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May Last week Newsletter of World and GCC Business and Finance News – Issue #7

Bad Bank Huarong Tests China’s Financial System and Xi Jinping’s Control – Bloomberg — www.bloomberg.com “Bailing out Huarong would reinforce the behaviour of investors who ignore risk, he said, while a default endangers financial stability if a “chaotic” repricing of the bond market ensues.” “Huarong is “nowhere near” defaulting, the managing editor of Caixin Media wrote in an opinion piece on Saturday. Neither the Ministry of Finance nor Chinese regulators would allow it, Ling Huawei wrote.” “We anticipate that foreign bondholders will be required to take a haircut, but it will be relatively small,” he said. “It will be designed to signal that investors should not assume government backing translates into carte blanche support.” “How China deals with Huarong will have wide ramifications on global investors’ perception of and confidence in Chinese SOEs,” said Wu Qiong, a Hong Kong-based executive director at BOC International Holdings.” Read more Cars Are About to Get a Lot More Expensive Thanks to Inflation, Other Costs – Bloomberg — www.bloomberg.com “Despite plant shutdowns, manufacturers across the globe posted blowout results in the first quarter. They’ve made fewer, arguably better, vehicles and have pushed margins higher.” “Consider a car manufacturer with $100 billion in sales. A 10% decline in sales volume would push earnings before interest and tax down by 40%, the Boston Consulting Group has estimated.” “If sales start slowing as prices tick up further, automakers risk not being able to make the margins they have raked in over the past few months.” Read more. Billionaire’s Yacht Holed Up in Fight Over London Divorce Award – Bloomberg — www.bloomberg.com “Two years later, a London judge awarded Tatiana 41% of Farkhad’s assets. Farkhad called the 2016 divorce order illegitimate, and moved to Russia.” “She has so far seized a single helicopter in the Isle of Man worth some 6 million pounds and is closing in on a private plane. Her chase has run into roadblocks, with assets frequently changing ownership and moved across jurisdictions.” “While the trial was underway, much of the family’s wealth moved out of Farkhad’s name and into Liechtenstein trusts.” “Luna, which — with its 50-member crew — has been languishing at its Dubai berth for more than two years, remains at the heart of their most intense fight.” “Dubai’s local courts rejected its determination of a matrimonial dispute, after Farkhad argued it was incompatible with shariah law.” “Dubai, where the Luna is stuck and slowly depreciating in value. One broker put her value as having fallen to $110 million.” Living at AlJurf Find Out More About Living at AlJurf AlJurf Gardens harnesses nature’s raw beauty and combines it with refined heritage-inspired architecture and contemporary design to present a sanctuary of wellness and calm. Throughout the villa spaces, the refined and controlled raw beauty of nature is repeated in different scales, to showcase its exquisiteness across every typology of homes, gardens and courtyards. Learn more. Defiant Ghosn pins hopes on French probes to clear his name | Arab News — www.arabnews.com “He said he voluntarily agreed to undergo days of questioning in Beirut next week by French magistrates investigating allegations of financial misconduct in France that led to the seizure of millions of euros of his assets. The outcome could result in preliminary charges being handed to him or in the cases being dropped.” “Ghosn, who has French, Brazilian and Lebanese citizenship, contended he was the victim of a character assassination campaign led by Nissan with the complicity of the Japanese government, aided by accomplices in France.” “Ghosn said he spent six months repairing his home after it was damaged in the massive explosion at a Beirut port last summer. And like other Lebanese, he said he has a substantial amount of money stuck in the banks after authorities clamped down on dollar currency withdrawals and transfers in October 2019.” Read more. Ethereum Closes In on Long-Sought Fix to Cut Energy Use Over 99% – Bloomberg — www.bloomberg.com “Ethereum have been working for years to transition the blockchain to what’s known as a proof-of-stake system — which uses a totally different approach to secure the network that also eliminates the carbon emissions issue.” “Bitcoin’s network currently uses more power per year than Pakistan or the United Arab Emirates, according to the Cambridge Bitcoin Electricity Consumption Index.” “I’m definitely very happy that one of the biggest problems of blockchain will go away when proof of stake is complete,” said Buterin.” Read more. Wall Street’s ESG Gold Rush Has Conjured Up a ‘Green’ Bitcoin: Green Insight – Bloomberg — www.bloomberg.com “One only