The Dubai-based airline Emirates has announced a new order for 20 additional wide-body A350-900 planes in a deal worth $6.4 billion.
This brings the airline’s total order for the aircraft to 50 Airbus A350s costing $16 billion at list price.
The announcement came on Monday at Dubai’s Airshow, the Middle East’s biggest aviation event. It was also the largest order at the biennial airshow that’s seen a slowdown of big purchases by Gulf Mideast carriers.
Abu Dhabi’s flagship carrier Etihad has partnered with Boeing to launch what they say will be one of the world’s most fuel-efficient long haul airplanes as the company seeks to save costs on fuel and position itself as a more environmentally-conscious choice for travelers.
Etihad’s “Greenliner” is a 787 Dreamliner that will depart on its first route from Abu Dhabi to Brussels next year. Etihad’s CEO Tony Douglas described the aircraft as a flying laboratory for testing that could benefit the entire industry.
As fuel costs eat up a quarter of airline spending, Douglas said Monday the goal of the Greenliner is to be 20% more fuel efficient than other aircraft in Etihad’s fleet.
Aviation accounts for a small but rapidly growing share of greenhouse-gas emissions — about 2.5% worldwide.
China's top economic planner approved eight fixed-asset investment (FAI) projects with combined investment totaling 44.2 billion yuan (about 6.3 billion U.S. dollars) in October, official data showed.
The projects were mainly in the energy sector, according to data from the National Development and Reform Commission.
China's FAI remained basically stable in the first 10 months of the year thanks to robust high-tech investment.
FAI grew 5.2 percent during the January-October period. Investment in high-tech manufacturing and high-tech services rose 14.5 percent and 13.7 percent year on year, respectively.
FAI includes capital spent on infrastructure, property, machinery and other physical assets.
Saudi oil company Aramco announced on Sunday an indicative price range of 30-32 riyals per share (8-8.5 U.S. dollars) for its planned public offering (IPO) which would value the company at 1.6 to 1.7 trillion dollars.
An updated version of the IPO prospectus states that the offering will be open to qualified foreign investors (QFIs) and investors within Saudi Arabia, according to Al Arabiya TV.
Aramco is expected to offer 1.5 percent of its shares in the upcoming IPO on the Saudi Stock Exchange (Tadawul). At this valuation, the company would raise 24-25.5 billion dollars from the IPO.
The deadline to submit bid forms for institutional investors, such as banks or hedge funds, is set for December 4, while the deadline for retail investors, otherwise known as individual investors, is set for November 28.
Saudi Arabia’s state-owned oil giant Aramco announced Sunday it will sell a 1.5% stake in the company as it looks to raise as much as $25.6 billion from the sale.
The newly released figures also revealed a valuation for the company that’s between $1.6 trillion and $1.7 trillion, a figure that fell short of the $2 trillion mark Crown Prince Mohammed bin Salman had sought.
Still, a 1.5% flotation could raise between $24 billion and $25.6 billion to help fuel the Saudi economy. Saudi Aramco announced it will have 200 billion regular shares, selling 1.5% or what is 3 billion shares.
Aramco set a stock price range of 30 to 32 Saudi riyals, or $8 to $8.50 a share for investors.
The company is selling 0.5% to individual investors, which will include Saudi citizens, residents of Saudi Arabia and Gulf Arab nationals, and 1% to institutional investors, which could include major Chinese and Russian buyers.
Aramco will announce the final price for the stock when the book-building period ends on Dec. 5. Trading on the local Tadawul exchange in Riyadh is expected to happen sometime in mid-December.
The highly anticipated sale of a sliver of the company has been generating global buzz because it could clock in as the world’s biggest initial public offering, surpassing record holder Alibaba whose IPO raised $21.8 billion on its first day of trading in 2014.
Saudi Aramco is the kingdom’s oil and gas producer, pumping more than 10 million barrels of crude oil a day, or some 10% of global demand. The oil and gas company netted profits of $111 billion last year, more than Apple, Royal Dutch Shell and Exxon Mobil combined.
The kingdom’s plan to sell part of the company is part of a wider economic overhaul aimed at raising new streams of revenue for the oil-dependent country, particularly as oil prices struggle to reach the $75 to $80 price range per barrel analysts say is needed to balance Saudi Arabia’s budget. Brent crude is trading at just over $63 a barrel.
Prince Mohammed has said listing Aramco is one way for the kingdom to raise capital for the country’s sovereign wealth fund, which would then use that revenue to develop new cities and lucrative projects across Saudi Arabia.
