DETROIT: US securities regulators countered Tesla CEO Elon Musk’s contempt-of-court defense Monday night, writing in court papers that he brazenly disregarded a federal judge’s order and that one of his arguments “borders on the ridiculous.”
Lawyers for the Securities and Exchange Commission, in a response to Musk, wrote that when the contempt motion was filed in February, Musk had not had a single tweet approved by a company lawyer, violating a requirement of a court-approved settlement order.
The October securities fraud settlement stemmed from tweets by Musk in August about having the money to take Tesla private at $420 per share. But Musk didn’t have the funding secured. Tesla and Musk each had to pay $20 million in fines and agree to governance changes that included Musk’s removal as chairman.
SEC lawyers led by Cheryl Crumpton wrote in a response to Musk’s defense that he interprets the settlement order as not requiring pre-approval unless Musk decides the tweets are meaningful to investors. The agency said Musk’s argument that tweeting about car production forecasts on Feb. 19 wasn’t material information is nearly ridiculous. “His interpretation is inconsistent with the plain terms of this court’s order and renders its pre-approval requirement meaningless,” the lawyers wrote.
US District Judge Alison Nathan in Manhattan will decide if Musk is in contempt and whether he should be punished. The SEC said no hearing is necessary on the matter “because there appear to be no disputed issues of material fact.”
Musk’s lawyers wrote last week that the Feb. 19 tweet merely restated previously approved disclosures on electric car production volumes. They wrote that the tweet, which was published after the markets closed, neither revealed material information, nor altered the mix of data available to investors.
The lawyers also accused the Securities and Exchange Commission of censorship and of violating Musk’s First Amendment rights by imposing a prior restraint on his speech.
But the SEC lawyers wrote that submitting statements for approval does not mean Musk is prohibited from speaking. “As long as a statement submitted for pre-approval is not false or misleading, Tesla would presumably approve its publication without prior restraint on Musk,” they wrote. The SEC also wrote that Musk waived any First Amendment challenge to the order when he agreed to it.
Musk’s lawyers also argued that the SEC’s motion for contempt is an over-reach that exceeds its authority. But the SEC said enforcement of the order is up to the judge, who has broad powers to enforce court orders.
Monday’s filing said the Feb. 19 tweet was different from prior public disclosures by the company. Also, Musk has regularly published tweets with “substantive information” about the company and its business, the SEC contended.
Musk’s 13-word Feb. 19 tweet said that Tesla would produce around 500,000 vehicles this year, but it wasn’t approved by the company’s “disclosure counsel,” the SEC has said.
The lawyer quickly realized it and summoned Musk to the company’s Fremont, California, factory to help write a correction. The company would make vehicles at a rate of 500,000 per year, but it wouldn’t produce a half-million in 2019.
Musk’s response by former Enron prosecutor John C. Hueston of Newport Beach, California, said that the settlement allows Musk “reasonable discretion” to determine if his communications would require the lawyer’s approval. In the case of the Feb. 19 tweet, Musk determined that it did not.
Legal experts say it’s unlikely that Musk will be punished severely, but the commission wants to get on the record that Musk violated the terms, to prepare for any future violations.
The tweet was posted and corrected after US markets had closed, but experts say regulators don’t care much about that because stocks are traded nearly around the clock. Tesla’s stock rose by just $1.10, or less than 1 percent, the next day.
US securities regulator: Musk’s contempt defense ‘borders on the ridiculous’
US securities regulator: Musk’s contempt defense ‘borders on the ridiculous’
- SEC lawyers: Elon Musk had not had a single tweet approved by a company lawyer, violating a requirement of a court-approved settlement order
- ‘His interpretation is inconsistent with the plain terms of this court’s order and renders its pre-approval requirement meaningless’
Saudi Arabia’s PMI rises to 6-month high in October
RIYADH: Saudi Arabia’s non-oil business activities strengthened in October, with the Kingdom’s purchasing managers’ index rising to a six-month high of 56.9, an economy tracker showed.
The Riyad Bank Saudi Arabia PMI survey, compiled by S&P Global, revealed that this figure beat the Kingdom’s September rating of 56.3 and the August level of 54.8.
The report revealed that this rise was driven by a sharper increase in sales, which supported further expansions in business activity, employment, purchasing activity, and stocks.
