Barclays, JP Morgan among banks facing UK class action over forex-rigging

Traders work on the trading floor of Barclays bank at Canary Wharf in London. Barclays is one of several major investment banks facing allegations of forex rigging. (Reuters)
Updated 29 July 2019
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Barclays, JP Morgan among banks facing UK class action over forex-rigging

  • Some of the world’s biggest investment banks have already paid more than a combined $11 billion in fines to settle US, British and European regulatory allegations that traders rigged the currency markets

LONDON: Barclays, JP Morgan , RBS, UBS and Citigroup are being sued by investors over allegations they rigged the global foreign exchange market, in a test of US-style class actions in Britain.
The claim, estimated to be worth more than 1 billion pounds ($1.24 billion), was filed at the Competition Appeal Tribunal (CAT) on Monday, US law firm Scott + Scott said.
JP Morgan, RBS, UBS, Barclays and Citi declined to comment.
Some of the world’s biggest investment banks have already paid more than a combined $11 billion in fines to settle US, British and European regulatory allegations that traders rigged the currency markets.
Litigators have long hoped to replicate in Britain the success of US class action claims against banks, including Goldman Sachs, HSBC and Barclays, that have resulted $2.3 billion in settlements for big investors.
In May the European Union fined five banks a combined 1.07 billion euros ($1.19 billion) for forex rigging through cartels of traders known as “Essex Express” and “Three Way Banana Split.”
The lawsuit is being led by Michael O’Higgins, the former chairman of British watchdog the Pensions Regulator, and is being funded by litigation finance group Therium.
O’Higgins told Reuters the total value of the claim would depend on the number of forex trades executed in London for UK-domiciled units — which will be automatically included in the action — and the proportional impact of rate rigging on these.
Given the size of London’s forex market, O’Higgins said the total value would likely exceed a billion pounds.
“Even on a relatively conservative assumption it’s certainly a billion pounds and possibly several,” O’Higgins said.
“Markets should be fair as well as free and in this case the markets weren’t fair.”

Class action test
The “massive” action is a “perfect” case to be brought as a so-called opt-out collective class action for breaches of UK or European Union competition law, David Scott told Reuters.
“It is a very difficult case to put together individual damages which are significant enough,” the Scott + Scott lawyer added.
Britain’s Consumer Rights Act (CRA) in 2015 introduced “opt-out” class actions for breaches of British or EU competition law. In such cases, UK-based members of a defined group will automatically be bound into a legal action unless they opt out, saving on hefty advertising costs. Overseas-based claimants, however, will still have to actively sign up.
The regime is designed to offer a more effective route to compensation for consumers and businesses who fall victim to anti-competitive conduct and is overseen by the CAT.
Its first major test case — a 14 billion pound claim against Mastercard for allegedly overcharging more than 45 million people in Britain over a 16-year period — was blocked by the CAT in 2017, a decision that was overturned at the Court of Appeal and is set to be heard by the Supreme Court.
This wrangling has already delayed other class actions and some law firms have chosen a different legal route for offering pension funds, asset managers and other institutional investors the chance to hold banks to account.
Law firm Quinn Emanuel Urquhart & Sullivan in December filed a damages claim against six banks through London’s commercial courts, which it said has already signed up some of the biggest institutional investors.


World’s largest green hydrogen plant on track for 2026 launch in Saudi Arabia, CEO says

Updated 10 sec ago
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World’s largest green hydrogen plant on track for 2026 launch in Saudi Arabia, CEO says

BAKU: The world’s largest green hydrogen plant, which is under construction in Saudi Arabia, is on-track to begin production in December 2026, the company’s CEO told Arab News.

NEOM Green Hydrogen Company is now 60 percent complete, according to CEO Wesam Al-Ghamdi.

Al-Ghamdi emphasized the ambition of the project, which he described as “being built at a scale no one has attempted before.”

The plant will rely entirely on solar and wind energy to power a 2.2 gigawatt electrolyzer, designed to produce hydrogen continuously, he said.

Green hydrogen, created through electrolysis powered by renewable energy, is seen as a critical component in reducing global carbon emissions, because it produces no greenhouse gases in the production process.

It has broad potential throughout industry, from heavy-duty transport to steel production, where conventional methods rely heavily on fossil fuels. As countries and companies face increasing pressure to decarbonize, green hydrogen is gaining traction as a viable alternative to fossil fuels, despite the challenges of cost and scale that currently limit widespread adoption.

