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☆ UAE to set up investment ministry, PM says
▼ + stars: | 2023-07-03 | by ( ) www.reuters.com time to read: +2 min

DUBAI, July 3 (Reuters) - The United Arab Emirates (UAE) will set up a new federal ministry of investment to develop the Gulf state's investment strategy both globally and domestically as it contends with growing economic competition from neighbours. The Gulf states, largely dependent on hydrocarbons for revenue, all have plans underway to diversify their economies and sources of income. The ministry's aims would include stimulating the investment environment in the UAE and to make the UAE's legislation and procedures more competitive to attract global investment, Sheikh Mohammed said. The UAE will also set up a Financial Stability Council to monitor risks, and deal with financial crises to further its objectives of becoming a major global financial centre. Foreign direct investment into Saudi Arabia was about 30 billion riyals ($8 billion), based on data from the Saudi investment ministry.

Persons: Sheikh Mohammed bin Rashid al, Mohammed Hassan Al Suwaidi, Sheikh Mohammed said, Sheikh Mohammed, Rachna Uppal, Nayera Abdallah, David Goodman, Jane Merriman Organizations: United Arab Emirates, Twitter, Thomson Locations: DUBAI, UAE, Maktoum, Dubai, Saudi Arabia, Saudi

It is not the end of our relationship with the IMF though, as the SBA is a short-term bridging operation. GARETH LEATHER, SENIOR ASIA ECONOMIST AT CAPITAL ECONOMICS, LONDON"The agreement of a loan deal between Pakistan and the IMF should put the economy back on a more secure footing and limit the biggest downside risks. There is a strong risk that Pakistan reneges on the deal once the immediate crisis has passed. Our target shall be that the next IMF programme should be the last one and it would be a great opportunity to correct our fiscal account once and for all." "Things would have been much better if successive governments would have invested in completing the IMF programme.

Persons: MURTAZA SYED, GARETH, Shehbaz Sharif, ABDUL ALEEM, SHERANI, SHAHBAZ ASHRAF, MAHA RAHMAN, ZAFAR MASUD, MUSTAFA PASHA, SHAHID HABIB, ARIF HABIB, ZULQARNAIN, MOHAMMED SOHAIL, AHFAZ MUSTAFA, ISMAIL IQBAL, SAJID AMIN JAVED, Ariba Shahid, Shilpa Jamkhandikar, Raju Gopalakrishnan Organizations: Monetary Fund, South, IMF, BANK OF PAKISTAN, SBA, State Bank, EFF, Capital, UL HAQ, OF PUNJAB, Pakistan, ARIF, Thomson Locations: Pakistan, ASIA, KARACHI, ISLAMABAD, LAHORE, PAKISTAN

Kenyan shipments of tea - its major export - have fallen by a fifth over the last year, according to the local regulator. The spike in global interest rates has already tipped Sri Lanka and Ghana into defaulting. Reuters GraphicsBLACK MARKETAlthough the dollar's share as a global reserve currency has dropped to 59% from 70% over a decade, it continues to dominate global trade. Nigeria has long had a web of multiple exchange rates which it is now trying to untangle, having also devalued its naira currency again last week. A plunge of around 70% in Bolivia's reserves has spawned queues at banks and currency exchange shops as some merchants stopped accepting local currency.

Persons: Wilson Muthaura, KTDA, Charlie Robertson, Muthaura, David Willacy, Ojo, Chaucer, Ronal, Luiz Inacio Lula da Silva, Kristalina Georgieva, William Ruto, Duncan Miriri, Marc Jones, Macdonald Dzirutwe, Monica Machicao, Mayela Armas, David Sherwood, Catherine Evans Organizations: Bank, FIM Partners, Reuters Graphics, Workers, REUTERS, La Paz, West, Reuters, JPMorgan, Monetary Fund, IMF, Fund, Thomson Locations: NAIROBI, LONDON, Pakistan, COVID, Russia, Ukraine, London, Islamabad, Egypt, Sri Lanka, Ghana, Tunisia, teetering, Nigeria, Kenya, StoneX, Nigeria's, Lagos, British, Cuba, Venezuela, Githunguri, Kiambu County, United States, Lebanon, Turkey, Ethiopia, China, India, Johannesburg, Saudi Arabia, Africa, Argentina, Nairobi, La Paz, Caracas, Havana

