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Saudi Arabia's GDP grew by 3.4% in the first quarter, exceeding flash estimates
Saudi Arabia's economy grew more than anticipated in the first quarter 2025, according government data estimates. Lower oil prices had a less significant impact on the economy than originally forecast. The Saudi General Authority for Statistics released a flash estimate of 2.7% in May. This was a significant improvement over the initial estimates. Monica Malik is the chief economist of Abu Dhabi Commercial Bank. She said that "the upward revision" was due to both a smaller contraction in the oil sector each year and a stronger growth in private sector. Initial estimates showed a contraction of 1.4%. The non-oil sector grew by 4.9%, compared with estimates made last month that indicated a 4.2% rise. Increased oil production in the Kingdom may have blunted the impact of lower oil price. Riyadh faces an increasing budget deficit. The International Monetary Fund says that Riyadh requires oil prices above $90 per barrel for its books to be balanced. Prices of $60 per barrel were the norm in recent weeks. Saudi Arabia, the largest oil exporter in the world, lowered the price of its July crude oil for Asian buyers beginning of June after the Organization of the Petroleum Exporting Countries (OPEC+) increased output for a forth month. OPEC+ has agreed to a further big increase in output of 411,000 bpd, after increasing output by the same amounts in May and June. Saudi Arabia has embarked on a costly transformation program called Vision 2030, which aims to wean its economy off of oil dependence. It has also been investing billions in massive new development projects. The Financial Times reported that in May, Saudi Finance Minister Mohammed Al-Jadaan stated the kingdom would take stock of its priorities as a result of a decline in oil revenues. Malik said that he expects to see a reduction in government spending, to reduce the growing fiscal deficit. This will also likely have an impact on the non-oil sector's growth. Daniel Richards is a senior economist with Emirates NBD. He said the bank still believes that spending levels will continue to be high. He wrote that there are still enough projects in progress to support growth at least through this year and the next. Saudi Arabia has committed to hosting a number of large international events. Each event will require significant expenditure on construction and development. The 2029 Asian Winter Games will feature artificial snow, a freshwater lake created by man, and the World Cup in 2034, where 11 new stadiums and some renovated ones will be constructed. Saudi Arabia's fiscal deficit in 2025 is expected to be around 101 billion Riyals ($27 billion). Pesha Magd is reporting; Toby Chopra is editing.
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Grossi: Iran's obtaining IAEA documentation is bad and shows poor co-operation.
Rafael Grossi, the chief of the U.N. Nuclear Watchdog agency, said that Iran's purchase of secret documents from the watchdog is a "bad" step and goes against the spirit that should exist between Tehran and the agency. In a confidential report sent to its member states by the International Atomic Energy Agency on May 31, it said that "conclusive proof" had been provided by Iran of Iran's active collection and analysis of Agency documents. The report stated that this "raises grave concerns regarding Iran's collaboration spirit" and could undermine IAEA work in Iran. But Tehran, in a recent statement to IAEA member states, said the accusations in the report were "slanderous", and that they had been made without "presenting any substantiated evidence or document". This week, the 35-nation Board of Governors of the IAEA will hold a quarterly meeting. The United States will propose to the board a resolution that declares Iran in violation of its obligations to non-proliferate due to other failures detailed in the report. Grossi said at a press briefing that "here, unfortunately, this is a situation that dates back a few year ago... We could tell with absolute clarity that documents belonging to the agency had been in the Iranian authorities' hands, which was bad." "We do not believe this action is compatible with the spirit and purpose of cooperation." Grossi responded: "No. We have received documents from our member states and we also have our own assessments of documents, equipment, etc. (Reporting and editing by William Maclean, Francois Murphy)
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Argentex, a UK-based company, rejects Lavide’s investment proposal
Argentex announced on Monday that it had rejected a proposal by Lavide Holding NV, based in the Netherlands, to acquire a 50% stake of the British currency risk management company for 2.5 million pounds (3.39 million dollars) and a possible provision of a credit line up to 15 million pounds. The British company refused the proposal because it did not cover the entire share capital or provide sufficient funding compared with an agreement made with IFX Payments. According to LSEG, Lavide has a current market capitalisation worth 3 million euros. Argentex experienced a near-total collapse of value after it halted trading in April. It was one of the earliest casualties in a prolonged bout of turmoil in global financial markets caused by trade tensions. By 1134 GMT, shares of the company had risen 22.4% to 3 pence. Argentex accepts a Takeover offer IFX Payments, a cross-border payment provider, valued the company at approximately 3 billion pounds in late April. It also provided it with a secure bridge funding of around 6.5 million pounds.
