Ursula von der Leyen re-elected to a second 5-year term as European Commission president

Ursula von der Leyen reacts after being chosen President of the European Commission for a second term, at the European Parliament in Strasbourg, France, July 18, 2024. (Reuters)
Ursula von der Leyen reacts after being chosen President of the European Commission for a second term, at the European Parliament in Strasbourg, France, July 18, 2024. (Reuters)
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Updated 18 July 2024
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Ursula von der Leyen re-elected to a second 5-year term as European Commission president

Ursula von der Leyen reacts after being chosen President of the European Commission for a second term, at European Parliament.

STRASBOURG, France: Lawmakers at the European Parliament on Thursday re-elected Ursula von der Leyen to a second 5-year term as president of the European Union’s executive commission, giving her a comfortable majority and heading off a possible leadership vacuum.
Von der Leyen raised both fists in victory as the Parliament President Roberta Metsola read out the result at the legislature.
“5 more years. I can’t begin to express how grateful I am for the trust of all MEPs that voted for me,” she said on the social media platform X.
The re-election ensures leadership continuity for the 27-nation bloc as it wrestles with crises ranging from the war in Ukraine to climate change, migration and housing shortages.
German Chancellor Olaf Scholz was quick to send his congratulations on X, calling von der Leyen’s re-election “a clear sign of our ability to act in the European Union, especially in difficult times. Europeans expect us to take Europe forward. Let’s do it!”
A majority in the 720-seat legislature voted for the German Christian Democrat after a speech in which she pledged to be a strong leader for Europe in a time of crisis and polarization.
Von der Leyen gained 401 of the 707 votes cast. There were 284 votes against her candidacy, 15 abstentions and seven void ballots.
The secret ballot came hot on the heels of strong gains by the far right in last month’s election for the European Parliament.
“I will never let the extreme polarization of our societies become accepted. I will never accept that demagogues and extremists destroy our European way of life. And I stand here today ready to lead the fight with all the Democratic forces in this house,” von der Leyen said in her final pitch.
If lawmakers had rejected her candidacy, it would leave leaders of the 27-nation bloc scrambling to find a replacement as Europe grapples with crises ranging from the war in Ukraine to climate change. Instead, the continent now has an experienced pair of hands at the helm.
In a speech that sought to shore up support from across the political spectrum, von der Leyen pledged to strengthen the EU economy, its police and border agencies, tackle migration and pursue policies tackling climate change while also helping farmers who have staged protests against what they call stifling EU bureaucracy and environmental rules.
She also vowed to tackle housing shortages across Europe and said she would appoint a commissioner for the Mediterranean region due to the multiple challenges it faces.
She also took a swipe at Hungarian Prime Minister Viktor Orbán and his recent visit to Russia shortly after his country took over the rotating six-month EU presidency.
“This so-called peace mission was nothing but an appeasement mission,” von der Leyen said as she vowed that Europe would remain shoulder-to-shoulder with Ukraine.
One radical right lawmaker, Diana Iovanovici-Sosoaca of Romania, was escorted out of the parliament’s chamber for heckling a speaker during the debate following von der Leyen’s speech. Iovanovici-Sosoaca briefly wore what appeared to be a muzzle and held up religious icons before being led out of the room.
Over the past five years, von der Leyen has steered the bloc through a series of crises, including Britain’s exit from the EU, the COVID-19 pandemic and Russia’s invasion of Ukraine. She has also pushed a Green Deal aiming to make the EU climate-neutral by 2050.
Von der Leyen’s election came as newly elected UK Prime Minister Keir Starmer was welcoming some 45 heads of government to discuss migration, energy security and the threat from Russia as he seeks to restore relations between the UK and its European neighbors.
EU leaders signed off on the conservative German von der Leyen at a summit meeting late last month. The 65-year-old von der Leyen’s bid was boosted when the European People’s Party, which includes von der Leyen’s Christian Democratic Union, remained the largest group at the EU Parliament after the elections.
The German politician has been praised for her leading role during the coronavirus crisis, when the EU bought vaccines collectively for its citizens. But she also found herself receiving sharp criticism for the opacity of the negotiations with vaccine makers.
The EU general court ruled Wednesday that the commission did not allow the public enough access to information about COVID-19 vaccine purchase agreements it secured with pharmaceutical companies during the pandemic.
Before voting got underway, a majority of lawmakers rejected a motion from a leftist bloc in parliament calling for the election to be delayed until September in light of the court ruling.
Following the elections for EU Parliament, European Union leaders agreed on the officials who will hold the key positions in the world’s biggest trading bloc in the coming years for issues ranging from antitrust investigations to foreign policy. At the side of von der Leyen will be two new faces: Antonio Costa of Portugal as European Council president and Estonia’s Kaja Kallas as the top diplomat of the world’s largest trading bloc.
While Costa’s nomination only needed the leaders’ approval, Kallas will also need to be approved by European lawmakers later this year. The Estonian prime minister is a staunch supporter of Ukraine and a fierce critic of Russia within the European Union and NATO.


