35 Burst results for "Aramco"
Americans warned of missile, drone attacks by US embassy in Saudi Arabia
"US warning about a possible missile attack in Saudi Arabia US embassy in Saudi Arabia's issued a new alert warning Americans about a potential missile drone attack. The embassy says the attack maybe launched at Riyadh Saudi's capital city. The embassy warns American citizens to stay alert and take necessary precautions. Saudi Arabia has been under periodic attack in recent years by Iranian backed rebels. Last year a drone missile attack damaged Saudi Aramco oil processing facilities with the US military blamed in Iran at the Pentagon Lucas Tomlinson. Fox
China’s Ant Group to Raise $34 Billion in Record IPO
"And Jack Marr says the ant group has set the price of its jewels. Asia AIPO, though he declined to give numbers. The Hong Kong Shanghai offering is expected to be the biggest AIPO ever aims to raise at least $35 billion plus the old five billion options it could go over Saudi Aramco share sale last year on would value and 320 billion. That's more than J. P.
Apple Surges to $2 Trillion Market Value
"Reached an unthinkable level Wednesday. Steve Kastenbaum explain so just two years for Apple's market value to go from one trillion to $2 trillion. It's the first publicly traded US company to hit that mark. It happened around 11 A.m. when the price per share rose to Ford in $67.77. But the price retreated a little in afternoon trading. A few days ago, Apple surpassed the Saudi oil company Aramco to become the most highly valued publicly traded company in the world. Despite the economic fallout from the Corona virus pandemic, Apple posted double digit growth in the third quarter. The work from home trend and online sales boosted their earnings. STEVE Kastenbaum,
Apple Surges to $2 Trillion Market Value
"The value of Apple computer reached an unthinkable level Wednesday. Steve Kastenbaum explain it took just two years for Apple's market value to go from one trillion to $2 Trillion is the first publicly traded US company to hit that mark. It happened around 11 A.m. when the price per share rose to 40 and $67.77. But the price retreated a little in afternoon trading. A few days ago, Apple surpassed the Saudi oil company Aramco to become the most highly valued publicly traded company in the world. Despite the economic fallout from the Corona virus pandemic, Apple posted double digit growth in the third quarter. The work from home trend and online sales boosted
Apple is 1st US company to be valued at $2 trillion
"It's up 7/10 of a percent. It's leading the way among the big tech companies, and it's getting really close to the point where the company would be valued at $2 Trillion. It only has to be up 1.2% today to reach that milestone. And if it gets there, it would be the first U. S company ever to do so. Saudi Aramco was just above
Apple is now the world's most valuable company, dethroning oil giant Saudi Aramco
"And Apple not only announced the four for one stock split. It also surpassed state oil giant Saudi Aramco to become the world's most valuable traded company. Market valuation of $1.84
Amazon, Apple and Facebook shares soar amid pandemic
"For the nation's big tech Titans, Amazon, Apple and Facebook all reported blowout numbers for the spring quarter, sending their shares sharply higher in the Friday session, and Apple not only announced the four for one stock split. It also surpassed state oil giant Saudi Aramco to become the world's most valuable traded company, a market valuation of $1.84 trillion. Meanwhile, various reports Friday said Microsoft is discussing a potential purchase of popular short video app Tic Tac.
Apple is now the world's most valuable company, dethroning oil giant Saudi Aramco
"Stocks gained. An Apple became the most valuable company in the world as its stock hit another record high, closing up more than 10%. Apple dethroned Aramco from the top spot. Saudi Arabia is national oil company
Apple, Microsoft Become First American Companies Worth $1.5 Trillion... On the Same Day
"Wednesday. Apple became the first publicly traded American company to reach a one and a half trillion dollar valuation. That's right. The Silicon Valley superstar continued at Sky High trajectory despite being close to foot traffic all over the world since March, perhaps even more remarkable than the news of Apples, record-breaking valuation was that the same day Microsoft also crossed the one point five trillion dollar mark share prices of Google and Amazon shot up as well although their market valuations didn't quite achieve such celestial levels. Prior Wednesday the only publicly traded company in the world. Worth that much was oil company Saudi Aramco it went public last December, so why the sudden jump in the market analysts say investors like big tech right now because lockdowns made us more dependent on technology for work and leisure than ever before stuck at home, we all downloaded programs like crazy from apple's for the load jumped by a third in the last couple of months according to Morgan Stanley, we also glommed onto the apple. Watch research firm strategy analytics. Apple sold close to eight million of the smart watches in the first quarter up almost twenty five percent from a year earlier according to Fast Company finally investors are looking ahead hopefully to apple's planned introduction of a five G. capable phone, the IPHONE twelve possibly by next month five G. is the next generation cellular network one that promises greater bandwith with and much higher speeds. And rebels in its financial success, it's also responding to global calls for civil rights on Thursday Apple. CEO Tim Cook announced that the company is investing one hundred million dollars in wide ranging racial equity initiatives from increasing its investments in education and training to better diversifying its workforce in supply chain. If apple is the darling of individual customers. Microsoft remains the choice of corporate America these days, a lot of corporate. America's employees are operating from the dining room table. In order to function companies are scrambling to provide workers with cloud, based productivity and communication software like Microsoft three, sixty five and teams, according to Barron's, but let's not give apple and Microsoft all the credit for their eye-popping valuations. Some of their boost came from. Shall we say irrational exuberance in the market overall now bear with me for a second because we're going to be explaining what happened in the market last week? which is a century in Covid nineteen time. Last Tuesday and Wednesday. Investors seem to want to believe that the pandemic was behind us. That reopening the economy would not only go smoothly, but that millions of unemployed people would get their jobs back fast. With hope, not necessarily evidence says its foundation. The market lifted to new heights. Investors were even gobbling up shares of companies in the hardest hit industries, airlines and hotels, and then evidence that we are not passed. The pandemic surfaced there are now more than two million cases of covid nineteen in America in the US more than one hundred ten thousand people have died according to Johns Hopkins University case counter spiking in several states that reopened around Memorial Day including California Florida, Texas and Arizona. Seeing these numbers investors hopes deflated, and many scrambled to sell on Thursday. The Dow Jones Industrial Average sank more than eighteen hundred points, the biggest single-day drop in the stock market, since March as many already warned, there had been no evidence that the virus was gone and the increase in cases prove those skeptics right now. Investors are worried about a dreaded second wave which could force lockdowns all over again at least regionally added to those worries remarks by Fed Chairman Jerome Powell on Wednesday. He warned that the recovery will take a long time. Time some people may struggle for years to find new jobs in some may never be able to return to their old industries. He said Powell's gloomy outlook, plus the coronavirus counts at up to wall. Street's sharp drop, but there were certain companies that seemed relatively immune. Yep, you got it. Apple and Microsoft, both fell slightly with the rest of the market. Apple ended the day just a wee bit under one point, five trillion and market value. Microsoft fell more, but don't cry any tears for them. They ended at one point four trillion. For Big Tech companies, more lockdowns means many of us will continue living and working in virtual worlds, and that means buying yet more. APPs streaming services cloud based software and the like what this means for the future of these longtime rivals, well those who like watching races or now anticipating who will reach two trillion dollars in valuation I apple or Microsoft? And went even with the economy sputtering when it comes to business wars in big tech. The goalposts just keep moving forward.