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US and Chinese officials will meet in London to discuss important trade issues
The top U.S. officials and Chinese officials are due to meet on Monday in London for talks to defuse the high-stakes dispute over trade that has grown in recent weeks to include more than just tit-fortat tariffs, but also export controls of goods vital to global supply chains. The two superpowers would meet in the elegant Lancaster House, to try and get back on track after a preliminary deal struck last month at Geneva had temporarily cooled the tensions between Washington and Beijing. The talks were scheduled to begin around 1130 GMT Monday. Both economies are in a critical period, as investors seek relief from the flurry of tariff orders issued by U.S. president Donald Trump since his return to White House. A UK government spokesperson announced on Sunday that the next round of U.S.-China trade talks will take place in the UK on January 1. "We are a country that has always championed free trade, and we have been clear that a war in trade is not in anyone's interest. So, we welcome these discussions." A U.S. delegation led by Treasury Sec. Scott Bessent will gather with Commerce Sec. Howard Lutnick, U.S. trade representative Jamieson Greer and a Chinese delegation headed by Vice Premier He Lifeng. In Geneva, the two sides agreed on reducing steep import taxes that each side had imposed on the other's products. This had resulted in a trade ban between the No. In recent weeks, U.S. officials have accused China of not keeping its promises, especially in relation to rare earths shipments. Lutnick's inclusion, whose agency is responsible for export controls in the U.S.A., shows how important rare earths have become. He didn't attend the Geneva talks where the countries reached a 90-day agreement to reduce some of the triple digit tariffs that they placed on eachother. CONCLUSION POSITIVE The second round of talks comes just four days after Trump spoke with Chinese leader Xi Jinping by phone. It was their first direct contact since Trump's inauguration on January 20, 2017. During the call that lasted more than an hour, Xi warned Trump against threatening actions on Taiwan and urged him to drop trade measures which were causing global economic turmoil. Trump posted on Twitter that the trade-focused talks had "a very successful conclusion," which set the stage for the meeting on Monday in London. Next day, Trump announced that Xi agreed to resume shipments of rare earth minerals and magnets to the U.S. China's April decision to halt exports of magnets and minerals was a major blow to the supply chains of automakers, aerospace companies, semiconductor firms and military contractors. Karoline leavitt, White House spokesperson, told Fox News' "Sunday Morning Futures," on Sunday: "We want China to and the United States continue moving forward" with the Geneva agreement. The administration has been closely monitoring China's compliance to the agreement, and we are hopeful that this will lead to more comprehensive trade negotiations. The preliminary agreement in Geneva has sparked an international relief rally on stock markets. U.S. indices, which were in or near bear-market levels, have recovered the majority of their losses. S&P 500 Index is only 2% off its mid-February record high. At its lowest point, the index was down 18% in early April after Trump announced his "Liberation Day", sweeping tariffs on all goods around the world. The last third of the rally was triggered by the U.S./China truce in Geneva. This temporary agreement did not address the broader issues that are straining the bilateral relationship. These include the illicit fentanyl traffic, the democratically-governed Taiwan, and U.S. complaints against China's export-driven, state-dominated economic model. The UK government will host the discussions on Monday, but it will not participate in them. Instead, the Chinese delegation will hold separate talks with the UK later this week. As investors awaited news, the dollar fell against all major currencies. Oil prices were also little changed. Reporting by Trevor Hunnicutt, Nathan Layne, Brenda Goh, and Kate Holton, in Washington; Writing and editing by Dan Burns, Chris Reese, and Toby Chopra.
