>>> Evonik methacrylates refresh bids due in December, sources say

Evonik methacrylates refresh bids due in December, sources say

German specialty chemical company Evonik Industries [ETR: EVK] is aiming to collect refresh bids for its methacrylates business in early December, according to three sources familiar with the matter.
Management presentations have just started, two of the sources said. Final bids are likely to be collected in a late January-February timeframe, they said.
Financial sponsors Apollo Global Management [NYSE:APO], Advent International, SK Capital, are all said to be competing in the second round, as previously reported. Rhone Capital and Triton have partnered up to bid for the asset, two of the sources said.
The division could fetch a 6x EBITDA valuation, but faces the challenge that it is not seen as a best-in-class business, this news service previously reported. Initial offers, which were collected on 2 November, almost certainly came in below EUR 3bn, sources previously told this news service.
In March, Evonik announced that it was reviewing options for its methacrylates businesses (MMA and PMMA), and mandated Barclays to run the process, as reported.
The business comprises high-volume monomers such as MMA, various specialty monomers, as well as the PLEXIGLAS brand of PMMA molding compounds and semi-finished products. These products are manufactured in Germany, North America and Asia.
Evonik declined to comment.

Weekly Market Update

Weekly Market Update: Fed’s Powell “put” the market at ease amid G20 trade discussions

Investors had a host of issues to chew on this week, but ultimately the Fed Chairman’s speech on Wednesday moved the needle ahead of the weekend G20 meeting. Powell softened his comments on the whereabouts of the ‘neutral’ rate from Oct 3rd that many believed was a major catalyst for the recent US stock market correction. By acknowledging rates were “just below” the range that most Fed members viewed as neutral he appeared to offer investors an early Christmas gift by leaving the door open to backing away from some or even all of the Fed’s projected 2019 rate hikes. The economic numbers largely supported the dovish tilt as US data softened, oil prices plunged further, key inflation readings stayed subdued, and overseas growth signals remained worrisome.

Risk assets held the post-Powell gains heading into the G20 meeting on Friday. Expectations grew for the Xi/Trump summit as even some of the White House’s most ardent China hawks suggested something was likely to come of the meeting. Market expectations seemed to coalesce around the notion the two sides could zero in on a deal to de-escalate the trade dispute, involving the US delaying implementation of further tariffs in return for China policy modifications on farm and energy product restrictions. US Treasury yields fell and the curve flattened, rekindling fears of a potential curve inversion when the 2-year and 5-year yields converged to within a few basis points on Friday. For the week, the S&500 gained 4.8%, the DJIA rose 5.1%, and the Nasdaq added 5.6%.

GM’s announcement of a major restructuring headlined the corporate news this week. Citing shifting consumer tastes in automobiles, GM announced it would cease operations at three plants in the US and Canada and cut thousands of jobs with the expectation of saving billions of dollars in costs and capex. The US and Canada governments expressed displeasure at the move and President Trump said he would look at clawing back GM subsidies and bailout costs. United Technologies completed its acquisition of Rockwell Collins and confirmed the next step in its plans, splitting the conglomerate into three more focused entities. In a reversal from the consumer optimism surrounding the Black Friday weekend, Tiffany shook high end retailers with a subpar earnings report and a cut to its same store sales guidance for the fiscal year. Meanwhile, Salesforce reinvigorated trading in tech growth names with an impressive Q3 report. The week closed out with a report of a database breach at Marriott that may have exposed the personal information of half a billion customers over the last 4 years, sending the hotel’s shares down more than five percent.