The Future of the Energy Sector
"The energy sector and the region's economies OB battling both covered nineteen and the oil price crash as tensions between market forces and management in the oil sector increase the Arab petroleum investment corporation's annualized no presents a weakening landscape and possible merges on the horizon let's bring it later Ben Ali she's the chief economist at Arab petroleum investments corporation they're always great to get your take on what the future looks like for us we we drilled into the numbers and and you talk about the private sector I suppose this is the big risk group was just talking about that about capital the private sector's share of energy investment is going to drop by twenty percent this year versus twenty two percent last year what are the biggest risks from not dissipation of private sector investment hello good good good morning minus good morning user I'm so I'm so glad to be with you this morning we've noticed a major actually degree professional degrees in a private investments in the energy sector indeed and that's not I don't think that's something that is of primary events in the region because in this region this crisis came a time where the private sector was differently feeble and and and why I'm sure I laid out today is a landmark moment over the last twenty four hours have been because you had Saudi Aramco executing the acquisition of a seventy percent stake in Saudi basic industries block trades worth sixty nine billion dollars huge transaction but maybe a bit of a scene setter of what is to come in terms of mergers in terms of acquisition right I mean it's it's good that you are reminded us of that acquisition but that's something that was in the cards before the current crisis I think what's twenty twenty is big enough is is a global reset you will have you wouldn't have to expect a restructuring of the value chains I would say in favor of the producers which are in the best physical position and and social media Ramco and others are are different in that position and also the players are facing the least leveraged answer twenty twenty with the beast yeah that's definitely something that's that's we are looking at and these will be also the same players that would be the best targets in terms of acquisitions so you would have in the energy sector overall and the associated I would say petrochemicals and service sectors as well more pressure to preserve a longtime fight fish increase up to to preserve evidence as well so that explains the there were potential wave of mergers and acquisitions that we can see which are June to the twenty twenty crisis is as we mentioned all reporting investments are being cuts and that's something that is I would say quite similar to what we've seen and different in the previous downturns the only difference this year is it started in the first it right away back in the twenty fourteen twenty sixteen downtown if you remember a user it took a couple of years to see those degrees of twenty five point twenty point twenty five percent year on year in capital investment the state this year resting their heads globally in twenty twenty and in the region of the oil and gas sector is the one that takes him most of the major hates because in in in theory you would see a utilities and renewables they can the most hated but this year that the upstream I would say and on the downstream part of the business we take most of most of the hits we might see and can I just ask you can I just ask you on on that line of thought on the on anime I would rather go could it be because typically this MNA upstream and dine street is within borders it is within national parameters to deliver those efficiencies through MNA what is the probability of something much more radical happening and cross border Annonay within the oil and gas going forward as a result of the pressure from cove it this year I that's a great question mine is I think the probability is higher and that's something that we have been tracking in at last year actually before Kobe nineteen crisis starts it because we already started to see the change of the nature of the relationship between institutional investors as a whole including the largest ones like this summer twelve fines and the energy sector so the energy sector as a whole is is coming to twenty twenty with squeezed margins across the value chain I mean I can give you the example of a less than ten percent to the specific parts of the gas value chain where we can still see robust fundamentals and robust demand going forward and also the fact that the energy sector over the last decade has been delivering very very long wait times due to investors and shareholders compared to other sectors so I wouldn't be surprised if you see including differently including cross borders MNAs in in the future and the emergence of new business models because I think most of the nineteen one thing that we learned is our specialization of with not to be the rights of business strategy to go or and a bit more diversification and integration across the value chain to be able to to balance the risks yeah and and and have a comfortable second goal of the value chain in and not so good so you will see that measure our larger players more integrated and ready yeah after all I would say the problems are that you will get a circle in nineteen
Saudi Aramco profit falls 25% but dividend in line with planned payout for year
"M. oil declined as al circulated over Saudi Arabia's ability to implement additional pledged production cuts the kingdom says it will pump seven and a half million barrels a day next month about a million barrels below it's official opened plus output target and the lowest level for eighteen years as discussed this with the nasdaq senior energy director Tom R. as in our Tom are great to have you back so we have seen the rise in oil prices in the regular New York session but then those gains being raised what does this tell us about how big the supply glut is at the moment and how much Saudi Arabia's latest moves could help I I think that the market was a little taken aback by Saudi's announcement today we're only eleven days into what led the historic agreement in terms of the duration and the degree of class and already they're cutting further so it was sort of a negative indicator in terms of a weaker that they're seeing on the demand side more broadly I do think that the oil fundamentals are improving a little bit from a low base and we see that reflected in the price you know what I am quite a bit over the last couple sessions although not today I think that the compliant being brain games you're more interviews like this one on Bloomberg television streaming live on Bloomberg dot com and on the Bloomberg mobile app or check your local cable listings market headline breaking news twenty four hours a day at work dot com business please visit Bloomberg business slash and I'm here in Moscow U. S. stock index futures are edging higher this morning European stocks gaining this as investors take in stride an uptick in corona virus infections in several nations and signs of fresh trade tension oil is advancing we check the markets every fifteen minutes throughout the trading day on Bloomberg S. and P. futures up about eleven points Dow futures of a hundred sixteen nasdaq futures up thirty two attacks in Germany is up three tenths of a percent ten year treasury that'll change your point seven zero percent the yield on the two year point one seven percent NYMEX crude oil is up almost five percent of a dollar nineteen to twenty five thirty three a barrel comics gold is a half percent or eight dollars thirty cents at seventeen oh six ten an ounce the euro one point oh eight
Oil falls 3% as Saudi, UAE plan for higher output capacity
"Saudi Arabia's oil company Aramco says he will increase production capacity to thirteen million barrels a day from twelve million per day the majority state owned companies announcement made on the Saudi stock exchange did not say when the capacity increase will take place Ramco says the decision to increase the capacity was directed to the company from the Saudi energy ministry the move also seem to make good on the country's promise over the weekend to increase output after Russia refused to cooperate on cutting production oil prices this morning are down nearly four percent of the U. S. at thirty three dollars a barrel off nearly a dollar
Saudi Arabia increase oil output to record high
"The Dow Jones industrial average is headed for a rebound this morning after Monday's drop of more than two thousand points Saudi Arabia's state run oil giant Saudi Aramco says it'll increase its crude oil production to more than twelve million barrels per day next month that would be a record amount today's announcement comes after we can tell he promised to increase output after Russia refused to cooperate on cutting production leading to Monday's major
Saudi state oil giant's shares fall 10%, halting trading
"Giant Saudi Aramco saw its shares drop by ten percent as Riyadh's of stock market open on Monday halting trading the total market only allow stocks to fluctuate by ten percent a day meaning it halted trading as the market open the drop came as global oil prices suffered their worst loss this is the start of the nineteen ninety one Gulf War other Mideast markets fell as well as the new corona viruses affecting global energy prices in OPEC failed to make a production cut deal with Russia last
Oil plunges 24% for worst day since 1991
"The state oil giant Saudi Aramco saw its shares drop by ten percent as Riyadh's stock market open on Monday halting trading the total market only allow stocks to fluctuate by ten percent a day meaning it halted trading as the market open the drop came as global oil prices suffered their worst loss this is the start of the nineteen ninety one Gulf War other Mideast markets fell as well as the new corona viruses affected global energy prices and OPEC failed to make a production cut deal with Russia last week Jeremy houses earlier a coronavirus concerns led Saudi Arabia to cut off air in C. travel to and from Bahrain Egypt Iraq Italy Kuwait Lebanon South Korea Syria and the United Arab Emirates all of that after the kingdom earlier closed off its land borders as
Oil Prices Dive as Saudi Arabia Takes Aim at Russian Production
"So the headline from Barron's this morning says your retaliation that's the best way to describe Saudi Arabia's response to the latest OPEC meeting Russia a non OPEC member refusing to agree to OPEC's demands to cut one and a half million barrels per day that in turn leads Saudi Arabia the state oil giant Aramco to announce they would open the spigots and cut their prices by upwards of six dollars per barrel that's what caused the huge crude price dropped some thirty two percent Sunday night to about twenty eight dollars a barrel levels not seen since the bottom of the last crash February of twenty sixteen okay so bad that Iranian petroleum minister yeah I called this meeting one of the worst meetings ever some of these OPEC meeting to get kind of contentious right it is a complete break down he says the founder of the commodity oriented hedge fund L. gal Terry says that that we could go down below twenty dollars per barrel he did not predict the crash but we've been preparing for it we believe that over production in the U. S. from fracking and the rise of alternative energy would eventually put a damper on prices and that's where we are for sure at this point in time yeah coming into twenty twenty the expected prices to be yet range bound after ending twenty nineteen at sixty one dollars per barrel their bridges project team yep fifty five dollars per barrel then of course the corona virus news broke and they they edged things down to about forty eight dollars per barrel no this if producers didn't agree to the one point five million barrels a day cut yeah we could go back down to the prices we saw in twenty fifteen to twenty sixteen and that appears to be what is coming to fruition on this Monday
Stocks plunging anew on virus fears and oil price crash
"Are the oil markets have crashed more than thirty percent off to the disintegration of the APEC plus salons is triggered an all out price war between Saudi Arabia and Russia at the opening of Asian trading Brent futures tumbled the most since the first Gulf War Goldman Sachs is when prices could drop to near twenty dollars a barrel well let's pick up on that with the Bloomberg reporter Ameri Holden who joins us on the line from New York studios Sir I'm ready good morning let's first will what is why is this happening fundamentally what is going on in the markets good morning while this comes after that disintegration of the OPEC plus meeting and really the break up of the group they didn't even decide to roll over the cuts they decided on in December and really you as Bob McNally puts it Riyadh is furious and they tend to teach Russia a lesson by crashing these oil prices so you saw over the weekend Aramco went out and they cut by the most in ten thirty years on their on their crude prices that's gonna have a rollover to fact to all the other Gulf producers and Russia's going to have to respond and you saw the price collapse and and this is something that even in the thirties any Russia has definitely less smaller breakeven than Saudi but even the thirty these are numbers that's going to even have president Putin start to worry and the idea is to try to push Russia to come back to the negotiating table but it's very risky this is very risking we're seeing it affect not just the oil market this is going to have this is going to affect every part of the global economy yeah absolutely I mean it could basically savage national budgets I mean all of the national budgets of the big oil producers but that is a tough because you say that Saudi has used before though not to this extent I mean it's a very difficult time for it to make this move yeah and that's and Morse put it really well this is different than everyone keeps comparing it to the price worth two thousand fourteen but this is different this is the first time ever we're gonna have significant over supply from the producers at coincides with demand Shockley of complete demand destruction so while we don't have the demand out there which we saw from Asia now we see it in Europe and the U. S. as the court of ours fears continue to extend flights are grounded towns quarantine kids are staying home at school now we're going to have on top of that demand destruction the fact that these producers are just going to start to ramp up their production