☆ Asia pushes back on 'excessive' currency moves amid enduring dollar strength
▼ + stars: | 2023-06-29 | by ( Clement Tan | ) www.cnbc.com time to read: +5 min

Japan finance officials have warned all this week against the "excessive" depreciation of the Japanese yen . Contrasting moves in the world's major currencies — including the Japanese yen, the Chinese yuan and the U.S. dollar — underscore the variance in domestic interest rates and monetary cycles. Authorities may be buying the Japanese yen "with the rise in USD/JPY set to run further," she added. The Japanese currency was hovering at about 144 against the greenback in Asia trade on Thursday. The central bank allows the currency to trade within a narrow band of 2% from each day's midpoint.

Persons: Sheldon Cooper, Carol Kong, Masato Kanda, Shunichi Suzuki, Philip Wee, Adnan Zaylani, BNM, Goldman Sachs Organizations: People's Bank of, Getty, U.S ., U.S, Commonwealth Bank of Australia, Ministry, Bank of Japan's, Reuters, Finance, DBS, greenback, Japan's Finance, Bank Negara Malaysia, Central Bank Locations: People's Bank of China, Asia, Japan, China, Covid, Ukraine, Malaysian, U.S . Federal, Bank

☆ India's gearing up to be the new China, but even Elon Musk is finding it hard to crack into the market. Here are 5 reasons why.
▼ + stars: | 2023-06-28 | by ( Huileng Tan | ) www.businessinsider.com time to read: +7 min

India has overtaken China as the world's most populous country, and it's pushing for foreign investments. But foreign investors keen to enter the Indian market face various barriers to entry. Earlier this year, India overtook China as the world's most populous country. Among investors keen on investing in India are Tesla and SpaceX CEO Elon Musk, and tech giant Apple. But given the huge Indian market, Tesla isn't giving up.

Persons: —, Narendra Modi's, Elon Musk, Mark Mobius, Modi —, Modi, Musk, Ashutosh Sharma, Forrester, That's, Sharma, India's, Mukesh Ambani Organizations: Service, India, Indian, Tesla, SpaceX, US International Trade Administration, ITA, Bank, World Bank, US, Reliance Industries SpaceX, Reliance, Reuters, Ambani's Locations: India, China

☆ China decoupling would be an act of 'suicide' for Europe, Hungary's foreign minister says
▼ + stars: | 2023-06-27 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +2 min

Thomas Trutschel | Photothek | Getty ImagesHungary's foreign minister said Tuesday that any move to decouple, or even de-risk, from China would be an act of "suicide" for Europe. "Both decoupling and de-risking would be a suicide committed by the European economy," Szijjártó told CNBC's Sam Vadas at the World Economic Forum's annual conference in Tianjin, China. "How could you decouple without killing the European economy?" Péter Szijjártó Foreign Minister of HungaryThe issue is a particularly sensitive balancing act for Europe, which remains deeply reliant on U.S. support in Ukraine but also has critical economic ties with Beijing. China was the largest source of EU imports and the third-largest buyer of EU goods in 2022, according to Eurostat.

Persons: Thomas Trutschel, Péter Szijjártó, Szijjártó, CNBC's Sam Vadas, Péter, Mercedez Organizations: Photothek, Getty, Beijing, Péter Szijjártó, Eurostat, European Union, Amperex Technology, Mercedez Benz, BMW, VW Locations: China, Europe, Tianjin, Beijing, Hungary, Ukraine

☆ India's quarterly current account gap narrows as trade deficit shrinks
▼ + stars: | 2023-06-27 | by ( Swati Bhat | ) www.reuters.com time to read: +2 min

MUMBAI, June 27 (Reuters) - India's current account deficit narrowed sharply in the January to March quarter, helped by a smaller trade gap and increased services exports, the Reserve Bank of India (RBI) said on Wednesday. The current account deficit (CAD) (INCURA=ECI) stood at $1.3 billion, or 0.2% of gross domestic product (GDP), in the fourth quarter of the 2022/23 fiscal year, compared with the previous quarter's revised deficit of $16.8 billion, or 2% of GDP. The deficit had stood at $13.4 billion in the same period a year earlier, the data showed. Forecasts ranged widely, from a deficit of $5 billion to a surplus of $7.8 billion. For the 2022/23 fiscal year the current account balance showed a deficit of 2% of GDP versus a deficit of 1.2% in the preceding financial year as the trade deficit widened to $265.3 billion from $189.5 billion a year earlier.