has to look at the market for green bonds, where issuance this year is almost triple what it was a year ago.” “There’s a market that doesn’t know it yet,” said Sheldon Bennett, chief executive officer of crypto miner DMG Blockchain Solutions Inc. His firm has had discussions with “multiple banks and financial institutions” that want to buy Bitcoins that can fulfill increasing demand for ESG compliance, he said.” Read more. Bank Hearing: Dimon and Other CEOs Prepared for Grilling But Got Squabbling – Bloomberg — www.bloomberg.com “It was the first time that the top bankers all appeared before the Senate Banking Committee since the 2008 financial crisis — a rare opportunity for elected leaders to publicly address some of the country’s most influential business leaders.” “As my fellow Bloomberg Opinion columnist Nir Kaissar pointed out a month ago, evidence suggests stakeholder capitalism is little more than a buzzword so far because companies over the past 10 years have boosted earnings largely by prioritizing profits.” “Senator Sherrod Brown of Ohio, a Democrat who chairs the banking committee, set the tone from the start. “No one can deny that this nation has been good to the financial industry,” he said. “But your banks haven’t held up your end of the deal …” Read more.

May Third Week newsletter of World and GCC Business and Finance News – Issue #6

How China Took an Oil Town and Turned It Into a Green Energy Hub — www.bloomberg.com “Yumen, “the cradle of China’s oil industry,” that has become a totem for China’s changes over the past four decades—from a time of sacrifice and ideology to one of the entrepreneurs and the pursuit of wealth, from the old economy to the new, from fossil fuels to renewable energy.” “When a city has become ‘resource depleted,’ it’s too late, like a patient reaching the terminal stage of cancer,” said Li Ang, research director at Innovative Green Development Program.” “The local government wants to turn the old city into a “red tourism site,” a well-trodden path for once-famous towns that now have little else left to offer.” “The proposed fix for Yumen is still based on energy, but this time on harvesting the winds that blow across northern China.” “The change is taking Yumen back to its roots. A new city is being built on the irrigated plain to the west next to the original Silk Road settlement, where farmers have grown crops for centuries before the oil boom shifted the town to the hills.” “Companies including Datang Yumen Wind Power Co. and China Longyuan Power Group Co. had installed as much as 3.1 gigawatts of renewable capacity by the end of 2020, mostly wind power, and the city government plans to add another 16GW by 2025. It hopes a surfeit of cheap, clean energy will attract power-intensive industries such as data centers and hydrogen production.” “China added more wind-power capacity last year than the rest of the world combined, according to clean-energy research group BloombergNEF.” Read more. Virgin Galactic’s ($SPCE) Richard Branson Is Outgunned by Elon Musk, Jeff Bezos – Bloomberg — www.bloomberg.com “Virgin Galactic’s ambition of becoming the first suborbital space tourism company is now in jeopardy. Bezos’s Blue Origin plans to launch its first crewed mission in July and has generated huge publicity by auctioning a seat. SpaceX is already carrying astronauts to the International Space Station and has a $2.9 billion NASA contract to help land people on the Moon.” “Virgin Galactic hasn’t conducted a successful space flight since early 2019.” Read more. UAE to permit 100% foreign business ownership from June 1 “The UAE announced in November that foreign nationals would be allowed to own 100 per cent of commercial companies within the country, eliminating the need for a UAE national to hold the majority share.” “The legislation, which will enable investors and business in ’10 new sectors of strategic importance to come under the purview of the law, is in its final stages of formation.” Read more. Forward Living – The Pixel Pixel is the first mixed-use residential community at Makers District. Pixel offers its residents & visitors a unique space to enrich, collaborate & engage. Designed as human-scale, the 7 mixed-use residential towers surrounded by quiet pocket gardens have been strategically arranged around a vibrant pedestrianized plaza. This plaza will include artisanal dining, offering homegrown restaurants & cafes, as well as co-working spaces, offices, shops & a signature water feature. Plan your visit to our 1-bedroom show apartment and experience it all today. Learn more. The future of wealthtech in the GCC “We anticipate following five waves of change impacting the future of wealthtech in the GCC countries.” “Wave 1 – Explosion of Robo-advisory” “Wealthtechs from the region such as Sarwa and StashAway has already gained substantial user base.” “Commercial