, according to the enclave’s health authorities, most of them women and children.
Israel’s assault was launched in response to the Hamas attack on Israel on Oct. 7, in which Israel says 1,200 people were killed and 250 others taken hostage.
The National Security Memorandum was issued in early February after Democratic lawmakers began questioning whether Israel was abiding by international law.
The memorandum imposed no new legal requirements but asked the State Department to demand written assurances from countries receiving US-funded weapons that they are not violating international humanitarian law or blocking US humanitarian assistance.
It also required the administration to submit an annual report to Congress to assess whether countries are adhering to international law and not impeding the flow of humanitarian aid.
If Israel’s assurances are called into question, Biden would have the option to “remediate” the situation through actions ranging from seeking fresh assurances to suspending further US weapons transfers, according to the memorandum.
Biden can suspend or put conditions on US weapons transfers at any time.
He has so far resisted calls from rights groups, left-leaning Democrats and Arab American groups to do so.
But earlier this month he threatened for the first time to put conditions on the transfer of US weapons to Israel, if it does not take concrete steps to improve the dire humanitarian situation in Gaza.


President Joe Biden says he’s ‘happy to debate’ Donald Trump. Trump says he’s ready to go

Updated 54 min 4 sec ago
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President Joe Biden says he’s ‘happy to debate’ Donald Trump. Trump says he’s ready to go

  • Biden had previously been vague, saying in March that whether he debated Trump “depends on his behavior”
  • During the 2020 general election, Biden was notably irritated by Trump’s antics in the chaotic first debate

NEW YORK: President Joe Biden said Friday that he is willing to debate his presumptive Republican opponent, Donald Trump, later this fall – his most definitive comment yet on the issue.

Trump said he was ready, though he questioned Bidens’s willingness.
Biden’s comment came during an interview with the Sirius XM radio host Howard Stern, who asked him whether he would participate in debates against Trump.
“I am, somewhere. I don’t know when,” Biden said. “But I’m happy to debate him.”
Until now, Biden’s reelection campaign had declined to commit to participating in the debates, a hallmark of every general election presidential campaign since 1976.
Biden himself had also been vague, saying in March that whether he debated Trump “depends on his behavior.” The two men debated twice during the 2020 general election — a campaign year constrained significantly by COVID-19 restrictions — and Biden was notably irritated by Trump’s antics in the chaotic first debate that year.
“Will you shut up?” Biden told Trump at one point during the first debate.
Trump campaign officials have said for some time that the former president is prepared to debate Biden anytime, and Chris LaCivita, Trump campaign senior adviser, quickly responded to Biden’s remarks on the social media site X: “OK let’s set it up!”
Later Friday, Trump reacted to Biden’s new public willingness to debate by saying “everyone knows he doesn’t really mean it” but suggested either next Monday evening, Tuesday evening or Wednesday evening, when Trump will be campaigning in Michigan. The former president is suggesting evenings because he is otherwise attending proceedings for his hush money criminal trial in New York.
Trump is required to be in court every day but Wednesdays. In a statement on his own social media platform, Trump also challenged Biden to debate at the Manhattan courthouse on Friday night, since both men were in New York at the same time. Biden has since returned to Washington.
Yet Friday is also Melania Trump’s birthday, and the former president had already said earlier in the day that he was flying back to Florida to spend the day with his wife once his trial had wrapped for the day.
As Trump left court for the day in New York on Friday afternoon, he repeated his challenge and said: “We’re ready. Just tell me where. I will do it at the White House. That would be very comfortable, actually.”
Trump did not participate in any of the Republican primary debates this cycle.
The Commission on Presidential Debates has already announced the dates and locations for the three general election debates between the presidential candidates: Sept. 16 in San Marcos, Texas; Oct. 1 in Petersburg, Virginia; and Oct. 9 in Salt Lake City. The lone vice presidential debate is slated for Sept. 25 in Easton, Pennsylvania.
A dozen news organizations, including The Associated Press, wrote to the Biden and Trump campaigns earlier this month to urge both candidates to participate in the debates.
Biden engages in relatively fewer press interviews than his predecessors, and his aides tend to choose outlets and media avenues outside the traditional press corps that covers the president in Washington. His interview with Stern on Friday, which ran well over an hour, took on an informal and introspective tone and spanned topics that included Biden’s upbringing, family, and his favorite president (Thomas Jefferson, Biden said).
The interview also occurred the day after The New York Times issued a statement criticizing Biden for shunning formal interviews and conducting fewer news conferences than his predecessors. The newspaper said that its publisher, A.G. Sulzberger, has urged senior Biden officials to agree to presidential interviews not just with the Times but with other news outlets.
Still, the timing of the Stern interview was coincidental; a person familiar with the plans said the White House has been working with the Sirius XM host for weeks to arrange the conversation. The person was granted anonymity to discuss internal planning processes.
Less the “shock jock” of old, Stern still commands a loyal audience. And he’s become known for his conversational interviewing skills. He can turn talks with celebrities into revealing discussions, often by asking things others might be afraid to, but not in confrontational ways.