S&P Global highlighted that any PMI readings above 50 indicate growth, while levels below 50 signal contraction.
Strengthening the non-oil private sector is a crucial goal outlined in Saudi Arabia’s Vision 2030, as the Kingdom is steadily diversifying its economy by reducing its decades-long reliance on crude revenues.
Affirming the progress of Saudi Arabia’s economic diversification, a report released by GASTAT in October showed that the Kingdom’s non-oil activities expanded by 4.2 percent in the third quarter of this year, compared to the same period in 2023.
“In October 2024, Saudi Arabia’s non-oil private sector maintained its upward trajectory, with the PMI rising to 56.9 from 56.3, highlighting the nation’s robust economic health. This growth is part of a steady expansion trend since September 2020, driven by increasing demand and aligning with the goals of Vision 2030,” said Naif Al-Ghaith, chief economist at Riyad Bank.
He added: “The comprehensive sectoral gains reflect a strong business environment, supported by government initiatives and heightened private sector engagement, aligning with ongoing projects under Vision 2030 that aim to diversify the economy and reduce reliance on oil.”
S&P Global also attributed the rise in PMI to a stronger increase in sales volumes in October, as businesses commented on higher client demand and a general uplift in economic conditions.
Survey respondents cited various factors, including customer arrivals, successful marketing strategies, and increased infrastructure development, as some key elements driving non-oil business growth in the Kingdom.
“Over 40 percent of surveyed companies reported a surge in demand, spurred by robust domestic client interest, creative marketing strategies, and continuous infrastructure investments. These elements underscore Saudi Arabia’s economic resilience and high market confidence, further solidifying its position as a leading non-oil economy in the region,” said Al-Ghaith.
The report added that businesses that took part in the survey were optimistic about future growth, and it encouraged companies to increase their purchase activity in October.
Companies operating the Kingdom’s non-oil sector also raised their labor capacity in October, which enabled these firms to remain on top of workloads and curtail their levels of work-in-hand.
Even though the pace of job creation remained stronger than average, it eased for the second month in a row, partly due to a reduction in the number of staff in the construction sector.
“With this ongoing expansion, the non-oil sector’s contribution is projected to exceed 52 percent of the overall GDP and grow beyond 4 percent in 2024, reflecting the successful implementation of Vision 2030 and its associated projects,” concluded Al-Ghaith.
Saudi Aramco reports $27.52bn net profit in Q3
RIYADH: Energy giant Saudi Aramco reported a net profit of SR103.37 billion ($27.52 billion) in the third quarter of this year, exceeding analyst expectations, which projected a median net income of $26.9 billion.
In a statement, the firm revealed that its net profit for the third quarter witnessed a decline of 15.40 percent compared to the same period in 2023, due to challenging market conditions including lower market prices for crude oil, refined, and chemical products.
Saudi Arabia, aligned with the decision of OPEC+, reduced its oil output by 500,000 barrels per day in April 2023, and this cut has now been extended until December 2024.
“Aramco delivered robust net income and generated strong free cash flow during the third quarter, despite a lower oil price environment,” said Amin Nasser, president and CEO of the company.
He added: “We also progressed our upstream developments, strengthened our downstream value chain, and advanced our new energies program as we continue to invest through cycles.”
According to the statement, Aramco’s overall revenue from sales stood at SR416.63 billion in the third quarter, representing a marginal decline of 1.76 percent compared to the same period of the previous year.
In terms of capital investments, the energy giant allocated SR49.6 billion in the third quarter, showcasing its continued commitment to expansion and production capabilities.
Aramco also issued international sukuk worth $3 billion in the three months to the end of September, which further diversified the company’s investor base and enhanced liquidity profile.
“Our recent $3 billion international sukuk issuance highlighted strong investor confidence in Aramco and we can be proud of the significant strides the company continues to make, all while sustaining our high levels of profitability, operational performance and reliability,” said Nasser.
He added: “As we focus on strategic growth opportunities and capturing value through integration and diversification, we intend to maintain our positive momentum and cement our position as a leading global energy and petrochemicals player.”
In the first nine months of this year, Aramco reported a net profit of SR314.65 billion, representing a decline of 11.25 percent compared to the same period in 2023.
The statement added that the company’s overall sales revenue stood at SR1.24 trillion over the period, marking a marginal year-on-year rise of 0.02 percent.