In discussing NGHC’s competitive edge, Al-Ghamdi pointed to the cost advantages tied to NEOM’s renewable resources.

The plant’s reliance on Saudi Arabia’s abundant solar and wind energy reduces production expenses, which are crucial in making green hydrogen more commercially viable.

“We have the abundance of solar and wind, so we have that renewable power competitive advantage,” he said, explaining that the large-scale setup at NEOM allows for efficient production at a cost level that few projects can match globally.

Coupled with a 30-year offtake agreement in place with Air Products, NGHC has secured a pathway for its hydrogen output to reach international markets in ammonia form, making it easier to transport and distribute. This structure reflects a calculated move to meet projected demand from sectors such as heavy transport and industrial manufacturing.

Located within NEOM, NGHC’s project is strategically positioned in Saudi Arabia’s northwest Red Sea development zone, where consistent solar and wind resources provide a substantial cost advantage for energy production. The plant is part of Saudi Arabia’s broader Vision 2030 initiative, led by Crown Prince Mohammed bin Salman, which aims to reduce the Kingdom’s economic reliance on oil by expanding into new industries such as renewable energy, tourism, and technology.

Al-Ghamdi said that staffing the project is key to establishing Saudi expertise in the green energy sector. Currently, more than 60 percent of NGHC’s workforce is composed of Saudi citizens, a mix of experienced industry professionals and recent graduates.

Through partnerships with Saudi universities and special training initiatives, NGHC is working to fill the highly technical roles necessary to operate a facility of this scale.

“Our goal isn’t just to produce hydrogen but to build a foundation of expertise here in Saudi Arabia,” he said, adding that the project seeks to build a lasting skills base in the country.

NGHC has also developed a 10-year research and development partnership with Germany’s ThyssenKrupp to refine and optimize its electrolyzer technology.

The early installation of the project’s first electrolyzer, scheduled to go online ahead of the main facility launch, is expected to provide valuable insights into operational efficiencies.

By testing and optimizing the equipment well in advance of full-scale production, NGHC aims to streamline processes, reduce maintenance costs, and extend equipment life cycles as the plant moves toward its 2026 production target.

While global interest in hydrogen is accelerating, Al-Ghamdi sees NEOM’s project as especially well placed to capitalize on Saudi Arabia’s natural advantages.

“We have the scale, location, and the partnerships in place that give us a significant lead,” he said, describing NGHC as a potential model for Saudi Arabia’s broader push into renewable energy and a significant part of Vision 2030’s economic transformation goals.


IEA sees 2025 oil market in supply surplus

Updated 36 min 41 sec ago
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IEA sees 2025 oil market in supply surplus

LONDON: The world’s oil supply will exceed demand in 2025 even if OPEC+ cuts remain in place, the International Energy Agency said in its monthly oil market report on Thursday, as rising production outside the producer group is met by sluggish global demand growth.

“Our current balances suggest that even if the OPEC+ cuts remain in place, global supply exceeds demand by more than 1 million barrels per day next year,” the IEA said.

The Paris-based agency left its 2025 oil demand growth forecast little-changed on the month, expecting oil demand to rise by 990,000 bpd next year.

It meanwhile expects non-OPEC+ supply growth to rise by 1.5 million bpd next year, driven by higher output from the US, Canada, Guyana and Argentina.

In its own monthly oil report on Tuesday, OPEC cut its global oil demand growth forecast this year and next, its fourth consecutive monthly downward revision, on weakness in China, India and other regions.

Global demand growth below 1 million bpd this year follows close to 2 million bpd of growth in 2023, the IEA said.

“The sub-1 million bpd growth pace for both years reflects below-par global economic conditions with the post-pandemic release of pent-up demand now complete,” it said.

Waning Chinese demand continues to hit global oil demand growth, with 2024 annual oil demand growth set to reach just 140,000 bpd, the IEA said, a tenth of the 1.4 million bpd demand growth of 2023.

The rapid development of cleaner energy technologies is also increasingly displacing oil, the agency said in its November report. The IEA made a slight upward adjustment to its 2024 oil demand growth forecast, up by 60,000 bpd on the month to 920,000 bpd, on higher-than-expected gasoil demand in OECD countries in the third quarter.


