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Global Investors Dump Indian Bonds – Top 10 Global News

1. Futures Steady After S&P Record; Dollar Rebounds

A more sober mood settled on markets Friday amid fresh U.S.-China tensions and little progress on a federal spending deal in Washington. The dollar rose for the first day in five. S&P 500 futures steadied after the index closed at an all-time high on Thursday, as Congress rushed to complete a pandemic-relief deal. In a sign of renewed friction between Washington and Beijing, the U.S. Commerce Department announced it’s blacklisting Semiconductor Manufacturing International Corp. and more than 60 other Chinese companies “to protect U.S. national security.” U.S. stocks may also be more volatile than usual today with options and futures on indexes and equities set to expire.

Futures on the S&P 500 Index were little changed at early morning New York time.

The Stoxx Europe 600 Index dipped 0.1%.

The MSCI Asia Pacific Index sank 0.4%.

The MSCI Emerging Market Index declined 0.3%.

2. U.S. Blacklists More Than 60 Chinese Firms, Including SMIC

The U.S. Commerce Department announced it’s blacklisting Semiconductor Manufacturing International Corp. and more than 60 other Chinese companies “to protect U.S. national security.” “This action stems from China’s military-civil fusion doctrine and evidence of activities between SMIC and entities of concern in the Chinese military-industrial complex,” the Commerce Department said in a statement. Commerce Secretary Wilbur Ross confirmed the move in a Friday morning interview with Fox Business. It was reported first by Reuters overnight. Shares in China’s top chipmaker slid 5.2% Friday in Hong Kong on the news.

3. Global Investors Are Dumping Indian Bonds Like Never Before

Even when viewed in isolation, the $14 billion outflows from India’s bond market in 2020 is remarkable: Foreign investors have never sold so much in a single year. That they did so at a time when Chinese bonds are attracting record foreign inflows underscores just how frustrated some money managers have become with the pace of capital-market reforms by Narendra Modi’s government. While China’s steady progress on bond-market liberalization has earned it a spot in benchmark indexes and helped lure $119 billion of inflows this year, India still has some of Asia’s toughest restrictions on foreign funds. The country’s failure thus far to join China in global debt indexes is adding to investor concerns about meagre inflation-adjusted yields and a widening fiscal deficit.

4. EU Gives Johnson Fishing Ultimatum as Brexit Reaches Climax

The European Union’s chief Brexit negotiator, Michel Barnier, warned British Prime Minister Boris Johnson that he will have to accept limits on access to the single market in return for greater control overfishing — or face no deal. After his British counterpart issued a statement on Thursday night describing the talks as “blocked,” Barnier said a deal could be struck if both sides make “a real effort.” But, in a speech to the European Parliament on Friday, he gave a stark assessment of the ultimatum the EU is giving to the British: access to the EU’s single market will be conditional on keeping British fishing waters open to boats from the bloc.

5. Lloyds Bank Scraps All Bonuses for 2020 After Pandemic Hammers Profit

Lloyds Banking Group is cancelling bonuses for all staff this year as the Covid-19 pandemic weighs heavily on its earnings. A spokesperson for the bank confirmed it will not pay out any group performance share awards in light of expected profitability in 2020. Lloyds expects to set aside at least 4.5 billion pounds ($6 billion) this year for loans likely to fail in the economic turmoil that’s accompanied the pandemic. While it swung to a profit in the third quarter, full-year net income is set to be sharply lower at about 1.1 billion pounds, compared to 2.5 billion pounds in 2019. The lender had already said its group executive committee had given up their bonus entitlements for the year.

6. Finablr Uncovers $1 Billion in Hidden Debt as NMC Scandal Widens

Finablr, the listed owner of two foreign-exchange businesses, uncovered about $1 billion of debt hidden from its board that may have been used for purposes outside of the company, compounding a scandal that pushed its sister firm NMC Health into administration. The London-listed company and its creditors found that Finablr Group’s overall debt was about $1.3 billion, excluding the debt of its Travelex Holdings Ltd. unit and “materially above” its last reported figure, according to a statement. Finablr had $334 million of debt at the end of June, according to a statement at the time. Chairman B.R. Shetty resigned in the wake of this corruption scandal. The announcement of Shetty’s departure was followed by news that Britain’s tax authority intends to shut down Finablr’s UAE Exchange UK and Xpress Money Services.

