RIYADH: Larry Fink, chairman and CEO of BlackRock investments, said his statement from a 2020 investment letter that “climate risk is investment risk” is truer than ever, though he admits any energy transition is not going to be a straight line.
Fink made these statements during a panel discussion last week at the Future Investment Initiative Institute’s regional summit, “Inclusive ESG for Emerging Markets.”
“In the last two years,” said Fink, “there has been a remarkable change in attitude worldwide.” He added: “Every energy company understands the need to be moving forward,” as seen in the high demand for decarbonization and carbon capture technologies.
Fink said one of the biggest shifts he has witnessed is more money going into sustainable strategies. “I believe in the long run, some of these strategies will prove to be successful while others may not, but that’s the case with any investment in new technologies.”
He emphasized the importance of providing pathways to sustainability for traditional energy companies. It has to be a “fair and just transition,” said Fink.
-Oil prices ease on recession fears, headed for 3rd weekly loss
OPEC+ sticks to oil output policy, avoids debate on September
Traders prepare for long Fourth of July holiday weekend
Some Norway oil workers to strike from July 5
Updated 19 sec ago
TOKYO: Oil prices eased on Friday as lingering fears of a recession demand weighed on sentiment, putting the benchmarks on track for their third straight weekly losses, according to Reuters.
Brent crude futures were down 20 cents, or 0.2 percent, at $108.83 a barrel by 0428 GMT, giving up earlier gains of over $1.
WTI crude futures for August delivery slid 37 cents, or 0.4 percent, to $105.39 a barrel, also surrendering an early gain of nearly $1.
Both contracts fell around 3 percent on Thursday.
“Earlier in the session, the market took a breather from Thursday’s sell-off as the OPEC+ gave no surprise, saying it would stick to its planned oil output hikes in August,” said Tsuyoshi Ueno, senior economist at NLI Research Institute.
“But uncertainty over OPEC+ policy in and after September and fears that the aggressive rate hikes by the Federal Reserve would lead to a US recession and hamper fuel demand dampened sentiment,” he said.
On Thursday, the OPEC+ group of producers, including Russia, agreed to stick to its output strategy after two days of meetings. However, the producer club avoided discussing policy from September onwards.
Previously, OPEC+ decided to increase output each month by 648,000 barrels per day (bpd) in July and August, up from a previous plan to add 432,000 bpd per month.
US President Joe Biden will make a three-stop trip to the Middle East in mid-July that includes a visit to Saudi Arabia, pushing energy policy into the spotlight as the United States and other countries face soaring fuel prices that are driving up inflation.
Biden said on Thursday he would not directly press Saudi Arabia to increase oil output to curb soaring prices when he sees the Saudi king and crown prince during a visit this month.
“All eyes are on whether or not Saudi Arabia or any other Middle Eastern oil producers would bolster output to respond the US request,” NLI’s Ueno said.
Elsewhere, 74 Norwegian offshore oil workers at Equinor’s Gudrun, Oseberg South and Oseberg East platforms will go on strike from July 5, the Lederne trade union said on Thursday, likely shutting about 4 percent of Norway’s oil production.
Oil prices are expected to stay above $100 a barrel this year as Europe and other regions struggle to wean themselves off Russian supply, a Reuters poll showed on Thursday, though economic risks could slow the climb. (Reporting by Stephanie Kelly and Yuka Obayashi; editing by Richard Pullin and Kim Coghill)
Google to pay $90 million to settle legal fight with app developers
Some 48,000 app developers are eligible to apply for the $90 million fund, if the court approves the proposed settlement
Updated 01 July 2022
WASHINGTON: Alphabet Inc’s Google has agreed to pay $90 million to settle a legal fight with app developers over the money they earned creating apps for Android smartphones and for enticing users to make in-app purchases, according to a court filing.
The app developers, in a lawsuit filed in federal court in San Francisco, had accused Google of using agreements with smartphone makers, technical barriers and revenue sharing agreements to effectively close the app ecosystem and shunt most payments through its Google Play billing system with a default service fee of 30 percent.
As part of the proposed settlement, Google said in a blog post it would put $90 million in a fund to support app developers who made $2 million or less in annual revenue from 2016-2021.
“A vast majority of US developers who earned revenue through Google Play will be eligible to receive money from this fund, if they choose,” Google said in the blog post.
Google said it would also continue to charge a 15 percent commission to developers who make $1 million or less annually from the Google Play Store. It started doing this in 2021.
The court must approve the proposed settlement.
There were likely 48,000 app developers eligible to apply for the $90 million fund, and the minimum payout is $250, according to Hagens Berman Sobol Shapiro LLP, who represented the plaintiffs.
Apple Inc. agreed last year to loosen App Store restrictions on small developers, striking a deal in a class action. It also agreed to pay $100 million.
In Washington, Congress is considering legislation that would require Google and Apple to allow sideloading, or the practice of downloading apps without using an app store. It would also bar them from requiring that app providers use Google and Apple’s payment systems.
SpaceX’s Starlink Internet gets US regulator’s nod for use with ships, boats, planes
SpaceX has steadily launched some 2,700 Starlink satellites to low-Earth orbit since 2019
It has amassed hundreds of thousands of subscribers, including many who pay $110 a month for broadband Internet
Updated 01 July 2022
WASHINGTON: The US Federal Communications Commission on Thursday authorized Elon Musk’s SpaceX to use its Starlink satellite Internet network with moving vehicles, green-lighting the company’s plan to expand broadband offerings to commercial airlines, shipping vessels and trucks.
