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National Commercial Bank, Saudi Arabia’s largest lender by assets, agreed to buy rival Samba Financial Group for $15 billion in the biggest banking takeover this year.

NCB will pay 28.45 riyals ($7.58) for each Samba share, according to a statement on Sunday, valuing it at about 55.7 billion riyals. The kingdom’s sovereign wealth fund, the biggest single shareholder in the two banks, will have the largest stake in the combined entity with 37.2%.

The new bank will have total assets of more than $220 billion, creating the Gulf region’s third-largest lender. Its $46 billion market capitalization nearly matches that of Qatar National Bank QPSC, which is still the Middle East’s biggest lender with about $268 billion of assets.

Banks in the oil-rich Gulf have been combining as regional economies suffer the twin shocks of lower energy revenues and the global coronavirus pandemic. The Saudi consolidation also coincides with a long-awaited wave of banking mergers in Europe, where lenders are exploring tie-ups or have begun taking over smaller rivals.



chart: New Pecking Order


© Bloomberg
New Pecking Order

“Under NCB’s management, better value should be realized from Samba’s over-capitalized assets,” CI Capital analysts including Sara Boutros said in a note to clients. “The deal also provides NCB with a larger capacity to grow more aggressively, particularly in the corporate space, as the market stabilizes and as lending opportunities emerge.”

Read more: Moody’s Sees Virus and Oil Shocks Speeding Up Gulf Bank Mergers

Merging two major domestic banks is a key component of Crown Prince Mohammed bin Salman’s “Vision 2030” initiative to diversify the Saudi economy away from oil by creating local champions in industries such as finance. Besides the Public Investment Fund, the largest shareholders in the combined NCB-Samba entity will include the Saudi Public Pension Agency, which will own 7.4%,

Gold bullion bars after being polished at the ABC Refinery in Sydney on August 5, 2020.


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Gold was up by close to 40% for the year when it hit a record high in August, but it has since nearly halved that gain, and some analysts say a move to fresh all-time highs in the final quarter may be out of reach for the precious metal.

“Gold has enjoyed a meteoric rise this year, hitting a record in early August on the back of a weak dollar and continued [Federal Reserve] support,” says Matt Orton, vice president at Carillon Tower Advisers. The Fed actions drove real rates lower, “making cash and Treasuries much less attractive, and gold a better alternative.”

Futures prices for the precious metal settled at a record $2,069.40 an ounce on Aug. 6. On Oct. 7, it settled at $1,890.80, up 24% year to date.

“Negative U.S. real rates have stabilized and started to move higher in August,” with gold moving lower as a result, Orton says. The impact of real rates and the dollar are key drivers of gold prices, not equity investor sentiment, and “with economic data continuing to show signs of a recovery, I would expect this rise in real rates to continue, as well as a general strengthening of the dollar—an additional headwind for gold.” Prices for the metal aren’t likely to reach new record highs in the near future, he says.

The Fed pledged in September to hold its benchmark interest rate between zero and 0.25% until labor-market conditions reached a certain level and inflation was on track to moderately exceed its 2% target rate “for some time.” The fed-funds rate is below zero in real terms, which takes inflation into account.

Real rates, however, stopped plunging after

So far this year, Airbus has sold 379 planes or a net total of 300 after cancellations. Photo: Getty
So far this year, Airbus has sold 379 planes or a net total of 300 after cancellations. Photo: Getty

Airbus (AIR.PA) reached the highest number of monthly deliveries in September, although order activity remained quiet as COVID-19 continues to hammer the aviation sector.

It delivered 57 jets in September this year, up from 39 in August and exceeding the 55 achieved in February 2020, just before the onset of the airline crisis.

The European planemaker made 341 deliveries over the last nine months including 18 A220s, 282 A320 Family, 9 A330s and 32 A350s. This figure was down 40% from the 571 deliveries the same period last year, with the fall in output triggered by the pandemic.

A significant number of planes were delivered from a parked backlog. Its backlog stands at 7,441 aircraft compared to 7,133 at the same point in 2019.

The only order change registered was the reduction of Macquarie Financial Holdings’ order for 40 A220-300s, which has been revised to 37.