In a separate bourse filing, the energy giant declared a base dividend of SR0.315 per share, totaling SR76.06 billion for the third quarter of 2024.
The company also announced the sixth payment of a performance-linked dividend of SR0.167 per share, totaling SR40.39 billion, based on the combined full-year financial results of 2022 and 2023.
Aramco said that it continued its progress in the renewable energy sector during the third quarter as it completed the financial close for three solar PV projects, with an anticipated combined capacity of 5.5 gigawatts.
In September, Aramco’s wholly-owned subsidiary SAPCO, along with partners ACWA Power and the Public Investment Fund announced the financial closure for three solar photovoltaic projects worth SR12 billion.
The Haden and Muwayh projects in Makkah province each have a planned production capacity of 2 GW, while the Al-Khushaybi project in Qassim province has a planned production capacity of 1.5 GW.
Pakistan PM says policy rate reduction to enhance business activities, boost employment
- Pakistan’s central bank slashed key policy rate by 250 basis points to 15 percent on Monday
- With fourth straight reduction since June, Islamabad aims to revive sluggish economy
ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif has welcomed the central bank’s decision to cut the policy rate by 250 basis points, saying the move would help boost the country’s business activities and enhance employment opportunities, state-run media reported on Tuesday.
Pakistan’s central bank slashed its key policy rate by 250 basis points to 15 percent on Monday for a fourth straight reduction since June. The development takes place as Islamabad attempts to revive a sluggish, fragile $350 billion economy as inflation eases.
Monday’s move follows cuts of 150 bps in June, 100 bps in July, and 200 in September that have taken the rate from an all-time high of 22 percent, set in June 2023 and left unchanged for a year. It takes the total cuts to 700 bps in under five months.
“Prime Minister Shehbaz Sharif says the reduction in policy rate will enhance business activities, exports and employment opportunities in the country,” state broadcaster Radio Pakistan reported.
Sharif was chairing a meeting of the ruling Pakistan Muslim League-Nawaz’s (PML-N) parliamentary party on Monday when he touched upon the central bank’s move. The premier noted that inflation has reduced from an alarming 38 percent in May 2023 to 7 percent at present.
The Pakistani premier informed members of the PML-N parliamentary party about his visit to Saudi Arabia and Qatar last week, saying that “a new chapter” has been added to the Pakistan-Saudi investment partnership.
“The Saudi leadership assured all kinds of support for the stability and development of Pakistan’s economy,” Sharif said according to the state broadcaster.
The Pakistani prime minister also informed the lawmakers about his visit to Qatar, saying that the Qatari leadership also assured an increase in investment for Pakistan. He said talks were held between both sides on giving “a practical shape” to projects worth $3 billion in Pakistan.
“He said Qatar will invest in various sectors including aviation, hoteling, information technology and energy sectors in Pakistan,” the state broadcaster said. “Shehbaz Sharif said the government is taking steps on a priority basis to facilitate investment and increase foreign investment in Pakistan.”
AI will eliminate routine jobs but create new ones, expert says
- Chuck Yoo, executive vice president of research at Korea University, spoke to Saudi Data and Artificial Intelligence Authority’s GAIN podcast
RIYADH: Routine jobs are “very much in danger” thanks to the rise of artificial intelligence, a leading academic from Korea University has warned.
Speaking to the Saudi Data and Artificial Intelligence Authority’s GAIN podcast, Chuck Yoo – executive vice president of research at the Seoul-based institution – did offer an optimistic note, stating that new jobs will be created by the technology.
“For young people, I strongly encourage that they take an active role to learn the new technology and be used to how to use it. I think that’s the way that you can deal with such a profound change in our human history,” he told the GAIN Podcast.
Yoo further explained that the rise of AI is similar to the 18th century industrial revolution, where change opened up new opportunities.
Jobs that are based on routine work or gathering and analyzing data are the most in danger, said Yoo, giving the example of a paralegal.
AI in classes
As a professor, Yoo advises teachers and students to utilize the technology in classes instead of banning it, because the revolution is irreversible.
“You now have a very strong assistant, why do you want to go back to the old days?” Yoo remarked.
“To do that, professors who teach classes also have to know what GPT is and how to use it, and they should give assignments that have to be addressed with ChatGPT, not banning ChatGPT,” he added.