the Saudis are producing someone in the nine billion million dollars about range they're signaling to the market that they are going to go to ten and then potentially to their capacity which is twelve million barrels a day that is something that is scary but I think for the problem with Russia is that they went into this meeting that willing to do something if it was tiny but I think it was personal and logistics personal front they don't want to be put in a corner I think that ultimatum was a bit scary for them given the fact that they don't want to set a precedent to pack it was really interesting because OPEC released their own press release that that first day and usually they would wait for Russia to come to the table before they say what they're even interested in doing so they really backed into the corner and clearly put did not respond well to that secondly many are talking about the fact that I've talked to a lot of traders and hedge funds going into that meeting saying that Russia just wants to put these low cost producers out A. K. A. shale and Bob McNally from rapid makes another really good point talk about the fact that what Russia could do is that they start to boost production and then come back to the table when they do ultimately cut it's going to be from a much higher level to their end of may be able to maintain a bigger market share Annemarie I suppose briefly there's always the possibility China signaling very much that it wants to come back online trying to re engineer its economy back into normal I mean that could be a resurgence in the Mumbai gas yes and they're going to be winners from this any low oil prices is definitely going to be good for consumers around the world kind of course being one of them the world's largest oil importer to their recovery from the virus will be key for the global demand and cheaper oil prices will clearly help them also it'll help US consumers US consumers at the gas prices at the gas pump and really consumers around the world the problem with the U. S. is that it's going to be short term gain and I think long term pain if this goes on for longer because as city says the shale breakeven is forty dollars about we're ready in the twenties on WTI in the thirties on Brent so this is going to be a big alarm for Texas in the
Americans find oil in Saudi Arabia - Mar. 3, 1938
"Today is March. Third Twenty twenty. The Day was March third. Nineteen thirty eight. A group of oil prospectors working for an American company discovered a commercially viable source of Petroleum Mayor Demaim in Saudi Arabia since then Saudi Arabia has consistently been one of the world's top oil producers. The Kingdom of Saudi Arabia was established in one thousand nine hundred eighty two when even so combined four regions into one st through conquest even so called for searches for oil a resource that had demand and would be big source of income for a country that needed a boost in its economy in nineteen thirty three. Saudi Arabia signed a contract with the Standard Oil Company of California. Also known as so cow. So cal was granted the right to prospect for oil in Saudi Arabia's eastern provinces side note. So cal is now. Chevron in September of that year American geologist arrived in Saudi Arabia to begin surveys of the land by car airplane. A couple of months later the California Arabian Standard. Oil Company was formed. Cassocks name was later changed to Arabian American Oil Company or Aramco. Geologists began surveying an area around ideological formation near the city of Demaim on the east coast of the country drilling. The first began in April of nineteen thirty. Five in terms of the second whale started in February of Nineteen thirty six soon. More wells were authorized in the area. Those wells did produce some oil but most of them eventually produced more water than oil. Demaim Oilwell number seven at first seemed like it would also be fruitless. The well reached more than three thousand feet beneath the earth. And no water or oil had been found but chief geologist Max. Steiner key thought that they would find oil in the will and he told the company to keep drilling they did and on March third nineteen thirty eight. They struck a significant amount of oil within three weeks. The well had produced over one hundred thousand barrels of oil. In the beginning the oil was sent to. Bahrain barred for export but in nineteen thirty nine. The first tanker load of oil was shipped overseas now. That castle had found oil. It continued mapping and exploring Saudi Arabia looking for more by nineteen forty nine Kazakh. Now Aramco had reached a production of five hundred thousand barrels per day by nineteen fifty. The Trans Arabian pipeline. Had Begun Operations Aramco already paid Saudi Arabia a fee and other benefits but that year. Aramco began to split its profits but the Saudi government nineteen seventy-three the Saudi government purchased twenty five percent of Aramco by the next year it increased. Its stake to sixty percent and in one thousand nine hundred eighty all of course oil rights production apparatus and facilities came under government control by this time demaim oilwell number seven alone have produced more than twenty seven million barrels. Eight years later the company became Saudi Aramco over the next few decades. The company continued to expand its operations and production fuelling Saudi Arabia's economy of course oil production in Saudi Arabia has been an issue closely tied to economics politics and the environment today. Saudi Arabia is the world's second largest crude oil
"aramco" Discussed on Bloomberg Radio New York
"Week Saudi Aramco made its trading debut following the biggest IPO ever which valued the company at one point seven trillion dollars the shares surged ten percent putting around because market cap at a record one point eight trillion within striking distance of the emblematic two trillion dollar figures sought by the crown prince Liam Danning Bloomberg opinion energy columnist is here so Liam you wrote a column that put the Saudi Aramco valuation at just under one point five trillion dollars were you wrong in your projections after seeing how it popped on the first day of trading well you know wrong news an ambiguous I think particularly insulin about the around come on the way to think about this is you know whenever you go to a bank and you want to sell a company or you want to sell shares or you want to you know by a company nine times out of ten the client already has a number in mind now when it comes to prince Mohammad bin Salman and the sale of Saudi Aramco he definitely had a figure in mind it was two trillion dollars he told everyone that number you know even before we got close to having the IPO and that number is kind of subtle design ever since it was first mentioned which let's not forget was almost four years ago this is been a long time coming as so when when I valued Saudi Aramco him when lots of other people valued Saudi Aramco it was on under the impression that this was going to be a you know recently regular I PO that be a road show it would be listed somewhere like Hong Kong London or New York in the end it was listed in Riyadh now just to give you a sense of how big Riyadh so the stock market is you know the average daily turnover of the entire market is less than a ton of of one oil company Exxon Mobil so when we talk about the valuation and I'm sort of making a bunnies with you OR is right now all of Saudi Aramco it's it's been very narrowly defined in the way it's been IPO it only one and a half percent of the company has been listed the the ten percent pop on the first day of trading was based on the turnover of I think was point zero one six percent of the shares outstanding so clearly anyone is is is quite entitled to take that as a price signal I would probably reserve judgment on that so what led to this pop well I think it's partly because of the way the the IPO was stage managed and you know this is been kind of the theme of some of my recent columns which is that you know the way to think about the around Columbia is in one sense yes it's an IPO a company is selling shares in itself another way to think of it is to think of it as an exercise in selling the Saudi Arabian dream you know it was the this I. P. O. who was part of prince Mohammed bin summons you know vision for reforming the economy from making Saudi Arabia stronger as kind of a coming out party in some ways the shares were sold to Saudi Arabian citizens as as well as what liberty bonds you know and they were even given bank loans to help them buy it so when we think about this popping the share price we have to think about the way the shares were sold in a very narrow way there's a reason I only sold domestically even though they could have gotten more money at a lower valuation if they've gone to bigger pools of finance in places like New York or London they they they instead opted for a very narrow I. P. because that would give them the high a kind of headline number so it has nowhere to go but down I'm I actually think you know at least for the next six months or so it's probably more likely to go up will stay where it is that's partly because there was a you know as often happens with the privatization of a national champion that's a heavy retell element you're selling to the citizens of the country and in this particular instance you know the government bent over backwards to kind of gin up I'm not just patriotic fervor but but also you know a reason to buy the shares and hold on to them so if you're Saudi citizen and you buy the shares if you hold them for six months if you don't sell them you get bonus says at the end of those six months the government has also guarantee the dividend for the first five years of the company which is quite unusual particularly when your main product is oil in the price of that can move all over the place in in in essence what they saw people is sort of like a a preferred shares some was bond like so there's a lot of incentive for the early buyers to hold on to their shares you may not actually see it move that much the big test for Aramco will be what if and when it ever does a more global offering if ever less on a a New York Stock Exchange or or London Stock Exchange or something like that that's when it will be subjected to the kind of valuation than the risk tolerance of international investors who are not you know as bound to the fate of Riyadh as a Saudi citizens so is there any value in it being now the world's largest public company surpassing apple what does that do perhaps for his vision for Saudi Arabia well I mean there's there's a couple of benefits of one is there is the political benefit he has you know ostensibly delivered on the small stone that this thing that was announced four years ago it's pro in some money on the other hand is this you know apples to apples compatible with a company like apple you know with a daily turnover is in the shares is more like I don't know six of seven billion dollars.
"aramco" Discussed on Snacks Daily
"Gifts for your aunt. Because you don't know what to get her from Lululemon and Lululemon is expecting those sales to come in lower lower than but Wall Street now. Here's the funny thing Jack and I noticed in the earnings Lululemon. CEO They then pointed out. Hey Hey everyone. Everyone had go forget the holiday season this year. There are six fewer holiday shopping days than they were last year. It's like investors. You know that like Thanksgiving. Ezra everyone remember Thanksgiving was surprising. Okay good saint page. Yeah and it's like yeah it's Wall Street. These are professional analysts. They know whilst they know Thanksgiving have have counters and they can count and perform. It makes you look desperate that you needed to clarify. Meanwhile Lululemon stock by the way. It's still at a record high. It's double so far this year so any disappointment appointment like what happened. Yesterday gets punished by six percents. So Jack what's the take with our buddies over at Lululemon we noticed Lululemon in the earnings report refers to customers as guests and that led to a big question. Jack and I had Ken Lululemon. Become the next Nike. The answer only if it can become a lifestyle L. Brand last week and investment bank called Cowen wrote a report in which they argued that Lululemon looks financially like Nike laments market value. By the way it's thirty billion dollars Nike's one hundred fifty billion dollars. Investors Love Lulu is being compared to Nike in terms of size and profitability. Because it suggests there's a lot of room to grow but there's also a lot of competitive fierceness in the athletes or space so Lululemon is making lifestyle brand moves aversive. It's adding stores. Does that include built in Yoga sacking. It selling two guys and gals not just for sweat life but for like office where to it. Also just launch personal care products like deodorant. uh-huh cleanser and Nike treats its customers like customers looteries. Its customers as guests by the way this is nick. And both Jack and I own shares of Blew Jackie whip up to take over their Saudi Aramco officially IPO and that Prophet puppy is worth one point nine trillion dollars before you can invest in this one. Make sure you understand. The unique risks and rewards of Saudi Aramco away luggage wasn't honest about its corporate policy of transparent. It's not about what your values are. It's about how an if you live up Tim. Also that baggage company. C O had some serious baggage Jackson. Waiting drought is the best thing. Lululemon did well last quarter but it's outlook trying to get you. J- like Nike snacker. Time for a snack fact of the day Jack Crunch Baseball metrics over here I to rip this guy a off. The Diet is black off the Yankees just signed Garrett Cole as a pitcher they're paying him three hundred twenty four million dollars over nine years. That's thirty six million dollars per a year. That's not yeah you don't need to like it's just a lot of now. Here's the deal. Garrett Cole is a longtime Yankee Fan. There's actually like a picture of him as a Yankee game straight score and he has a win above replacement of six point eight so the Yankees are expected to get six point. Eight more wins with Garrett Cole on the Stash by having him there he's just a good guy and other paint him thirty eighty six million dollars for those six point eight wins above replacement that means ipso facto garrick. Kohl's getting paid like five million dollars per win not too she added snacker. Send us your snack facts in your home towns at Robin Hood Snacks. You want to get him into the positive.
