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☆ Lindsey Graham chatted and smiled with Saudi Arabia's crown prince, who he previously called an 'unhinged' murderer he'd never work with
▼ + stars: | 2023-04-12 | by ( Tom Porter | ) www.businessinsider.com time to read: +3 min

South Carolina Sen. Lindsey Graham was pictured meeting Saudi Arabia's Mohammed bin Salman. In a tweet Tuesday, Graham said he had just had a "very productive, candid meeting with the Saudi Crown Prince and his senior leadership team. "This guy has got to go," Graham said in a 2018 Fox News interview, and said the crown prince had Khashoggi "murdered." "Saudi Arabia, if you're listening, there are a lot of good people you can choose," Graham said. President Joe Biden had pledged to make the crown prince a "pariah" while seeking election in 2020, but as president has instead chosen to maintain an alliance.

The de facto leader of the world’s main oil producer club sent crude prices spiking on Monday after proposing a further cut to crude production. Bank collapses on both sides of the Atlantic sent oil prices down by 15% to $73 a barrel in March. More importantly, while a Chinese post-Covid demand recovery should boost oil prices, it’s not totally clear by how much. Unlike Europe and the U.S., Chinese oil consumption is more led by industry than travel, and the former has yet to properly pick up. The U.S. administration said on April 2 the surprise oil output cuts were not “advisable”.

☆ Analysis: Saudi crown prince acts to realign Mideast dynamics amid concern over US support
▼ + stars: | 2023-04-03 | by ( Aziz El Yaakoubi | ) www.reuters.com time to read: +7 min

"Saudi Arabia is moving from disengagement towards engagement to allow it to focus on pushing ahead on Vision 2030," said Saudi analyst Abdulaziz Sager. A Saudi official said the United States and China are both very important partners for Riyadh. Washington and Riyadh are working on addressing common security challenges, he said. "The Saudis don’t want to be in a shooting war between Iran and the United States. Shadi Hamid of the Brookings Institution in Washington said Saudi Arabia's view that the U.S. is increasingly disengaged from the region is not entirely wrong.

☆ Saudi money is flowing to US media and entertainment, from Live Nation to LIV Golf, 5 years after Jamal Khashoggi's murder: 'The ice has thawed'
▼ + stars: | 2023-04-03 | by ( Claire Atkinson | Lucia Moses | ) www.businessinsider.com time to read: +20 min

Sovereign funds and other entities in Saudi Arabia, Qatar, and the UAE are pouring millions into US media and entertainment. Insider identified some key people connecting Middle East investors with American companies. Saudi Arabia is trying to pitch itself to the world as a cultural and economic reformer and spur tourism. Vince McMahon's WWE has a long-term partnership with the Kingdom of Saudi Arabia, with a major live WWE event there slated for May. Vince McMahon's WWE was one of the first US companies to create unique events in Saudi Arabia.

The Federal Reserve slows inflation by raising the federal funds rate, which can indirectly impact mortgages. The Fed and mortgage rates frequently asked questionsDo mortgage rates go up when the Fed raises rates? Mortgage rates may decrease when the Fed cuts the federal funds rate, but again, this depends on other economic trends. No, mortgage rates aren't tied to the Federal Reserve's federal funds rate. If you have a fixed-rate mortgage, your mortgage rate will stay the same until you sell your home, refinance your mortgage, or pay off the loan in full.

☆ Explainer: What are credit default swaps and why are they causing trouble for Europe's banks?
▼ + stars: | 2023-03-28 | by ( Amanda Cooper | ) www.reuters.com time to read: +6 min

LONDON, March 28 (Reuters) - Turbulence in Europe's banks following the implosion of 167-year-old Credit Suisse (CSGN.S) and runs on regional banks in the U.S. has focused attention on the role played by credit default swaps in all the turmoil. The moves followed a surge in the cost of insuring Deutsche Bank's debt against default via credit default swaps (CDS) to a more than four-year high last week. Credit default swaps are derivatives that offer insurance against the risk of a bond issuer - such as a company, a bank or a sovereign government - not paying their creditors. The CDS market is worth around $3.8 trillion, according to the International Swaps and Derivatives Association. The CDS market is small relative to equities, foreign exchange or the global bond markets, where there are more than $120 trillion bonds outstanding.