MONDAY 11/26
(IT) Italy ruling coalition said to be discussing lowering 2019 budget deficit to GDP target from 2.4% to 2.0-2.1% - press
*(DE) GERMANY NOV IFO BUSINESS CLIMATE: 102.0 V 102.3E; CURRENT ASSESSMENT: 105.4 V 105.3E
GM Reportedly to cut car production in North America, will stop building some car models; to announce significant job cuts in N.A. among salaried and executive workers - press
GM Confirms accelerates transformation; cuts production from 5 plants; to take charge of $3.0-3.8B
(US) NOV DALLAS FED MANUFACTURING ACTIVITY: 17.6 V 24.5E
(US) Pres Trump: not happy with GM's decision to cut auto production; expects GM will put something else in Ohio; the country has done a lot for GM
UTX Confirms to Separate Into Three Independent Companies; Completes Acquisition of Rockwell Collins; affirms dividend of $0.735 post split; Cuts FY18 $7.10-7.20 v $7.27e (prior $7.20-7.30); Raises Rev $64.5-65.0B v $64.8Be (prior $64.0-64.5B); Affirms organic Rev ~+6%

TUESDAY 11/27
(US) Fed Vice Chair Clarida (moderate, voter): Gradual rate hikes appropriate as data shows way to neutral policy
(US) Nevada reports Oct casino gaming Rev $1.06B, +7.5% y/y; Las Vegas strip Rev $593.4M, +12.2% y/y
(EU) Reportedly US President Trump to impose 25% tax on European carmakers next week after G20 meeting - German press
*(US) NOV CONSUMER CONFIDENCE: 135.7 V 135.9E
GM Pres Trump expresses disappointment in GM, says he is studying cutting all GM subsidies, including for electric cars
CRM Reports Q3 $0.61** v $0.50e, Rev $3.39B v $3.37Be
GSK Unilever reportedly in exclusive talks to acquire nutrition unit from GlaxoSmithKline including Horlicks drink brand - FT
(CN) China Ambassador to US Cui: doesn't believe anyone in Beijing is thinking seriously about pulling back from US Treasury debt market if trade disputes worsen

WEDNESDAY 11/28
TIF Reports Q3 $0.77 v $0.76e, Rev $1.01B v $1.05Be
(US) Q3 PRELIMINARY GDP ANNUALIZED Q/Q: 3.5% V 3.5%E; PERSONAL CONSUMPTION: 3.6% V 3.9%E
(US) NOV RICHMOND FED MANUFACTURING INDEX: 14 V 15E
*(US) OCT NEW HOME SALES: 544K V 575KE
(US) Fed Financial Stability Report: large US banks are strongly capitalized; business debt high relative to GDP
*(US) DOE CRUDE: +3.6M V +0.5ME; GASOLINE: -0.8M V 0ME; DISTILLATE: +2.6M V -0.5ME
(US) FED'S POWELL: POLICY RATE IS 'JUST BELOW' ESTIMATES OF NEUTRAL; GREAT DEAL TO LIKE ABOUT THE US ECONOMY - PREPARED REMARKS AT NY ECONOMIC CLUB
(US) Association of American Railroads weekly rail traffic report for week ending Nov 24th: 470.9K, +3% y/y
(CN) US Trade Rep Lighthizer: China has yet to offer meaningful proposals; Chinese policies on auto tariffs are egregious

THURSDAY 11/29
(IT) Italy PM Conte said to be seeking to cut budget deficit target to 2.2%; 'optimistic' country could avoid Excessive Debt Procedure - Stampa
(DE) GERMANY NOV UNEMPLOYMENT CHANGE: -16K V -10KE; UNEMPLOYMENT CLAIMS RATE: 5.0% V 5.1%E (fresh post German reunification record low)
(EU) EURO ZONE NOV BUSINESS CLIMATE INDICATOR: 1.09 V 0.96E; CONSUMER CONFIDENCE: -3.9 V -3.9E
WTI crude trades below $50 mark for first time in more than 1-year
(US) OCT PERSONAL INCOME: 0.5% V 0.4%E; PERSONAL SPENDING: 0.6% V 0.4%E
(US) Former Pres Trump attorney Michael Cohen to plead guilty to making false statements to congressional committees investigating Russian collusion - ABC News
(US) Atlanta Fed raises Q4 GDP forecast to 2.6% from 2.5% prior
(CN) US and China reportedly considering deal to de-escalate trade disputes; likely would focus on delaying US tariffs in return for China policy modifications on farm and energy product restrictions - press
(US) FOMC MINUTES FROM NOV 8TH MEETING: ALMOST ALL SEE ANOTHER RATE INCREASE WARRANTED 'FAIRLY SOON'; FUTURE POLICY STATEMENTS TO EMPHASIZE IMPORTANCE OF INCOMING DATA
(CN) CHINA NOV MANUFACTURING PMI: 50.0 V 50.2E (lowest since July 2016); NON-MANUFACTURING: 53.4 V 53.8E
(CN) China Finance Ministry (MOF): Confirms to adjust cross-border e-commerce import tax from 2019; to raise the annual cross border quota for individuals to CNY26K from CNY20K, effective Jan 1st 2019