Bank of Dubai (CBD) launched ‘CBD Investr’, a mobile application that uses smart algorithms to actively manage investment portfolios” “Wave 2 – Intensification in price competition” “As wealthtechs reach scale and competition intensifies, the robo-advisory fee (as per cent of AUM) will move down from the current 0.5 per cent – 0.9 per cent to 0.1 per cent – 0.3 per cent” “Wave 3 – ESG based investments” “Wealthtechs are better poised to be early market leaders in sustainable investment offerings.” “Wave 4 – Hyper-personalisation” “Predictive analytics will be increasingly used to nudge customers towards trades as per risk appetite.” “Wave 5 – Value-added services” “These include easy access to free resources, financial management tools, and simplified service offerings.” Read more. Europe Can Fend Off China and Russia Via Three Seas Initiative – Bloomberg “The most important geopolitical project you’ve never heard of is called the Three Seas Initiative. It’s a joint endeavour by 12 eastern members of the European Union to update the physical and digital links between the Baltic, Adriatic and Black Seas.” “The initiative’s other projects include roads, railways, river ports, bridges and more. And of course lightning-fast fibre-optic cables, as well as all the bits and bobs needed to launch fifth-generation (5G) telecom networks.” “A huge infrastructure project by 12 eastern EU states is an obvious geopolitical opportunity.” “The EU was initially suspicious of the Three Seas Initiative. The political rift between its western and eastern members has widened in recent years, as Hungary and Poland have whittled down the rule of law and drifted toward populism. The initiative at first smelled like an eastern attempt to rally the region against Brussels.” “It isn’t. Rather, it’s a visionary quest to make the region both prosperous and autonomous from Russian bullying and Chinese meddling.” Read more. America’s Restaurant Apocalypse Has Been Greatly Exaggerated – Bloomberg — www.bloomberg.com “A year ago experts predicted that one-third of the restaurants in America might close in 2020 as a result of the pandemic.” “New data from the National Restaurant Association, a Washington-based industry group, found that 90,000 restaurants across the U.S. have closed permanently or long-term. That’s less than 14% of the country’s restaurants.” Elon Musk Is Now Blowing Up the Wall Street Case for Bitcoin – Bloomberg — www.bloomberg.com “Crypto insiders say the Musk-driven volatility is just a temporary blip and will soon blow over.” “Wayne Wicker, chief investment officer at Vantagepoint Investment Advisers. “The mainstream adoption will come from institutional investors over time and regardless of Elon Musk.” Read more.

Weekly newsletter of World and GCC Business and Finance News – Issue #5

What Wealth Advisers Are Telling Rich Clients About Inflation, Rates, Crypto – Bloomberg “Inflation has become one of the most hotly debated topics in financial circles of late, with concerns that government stimulus and a possible post-pandemic consumer spending spree may drive up prices.” “Ida Liu, the global head of private banking at Citigroup Inc., is asking clients to move beyond their “home bias” in favor of geographic diversity for their portfolios. She especially sees opportunities in China.” “Citigroup’s Liu said sitting on cash in such a low-interest rate environment is a mistake. “With rates where they are, your cash isn’t working for you. So might as well as get invested,” she said.” “Chief Executive Officer Sarah Levy said. “I’d like us to find a way to responsibly offer crypto, but I can’t say that we’re there yet. I think we’re still in kind of a watch-and-learn mode.” Secretive Swiss Bank Pictet Torn Between Old Money and New Risk – Bloomberg — www.bloomberg.com “A 215-year-old firm rooted firmly in the past finds tension adapting to the modern world.” “But in recent years, an unsettling new trend crept into Pictet, cracking the façade of corporate cohesion: key employees began leaving.” “Pictet is in between two worlds,” says Pedro Araujo, a senior researcher at the University of Fribourg, who has studied Switzerland’s elite families.” “They are in the old world of Geneva private bankers, and the new world of globalized finance, where they want to be present internationally, they want to grow, they want to present themselves as modern, but not too much. Two worlds that are on a collision course.” Forward Living – The Pixel Pixel is the first mixed-use residential community at Makers District. Pixel offers its residents & visitors a unique space to enrich, collaborate & engage. Designed as human-scale, the 7 mixed-use residential towers surrounded by quiet pocket gardens have been strategically arranged around a vibrant pedestrianized plaza. This plaza will include artisanal dining, offering homegrown restaurants & cafes, as well as co-working spaces, offices, shops & a signature water feature. Plan your visit to our 1-bedroom show apartment and experience it all today. Learn more. The Bigger Inflation Scare Is Emerging World Food – Bloomberg “So while stronger commodity prices aren’t in themselves too dangerous for inflation in developed countries, they could be profoundly destabilizing in the emerging world.” “Problems affording food would only exacerbate the pain for the countries like Brazil and particularly India that are currently suffering grievously from the pandemic.” “Food makes up 29.8% of consumer expenditures in India (and as much as 59% in Nigeria), and only 6.4% in the U.S. Food inflation feeds much more directly into headline inflation in emerging markets, and this will push headline and core inflation upward, according to BNP’s estimates” “In the developed world, the uptick in inflation might still prove a transitory quirk caused by reopening. In the emerging world, food price inflation is already forming a serious social and economic challenge.“ “Rising interest rates can be almost as unpopular as food price inflation in the developing world, particularly in a time of pandemics.” Economic Demand Is Back. Supply Is the Problem – Bloomberg “Today, demand is not a problem for most of them; it is surging. Rather, they are struggling to secure supplies, including the raw material inputs and workers needed to meet this demand” “Covid outbreaks in certain countries that are embedded in global supply chains — such as Bangladesh, India and Vietnam — and geopolitical uncertainties, including periodic tensions between China and the U.S. and Europe, add to the headaches facing those not just trying to get raw materials to their factories.” “For the next few quarters, the supply side will be the chief determinant of success for companies, policymakers and the economy as a whole.” Worried About Inflation and College Bills? Find Inspiration in the Yale Model – Bloomberg — www.bloomberg.com “Running a world-class university is expensive. The general cost of operating a business aside, Yale had to constantly upgrade research facilities and lure top academics with good pay.” “The Yale Model puts a heavy focus on alternative assets such as private equity and real estate.” “Are private equity and real estate good inflation hedges?” “Indeed, private equity has beaten U.S. small-cap stocks by about 3% per year since the mid-1990s and outperformed in about two-thirds of the years, data compiled by JPMorgan Chase & Co show.” Big Apparel Brands Still Need Bangladesh’s Workers – Bloomberg — www.bloomberg.com “Bangladesh’s garment-export economy is something of a modern miracle.” “In 1978, the country was primarily agricultural; its garment industry amounted to nine factories and about $1 million in export revenue.” “Over the next 30 years, a combination of savvy entrepreneurship, favourable trade agreements and cost-conscious foreign retailers proved transformative.” “By 2020, annual garment exports were worth $33.6 billion, the country was home to more than 4,000 factories and the industry employed some 4.4 million workers.” The Real Covid Variant Risk From India’s Pandemic Wave Is Being Missed – Bloomberg — www.bloomberg.com “Daily fatalities and new cases are, as officially reported, around 4,000 and 400,000, respectively, or closer to 25,000 deaths and between 2 million and 5 million infections, as Brown University School of Public Health’s Ashish Jha estimates, the rest of the world needs to help the country combat this menace.” “New study has found that an entry driven by the B.1.617 spike protein was “partially resistant against neutralization by antibodies elicited upon infection or vaccination with the Comirnaty/BNT162b2 vaccine.” That’s the official name for the Pfizer-BioNTech shot”

May Second Week Newsletter of World and GCC Business and Finance News – Issue #4

Biden Inheritance Tax Rule Would Rip Billions From Biggest Fortunes at Death – Bloomberg “Biden’s plan would close that loophole and apply the top capital gains tax immediately when assets transfer to wealthy heirs. If the rate increases — it’s 20% for holdings like Bezos’s, and Biden has called for boosting it to 39.6%.” “Raising the rate would amount to the biggest curb on dynastic wealth in decades, altering an American economic landscape dominated by a few wealthy families” “The proposals are far from becoming law, even though Democrats control both houses of Congress.” “The step-up rule allows investors to pass on assets to heirs virtually tax-free, raising the taxable value of a property to its fair market value at the time it is inherited” “Currently, wealthy people who need cash can take out loans using stock as collateral, rather than selling shares, which would trigger a tax bill. The technique allows billionaires to fund their lifestyles, then