☆ Mortgage demand increases again, but interest rates are rising
▼ + stars: | 2023-03-22 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage demand has increased for three straight weeks now, as interest rates dropped in response to the recent bank failures. "However, mortgage rates have not dropped as much as Treasury rates due to increased MBS market volatility." Refinance demand is highly sensitive to weekly rate moves, but there are precious few borrowers right now who can still benefit from a refinance at today's higher interest rates. Today's homebuyers may be less influenced by weekly interest rate moves and more influenced by the state of the economy. Mortgage rates don't follow the Fed exactly, but they do respond to its perception of the overall economy.

☆ Saudi money is pouring into Hollywood and media, 5 years after the murder of Jamal Khashoggi. Here's who's cashing in and how.
▼ + stars: | 2023-03-15 | by ( Claire Atkinson | Lucia Moses | ) www.businessinsider.com time to read: +13 min

Sovereign funds and other entities in Saudi Arabia, Qatar, and the UAE are pouring millions into US media and entertainment. Saudi Arabia is trying to pitch itself to the world as a cultural and economic reformer and spur tourism. Even those media players that are comfortable with invetment from the Middle East may not find funds flowing, one Hollywood veteran said. A major live WWE event in Saudi Arabia is slated for May. Of the growing ties between US entertainment and media and Middle East investors, this person added, "Presumably media organizations got into this to help society make better decisions."

☆ VIEW US intervenes to shore up SVB deposits, stem financial fallout
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +10 min

March 13 (Reuters) - The U.S. government announced actions to shore up deposits and stem any broader financial fallout from the sudden collapse of tech startup-focused lender Silicon Valley Bank (SIVB.O) (SVB), sending U.S. stock futures higher. "The market turbulence sparked by SVB has upended rising market expectations on the Fed rate path. The fact that SVB and Signature Bank depositors will be made whole is critical in maintaining trust in the financial system and should help stem contagion fears this week. But it also means that 50 basis points (a possible Fed interest rate hike) is off the table." Given what's happened in the U.S. financial system, a 25 basis point hike is more likely than a 50 basis point hike."

☆ Instant view: US intervenes to shore up SVB deposits, limit financial fallout
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +11 min

March 13 (Reuters) - The U.S. government announced actions to shore up deposits and stem any broader financial fallout from the sudden collapse of tech startup-focused lender Silicon Valley Bank (SIVB.O) (SVB), sending U.S. stock futures higher. ALVIN TAN, HEAD OF ASIA FX STRATEGY, RBC CAPITAL MARKETS, SINGAPORE:"Markets remain unsettled from the SVB failure. "The market turbulence sparked by SVB has upended rising market expectations on the Fed rate path. ANTHONY SAGLIMBENE, CHIEF MARKET STRATEGIST, AMERIPRISE FINANCIAL, TROY, MICHIGAN:"It was imperative that regulators stepped in and decisively acted before markets around the world opened for the week. GREG MCBRIDE, CHIEF FINANCIAL ANALYST, BANKRATE:"While the Fed has talked about a lot in the past year, until today it has been in the context of monetary policy.

☆ Saudi Arabia making peace with Iran in a deal brokered by China is a 'middle finger to Biden'
▼ + stars: | 2023-03-10 | by ( John Haltiwanger | ) www.businessinsider.com time to read: +5 min

Iran and Saudi Arabia have agreed to restore diplomatic relations in a deal brokered by China. The US and Saudi Arabia have a close relationship and have been security partners for years. Saudi Arabia ultimately moved to cut oil production instead, which was viewed as a diplomatic embarrassment for the Biden administration and sparked outrage in Congress. Bandar Algaloud/ReutersThe deal also comes as the US contends with historic tensions with both Iran and China. The agreement also has the potential to throw a wrench in efforts to normalize relations between Saudi Arabia and Israel, given the latter and Iran are longtime enemies.

☆ Analysts downgrade SVB Financial as uncertainty around tech-focused bank looms
▼ + stars: | 2023-03-10 | by ( Hakyung Kim | ) www.cnbc.com time to read: +4 min

Several Wall Street research firms downgraded SVB Financial after shares of the tech-focused bank plunged more than 60% during the previous trading session. King also lowered his price target to $100 from $174, which implies a 6% decline from Thursday's close price. The analyst expressed concern that the proposed capital raise would potentially be followed by more in the future. Long also removed his price target, which was previously $375. It had previously issued an outperform rating and price target of $360 per share.

