id: 2024-09-04-04:04:46:437t

Good morning, wonderful people. We’re in the final stretch of the first work week of September with a rather busy Wednesday issue. Several stories are competing for attention this morning, including Saudi’s non-oil private sector activity showing stronger signs of expansion in the August purchasing manager’s index, as well as the Public Investment Fund reportedly tapping debt markets for the fourth time this year. We have chapter and verse on these stories and more in this morning’s newswell, below.

WEATHER- Riyadh’s mercury will peak at 41°C, before dropping to a low of 28°C. Meanwhile, Jeddah will continue to see thunderstorms, with a high of 39°C, and a low of 31°C.

HAPPENING THIS WEEK-

Saudi Arabia is facing Indonesia in the third round of the Asian qualifiers for the 2026 World Cup tomorrow, state agency SPA reports. The team is wrapping up its training program held in Jeddah, with rumors that Italian coach Roberto Mancini might be leaving the team, according to VOI. Saudi Arabia ranks first in its group with 7 points.

WATCH THIS SPACE-

#1- Saudi-flagged oil tanker not attacked by Houthis? National shipping carrier Bahri issued a statement yesterday confirming that its Saudi-flagged vessel, Amjad, did not sustain an attack, but “was transiting north in the Red Sea, near another tanker that came under attack.” Bahri’s statement comes after the US Central Command said that Houthis had targeted the vessel. The story also got ink in Reuters and Bloomberg.

#2- British luxury brand Barbour is set to debut in the Kingdom, under a newly-penned agreement with Abu Dhabi-based fashion retailer Apparel Group, according to a press release. Saudi will be the latest regional market entry for Barbour, following the UAE, Bahrain, Kuwait, Oman and Qatar. No further information was provided.

#3- Samsung Pay is coming to Saudi in 4Q: E-wallet and contactless payment service Samsung Pay will be available across the country in 4Q 2024 under a freshly-inked agreement with the Saudi Central Bank, according to a LinkedIn post by the financial regulator.

#4- Aramco has its eyes on more M&A, but Horse Powertrain stake is staying as is: Aramco has no plans to increase its 10% stake in powertrain manufacturer Horse Powertrain, a joint venture with Renault and Geely, Aramco Executive Vice President Yasser Mufti tells Reuters. The oil giant signed definitive agreements in June to acquire a 10% stake in Horse Powertrain in a transaction that would value the company at EUR 7.4 bn.

DATA POINTS-

#1- Saudi ports moved up to 15th place globally for most containers handled in 2023, moving up one spot from 2022, according to a post on X citing a Lloyd’s Listreport. Jeddah Islamic Port came in 32nd place globally, while King Abdullah Port came in 70th place, and King Abdul Aziz Port came in 82nd place.

#2- The Kingdom’s non-oil trade balance with GCC countries recorded a surplus of SAR 5.7 bn in 2Q 2024, marking a 7x increase y-o-y, state news agency SPA reported, citing preliminary data from the General Authority for Statistics.

SPORTS-

FC Porto has vowed to take action against Al Ittihad for backing out of Brazilian winger Galeno’s transfer after reportedly reaching a final agreement, according to sports journalist Fabrizio Romano. Galena was said to have sealed a EUR 50 mn transfer agreement with the PIF-owned club, before it had a last-minute change of heart. The Saudi Pro League transfer window closed on Monday.

Out goes Galeno, in comes Bergwijn: Al Ittihad pursued and signed Dutch player Steven Bergwijn instead, Reuters reports. The 26-year-old winger will set the SPL club back around EUR 21 mn.

ALSO- Brazilian teen Angelo Gabriel has joined Al Nassr in a USD 25 mn move, joining Cristiano Ronaldo in the Saudi Pro League team, the Associated Press reported.

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THE BIG STORY ABROAD-

All eyes are on Wall Street in the international business press this morning, with the S&P 500 having dropped 2.1% by yesterday’s close. A 9.5% slide in Nvidia’s stock price prompted a selloff of other big tech names. Nvidia was breaking all of the wrong types of records yesterday, claiming the unenviable title of having the steepest-ever single-day loss of market cap by a US company — wiping off a whopping USD 279 bn during trading.

Traders were prepared for a rocky September, but probably not this rocky. On top of the “traditional” September slump, an upcoming US jobs report on Friday, interest rate cut speculation ahead of the Fed’s mid-month meeting, and 10 September televised debate between Kamala Harris and Donald Trump have been weighing on the market.

Analysts are increasingly wondering if this may signal the end to chip mania, which had until recently been the main driver pushing US stock markets to historic records. After all the money that has been pumped into chipmakers over the last year and a half, a period of reflection and readjustment may be a matter of course, thinks Jackson Square Capital’s Andrew Graham, telling Reuters that “all tech revolutions go through periods of disillusionment.”

But high expectations aren’t Nvidia’s only problem, with it being reported on the same day that the US Department of Justice has subpoenaed Nvidia in an antitrust probe.

It wasn’t much calmer in the oil markets, with Brent crude falling 4.9% to settle under USD74 and wiping out gains the black stuff had made throughout the year. Driving the fall was news that Libya is ready to turn back the tap back on. A dispute between competing political factions over oil revenue and control of the central bank had effectively stopped exports on the formal market.

AND IN OUR CORNER of the world, Riad Salameh faces the music … again. Former Banque du Liban head Riad Salameh was arrested yesterday in Beirut for alleged financial crimes related to USD 110 mn he amassed through the Lebanese central bank’s dealings with brokerage firm Optimum Invest.

CIRCLE YOUR CALENDAR-

The EFG Hermes London Conference kicks off in less than a week: EFG Hermes will hold its annual conference in London on 9-12 September, giving investors “unique and unparalleled access to leading equities in MENA and key frontier emerging markets.”

The Crown Prince Camel Festival runs until Tuesday, 10 September at the Taif Camel Racing Track, featuring 610 rounds of racing and a purse of SAR 56 mn.

SRMG Academy’s technology journalism course will kick off in Riyadh on Sunday, 15 September. The five-day, TikTok-backed program will run until 19 September.

Fenaa Alawwal cultural center will kick off the contemporary art forum Muntada FAA on Sunday, 15 September at the Diplomatic Quarters in Riyadh. The forum runs until Thursday, 19 September.

Smart Cities Saudi Expo 2024 runs 24-26 September at the Riyadh International Convention & Exhibition Center.

The two-day Kingdom Business and Luxury Travel Congress will kick off on Wednesday, 25 September, at the Crowne Plaza Riyadh RDC Hotel and Convention.

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