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VinFast's Q1 losses grow on higher spending and increased deliveries
VinFast, a Vietnamese electric vehicle manufacturer, reported a net loss for the sixth consecutive quarter on Monday as it continues to increase spending in order to boost sales. VinFast has reported a loss of $712.4 millions for the first three months. This is less than the $1.3billion loss from the previous quarter, but 15% higher than one year ago. According to LSEG, the average analyst forecast was a loss of $616.3 millions. The revenue jumped by 150%, to $656.50 million between January and March. This compares with the analysts' estimated average of $520.50 million. The quarter saw a nearly 300% increase in deliveries, reaching 36,330 cars, mostly due to sales in Vietnam, the biggest market. VinFast, backed by Vietnam's biggest conglomerate Vingroup, continues to face challenges because of weak consumer demand, stiff competitors, and the 25% tariff that the U.S. imposed on imported cars. VinFast had previously identified the U.S. market as a major growth market. VinFast's gross margin was minus 35.2% for the first quarter of this year, compared to minus 58.7% one year ago. VinFast Chairman Thuy Le said: "Despite Q1 being typically our slowest quarterly, deliveries in the first quarter 2025 were higher than our total deliveries during the first half of the previous year. This is an encouraging start for 2025 despite the global uncertainty." The company is intensifying its promotional efforts in the United States, switching to a dealership-based model instead of its expensive showrooms. It has also shifted its focus towards Asia with a new assembly plant set to open in India in July. The company said that the costs of sales had more than doubled in the first three months compared to the previous year. VinFast has been losing money every quarter since its IPO in August 2023. Its founder and CEO Pham Nhat Vuong, and Vingroup have provided financial support of around $2 billion as of May. Third Bridge, a research firm, noted in a report on pre-earnings that "while its VF3 compact SUV is driving volume sales, the company still loses money on each car it sells." It said that "the bill of materials" was estimated to be higher than Tesla's and BYD's, in part because VinFast lacked scale and paid a premium to its suppliers who were wary about the company. VinFast's shares rose by 14.04% before the market opened. In the third quarter, the company announced that it would launch its next-generation platform as well as an electrical architecture for the Limo Green model. The existing EVs will be supported by this platform next year. Reporting by Phuong nguyen from Hanoi, and Akash Sriram from Bengaluru. Shinjini Ganuli and Mark Potter edited the article.