COP29: UN Secretary-General calls for urgent collaboration to halt ‘catastrophic’ climate change

Updated 55 min 32 sec ago
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COP29: UN Secretary-General calls for urgent collaboration to halt ‘catastrophic’ climate change

RIYADH: UN Secretary-General Antonio Guterres emphasized the high stakes of climate inaction in a roundtable discussion held during the ongoing COP29 in Baku. 

At the High-Level Event on the stocktake of “Integrity Matters” at the gathering, global leaders convened to discuss the urgent need for climate action, reflecting on progress, challenges, and the role of non-state actors in achieving net-zero commitments. 

“We are racing the clock,” Guterres said, adding that with extreme weather events bringing “human tragedy and economic destruction worldwide,” the global goal of limiting temperature increases to 1.5 degrees Celsius is becoming progressively more challenging to reach.

Reflecting on the achievements so far, the secretary-general acknowledged the scale of efforts already made, saying: “We did a massive global effort to steer our world onto a pass-through safety, a pass to net zero by mid-century.” 

However, he underscored that these efforts will only bear fruit if supported by stronger collaboration across sectors. Guterres urged “businesses, financial institutions, cities, regions, and more” to align with national governments on climate action plans and make coordinated strides toward decarbonization. 

“We must make sure that governments facilitate the work of other actors in this regard, and not that they complicate the work of other actors in compliance with the 1.5 aligned future,” he said.

In a show of support for the gathered climate leaders and activists, Guterres said: “Time is racing, and you are on the right side of history, and I’m very glad to be here with you.” 

Yet he issued a reminder that while a low-carbon transition is inevitable, “doesn’t mean that it will come on time.” 

He stressed that if delays continue, the consequences for the planet could be catastrophic. 

Brazilian Vice President Geraldo Alckmin also addressed the assembly, outlining his country’s continued dedication to combating global warming through policies targeting deforestation and renewable energy. 

“Brazil has a commitment to fighting climate change,” Alckmin said, adding that in the past two years, the country had achieved a significant 45.7 percent reduction in deforestation rates. 

He detailed Brazil’s efforts to shift toward greener fuels, with 15 percent of the nation’s diesel now comprising biodiesel, a fuel derived from plant oils. Alckmin highlighted that Brazil’s ethanol usage in gasoline, which currently stands at 27 percent, is set to increase to 35 percent in the near future. 
 
Additionally, the South American country is aiming to position itself as a leading producer of sustainable aviation fuel, which could replace kerosene in the flight industry, as part of its broader commitment to green energy. “Brazil will be prepared to be a major producer of SAF ethanol,” he said.

Helena Vines Fiestas, chair of the EU Platform on Sustainable Finance, provided an update on climate policies among the G20 countries, highlighting a surge in policies geared toward supporting non-state actors in their net-zero transitions. 

“All G20 countries now have policies, or some form of policies, to support the transition of non-state actors to net zero further. The number of policies has tripled since 2020,” she reported. 

Fiestas emphasized that while considerable work remains, the international community has demonstrated that net-zero regulation is feasible. “Progress is clear,” she said. “Work lies ahead, but the leaders have demonstrated that regulating on net zero is doable.”

Executive Secretary of the UN Framework Convention on Climate Change Simon Stiell highlighted a new initiative aimed at strengthening transparency in environmental action. He announced that the UNFCCC’s Global Climate Action Portal is undergoing redevelopment to provide better accountability in tracking commitments. 

He shared that the portal would be relaunched shortly after COP29 concludes, and he emphasized the role of the entire global community in driving this agenda forward. 

Washington State Governor Jay Inslee addressed the concerns around recent political shifts in the US, asserting that state-level commitments to climate action would remain the same 

“I know there’s concern about the last election last Tuesday, but I want to make it really clear, if you take anything home from this meeting, this election will not stop, will not slow down, and will not retire the absolute commitment of states to lead this battle against climate change,” he affirmed. 

He added: “Donald Trump can do anything he wants, but he cannot stop me from committing to (tackling) climate change in my state.”

Catherine McKenna, chair of the UN High-Level Expert Group on Net-Zero Emissions Commitments of Non-State Actors, emphasized the urgency of high-integrity net-zero plans in her latest report, titled “Integrity Matters: The Hard Work is Now,” presented during the session. 