Oil Updates — prices gain as Trump tariffs stoke supply worries

Oil Updates — prices gain as Trump tariffs stoke supply worries
Updated 2 min 44 sec ago
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Oil Updates — prices gain as Trump tariffs stoke supply worries

Oil Updates — prices gain as Trump tariffs stoke supply worries

LONDON: Oil prices rose on Monday after US President Donald Trump imposed tariffs on Canada, Mexico and China, raising fears of supply disruption, though gains were capped by concern over what could be an economically damaging trade war.

Brent crude futures rose $1.28, or 1.7 percent, to $76.95 a barrel by 3:32 p.m. Saudi time after touching a high of $77.34.

US West Texas Intermediate crude futures were up $1.89, or 2.6 percent, at $74.42 after touching their highest since Jan. 24 at $75.18.

Trump’s sweeping tariffs on goods from Mexico, Canada and China kicked off a trade war that could dent global growth and reignite inflation.

The tariffs, which will take effect on Feb. 4, include a 25 percent levy on most goods from Mexico and Canada, with a 10 percent tariff on energy imports from Canada and a 10 percent tariff on Chinese imports.

“The relatively soft stance on Canadian energy imports is likely rooted in caution,” Barclays analyst Amarpreet Singh said in a note.

“Tariffs on Canadian energy imports would likely be more disruptive for domestic energy markets than those on Mexican imports and might even be counterproductive to one of the president’s key objectives — lowering energy costs.”

Goldman Sachs analysts expect the tariffs to have limited near-term impact on global oil and gas prices.

Canada and Mexico are the top sources of US crude imports, together accounting for about a quarter of the oil US refiners process into fuels such as gasoline and heating oil, according to the US Department of Energy.

The tariffs will raise costs for the heavier crude grades that US refineries need for optimum production, industry sources said.

Gasoline pump prices in the US are certainly expected to rise with the loss of crude for refineries and the loss of imported products, said Mukesh Sahdev at Rystad Energy.

Trump has already warned that the tariffs could cause “short-term” pain for Americans.

US gasoline futures jumped 2.5 percent to $2.11 a gallon after touching the highest level since Jan. 16 at $2.162.

“It is clear that the tariffs will have a negative effect on the global economy, with physical markets set to get tighter in near term, pushing crude prices higher,” said Panmure Liberum analyst Ashley Kelty.

Investors will also be watching for news from an OPEC+ meeting on Monday, with expectations that the oil producer group will stick to its current plan of gradual increases to output.

Rystad’s Sahdev added that tariffs, if kept for long, have the potential to cause production losses in Canada and Mexico, which could help OPEC+ to unwind output curbs.


Banking, healthcare to drive 8% growth in Saudi stock market profits in 2025: SNB Capital 

Banking, healthcare to drive 8% growth in Saudi stock market profits in 2025: SNB Capital 
Updated 6 min 54 sec ago
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Banking, healthcare to drive 8% growth in Saudi stock market profits in 2025: SNB Capital 

Banking, healthcare to drive 8% growth in Saudi stock market profits in 2025: SNB Capital 

RIYADH: Saudi stock market profits are set to grow by 8 percent in 2025, with the petrochemical sector driving the increase, according to a new report by SNB Capital. 

Banking and healthcare are also expected to see big rises, with the industries benefiting from increased loan activity and expanded operations. 

If petrochemicals are excluded from the analysis — with energy giant Aramco dominating the market — the Saudi stock exchange would see a 14 percent growth in profits.

This broad-based growth across key sectors highlights the resilience and dynamism of the Saudi economy, setting the stage for heightened market activity and increased investor confidence. 

These favorable conditions have translated into a surge in initial public offerings, with strong demand from both institutional and retail investors driving significant gains in 2024.

The petrochemical field is projected to record substantial growth of 74 percent in 2025, driven by improved prices, additional production capacities, and a return to full operational activity following widespread maintenance closures in 2024. 

The healthcare division is anticipated to achieve a 23 percent rise in net profits, up from 11 percent in 2024, driven by a 20 percent revenue increase attributed to new expansions that help mitigate margin pressures. 

The cement sector is also poised for strong growth, supported by the acceleration of mega projects, while the car rental industry is expected to benefit from fleet expansion, operational efficiencies, and lower interest rates, though short-term rental margins could face some pressure. 