In total, Airbus booked 300 net commercial plane orders compared with 127 net orders compared to the same time period last year.

READ MORE: Coronavirus: Future of airline industry in governments’ hands

While the company axed guidance at the outset of the coronavirus crisis, industry sources told Reuters that it is targeting 500 deliveries in 2020, having delivered more than three quarters of that “target” already.

In 2019, Airbus delivered a record annual total of 863 jets. So far this year, it has sold 379 planes or a net total of 300 after cancellations.

Airbus trails ahead of US rival Boeing (BA), which sold 67 jets by the end of August and had a negative net total of 378 orders dominated by cancellations for the 737 Max, which has been grounded for 18 months after

The wealth of the world’s billionaires reached record heights this year despite the global coronavirus crisis, led by tech, health and industry “innovators and disruptors” like Elon Musk, said a report published Wednesday.

By the end of July, the cumulative wealth of billionaires stood at around $10.2 trillion, according to a study by Swiss bank UBS and accounting giant PricewaterhouseCoopers.

That exceeded the previous peak of $8.9 trillion recorded in 2017.

The annual inventory of the super-rich’s fortunes identified 2,189 dollar billionaires at the end of July — 31 more than in 2017.

The report noted that the coronavirus crisis accelerated a trend in this select club that is seeing “innovators and disruptors” in the technology, healthcare and industry sectors edge out those in more traditional areas like entertainment or real estate.

But it gave rise to some sharp criticism at a time of pandemic-led economic hardship.

“Billionaires doing very nicely out of the #Covid_19 pandemic, ordinary people left with debt, businesses collapsing, unemployment rocketing, people suffering and making huge sacrifices whilst the worlds richest laugh all the way to the bank!,” tweeted Angela Rayner, deputy leader of Britain’s Labour Party.

The report nevertheless said billionaires had “given more than ever before in a space of a few months.”

According to the report, the pandemic initially had an impact on the world’s billionaires.

Elon Musk is one of the world's richest people Elon Musk is one of the world’s richest people Photo: AFP / Odd ANDERSEN

Their wealth fell 6.6 percent in February and March as the world feared for economic growth.

A stock market crash in March saw some tumble out of the billionaires’ club, before a sharp rebound in technology and health stocks began.

Soon, their wealth had bounced back by 27.5 percent between April and the end of July.

“Fortunes are polarising as business innovators and

Inclination toward lowering weight of vehicles and rise in production and sales activities of automobiles worldwide fuel the growth of the global automotive bearings market

PORTLAND, Ore., Oct. 7, 2020 /PRNewswire/ — Allied Market Research published a report, titled, Automotive Bearings Market by Bearing Type (Ball Bearing, Roller Bearing, and Others) and Vehicle Type (Passenger Car, Commercial Vehicle, and Two-wheeler), and Distribution Channel (OEM and Aftermarket): Global Opportunity Analysis and Industry Forecast, 2020–2027.” According to the report, the global automotive bearings industry generated $31.60 billion in 2019, and is estimated to reach $48.41 billion by 2027, growing at a CAGR of 6.8% from 2020 to 2027.

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Prime determinants of growth

Focus on overall weight reduction of vehicles and surge in production and sales of automobiles across the globe drive the global automotive bearings market. However, rise in vehicle electrification and variations in raw materials hinder the market growth. On the other hand, advent of sensor bearing units and development of additive manufacturing technologies and materials present new opportunities in the coming years.

Download Report Sample (249 Pages PDF with Insights, Charts, Tables, Figures) at https://www.alliedmarketresearch.com/request-sample/6122

Covid-19 Scenario

  • Owing to lockdown restrictions, manufacturing factories have shut down their operations. Moreover, lockdown resulted in the disrupted supply chain, which in turn, created a shortage of raw materials.

  • Labors have returned to their hometowns with the closedown of manufacturing facilities. Though manufacturing activities resumed post-lockdown, there is a shortage of laborers.

  • Research and development activities have been stopped due to the shutdown of facilities. However, they would gain traction as facilities begin to operate with full capacity.

  • Vehicle sales and demand for advanced technology-based bearings would boost post-lockdown, as daily operations in production plants and supply chain get on track.

Get detailed COVID-19 impact analysis on the