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PwC: Argentina to experience a boom in M&A under Milei with energy as the focus
Argentina's mergers and acquisitions market could grow significantly in the coming years if President Javier Milei's economic reforms continue, Juan Tripier, director of M&A and corporate finance at PricewaterhouseCoopers (PwC) Argentina, told . Investors are showing renewed interest in Argentina after Milei's actions, which include a sharp reduction in inflation and government spending, a restored surplus fiscal, and loosened foreign exchange controls. "Two or three years ago, you would have contacted a multinational company, an investor from abroad, and Argentina was considered a bad name. This has changed since Milei was elected president," Tripier stated in an interview in Buenos Aires. He added, "There is a lot excitement." "This excitement is shared by both international players or international investors and local players." Tripier stated that Argentina can surpass previous M&A peak years in three to five year, where there were 120-150 deals per annum, with diverse activity across sectors like agribusiness and food. In the past, multinationals in Argentina have mainly invested in energy, mining and technology. However, foreign investors will now be expected to invest more into other industries. PwC data shows that in 2024 Argentina will have recorded 99 M&A transactions, the most since 2019. Transaction values are expected to reach $8 billion, which is the highest amount since 2017. Investors remain cautious despite the recent surge in interest due to the lingering restrictions on dividend repatriation and high country risks. "Now that you are talking to investors overseas, they look at opportunities. They would have said: Argentina is not in the picture. They are now analyzing the investment and saying: "I want to wait until the economy consolidates before I make a decision," Tripier said. Vaca Muerta is the second largest unconventional gas reserve in the world and the fourth largest oil reserve. It's located in Neuquen province, one of Argentina's most popular attractions. "With the increase in investments not only in upstream development but also in infrastructure--pipelines, processing plants, and liquefied natural gas projects--we expect realignments aimed at diversifying producers' exposure, with some buying and others selling," said energy lawyer Jose Martinez de Hoz of Martinez de Hoz & Rueda. Daniel Dreizzen (former Secretary of Energy Planning, director at Aleph Energy) projects that hydrocarbon exploration investment will reach $11.553 billion by 2024. There's been lots of M&A activity. Dreizzen explained that Aleph is talking with investors who are interested in Argentina. They're cautious, given our past track record, but they're also looking for opportunities. (Reporting and editing by Eliana Razewski)
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Canadian Indigenous wildfire evacuees seek refuge at Niagara Falls
Joseph Garry, aged 63, was forced to flee the Mathias Colomb Cree Nation, or Pukatawagan in Manitoba's remote northern region, as wildfires spread. He took a helicopter from his Mathias Colomb Cree Nation reserve. He and other evacuees took three different government flights, before boarding a shuttle bus to reach Niagara Falls, Canada’s most popular tourist attraction, some 2,000 km from his home. Since the beginning of May, scores of wildfires have spread across Canada, forcing more than 35,000 people to flee in three provinces. Smoke has also been spreading into the United States and disrupting crude and mining production. The indigenous communities were particularly hard hit. First Nations make up less than 5% of Canada’s population but they are the ones most affected by wildfires this year. Manitoba is battling its largest ever fire evacuation effort. The province is running out of room for the early evacuees, who took refuge in Winnipeg's community and sports centers. Officials are now forced to look to other places, such as Ontario's Niagara Falls which has plenty of hotels. According to Jo Zambito of the Niagara Falls Fire Department, around 2,000 evacuees are currently staying in four Niagara Falls hotels. Niagara Falls Mayor Jim Diodati said that while the city was proud to assist fellow Canadians in a time of crisis, the federal and province governments should consider other accommodations as the peak tourist season nears. In Manitoba, indigenous leaders have criticised both the federal and provincial governments over inadequate communication and delays delivering resources requested during the wildfire crises. Meanwhile, residents of Pukatawagan recounted an incredibly chaotic and terrifying evacuation. Residents shared videos that showed a flurry of helicopters, both military and civilian, buzzing over the remote community with a population of about 3,000. They landed on the school's field, as flames and thick smoke began to engulf the area. A pilot informed Garry, and the 100 other passengers waiting to board the plane that the fire was just half a mile away and being pushed by the wind. "To be honest, it's... It's scary. It's scary. Garry, who is being housed by the federal government in a hotel, was in tears as he spoke. Garry, who is a manager of the local airfield left behind all of his belongings except for a few pairs of clothes and was briefly separated with two of his daughters. The 50 members of his extended family were reunited at Niagara Falls. Vanessa Hart, a 43-year-old mother who stayed at home in Pukatawagan and was evacuated to Niagara Falls said that, despite the repeated pleas of their chief and council members, help didn't arrive for another three to four days. She believes that a quicker evacuation would have avoided significant distress. Hart stated, "They didn't help immediately." Indigenous Services Canada (which managed the evacuation) said that emergency response was a shared responsibility, and in general, first response falls to local authorities. The agency released a statement saying that "the Government of Canada works alongside First Nation partners as well as Provincial and Territorial counterparts and continues to closely observe the rapidly evolving fire situation across the nation." Manitoba's government stated in an email that smokey conditions near Pukatawagan prevented water bombers to provide vital air support early in the emergency response. The report added that "Air support was used in the north wherever and whenever possible." The date that evacuees from Niagara Falls will be able to return to their homes is not certain and may depend on the time it takes to restore rail and plane access - this could take up to two months. Cindy Woodhouse Nepinak, National chief of the Assembly of First Nations, said that wildfire response in First Nations Communities has been "pretty chaos". She called for increased investment in basic infrastructure, such as fire trucks and hydrants. "We need better coordination." "We've been asking it for decades," said she.