Strong expectations for IPO activity in 2025 have been bolstered by lower interest rates, accelerating economic activity, and attractive investor incentives, according to SNB Capital.

Macroeconomic sentiment remains favorable, with over 85 percent of managers forecasting at least three interest rate cuts in 2025, signaling a shift toward easier financial conditions. 

The report underlines a growing proportion of managers who view the market as undervalued relative to its fair worth, though a majority still consider it fairly valued at its peak. 

Oil prices are expected to stabilize in 2025, with most fund managers predicting a range between $70 and $79 per barrel. 

Optimism is rising across sectors such as tourism, banking, and construction, while cautious views persist for the energy and petrochemical industries as they continue to navigate challenges. 

The strong market activity witnessed in 2024 lays the foundation for the optimistic forecasts for 2025, as the momentum generated by increased IPOs, rising transaction values, and sectoral recovery is expected to carry forward into the coming year. 

The Tadawul All-Share Index recorded a sharp increase in IPOs in 2024, reversing a decline in the prior year. 

The number of IPOs rose to 14, up from eight in 2023, with total proceeds reaching SR14.2 billion, compared to SR11.9 billion the previous year. 

Institutional subscription coverage rates improved significantly, averaging 126 times in 2024 compared to 61 times in 2023, while retail subscription coverage increased to an average of 16 times from 11 times. 

Market activity surged in 2024, with the number of negotiated deals reaching approximately 3,500, compared to 918 in 2023 and 1,316 in 2022, according to SNB. 

Negotiated deals generally refer to transactions that are arranged through direct agreements between buyers and sellers rather than through open market auctions or bidding processes. 

In the context of the stock markets, it can imply block trades, private placements, or structured deals involving large volumes of shares or assets that require direct negotiation to determine terms such as price and volume. 

Although the average deal size declined to SR24 million from SR34.6 million in 2023, the total value of transactions climbed to SR84 billion, significantly higher than SR29.5 billion in 2023 and SR38.9 billion in 2022. 

Major offerings contributed to increased market liquidity and a higher proportion of free-floating shares. 

Among them, Saudi Aramco’s secondary offering in June stood out as the largest secondary issuance in the Middle East, Europe, and North Africa since 2000. 

The offering raised SR42 billion through the sale of 1.55 billion shares at SR27.25 per share, surpassing the scale of its 2019 IPO. 

Saudi Telecom Co. followed with a secondary offering in November, generating SR38.6 billion through the sale of 2 percent of its public shares, or approximately 100 million shares. 

Meanwhile, SAL Logistics Services completed an IPO valued at SR6 billion, with shares expected to be distributed to shareholders in early 2025 at an estimated value of SR7 billion. 


Cautious optimism in Bangladesh as post-Hasina relations with Pakistan grow

Cautious optimism in Bangladesh as post-Hasina relations with Pakistan grow
Updated 4 min 45 sec ago
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Cautious optimism in Bangladesh as post-Hasina relations with Pakistan grow

Cautious optimism in Bangladesh as post-Hasina relations with Pakistan grow
  • Head of Bangladesh interim government has met Pakistani PM twice since taking office on Aug. 8
  • In 2024, Pakistani cargo ships began to arrive at Bangladesh’s main port for the first time in over 50 years

Dhaka: The ouster of Bangladeshi Prime Minister Sheikh Hasina last August has opened a “new horizon of opportunities” for diplomacy with Pakistan, analysts, political parties and members of the public said, as Dhaka and Islamabad move to befriend each other after decades of acrimonious ties.

The head of Bangladesh’s interim government, Nobel laureate Muhammad Yunus, has met with Pakistani Prime Minister Shehbaz Sharif twice since taking office on Aug. 8 after Hasina fled the country following a student-led popular uprising against her government.

Hasina’s government was hostile toward Pakistan but closely allied with India, where she remains exiled. While her removal from office was followed by the cooling of relations between Dhaka and New Delhi, exchanges with Islamabad started to grow.

“The recent developments, in terms of bilateral exchanges with Pakistan, are a process to normalize the relationship. For various reasons, it was below the normal level in the last 15 years. Now, an opportunity has been created to normalize the relationship, which is natural between two states,” Humayun Kabir, former Bangladeshi ambassador to the US, told Arab News.

“I believe India can approach this bilateral relationship normally if they choose to. From India’s perspective, there is no reason to view it negatively. We want the relationship between India and Bangladesh to be considered bilaterally, without being influenced by issues with Pakistan. Similarly, our bilateral relationship with Pakistan will continue independently of any issues with India. I think this approach will create a dynamic in the relationship within the broader context of South Asia.”

