Latest news with #SPGlobal
Bloomberg
4 days ago
- Business
- Bloomberg
Senator Warren Asks Ratings Firms How They Assess Private Credit Risk
Senator Elizabeth Warren asked US Treasury Secretary Scott Bessent and various ratings agencies for more information on risks posed by the $1.7 trillion private-credit industry. In the letter to ratings firms including S&P Global Inc., Moody's Ratings and Fitch Ratings, the Massachusetts Democrat expressed concern that some companies may be 'inflating' ratings of private debt instruments, which could pose risks to the larger financial system.
Wall Street Journal
4 days ago
- Business
- Wall Street Journal
Senator Warren Has a New Target on Wall Street: Private Credit
Sen. Elizabeth Warren is calling for more scrutiny of the booming private-credit market, and she's homing in on the agencies that rate the industry's products. The Democrat from Massachusetts sent letters Thursday to agencies including S&P Global Ratings SPGI 0.63%increase; green up pointing triangle, Moody's MCO 0.78%increase; green up pointing triangle Ratings and Fitch Ratings, asking for information about how they score the riskiness of private-credit products.
Arab News
4 days ago
- Business
- Arab News
Saudi Arabia's retail real estate growth prospects strong: S&P Global
RIYADH: International retail brands attracted by social and economic shifts in Saudi Arabia are set to deliver real estate sector growth to the Kingdom, according to an analysis. In its latest report, S&P Global stated that the residential real estate sector in the nation also appears strong, with young Saudi families relocating to cities in search of work opportunities. Strengthening the real estate sector is one of the crucial goals outlined in Vision 2030, as Saudi Arabia continues to diversify its economy away from oil and position itself as a global business and tourist destination. The Kingdom's Real Estate General Authority expects the property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024. In its latest report, S&P Global said: 'Saudi retail real estate growth prospects are strong. Significant social and economic changes in the Kingdom are making it a major target market for international brands in the fashion, luxury, and food and beverage segments. As a result, demand for premium retail space is increasing.' In June, global real estate consultancy Knight Frank, also echoed similar views, stating that Saudi Arabia's commercial real estate sector is witnessing exponential growth, with rents for Grade A office spaces in the Kingdom's capital reaching SR2,700 ($719.95) per sq. meter by the end of the first quarter, representing a 23 percent rise compared to the same period in the previous year. In its latest analysis, S&P Global noted that Saudi Arabia's retail landscape is expected to face several challenges, including oversupply, particularly in the shopping mall sector. 'Saudi retail real estate could face a supply wall. Knight Frank forecasts Riyadh's supply to grow by 50 percent by 2027 and Jeddah's to grow 75 percent over the same period. This could lead to rental discounts, revenue-sharing lease models, and other incentives to maintain occupancies,' said S&P Global. The US-based agency further stated that the Kingdom's retail real estate sector has strong growth prospects, provided that careful planning and market positioning are implemented, which are expected to help mall owners ensure long-term success. In a broader context, the report projected that Dubai and Abu Dhabi are experiencing resilient demand and modest rental growth for retail real estate, with prime super-regional malls continuing to dominate the market, which has led to mall owners expanding their offerings. S&P Global added that Dubai's commercial real estate sector is booming, as vacancy rates remain at an all-time low of 8.6 percent, and demand for grade-A offices drives up rentals. 'Supportive regulations for businesses, dynamic economic environment, and the low tax regime sustains the city's attractiveness for global businesses and family offices,' said the report. S&P Global cautioned that oversupply in the oil market will continue to outweigh slow oil demand growth through 2025 and beyond, and this could negatively impact the growth of real estate sectors in both Saudi Arabia and Dubai. 'Unfavorable tariffs could also lead to economic slowdown and weaker market sentiment. This could have some impact on residential prices and rents as we believe there is good correlation, despite Dubai's economy being less reliant on oil. Saudi Arabia and its spending on Vision 2030 remain highly dependent on oil prices,' added the report. According to the analysis, the current ceasefire between Israel and Iran has reduced immediate regional credit stress; however, an escalated, prolonged geopolitical conflict could lead to an expatriate exodus from the region, severely impacting real estate prices and rents.
