{"id":39166,"date":"2018-10-15T11:00:43","date_gmt":"2018-10-15T16:00:43","guid":{"rendered":"http:\/\/olduvai.ca\/?p=39166"},"modified":"2018-10-15T11:00:43","modified_gmt":"2018-10-15T16:00:43","slug":"saudi-blowback-wipes-billions-from-softbank-shares","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=39166","title":{"rendered":"Saudi Blowback Wipes Billions From Softbank Shares"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/news\/2018-10-15\/softbank-shares-shed-22-billion-amid-outrage-over-saudi-ties\"><span class=\"field field--name-title field--type-string field--label-hidden\">Saudi Blowback Wipes Billions From Softbank Shares<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\" data-gtm-vis-recent-on-screen-2077925_22=\"1106\" data-gtm-vis-first-on-screen-2077925_22=\"1106\" data-gtm-vis-total-visible-time-2077925_22=\"100\" data-gtm-vis-has-fired-2077925_22=\"1\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\"><\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>Refusing to be cowed by a flurry of cancellations that have effectively gutted Riyadh&#8217;s Future Investment Initiative &#8211; colloquially known as &#8220;Davos in the Desert&#8221; &#8211; Saudi Arabia has lashed out at the US and its Western allies, <strong>warning that there will be hell to pay if anybody dares sanction the world&#8217;s largest oil exporter.<\/strong> If Mr. Trump is bothered by oil prices at $80 a barrel, the Saudis have wagered, <strong>imagine how uncomfortable he would be with oil at $200 a barrel?<\/strong> Already, oil traders have recognized Saudi&#8217;s <a href=\"https:\/\/www.zerohedge.com\/news\/2018-10-14\/saudi-arabia-lashes-out-against-white-house-threatens-global-economy-after-trump\">&#8220;weaponization&#8221;<\/a> of OPEC&#8217;s ability to control global oil supplies, while Saudi&#8217;s Tadawul stock exchange plunged 8% at the lows on Sunday (though this drop was mitigated in part by a late-session rebound).<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018.10.15mbs.JPG?itok=REDkWppC\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/2018.10.15mbs.JPG?itok=REDkWppC\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018.10.15mbs.JPG\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/2018.10.15mbs.JPG?itok=REDkWppC 1x\" alt=\"MBS\" width=\"500\" height=\"295\" data-entity-type=\"file\" data-entity-uuid=\"580c4073-abf2-4620-a478-a509f2feb111\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>But the tentacles of capital emanating out of Riyadh stretch across the world, to Tokyo and San Francisco and beyond, what one <a href=\"https:\/\/www.nytimes.com\/2018\/10\/12\/opinion\/silicon-valley-saudi-arabia.html\">NYT<\/a> op-ed writer described as Silicon Valley&#8217;s &#8220;Saudi Arabia problem.&#8221; And nowhere is this link more evident than with Tokyo-traded Softbank, whose shares have born the brunt of investors&#8217; indignation over the burgeoning diplomatic crisis (a crisis rooted in Saudi Arabia&#8217;s suspected murder of a former-insider-turned-dissident-journalist inside the Saudi consulate in Istanbul). Softbank shares closed more than 7.3% lower on Monday in Tokyo, a move that analysts partly attributed to the instability surrounding Saudi Arabia. Since Softbank&#8217;s September peak,<strong> the company has shed more than $22 billion in market capitalization,<\/strong> according to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-10-15\/softbank-plunges-19-billion-amid-tech-rout-saudi-controversy\">BBG data. <\/a><\/p>\n<p>A pullback in tech shares like Nvidia, in which Softbank owns a major stake, has helped weigh on Softbank shares as one <a href=\"https:\/\/www.bloomberg.com\/view\/articles\/2018-10-14\/china-is-the-climate-change-battleground\">BBG<\/a> columnist calculated that SB&#8217;s Nvidia stake was &#8220;the major factor&#8221; driving Softbank&#8217;s profitability last year.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-10-15_5-25-58.jpg?itok=VTUVUvJ8\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/2018-10-15_5-25-58.jpg?itok=VTUVUvJ8\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-10-15_5-25-58.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/2018-10-15_5-25-58.jpg?itok=VTUVUvJ8 1x\" alt=\"\" width=\"500\" height=\"263\" data-entity-type=\"file\" data-entity-uuid=\"577ed55e-797b-476e-8acb-22fc05fb0181\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>Just like the broader market, the pullback in tech was inspired, at least in part, by anxieties surrounding the US-China trade war. But its Saudi ties are increasingly becoming an intolerable risk in the eyes of investors.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Saudi Blowback Wipes Billions From Softbank Shares Refusing to be cowed by a flurry of cancellations that have effectively gutted Riyadh&#8217;s Future Investment Initiative &#8211; colloquially known as &#8220;Davos in the Desert&#8221; &#8211; Saudi Arabia has lashed out at the US and its Western allies, warning that there will be hell to pay if anybody [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[22167,592,1246,701,22316,4318],"class_list":["post-39166","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-jamal-khashoggi","tag-oil-price","tag-riyadh","tag-saudi-arabia","tag-sofbank","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39166"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39166\/revisions"}],"predecessor-version":[{"id":39167,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39166\/revisions\/39167"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}