Gaza war casts shadow over White House correspondents’ dinner

A Pro-Palestinian demonstration encampment is seen at the Columbia University, Saturday, April 27, 2024, in New York. (AP)
Updated 51 min ago
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Gaza war casts shadow over White House correspondents’ dinner

  • The gala dinner and a surrounding series of society events are taking place as the Gaza protest movement has been spreading to colleges across the country, and as police crackdowns on some campuses have led to hundreds of arrests

WASHINGTON: The White House Correspondents’ Association dinner, which annually brings reporters, politicians and a glitzy array of celebrities together in a mostly lighthearted affair, will take place Saturday under very different circumstances, including a call for a boycott by Palestinian journalists.
With President Joe Biden heading a long list of VIP guests, more than two dozen Palestinian journalists this week issued an open letter urging their American colleagues to boycott the dinner.
“You have a unique responsibility to speak truth to power and uphold journalistic integrity,” said the letter. “It is unacceptable to stay silent out of fear or professional concern while journalists in Gaza continue to be detained, tortured, and killed for doing our jobs.”

Students and pro-Palestinian supporters occupy a plaza at the City College of New York campus, during the ongoing conflict between Israel and the Palestinian Islamist group Hamas, in New York City, U.S., April 27, 2024. (REUTERS)

According to the New York-based Committee for the Protection of Journalists (CPJ), at least 97 journalists — including 92 Palestinians — have been killed since war erupted on October 7 with Hamas’s invasion of southern Israel. At least 16 others have been wounded.
In addition to the boycott call, an anti-war coalition is planning a demonstration not far from the Washington Hilton hotel where the dinner is to take place.
The anti-war group Code Pink, part of the coalition, said it planned to “shut down” the dinner to protest “the complicity of the Biden administration in the targeting and killing of Palestinian journalists by the Israeli military.”

President Joe Biden, from right, first lady Jill Biden and Sheila Casey, executive director of Joining Forces, look on as participants run laps on the South Lawn of the White House during the 2nd annual Joining Forces Military Kids Workout, Saturday, April 27, 2024. (AP)

It said its action would be “nonviolent” but offered no details.
For months, Biden’s every move has been shadowed by protesters angry over US support for the Israeli military offensive in Gaza. He has been met by shouts of “Genocide Joe” and noisy calls for an immediate ceasefire in Gaza.
The gala dinner and a surrounding series of society events are taking place as the Gaza protest movement has been spreading to colleges across the country, and as police crackdowns on some campuses have led to hundreds of arrests.

Pro-Palestinian students of Drexel University and the University of Pennsylvania demonstrate as they march from the City Hall to the University of Pennsylvania campus in Philadelphia on April 25, 2024. (AFP)

At the dinner, in keeping with longstanding tradition — interrupted during the Donald Trump years — Biden will sit on the dais keeping a steady smile on his face as a guest comedian rips into him.
This year it will be Colin Jost, a longtime writer and actor with NBC’s “Saturday Night Live,” who seeks to entertain the crowd of VIPs in their tuxedos and flowing evening gowns. (Jost’s wife, actress Scarlett Johansson, is expected to be there.)
The 81-year-old US president, also in keeping with tradition, will then deliver a speech, sure to include some self-mockery, some ribbing of the press and, no doubt, some sharp-elbowed jabs at Trump, his presumptive opponent in November’s presidential election.
The annual dinner has been organized since 1920 by the influential White House Correspondents’ Association, which honors top reporters and awards journalism scholarships.
Last year, 2,600 people attended.
The association declined an AFP request to comment on the boycott call and the planned demonstration.
 

