The cost of insuring Lebanon’s sovereign debt against default jumped to a fresh record high and the country’s dollar-denominated bonds came under pressure again on Wednesday after mounting tensions with Israel.
Lebanon’s 5-year credit default swaps (CDS) rose by 21 basis points (bps) from Tuesday’s close to 1229 bps, data from IHS Markit showed.
The country’s eurobonds also came under pressure with the 2030 and 2035 issues both slipping around 0.5 cents to hit their lowest level on record, according to Refinitiv data.
President Michel Aoun said on Monday that Lebanon had a right to defend itself, likening Israeli drone strikes to a "declaration of war" amid rising tensions between Hezbollah and Israel.
On Friday, Fitch downgraded Lebanon's credit rating to CCC while Standard & Poor's kept it at B-/B.
Lebanon is grappling with one of the world’s heaviest public debt burdens at 150 percent of GDP and years of low economic growth.
Last month, Lebanon's parliament ratified a controversial austerity budget that aims to save the economy.
Gold Falls to 11-week Low as Oil Rises on Fresh US-Iran Hostilitieshttps://english.aawsat.com/business/5282374-gold-falls-11-week-low-oil-rises-fresh-us-iran-hostilities
A worker displays a one-kilogram gold bar at a refinery in Sydney (AFP)
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Gold Falls to 11-week Low as Oil Rises on Fresh US-Iran Hostilities
A worker displays a one-kilogram gold bar at a refinery in Sydney (AFP)
Gold fell to an 11-week low on Wednesday, as oil prices rose on renewed hostilities between the US and Iran, fueling concerns about inflation and interest rate hikes.
Spot gold was down 1.7% at $4,191.84 per ounce by 0747 GMT, after hitting its lowest level since March 23. US gold futures for August delivery shed 1.6% to $4,215.60, Reuters reported.
"We're seeing a kind of readjustment broadly in what global central banks are going to do, and there's been a major hawkish shift," said Ilya Spivak, head of global macro at Tastylive.
The United States on Tuesday launched strikes against Iran after President Donald Trump said Tehran had shot down a US Apache helicopter in the Strait of Hormuz. Iran's Revolutionary Guards said they retaliated with attacks against a US base in Jordan and 21 other targets in the Gulf on Wednesday.
Oil prices rose, keeping up expectations that interest rates would stay higher for longer.
While gold is seen as a hedge against inflation, higher rates tend to weigh on the non-yielding metal.
Traders are now pricing in a more than 70% chance of a US rate hike by December, according to the CME FedWatch tool.
Markets are awaiting key US inflation reports this week, including the May Consumer Price Index data later in the day and the Producer Price Index reading on Thursday, to gauge the Federal Reserve's monetary policy stance.
"If we can break the $4,100 level, I think the path of resistance fundamentally changes for gold, and we might be starting to look at $3,500 as the next level into the end of the year," Spivak said.
Spot silver fell 1.3% to $64.54 per ounce, platinum dropped 3% to $1,675.25, and palladium fell 0.7% to $1,213.47.
Saudi Industry Minister Reviews Gold Processing Technologies at Tau-Ken Altyn Refinery in Kazakhstanhttps://english.aawsat.com/business/5282319-saudi-industry-minister-reviews-gold-processing-technologies-tau-ken-altyn
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef and other officials are seen during the tour of the gold refinery in Astana on Tuesday. (SPA)
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Saudi Industry Minister Reviews Gold Processing Technologies at Tau-Ken Altyn Refinery in Kazakhstan
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef and other officials are seen during the tour of the gold refinery in Astana on Tuesday. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef visited the gold refinery operated by Tau-Ken Altyn in Kazakhstan's capital, Astana, on Tuesday.
The minister reviewed the technologies and processes used in gold processing and refining and met with Tau-Ken Altyn chief executive Arnur Aidarkhanov and chief economic and financial officer Ruslan Zhumagulov.
Discussions focused on opportunities for cooperation and the exchange of expertise in the mining and metals industries.
The minister received a briefing on the refinery's operations and its role in enabling Kazakhstan to refine gold domestically and enhance the value added from its mineral resources.
It highlighted the refinery's contribution to strengthening the country's gold and foreign exchange reserves, with the facility regarded as a strategic asset in Kazakhstan's precious metals sector.
Alkhorayef toured the refinery’s facilities, including its gold refining operations, processing units, and gold bullion production lines, which operate using advanced technologies and in accordance with the highest international standards.
He also reviewed the refinery’s accreditation by the London Bullion Market Association, which confirms that its products comply with internationally recognized standards in the global gold market.
The minister's tour was part of his official visit to Kazakhstan, which aims to strengthen economic ties between Riyadh and Astana and build effective partnerships in the mining and metals sectors.
Riyadh Air Eyes Gradual Expansion as New Aircraft Arrivehttps://english.aawsat.com/business/5282309-riyadh-air-eyes-gradual-expansion-new-aircraft-arrive
Riyadh Air Eyes Gradual Expansion as New Aircraft Arrive
Riyadh Air’s new aircraft enters Saudi airspace (X)
Riyadh Air has completed its structural setup phase and has moved formally into operations, advancing a gradual, carefully planned expansion strategy built around rapid fleet growth and the approaching commercial launch of Saudi Arabia’s new national carrier.
The arrival of its third Boeing 787 Dreamliner in Riyadh, along with the official start of ticket sales for its first domestic and international destinations, marks a new stage for the airline as it prepares to build a growing network focused on expanding operating capacity and targeting high-demand global markets.
The steps put into practice the goals of Vision 2030, which seeks to turn Riyadh into a global logistics hub and a key link for air transport and luxury hospitality between continents.
Osamah Alnuaiser, senior vice president of marketing and corporate communications at Riyadh Air, said the arrival of the third aircraft was a “historic moment” for the company, coming days after it received its first two planes.