7. Chinese E-Commerce Newcomers Doubles Amid IPO Frenzy

Two Chinese stocks that started trading in New York this week more than doubled Thursday amid an end-of-year frenzy for newly listed companies. Oriental Culture, a provider of e-commerce services for the collectibles and art market, climbed as much as 324%. And online organic food retailer Wunong Net Technology rose as much as 147%, adding to the 440% jump in its second trading session Wednesday. Both stocks triggered a handful of volatility halts on Thursday. 

8. Bank of Japan to Extend Covid Programs Amid Virus Surge

The Bank of Japan is widely expected Friday to extend its special funding measures for pandemic-hit businesses amid a resurgence of the virus that earlier this week forced the government to suspend domestic travel incentives. Some 66% of 38 economists surveyed said the bank will lengthen the duration of crisis programs that include increased purchases of corporate bonds and commercial paper and $1.1 trillion in funding tools to support bank lending to struggling firms. The programs are currently set to expire in March. All the analysts said the BOJ will likely keep its key interest rate and main asset purchases unchanged at the meeting.

9. Mandatory Covid-19 Vaccines for Travel Would ‘Kill the Sector’

The rollout of vaccines against Covid-19 has intensified the debate about whether they should be made mandatory, with the head of a major tourism lobby saying that doing so would cause irreparable harm to the struggling sector. “I don’t think governments will require vaccination next year” for travel, Gloria Guevara, head of the World Travel and Tourism Council, said at a press conference Thursday. “If they do that they will kill their sector.” Those first in line to get the jabs include the elderly and vulnerable, who “are the last people who will travel,” she said. Instead, rules for virus testing before departure are likely to be bolstered. So far, no country has made vaccination compulsory for people crossing borders.

10. Saudi Wealth Fund Put 2008 Crisis Lessons to Use in 2020

The fund received a $40 billion transfer from the nation’s reserves in March so it could take advantage of the crash in markets, buying stakes in companies including Citigroup, Facebook and cruise-ship operator Carnival. By the end of June, it had sold most of those stakes and switched to holding about $7 billion in exchange-traded funds. The $350 billion sovereign wealth fund is a key lever for Crown Prince Mohammed bin Salman to revive growth. He is seeking to get his economic master plan, known as Vision 2030, back on track after what may be the deepest recession the world’s largest crude exporter has experienced in decades.

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Global Markets Rally on Vaccine and Aid Hopes – Top 10 Global News

1. Stocks Hold Gains as Lawmakers Debate Over Economic Aid

U.S. stocks held a modest gain that put them at all-time highs after data showing a further slowdown in the labour market stoked bets Congressional leaders will clinch a deal on federal spending. The S&P 500 climbed for a third day as lawmakers continued to negotiate details of almost $900 billion in coronavirus aid. The dollar slumped as weekly jobless claims rose to 885,000 versus an estimate of 818,000. Bitcoin breached $23,000 for the first time. In Europe, cyclical shares such as miners and retailers rose on news that the rollout of a Covid vaccine would begin this month.

The S&P 500 Index advanced 0.5% as of afternoon New York time, the highest on record.

The Dow Jones Industrial Average gained 0.4%.

The Nasdaq Composite Index climbed 0.5%.

2. U.S. Congress Struggles to Finish Economic Stimulus Details

Congressional leaders are working through the final sticking points of a coronavirus relief deal, although the agreement probably won’t come together in time for both chambers to vote before Friday. People briefed on the talks say the draft of the roughly $900 billion proposal includes $600 in payments for individuals, $300-per-week in supplemental unemployment insurance payments and aid for small businesses, as well as about $17 billion for airlines. But it omits aid to state and local governments and lawsuit liability protection, the two issues that stalled earlier attempts at an agreement.

3. India Rejoins US Watchlist in Possible Boost For Rupee & Bonds

India’s addition to the U.S. watchlist for currency manipulation is a trial for its central bank, and a possible boon for local currency- and bond markets. The U.S. Treasury Department’s latest foreign-exchange report cited India’s “significant” goods trade surplus with the U.S. and “sustained” net currency purchases through the year to June. Authorities should limit such intervention to periods of excessive volatility while allowing the rupee to adjust based on economic fundamentals. The central bank’s headache — which comes on top of above-target inflation and struggling growth — looks like a boost for the rupee. The currency has been Asia’s worst performer this year, as the Reserve Bank of India has countered relentless foreign investment inflows with dollar purchases that have pushed the country’s reserves to a record $579 billion.