Arab News
6 days ago
- Business
- Arab News
Saudi Arabia raises $1.34bn through July sukuk issuance
RIYADH: Saudi Arabia's National Debt Management Center raised SR5.02 billion ($1.34 billion) through its riyal-denominated sukuk issuance for July, marking a sharp 113.6 percent increase compared to the previous month. In June, the Kingdom issued sukuk worth SR2.35 billion, while May and April saw issuances of SR4.08 billion and SR3.71 billion, respectively. Sukuk are Shariah-compliant financial instruments that offer investors partial ownership in an issuer's underlying assets, making them a popular alternative to conventional bonds. According to NDMC, the July issuance was divided into four tranches. The first tranche, valued at SR776 million, will mature in 2029. The second, worth SR1.34 billion, is set to mature in 2032, followed by a third tranche of SR823 million due in 2036. The largest tranche, totaling SR2.08 billion, will mature in 2039. Saudi Arabia's debt market has witnessed robust growth in recent years, attracting strong investor interest in fixed-income instruments amid a global environment of rising interest rates. In April, Kuwait Financial Center, also known as Markaz, reported that Saudi Arabia led the Gulf Cooperation Council in primary debt issuances during the first quarter of the year. The Kingdom raised $31.01 billion from 41 offerings, accounting for over 60 percent of total issuances across the region. Credit rating agency S&P Global noted in April that Saudi Arabia's expanding non-oil sector and steady sukuk issuance volumes are likely to support the growth of the global Islamic finance industry. The agency forecasts global sukuk issuance to reach between $190 billion and $200 billion in 2025, with foreign currency-denominated offerings contributing up to $80 billion, assuming market conditions remain stable. Echoing that outlook, a report by Kamco Invest published in December said Saudi Arabia is expected to account for the largest share of bond maturities in the GCC between 2025 and 2029, with $168 billion set to mature during the period. Earlier this month, S&P Global reiterated its positive view, stating that the global sukuk market is on track to maintain its momentum in 2025, with foreign currency-denominated issuances projected to reach between $70 billion and $80 billion.
Forbes
14-07-2025
- Business
- Forbes
Yergin: America's Copper Hunger Increasingly Hard To Feed
WASHINGTON, DC - FEBRUARY 03: U.S. President Donald Trump (R) greets S&P Global Vice Chairman ... More Daniel Yergin at the beginning of a policy forum in the State Dining Room at the White House February 3, 2017 in Washington, DC. (Photo by) In a study published in July, 2022, researchers at S&P Global projected a 'looming mismatch' related to global supply and demand for copper, a critical energy metal which is integral to meeting the world's energy needs. I wrote then that the future of copper was coming at us fast, and recent events indicate a potential crisis could well be arriving ahead of schedule. Using Tariffs To Spur Copper Mining As part of his administration's efforts to incentivize major new investments in the U.S. mining sector, President Donald Trump said on July 8 that he will impose a 50% tariff on copper imports effective August 1. 'I am announcing a 50% TARIFF on Copper, effective August 1, 2025, after receiving a robust NATIONAL SECURITY ASSESSMENT,' Trump wrote in a post on Truth Social. 'Copper is necessary for Semiconductors, Aircraft, Ships, Ammunition, Data Centers, Lithium-ion Batteries, Radar Systems, Missile Defense Systems, and even, Hypersonic Weapons, of which we are building many. Copper is the second most used material by the Department of Defense.' Whether the President's strategic approach to spurring domestic investment in new mines will succeed is an open question, but his assessment of the ubiquitous presence of copper as integral to pretty much every weapons system and mode of transportation key to America's defense is undeniable. For the Pentagon, the current situation in which the U.S. imports roughly 45% of its daily copper needs (per U.S. Commerce Department data) this represents a national security risk even though most imports originate in Chile and Canada. But, as S&P Global's study points out, access to adequate copper supplies is crucial to the energy sector, too, especially if the stalling energy transition is to continue in any meaningful way. Copper may well be even more crucial to meet the enormous electricity needs for AI and datacenters and the Pentagon's rising needs due to beefed-up military spending. Due mainly to its relative abundance and high degree of conductivity, copper has been a preferred metal in electricity applications since the days of Nikola Tesla and Thomas Edison. In its study, S&P Globaldescribes copper as 'the metal of electrification,' adding that 'Unless the impending supply gap for 'the metal of electrification' is closed in a timely way, Net-Zero Emissions by 2050 will be short-circuited and remain out of reach.' In a recent interview, Daniel