 


PIF set to have $2 trillion in assets under management by 2030: report

Updated 27 April 2024
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PIF set to have $2 trillion in assets under management by 2030: report

  • In March 2024, PIF’s assets under management surpassed $925 billion, up from $700 billion at the end of 2022

RIYADH: Saudi Arabia’s Public Investment Fund is poised to reach $2 trillion in assets under management by 2030, propelling it from 5th to 2nd place globally among sovereign wealth bodies, according to Global SWF.

The organization that monitors activity in this area stated that the PIF’s rapid ascent can be attributed to the fund’s focus on  direct investments, emphasis on  key sectors of the Saudi economy, dedication to sustainability  through leading investments in  renewables and green assets, and active participation in the digital economy.

The institute’s 2024 annual report disclosed that in 2023, PIF took the lead as the top investor among all sovereign wealth funds, allocating $31.6 billion across 49 deals – a 33 percent increase from the prior year. 

This progress elevated the fund by 10 positions between global sovereign investors in new capital deployed within a mere three years.

In just eight years since its restructuring, the Saudi fund has become a dominant force both domestically and internationally, with the aim of advancing Vision 2030 and achieving the status of the world’s largest sovereign wealth fund by the end of the decade.

In March 2024, PIF’s assets under management surpassed $925 billion, up from $700 billion at the end of 2022, securing its position as the fifth largest global sovereign wealth fund, after the government transferred an additional 8 percent stake in Aramco to its portfolio.

The fund strategically delved into co-investments and forged joint ventures to bolster Saudi Arabia’s drive for economic diversification. 

Noteworthy examples include partnerships with mining giant Ma’aden, tire makers Pirelli, and car manufacturer Hyundai.

This was alongside an agreement with Baosteel and Aramco for the construction of a steel mill. 

The report highlighted that unlike numerous sovereign wealth funds that frequently choose co-investing as their primary strategy, both globally and in the Gulf region, PIF stands out with a strong preference for direct investments in private equity.

Specifically, it targets critical sectors of the Saudi economy, including sports and leisure, tourism, and gaming, as well as construction, and heavy industry.

Despite the clear advantages that co-investing offers – such as enhanced due diligence, favorable fee terms, and portfolio diversification – some sovereign investors may shy away due to concerns about deal visibility and relinquishing transaction control to other government funds.

According to the report, PIF stood out from other funds due to its substantial domestic investments, which significantly impacted its international investment capacity relative to other funds.

In 2023, Saudi Arabia’s sovereign wealth fund saw an 18 percent growth in its US equities portfolio, driven by rising stock values. 

PIF maintained a passive approach, keeping major positions unchanged. 

According to the report, its largest holding remained a 63 percent stake in Lucid Motors. 

PIF initiated its investment of $1 billion in the electric vehicle rival to Tesla back in 2018, and following Lucid’s initial public offering three years later has continued to infuse capital into the company.

This included an injection of $2 billion in June 2023, and Lucid is on course to commence EV production in Saudi Arabia by 2025.

PIF’s US-listed portfolio includes $8.1 billion in gaming companies such as Activision Blizzard, Electronic Arts, and Take-Two, reflecting the Kingdom’s plan to invest $38 billion to become a hub for this sector as part of Vision 2030.

In its report, Global SWF discussed the challenges encountered by sovereign investors in recent years and the corresponding solutions they implemented in 2023 to enhance the resilience of their portfolios.

One significant challenge involved addressing the decarbonization of the global economy. This was tackled through the introduction of a new sustainable investment strategy, shedding light on “climate alpha.” This typically refers to investments or strategies that aim to address global warming and its associated risks and opportunities.

This could include investments in companies or projects that are focused on renewable energy and efficiency, sustainable agriculture, clean transportation, and other environmentally friendly initiatives.

Sovereign investors showcased their dedication to sustainability during COP28, highlighted by the UAE’s launch of a $30 billion climate-focused fund, supported by BlackRock and fellow state-backed wealth funds. The goal is to access these areas while also greening existing black assets through de-carbonization.