Persons: Aditi Gupta, Baroda's Gupta, Siddhi Nayak, Sudipto Ganguly, Clarence Fernandez, David Goodman Organizations: Reserve Bank of India, Reuters Graphics, Baroda, Bank, Baroda's, Thomson Locations: MUMBAI

☆ Elon Musk wants to bring Starlink to the Indian market — but he'll have to get around India's richest tycoon first
▼ + stars: | 2023-06-23 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

Elon Musk said he hopes to bring SpaceX's Starlink satellite internet service to India. SpaceX is lobbying the government to assign licenses for satellite services, but Reliance is calling for a public auction. Elon Musk is eyeing the massive Indian market, saying he hopes to bring SpaceX's Starlink satellite internet service into the country after meeting with Prime Minister Narendra Modi earlier this week. Musk told reporters on Tuesday he was keen to launch Starlink in India as the service "can be incredibly helpful" in remote villages, per India's ANI agency. Reliance Jio vs. StarlinkThe two companies have different stances on how the Indian government's satellite broadband spectrum should be distributed, Reuters reported.

Persons: Elon Musk, He's, Mukesh Ambani, Narendra Modi, Musk, Ambani, Tesla, China, Modi —, — Organizations: Asia's, Reliance, SpaceX, Morning, Reliance Industries, He's, Bloomberg, Ambani's Reliance, Reuters, Ambani's, US International Trade Administration, ITA Locations: India, India's, China, Indian

☆ Brexit an 'economic disaster' for UK and German trade - DIHK
▼ + stars: | 2023-06-22 | by ( ) www.reuters.com time to read: +2 min

BERLIN, June 22 (Reuters) - Brexit has been an "economic disaster" for trade and investment ties between the United Kingdom and Germany, leading to a fall in German direct investment and seeing the UK decline in importance as a trading partner, German economists said. "Brexit is an economic disaster for both sides of the channel," Volker Treier, head of foreign trade at the German Chamber of Industry and Commerce (DIHK), told Reuters on Thursday. According to the DIHK, some 2,163 German companies are now active in the UK, 5.2% fewer than in 2016. Germany Trade and Invest (GTAI), an organisation that helps international companies set up business in Germany, has counted more than 1,000 new businesses from the UK since the Brexit vote. Germany's size and central location are an advantage when it comes to attracting UK companies, he added.

Persons: Volker Treier, Treier, Robert Hermann, Rene Wagner, Maria Martinez, Emma Rumney Organizations: European Union, German Chamber of Industry and Commerce, Reuters, Germany Trade, Invest, EU, Thomson Locations: BERLIN, United Kingdom, Germany, Britain, U.S, Switzerland

BEIJING, June 21 (Reuters) - A slowdown in both the Chinese and global economies is the biggest issue affecting European firms in China, beating political tensions with the United States and decoupling, according to the European Chamber of Commerce in China. The number of European firms that see China as a top-three destination for future investment was at its lowest total on record, the chamber's annual position paper released on Wednesday said. As rising interest rates and inflation squeeze demand in Europe and the United States, companies in China are in contrast battling a sharp decline in prices as the risk of deflation weighs on the world's second-largest economy. BASF (BASFn.DE), Maersk (MAERSKb.CO), Siemens (SIEGn.DE), and Volkswagen (VOWG_p.DE) are among the members of the chamber. The chamber's findings, which were based on the views of members from February to early March, revealed that a record number of companies had lost business last year due to market access and regulatory barriers.

Persons: Xi, Ursula von der Leyen, Joe Cash, Angus MacSwan Organizations: European Chamber of Commerce, BASF, Maersk, Siemens, Volkswagen, Thomson Locations: BEIJING, China, United States, Europe

At the same time, the property price surge and demand for the ultra-high-end segment is stirring memories of old excesses. In 2008, the global financial crisis hit Dubai hard, leading to a flight of capital and people, a crash in property prices and highly leveraged flagship companies known as government-related entities (GREs) struggling to repay debts. Dubai set up a Debt Management Office in 2022, has repaid or restructured some outstanding debt, and announced plans to list government stakes in 10 companies to raise capital and deepen financial markets. 'GLOBAL SAFE HAVEN'The United Arab Emirates' commercial centre, Dubai has shovelled resources into social and business reforms and sectors like digital technology. Average property prices rose 12.8% in Q1, with villa prices up almost 15%, according to property research firm CBRE.

