Emerging Markets Daily - July 7
OPEC Row Pushes Oil Prices Upward, China Targets Overseas Listed Firms, AirAsia To Take Over Gojek Thailand Business, Esports and Pandemic Camaraderie in Japan, Nigeria Oil Declines on Pipeline Damage
The Top 5 Emerging Markets Stories from Global Media - July 7
UAE-Saudi Brinkmanship Threatens Opec Unity as Oil Prices Soar
Financial Times
“Brent, the international benchmark, reached a three-year high on Tuesday as the disagreement between Saudi Arabia, Opec’s de facto leader, and the UAE, a close, previously co-operative partner, triggered a briefing war between the two camps.”
“The clash has opened a rift at the heart of Opec that threatens the ability of the cartel — and its partners in the Opec+ alliance — to deliver oil market stability and could yet see the UAE, a member since 1967, leave the group.”
“There is growing unanimity among Emirati officials surrounding de facto leader Sheikh Mohammed bin Zayed al-Nahyan that it could be in the UAE’s best interests to go it alone, people briefed on the situation said.” Simeon Kerr and Anjli Raval report
China Targets Firms Listed Overseas After Launching Didi Probe
The Wall Street Journal
“China said it would tighten rules for companies listed overseas or seeking to sell shares abroad, moves that could hinder attempts by homegrown firms to raise money in the U.S.”
“The shift comes as Chinese regulators intensify scrutiny into technology companies, including Didi Global Inc., that recently listed in the U.S.”
“Wall Street has long been a bridge between China’s economic miracle and the U.S. Blockbuster listings of firms like Alibaba Group Holding Ltd. in New York emphasized China’s rising economic clout while letting American investors profit from their growth.”
“Now, China’s move toward restricting such listings highlights the diverging visions in Beijing and Washington of the future of technology, data protection and security. With a widening gulf of distrust on a range of issues, both Chinese and American companies could get caught in the middle.” Keith Zhai and Jing Yang report
AirAsia to Take Over Gojek's Business in Thailand
Nikkei Asia
“AirAsia is to acquire Indonesian unicorn Gojek's business in Thailand as the low-cost Malaysia airline steps up its digital ambitions.”
“Confirming an earlier report by Nikkei Asia, Gojek and AirAsia announced a share swap deal on Wednesday that will see the Indonesian tech group take an unspecified stake in AirAsia's own ‘superapp’ business. The companies said the business had a market value of around $1 billion.”
“The agreement shows how AirAsia is trying to join the ranks of Southeast Asia's superapps alongside Gojek and Grab, with a business spanning ride-hailing and delivery to online payments.” P Prem Kumar and Shotaro Tani report
Esports used as Tool to Build Workforce Camaraderie amid Pandemic
The Japan Times
“As the rise in telework amid the COVID-19 pandemic curtails interactions among employees, a growing number of Japanese companies are considering an inexpensive solution to the loss of workforce camaraderie — esports tournaments.”
“On a weekday night in June, 40 people from 17 companies gathered to observe an esports event organized by a group of employees at Net One Systems Co., a Tokyo-based IT service provider, at eXeField Akiba, a venue for esports activities in Akihabara, Tokyo’s electronics hub.”
“It was the third esports competition conducted by the firm’s employees, 90% of whom are currently working from home. New employees in particular have found it hard to get acquainted with colleagues, even in the sections they have been assigned to.” Hiroki Natori reports
Nigeria Losing 200,000 bpd to Pipeline Damage
Hellenic Shipping News
“Nigeria is losing an average of 200,000 barrels of oil per day – more than 10% of its production – to pipeline vandalism, the country’s information minister said on Monday.”
“Nigeria relies on oil exports for more than half its budget and 95% of foreign exchange. The cost to repair the pipelines alone is roughly 60 billion naira ($145.99 million), information minister Lai Mohammed told a town hall meeting in Abuja.”
“‘One can only imagine the impact on the economy,’ Mohammed said, adding that the resulting spills also had a devastating impact on the water, air and soil quality.”
“Typically the damage is caused by thieves who tap pipelines to illegally refine the oil and sell it on the black market.” Hellenic Shipping News reports