☆ Investors share strategies to beat interest rate fears — including one that trumped the 60/40 model
▼ + stars: | 2023-03-09 | by ( Weizhen Tan | ) www.cnbc.com time to read: +4 min

Markets are jittery now that fears that interest rates will stay higher for longer have been reignited . These are BlackRock's recommendations: Short-duration fixed income: iShares 0-3 Month Treasury Bond ETF, iShares Short Treasury Bond ETF, and iShares Treasury Floating Rate Bond ETF. Longer-duration fixed income: iShares TIPS Bond ETF, iShares Core U.S. Aggregate Bond ETF and iShares MBS ETF. "While we do not suggest investors abandon stocks all together, in a "higher for longer" environment, we believe investors should gravitate towards value-style stocks," Chaudhuri said.

☆ 'All these tiny ticking time bombs' are threatening the market, and the coming week could deliver a big shock, trading legend Art Cashin says
▼ + stars: | 2023-03-04 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

Investors aren't paying enough attention to the risk of quantitative easing, Art Cashin told CNBC. Meanwhile, the Bank of Japan could signal a big shift soon that would also send yields higher. In September, that went up to $60 billion for Treasurys and $35 billion for MBS. And if the 10-year yield goes above 4.10%, that will put pressure on markets and cause stocks to retest lows, Cashin said. Signs of more inflationary pressures in the country may trigger a policy reversal, with Bank of Japan members meeting Thursday and Friday.

☆ Trump and Kushner's Saudi Ties Are an Ethical Minefield: Watchdog
▼ + stars: | 2023-02-15 | by ( Charles R. Davis | ) www.businessinsider.com time to read: +12 min

Weeks after leaving office, Jared Kushner obtained a $2 billion investment from the Saudi government. The Saudi support came despite the kingdom's own financial advisers urging against any investment in Kushner's new company, citing the "inexperience" of its top brass. Let's start with Jared Kushner before we get into the LIV Golf situation. You have John Bolton, Trump's own national security advisor, making it very clear that you had somebody, like Jared — and President Trump, apparently — working to promote their business interests. Trump, not only did he keep his company, the Trump Organization, but he's a transactional president, right?

☆ Jared Kushner's private equity firm concealed the origins of Saudi-backed funds and used the SEC's own rules to help them do it, report says
▼ + stars: | 2023-02-13 | by ( Hannah Getahun | ) www.businessinsider.com time to read: +5 min

In April 2022, The New York Times reported Jared Kushner received $2.5 billion in Saudi-backed funds. A new Washington Post report reveals how Kushner's company concealed the source of the funds. On an SEC form, a box reading "Sovereign wealth funds and foreign official institutions" was blank. In the form, Kushner lists Affinity as an "other business name." Kushner and his father-in-law, Trump, have received a fair share of scrutiny for their ties to the Saudi prince and his allies.

☆ Goldman Asset Management sees the best opportunity for bond investors in a decade. How to play it
▼ + stars: | 2023-02-07 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

There's good news for fixed-income investors this year, according to Goldman Sachs Asset Management. This year, inflation and the pace of monetary tightening will slow down, along with economic growth, Goldman said. We believe the sharp rise in yields in 2022 presents fixed income investors with the most attractive income and total return potential in more than a decade," they said. Goldman Sachs says it manages $1 trillion in fixed-income assets. Near term, Goldman Sachs Asset Management favors short-duration and high-quality fixed-income assets such as investment-grade credit and agency mortgage-backed securities (MBS).

The Fed currently holds about $2.6 trillion of MBS as part of its roughly $8 trillion securities portfolio. That is about a quarter of the total MBS market, what George referred to as an "enormous" share that raises questions about the appropriate extent of the central bank's presence. In theory, that puts upward pressure on long-term interest rates by lowering demand for those assets. George said she did not have a specific plan in mind, but felt her colleagues should get to work on one. More important than the details of any plan "is just to say how will we go about doing that earlier rather than later.