"aramco" Discussed on Snacks Daily
"Thursday December. Tour Wow we gotta heavy deck of Stories. This is a wild mix jack night to sit down after we saw. The snack is ready for the best the best snack day. Saudi Aramco is the largest company on earth and it just it's Ip ran. The numbers can get to ninety billion dollars in profits per year. It's a that's a gigantic number. Sounds like a Lord of the Rings Book It could be a whole novel. second-story everything Lululemon Lululemon did last quarter beat expectations. So why did the stock dropped four percent. Somebody needs a novice Darren Jack and you hate us with the third story. The controversial reversal Unicorn of the day is away travel. It had a rough week issues over slack. Messages employees are get angry are getting fired and the CEO got replaced. We're we're looking at what really went wrong. It wasn't just the drop by the way. This is that luggage company. That has the suitcases. They don't have the batteries no because TSA doesn't want you bring those on those. Those batteries are dangerous before we get to those the verge which is a tech website covers lied news and puts out some great lists came out with the list ical of the holiday season. The one hundred tech gadgets that define the two thousand ten is one of those batteries just mentioned on their two thousand. Ten's are known as between the office. No one knows WISCON- that's kind of why I oughta until you get to the twenties. No one's really paying it. So we're coming to the end of the author or the twins. Whatever you WANNA call him about this? It's kind of a big deal and we're all that to have a lot of time around the holidays. We have nothing to talk about our family except for a list of things that happened in the last. I'm GONNA hit nick with five tech gadgets. That showed up on the top one hundred list. I feel so special. Nick I want you to tell me do you think they're like number one influential thing. Okay or number one hundred like the hall of Shame Ice Cream maker on this the only tech gadget. I know but you Sarah is on there. Okay Sarah that fake machine. That made use snacker spoiler alert came in at number ninety eight. I was your warm. I'd say well we got. We got the Webcam cover over. What was your Mac Book? Yeah what number. I don't say I think privacy such a big thing. Now go with eight. Well remember Mark Zuckerberg put a little sticky note. And that's how we all discovered the same. What was the number number seventy? Okay so the second one. This selfie stick makes a Lotta sense was invented in two thousand fourteen having seen one lately. Except if you're everywhere everywhere I'm going with Fifteen oh that's way off also number fifty eight now. How about the Tesla model three? I don't know which order it's going to. Maybe I'm correct. You know maybe number one is least. He's known them number. One is like most known tesla model three testimony three. I'm going eighty-five interesting. They called it a tech gadget. Right No came in at twenty nine. She's the model three electrifying turfing America over three last couple here. The jewel cigarette vape device. I'm going right in the middle had no luck. I'm going to remedy influential number. Fifty fifty most influential was highly influential number twenty and last but not least for four. What we got the IPHONE Jack? I'm going to go see number one team so obvious. I'm going.
"aramco" Discussed on The Indicator from Planet Money
"Saudi Arabia's state owned oil company. Saudi Aramco is legendary the company owns and runs Saudi. Arabia's oilfields Aramco is is also known to be an incredibly secretive company. It bankrolls the Saudi Royal Family and it's thousands of Princes Aramco makes up most of Saudi Arabia's entire economy so when Aramco announced that it was going to go public and start selling shares of stock people went crazy exchanges. All over the world. Were doing it out out for the IPO. The New York Stock Exchange exchanges in London China Japan. Everyone wanted to be the exchange that was selling Aramco. Stock Banks were also fighting it out for or a piece of the action. There was just so much money at stake. Rumors the company's value at two trillion dollars. Which would make the biggest company in the world wealthier than Apple Assan even Alibaba and this was set to be the biggest? IPO ever but going public means the public owns a chunk of your company usually usually around twenty percent and that comes with a bunch of regulations and transparency. You have to open your books and subject yourself to all kinds of scrutiny. Saudi Aramco Coke really didn't want to do that and it's been more than a year jumping from exchange to exchange trying to find someone who would bend the rules enough that proved to be difficult and and in fact last week. Saudi Arabia announced that the search was over. It was just going to sell the shares of Aramco itself on its own local Saudi exchange which seems like such a downshift township from the initial like Neg ambitions of the ARAMCO IPO. This is the indicator from planet. Money I'm Stacey Vanek Smith Today on the show the Aramco. IPO what happens. And what does it mean for Saudi Arabia this message comes from. NPR sponsor their state farm. Why do you need state farm renter's insurance because it helps protect stuff landlords? Don't like your furniture that gets drenched by a broken pipe. State farm arm Renter's insurance find an agent or get a quote at State Farm Dot Com. Today on the show we're talking with Samantha Gross. She's a fellow in foreign policy. At the Brookings Institution Samantha. Thank you for talking with us. My pleasure happy to talk to you. Do you remember when you first heard that the Saudi government was going to start selling shares shares of ARAMCO's stock. Absolutely I saw the interview that Mohammed bin Salman did with the Economist. My first thought was literally as your Daddy. Now that you're you're talking about this because this is a really selling Saudis family jewels and I was shocked that they would go so far as to consider this. Well I remember the thing that I was so captivated by was so in an initial public offering companies have to open their books their subject. All these reviews use the ideas your companies now owned by the public. You can raise a lot of money but the other side of that is you're subject to all these regulations and everybody gets to see under the curtain like everybody. Nobody gets to see all the things and so. I was all excited at the prospect of all this information coming out about Aramco but it seems like from the very first time I heard about witnesses expected sort of a normal. IPO things changed a little. Well it's been a real trade off the reason why Mohammed bin Salman wanted to do this. It's because he wanted to sell five percent of Aramco take it public in order to get money for his vision. Twenty thirty plan to revolutionize the Saudi economy and to make it less dependent dependent on oil and so that was a serious goal that he intended to bring in serious money for however the trade off is transparency that there's never been around Saudi Aramco. Hamco this is a difficult thing for them to think about. The rewards are great but also the risks and the challenges of that level of transparency are also great. I mean you know there. There is a real upside to an IPO going public. which is you raise a ton of money? There's a real downside. which is you are exposed as a company in a Lotta ways and it is like it almost seemed like they didn't want the downside including what you just mentioned which is that? They wanted to put five percent of the company public which is like a really tiny mountain normally. It's much higher than telling five percent of the world's largest companies still a ton of money. Yes but then. It doesn't mean five percent transparency in order to sell five percent of the company. You need to do just as much much transparency if you would if you're putting the whole thing up for an IPO. And so. I think they wanted sort of some transparency. But it doesn't work that ah you need complete transparency to to publicly offer any of the company right so in in the very beginning. I mean this was going to be the prettiest girl all at the dance for lack of a better metaphor and so it did seem like one by one. The major exchanges kind of backed away and then Saudi Arabia was talking to some kind of more obscure. The exchange is part of that was because the Saudis didn't want to meet some of the requirements that those exchanges had that they really couldn't bend. I mean those requirements are there to to protect investors and so then the Saudis sort of backed away and started looking at different exchanges at looking at private placements within institutional investors and in different ways to sort of float part of the company. Get money back without this full level of transparency. That was a lot for them. Yeah this was supposed to be the IPO of the century and then became sort of progressively ratcheted down to like more and more modest goals. Well Yeah and I think it ultimately fell apart heart just last weekend actually because they had a herd of bankers. I'm not sure what you call a hurt of bankers a number of bankers murder of crows or something exactly a flock of seagulls heard of bankers. Who was who were there advising them on the IPO in these bankers came in and said if a few place this he'll publicly in western countries? This is what we think it's worth. And they came up with numbers as low as one point one trillion. I'm some up to one point point five trillion but they weren't with the kingdom was looking for and so the kingdom was very frustrated and felt like well you know. Why should we sell this company to Western investors dress for less than we think it's worth? Why don't we place it locally on the Tato of a the Saudi exchange I'm and sell it to local investors and maybe we can get more money for it but even the local bankers wouldn't put a two trillion dollar valuation on Aramco Right? No they did not. They settled at about a one point. Six to one point seven trillion billion dollar value valuation. Why wouldn't they just say yes to two trillion like that? Seems I was shocked to read about that pushback. You know. They didn't feel like they could place it at that level revel in. It's an interesting when you think about what Saudi Aramco is worth. You have to look at a couple of different things. That oil is involved in sort political skirmishes in that part the world. We saw what Iran did recently in attacking the facilities there They demonstrated that those facilities are vulnerable. And that is important to evaluation evaluation of Saudi Aramco. Oh there's no question that they can make money and no question that their oil will continue to be valuable going forward but the question is what price they'll get for that oil so if we take climate change seriously if we see the demand for oil go down on that oils likely to sell at a lower price so they clearly have a proven track record into making money and they have a lot of inexpensive well but the question is how long can they make as much money as they have in the past and so now it seems like Aramco's Ramco in this weird position of going public for a lot less money than it wanted locally Saudi exchange and apparently kind of twisting people's arms to promised to buy the stock. They want to make sure that this public offering is fully subscribed. I've also heard tell of some pressure on sort of V very wealthy people little within the Kingdom to buy stock some of the same people that the kingdom rounded up a couple years ago. And I'm put them in the Ritz Carlton for a little wiles. Shakedown like Ritz is not nearly the kind of shakedown. That that was but I think some of them are being gently encouraged to buy around cuffs graphs. Just crazy because one point seven trillion dollars still make Saudi Aramco the most valuable company in the world. It is the most valuable company in the world. The I mean this the Saudi family jewels. And if you think about the pride enjoy of your country think the engine that makes your country move and you have a thought in your your head about what that is worth. It's very difficult to sell it. For Less Alright Samantha. Thank you thank you no problem. Today's episode of the indicator was produced by Jared Marquel L. fact checked by Nadia Lewis. Editor is Paddy Hirsch and the indicator is a production of NPR..