“The leaders highlighted in this review show that high-integrity net zero can be achieved. It’s no longer credible for companies, investors, cities, and regions to claim that moving faster on the climate crisis is too difficult or expensive,” McKenna said. She further urged a “much broader range” of stakeholders to establish comprehensive transition plans by 2025.

McKenna’s report, commissioned by Guterres, underscored that while voluntary net-zero pledges have risen, there remains a significant gap in alignment with rigorous standards, particularly in the phasing out of fossil fuels. 

“Voluntary efforts are not sufficient for the scale and pace of change we need to see,” McKenna said, advocating for stronger governmental regulations to ensure credible climate commitments and promote competitive investments. 

She added: “Every fraction of a degree matters, and every tonne of CO2 makes a difference. We must do the hard work now, or we will all face the consequences tomorrow.”

Guterres closed with a reminder of the significant obstacles that remain on the path toward net-zero goals. “We need not only to do the right thing, but we need to fight those that are trying not to allow us to do the right thing,” he said. 
 


COP29: Saudi Arabia signs major green energy pact with Central Asian nations

Updated 50 min 16 sec ago
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COP29: Saudi Arabia signs major green energy pact with Central Asian nations

RIYADH: Saudi Arabia has signed a joint executive program with Azerbaijan, Uzbekistan, and Kazakhstan to strengthen collaboration on renewable energy development and transmission. 

The deal was signed on the sidelines of the 29th UN Climate Summit in Baku by Saudi Energy Minister Prince Abdulaziz bin Salman and his counterparts from the three nations, according to a press statement. 

The initiative aims to foster a strategic partnership to assess regional power grid interconnection projects centered on renewable power.

Saudi Arabia, a leader in Middle Eastern clean energy, aims to meet 50 percent of its power needs from renewable sources by 2030.

“This signing is in implementation of bilateral memorandums of understanding previously signed between Saudi Arabia and Kazakhstan in the energy sector on Jun 12, 2023, as well as two energy cooperation agreements with Azerbaijan on May 24, 2023, and with the Republic of Uzbekistan on Aug. 17, 2022,” noted the Ministry of Energy.

The ministry highlighted that this partnership will enhance energy infrastructure efficiency and promote integration of renewable energy into the national grids of the partner nations.

The program will also explore joint investment opportunities, laying groundwork for regional grid interconnection projects to support renewable electricity generation and storage. 

Azerbaijan President Ilham Aliyev talking with Saudi Energy Minister Prince Abdulaziz bin Salman. Saudi Ministry of Energy

ACWA Power, a major Saudi utility company, will oversee these renewable energy projects in Azerbaijan, Uzbekistan, and Kazakhstan. 

“The signatory parties also agreed to adopt a mechanism for exchanging information and expertise, which includes knowledge-sharing among experts and specialists, organizing specialized conferences and seminars, as well as holding joint working sessions to strengthen close cooperation among the countries,” the statement added. 

Also on the COP29 sidelines, ACWA Power signed agreements to bolster renewable initiatives, including a deal with Uzbekistan’s Ministry of Energy to develop battery energy storage systems with a capacity of up to 2 gigawatts per hour. This initiative is aimed at enhancing grid stability. 

Additionally, ACWA Power entered into a memorandum of understanding with Azerbaijani firm SOCAR and Masdar to develop up to 3.5 GW of offshore wind projects in the Caspian Sea — the first of its kind for Azerbaijan. 

Energy Minister Prince Abdulaziz bin Salman watches as Saudi Electricity Co. signs an MoU. Saudi Ministry of Energy

Another deal struck on the sidelines of the summit saw Saudi Electricity Co. sign an MoU with network operators in Azerbaijan, Kazakhstan, and Uzbekistan to develop regional interconnection projects. 

SEC also signed another MoU with AzerEnergy for cooperation in electricity transmission and integrating renewable energy sources into the power grid. 

During COP29, Saudi Arabia and Azerbaijan signed a comprehensive roadmap outlining a timeline and action plan for priority energy projects, facilitating cooperative efforts in various fields. 

“This roadmap aims to outline an action plan and establish a timeline for priority projects, facilitating procedures to achieve shared objectives,” said the Energy Ministry. 