☆ Fed can likely slow runoff as bank reserves near 10% to 11% of GDP
▼ + stars: | 2023-01-20 | by ( ) www.reuters.com time to read: +1 min

Jan 20 (Reuters) - The Federal Reserve can probably start to slow its balance sheet runoff once bank reserves fall to around 10% or 11% of gross domestic product, Fed Governor Christopher Waller said on Friday. "We'll start slowing as we approach maybe reserves being 10% to 11% of GDP," Waller said at a Council of Foreign Relations event in New York. Those reserves and repurchase agreements currently total just over $5.6 trillion, roughly around 22% of gross domestic product as of the third quarter of last year. The Fed is reducing its holdings of Treasuries by up to $60 billion a month, and its MBS holdings by up to $35 billion per month. That process will need to stop once the Fed determines the amount of reserves banks need to hold.

☆ Neom: Saudi Arabia's $500 billion bet to build a futuristic city
▼ + stars: | 2023-01-13 | by ( Anuz Thapa | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNeom: Saudi Arabia's $500 billion bet to build a futuristic citySaudi Arabia is building a futuristic city, Neom, in its desert from scratch. A vital element of the country's Vision 2030 plan, the project is Saudi's de facto leader, Crown Prince Mohammed Bin Salman, a.k.a. MBS's brainchild. The project plans to cover an area of more than 10,000 square miles, about the same size as Massachusetts, costing $500 billion. Watch the video above to find out why MBS is betting on this city.

☆ Saudi Arabia's $500 billion bet to build a futuristic city in the desert
▼ + stars: | 2023-01-13 | by ( Anuz Thapa | ) www.cnbc.com time to read: +1 min

Saudi Arabia is building a futuristic city in the middle of a vast desert— from scratch. A vital element of the country's Vision 2030 plan, the project is the brainchild of Saudi's de facto leader, Crown Prince Mohammed bin Salman, also known as MBS. "Neom is a mega project seen in Saudi Arabia and the young Saudi population as part of this liberalization process." The Neom project is far from without controversy, though. It also is being seen by some as a way to distract attention from Saudi Arabia's human rights record.

☆ Analysis: Fed's balance sheet drawdown could sunset next year
▼ + stars: | 2022-12-22 | by ( Michael S. Derby | ) www.reuters.com time to read: +5 min

Analysts at investment bank Nomura see the Fed ending the balance sheet run-off in September of next year. The balance sheet drawdown, meanwhile, has been designed to run more or less on autopilot, in the background. Reuters GraphicsNomura said the U.S. central bank will likely get its balance sheet down to around $7 trillion, well above the pre-pandemic level. Reductions in the Fed balance sheet withdraw bank reserves from the system, in a regime that's dominated by many moving parts, swirling around each other unpredictably. It's something the Fed faced in September 2019, when it was in its latest chapter of balance sheet contraction.

☆ UAE will look to a world beyond OPEC
▼ + stars: | 2022-12-19 | by ( George Hay | ) www.reuters.com time to read: +3 min

The UAE has chafed at OPEC restrictions before, in 2020 and 2021. OPEC’s alliance with Russia, as part of the wider OPEC+ group, similarly risks lumping its members in with a wider anti-Western bloc. But ADNOC’s accelerated oil production timetable is arguably more in keeping with a different outlook, preferred by the International Energy Agency, whereby oil demand peaks much sooner. If MbZ were to use the COP28 conference to make that more explicit, it could push the UAE further away from OPEC. And quitting OPEC to pump more oil would be awkward while hosting a climate conference.

☆ Saudi Arabia and China will align on everything from security to oil, but agree not to interfere on domestic issues
▼ + stars: | 2022-12-09 | by ( Nadeen Ebrahim | ) edition.cnn.com time to read: +6 min

Riyadh and Beijing were keen to stress “the importance of stability in the world oil markets,” noting that Saudi Arabia is a reliable exporter of crude oil to its Chinese partner. China also affirmed its “opposition to any actions that would interfere in the internal affairs of the Kingdom of Saudi Arabia,” without adding more details. On Friday, Xi invited Saudi King Salman bin Abdulaziz Al-Saud to visit China, according to Saudi state TV. President Xi was given a warm welcome in Saudi Arabia with ceremonies on Thursday. Saudi Arabia “is pursuing a multipolar strategy of strong strategic ties,” added Shihabi.

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