Good morning, wonderful people. The newsflow continues to be mixed today as we close in on the weekend, although Aramco’s 3Q 2024 earnings are in the spotlight here at home.

MEANWHILE- Saudi Tadawul Group wants to boost the Kingdom’s capital markets landscape by studying more M&A transactions, Chief Strategy Officer Lee Hodgkinson tells Bloomberg. The goal is to look at “‘digestible’ and ‘strategically relevant acquisitions,’” the business information service said, although no further details were made available. “Hodgkinson didn’t rule out bolting on other stock exchanges in the future, but said the group’s current focus is on diversifying its revenue mix,” according to Bloomberg.

WEATHER– Riyadh is looking at a high of 32°C and a low of 20°C today. Over in Jeddah, the mercury will peak at 33°C and hit a low of 27°C. Meanwhile, Madinah is looking at some light rainfall with a high of 33°C and a low of 21°C.

PSAs-

Businesses subject to withholding tax to file their October tax returns by next Sunday, 10 November, via The Saudi Zakat, Tax and Customs Authority’s (Zatca) online portal, it said in a news release. Late penalties amount to 1% of the unpaid tax for every 30 days of delay.

WATCH THIS SPACE-

#1- China plans to issue up to USD 2 bn in bonds in Saudi Arabia next week, marking its first US-denominated debt sale since 2021, Bloomberg reports. Analysts suggest the bond sale is largely symbolic but could lead to further issuances as USD funding costs potentially decrease as the US Federal Reserve continues cutting interest rates.

IN CONTEXT- The Kingdom and China ties have been growing closer: China’s Baosteel, Aramco, and the Public Investment Fund (PIF) committed to more than double their investments in a joint venture focused on steel plate production in Saudi Arabia earlier this year. The PIF also acquired a 12% stake in Chinese PC maker Lenovo.

#2- Himmah Capital Investment Company secured a license from the Capital Market Authority to manage and advise on securities, after fulfilling all business requirements, according to a statement. Himmah is a Riyadh-based advisory and private equity firm that is a wholly owned subsidiary of Dubai-based Himmah Capital.

DATA POINTS-

#1- Expatriate remittances grew 23% y-o-y to SAR 12.2 bn in September, Argaam reports, citing central bank data. On a m-o-m basis, remittances increased 3% to SAR 365 mn.

#2- Consumer spending via point-of-sale transactions in the Kingdom rose 36.6% w-o-w for the week ending 2 November at SAR 15.2 bn, according to the Saudi Central Bank’s (Sama) weekly transactions report (pdf). Similarly, the number of transactions was up 18.6% at 227.8 mn transactions.

The breakdown: Spending was highest in the food and beverage sector (SAR 2.5 bn), followed by restaurants and cafes (SAR 2.1 bn). Riyadh led the pack in terms of weekly spending with SAR 5.1 bn across 71.5 mn transactions. Jeddah and Dammam followed at second and third with SAR 1.9 bn and SAR 745.7 mn in weekly PoS transactions.

SPORTS-

#1- Coco Gauff secured her spot in the semifinal match of the WTA Finals in Riyadh after defeating Iga Swiatek in a decisive two-set match. Gauff’s 6-3, 6-4 victory not only breaks Swiatek’s six-match WTA Finals streak but also positions Gauff as the youngest to reach back-to-back semis since Wozniacki in 2009, according to the WTA website.

Barbora Krejcikova also made it through to the semis after defeating Jessica Pegula 6-3, 6-3 yesterday.

#2- The PIF is reportedly planning an unprecedented offer to bring Real Madrid’s Brazilian winger Vinicius Jr. to Saudi, Madrid Universal reports. While there has yet to be an official offer, the proposal is rumored to include a hefty financial package and promotional roles in the hopes of securing the La Liga star. Vinicius has long been on the Kingdom’s radar, with past offers reportedly reaching USD 1 bn.

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THE BIG STORY ABROAD-

No surprises here: Election Day in the US is fully dominating news coverage in the international press this morning, as polls close and the ballot counting continues. The counting is likely to take several days, particularly as this year’s elections are closely contested and several states are “too close to call” and likely to hinge on the results from the country’s seven swing states — Georgia, North Carolina, Pennsylvania, Arizona, Michigan, Nevada, and Wisconsin.

What we know so far: Donald Trump is so far in the lead, with victories in Texas and Florida — each of which have a large number of electoral votes — as well as a smattering of other states. Kamala Harris has secured a victory so far in Washington, D.C., Vermont, and Massachusetts, among others. Meanwhile in the Senate, the Republican Party has so far gained a seat and is closing in on a majority.

You can check out live results from the Associated Press, Reuters, the New York Times, the Wall Street Journal. The Financial Times and Bloomberg also have coverage.

IN NON-ELECTION NEWS- Israeli Prime Minister Benjamin Netanyahu fired Defense Minister Yoav Gallant and appointed Israel Katz — who was foreign minister — in his stead. Gideon Saar is now Israel’s foreign minister in Katz’s place. Netanyahu’s decision to fire Gallant — a move he was reportedly considering for weeks — is due to the two disagreeing on critical issues, including Gallant supporting a ceasefire and hostage release agreement with Hamas in Gaza. The former defense minister was also pressing for an investigation into the country’s security failures in Hamas’ 7 October attack, and opposes a law that would allow ultra-Orthodox Jews to be exempt from mandatory military service. Reuters, the Financial Times, Axios, and Bloomberg have the story.

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