4. London’s Economy Shaken With Covid Curbs and Brexit Fears

London enters the final days of 2020 with its position as the U.K.’s economic growth engine being whittled away by Brexit and the struggle to contain the coronavirus. The decision to place the capital under the toughest Covid-19 curbs caps a year that saw the virus inflict a bigger hit on London’s job market than other regions. The city, which accounts for more than one-fifth of the U.K. economy, is also seeing global banks shift some people and assets to other European countries. Figures published Thursday by the Institute for Fiscal Studies showed that consumer spending in London was still 10% below its pre-crisis level in November.

5. U.S. Jobless Claims Jump to Highest Levels in Three Months

Applications for U.S. state unemployment benefits unexpectedly jumped to the highest level in three months, suggesting the labour market’s recovery is faltering amid the surge in Covid-19 cases and widening business restrictions. Initial jobless claims in regular state programs rose by 23,000 to 885,000 in the week ended Dec. 12, Labor Department data showed Thursday. Continuing claims for state programs declined by 273,000 to 5.51 million in the week ended Dec. 5. That figure roughly approximates the number of people receiving state unemployment benefits but doesn’t include the millions of people who have already exhausted those benefits or are receiving assistance through federal pandemic jobless aid programs.

6. Credit Suisse Charged Over Money Laundering in Cocaine Ring

Credit Suisse Group and one of its former bank managers have been indicted by Swiss prosecutors over the lender’s alleged failure to prevent money laundering by a Bulgarian drug ring. The Zurich-based bank failed to take all the organizational measures that were “reasonable and required” to guard against the laundering of cash made from the sale of cocaine that was then used to buy real estate in Switzerland and Bulgaria. Swiss prosecutors can target banks criminally if they believe institutions didn’t do enough to screen clients for obvious ties to illicit activity.

7. China Lags as Thailand, Russia Rank Top Emerging Market Picks

Thailand and Russia are well placed to be among the emerging-market standouts that could beat expectations next year. That’s according to a Bloomberg study of 17 developing markets gauging their outlook for 2021 based on 11 indicators of economic and financial performance. Thailand topped the list, owing to its solid reserves and a high potential for portfolio inflows, while Russia scored No. 2 thanks to robust external accounts and a strong fiscal profile, in addition to an undervalued ruble. China scores fairly poorly given that high expectations are already baked in.

8. DoorDash Sinks After Citron Calls IPO ‘Most Ridiculous’ of 2020

DoorDash‘s shares fell on Thursday after short-seller Citron Research called its initial public offering the “most ridiculous” of the year and said the stock is worth a fraction of its current price. The stock is worth $40 a share, Citron said in a research report, citing intense competition in the market for food delivery, lack of brand loyalty from customers and potential government regulation. That would represent a 75% decline from Wednesday’s closing price. The stock fell as much as 5.1% following Citron’s comments.

9. Goldman Trading Bonus May Jump Nearly 20% This Year

Goldman Sachs is planning to boost bonuses for the trading division by up to 20% after the business reclaimed its stature as the firm’s golden goose. The fatter paychecks come on the back of a 49% jump in revenue following a sluggish decade for a group that was once the envy of Wall Street. Corners of trading, particularly in fixed income, could expect much bigger payouts. There will be a greater divergence in payouts than in previous years, with some people potentially getting pay cuts despite generating more revenue. Goldman’s bonus decisions have been a touchy topic ever since the firm’s success through the 2008 financial crisis drew public attention. But this year, banks all along Wall Street saw staggering gains, giving powerhouses more cover to share spoils.

10. U.S. to Limit Use of Chinese Power Equipment on Military Bases

The Trump administration is issuing new prohibitions on the use of Chinese power equipment on military bases, citing the need to protect the U.S. facilities from foreign adversaries. Utilities that supply military bases and other critical defence facilities will be barred from using high-voltage transformers and other so-called bulk power equipment from China under an order being issued Thursday by Energy Secretary Dan Brouillette. The order is another step in the Trump administration’s wide-ranging effort to restrict access by Huawei and other Chinese companies to Western networks and technology.

