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The yield on Japans 30-year government bonds rose 0.5 basis points to 3.835%.Yemeni government forces: Warplanes launched eight airstrikes against Houthi strongholds in the western Taiz province of Hanshan and Dabab.On October 26th, it was reported that the Bank of Japan (BOJ) is expected to announce at its policy meeting on Friday that it has won its nearly 14-year battle to reach its 2% inflation target, emphasizing the risk of price overshooting and hinting at a possible rate hike as early as December. However, analysts say the BOJ may avoid giving clear hints about the timing and pace of future rate hikes, as it needs to balance preventing inflation overshooting with avoiding premature rate hikes that could disrupt already strained markets. A person familiar with the BOJs thinking said that due to moderate price and wage increases, the BOJ will raise rates gradually and will not rush into action. The source also indicated that in its quarterly report released after the meeting, the BOJ may slightly raise its price forecast for the next fiscal year and suggest that underlying inflation has roughly reached its 2% target. Naomi Muguruma, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities, said this is a historic moment for the BOJ, but it now faces a more challenging task as it needs to not only accelerate but also apply the brakes. The BOJ will likely review upcoming data and market movements to decide whether to raise rates in December or wait until January.The Saudi-led coalition says its actions against the Houthis are based on its legitimate right to self-defense.On October 26, the Houthi rebels claimed on Monday that they had attacked Saudi Arabias East-West oil transshipment terminals and Riyadh airport, but Saudi Arabia has not yet immediately confirmed this. Earlier, the Saudi-led coalition in Yemen stated that they had destroyed two ballistic missile launchers in the capital Sanaa, one of which was intended to launch a missile towards Riyadh; the coalition claimed to have intercepted the missile. The Houthis have been launching ballistic missiles and drones at Saudi airports, ports, and oil facilities, making Saudi Arabia a pressure point in the broader war.

Third Point's Loeb Praises Shell Moves, Sticks by Calls For Breakup

Haiden Holmes

May 09, 2022 10:14

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Daniel Loeb, an activist investor who desires the breakup of Royal Dutch Shell (LON:RDSa) Plc, hailed the energy giant's decision to relocate its headquarters, despite his belief that a new corporate structure would be more successful.


In October, Loeb said that his hedge fund Third Point LLC had acquired a $750 million interest in the business. On Friday, he informed his own investors that he has increased his Shell stake and held meetings with management, the board of directors, and other shareholders.


The letter, which was viewed by Reuters on Saturday, referred to the discussions as "productive" and stated that the company's stock price is now low, but that "good management" will lead to price increases.


Loeb is steadfast in his belief that the company's success might be enhanced by a different corporate structure. However, he also supported Shell's decision to relocate its headquarters from the Netherlands to the United Kingdom and to form a single class of shareholders.


This enables for a more flexible portfolio modification (via asset sales or spin-offs) and a more efficient return of cash, specifically through share repurchases, according to the letter.


In October, Loeb stated for the first time publicly that Shell would profit from separating its liquefied natural gas, renewable energy, and marketing businesses from its traditional energy business. He wrote that numerous stockholders share this opinion.


Current geopolitical events, according to Loeb's letter, highlight the strategic importance of dependable energy supply, particularly in Europe. The letter stated, "Shell's LNG (liquid natural gas) business, the largest in the world outside of Qatar, will play a crucial role in guaranteeing Europe's energy security."


This is the first time since the initial announcement that Loeb has informed his clients on the Shell deal.


In a broader sense, Loeb stated that his business has made more investments in energy firms and other stocks that will benefit from greater inflation, supply constraints, and a shift toward more renewable energy sources.

Third Point Partners' Fund lost 11.5% in the first quarter, but the firm avoided more severe losses in April, when its fund fell 1% and the S&P 500 index fell 8%.


Third Point sold off a number of major equity positions and made a new investment in mining giant Glencore (OTC:GLNCY), which is poised to profit from the transition to renewable energy. He anticipates that the company's new management team, enhanced ESG profile, and "quite significant financial returns to shareholders and government settlements" will allow it to catch up to other mining corporations.

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