He said the milestone crowned more than three years of work since the signing of the first deals with Boeing, under a plan to build a fleet of more than 182 aircraft.
Speaking to Asharq Al-Awsat, Alnuaiser said the new carrier had moved from establishment to actual operations. He said the company had started intensive operational tests, including daily nonstop flights between Riyadh and London, to assess service and product quality and test its operating model before the full commercial launch.
Five destinations
Alnuaiser said the company had officially started selling tickets to five destinations - Jeddah, Cairo, Dubai, Madrid and Manchester - calling the move the beginning of a route network that will expand gradually in the coming period.
He said Riyadh Air was preparing to receive more aircraft in sequence over the coming months, supporting plans to expand destinations and increase operating capacity. The company is currently operating four daily flights between Riyadh and Jeddah, he said, as part of a strategy to strengthen air links between the Saudi capital and major economic and tourism centers worldwide.
Alnuaiser said the company was constantly studying new domestic and international destinations. The goal, he said, was not merely to increase flights but to diversify destinations and connect Riyadh with major capitals and cities, in line with the aim of turning the capital into a global aviation hub.
Innovation
Alnuaiser said innovation and leadership were central pillars of Riyadh Air’s strategy, both in passenger services and in the digital and operational experience the airline is seeking to deliver.
Asked about the challenges facing the global aviation sector, Alnuaiser said geopolitical events and supply chain disruptions were common challenges for airlines. Riyadh Air, he said, was focused on seizing opportunities and selecting markets with strong demand and promising growth prospects.
He said the company expected to have more than 11 aircraft before the end of this year, with monthly deliveries of Boeing 787 aircraft continuing, along with the start of Airbus A321 deliveries at year’s end. That, he said, would strengthen fleet diversity and operational flexibility.
The expansion comes as Riyadh Air accelerates preparations to launch commercial operations, as part of Saudi Arabia’s plans to strengthen the aviation sector and increase international air connectivity, in line with Vision 2030 targets to make the Kingdom a global transport and logistics hub.
Aircraft delivery ceremony
Saudi Arabia’s new carrier celebrated the delivery of the new aircraft at a special ceremony in Riyadh attended by several ministers and officials.
Yasir Al-Rumayyan, governor of the Public Investment Fund and chairman of Riyadh Air, said at the ceremony that the moment embodied Vision 2030’s goals of strengthening the Kingdom’s connection to the world and supporting economic diversification.
He said the new national carrier was moving to cement Saudi Arabia’s position as a global transport and logistics hub, while Riyadh Air continued to build a new model for air travel linking Riyadh with the world.
Al-Rumayyan and Douglas, along with other officials, are seen inside the cabin of the new plane (X)
Saudi Arabia as a global hub
As Riyadh Air approaches commercial operations, Saudi Arabia’s aviation sector is expanding rapidly, led by several national carriers. Saudia operates more than 530 flights a day to over 100 destinations worldwide, while flynas runs about 2,000 flights a week, or about 285 a day.
Riyadh Air has started trial operations with daily flights to London before expanding to other destinations, while flyadeal reaches 38 domestic and international destinations through a network of 159 air routes.
The origins of Riyadh Air
The Riyadh Air project grew out of a vision to establish a new national carrier that would support the goals of Vision 2030.
On March 12, 2023, Saudi Crown Prince Mohammed bin Salman announced the launch of Riyadh Air as a company wholly owned by the Public Investment Fund. The airline is intended to connect the Saudi capital with more than 100 destinations worldwide by 2030.
Raid Ismail, PIF’s head of direct investments for the Middle East and North Africa, said Riyadh Air had started where others had left off. He said the region had seen expansion in low-cost carriers over the past two decades, but had not seen the creation of a major integrated airline built on a modern model from the start.
According to available information, the company has focused since its establishment on technology, innovation and the customer experience, positioning itself as a key enabler of growth in Saudi Arabia’s tourism sector, stronger international air connectivity and higher visitor numbers.
Ismail said the new carrier aims to make Riyadh an attractive destination and a major transit point for travelers, helping connect the Saudi capital to global destinations and supporting access to major projects such as Qiddiya, Diriyah and Riyadh Season, as well as other tourism and development destinations across the Kingdom.
He said establishing a new company gave Riyadh Air greater flexibility to build a modern operating model based on digital technologies, sustainability and an improved passenger experience, which became one of the main foundations of the airline’s strategy from the project’s launch.
Riyadh Air has started trial operations with daily flights to London before expanding to other destinations (X)
Reviving the golden age of aviation
Riyadh Air’s strategy is to reshape the air travel experience by combining luxury services with modern digital technologies.
Chief Executive Officer of Riyadh Air Tony Douglas has said the new national carrier does not aim only to transport passengers, but to redefine the entire journey through digital innovation and seamless connectivity.
Douglas said the company pays close attention to the smallest details, drawing inspiration from the golden age of aviation, when air travel was part of a complete hospitality experience.
He said Riyadh Air aims to restore that concept by offering a refined, distinctive experience on the ground and in the air, thereby strengthening its position as a global player in luxury air travel.
According to officials, artificial intelligence will be a central part of the operating model, through digital services capable of personalizing the passenger experience, suggesting activities, events and suitable options during the journey, and providing a smooth digital experience that allows passengers to complete services easily and quickly.
Riyadh Air says it is targeting an existing market with strong demand that still needs more services and options. Douglas said Saudi Arabia’s young population and wide use of digital technologies provide a favorable environment for the company’s growth.
He said the new carrier would play an important role in supporting the Kingdom’s tourism goals by making it easier for visitors to reach Riyadh and other Saudi destinations, and by strengthening Saudi Arabia’s position on the global travel map.
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