pass their assets to their heirs without ever realizing capital gains.” Rents Plunge, Property Prices Don’t as People Leave Cities Due to Coronavirus — www.bloomberg.com “From New York to London to Sydney, ultra-low interest rates and vast government fiscal support have limited distressed sales.” “LONDON” “Rents in the smartest areas have been tumbling at the fastest annual pace in a decade.” “Young workers who could never hope to buy a home in the capital are looking elsewhere to discover what their money can buy in other cities such as Sheffield.” Manhattan “For Manhattan as a whole, 97% of condos sold at or below the asking price.” “Last month there were nearly 20,000 empty rentals in Manhattan alone. And the fate of these units — for instance, how much they’ll rent for — depends heavily on how often people will be required to come to the office.” Sydney “In Sydney, where the successful containment of Covid-19 means a close-to-normal life is possible, city-centre offices are still only about half full as new working patterns emerge.” “Locations like Byron Bay, an upmarket holiday town nearly 500 miles north, saw prices surge 37% last year as wealthy Australians reassess where they want to spend their lives.” Singapore “Singapore is in the middle of an upswing. Prices of private apartments are rising at the fastest pace since 2018.” “All this is happening even as foreign purchases have sunk to a 17-year low as ex-pats return home.” A coastal community seamlessly integrated within the natural and raw beauty of AlJurf. Find Out More About Living at AlJurf AlJurf Gardens harnesses nature’s raw beauty and combines it with refined heritage-inspired architecture and contemporary design to present a sanctuary of wellness and calm. Throughout the villa spaces, the refined and controlled raw beauty of nature is repeated in different scales, to showcase its exquisiteness across every typology of homes, gardens and courtyards. Saudi Aramco 1% Stake Is a Tough Sell – Bloomberg “Buying 1% of Aramco would largely be a political act. Ties between China and Saudi Arabia, which kicked off with a sale of missiles in the 1980s, have deepened since, fueled by China’s thirst for oil and, more recently, its geopolitical ambitions” “Chinese sovereign wealth money, as well as the country’s own national oil companies, are said to be in discussions to take the stake, according to a Reuters report.” “An alternative scenario involves reviving a deal whereby Aramco takes a stake in the energy division of India’s Reliance Industries Ltd. in return for stock instead of cash — although, as my colleague David Fickling writes, that would seem at odds with where Reliance is going.” Qatar Orders Arrest of Finance Minister Over Misuse of Funds – Bloomberg — www.bloomberg.com “Al-Emadi was named finance minister a day after Sheikh Tamim bin Hamad Al Thani took over leadership of the country in June 2013, and has held the role since” “The arrest was unusual because allegations of criminal conduct by senior state officials or members of ruling families in the Gulf are typically addressed behind closed doors” “The investigation is centred on his conduct as a minister, and not his other positions, it said.” Europe Has Turned Corner on Vaccination as Lockdowns Lift For Summer – Bloomberg “More than 70 million Europeans have now received at least one dose, equivalent to about one-fifth of the EU’s population.” “New cases and deaths are on a downward trajectory in France, Germany, Spain and Italy.” “Barclays Plc economists reckon the euro region’s real gross domestic product won’t return to pre-crisis levels until around the middle of next year.” Maersk, UPS and Deutsche Post Are Cashing In on the Pandemic – Bloomberg “This week two European logistics giants — AP Moller-Maersk A/S and Deutsche Post AG (owner of courier DHL) — delivered record earnings, just as U.S. delivery giant United Parcel Service Inc. did the week before.” “These companies spent years investing in globe-spanning networks and better technology. They’ve proved indispensable during the lockdown and they’re reaping the rewards.” “Congested ports help Maersk’s shipping terminals make fatter profits selling storage space.” “Maersk is promising to buy lots more shipping containers to ease the supply shortage.” Most Vaccinated Nation Seychelles Reintroduces Curbs as Covid Cases Surge – Bloomberg — www.bloomberg.com “Seychelles, which has fully vaccinated more of its population against the coronavirus than any other country, has closed schools and cancelled sporting activities for two weeks as infections surge” “To date, 62.2% of its population is fully vaccinated, according to the Bloomberg Vaccine Tracker. That compares with 55.9% for Israel, the next most vaccinated nation.” “Other nations that have vaccinated large portions of their populations have seen Covid cases plunge.”

