Archives for September 2019

“The downgrade reflects rising geopolitical and military tensions in the Gulf region, Fitch’s revised assessment of the vulnerability of Saudi Arabia’s economic infrastructure and continued deterioration in Saudi Arabia’s fiscal and external balance sheets,” the New York-based agency said in a statement on Monday. The firm put the kingdom’s long-term foreign currency issuer default rating from A+ to A, while stating that the outlook remains stable.

The downgrade comes just over two weeks after the drone and cruise missile attacks on Saudi state-run Aramco oil facilities, which for a short time nearly halved crude production of the world’s largest oil exporter. Riyadh, as well as close ally Washington, blamed the attacks on Iran, while Tehran has denied any wrongdoing.

Also on rt.com Is Saudi Aramco lying about its damaged oil infrastructure?

“In our view, Saudi Arabia is vulnerable to escalating geopolitical tensions given its prominent foreign policy stance, including its close alignment with US policy on Iran and its continued involvement in the Yemen war,” Fitch stated, noting there is a possibility of a deeper conflict with Iran.

“Although oil production was restored fully by end-September, we believe that there is a risk of further attacks on Saudi Arabia, which could result in economic damage,” the agency added.

Fitch’s downgrade comes at a bad time for Saudi Arabia, which recently announced plans to issue international bonds, and Fitch’s rating could negatively affect their price.

SP Global Ratings last week confirmed the kingdom’s A rating, yet it also voiced concerns that the country could be hit with repeated foreign attacks, stating that in such case its rating could face downward pressure.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/469929-fitch-saudi-rating-down/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Goldman’s analyst Rod Hall pointed to his supply chain research indicating “much higher” 5G device sales than previously expected.

“We are increasing our 2020 5G smartphone estimates to 120 million from 50 million as the supply chain continues to indicate much higher 5G device sales, particularly in China, than we have been forecasting,” Hall said.

Also on rt.com Huawei to invest $1.5bn in its developer program

He suggested that 5G would only be available in limited parts of the world with Chinese network expansion delayed due to Huawei trade restrictions. The analyst, however, noted that manufacturing bottlenecks for 5G smartphone components are clearing up. While this is likely good news for Apple, according to Hall, Huawei is also expected to benefit meaningfully.

“We believe Huawei’s ability to build 5G NR gNBs without US components should help to drive meaningful deployments in China in 2020 which support additional Chinese 5G device sales,” he said.

Also on rt.com Huawei ready to sell its 5G technology to Western buyer to create global competition

Chinese tech giant Huawei, which is currently caught in the crossfire of the US-China trade war, reported that its global share of telecoms equipment expanded to 28.1 percent in the first half of this year. The company remains ahead of global rivals in the 5G market, having announced 50 commercial 5G mobile network deals.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/469928-goldman-sachs-5g-boom/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The scandal, which has already cost the German carmaker $32.7billion (€30bn), first broke in 2015 when US regulators showed that the company had installed so-called defeat devices in its diesel cars. The software enabled the vehicles to perform within emissions limits during tests, while exceeding the limits during normal driving conditions.

Also on rt.com Volkswagen bosses charged in Germany over diesel emissions scandal

The company has since faced class action claims from US and Australian consumers, now joined by Germans, who until last year could not pursue group claims. The current class action was made possible after Germany changed legislation in 2018, granting permission to consumer protection organizations to undertake court actions on behalf of consumers.

VW has repeatedly rejected the aim of the lawsuits launched against it, stating that despite the fact that its vehicles were indeed cheating during tests when first produced, the cars remained perfectly functional, while software updates have long since fixed the problem.

“The vehicles are driven by hundreds of thousands of customers every day, which is why we believe there is no damage and therefore no cause for complaint,” the German carmaker has said.

Also on rt.com Washington’s emissions plan could cost US economy $400 billion

Volkswagen’s settlements so far include a deal to buy back 500,000 cars in the United States for over $25 billion, as well as an agreement with Australia, where the company will pay 127 million Australian dollars ($86mn) in compensation.

However, the car manufacturer said on Monday there was no legal basis for consumers in Germany to seek compensation for their cars due to differences in law. Some 2.4 million cars with defeat devices were on German roads when emissions cheating was first revealed. 99 percent of them have by now received a software update, according to the company.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/469925-volkswagen-lawsuit-germany-emissions/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The Energy Resource Governance Initiative (ERGI), announced in June, so far involves Australia, Botswana, Peru, Argentina, Brazil, Democratic Republic of the Congo, Namibia, the Philippines and Zambia.

The scheme seeks to promote responsible mining of 15 minerals expected to be in high demand as the adoption of technologies such as EVs, battery storage and wind turbines continue to rise.

Also on rt.com US Australia to unveil rare earths plan to challenge China’s dominance

“We want to ensure that these important mineral commodities remain free from international coercion and control,” US secretary of state, Mike Pompeo, said in a meeting held on Thursday at the United Nations General Assembly.

“The work that we’re doing here is absolutely essential – it’s essential to ensuring secure and reliable energy supplies for every nation,” he noted.

Pompeo said the Trump administration will also work on bilateral agreements, such as the one it recently signed with Canada, aimed at strengthening cooperation on critical minerals.

Washington has also gained the support of Australia, which has committed to facilitate potential joint ventures to improve rare earth processing capacity and reduce reliance on Chinese rare earths.

In early September, Canberra identified 15 rare earth and critical mineral projects it aims to champion as part of the joint effort with the US to challenge China’s dominance in the market.