He added that the Korea University is also researching to build a new curriculum and a new way of teaching which incorporates AI and technologies like ChatGPT.
Yoo believes that AI is very rewarding and that the world is living in a fruitful age thanks to the technology.
Yoo emphasized the importance of findable sustainable solutions as the rise of the technology calls for more data centers, which extract a heavy power toll.
AI and energy
Yoo further added that Saudi Arabia’s push toward becoming an AI hub might call for more power plants amid higher energy consumption.
“It is being realized as a serious problem,” he said, adding: “People are working on how to reduce the power consumption in parallel with constructing more power plants.”
He added that the US has already announced their plan to build several nuclear facilities in anticipation of “exponential growth” of power consumption.
The Saudi Data and Artificial Intelligence Authority introduced the GAIN Podcast as it aims to elevate global understanding of data and AI and their effects on society.
The 14-episode series features insights from leading scientists, AI experts, decision-makers, and CEOs of prominent tech companies, discussing various aspects of technological advancements, industry milestones, and strategies for fostering human talent in the field.
Pakistanis welcome Aramco’s new Islamabad outlet
- Saudi oil giant opened its second outlet in Islamabad last week following the inauguration of the first in Lahore on Oct. 29
- In collaboration with Pakistan’s GO, Aramco aims to expand its retail network and establish a foothold in the Asian country’s growing economy
ISLAMABAD: Pakistanis in Islamabad on Monday hailed the opening of Aramco’s branded retail petrol station as a valuable addition to the capital’s oil marketing landscape, expressing hopes for high-quality fuel and services from the Saudi oil giant.
This is Aramco’s second retail outlet in Pakistan, following the opening of its first station in Lahore on Oct. 29 after the global oil giant acquired a 40 percent stake in Gas & Oil Pakistan Ltd, commonly known as GO Petroleum.
According to a statement shared last week by Corporate and Marketing Communications, which manages public relations for GO and the Saudi energy firm in Pakistan, Aramco-branded stations will offer premium fuel, high-quality lubricants, professional automotive services, and modern convenience stores, aiming to deliver a seamless customer experience.
The Saudi oil giant’s Islamabad outlet is located on Ataturk Avenue in the Pakistani capital, which is being frequented by a large number of customers anticipating quality fuel supply and services.
“This is a great addition to Islamabad. I hope that this global oil giant will focus on providing quality oil products, along with ensuring top-notch service and accurate fuel measurements,” Muhammad Asim, a Pakistani government employee, told Arab News, while filling up at the newly opened station, adding: “Looking forward to seeing the positive impact it brings to the city.”
Aramco is a global integrated energy and chemicals company that produces approximately one in every eight barrels of the world’s oil supply. GO, one of Pakistan’s largest retail and storage companies, is involved in the procurement, storage, sale and marketing of petroleum products and lubricants.
Together with GO, which has a network of over 1,200 fuel retail stations in Pakistan, Aramco plans to expand its retail network and establish a presence in the fast-growing Pakistani economy.
“Having Aramco in Pakistan is exciting,” said Sara Ahmed, a local business owner. “It raises the bar for fuel quality and customer service.”
She hoped that the Saudi company would set new standards in fuel quality and customer care, something that had been needed in Pakistan for quite some time.
Another customer, Ali Asghar, said Aramco is a renowned name globally and hoped the company would uphold its international standards in Pakistan.
“We need reputable global companies like this, not only to provide quality products but also to encourage competition among other companies, ultimately benefiting customers,” he told Arab News.
Pakistan and Saudi Arabia enjoy strong trade, defense, and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as the top source of remittances to the cash-strapped South Asian nation.
In February 2019, Pakistan and Saudi Arabia inked investment deals totaling $21 billion during a visit by Saudi Crown Prince Mohammed bin Salman to Islamabad. The agreements included approximately $10 billion for an Aramco oil refinery and $1 billion for a petrochemical complex at the strategic Gwadar Port in Pakistan’s Balochistan province.
Islamabad and Riyadh have also been working in recent months to increase bilateral trade and investment, and the Kingdom this year reaffirmed its commitment to expedite an investment package worth $5 billion for Pakistan.
Both countries last month signed $2.2 billion in agreements and memorandums of understanding during the visit of a high-level business delegation, led by Saudi Minister for Investment Khalid Al-Falih.