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Violence at Apple’s India Factory: 450 cr Damages – Top 10 Global News

1. U.S. Stocks Set for a Rebound After Four-Day Slump

U.S. stocks are poised to open higher after a four-day slump, the longest stretch since September, with investors taking comfort in the vaccine rollout and progress on stimulus talks. While investors are pricing in optimism about the start of vaccine shots, there’s also ongoing concern over whether a stimulus bill from a bipartisan group of lawmakers will gain traction. Trading was mixed in other markets. Asian stocks fell the most in two weeks. European equities, oil and Treasuries were steady. In Europe, the pound rose and credit markets strengthened as Brexit negotiators pushed to reach a final trade deal.

Futures on the S&P 500 Index climbed 0.5% as of early morning London time.

The Stoxx Europe 600 Index was little changed.

The MSCI Asia Pacific Index decreased 0.4%.

The MSCI Emerging Market Index declined 0.2%.

2. Moderna Vaccine Found Safe, Effective Ahead of Major FDA Review

Moderna’s vaccine is safe and effective for preventing Covid-19, U.S. regulators said, clearing the way for a second shot to quickly gain emergency authorization and add to the country’s sprawling immunization effort. The Food and Drug Administration’s staff said in a report on Tuesday that the experimental vaccine is 94.1% effective at preventing symptomatic Covid-19, confirming earlier results released by the company. The FDA got a much deeper look at Moderna’s clinical-trial data than the numbers previously released to the public by the company. Notably, the agency was able to review the shot’s effectiveness across a broad range of racial, ethnic and age groups, and look at evidence of how well the shot worked for people with pre-existing medical conditions that make them more vulnerable to severe Covid-19.

3. U.K. Urged to Ban Holiday Mixing; Sweden Shortages: Virus Update

Two medical journals published a rare joint editorial urging the U.K. government to ban household mixing over Christmas. Italy’s prime minister said he plans further curbs to slow cases during the festive season, and the Dutch government is imposing stricter rules for five weeks. Almost all of Sweden’s regional hospitals are struggling with staff shortages as the virus spreads faster than health authorities predicted. Hong Kong plans new relief measures before Christmas, and Singapore is creating a new “bubble” facility near the airport. In the U.S., New York risks a second full shutdown should the number of cases and hospitalizations continue at the current pace.

4. U.K.’s PM to Visit India in January as Trade Talks to Start

U.K. Prime Minister Boris Johnson will visit India in January to try to boost ties, with talks on a free-trade agreement due to start next year. The British government has made the expansion of global trading opportunities a priority after Brexit and is pursuing trade deals with countries including the U.S., New Zealand and Australia. The Indo-Pacific region is also high on the U.K.’s agenda, and Foreign Secretary Dominic Raab held talks with his Indian counterpart Subrahmanyam Jaishankar in New Delhi on Tuesday. India is the U.K.’s 17th-largest trading partner and total trade between the two countries was worth $16.5 billion in 2019.

5. Wave of Foreign Money Threatens India’s Tight Grip on Rupee

A relentless torrent of funds rushing into India’s markets may tip the central bank’s delicate balancing act in 2021. For most of this year, the Reserve Bank of India has capped currency gains as global investors poured around $50 billion into stocks and stakes in companies. This has boosted rupee liquidity in a banking system that’s already flush with cash from the RBI’s stimulus measures. There’s growing consensus among traders and fund managers that the mounting pressures — particularly the liquidity excess distorting money markets — may spur the central bank to consider a range of changes, from relaxing its grip on Asia’s worst-performing currency to curtailing bond purchases.

6. Apple Push Into India Dealt Setback as Protest Turns Violent

Apple’s effort to expand the manufacturing of its products in India ran into trouble after workers at a supplier’s plant rioted over unpaid wages, with many arrested for violence and vandalism. Hundreds of workers stormed Wistron Corp.’s facility in the southern city of Kolar over the weekend, damaging the property and looting thousands of iPhones and laptops, according to local media. More than 150 people were arrested. Wistron estimated damages at as much as $7.1 million and said it’s doing its best to resume operations at the factory. 

7. Airbus CEO Warns No-Deal Brexit Puts U.K. Investment at Risk

Airbus Chief Executive Officer Guillaume Faury said a U.K. split from the European Union without a trade deal could threaten the planemaker’s investment plans in the country. Decisions would be made based on how easy it is to conduct business after Brexit, he said at the Conference of Montreal on Monday. In the meantime, the company has no plans to close or scale down its British factories, which make wings for all of its passenger aircraft, and would find a way to manage a no-deal scenario if it came to that, he said. Airbus was vehemently opposed to Brexit under previous CEO Tom Enders, who warned that the company could pull out of the U.K. if a deal wasn’t reached.