It added: “The roadmap includes cooperation in several vital areas, such as renewable energy, carbon capture, utilization, and storage, clean hydrogen, energy efficiency, and enhancing the sustainability and resilience of supply chains, in addition to trade in refined and petrochemical products.” 


Saudi inflation holds steady at 1.9% despite global price pressures: GASTAT

Updated 14 November 2024
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Saudi inflation holds steady at 1.9% despite global price pressures: GASTAT

RIYADH: Saudi Arabia’s annual inflation rate reached 1.9 percent in October compared to the same month last year, driven primarily by higher housing costs, official data showed.

According to the General Authority for Statistics, actual housing rents saw an annual increase of 11.6 percent, with apartment rents rising by 11.3 percent. 

Overall, expenses for housing, water, electricity, gas, and other fuels rose by 9.6 percent compared to the same period in 2023. 

Saudi Arabia’s inflation rate remains among the lowest in the Middle East, highlighting the nation’s effective measures to stabilize the economy and mitigate global price pressures. 

A World Bank report last month noted Saudi Arabia’s economic resilience, projecting the Kingdom’s inflation rate to remain steady at 2.1 percent in 2024 and 2.3 percent in 2025, lower than the Gulf Cooperation Council average.

“The increase in this section (housing) had a significant impact on the continuation of the annual inflation pace for the month of October 2024 due to the weight formed by this section, which amounted to 25.5 percent,” stated GASTAT. 

The report also highlighted that prices for personal goods and services rose by 2.3 percent in October, led by a 24.1 percent rise in the costs of jewelry, watches, and precious antiques. 

Restaurant and hotel expenses saw a 1.9 percent annual increase, while education costs rose by 1.1 percent. Food and beverage prices saw a slight increase of 0.1 percent in October, driven by a 2.6 percent rise in vegetable prices. 

In contrast, prices for furnishings and home equipment fell by 3.1 percent year on year in October, while expenses for clothing and footwear declined by 2.7 percent. Transportation prices also dropped by 3.1 percent annually, influenced by a 4.2 percent decrease in vehicle purchase prices. 

Compared to September, Saudi Arabia’s Consumer Price Index experienced a modest 0.3 percent rise. 

“This monthly inflation index was influenced by a 0.8 percent rise in the section of housing, water, electricity, gas, and other fuels, which in turn, was affected by a 1 percent increase in actual housing rents and prices,” added GASTAT. 

Prices for personal goods and services rose 0.4 percent month on month in October, while transportation expenses increased by 0.3 percent. Food and beverage prices and health expenses, however, saw slight declines of 0.2 percent and 0.1 percent, respectively. 

The World Bank projects GCC inflation to reach 2.2 percent in 2024 and 2.7 percent in 2025. Saudi Arabia’s gross domestic product is forecast to grow by 1.6 percent this year and accelerate to 4.9 percent in 2025. 

Wholesale Price Index 

In a separate report, GASTAT revealed that Saudi Arabia’s Wholesale Price Index increased by 2.4 percent in October year on year. 

“This increase is mainly attributed to a 5.4 percent increase in the prices of other transportable goods, affected by a 12 percent increase in the prices of refined petroleum products, as well as a 9.6 percent increase in furniture and other transportable goods,” the authority stated. 

Agricultural and fishing product prices saw an annual rise of 0.8 percent, as agricultural product costs increased by 2 percent. Metal products, machinery, and equipment also saw a 0.5 percent increase in October, led by a 3.5 percent rise in basic metals. 

Conversely, prices for ores and minerals dropped by 2.7 percent due to a decline in costs for stones and sand. 

Food, beverages, tobacco, and textiles decreased by 0.1 percent, driven by a 4.6 percent decline in the prices of meat, fish, fruits, vegetables, oils, and fats. 

Compared to September, the WPI declined by 0.2 percent, influenced by a 0.6 percent drop in prices of other transportable goods. 

Average Price Index 

In an additional report, GASTAT noted shifts in the average prices of goods and services across Saudi Arabia in October. 

Prices of Abu Sorra Egyptian oranges increased by 7.29 percent compared to the previous month, while green bean prices rose by 6.98 percent. Turkish plums and imported honey also saw monthly increases of 5.38 percent and 4.58 percent, respectively. 

In contrast, the price of imported barley fell by 6.16 percent, and the costs of hay and local melon dropped by 4.93 percent and 4.02 percent, respectively, in October.