Persons: Knight Frank, Nasser Al Shaikh, GREs, Shaikh, Justin Alexander, Betterhomes, Richard Waind, Philippe Zuber, Beyonce, Rachna Uppal, Yousef Saba, Lisa Barrington, William Maclean Organizations: Reuters, Khalij, GlobalSource Partners, Dubai Media Office, Management, HAVEN, United Arab Emirates, Villa, Dubai Inc, Emirates, Kerzner, Thomson Locations: Ukraine, DUBAI, Dubai, glitzy, Property, Jebel Ali, Abu Dhabi, Gulf, India, Saudi Arabia, UAE

☆ As U.S. and Chinese Officials Meet, Businesses Temper Their Hopes
▼ + stars: | 2023-06-17 | by ( Ana Swanson | David Mccabe | ) www.nytimes.com time to read: +1 min

Foreign direct investment in China has fallen to an 18-year low. “The hope is that high-level dialogues like this can start to inject some certainty for business into an increasingly fraught and unpredictable trade relationship,” he said. Still, as one of the world’s largest consumer markets and home to many factories that supply global businesses, China exerts a powerful pull. On a visit to China this month, Elon Musk, the chief executive of Tesla and owner of Twitter, described the American and Chinese economies as “conjoined twins” and said he opposed to efforts to split them. Apple’s chief executive, Tim Cook, traveled to China in March and lauded the company’s “symbiotic” relationship with the nation.

Persons: ”, Jake Colvin, Mary Barra, Jamie Dimon, JPMorgan Chase, Stephen Schwarzman, Elon Musk, Tesla, Tim Cook Organizations: American Chamber of Commerce, National Foreign Trade Council, General Motors, JPMorgan, Twitter Locations: China, Blackstone

☆ Philippines says China's Yadea to invest $1 bln in e-motorcycle plant
▼ + stars: | 2023-06-15 | by ( ) www.reuters.com time to read: +2 min

MANILA, June 15 (Reuters) - China's Yadea Group Holdings (1585.HK), one of the world's biggest electric two-wheeled vehicle makers, plans to invest about $1 billion in an e-motorcycle factory in the Philippines, the country's investment promotions agency chief said on Thursday. Yadea is one of a several electric vehicle (EV) manufacturers looking at the Southeast Asian nation for expansion of their manufacturing sites, Tereso Panga, director-general of government-run Philippine Economic Zone Authority (PEZA), told reporters. The Philippines is also touting its abundance of nickel, copper and cobalt, which are key raw materials for the EV industry. American and British electric vehicle firms are also scouting for battery and e-motorcycle manufacturing sites, Panga said. PEZA targets a 10% increase in investment approvals this year from 140.7 billion pesos ($2.51 billion) in 2022.

Persons: Yadea, Tereso Panga, Panga, Neil Jerome Morales, Martin Petty Organizations: Yadea, Holdings, HK, Economic Zone Authority, ASEAN Automotive Federation, Thomson Locations: MANILA, Philippines, China, Vietnam, Batangas, Manila, Thailand, Indonesia, British

June 14 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. A raft of economic data and a likely medium-term policy easing from China will give Asian markets direction on Thursday, but the main steer will probably come from investors' reaction to the Federal Reserve's 'hawkish skip' on interest rates. China's central bank, meanwhile, is expected to cut the borrowing cost of medium-term policy loans for the first time in 10 months on Thursday, after it lowered two key short-term policy rates earlier this week. The annual rate of growth in investment is seen slowing to 4.4% from 4.7%, industrial production to 3.6% from 5.6%, and retail sales to 13.6% from 18.4%. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Jamie McGeever, Dow, disinflation Organizations: Federal, Fed, Nasdaq, Nikkei, Wednesday, People's Bank of, Institute of International Finance, Thomson, Reuters Locations: China, U.S, Japan, People's Bank of China, outflows, Beijing

Global central bank meetings will be under the spotlight this week, including the U.S. Federal Reserve, the Bank of Japan as well as the European Central Bank. Indonesia's consumer confidence, Malaysia's retail sales and India's industrial production and inflation rates will be published as well. Tuesday will be a market holiday in South Korea and Indonesia will publish its retail sales for the month of April. South Korea's import and export prices for May will be out on Wednesday alongside its unemployment rate. On Friday, Singapore's non-oil domestic exports for May will be published and the Bank of Japan will conclude its central bank meeting.

