Good morning, friends. It’s one of those hump days that aren’t quite eventful in terms of newsflow, but we do have a couple of market reports to keep things interesting. Leading the news well this morning is the Capital Market Authority’s quarterly statistical bulletin, which breaks down the performance of funds and equity markets during 2Q 2024.

HAPPENING TODAY-

#1- EFG Hermes’ annual conference continues today in London, giving investors “unique and unparalleled access to leading equities in MENA and key frontier emerging markets.” The event will wrap this Thursday, 12 September.

What to watch out for today: London’s Emirates Stadium will today be hosting the conference plenary session. Group CEO Karim Awad will open the conference’s plenary session that will see Capital Market Authority Board Commissioner Abdulaziz Abdulmohsen Bin Hassan and Tadawul CEO Mohammed Al Rumaih give their insights into the kingdom’s capital markets.

**CORRECTION- We incorrectly said in yesterday’s issue that the EFG Hermes annual conference was on its second day. The conference began yesterday.

#2- It’s the last day for Savola Group’s shareholders to exercise their rights to purchase additional shares, after its SAR 6 bn rights issue wrapped up on Thursday, according to a filing to Tadawul. The Tadawul-listed player will then reduce its capital before offloading its entire 34.5% stake in Almarai to its existing shareholders.

#3- The Crown Prince Camel Festival is on its final day at the Taif Camel Racing Track. The event — which features 610 rounds of racing and a purse of SAR 56 mn — ends tomorrow.

PSAs-

#1- Tadawul will be closed to trading on Monday, 23 September in observance of National day, it said in a news release. Trading wraps up at the end of day on September 22, with markets reopening on Tuesday, September 24. The Saudi Central Bank already confirmed last week that the banking sector will also be off on Monday, 23 September, while schools are scheduled to get a four-day weekend with Sunday and Monday, 22-23 September off for the occasion.

#2- Tickets for the 2024 Saudi Games are up for grabs, state news agency SPA reported. Daily tickets are priced at SAR 10, while weekly tickets cost SAR 35, and tickets for the full length of the event cost SAR 100. The two-week competition runs from 3-17 October.

WATCH THIS SPACE-

#1- The public offering of Jadwa Saudi Equity Fund II by Jadwa Investment earned regulatory sign-off from the Capital Market Authority, according to a statement. The open-ended fund invests in a diversified, actively managed portfolio of Shariah-compliant local public equity securities, according to Jadwa Investment’s website.

#2- Al Khorayef wraps China visit: Industry and Mineral Resources Bandar Al Khorayef concluded a visit to China, during which he met with several business figures in a bid to strengthen industrial and mining partnerships, explore investment in key sectors and knowledge transfers, and drum up support for strategic investments in Saudi Arabia, state news agency (SPA) reported.

The highlights: The minister met with leaders from Guangzhou Automotive Industry Group, FOTON, Guangzhou Mino Equipment Company, and other firms to discuss partnerships in the automotive and smart vehicles sector. He also met with representatives from Jiangxi Copper, General Lithium Corporation, Biwin, Huawei Mining, Oil & Gaz, and other groups to discuss cooperation on mining, among other meetings with Chinese leaders in strategic sectors.

DATA POINTS-

The Saudi debt market is currently worth some SAR 800 bn, accounting for under 20% of the Kingdom’s economy, Capital Market Authority Chairman Mohammed Al- Quwaiz was quoted as saying by the Saudi Gazette. Despite being traditionally dominated by local lenders, the debt market now includes a wider range of investors such as funds, ins. companies and specialized entities, Al Quwaiz said, adding that the authority is working on a plan to attract more foreign investors.

OIL WATCH-

OPEC+ is sending mixed signals to global oil markets as it vies to reconcile its strategy with market realities, Bloomberg reports, citing top oil trader Trafigura’s global head of oil. The cartel’s current oil production cuts have ceded market share to US shale producers, yet oil prices remain under pressure, with Brent crude close to slipping below USD 70 per barrel. The market needs clarity on whether OPEC+ will be cautious in ramping up supply if prices recover, especially with expectations of oil supply heading into a surplus in 4Q 2024.

SPORTS-

Green Falcons coach Roberto Mancini is urging Saudi Pro League clubs to give Saudi national team players more game time, calling for more cooperation between the national team and SPL clubs, the Associated Press reports. The Saudi national team was held to a 1-1 draw against Indonesia — the lowest ranked team in our group — in last Thursday’s World Cup qualifier. “Saudi Arabia’s national team players must participate as core players with their clubs,” he said, adding that he has 20 players who seldom get any minutes in the SPL.

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THE BIG STORY ABROAD-

There is a relative calm in the international press today before the inevitable storm of US presidential news set to follow the Harris-Trump showdown that is fast approaching.

Pushing its way into the digital front pages is Google’s latest faceoff with the US Department of Justice that kicked off yesterday in Virginia, with prosecutors alleging that the tech giant violated antitrust law by using monopoly tactics to dominate the online ad market, increasing prices for publishers and advertisers across the board. The case, which could result in Google being forced to sell off its ad management arm, is being heard without a jury in a trial expected to take weeks.

The tech giant has been locked in an ongoing series of antitrust disputes with the DoJ, the most recent of which saw a judge rule last month that Google had monopolized the online search market. Some commentators pointed to the ruling as auguring more aggressive US antitrust enforcement of Big Tech, which has come under fire across the political spectrum in recent years.

And in news from another one of Silicon Valley’s major monopolists, the iPhone 16 has been officially revealed, with Apple set to begin taking pre-orders Friday in advance of the model’s official sell date of 20 September. Apple has set its sights on reviving flagging iPhone sales and encouraging users to upgrade by doubling down on AI features as part of its Apple Intelligence package — despite the fact that some of these offerings may not be available for months.

While over in the EU, calls for the bloc to get serious about competing with China and the US are growing, with Former Italian Prime Minister Mario Draghi making the case for an additional EUR 800 bn worth of investments in EU industry annually in order to strengthen the European bloc’s competitiveness.

Draghi’s much-anticipated, EU-commissioned report calls for what the Financial Times calls a “significant reorientation of economic policy,” with the former Italian premier calling for the bloc to relax competition laws to encourage market consolidation in telecom, integrate capital markets under a centralized regulatory apparatuses, unify defense procurement, and revise the bloc’s trade agenda to assure its economic independence. If implemented, the proposal would bring total levels of EU investment to between 4.4% and 4.7% of the EU’s annual GDP — levels not seen in the bloc since the 1970s.

The report isn’t “do or die,” but it is “do this, or it’s slow agony,” Draghi told the FT. “We have reached the point where, without action, we will have to either compromise our welfare, our environment, or our freedom.”

CIRCLE YOUR CALENDAR-

SRMG Academy’s technology journalism course will kick off in Riyadh next 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 next 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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