"aramco" Discussed on WSJ What's News
"We've been following closely Aramco this. The Saudi Arabia state oil giant whose path to public markets has been filled with twists and turns. It still expected to list its shares in December. But now we're reporting that Aramco. Mm Co is considering evaluation of up to one point seven trillion dollars. That might sound like a lot of money but actually falls short of what Saudi Arabia's Prince Muhammad bin Salman had been hoping for. Ben Dumont is in London so Ben Walk me through this valuation. Why did Aramco decide to go? With the lower. Our end of the spectrum the Crown Prince of Saudi Arabia he was targeting a valuation of two trillion but based on the price price range. That was released over the weekend. They're targeting now a range of Valuation of between one point six one point seven billion a trillion. Sorry sorry that's That's quite a big number. Obviously but it falls well short of what the Crown Prince wonted Part of that reflects the fact that institutional investors still think at that level that Valuation Company is still too expensive they were they were interested in evaluation of one to one point five trillion. At that point you would have expected a lot of international interest but the crown prince now is kind of a tough spot where he's GonNa have to rely a lot more on local Saudi investors To make to make this. IPO success success but this is accompanied. It's more profitable than apple. Why is this valuation coming in less than expected? What are investors worried about the worried about a a lot of political and economic risk? That's attached to Aramco even though it's the most profitable company in the world its earnings are tied to the oil price so so they can be very. The earning can be very volatile for example in the third quarter profits were down eighteen percent year over year to reflect the the Laurel braces uses and the risks are compounded by the political risks. That come with Aramco you know There was the attacks on their oil L. facilities and in September and that sort of reminded investors that investing in Aramco means. You're exposing yourself to a lot of political risk geopolitical Chris that you wouldn't say if you bought shares an excellent or or Chevron so this valuation of one point six to one point seven trillion. I mean that would mean means that they'd float around twenty five billion dollars so would it lose this world's Most Valuable IPO title that we've been tossing about for what feels like years now. It could. It could if it's if it's priced at the mid range of the valuation then the size of the actual IPO would fall just below just shy of twenty five billion which is sort of the threshold for the biggest set in two thousand fourteen by Alibaba Alibaba. So it's a big it always a blow to the economy because the reason they're doing Saudi Arabia's doing this IPO is to raise money to diversifies Konami way from oil same time. There's a lot of eagle behind This idea of being the biggest IPO IPO ever carrying off the biggest IPO. Ever and so far that that's at risk. And what does Aramco have to say about all of this. Well they've been in fairly. They've been silent. I mean I see the mark. The rules around marketing and I appeal restricted company in terms of what they can say publicly glee. They've issued their the target price range. They've they've come out and said we're we're committed to a growing dividend to try and make it more attractive They've launch a major marketing campaign in Saudi Arabia to to get to drum up local interest. they're getting the banks there to provide loans to two locals to buy the shares but one telling thing about the disappointment. That Aramco's feeling is over. This process is is the fact that Aramco is not going to adopt the rules required for them to market the offering over over the next two weeks to US investors which speaks to the fact that.
"aramco" Discussed on FT News
"From the financial times in london i'm thomas sullivan and this this is news and focus where we are insight into the stories that matter saudi arabia is making a high stakes investment in india's. The world's largest crude oil exporter seeks is to deepen its ties with the fastest growing energy consumer. The saudi state energy giant plans to take a twenty percent stake in reliance industries refining and petrochemicals business valuing the businesses seventy five billion dollars he was to discuss the deal is angry rebel. They're not senior energy correspondent down the line rejoined oil mumbai correspondent benjamin parkyn so then what are the terms of the deal and how favorable are they reliance well aramco is going to take a twenty cent stake in realizes oil and in petrochemicals business which valued at seventy five billion dollars including debt so that means we'll get about fifteen billion dollars which is a huge sum and one of the largest foreign investments ever in india in addition reliance will obviously get access to saudi arabia's enormous oil reserves cbs. You'll get access to aramco's technology which will help to make it's refunding operation most sophisticated and so on and it will get access to around close was management expertise and aramco will appoint some managerial positions within the new unit there for me however the deal isn't finalized finalized yet and they're all details to resolve realizes channel mckay shabani initially announced it in a very confident fashion at their annual general meeting meeting but aramco went onto a little bit of cold water on that by saying that it was still a relatively early stage however ryan so confident that it's just a matter of time crime until they concluded and what's the appeal of the indian market for saudi aramco around the foreign oil and gas majors increase investments in the country to well b._p. And reliance lines recently entered into a deal to form a network of petrol stations and aviation fuels business so clearly oil and gas majors are interested in india and for a good reason because it's the foss granted you consumer in the world and it is among the fastest growing larger economies you know there are literally tens of millions of people people and even hundreds of millions of people in some cases entering these new markets as consumers for the first time so whether it's driving causal the most cycles flying in planes buying and switching on t._v.'s getting connected to the electric grid and no other country in the world bar i guess us china can claim anything like that so with dimond lagging in other parts of the world india is very very important for aramco and other big oil and gas companies reliance particularly important for aramco well reliance <unk> has one of the world's largest and most fisted refining operations they state of the art complex in gujarat on india's west coast i but crucially reliance also has a strong presence throughout india and across regions and sectors that few others can claim seem to have a presence so it has an incredible research among indian consumers and in addition to its oil and chemical business this it has to very fast growing revenue businesses in retail reliance retail and in digital services called gio and now it's not obvious obvious how these could help a company like aramco or b._p. But there are lots of opportunities and reliance executives have talked about that so gio has three hundred forty million mobile customers which is equivalent or larger than the population of the u._s. So it's a huge is base of people and gio creates kind of loyalty scheme whereby its customers have an incentive to refuel at a specific petrol station and network or whatever it is or realize of land on which aramco could build if they need to which would massively speed up. What's otherwise is a time consuming and painful bureaucratic process. What will relies use the investment ford. One crucial thing is to pay down its debt so so realizes come under an increasing amount of scrutiny for its growing debt pile precisely because it spent a huge amount of money in order to build up this digital gio business us almost from scratch in some senses ties and that debt of around twenty billion out of the end of the most recent financial year which is much larger than what i had a few years years ago so this has concerned some investors and holidays to downgraded the radio net stock so alongside side the aramco deal reliance announced that does zero company by twenty twenty one and the roughly fifty billion dollars is going to get is gonna make a huge difference to that needless to say but reliance is adamant that the deal is not about paying down debt. It's a strategic partnership and it's part of a broader vision that involves loves bringing on mopeds no just in the oil business but across the company in order to sort of shake up the way its run and its management structure and how will it's digital and retail business with its oil and chemicals operation the retail and digital businesses current account for around thirty percent of eba but reliance wants to increase that share to around half now. This is all part of a quite an ambitious strategy to go from being a business that refined oil and makes wchs petrochemicals to a consumer facing giant that will provide you with everything from mobile phones to your t._v. Service to clothes to to food on multiple now notice to do this. The company plans to restructuring quite a significant so wants to separate the oil and chemical unit then twitch around investing into a separate entity within five years and may listed it also wants to list raced gio and reliance retail over similar timeframe so in five years time reliance will look very different and you know something more akin to a holding company will do succeed in winning regulatory approval rawlins's confident that it will it will be closed by march next year yea twenty twenty but as i said the terms still have to be finalized with aramco who relevant more hesitant in their own statements turning to you how does this deal fitting with aramco's overall strategy so saudi aramco has made huge efforts over the last few years to expand abroad and this is mainly through asia and false growing emerging economies and it struck huge number refinery partnerships across asia from korea korea announced india. The plan is always to lock in future sales of crude. It's a measure of security for the world's biggest oil exporter exporter to be able to do this. The point is also that it wants to secure these markets where demand is still growing quite quickly. Particularly as consumption elsewhere begins to weaken and over time beginning c mo remove this particularly with big global push towards cleaner gina fuels and so this is part of their overall strategy tools diversification so diversification but in a slightly different sense the kingdom and muhammad had bin salman the crown prince of saudi arabia has actually talked about moving the country's economy beyond oil but if it wants to do that it needs to have a steady stream of cash coming from its existing oil and gas businesses in order to fund all the new stuff and create saudi arabia two point. Oh so whether it be in technology or tourism mining all these other sectors that saudi arabia wishes it could it will be an expert in at some point but it has to leverage its know-how in order to do that. You mentioned the saudi arabia's efforts to diversify away from fossil fuels away from dirty sources. She's a fantasy. Where is it that with particular process so the kingdom's diverse vacation of its economy is largely to do with securing its future future government revenues and it's extremely early