Persons: Singapore's, — Jihye Lee Organizations: U.S . Federal Reserve, Bank of Japan, European Central Bank, Federal, Market, Central Bank Locations: South Korea, Indonesia, U.S, China, New Zealand

"It is clear that to ensure economic confidence, legal consistency is a must," one of the senior officials said. Deniz Ozen, lawyer for the Turkish Workers' Party MP, said authorities are violating Turkish law by keeping him in jail. Emma Sinclair-Webb, Turkey director of Human Rights Watch, said a discredited justice system is a matter of concern especially for European investors. Reinforcing the apparent U-turn, Erdogan on Friday named Hafize Gaye Erkan as central bank governor, paving the way for interest rate hikes. "No matter the economic reforms, the investment will not significantly ramp up," he said.

Persons: Erdogan, Tayyip Erdogan, Mehmet Simsek, Simsek, Mehmet Gun, Orhan Turan, Turkey's, Osman, Deniz Ozen, Emma Sinclair, Hafize Gaye Erkan, Howard Eissenstat, Burcu Karakas, Jonathan Spicer, Catherine Evans Organizations: Better Justice Association, Istanbul Convention, Gazette, Bank, AK Party, of Human, Human Rights, Turkish Workers ' Party, Finance, St, Lawrence University, Thomson Locations: ISTANBUL, Turkey, Istanbul, Osman Kavala, Kavala, Webb

☆ Saudi Arabia signs $5.6 billion deal with Chinese parent of high-end EV brand HiPhi
▼ + stars: | 2023-06-12 | by ( ) www.cnbc.com time to read: +1 min

Saudi Arabia's Ministry of Investment has signed a $5.6 billion deal with Chinese electric car maker Human Horizons to collaborate on the development, manufacture and sale of vehicles, the Saudi state news agency said in a statement. Part of the Saudi plan is to develop a domestic electric vehicle manufacturing industry. Human Horizons manufactures electric vehicles under the HiPhi brand in China. Chinese foreign direct investment into Arab markets stood at $23 billion in 2021, of which $3.5 billion as in Saudi Arabia, the Saudi statement said. Human Horizons said in March it would launch its premium HiPhi brand in some European markets this year as it looks to expand overseas.

Organizations: Saudi Arabia's Ministry of Investment, Human Horizons Locations: Saudi, Arab, China, Riyadh, Saudi Arabia

☆ Investors are eyeing China's neighbors as the recovery from 'zero-Covid' slows
▼ + stars: | 2023-06-12 | by ( Jihye Lee | ) www.cnbc.com time to read: +8 min

Bloomberg | Bloomberg | Getty ImagesChina's lackluster economic recovery since emerging from strict "zero-Covid" lockdowns has caused weaker sentiment toward the country, prompting investors to look for alternative options — like its near neighbors. Higher targets for JapanForeign investors have undoubtedly been key in driving the Japanese market, maintaining the highest levels the Nikkei has seen since 1990. During the same period last year, foreign investors had sold a net 1.73 trillion yen approximately. Wall Street banks including Morgan Stanley and Societe Generale are among those that are optimistic on Japanese stocks, holding "overweight" positions. Upside for Korea tech stocksSouth Korea is another market closely watched as concerns over China's recovery linger.

Persons: Goldman, Andrew Tilton, Berkshire Hathaway's Warren Buffett, India's, Goldman Sachs, Tilton, Morgan Stanley, ROE, Mike Wilson, we've, Price, Goldman's Tilton, Rhee Chang, Nomura, Chloe Andrieu, Pranjul Bhandari, Bhandari Organizations: Bloomberg, Getty, Asia, Pacific, Japan Foreign, Nikkei, Japan's Ministry of Finance, Societe Generale, Equity, U.S, UBS Global Wealth, U.S ., UBS, The Bank of, CNBC, Citi, AFP, Afp, Korea Financial Investment Association, South Korean, Fitch, Ben Advisors Locations: Macau, China, Japan, South Korea, India, Goldman Sachs, Berkshire, South, Shanghai, Shenzhen, Wall, Korea, Asia, The Bank of Korea, Fuyang, China's, Anhui, Indonesia

