- OPEC+ Supply Increase Agreement
- Yellen’s First Statement on China Trade Deal
- London Lagged Behind Amsterdam and Frankfurt in IPOs
OPEC+ Supply Increase Agreement
OPEC+ agreed to increase the alliance’s global oil supply by 400,000 barrels per day, starting from August, at the meeting, which was postponed after the objection of the UAE.
The Organization of the Petroleum Exporting Countries and its allies OPEC+, including Russia, have agreed to gradually increase cuts to global oil supply to stabilize the market after the shock from the pandemic. After the United Arab Emirates (UAE) supported the agreement with the new conditions negotiated, OPEC+, which met in Vienna today, will add an additional 400 thousand barrels/day to the global oil supply as of August.
“We strongly support the agreement reached,” UAE Energy Minister Suhail al-Mazrouei told Sharq TV.
The oil production quotas of OPEC+ members, which consist of producers such as UAE, Saudi Arabia, Russia, Iraq, and Kuwait, are increased with the agreement in Vienna. The decision, which came after the oil prices reached the peak of 3 years, will increase the production of OPEC+ members.
The price of oil fell by almost 1% on Monday morning during Asia hours after OPEC and its allies agreed to end oil production cuts.
Brent crude futures fell 0.88% to $ 72.94 a barrel, while US crude futures fell 0.97% to around $ 71.11 a barrel.
But having a deal is “better than no deal” for the organization of oil-exporting countries and its allies – collectively known as OPEC +, according to one oil analyst who said a continued stalemate could mean rising production and prices in free fall.
Yellen’s first Statement on China Trade Deal
While US Treasury Secretary Janet Yellen stated that she had doubts about the trade deal signed with China during the Trump administration last year, this was the first detailed statement from the Biden administration about the agreement.
In an interview with the New York Times, “My view is that the taxes on China were put without much thought. Tariffs are taxes on consumers. In some cases, it seems to me what we did hurt American consumers, and the type of deal that the prior administration negotiated really didn’t address in many ways the fundamental problems we have with China,” she said.
The agreement, signed in January 2020, aimed to mitigate the damage caused by the trade war between China and the US, but 18 months after signing, both sides are paying more customs duties on imports.
The Chinese government seemed satisfied with certain parts of the agreement. “The first phase of the deal is good for China, the United States, and the whole world,” Commerce Ministry spokesman Gao Feng said last week. But even before Yellen’s statements, there was no optimism about the future of the agreement in China.
Zhou Shaoming, a former diplomat and trade official, wrote about the deal, “The calm on the trade side points to a storm rather than a victory. “The Biden administration is still reviewing its stance on China, but may take a more determined and aggressive stance for the rest of this year.”
Academic experts in China share the government’s skepticism that any quick deal can be achieved.
“Even if we go back to the negotiating table, it will be tough to reach an agreement,” said George Yu, a trade economist at Renmin University in Beijing.
London Lagged Behind Amsterdam and Frankfurt in IPOs
The amount of cash raised by companies listing shares in London fell by almost two-thirds during the second quarter, putting the capital behind exchanges in Frankfurt and Amsterdam.
In the second quarter, 3 billion euros were invested in the public offerings in London, while 4.4 billion euros were invested in Deutsche Boerse and 3.5 billion euros in Euronext Amsterdam.
However, considering the initial capital investments in the first six months of the year, London ranks first with 9.9 billion pounds.
According to PwC, the smaller average deal size is one of the reasons behind the decline in London. During this period, 20 public offerings were held in London, 11 in Frankfurt, and 6 in Amsterdam.
It has come to the fore by hosting many international and local public offerings, such as the 2.2 billion euro public offering of Frankfurt and Amsterdam Allfunds. Chip designer Alphawave, retailer Victorian Plumbing, and furniture company Made.com, which went public in London, are worth £1.3 billion.
PwC Capital Markets Partner Mark Hughes stated that the first half of the year was one of the busiest times in the history of European Stock Exchanges.
“It is evident that in the last couple of months investors have become more selective and price-sensitive, with a number of deals pricing towards the bottom of the range and some transactions being pulled or postponed,” said Mark Hughes.