FRIDAY 11/30
(EU) EURO ZONE NOV ADVANCE CPI ESTIMATE Y/Y: 2.0% V 2.0%E; CPI CORE Y/Y: 1.0% V 1.1%E
MAR Announces Starwood guest reservation database security incident involving 500M guests
(CN) China Director of International Affairs Wang Xiaolong: the points of consensus between the US and China are rising, though some areas of disagreement remain as trade talks continue - press

Week in Review: Stock Market Rallies with Optimism Surrounding Fed and U.S.-Chin

Week in Review: Stock Market Rallies with Optimism Surrounding Fed and U.S.-China Trade Relations

The S&P 500 rallied 4.9% this week, helped by the Fed softening its policy stance and by hope that U.S-China trade tensions would be meaningfully eased at the G-20 Leaders Summit. For the month, the benchmark index rose 1.8%.
Meanwhile, the Dow Jones Industrial Average gained 5.2%, the Nasdaq Composite gained 5.6%, and the Russell 2000 gained 3.0%. For the month, the respective indices gained 1.7%, 0.3%, and 1.5%.
The stock market had one of its best days of the year on Wednesday when Federal Reserve Chair Jerome Powell said he sees current interest rates "just below" neutral. That proved to be a rally point because the language Mr. Powell used in early October indicated a view that the fed funds rate was "a long way from neutral."
Mr. Powell added that there is no preset policy path, and the Fed will be data-dependent in its decision making, which pleased investors. By highlighting risks, though, that included previous rate increases, trade disputes, and Brexit/EU political uncertainty, the market chose to read between the lines that the Fed chair isn't wedded to three rate hikes in 2019.
On a related note, the FOMC's minutes from its November 7-8 meeting, which were released on Thursday, did nothing to upset the notion that the Fed will be hiking rates next month; the CME FedWatch Tool puts the chances at 82.7%.
Regarding U.S.-China trade,President Trump and President Xi are to take the G-20's main stage when they discuss trade matters over dinner on Saturday. U.S. Trade Representative Lighthizer said that he would be surprised if the dinner meeting was not a success. Perhaps causing some jitters, though, is the fact that notable China trade hawk Larry Kudlow is reportedly expected to attend the dinner meeting, along with other staff on hand.
A Wall Street Journal report published Thursday is probably as good a preview of what an eventual best-case outcome would be from the G-20 meeting between the two Presidents. The Wall Street Journal noted that (unnamed) officials on both sides have been floating the idea of forestalling any further tariffs through the spring to set the stage for a new round of talks to address changes in China's economic policy.
In addition to the trade speculation and dovish rhetoric from the Fed, there was a positive bias in the market this week due to the belief that the prior week's sell-off resulted in short-term oversold conditions. Efforts to pick up oversold issues, and some chasing behavior, helped fuel this week's gains, which ultimately turned November from a negative month into a positive month for the major indices.
This week, all S&P sectors finished higher with the consumer discretionary (+6.4%), information technology (+6.1%), health care (+5.9%), and communication services (+5.5%) sectors outperforming.
The rally began with the consumer discretionary group rising on the back of continued strength from the U.S. consumer. Reports of record online Black Friday sales and encouraging forecasts for Cyber Monday sales helped lift investor sentiment. The SPDR Retail ETF (XRT) rose 5.1% this week, and Amazon (AMZN) climbed 12.5%.
Conversely, the defensive-oriented real estate (+2.7%), consumer staples (+2.9%), and utility (+2.7%) sectors underperformed the broader market, though still finished with respectable gains.
In corporate news, General Motors (GM) announced additional restructuring plans that will result in a 15% reduction of its salaried staff and the closure of five of its North American plants. President Trump tweeted his disappointment in GM and is looking to cut all of its government subsidies. Separately, United Tech (UTX) announced its intention to split into three independent companies after the Dow component acquired Rockwell Collins earlier this month.
On the earnings front, Salesforce (CRM), Burlington Stores (BURL), Dollar Tree (DLTR), VMware (VMW), HP (HPQ), and Workday (WDAY) released upbeat reports, while Tiffany & Co (TIF), GameStop (GME), and J.M. Smucker (SJM) disappointed investors.
Looking at other markets, the Treasury yield curve saw some flattening with the 2-yr yield losing one basis point to 2.81%, and the 10-yr yield losing four basis points to 3.01%. The U.S. Dollar Index increased by 0.3% to 97.20, and WTI crude added 0.1% to $50.67/bbl, though lost over 20.0% this month.
Overseas, equity indices in the Asia-Pacific region closed the week on a modestly positive note with Japan's Nikkei (+3.3%) showing relative strength. In Europe, the major indices closed the week slightly higher with Italy's MIB (+2.5%) showing relative strength.