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Copper prices boosted by optimism in US-China trade talks
Copper prices rose Monday, as optimism over U.S. China trade talks and falling inventory offset weak export data by China, the top copper consumer. At 1025 GMT, the benchmark copper price on London Metal Exchange (LME), was up by 0.3% to $9,719 per metric tonne. Last week it reached $9,809.5 per ton, its highest level since March 31. This was due to concerns about mine supply and low stocks in LME-approved warehouses. LME data show that copper stocks dropped by 10,000 tons to 122.400 tons on Friday A drop of over 50% from February. Cancelled warrants and metal earmarked to be delivered show that another 67.800 tons are due to leave the LME. The traders say that a large amount of this metal will be heading to the United States where the prices are much higher because of the threat of tariffs by the United States on copper imports. Three top U.S. aides to President Donald Trump will meet their Chinese counterparts on Monday in London to resolve the trade dispute that has been causing global markets to be on edge. Edward Meir, Marex analyst, said: "As the pressure grows on the Trump Administration to end their "tariff tantrum", and give the business community a sense of certainty, it should also be positive for commodities." China's exports slowed in May to a three month low as U.S. Tariffs hit shipments. Meanwhile, its copper imports (unwrought copper and copper-based products) fell by 16.9% on an annual basis and 2.5% on a monthly basis to 427,000 tonnes in May. The traders also said that Chinese demand had been affected by tariffs, which have impacted its manufacturing sector. Yangshan Copper Premium Last Friday, the price of, which measures China's desire to import copper, dropped to $41 per ton, its lowest level in three months. Early May saw a peak of $103, the highest level since mid-December, 2023. The overall price of industrial metals was supported by the lower dollar, which made commodities priced in dollars cheaper for those who use other currencies. Aluminium rose 0.8% to $2,471 per metric ton. Zinc fell 0.5% to $2,655, while lead grew 0.4% to reach $1,987. Tin climbed 0.3%, to $32,440, and nickel fell 0.1%, to $15,470.
Africa Oil to buy out BTG from Nigeria assets joint venture
Africa Oil stated on Monday it had actually agreed to buy out BTG Pactual Oil & & Gas's 50% holding in their Prime Oil & & Gas joint venture, in an offer that will see BTG become a significant investor in Africa Oil.
Prime has offshore producing possessions in Nigeria and accounts for 100% of Africa Oil's reserves and production. The offer is anticipated to be completed in the 3rd quarter of 2025.
Shares in Toronto-listed Africa Oil were up more than 6%. after the announcement.
On completion, BTG is expected to hold about 35% of Africa. Oil's enlarged share capital and to choose Huw Jenkins as. non-executive chair of the board and two other non-executive. directors, Africa Oil stated.
BTG, Brazil's biggest independent financial investment bank, in turn. accepted offer Africa Oil a very first take a look at possible equity. financial investments in upstream oil and gas assets and business in. Africa.
The arrangement will enhance our operations, deliver. identifiable cost savings, and increase our capital go back to. shareholders on a sustainable basis, said Africa Oil President. and CEO Roger Tucker.
The Prime joint endeavor owns an 8% participating interest in. Chevron's deep-water property in the Agbami field and. another 16% interest in three overseas fields operated by. TotalEnergies.
(source: Reuters)