Meanwhile, Saudi Arabia has taken a leading role in direct investments within the EV and automotive sectors. As well as its stake in Lucid, the Kingdom launched its own EV carmaker, Ceer, in a joint venture with Taiwan’s Foxconn. 

Further partnerships include collaborations with Tasaru for component localization, Hyundai for a car plant, and Pirelli for tire manufacturing.

According to Global SWF, sovereign investors directed a record $26.1 billion towards green assets in 2023, prioritizing investments in the energy transition, including renewables, battery storage, and EVs.

Gulf sovereign wealth funds contributed nearly half of this sum, leading the charge in driving the energy transition agenda.

The report also underscored another challenge encountered by sovereign funds, which is market volatility and the risks stemming from geo-economic fragmentation.

To tackle this issue, fund investors have embraced a more comprehensive total portfolio strategy. This strategy integrates alpha and beta return drivers, merging top-down and bottom-up analyses, with a significant emphasis on diversification.

By adopting this holistic approach, investors gain a thorough understanding of their investments, facilitating more informed decision-making, enhanced risk management, and the opportunity to optimize portfolio performance by focusing on the unique attributes and dynamics of each component within the portfolio.

The rise of disruptive artificial intelligence was also addressed in the report, which noted it represents a significant risk for sovereign investors as it can lead to rapid changes in industries, markets, and investment landscapes.

AI-powered technologies can impact traditional business models, alter consumer behavior, and introduce new competitive dynamics. To address this challenge, one proposed solution by sovereign investors is to integrate AI-powered portfolios into their investment strategies.

By incorporating AI technologies into portfolio management, sovereign funds can leverage advanced algorithms and data analytics to gain valuable insights. 

AI-powered portfolios can analyze vast amounts of data in real-time, identifying trends, patterns, and market signals that may not be immediately apparent to human analysts. This can lead to more accurate risk assessments, better market timing, and enhanced investment decision-making.

Additionally, AI can enable sovereign investors to automate certain aspects of portfolio management, such as rebalancing, trade execution, and risk monitoring. This not only increases operational efficiency but also allows for more agile responses to changing market conditions.

According to the report, 2023 saw sovereign wealth funds adjusting their real estate investments amidst concerns of global interest rate hikes and a potential property bubble.

Despite an overall softening in the market, some segments, such as data centers and affordable housing, saw growth as fund investors aligned with emerging megatrends. Data center investments surged by 150 percent to $7.6 billion in 2023, indicating a strong focus on future-oriented assets.

This shift reflects a move from traditional investments to a more sophisticated strategy, exemplified by PIF’s forming partnerships to develop data centers.

The report flagged up that in 2023, the GCC region – led by the Abu Dhabi Investment Authority, Abu Dhabi’s Mubadala, ADQ, PIF, and the Qatar Investment Authority – saw a record surge in sovereign capital to $4.1 trillion in assets under management, with transactions totaling $82.3 billion.

Projections indicate these sovereign wealth funds could reach $7.6 trillion in assets by 2030. This growth, according to the report, is fueled by high oil prices and a maturing investment landscape, driving economic diversification with growth forecasts of 3.6 percent and 3.7 percent for GCC nations in 2024 and 2025.

In this region, two distinctive sovereign wealth fund management approaches were highlighted by Global SWF. 

Abu Dhabi’s strategy involves the establishment of multiple SWFs, each with specific missions overseen by different royals. Saudi Arabia, on the other hand, centralizes its investment and strategic efforts under PIF, aligned with the government’s overarching vision.

Further, its leaders have no problems in announcing grand plans for the fund, using it in its name to buy football clubs or golf leagues, and in sharing its finances publicly given its fundraising efforts, in a rather refreshing fashion, the report said.

The institute presented updated projections in the State-Owned Investors 2030 section, factoring in the industry’s recovery in assets under management in 2023. 

It anticipates that public pension funds and central banks will reach $54.9 trillion by 2025 and $71 trillion by 2030. By then, Norway’s Norges Bank Investment Management, Saudi’s PIF, and Japan’s Government Pension Investment Fund could lead the table with over $2 trillion in assets under management each.