>>> US Close Dow +0.79% S&P +0.82% Nasdaq +0.79% Russell +0.52% VIX -3.83%

Closing Market Summary: Stocks Climb Ahead of G-20 Meeting Between Trump, Xi

The S&P 500 finished strong with a gain of 0.8% on Friday to conclude one of its best weeks of the year. Investors turned their attention to the highly-anticipated G-20 Leaders Summit in Argentina, where U.S. President Trump and China President Xi are expected to take the main stage at a dinner meeting on Saturday.

The Dow Jones Industrial Average gained 0.8%, the Nasdaq Composite gained 0.8%, and the Russell 2000 gained 0.5%.

The major indices hovered near their flat lines in afternoon trading before a Reuters report indicated a Chinese official saying that there are points of consensus between the U.S. and China on trade. Though, some disagreements remain. With that in mind, there seems to be a consensus building around the idea that the best one can hope for is a mutual agreement to forestall further tariff actions for several months so that further talks can be conducted to address trade policy issues.

U.S. Trade Representative Lighthizer spurred some optimism Friday morning when he said he would be surprised if the dinner meeting was not a success. He added it is entirely up to the two Presidents if a deal will be made, though.

10 of the 11 S&P sectors finished in the green on Friday with the utilities (+1.5%), health care (+1.1%), and information technology (+1.1%) sectors outperforming the broader market. 

Chip stocks also outperformed, evidenced by the Philadelphia Semiconductor Index rising 1.5%, to help lift the heavily-weighted information technology sector. NVIDIA (NVDA 163.43, +6.07, +3.9%) led chip stocks higher, though Apple (AAPL 178.58, -0.97, -0.5%) was unable to gain traction, eventually losing its status as the S&P 500's largest company by market cap to Microsoft (MSFT 110.89, +0.70, +0.6%).

Some positive earnings reports from tech companies HP (HPQ 23.00, +0.14, +0.6%), VMware (VMW 166.17, +4.69, +2.9%), and Workday (WDAY 164.00, +18.70, +12.9%) also contributed to the sector's advance. Workday and VMware beat both top and bottom line estimates, and HP beat revenue estimates. Workday also raised its fiscal 2019 subscription revenue outlook.