Starlink, a fast-growing constellation of Internet-beaming satellites in orbit, has long sought to grow its customer base from individual broadband users in rural, Internet-poor locations to enterprise customers in the potentially lucrative automotive, shipping and airline sectors.
“Authorizing a new class of terminals for SpaceX’s satellite system will expand the range of broadband capabilities to meet the growing user demands that now require connectivity while on the move,” the FCC said in its authorization published Thursday, echoing plans outlined in SpaceX’s request for the approval early last year.
SpaceX has steadily launched some 2,700 Starlink satellites to low-Earth orbit since 2019 and has amassed hundreds of thousands of subscribers, including many who pay $110 a month for broadband Internet using $599 self-install terminal kits.
The Hawthorne, California-based space company has focused heavily in recent years on courting airlines around Starlink for in-flight WiFi, having inked its first such deals in recent months with Hawaiian Airlines and semi-private jet service JSX.
“We’re obsessive about the passenger experience,” Jonathan Hofeller, Starlink’s commercial sales chief, said at an aviation conference earlier this month. “We’re going to be on planes here very shortly, so hopefully passengers are wowed by the experience.”
SpaceX, under an earlier experimental FCC license, has been testing aircraft-tailored Starlink terminals on Gulfstream jets and US military aircraft.
Musk, the founder and CEO of SpaceX, has previously said that the types of vehicles Starlink was expected to be used with pursuant to Thursday’s authorization were aircraft, ships, large trucks and RVs. Musk, also the CEO of electric car maker Tesla Inc, had said he didn’t see “connecting Tesla cars to Starlink, as our terminal is much too big.”
Competition in the low-Earth orbiting satellite Internet sector is fierce between SpaceX, satellite operator OneWeb, and Jeff Bezos’s Kuiper project, a unit of e-commerce giant Amazon.com which is planning to launch the first prototype satellites of its own broadband network later this year.
Bitcoin falls below $19,000, further shaking crypto markets
Updated 01 July 2022
Bitcoin dropped 6.1% to $18,866.77 at 2004 GMT on Thursday, putting the biggest and best-known cryptocurrency down $1,226.41 from its previous close and down 60.9% from the year's high of $48,234 on March 28.
Several big players in the cryptocurrency markets have had difficulties, and further declines could force other crypto investors to sell holdings to meet margin calls and cover losses.
Ether, the coin linked to the ethereum blockchain network, dropped 7.5% to $1,016.08 on Thursday, losing $82.38 from its previous close.
Both digital assets have struggled since U.S. based lender Celsius Network this month said it would suspend withdrawals. Bitcoin and ether were further rattled by the apparent insolvency of crypto hedge fund Three Arrows Capital, which a person familiar with the matter told Reuters has entered liquidation.
Many of the industry's recent problems can be traced back to the spectacular collapse of so-called stablecoin TerraUSD in May, which saw the stablecoin lose almost all its value, along with its paired token. (Reporting by Mrinmay Dey in Bengaluru and Hannah Lang in Washington; Editing by David Gregorio)
Crypto rules to make Europe global leader as prices plunge
EU to subject cryptocurrency transfers to money laundering rules
Updated 01 July 2022
RIYADH: Europe prepares to lead the world in regulating the cryptocurrency industry at a time when prices have plunged, wiping out fortunes, fueling skepticism and sparking calls for tighter scrutiny.
The EU took a first step late Wednesday by agreeing on new rules subjecting cryptocurrency transfers to the same money laundering rules as traditional banking transfers.
A much bigger move was expected as EU negotiators hammer out the final details late Thursday on a separate deal for a sweeping package of crypto regulations for the bloc’s 27 nations, known as Markets in Crypto Assets, or MiCA.
The EU rules are “really the first comprehensive piece of crypto regulation in the world,” said Patrick Hansen, crypto venture adviser at Presight Capital, a venture capital firm.
“I think there will be a lot of jurisdictions that will look closely into how the EU has dealt with it since the EU is first here,” Hansen said.
He expected authorities in other places, especially smaller countries that don’t have the resources to draw up their own rules from scratch, to adopt ones similar to the EU’s, though “they might change a few details.”
Companies issuing or trading crypto assets such as stablecoins face tough transparency requirements requiring them to provide detailed information on the risks, costs and charges that consumers face.
Providers of bitcoin-related services would fall under the regulations, but not bitcoin itself, the world’s most popular cryptocurrency that has lost more than 70 percent of its value from its November peak.
Russia probes 400 cases
The Federal Financial Monitoring Service of the Russian Federation is trying to detect around 400 cases in which cryptocurrencies are involved, the agency’s director, Yury Chikhanchin, revealed the number during a meeting with President Vladimir Putin.
Russian law enforcement authorities have already initiated 20 criminal cases related to digital assets, Bitcoin.com reported.
Chikhanchin acknowledged that Russians continue to actively use cryptocurrency platforms located outside the country.
“This phenomenon continues to exist. And only on two foreign sites, two exchanges, several hundred thousand Russian citizens participate in transactions worth tens of billions,” he said.
According to official data released earlier this year, the number of lawsuits related to cryptocurrency mining in Russia exceeded 1,500 in 2021.
$100 million crypto hack
Digital investigative firms have concluded that North Korean hackers are most likely responsible for an attack last week that took as much as $100 million in cryptocurrency from a US company, according to Reuters.
Cryptocurrency assets were stolen on June 23 from Horizon Bridge, a service provided by Harmony blockchain that transfers assets between blockchains. The hackers’ activity since then suggests they may be affiliated with North Korea, which experts say is among the most prolific cyberattackers.
The UN sanctions monitors say Pyongyang uses the stolen funds to finance its nuclear and missile programs.