stages. They've tried to invest in a huge number of technology companies abroad these very fast growing foreign companies in some ways but actually not generating the kinds of revenues traditional oil and gas businesses can deliver so it's very tricky will also happened as they've been trying to embark walk upon this big plan led by the very powerful and quite impatient crown prince is that they have had a series of political crises from the killing of journalist jamaica shoji and what the has done is created this sort of wave international censure and stops the country okay from getting these funds from abroad that really needed to help diversify the country's economy but this is another reason why they've turned to india india has been <hes> with open arms and is really willing to legitimize and give saudi arabia that ranking as a global investment went powerhouse with a deal like this and also because india's economy still heavily reliant on polluting fossil fuels so we'll aramco's technical no hair that they've they seem offered as part of this deal helping to cut back on the pollutants the so damaging to the health of the population why would say at this stage. The answer is probably no do india has got one of the most aggressive renewables programs out there but the demand is growing so quickly that they need more of everything everything whether it be oil gas coal even as well as newer forms of energy clean like solar so india is probably googly looking to saudi arabia to ensure that indian energy security is firmly in place and this remember comes a time when oil all supplies from countries such as iran or venezuela have really been disrupted. It's obviously a private company reliance but there is a broader context in which this deal is happening. You mentioned the the fall of supply from venezuela and iran in terms of the amount of oil. Were talking about as part of this steal. Will this offset the loss of those imports for india from around because of the u._s. sanctions. So what we've already seen is that some countries such as saudi arabia and iraq have tried to replace runyon barrels not just in india but other countries too and the thinking here is for reliance that they will end end up securing forty percent of the amount of oil that they need from saudi aramco itself but they're still will be other suppliers out there and eventually how how confident the saudi aramco the still will go through saudi aramco has said that india's massive strategic priority for the company and the country but the chief financial of did say on the company's first ever earnings call that the deal was still at a very early stage due do you diligence was still required over the next four months or say and board approval was still require it so they really were trying to as bensaid waterdown how far hour-long the steel had gone to but would save very senior. Officials in saudi arabia and also in india definitely would have had to sign off on this to even get to this point..
"aramco" Discussed on It's Been a Minute with Sam Sanders
"They've gone to actually match the story that the authorities have right. And apparently, they also let Kashoggi's son out of the country. He at travel ban had been imposed on him. He's a US Saudi citizen, but he hadn't been allowed to leave Saudi because of his father, speaking out against the kingdom. So he was allowed to go to the US. There was a very off. Photo shoot. But that was that was quite a concession in. A lot of ways from from Saudi Arabia's this show that Saudi Arabia is feeling pressure and possible financial pressure. There's talk that countries might invest less stop investing in this country or by less from them. Is this really any economic pressure on Saudi Arabia or is it just a blip? Enormous. I think it's enormous really as well. So Saudi Arabia. Basically, this whole economy's is one company Saudi Aramco, which is the oil company. It's basically bankrolls like thousands of Saudi princes. It is the biggest company in the world. It is an apple. Oh, yeah. No one name. Again. It's Saudi Aramco Saudi Aramco. No, it's biggest. And so they were thinking to go go go public and sell shares. And this was NBS is big plan. So they were like Saudi Aramco is going to go public and sell shares. And no one knew how big this company was there. Like, maybe it's worth a trillion. I mean, just like huge huge numbers being thrown out. But the problem is like if you go public and sell shares and like all stock exchanges all over the world. We're competing the new York Stock Exchange competing, China was competing. Everybody wanted a piece of this. This was going to be the biggest they lose control. Right. But you have to disclose you have to open up your book, so Saudi Arabia was trying to figure out like, well, maybe like we'll just take five percent of the company public, which would still be the biggest pub initial public offering global history. Norma's? We'll take five percent of it public or ten percent of it public and the New York stock exchanges. Like, we can't do that. Right. And and you know, this is like the Bank rolls have all the Saudi Royal family. And suddenly he just haven't been hearing about it and ask you this was huge news. This is going to be the IPO to end does cover story in the economist everything now crickets and a lot of companies I think because of this incident are like what is happening here. Yeah. I mean, what's interesting here, though, is that like everybody knew that there were like severe human rights violations and Saudi Arabia, and the and the the fact that this one incident is sort of like this stand in for all of the ones all of a sudden now everybody's like, oh, no now, we have very extreme morals is a little bit of hypocrisy in the face of it. Yeah. You know, we'll, and we know that like a bunch of US tech companies have benefiting from Saudi money. Yeah. Taking it are they going to send it back. Right. Right. All right on that. We're going to take a break coming up. I will tell you how. And why Netflix convinced millions of people across the world to watch a bunch of romantic comedies this summer to. Yeah. I know you're listening to it's been a minute from NPR. We'll be right back..
"aramco" Discussed on Bloomberg Radio New York
"He was reported missing on a trip to China from France. Chinese authorities say he's been detained for violating the law on quote, the number of people killed in the Indonesia earthquake has risen above seventeen hundred with more than five thousand still unaccounted for aid is continuing to arrive and the government says it's considering creating mass graves because of the number of victims the force of the quake and liquefied the soil in many areas. Swallowing whole villages and making it on safe for heavy tickets to operate under report has given one of the strongest ever warnings about the risks of global warming. The UN's intergovernmental panel on climate change. Now says governments need to take urgent action to stop the rise in temperatures going about one and a half degrees celsius. It's to prevent droughts extreme heat and floods for hundreds of millions of people. Global news twenty four hours a day on Aaron at take talk on Twitter, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Markus Karlsson. This is Bloomberg guy. Thank you very much. Indeed. Now to a Bloomberg exclusive Saudi Arabia's crown prince insisted the store plan to shell to sell shares. In oil giants Aramco will go ahead. Muhammed Bill Sammon salmon made the remarks in an interview with Bloomberg and a Royal compound in Riyadh Wednesday. He promised an initial public offering by two thousand twenty one and stuck to his ambitious view. The state run company is two trillion dollars or more. Joining us now is Bloomberg's Middle East and Africa editor Molly Riyadh. Good morning. What is it is the surprise of this interview? The the Aramco IPO is still on. Yes. In a way, it is. I think there's been so many stories before saying that the Aramco IPO has been put on hold postpones cancelled. So it may have been actually the reason why he decided to come out and do this interview that he felt that he wanted to set the record straight and set a new target in the way, explain himself and explain why peo- is an ineffective delayed. Where does this? There was a plan that was placing around that they would go to the bull market effectively. And that would be the way that they would monetize some of the value in Aramco is that plan now not on. No that plan is still very much, Sean. I mean, we also our own reporting show that that may be the alternative that instead of selling parts of Aramco five percent of ankle get one hundred billion dollars. You do the Savak the L, which is a petrochemical big petrochemical company. The government sovereign wealth fund sells at stake of Saudi Aramco Ramco gifts seventy billion dollars to. To the seven wealth fund. And they kind of, you know, get what they want anyway, which is money in the sovereign wealth fund to invest that's still on that's still going to happen. He says, but on top of that we're going to still do the IPO. So now he's talking about in total over the next three four years. Getting. Anything with one hundred seventy eight hundred eighty billion dollars into the sovereign wealth fund. Is this a reflection of the fact that the Saudis believe that we are going to have a more elevated oil price for a while one of the things that make we'll make America more attractive is at least if you can get the front end of the curve to look good. And and that's what's happening at the moment is the always the current oil price part of the reason, and you talk about the reason he came out and made this these comments is the price factor as well. I think was a factor when all password twenty five thirty dollars. And I think the expectation was as all passes rise evaluation would rise. But I think now is at a level where maybe it's not so relevant to the valuation. What's more relevant? Maybe some some new royalty rules and taxation rules on our uncle which would allow more of the money to stay with our uncle and therefore for with any investors Aramco. But I think there's still going to be skepticism weather, the two trillion dollars or more than two trillion that he said evaluation is realistic. He did make the point that his new valuation. The two trillion now includes Savak so it would include on Saturday. But still I mean, even even with that. I think they will continue to be sub skepticism over the valuation. He did leave himself a little loud. He said at the end of the day is the market is going to decide he's just saying his view is it's worth two trillion or more. How is how is this plan going? I this is this is he's trying to reform Saudi Arabia. He's he's making a series of economic and social changes. I is it going to plan. It's not going in accordance with a time line that originally gave in two thousand sixteen so initially and right from the beginning, we asked him this is very very ambitious stuff to change a country. That's been going in one direction eight years, and then tells them from one day to the next okay now, you've got a switch and go into completely different direction. It was always going to be tough. There was all the skepticism about them achieving. They've done some of the things he himself pointed out that some of the subsidy cuts have been done has been done. And some of the social reforms have been done and there's a bit more coming. But we have the timeline. That's yeah. Question as with all these things. Really? Thank you. Thank you very much. Indeed reenter. Hamadi joining us on the Saudi story up next.