Political parties that were in opposition to Hasina’s Awami League party’s government — its archrival the Bangladesh Nationalist Party and the largest Islamist party Bangladesh Jamaat-e-Islami, which was banned during her rule — were both optimistic about growing Pakistan ties.

“During the previous regime, Sheikh Hasina maintained close ties with only one country. In her own words, she said: ‘What Bangladesh has given to India, India will remember forever.’ This foreign policy was not the right approach,” said Matiur Rahman Akand, spokesperson of Jamaat-e-Islami.

Nawshad Zamir, the international affairs secretary of the Bangladesh Nationalist party, also welcomed the fact that the two nations had “resumed normal relationship, like before.”

But the memory of the 1971 war for independence remains alive.

Jamaat-e-Islami was at the time an active political party and during the war was aligned with Pakistan, opposing the independence movement.

On the other hand, the Bangladesh Nationalist Party was founded by Ziaur Rahman, a prominent Bangladesh Forces commander and one of the leading figures of the independence war.

While for both parties the normalization of ties with Islamabad is a welcome development, ordinary Bangladeshis see it with a dose of caution.

“We can establish regional cooperation. And I think this is a chance to become a regional leader … (but) personally, I believe that Pakistan first needs to deal with the 1971 issue,” said Mustafa Musfiq Talukdar, student at Dhaka University.

“In 1974, (Pakistan’s then Prime Minister) Zulfiqar Ali Bhutto came to Bangladesh and he kind of apologized personally, but it wasn’t something formal. So, we demand a formal apology from Pakistan for everything they did in 1971.”

For Tamim Muntaseer, a Dhaka-based researcher, an official apology was also essential for the relationship to move forward.

“We have seen that a new horizon of opportunities with Pakistan has been created. And I think this should be supported in terms of justice,” he said.

“Bangladesh and Pakistan are aligned in terms of their regional economy, trade … We should also consider people-to-people relationships.”

Such exchanges have already been underway over the past few months. Since December, Pakistani artists have been performing in Dhaka, while Bangladeshi films have been screened at cinemas in Pakistan.

Pakistani cargo ships also began to arrive at Bangladesh’s main Chittagong port for the first time since the 1971 war.

“I am quite positive about the current developments between Bangladesh and Pakistan,” Tahmid Al-Mudassir Choudhury, another Dhaka University student, told Arab News.

“I am not saying that we must forgive everything. Still, we can keep a good relationship with Pakistan … We have seen that in cricket: Bangladeshi people supporting the Pakistani cricket team, and the people of Pakistan also supporting the Bangladeshi cricket team. We can celebrate those similarities, and this can bring the people of Bangladesh and Pakistan together.”


Saudi project clears 732 Houthi mines in Yemen

Saudi project clears 732 Houthi mines in Yemen
Updated 29 min 2 sec ago
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Saudi project clears 732 Houthi mines in Yemen

Saudi project clears 732 Houthi mines in Yemen

RIYADH: Members of Saudi Arabia’s Project Masam removed 732 explosive devices from various regions of Yemen last week.

The total included 11 anti-personnel mines, 31 anti-tank mines, 685 unexploded ordnances and five explosive devices, according to a recent report.

Ousama Al-Gosaibi, the initiative’s managing director, said a total of 480,526 mines had been cleared since its inception in 2018.

The explosives were planted indiscriminately and posed a threat to civilians, including children, women and the elderly.

The demining operations took place in Marib, Aden, Jouf, Shabwa, Taiz, Hodeidah, Lahij, Sanaa, Al-Bayda, Al-Dhale and Saada.

The initiative trains local demining engineers and provides them with modern equipment. It also offers support to Yemenis injured by the devices.

Teams are tasked with clearing villages, roads and schools to facilitate safe movement for civilians and the delivery of humanitarian aid.


HR ministry revises wage protection rule

HR ministry revises wage protection rule
Updated 32 min 31 sec ago
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HR ministry revises wage protection rule

HR ministry revises wage protection rule

RIYADH: Saudi Arabia’s Ministry of Human Resources and Social Development has reduced the wage protection file upload period on the Mudad platform from 60 to 30 days, effective March 1.

Previously, establishments could upload files in a two month period, but they must now submit them within one month to ensure accuracy and compliance with wage agreements and payment timelines, the Saudi Press Agency reported on Monday.

The ministry made this change after a study found that 91 percent of establishments already upload wage files within 30 days.

The goal is to enhance compliance, ensure timely wage payments, and strengthen trust in the work environment, the SPA reported.

Establishments are urged to upload wage files on time and review Payroll Management System details to meet program requirements, support labor market stability, and protect workers’ rights.