Transport stocks had a great day with the Dow Jones Transportation Average rising 1.3%. With oil and its derivatives factoring heavily in their cost of operations, transport issues reacted favorably to the decline in oil prices and were a leadership area in November. The average finished with a monthly gain of 6.2%.

On the other hand, the energy (-0.2%), materials (+0.4%), and communication services (+0.4%) sectors underperformed the broader market.

In other corporate news, General Electric (GE 7.50, -0.44) and Marriott (MAR 115.03, -6.81) lost 5.5% and 5.6%, respectively, amid some negative occurrences. A WSJ report indicated that General Electric ignored insurance risks, according to some former employees. Deutsche Bank also lowered its GE price target to $7. Separately, Marriott announced a data breach involving its guest reservation database for its Starwood-branded hotels.

Separately, the U.S. Treasury yield curve saw some flattening with the 2-yr yield adding one basis point to 2.81%, and the 10-yr yield losing three basis points to 3.01%. Also, the U.S. Dollar Index rose 0.4% to 97.20, and WTI crude lost 1.6% to $50.65/bbl, weighing on the oil-sensitive energy group.

Reviewing Friday's economic data, which only included the Chicago PMI for November:

  • The MNI Chicago Business Barometer, popularly referred to as the Chicago PMI, surged to 66.4 in November (consensus 58.0) from 58.4 in October. The November reading is an 11-month high.
    • The key takeaway from the report is that it was fuelled by a big uptick in the New Orders Index, which hit its highest level since May 2014. The strength in new orders is an encouraging sign of robust manufacturing demand for the Chicago Fed region.

Looking ahead, investors will receive the ISM Index for November and Construction Spending for October on Monday.

  • Nasdaq Composite +6.2% YTD
  • Dow Jones Industrial Average +3.3% YTD
  • S&P 500 +3.2% YTD
  • Russell 2000 -0.2% YTD

WSJ : Oil Suffers Worst Monthly Drop Since 2008

Oil Suffers Worst Monthly Drop Since 2008
Crude prices take hit Friday amid fresh doubts about Russia’s commitment to cut production

Oil prices resumed a months-long slide on Friday, briefly dipping below $50 a barrel on fresh doubts about Russia’s commitment to cut crude production.

U.S. crude prices notched their biggest one-month percentage loss since October 2008, down 22% in November. Light, sweet crude for January delivery settled 1% lower at $50.93 a barrel on the New York Mercantile Exchange, and traded as low as $49.65 before recouping some losses. Brent, the global benchmark, declined 1.3% to $58.71, closing at a fresh one-year low.

Prices have tumbled in recent weeks on strong production from major oil exporters and worries that supply will overtake weakening demand.

The Russian energy ministry reportedly said that the Organization of the Petroleum Exporting Countries and its partner producers outside the cartel—led by Russia—were comfortable with current oil price levels, according to Russia’s Tass news agency.

That raised fears that Russia could oppose a production cut when OPEC and its allies gather in Vienna next week. On Friday, The Wall Street Journal reported that an OPEC economic panel recommended cutting total output by 1.3 million barrels a day from October levels.

“The market is expecting a deal,” said Amrita Sen, chief oil analyst at Energy Aspects.”I think OPEC knows that there will be an imminent oversupply if they don’t cut. But the deal isn’t done yet.”

On Thursday, reports that suggested Russian officials were likely to cut output in tandem with OPEC next week buoyed prices.

The report is a reversal from a Reuters story Thursday that suggested Russian officials were likely to cut output in tandem with OPEC next week, news that had buoyed prices.

The back-and-forth is a “strategy Russia has employed” to keep markets guessing, said Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas. “There will be no clarity until the OPEC meeting.”

