World Street | Aramco doles out dividend, Reddit plans $748-million IPO, Powell's Pivot and Sam Altman returns as OpenAI CEO

World Street offers a sneak peek into the world of business and economy

Aramco, Saudi Arabia's state-owned oil giant, hands out dividends despite a 24.7 percent decline in profit 2023. Reddit plans a $748-million IPO. The US justice department open probe against Boeing after an Alaska Airlines incident. OpenAI's CEO Sam Altman retains position after a coup attempt. US Fed chairman Jerome Powell hints at easing inflation fight. Aall this and more in this edition of World Street.

Payout party

Aramco, the state-owned oil giant of Saudi Arabia, maintained its dividend payout despite a 24.7 percent decline in net profit to $121.3 billion in 2023, attributed to lower oil prices and volumes. This underscores the country's ongoing dependency on oil revenue amidst efforts to diversify its economy.

Despite the profit falling from $161.1 billion in 2022, Aramco's earnings for 2023 still ranked as its second-highest on record. The company reported total dividends for the year amounting to $97.8 billion, marking a significant 30 percent increase.

Reddit rendezvous

Reddit Inc and its investors are looking to raise as much as $748 million in what would be one of the biggest IPOs, so far, this year. The social media platform and some of its shareholders plan a sale of 22 million shares for $31 to $34 each, Bloomberg has reported. The company was seeking a valuation of as much as $6.5 billion in the listing.

Boeing probe

The US department of justice (DOJ) has begun a criminal investigation into Boeing after a panel on one of the company’s planes blew out on an Alaska Airlines flight in early January, The New York Times reported.  The airline said it was cooperating with the inquiry.

“In an event like this, it’s normal for the DOJ to be conducting an investigation. We are fully cooperating and do not believe we are a target of the investigation," Alaska Airlines said in a statement.

Coup conclusion

An independent investigation commissioned by OpenAI’s non-profit board has found that CEO Sam Altman’s conduct “did not mandate removal”. After surviving an attempted boardroom coup in November 2023, he will now rejoin the board.

In a press release, board chair Bret Taylor said WilmerHale law firm interviewed board members, employees, and reviewed more than 30,000 documents to conclude that Altman and co-founder Greg Brockman “are the right leaders for OpenAI”.

Powell's Pivot

Nearly eight months after elevating interest rates to their highest level in two decades, Federal Reserve Chair Jerome Powell and his colleagues are edging toward easing their stance on inflation.

During congressional testimony last week, Powell stressed the central bank requires "just a bit more evidence" that inflation is moving towards its 2 percent target before considering reducing borrowing costs. "We're nearing that point," he said.

China's comeback?

Consumer prices in China experienced their first rise since August, halting a streak of contraction that has been weighing on the growth prospects of the world's second-largest economy. According to the National Bureau of Statistics, the consumer price index saw a 0.7 percent increase in February compared to the previous year, bouncing back from the largest drop since 2009 recorded in January.

Recession reprieve

Japan's economy managed to avoid slipping into a recession at the close of last year, buoyed by strong business spending. This outcome presents a positive scenario for the Bank of Japan as it considers the timing of its first interest rate hike since 2007. According to the cabinet office, Japan's GDP expanded at an annualised rate of 0.4 percent in the final quarter of last year.

While this upward revision suggests greater resilience in the economy ahead of the central bank's policy meeting next week, the data indicates that consumers are still cautious in their spending habits due to ongoing inflationary pressures.

Growth Gambit

Estancia Capital Partners LP is acquiring a minority interest in UK Savings Fintech Flagstone, a cash deposit platform, to bolster the UK startup's savings offerings. Flagstone announced that the £108 million ($139 million) investment from the private equity firm will support its consolidation and expansion efforts in both domestic and international markets.

The investment will also support rewards to Flagstone's current investors. The specific size of Estancia's stake in the Arizona-based company was not disclosed as part of the transaction.