Capex super cycle: Saudi to invest $1trln in economy by 2030

Saudi Arabia is poised to invest $1 trillion in a “capex super cycle”, with 73% of the capital infusion designated to fuel the kingdom’s non-oil economy by 2030, according to Goldman Sachs.

Goldman Sachs also highlights an estimated $25 billion-per-year funding gap for the country’s capex projects, while shifting focus on alternative sources of financing to address liquidity concerns.

Saudi Arabia’s realignment on developing its non-oil economy has seen a notable shift from the earlier forecast, which pegged the country’s non-oil investment at 66%, Faisal AlAzmeh, who heads CEEMEA equity research at the US-based investment bank, said.?

According to estimates, capex in the oil sector likely to shrink by $40 billion between 2024 and 2028.

While natural gas will remain “a key contributor to the country’s decarbonisation, economic development, and diversification plans,” according to AlAzmeh, Saudi’s potential investments in “upstream” oil and gas have shrunk to $190–$220 billion from the previous range of $230–$260 billion, the study found.

Saudi goes Green

Flexing its Muscle, Turkey Is Spreading Its Influence in Africa

• Ankara to begin searching for oil off Somalia’s coastline
• Turkish drones have been sold to at least 11 African countries

Turkey, seeking to extend its influence in Africa and strengthen energy security, will send the 86-meter long research vessel Oruc Reis to explore offshore oil blocks belonging to Somalia next month.

The move, confirmed by Mohamed Hashi, director of Somalia’s petroleum ministry, could help diversify Turkey’s crude supply and is part of Ankara’s steady quest to boost ties in a region where China, Russia, Gulf states and the West also vie for sway.

Drawn by the continent’s mineral wealth and growing populations that could drive a new wave of economic growth, the focus makes a lot of sense for the county as it flexes its international clout.

“Africa is interesting for Turkey because it’s a point where it can experiment with all its newfound activist foreign policy tools and objectives,” said Batu Co?kun, an Ankara-based research fellow at the Libyan Sadeq Institute think tank.

“It’s soft power on the one hand, such as aid, education and Turkish language centers. And trade and economic relations on the other hand,” he said.

Bloomberg

Capex super cycle: Saudi to invest $1trln in economy by 2030

The Little Streamer That Could

Tubi has exploded in popularity over the past 18 months, outpacing some competitors with much bigger budgets.

When Nicole Parlapiano joined Tubi as its marketing chief two years ago, one of the most searched questions about the decade-old streaming service was, “Is it a scam?” It was free, after all, and consumers were skeptical.

“Would it put a virus on your computer?” Ms. Parlapiano said. “People wouldn’t even touch it.”

That’s not an issue now.

Tubi has exploded in popularity over the last 18 months, establishing itself as one of the most popular streaming outfits in the United States. It now consistently outranks Peacock, Max, Paramount+ and Apple TV+ in total viewing time, according to Nielsen — and is drawing even with Disney+. Only YouTube, Netflix, Amazon and Hulu are still ahead.

The streaming service, which is owned by the Fox Corporation, runs a different business model from those competitors. In addition to being free — with revenue coming from advertising — it doesn’t require an account to use, making it more similar to services like Roku and Pluto. And it comfortably commands more engagement than those peers, according to Nielsen.

“We’re like the little engine, and it’s just getting better and better,” Anjali Sud, Tubi’s chief executive, said.

Its sudden rise has come as something of a shock to many competitors, as well as investors.

Unlike its biggest rivals, which allocate huge budgets for original programs or premium sports rights like the N.F.L. or the N.B.A., Tubi’s library contains tens of thousands of older shows and movies, many that seem to have been collected from the bargain bin. Some popular programs on the service include the 1970s procedural “Columbo,” and an early 2000s UPN sitcom, “Everybody Hates Chris.”

Horror, thriller and true crime programs also do particularly well, executives said. Tubi also has reruns of older network programming like “Empire” and “Scandal.”

New York Times

Bad Harvests for Swiss Farmers Mean Cheaper Tomatoes for Shoppers

• System of tariffs effectively keeps out less expensive imports
• Government touts food security, local quality as justification

Bad news for Swiss farmers is good for consumers who pay the highest food prices in Europe.

A system of tariffs designed to protect Switzerland‘s agriculture industry effectively shuts out imports if a product can be produced domestically. Conversely, if bad harvests or a surge in demand mean there isn’t enough meat, fruit and vegetables, levies can be slashed on cheaper goods from abroad.

“In the summer, when domestic products hit the market, prices rise,” said Maxime Botteron, an economist at UBS. “It’s exactly the opposite of what happens in the surrounding euro zone, where prices drop if internal supply rises.”

The result is that crops such as cherry tomatoes are usually cheaper when they’re out of season.

What sounds like a paradox is kept in place by the government, under pressure from the country’s strong agriculture lobby, to protect local farmers and ensure food independence. Consumers have largely been willing to accept the tradeoff, especially as inflation has remained far below the level seen in the euro area.

Bloomberg