Oil market observers continue to look at ahead to OPEC-led meetings in Vienna next week. Pressure is mounting on Saudi Arabia, the-de-facto head of OPEC, and allies like Russia to implement a new production cut to rebalance an oversupplied market and bolster crude prices. Traders are also watching the Group of 20 nations summit this weekend for clues to a potential deal.

Giovanni Staunovo, commodities analyst at UBS Wealth Management, said in a Friday note that the market is expecting a cut of at least one million barrels a day. “This should enable oil prices to stabilize and recover firmly in 2019,” Mr. Staunovo said.

If OPEC cuts by less than expected, that could trigger another slide below $50, analysts said.

The U.S. is also producing more oil than ever, which has weighed on the global market. The U.S. Energy Information Administration said that domestic oil output rose to 11.5 million barrels a day in September, up from 11.4 million barrels a day in August, and 21% higher than levels one year ago. U.S. stockpiles have risen for 10 consecutive weeks, government data show.

“U.S. growth is huge. It’s dwarfed pretty much everybody’s expectations this year,” said Doug King, chief investment officer of the $140 million Merchant Commodity hedge fund. “That’s a pretty tough thing to stomach.”

The influx of supply from the U.S. has put more pressure on OPEC and non-OPEC producers to curb output next year, he added.

“I think OPEC has got a lot of issues. If it cuts, all it does is it keeps prices around here,” Mr. King said. “There’s a real risk that the market goes lower, and possibly a long way lower in the next six months.”

WSJ : New York Hedge Fund Brenner West to Close

New York Hedge Fund Brenner West to Close
Stock-focused fund is latest to call it quits in a string of recent shutdowns

Brenner West Capital Partners is closing after 13 years in business, according to people familiar with the matter, the latest hedge fund to close in a tumultuous year for the industry.

The New York-based fund was founded in 2005. The firm, which invested primarily in value stocks, is owned by Craig Nerenberg and Joshua Kaufman, according to a regulatory filing. The fund gained about 24% last year, some of the people familiar with the fund said.

Brenner West’s more recent performance wasn’t immediately known. The firm managed more than $900 million, according to a regulatory filing in March.

The closure is just the latest in a string of recent shutdowns.

Earlier Friday, Dallas-based hedge fund Brenham Capital told clients it was closing, a casualty of what founder John Labanowski called “some truly bizarre stock action” in the energy stocks the fund traded.

Last month, three funds announced their closures in less than a week. They included Tourbillon Capital Partners LP, Highfields Capital Management and Criterion Capital Management.

The closures marked the latest in a multiyear re-evaluation of hedge funds by fund managers and their investors.

Some funds have closed amid rising skepticism about the value of paying hedge funds’ high fees. Hedge funds often charge a 2% management fee and take a 20% cut of performance gains. Other funds have been hurt by poor performance relative to a stock market that has notched nearly a decade of gains.

NY Post : Danone is struggling to sell its Earthbound Farms unit

Danone is struggling to sell its Earthbound Farms unit

Danone is finding it difficult to sell its Earthbound Farms business, showing that Campbell is not the only one that’s struggling to unload an organic grower.

France-based yogurt seller Danone has been trying since June to sell Earthbound Farms, a 47,000-acre organic vegetable and lettuce farm in California, according to a source.

Earthbound went from generating $70 million in Ebitda a few years ago to having negative Ebitda now, the source said. “It is losing money and getting little interest,” a source close to the JPMorgan-run auction said.

WhiteWave Foods in 2013 paid $600 million for Earthbound, and then Danone in 2017 bought WhiteWave for $12.5 billion.

The Earthbound auction is happening as Campbell is finding little interest among potential buyers for similar money-losing business Bolthouse Farms, as The Post reported exclusively Thursday.

Danone declined to comment.

FT : Saudi crown prince comes out of the cold at G20

Saudi crown prince comes out of the cold at G20
Mohammed bin Salman escapes diplomatic isolation over the Khashoggi murder

He received a minor rebuke from Emmanuel Macron but a big friendly handshake from Vladimir Putin. He secured bilateral meetings with Theresa May and Narendra Modi.