Yergin, S&P Global Vice Chairman and author of the best-selling 'The New Map: Energy, Climate, and the Clash of Nations,' told me copper is such a vital strategic resource that his company is in the process of compiling a new study to be titled 'Copper in the Age of AI,' scheduled for publication in November. Yergin says his concerns about the ability of the global community to meet rapidly rising energy demands have only increased since 2022 Aldie, VA - January 20:On what was recently farmland, Amazon data centers have been built as close ... More as 50 feet from residential houses in the Loudoun Meadows neighborhood on January 20, 2023, in Aldie, VA. A Microsoft data center is under construction in at top right. As the data center industry expands its footprint in Northern Virginia, often building massive commercial structures near residential neighborhoods, communities push back with their concerns.(Photo by Jahi Chikwendiu/The Washington Post via Getty Images) 'I think the world is not prepared for the scale of the demand in order to meet these ambitions around AI, around defense, around energy transition, and then traditional demands,' Yergin says. 'So, I think it is really critical to focus in on these minerals and what must happen to assure that you have the supply to keep your economy running.' Timelines For Copper Mines Are A Major Roadblock While tariffs could help jumpstart new mining projects in the U.S., Yergin warns of obstacles to increasing domestic energy security in the near term, mainly due to issues around timing. 'On average around the world, it takes about 16 years from discovery of a new mine to first production. Currently in the United States, it takes 29 years,' he points out, adding, 'I mean, you start and then your career is over. It's an entire career spent on a single mine.' We discussed the fact that, starting in the first Trump administration in 2017, repeated attempts have been mounted to streamline federal permitting processes, to little effect. Trump and his key cabinet officials - Lee Zeldin at EPA, Chris Wright at the Energy Department, and Interior Secretary Doug Burgum - have permitting reform at the top of their agenda, too. And, as Yergin points out, shrinking the timeline to first production is one of the top priorities of the new National Energy Dominance Council headed up by Burgum. Yergin notes that there are at least two big new copper projects being developed in Arizona, but their production start dates remain years away. And, as all the administrative and congressional wheels keep spinning, there is a risk that timelines could keep extending. Ore truck at copper mine in Montana. 'And it isn't just permitting' that extends timelines to first production, Yergin says. 'it's the subsequent judicial review that goes on and on. There are some great proposed projects in the United States that, instead of mining ore, just end up mining legal briefs instead.' In a detailed, comprehensive piece in Foreign Affairs published in February, Yergin, writing with Peter Orszag and Atul Arya, foresaw the looming heightened prioritization of domestic mining for copper and other critical energy minerals, predicting 'a shift from 'big oil' to 'big shovels.' Such an increase would mean 'more mining and processing, driven by major new investments and resulting in much-expanded industrial activity.' But, Yergin, Orszag and Arya add, 'the complexities surrounding mining and critical minerals represent another major constraint on the pace of the energy transition.' The Future For Copper And U.S. Energy Security Unlike most other critical energy minerals, U.S. imports of copper do enjoy the current advantage of supply chains not under the dominance of China's government. But, with the uncertain nature of Chile's government and with China's investments and Belt-and-Road Initiative already making significant inroads into Latin America, no one can predict how long that will remain the case. Increasing tensions between the U.S. and Canada driven by concerns over tariffs and border security issues also serve to elevate future supply concerns. Meanwhile, America's vibrant tech sector keeps rolling out a steady stream of new energy hungry technologies, causing overall demand to accelerate at an increasingly rapid pace. All of which means that Trump's instinct that the U.S. should get back into the hardrock mining business in a big way is on point regardless of the way the tariff strategy plays out. Most discussions around copper, critical energy minerals, and domestic mining over the past half-decade centered on the needs of the government-subsidized energy transition. Yergin points out that the entire energy transition project as outlined over the last several years is not happening, adding 'it is a process that needs to be rethought, needs to catch up with reality.' While that is happening, the discussion around copper and mining for it must refocus on how America will be able to keep the lights on and the electrons flowing in the coming years. It's a complex question with no easy answers.