Despite Aramco’s profitability, the state’s control of the company carries a number of risks for investors.
Two key Aramco processing sites were targeted by rockets and missiles in September, an attack which claimed by Iran-Backed Houthi rebels in neighboring Yemen but which Saudi Arabia blamed on its regional foe Iran. The government also stipulates oil production levels, which directly impacts Aramco’s output.
Wall Street closed out the week with more milestones Friday as the Dow Jones Industrial Average crossed 28,000 for the first time and the S&P 500 and Nasdaq hit record highs.
Health care and technology stocks powered most of the broad rally, which helped drive the S&P 500 to its sixth straight weekly gain. The Dow extended its streak of weekly gains to four.
Investors have been encouraged by surprisingly good corporate earnings, three interest rate cuts by the Federal Reserve and data showing the economy is still growing solidly. Hopes that the U.S. and China can make progress in their latest push for a trade deal have also helped keep investors in a buying mood.
“Over the past week the market absorbed a number of challenging trade headlines, and it didn’t go down,” said Willie Delwiche, investment strategist at Baird. “It might just be the case that with positive momentum, after not having had a chance to pull the market down, the bulls stepped in again and said: ‘Let’s keep this thing going.’”
The S&P 500 index rose 23.83 points, or 0.8%, to 3,120.46.
The Dow Jones Industrial Average gained 222.93 points, or 0.8%, to 28,004.89. The Nasdaq composite climbed 61.81, or 0.7%, to 8,540.83. The Russell 2000 index of smaller companies picked up 7.66 points, or 0.5%, to 1,596.45.
The S&P, Dow and Nasdaq are now all up by more than 20% for the year.
Bond prices fell Friday, pushing yields higher, a signal that investors were shifting away from safe-play holdings. The yield on the 10-year Treasury rose to 1.84% from 1.81% late Thursday.
Traders hope the world’s two biggest economies can make a deal before new and more damaging tariffs take effect next month. Beijing is pressing Washington to roll back tariffs as part of a potential deal that the nations are trying to hammer out.
Investors mostly shrugged off published reports this week suggesting that trade talks have hit a snag. On Friday, Commerce Secretary Wilbur Ross told Fox Business that it is likely a trade deal will get done, though he noted that it’s still possible a pact could unravel at the last minute as it did in when both sides got close to a deal in May.
A report showing U.S. retail sales rebounded a modest 0.3% in October after falling the previous month also encouraged traders. J.C. Penney surged after it raised its profit forecast.
Health care stocks led the way higher Friday, with insurers getting a boost after the Trump administration officially announced a rule that would require hospitals and other providers to make public the rates for drugs, doctor visits and other services. Humana climbed 5.5%, UnitedHealth Group rose 5.3% and Anthem gained 5.6%.
Technology stocks also notched solid gains. Solid quarterly earnings drove Applied Materials 9% higher, making it the biggest gainer in the S&P 500.
Communication services companies also helped lift the market. Google parent Alphabet rose 1.9%, hitting an all-time high.
The materials sector ended lower, the only one to finish with a tiny loss. Utilities and makers of household goods posted the smallest gains as investors turned away from less risky, defensive stocks.
Traders bid up shares in several big retailers. J.C. Penney climbed 6.4% after the struggling department store chain reported a smaller quarterly loss and raised its annual profit forecast. Under Armour rose 3.9% and Macy’s gained 3.4%.
RH climbed 7.6% and energy company Occidental Petroleum gained 2.9% after Warren Buffett’s company disclosed that it had picked up shares of both companies.
Amarin vaulted 11.8% after a government advisory panel recommended broader use of its fish oil-based heart disease drug Vascepa.
Benchmark crude oil rose 95 cents to settle at $57.72 a barrel. Brent crude, the international standard, gained $1.02 to close at $63.30 a barrel. Wholesale gasoline rose 2 cents to $1.64 per gallon. Heating oil climbed 3 cents to $1.95 per gallon. Natural gas rose 4 cents to $2.69 per 1,000 cubic feet.
Gold fell $4.50 to $1,467.30 per ounce, silver fell 8 cents to $16.93 per ounce and copper rose 2 cents to $2.64 per pound.
The dollar rose to 108.84 Japanese yen from 108.37 yen on Thursday. The euro strengthened to $1.1053 from $1.1022.
Asian and European markets finished higher.