☆ Saudi Arabia signs $5.6 bln deal with Chinese EV company - state media
▼ + stars: | 2023-06-12 | by ( ) www.reuters.com time to read: +1 min

Companies Human Horizons Group Inc FollowDUBAI, June 12 (Reuters) - Saudi Arabia's Ministry of Investment has signed a $5.6 billion deal with Chinese electric car maker Human Horizons to collaborate on the development, manufacture and sale of vehicles, the Saudi state news agency said in a statement. Part of the Saudi plan is to develop a domestic electric vehicle (EV) manufacturing industry. Human Horizons manufactures electric vehicles under the HiPhi brand in China. Chinese foreign direct investment into Arab markets stood at $23 billion in 2021, of which $3.5 billion as in Saudi Arabia, the Saudi statement said. Human Horizons said in March it would launch its premium HiPhi brand in some European markets this year as it looks to expand overseas.

Persons: Rachna Uppal, Robert Birsel Organizations: Human Horizons, DUBAI, Saudi Arabia's Ministry of Investment, Thomson Locations: Saudi, Arab, China, Riyadh, Saudi Arabia

☆ Citi CEO commits to China expansion, Beijing says
▼ + stars: | 2023-06-07 | by ( Selena Li | ) www.reuters.com time to read: +2 min

The CEO also held meetings with Citi staff and clients, which include some of the largest U.S. multinational companies with presence in China, a Citi spokesperson said. Fraser's first trip to China since taking up the CEO role in March 2021 follows a visits by JPMorgan's chief Jamie Dimon last week and by other global financial executives in March. Sequoia said on Tuesday it plans to spin off its Chinese business as part of wider changes at the U.S. venture capital giant. Li told Fraser that China will open up its financial sector further. Citi is in the process of getting approval to set up a securities brokerage in China, having submitted its application in late 2021.

Persons: Jane Fraser, Fraser, Li Yunze, Li, NFRA, Fraser's, Jamie Dimon, Sequoia, Selena Li, Nivedita Bhattacharjee, Navaratnam, Alexander Smith Organizations: National Financial Regulatory Administration, Citi, U.S, United States . International, Beijing, Thomson Locations: HONG KONG, BEIJING, U.S, Beijing, China, United States, China's, Hong Kong

☆ Citigroup CEO pledges to Beijing to continue China expansion
▼ + stars: | 2023-06-07 | by ( Selena Li | ) www.reuters.com time to read: +2 min

Fraser held a meeting with the head of China's new financial regulator on Monday, the National Financial Regulatory Administration (NFRA) said in a statement on Wednesday. Most of the CEOs were reluctant publicly express their enthusiasm in growing their China business, as they tread a fine line between showing commitment to China and not antagonizing the United States. Citi currently offers corporate and institutional banking, global markets, wealth businesses and other banking services in China. The U.S. lender started winding down its retail banking business in China last December due to a global strategy shift, a move set to impact about 1,200 local staff. China will open up its financial sector further, Li Yunze, chief of China's financial regulator told Fraser.

Persons: Jane Fraser, Fraser, Morgan's, Jamie Dimon, Li Yunze, Li, Selena Li, Nivedita Bhattacharjee Organizations: National Financial Regulatory Administration, Citi, Beijing, Thomson Locations: BEIJING, China, J.P, United States, The U.S, China's, Hong Kong

☆ Saudi Arabia needs more than higher oil prices to fund its grand plans
▼ + stars: | 2023-06-05 | by ( Eoin Mcsweeney | ) edition.cnn.com time to read: +8 min

Abu Dhabi, UAE CNN —Saudi Arabia surprised traders again on Sunday with an oil production cut of about 1 million barrels a day, roughly 1% of global supply, which sent oil prices climbing. But Saudi Arabia knows that it cannot rely solely on a fluctuating oil market for income. Saudi Arabia targets $100 billion in annual foreign direct investment (FDI) by 2030. “We think about where most of the tourism development for Saudi Arabia, it’s along the Red Sea coast. Alongside China’s slowing economy and a sluggish oil market, there are fears for a potential global recession, with Russia’s ongoing war on Ukraine adding uncertainty to the market.