"aramco" Discussed on Bloomberg Radio New York
"News twenty four hours a day on and at ticked off on Twitter by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Paul Allen this now, let's get a check of the markets politics. Another day another down for stocks in the region. Asian stock separate the tenth they have losses. Valerie, the worst run since two thousand two in Jakarta is the glaring Larry here by rising as rupiah is looking steady. But Chinese shares there near a four year low as policymakers efforts to lift sentiment that falls flat value, then not enough to stem, the Sela. In Hong Kong. We are set free six straight session of losses. With pharma socks being hit hard in the city. And in Tokyo, the Nikkei two to five is falling for the first day in three as Yang gate. Some granted risk off sentiment while we are seeing regional currencies getting dented the Korean one sliding with the kospi with that surprise uptick increase. Unemployment rates adding to this headaches for the moon, but administration in Korea USA. Yeah. There's quite a bit of excitement around the electric car business in China. That's being served to the reality. Check as the meal IPO has been priced near the bottom. What are the challenges though that this company faces? Newest gunning to each homegrown Asir to tesla but in doing so it's competing with dozens of other Chinese car makers, including BYU and established rival on great Zakir auto which so more than twenty thousand visa last year. And these stocks have been under pressure over the course of two thousand eighteen even as demand is seen rising for electric vehicles on the Chinese mainland. Now, these companies typically focus on cheaper less flashing models. But Neo it is going for wealthier buyers. But the road ahead is not without its hiccups. Menace. Nieto has yet secure an easy manufacturing license in China. Thank you very much. So for the roundup that to Saudi Arabia, the sovereign wealth fund will sign an eleven billion dollar loan this week. It's first ever Bari. Let's get the details. We've brought our Bloomberg finance supporter. Matthew Martin hotly returned from London? Breaking news so fund gives up on the IPO Aramco. And here we go get in there. Get a bit of bombs on board. Yeah. Seen over the last two years since the violas being a more of a sovereign wealth fund to look at foreign investments, they've been signing an awful lot of checks. They haven't however been receiving an awful lot of money. So now, we're kind of getting to the point as we see the Aramco IPO pushback further and further on that is going out and looking at raising money, and they had talked about this last year that they were going to try and start using leverage of a way of. Not only funding investments, but also trying to use leverage to boost investment returns as well. And then this is the first sign of this coming through with a sign of the signing of this eleven billion dollar loan that we're expecting in the next couple of days. It's also been a bit of news floor around the what Saudi Aramco plans to do in the downstream area. So the further down the value chain now understanding conversation to to buy NAFTA. What's what's the thinking behind that? Well, Aramco as part of the process of looking at audio Ramco Aramco wanted to expand in both directions really out of the the oil value chain, both more and more into chemicals and refining, but also going into retail and distribution as well. As a now what we're seeing is as part of this strategy to get into distribution. They're talking to some of the Saudi gas station companies about potentially acquiring one or more of them, which they can then merge into an Aramco fuel retail brand. It's interesting high the these. News releases these these SABIC deal the petrol station deal launching their own brand in January first quarter of next year. I think it was the story that you wrote. It's all about changing the narrative around around Conan's is about trying to change our narrative in regards to k- essay and the next steps, isn't it? Yeah. I think so I mean, I think as part of chief this two trillion dollar the magic number that Mohammed bin Salman is talks about as as valuation of forum the trying to push the company into being expanding into many, many different areas of business. So that it can be both diversified away. From oil if the company a future beyond oil, but also to to boost the valuation by saying, this is not just a company that extracts loyal in Saudi Arabia. This is a joy energy business. Matthew, excellent reporting as always Bloomberg semester. Martin finance reporter there. That's the why not the conversation that bringing Marie Salem. She's director of capital markets for f f a private Bank. Marie. Let's pick up where Matthew left off and Madison sort of the rest of the conversation. In terms of the bigger picture of Saudi Arabia. There are some tectonic shifts that are taking place. How are you looking at this as you talk to clients about investing in the king? Now lately, the main topic the hot topic in Saudi was at uncle whether had been through the IPO, the delay in the IPO or other factors. So it's it's more or less concerning to investors and to clients so they sort of slowed down on the investments in the Saudi markets throughout the past two weeks. But this is something very normal living doing a lot of prophets out there. And it's about time for them to actually book their prophets and monitor what's going to happen. There it times of side. It's interesting. I've written down here we've gone from at pain liable, plus ninety in other words, taking the risk of nine zero. So we take that off the table really are at the behest of Mark is that this is actually a much safer bet to go for a competent raising isn't it pay liable, plus ninety near the knows it's a smarter move. Isn't it? It's a smart move. And it definitely gives some sort of comfort. And that's when they see there's an alternative to that. They were planning to go for so investors will just look like they look at it from the perspective where they had something there. It was taken off the table, but they had an alternative. So there's something that is not too risky ad on there. What about the situation with rising rates in in from the fed? What kind of impact is that going to have what what you see the road ahead for for Saudi banks? Now whenever the fed raises rates. Definitely there's. Effect on our. Banking sector and the region as a whole lot. But I think it's. The price to and and people are expecting it throughout the coming season different. Visa breaking news that we really got to get into. I want to get to our first of all Al Dr has a nice that they're going to raise capital independently. So this is going to be al-dar investments. The press release says it's going to create the region's largest diversified real estate company. They're going to raise competent, they're going to issue a sa- cook. And they said the investment world, the investment company will have real estate acids twenty billion Durham, I beg. Is this hunt? Portent is this. What does it do to us? You go to the desk this morning. No, no, Dr has been coming up with the new strategies new disclosures throughout the past week a couple of days ago, they disclosed their companies their subsidiaries are allowed to actually invest more than fifty percent or up to fifty percent and other projects and stuff. So this comes in line with their strategy to actually enhance the company's status among investors and the real state as a whole specifically in Abu Dhabi. So this comes as something very major. We've been seeing some pressure on the. Doc for the past two days. And this actually gives us more insight on how the state sector is heading there. We also had a bit of news from Drake and scull just minutes ago. They're saying that they're considering either continuing activity or dissolve completely. It's been a company that's gone from crisis to crisis with the ex CEO your initial reaction to the status bit of news. No, actually, I believe they call them for an ATM an extraordinary meeting actually something which doesn't come time for it as scheduled, but they call them for that. And they I believe they have to actually mention that clause in their minutes on the meeting's minutes to discuss further. Whether they're going to go on with the activities, especially with the whole situation that the company is going through. So this is something very normal. We do not see it. As something surprising. Probably the headline is a bit of alerting. But it's not something major. I believe it's expected with the minutes of the meetings that they had what is it? That changes the story Drake in if you if you're not that surprised by the headline. What does it take to turn this story run from eighty percent drop? Does it take somebody to buy the company restructured the company wants to take? Now, the Trump did discuss the company has gone through a lot of ups and downs with. What changes the story? What changes the story calling for an ATM at this stage when it is not actually scheduled? It means that the company has some certain announcement to make some titan decisions take that it needs to its investors. So we're then are you putting money to work? I mean, we've talked about the pros and cons of a lot of these markets. But what is your conviction? Call at the moment. What do you think we we've been extremely bullish on the banking sector? And last week was seen the mergers. Among the T banks in the banking sector is something which is extremely stable and the and the as well, so I think the banking sector is still doing extremely well. We're we've been seeing some mergers across down some major strategic acquisitions happening on the exchange on the stocks in the markets, which I believe is the catalyst that is actually figuring the volumes higher and the local markets for the past week. What about on insurance that you fly up Salma is being one of those stocks that you want to focus on on the insurance side, actually, actually Salama has a very interesting story with. Financial group acquired a thirty percent stake in that stock last week and triggered some sort of momentum and the market probably from there. We would start looking at further. Mergers are expected further mergers across the insurance sector asides from the banking sector in the Mary. Thank you so much that is Mary Salome director director at f f a private Bank with very latest those an Alda along with Drake and scull get ready.
"aramco" Discussed on P&L With Pimm Fox and Lisa Abramowicz
"But those two companies may just seven point four billion h so you can really see that the low cost i'm kind of have to pump that time any amount of the day from these john was on the saudi does that mean that it is far more profitable than its name piz in among the west nile majors excellent show now the saudi crown prince mohammad bin salman who has previously been visiting the united states the last couple of weeks what is he said about about saudi aramco i mean he he has while he was in america oh along his i'll start again forgive me he made he made sending saudi i'm doing an ipo a centerpiece of his phone for the kingdom and he said that it might be worth as much as two trillion dollars and it would be key to key to change in the economy of the kingdom of for the oil age i'm still stop by that what have changed and he says l any sell it when the time is right when oil prices thing that i'm struck by is how much flexibility does the saudi arabian government have to levy additional taxes or take additional profits from the company i mean it can change a tax regime whenever it well then i think you'll lightly to highlight that that's probably going to be a concern key concern for investors they look at this company clearly the primary of of saudi aramco support the fiscal power of saudi arabia and if they need to that's going to take preston who've looking off the minority investors and that you know that maybe it'll be enough money for everyone that's going to be something investors to think about is they assess the risks of this investment.