8. Europe May Approve Covid Vaccine by Christmas as Pressure Builds

Pressure is building in Europe for quick approval of Pfizer and BioNTech’s Covid-19 vaccine, with German authorities saying they’re optimistic that sign-off can be pushed forward by a week amid a rising death toll on the continent. Germany is “optimistic” that the European Medicines Agency will be able to make a decision by Dec. 23, Health Minister Jens Spahn said in Berlin on Tuesday. The EMA had previously said an advisory board would convene by Dec. 29 to make a recommendation on the application; approval would come within days after that.

9. Lawmakers Rush to Complete Relief Before Break: US Stimulus Update

Democratic leaders Nancy Pelosi and Chuck Schumer face pressure to allow a vote on a Covid-19 assistance plan without the aid for states they’ve said is vital, after a bipartisan group split that and liability protections from other relief spending. With the congressional session winding down and a government funding package needed by Friday, time is running out for an agreement on the two most contentious and partisan pandemic-relief issues — Covid-19 liability protections for employers and aid for state and local governments. A bipartisan group that had floated a $908 billion plan at the start of the month offered it up in two bills on Monday.

10. Abu Dhabi Turns to Poultry, Fish Farms for Food Security

The oil-rich desert emirate of Abu Dhabi is investing $143 million to boost local production of produce, fish, cattle and poultry in its push to improve food security. Much of the money will go toward using new technologies to improve large-scale production of food in climate-controlled conditions, the Abu Dhabi Government Media Office said. Abu Dhabi — like the rest of the United Arab Emirates — must import most of its food. The coronavirus pandemic, however, has laid bare the UAE’s vulnerability to disruptions in foreign food supplies.

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Hyundai buys Boston Dynamics – Top 10 Global News

1. Stocks Slump, Dollar Rebounds Amid Risk-Off Mood

Investors are winding up the week doing risk-off trades, with U.S. stimulus talks hung up and coronavirus developments weighing on sentiment. The dollar rose the most in a month. European stocks fell 1% as record virus deaths in Germany prompts discussion about whether to impose a hard lockdown over the holiday season. The pound slumped 1% as a key European official warned a no-deal split with the U.K. was the likeliest outcome by Dec. 31. U.S. equity futures sank in the wake of stimulus talks stalling over whether to shield companies from virus lawsuits. 

Futures on the S&P 500 Index dipped 0.7% as of early morning New York time.

Nasdaq 100 Index futures decreased 0.7%.

The Stoxx Europe 600 Index dipped 1.1%.

The MSCI Emerging Market Index advanced 0.1%.

2. Hyundai Motor Buys 80% of Robotics Firm Boston Dynamics

Hyundai Motor Group agreed to buy a controlling stake in Boston Dynamics in a deal that values the mobile robot firm at $1.1 billion. Hyundai Motor Group, along with some associated companies, will acquire an 80% interest in the U.S. robotics company from SoftBank Group, leaving the Japanese firm with a 20% share. South Korean conglomerate Hyundai Motor Group has been beefing up its research in robotics as it expands further into electric and autonomous vehicles. It is also exploring practical uses for industrial robots.

3. FDA Vows Fast Pfizer Vaccine Action Amid Political Pressure

The U.S. Food and Drug Administration said it’s working toward rapid emergency-use authorization of Pfizer Inc.’s Covid-19 vaccine that was backed Thursday by a panel of agency advisers. The drug regulator has “notified the U.S. Centers for Disease Control and Prevention and Operation Warp Speed, so they can execute their plans for timely vaccine distribution,” the FDA said Friday in a statement. The FDA statement comes as the agency is under tremendous political pressure from President Donald Trump and his administration to clear the vaccine, which has already been approved by the U.K. and Canada. Weary Americans are also eager for an end to a pandemic that has killed nearly 300,000 and dealt a crippling blow to the economy.