Mohammed bin Salman, the Saudi crown prince accused of a key role in the murder of journalist Jamal Khashoggi in October, was all smiles at the opening of the G20 summit in Buenos Aires, as his bet that he could escape diplomatic isolation and even enjoy some sort of international rehabilitation appeared to pay off. 

Prince Mohammed was the most contentious guest of President Mauricio Macri of Argentina at the gathering of world leaders. There has been widespread outrage at the assassination of a critic of the Saudi regime and Riyadh’s attempts to cover up the murder, which was carried out by a hit squad in its consulate in Turkey. But at the G20, the heads of the most powerful countries seemed to be adjusting to the reality that Prince Mohammed still enjoys strong support from his father, the king, as well as regional allies.

Mr Putin, the Russian president, has been among his biggest supporters all along. As he sat next to Prince Mohammed around the main table of the summit, he gave the Saudi leader a generous handshake as the two men enjoyed a lengthy chuckle. The crown prince then patted Mr Putin’s hand three times. 

A friendly welcome from Mr Putin might have been expected, but the engagement from some EU leaders was more surprising. Mr Macron, the French president, briefly cornered Prince Mohammed as the summit was set to begin to deliver what the Elysée described as a “very firm” message: that Saudi Arabia should accept international experts in the probe of Khashoggi’s murder.

But a video clip of the exchange showed a testy but not entirely hostile conversation. The crown prince is heard trying to reassure Mr Macron, saying: “Don’t worry.” The French president replied: “I do worry. I am worried.”

Mr Macron then complained, “You never listen to me”, to which Prince Mohammed answered, “No, I will listen of course.”

In advance of the G20, the crown prince had already received a boost from President Donald Trump, who had issued a statement extolling the importance of America’s relationship with Saudi Arabia and suggesting there was still doubt over Prince Mohammed’s involvement in the murder of Khashoggi. But there was no bilateral meeting scheduled between Mr Trump and the crown prince. 

A senior White House official said Mr Trump and the crown prince “exchanged pleasantries” at the leaders session.

Prince Mohammed did, however, set up formal encounters with both Mr Modi, the Indian prime minister, and Mrs May. The British prime minister promised to be “robust” on both Khashoggi and the Saudi-led war in Yemen, which has created a huge humanitarian crisis, and not to talk to the prince about trade opportunities, a usual UK priority in the context of Brexit.

UN-backed talks on the Yemeni conflict are due to take place next week. “We believe that now is the time, there is an opportunity to find a solution,” Mrs May told Sky News, before the meeting. An official UK summary of the meeting said she had “urged concrete Saudi support for UN special envoy Martin Griffiths and for progress at the upcoming Stockholm talks”.

Prince Mohammed’s reception contrasts with that of Mr Putin himself, whose meeting with Mr Trump was cancelled after Russian forces fired on Ukrainian ships. Mrs May has also refused to meet Mr Putin following the Salisbury chemical attack this year.

In the official “family” picture of the G20 Prince Mohammed had towered behind Brazil's outgoing president, Michel Temer, while some of his mandarins were roving around cheerfully at the convention centre on the banks of the River Plate. His arrival in Argentina had been overshadowed by a complaint by Human Rights Watch, the non-governmental organisation, which asked an Argentine federal prosecutor to take his alleged involvement in war crimes and torture. But Argentine officials were quick to point out that it would need to go to the Supreme Court and he enjoyed diplomatic immunity, which Human Rights Watch disputes. 

Meanwhile, in a plush area of Buenos Aires, a lone protester stood outside the closely guarded Saudi embassy facing local security forces. The man, who identified himself as “Jamal” in honour of Khashoggi, felt it was “ironic” that the embassy was fenced to protect Saudi officials when “the real murderers” were staying inside. 

“The world presidents participating in this conference have turned a blind eye to what happened,” the man said.