"aramco" Discussed on Green Connections Radio - Insights on Innovation, Sustainability, Clean Energy, Leadership, Entrepreneurship, and Careers w Top Leaders, Women
"Yeah this is a really interesting deal saudi aramco has long had a vision of wanting to get into solar power back back in i think two thousand eight the oil minister for saudi arabia all on the told lesley stahl an interview on sixty minutes that his vision is for saudi arabia to be an energy exporter they want to export barrels of oil and gigawatts of power and they see themselves as having great potential for solar industry he says i think we're else is it son more powerful than in the desert and they certainly have a lot of desert that is not being used but in order to develop that and to develop it to a power the need the technology and for some time the technology hasn't really been there but they're working on it and they have partnered with different sore power technology companies to get the best they've also this is really interesting i learned about this when i i was at aramco they developed technology to clean solar panel so they have a big problem with dust storms and saudi arabia and if the dust covers this panel it's not going to do any good today got these automatic kind of but robots that go across the panels and clean them every so often so they've really been preparing for this solar power initiative awhile and the have actually aramco has done some these contacted with some firms to build some smaller solar power plants but this initiative that you're talking about that the crown prince sign was soft banks they wanna build these massive power installations and going to take quite some time and they're probably gonna be multiple ones of them not just one huge power bank but for saudi arabia z really as an assess ity for their own country because right now they burn oil for like.
"aramco" Discussed on Green Connections Radio - Insights on Innovation, Sustainability, Clean Energy, Leadership, Entrepreneurship, and Careers w Top Leaders, Women
"Very interesting so what impact with the massive aramco ipo have on us energy resources us energy prices us energy access would it have any role maybe even on us audi relate well whatever role in us audi relations if the ipo takes place in the new york stock exchange certainly that does seem less likely at this point but it hasn't been ruled out and if aramco is boy to be listed in their stock exchange would certainly mean that the american stock exchange's somewhat more tied to saudi arabia not not tied to per se but that kind of the rising tide lifts all boats and vice versa but does tend to happen so that would definitely be an influential thing and it would definitely increase the ties between saudi arabia and the united states but on the other hand big ipo of an oil company can affect valuations of other oil companies particularly those in the united states so it would definitely have an impact on the oil industry overall how so well in general a lot of oil stocks tend to go up and down together and so if there's something that affects say around close stock it could affect other oil stocks the stock was up then exxon and chevron and other oil stocks could also go up as well and then down in the same way i presume us because the price per barrel affects all of them not just one right it definitely can be due to the price of oil i know but it could also be do say to earnings reports i mean these aramco hasn't ever delivered quotas owning earnings reports but sometimes the earnings reports ryan fall in similar ways but sometimes they don't and occasionally a good earnings report safer aramco might lead investors think oh other oil companies will also do well until it could cause us axe to go up and vice versa down.
"aramco" Discussed on WAFS Biz 1190
"The stage for the planned aramco ipo well better towns that question and bill alcon senior economist at standard charter great to see this morning thanks for coming in we played the ceo of saudi aramco really setting the stage all of a sudden i want to bring it back to the saudi gross story of this seventy two seventy three of your bloomberg customer this growth in saudi arabia tied to the price of brent inextricably linked this is the linchpin for the ramco ipo this is the linchpin for vision twenty thirty has strong is the gross for this market absolutely thanks so we expect sal the actually emerge from recession in two thousand eighteen we're expecting one point six percent growth in print heating and that of course is on the back of two point two percent growth in the the nonoil sector an absolutely agree i think despite the effort on diversification crude oil remains central to the saudi economy and that contracts investors will be watching very closely both for the price of oil and also the saudis remove the head with reforms that it actually has said it's going to pursue in two thousand eighteen we have the footsie decision to look ahead to just for context be saudi equity stories beginning a little bit more love over the last couple of months you want to call my dad we put this up on the bloomberg our clients can easily access it g space hashtag bts eight three one two's you keep code basically showing inflows into the ice shares mci saudi arabia etf which is a proxy for saudi equities rose about ninety six million this year to more than one hundred fifteen million dollars and this year's potential ipo of saudi aramco which is expected initially based on the local exchange could of course add to that investor interest what kind of inflows could we see off.
"aramco" Discussed on Bloomberg Radio New York
"Of oil and gas executives traders bankers and investors gathered for the sara lee conference comes as us oil production surges past ten million barrels a day the british cabinet discussed the anticipated aramco ipo as part of preparations for the visit of saudi crown prince salmane london is among cities battling to host aramco's expected second listing saudi arabia has signalled it will sell about five percent of the company to raise about one hundred billion dollars as part of print some on planned to transform the kingdom's economy of the crown prince's set to arrive in the uk next week for talks with prime minister theresa may i'm julius sally in singapore with a quick check of markets we are still and vaughan's retreat following the pal common trio of a not you can see hong kong's hang seng index leading the decline say down by one point seven percent the ajc i index of chinese stocks listed in the city on track for a nine percent drop over the course of the month that will be the worst wet were full we've seen in the index and you can see bonn's full so fooling run across the board said not a great and two february for asian markets you might say that the good thing for the last few years has been unexpected understated between brags this and the us election it appeared difficult to predict what the public was thinking but there are no surprises for next gas to predict the outcome of the referendum and deng trump's victory it is mark life international politicaleconomy at brown university while can good to see in abu dhabi mr cameron was here yesterday very very sort of reflective on the position theresa may has great backbenchers at the moment who are prepared to take her to task in his apartment i will get brexit into this show is the last thing i do where are we on the brexit ometer according to profit glide doom or opportunity have it in the middle off nolan oman dasa version of doing basically what we do to just muddle through so you explain things and not become new permanent stay of the first think about it a little bit following message of once being the customs union for you want to be into custom funing kind of in europe but they said the deputy chairman of.
"aramco" Discussed on FT News
"He basically front run any internal studies that needs to be done and he was the one that was leading the charge him his point of view enlisting of saudi aramco super important because that trying to privatise the saudi economy and if they can't do it to the biggest and most wellrun company there isn't saudi arabia it doesn't really played well for other institutions oh say they really need to generate cash in some way from aramco three some kind of private sale because the money at they raise will be used to then power into non oil investments as they tried to diversify the economy away from oil now allard you've look to the valuation of this company and prince mohammad i think in the past has talked about a figure of two trillion dollars which would be the equivalent of the italian or injured gdp tell us how you came up with the figure of one trillion as an alternative well to begin with the two trillion number it's very difficult to get to that number to calculate minor amber are discounted cash flows over time i made certain assumptions about the oil price the production the taxes that saudi aramco pays back to the government fire royalties and putting all those together into the future i came over the present value of what this companies worth of it's very difficult to get too much more than a trillion so that i think has really irritated the saudi hierarchy of fake they were hoping for something more like two trillions is causing them a little bit of despair i think also listing on the stock insurers would have gotten them a bigger valuation you've a different type of investor putting aside some of the issues that as we've raised it has done a new york and in london are thicker global relatively liquid listing.
"aramco" Discussed on Bloomberg Radio New York
"The selling of a stake in saudi aramco is a good idea we bloomberg toll there is some pushback four bank set in saudi arabia right now do you agree with the policy of selling that stake well you said policy and the the country's direction towards implementing vision 2030 has been clear to everybody that it is going to be implemented and the process the five years before 2020 had been please to prepare for the jump into two thousand and thirty part of that is the old percentage of shares i don't see any change in that area any any indications over pushback their food the word that you are using i think the government is going ahead with that dave announced that it will be sometime in two thousand eighteen coming up all the best the bloomberg markets at least interest economy is arising from the currency crunch would tell you about the latest indicators pointing to a revival this is bloomberg give can you eat drink wear and even smoke says something about and about the world in which you live that's the premise of material world the bloomberg podcast that delves into the.
"aramco" Discussed on Beers with Talos
"That defeated some wiper mao where that looked associated back into the black energy events similar sort of of approach and when those were not affective what we saw was the same actor using the same mechanisms of intri would then try to use a commodity level ransomware so from an actor perspective if you're intent is to disrupt economic activity there's roughly no difference between just wrecking dr anne correcting the drive um so the the recovery is roughly the same the data losses exactly the same it and it interferes with attribution because you're not using like a custom piece a wiper and then it also will complicate the understanding of the intend to the actor so lot of lot of argument early in the day's was all war they're gonna pay their if you pay the ransom where you get a backup center center and so in this case if they'd use a wiper it would've been amelie obvious what the intent was and i think a buys the actor time because we saw the actor after the event burning down portions of their infrastructure not to mask what they had done so by putting that that that doubt your slowing down the response the only thing i wanna talk with you about matters i know you know we look at a lot of uh a bta to use that term or our than we believe is sponsored by basically ah nations attacking each other and i think the one threat usually stands out is stealth right and you know this is consistent with a lot of stuff we saw come out of the shadow brokers release you know what i look back and i look at attacks that were made to basically do widespread damage in noise you know like wiper mauro tax and really only one popped into my head and that was that attack against the entertainment industry years and years ago we eta sat saturday aramco's well right all right yeah that's get on too.