4. Sri Lanka Debt Concerns Mount After Downgrade Deeper Into Junk

Markets are showing mounting concern about Sri Lanka’s ability to manage debt loads, amid financial deterioration that sparked a downgrade deeper into junk Friday. Prices of the country’s dollar bonds show that while traders expect securities next year to be repaid, they’re increasingly uneasy about dwindling cash reserves for debt bills down the line. Notes due in 2021 are indicated at about 88 cents on the dollar. That’s a level that shows some misgivings yet not alarm. But securities maturing in 2023 are at about 66 cents, while it’s even worse for ones due 2030 at 57 cents.

5. Hong Kong Buys 15 Million Vaccine Doses From Pfizer, Sinovac

The Chinese company with the rights to market the Pfizer-BioNTech coronavirus vaccine in Hong Kong is preparing to seek approval of the shot soon after the U.S. clears it. Shanghai Fosun Pharmaceutical Group. is getting ready to submit paperwork to the drug regulator in Hong Kong for review as soon as next week. The development comes as Hong Kong on Friday announced it has struck deals for 15 million doses of shots from Pfizer-BioNTech and Chinese developer Sinovac Biotech Ltd., with the first vaccines to be received next month.

6. Sweden Explores Moving to a Digital Currency

Sweden’s government will start exploring the feasibility of having the country move to a digital currency, marking another step into the unknown for the world’s most cashless society. Sweden is among the first countries in the world to consider introducing a digital currency. Its central bank is already running a pilot project with Accenture to introduce an electronic krona based on the same blockchain technology that underpins digital currencies like Bitcoin. From the point of view of the government, Bolund said that “it’s crucial that the digitalized payments market functions safely, and that it’s available to everybody.”

7. Johnson and EU Warn of No Deal as Deadline Nears

Prime Minister Boris Johnson and European Commission President Ursula von der Leyen both warned that a no-deal Brexit is looming on Dec. 31 as they continued last-ditch talks to try to reach a deal before Sunday. Johnson said on Friday that a no-deal Brexit at the end of the year now looks “very, very likely.” His pleas for European Union leaders to step in and salvage the faltering negotiations were frustrated as summit talks overran on Thursday night, pushing Brexit to the fringes. On Friday, von der Leyen spent just 10 minutes briefing government leaders on the subject. Both sides have said they will continue discussions until Sunday, but officials concede that, without fresh political direction, the negotiating teams will have little to talk about.

8. Gold Declines as Investors Weigh Stimulus and U.S. Job Woes

Gold declined as the dollar strengthened amid weak risk sentiment while fading prospects for a U.S. stimulus deal and poor jobs data raised questions over the economic recovery. European stocks and U.S. equity futures fell as investors wound up the week with risk-off trades, amid a worsening of the coronavirus pandemic. German cases and deaths rose the most since the outbreak began, while Indonesia reported record deaths. The dollar strengthened the most in almost two weeks, putting pressure on gold. U.S. efforts to draw up a coronavirus relief package hit another roadblock as Senate Majority Leader Mitch McConnell’s top lieutenants said key portions of a compromise proposal aren’t likely to get backing from most Republicans. Meanwhile, applications for U.S. unemployment benefits surged last week, topping estimates with the highest level since September, casting a shadow over the strength of the recovery.

9. Malaysia’s Ringgit Erases Covid-19 Losses to Rise to Strongest Since 2018

Malaysia’s ringgit climbed to the strongest since July 2018, erasing its virus-fueled losses for the year. The currency rose as much as 0.3%. The gains came amid weakness in the greenback and a recent advance in crude prices. The ringgit has climbed with Asian peers this quarter as the dollar weakened and risk assets were boosted by Covid-19 vaccine developments. An easing of domestic political tension also helped, after Prime Minister Muhyiddin Yassin survived a key test to his leadership.

10. Aramco Hires Moelis to Raise Billions From Asset Sales

Saudi Arabia is looking to emulate neighbouring Abu Dhabi by using its state energy firm to raise billions of dollars from investors, as the kingdom seeks cash to counter a severe recession. Saudi Aramco, the world’s biggest oil company, has hired Moelis & Co. to devise a strategy for selling stakes in some subsidiaries. The plan includes raising around $10 billion from a stake sale in Aramco’s pipelines, said the people, who asked not to be identified because the matter is private. Saudi Arabia has been hammered this year by coronavirus lockdowns and the slump in crude prices. The economy will contract 5.4% in 2020, the most since the 1980s, according to the International Monetary Fund. The budget deficit could widen to 12% of gross domestic product.