Persons: Amena Bakr, “ There’s, ”, Karen Young, Investment Khalid Al, Falih, CNN’s Becky Anderson, “, ’, ” Falih, Prince Mohammed bin Salman, King Salman, Young, Bakr Organizations: UAE CNN —, Brent, Saudi, Organization of, Petroleum, Energy Intel, Monetary Fund, Columbia University Center, Global Energy, Forbes, Saudi Central Bank, ”, Investment, Gulf Cooperation, Investors, CNN, EU Locations: Abu Dhabi, UAE, UAE CNN — Saudi Arabia, Riyadh, Saudi Arabia, OPEC, Saudi, “, Riyadh Monday, Gulf, Dubai, Turkey, Qatar, Syria, Yemen, Iran, Sudan, Red, China, Japan, Korea, Germany, Europe, United States, Ukraine

☆ Top asset manager says pension fund clients are turning skittish on China - 'There is a very real geopolitical risk'
▼ + stars: | 2023-06-05 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

APG's pension fund clients are more worried about investing in China, the Financial Times reported. That's as geopolitical risk has grown, with China increasingly at odds with the West. "There is a very real geopolitical risk that has been added to the proposition." There is a very real geopolitical risk that has been added to the proposition," he said. The hesitation felt by pension funds towards Chinese assets comes as foreign investors overall have begun moving out of the country at a faster rate.

Persons: —, Thijs Knaap, Knapp, we've, Micron's microchips, Minxin Pei Organizations: Financial Times, Service, APG Asset Management, APG Locations: China, Beijing, Shanghai, Singapore, Europe, That's, Taiwan, Russia

There's a burgeoning bull case for Saudi Arabia stocks. The iShares MSCI Saudi Arabia ETF (KSA) is up more than 8% year to date and almost 20% over a three-year period. The MSCI Saudi Arabia Index is composed of almost 45% in financials, followed by 22.1% in materials, mostly consisting of petrochemicals groups. More foreign investment The kingdom's Vision 2030 economic blueprint aims to raise foreign direct investment contributions to 5.7% by 2030 from 0.7% currently . Another fund that does this is the Franklin FTSE Saudi Arabia ETF (FLSA) .

Persons: Morgan Stanley, Carlos Asilis, Ramzi Sidani, — it's, they've, It's, Andrew Miller, Miller, Glovista's, HSBC's Sidani, Mondrian, — CNBC's Michael Bloom Organizations: Glovista Investments, JPMorgan —, HSBC's Global Research, Saudi, HSBC's Frontier Equity, United Arab Emirates, Mondrian Investment Partners, Franklin FTSE, Franklin FTSE Saudi Arabia, Aramco, Al, Al Rajhi Bank Locations: Saudi Arabia, Saudi, Russia, Ukraine, East, Korea, Australia, Chile, Poland, financials, Qatar, Franklin FTSE Saudi, Al Rajhi

☆ For Turkey, Erdogan Victory Brings More Risky Economic Policy
▼ + stars: | 2023-06-02 | by ( Patricia Cohen | ) www.nytimes.com time to read: +1 min

Critics of the president’s economic approach were somewhat heartened by reports that Mr. Erdogan is expected this weekend to appoint Mehmet Simsek, a former finance minister and deputy prime minister, to the cabinet. Mr. Simsek is well thought of in financial circles and has previously supported a tighter monetary policy. Mr. Barkey argues that Mr. Erdogan will have no choice but to make a U-turn on policy by winter, when energy import costs rise and some debt payments are due. Others are more skeptical that Mr. Erdogan will back down from his insistence that high interest rates fuel inflation. To deal with the large external deficit and depleted central bank reserves, Mr. Erdogan has been relying on allies like Russia, Qatar and Saudi Arabia to help bolster its reserves by depositing dollars with the central bank or extending payment deadlines and discounts for imported goods like natural gas.

Persons: Mr, Erdogan, Mehmet Simsek, Simsek, ”, Henri Barkey, Simsek’s, Barkey, Kadri Tastan, didn’t, “ Organizations: Lehigh University ., German Marshall Fund, Capital Economics Locations: Turkey, Brussels, Russia, Qatar, Saudi Arabia

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