Economy
London Shell Company wants U.S. investors back, although a move to the U.S. has so far been rejected
London Shell Company management in 2021 considered the possibility of leaving Europe and moving to the U.S. to increase capitalization – the decision was not made, but the motivation remains. In particular, the option of reducing the rate of decline in oil and gas production, similar to the nearest competitors from the UK, is now being studied, writes the Financial Times.
The new head of the company, Wael Sawan appointed executives to review some of Shell’s plans as the company tries to win back U.S. investors. Note that the impact of Shell Company on the value of oil is huge.
The move could deal a crushing blow to the financial center of London – the City of London, writes the publication. Shell is the largest company in Britain with a market capitalization of 176 billion pounds and revenues of 316 billion pounds. Its move to the U.S. crystallizes fears about the status of London as a financial center with a lack of new listings and a series of acquisitions that could devastate British stock markets, the newspaper notes.
Although the idea was eventually rejected, the motivation that led to the potential move remains: Savan is concerned about the gaping valuation gap between Shell and its U.S.-listed rivals ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX). In the U.S. market, Exxon and Chevron are valued at about six times the size of their cash flow. Meanwhile, Shell in London is valued at only three times its cash flow.
Shell remains one of the largest producers in the U.S. and recently commissioned a new deepwater platform in the Gulf of Mexico. Bernstein analyst Oswald Klint, writes the FT, said U.S. investors “love the potential for high returns on oil investments” and they would welcome the company slowing its transition to renewables.
Speaking to investors, Sawan said Shell would make decisions about investing in different types of energy resources depending on their profitability and alignment with energy transition goals.
Earlier, we reported that the Fed would raise the rate to 5-5.25%, the Atlanta Fed chief believes.
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
© Reuters. FILE PHOTO: Workers walk past an under-construction area with completed office towers in the background, in Shenzhen’s Qianhai new district, Guangdong province, China August 25, 2023. REUTERS/David Kirton/File Photo
SHANGHAI (Reuters) – China’s top planning body said on Saturday it had identified a second batch of public investment projects, including flood control and disaster relief programmes, under a bond issuance and investment plan announced in October to boost the economy.
With the latest tranche, China has now earmarked more than 800 billion yuan of its 1 trillion yuan ($140 billion) in additional government bond issuance in the fourth quarter, as it focuses on fiscal steps to shore up the flagging economy.
The National Development and Reform Commission (NDRC) said in a statement on Saturday it had identified 9,600 projects with planned investment of more than 560 billion yuan.
China’s economy, the world’s second largest, is struggling to regain its footing post-COVID-19 as policymakers grapple with tepid consumer demand, weak exports, falling foreign investment and a deepening real estate crisis.
The 1 trillion yuan in additional bond issuance will widen China’s 2023 budget deficit ratio to around 3.8 percent from 3 percent, the state-run Xinhua news agency has said.
“Construction of the projects will improve China’s flood control system, emergency response mechanism and disaster relief capabilities, and better protect people’s lives and property, so it is very significant,” the NDRC said.
The agency said it will coordinate with other government bodies to make sure that funds are allocated speedily for investment and that high standards of quality are maintained in project construction.
($1 = 7.1315 renminbi)
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
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