Weekly newsletter of World and GCC Business and Finance News – Issue #3

Richest Americans Fear Biden Will Close Their Favorite Tax Loopholes. “Biden, along with Bernie Sanders and other members of Congress, have floated plans to end a long list of sometimes-obscure deductions, exclusions and loopholes that are favourites of the 0.1%.” “According to John Mezzanotte, a CPA and managing partner of Marcum’s office in Greenwich, Connecticut.” “There’s the second group who don’t pay these high-income tax rates. That’s because they aren’t primarily earning money through their labor. Instead, they’re living off investments, and therefore get to pay the lower rate on capital gains and dividends of 23.8%. For a typical client like this, the effective federal tax rate can be 20 to 22%, he said, and some — especially those with real estate holdings — can pay even less.” “Biden is planning a dramatic hike to the capital-gains rate, bringing it to the ordinary income tax levels for those earning $1 million or more.” “One idea is to end a rule called “step-up in basis,” which allows any taxable gains on assets to be wiped away at death.” “The effect would be to un-do or complicate decades of planning by the U.S.’s wealthiest families.” “The question is how many legal methods of avoiding taxes can survive Biden’s tax bill if it becomes law.” Read more IMF proposes a new macroeconomic framework for developing countries. “The pandemic and the ensuing lockdown sent the global economy into its worst slump since the 1930s. According to the United Nations (UN), its effect on the world’s poor has been particularly serious, with an estimated 100 million people falling into extreme poverty by 2020. The UN warns that poverty in some areas could reach levels not seen in 30 years” “Since the outbreak of the pandemic, the Washington-based fund has given emergency funding totalling $110 billion to 86 countries, including 52 low-income beneficiaries, stating that the emphasis should be on promoting growth to raise sufficient capital for long-term development.” “Many low-income developing countries will achieve their development goals by 2030 if official development assistance is steadily raised from the current 0.3 percent to the UN’s target of 0.7 percent of gross national income.” Read More Mark Cuban Says Dogecoin ($DOGE) Is Better Than a Lottery Ticket – Bloomberg — www.bloomberg.com “In an appearance on “The Ellen DeGeneres Show,” the owner of the Dallas Mavericks NBA team said the rise of the “meme” digital currency is the “craziest story ever” and tried to answer questions about the token represented by a smiling Shiba Inu.” “Bitcoin is like a digital version of gold, Ethereum is a digital version of a currency and then you got Dogecoin, which is just fun.” “The cryptocurrency currently trades at less than 30 cents apiece — Bitcoin’s at around $55,000.” Read more Personal Finance: Is Angel Investing a Good Way to Build Wealth? “In researching different ways to build wealth, I was struck by the opportunities VC and angel investors have for not only generating returns but also shaping the future.” “Angel investors are generally required to be “accredited investors.”” “For decades, the threshold for being accredited in the U.S. meant you needed either a net worth of $1 million, excluding a primary residence or an individual income of at least $200,000 in each of the two most recent years” “Much like fractional shares changed the ability to invest in stocks, technology is opening up more opportunities for individuals to take advantage of angel investing. Enter equity crowdfunding.” Read more A coastal community seamlessly integrated within the natural and raw beauty of AlJurf. Find Out More About Living at AlJurf AlJurf Gardens harnesses nature’s raw beauty and combines it with refined heritage-inspired architecture and contemporary design to present a sanctuary of wellness and calm. Throughout the villa spaces, the refined and controlled raw beauty of nature is repeated in different scales, to showcase its exquisiteness across every