Also on rt.com The challengers to China’s rare earth monopoly

The announcement followed a move by Australia’s Lynas Corp., (ASX: LYC), the world’s largest rare earths miner outside China. In July, the company signed a deal with its partner, Texas-based Blue Line, to build a heavy rare earths separation facility in the US. The facility should begin operations by 2021.

The US has also signed a memorandum of understanding to assist Greenland in the exploration and development of the island’s resources — in particular, its rare earth minerals.

Washington has grown more concerned recently about its dependence on mineral imports after Beijing suggested using them as leverage in the trade war between the world’s two largest economies.

Growing supremacy

China accounts for almost 80 percent of the global mined supply of rare earths, a group of 17 chemical elements used in everything from hi-tech consumer electronics to military equipment.

Also on rt.com China’s nuclear option of dumping US bonds would cause absolute chaos in global markets – expert

The nation has used its rare earths dominance to make a political point in the past. It blocked exports to Japan after a maritime dispute in 2010, though the consequent spike in prices triggered a race to secure supplies elsewhere.

Beijing has also been securing supplies of other critical minerals and battery metals such as lithium, cobalt and nickel, buying up stakes in mining projects in countries from Australia to South America and Greenland.

This article was originally published on Oilprice.com

Article source: https://www.rt.com/business/469923-us-china-minerals-war/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“On September 30, 2019, SP Global Ratings affirmed its unsolicited ‘A+’ long-term and ‘A-1’ short-term sovereign credit ratings on China. The outlook on the long-term ratings is stable,” the firm stated on its website.According to SP, China will “maintain above-average headline GDP” with per capita growth forecast to stay above 5% annually.  The agency also sees improved fiscal performance within the country over the next three to four years, as well as a decline in fiscal deficits.

Also on rt.com Washington will NOT de-list Chinese companies from US stock markets – US Treasury

The firm warns, however, that China’s economic growth is likely to slow in the next few years due to the ongoing trade dispute with Washington.

“The economy is likely to face elevated uncertainties owing to US-China tensions and ongoing efforts to restructure the economy and reduce financial risks,” it warned. However, on the bright side SP noted that “policy changes have helped to rein in credit growth and reduce the reliance of economic growth on public investment,” stating that if these trends continue, “risks to China’s economic and financial stability could moderate.”

Regarding US-China relations, the rating agency says it is unlikely that a major improvement will come in the near future.

Also on rt.com ‘Emboldening radicals’: China fumes after US lawmakers approve Hong Kong ‘human rights act’

“We do not expect US-Chinese relations to normalize in the foreseeable future. This likely means that Chinese exports and manufacturing sector investment could see little growth over the next few years. US restrictions on technology transfers to China could also hinder productivity improvements. In this environment, China is more likely to maintain strong economic growth if the reform momentum picks up,” it states.

The two countries are preparing for yet another attempt to resolve their months-long trade dispute in talks set to be held in Washington on October 10.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/469912-sp-china-rating-high/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

According to CNPC, the proven reserves at Qingcheng oilfield in the Ordos basin stand at 358 million tons, while its estimated reserves could reach 693 million tons.

A total of 640,000 tons of oil will be produced in the oilfield this year, and the annual output is expected to reach three million tons in the near future, according to Li Luguang, vice president of PetroChina (a subsidiary of CNPC).

Also on rt.com China is now officially open for foreign oil, gas exploration

The company also reported some 740.97 billion cubic meters of newly added proven shale gas reserves, which have been explored in southwest China’s Sichuan Basin. It plans to produce 7.7 billion cubic meters of shale gas this year and expand the output to over 10 billion cubic meters by the end of 2020.

The Sichuan shale gas blocks have a total proven reserve of 1.06 trillion cubic meters, according to CNPC.

READ MORE: PetroChina’s biggest refinery doubles Russian pipeline oil intake

Li said the company will encourage technological innovations and expand the exploration of unconventional energy resources such as shale gas.

Developing domestic crude production is critical for China, which is the world’s largest consumer of oil. Last year, it imported 440 million metric tons of crude oil. The country has stepped up efforts to boost domestic production by 50 percent, increasing it by more than two million barrels per day over the next five years.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/469906-china-huge-oil-discovery/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“If the world does not take a strong and firm action to deter Iran, we will see further escalations that will threaten world interests. Oil supplies will be disrupted and oil prices will jump to unimaginably high numbers that we haven’t seen in our lifetimes,” bin Salman told the CBS program ‘60 Minutes,’ which was aired on Sunday.

Also on rt.com All options on the table, but let’s avoid war? Saudis considering military retaliation for oil attacks

“This attack [hit] the heart of the global energy industry. It disrupted 5.5 percent of the world’s energy needs, the needs of the US and China, and the whole world,” the Saudi Prince said, referring to the September 14 attacks, which hit two processing facilities of Saudi’s state-run Aramco. The incident briefly cut the Saudi oil giant’s daily output in half, sending global oil prices into a maelstrom.

While no evidence had been presented, the United States and Saudi Arabia have blamed Iran for the attacks. Tehran has dismissed all allegations of its involvement.

Despite harsh remarks towards Iran on the matter, the Saudi Prince stated that he would rather see a political solution to the argument, rather than a full-blown war.

“The political and peaceful solution is much better than the military one,” he said.

Also on rt.com Saudi Arabia to invest $100bn in India to strengthen ties diversify own economy – envoy

While repairs at the Aramco facilities are continuing, the company has been determined to keep export levels from falling. According to last week’s reports, Aramco had about 50 million barrels in storage within the country prior to the attack, plus around 80 million barrels at ports around the world.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/469905-saudi-salman-skyrocketing-oil/?utm_source=rss&utm_medium=rss&utm_campaign=RSS