typology of homes, gardens and courtyards. Global Chip Drought Hits Apple, BMW, Ford as Crisis Worsens. “In a dizzying 12-hour stretch, Honda Motor Co. said it will halt production at three plants in Japan; BMW AG cut shifts at factories in Germany and England, and Ford Motor Co. reduced its full-year earnings forecast due to the scarcity of chips it sees extending into next year. Caterpillar Inc. later flagged it may be unable to meet the demand for machinery used by the construction and mining industries.” “Tesla Inc. CEO Elon Musk earlier this week called the chip shortage a “huge problem.” Lee Han-joon, an analyst at KTB Investment & Securities Co. in Seoul. said “There are too many uncertainties about when chip supplies will improve, and that’s making it difficult for automakers.” Read more Soaring Food Prices Make Ramadan Meals a Luxury in Lebanon – Bloomberg — www.bloomberg.com “This Ramadan, the pleas reaching the Lebanese Food Bank have taken on a new resonance. Among the emails and calls it receives each day, an increasing number are coming from “educated people, people who used to be in the middle class,” according to executive director Soha Zaiter.” “It’s delivering 5,000 food boxes and 1,000 vouchers to needy families and teamed up with charities running seven kitchens to offer iftar meals through Ramadan, which this year lasts from April 12 to May 12.” “The Matbakh El-Kell—Arabic for Everyone’s Kitchen—was initially set up as an emergency operation after the August port explosion. Working out of Beirut’s predominantly Christian neighbourhood of Mar Mikhail, it’s now a permanent initiative, producing 2,500 meals a day all year round.” Read more. Atie J. El Mouallem on Twitter: “بدل “دولرة” الاقتصاد و” لولرة ” الودائع، لماذا لا نعيد ودائع الدولار بالدولار وننقل الاقتصاد من ” الدولرة ” الى ” اللولرة ” فترتفع الليرة ويهبط الدولار ويتوقف الانهيار ؟!” — twitter.com “بدل “دولرة” الاقتصاد و” لولرة ” الودائع، لماذا لا نعيد ودائع الدولار بالدولار وننقل الاقتصاد من ” الدولرة ” الى ” اللولرة ” فترتفع الليرة ويهبط الدولار ويتوقف الانهيار ؟!” HSBC lures ultra-rich Asians by offering direct access to its investment banks – GCC Business News “HSBC

April Fourth Week Newsletter of World and GCC Business and Finance News

Dr. Atie J. El Mouallem – Political Rights and Civil Liberties in Lebanon as per Freedom House Report. — atiejelmouallem.com The Freedom House Report is the most widely cited report for tracking global trends in Political Rights and Civil Liberties. It is accessed by Policymakers, academicians, journalists, and activists and it covers almost 195 countries and 15 territories. With an Internet Freedom Score of 52/100 and a Global Freedom Score of 43/100, Lebanon is ranked one among the least free countries. In this blog post, I am only focussing on areas where Lebanon has scored the lowest points. A $6 Trillion Family Office World Fights Post-Archegos Crackdown A $6 Trillion Family Office World Fights Post-Archegos Crackdown – Bloomberg — www.bloomberg.com The implosion of Archegos is giving thousands of secretive family offices the greatest challenge to their privacy in a decade. They won’t give it up without a fight. “Some lawmakers, regulators and consumer advocates are pushing to expose the inner workings of family offices, which are closely held and lightly regulated yet manage an estimated $6 trillion for the ultra-rich globally.” “The new disclosures could include firms’ derivatives positions and which stocks they are shorting.” “Archegos essentially used borrowed money to build a huge portfolio — while keeping its ownership of individual stocks hidden.” “Family offices have proliferated this century, partly due to the boom in tech billionaires. More than 10,000 family offices globally manage the wealth of a single-family, with at least half having started this century, according to EY.” Can Oil Majors Make Electric Vehicle Charging Pay? Can Oil Majors Make Electric Vehicle Charging Pay? – Bloomberg — www.bloomberg.com To successfully swap out pumps for plugs, they’ll have to really sell those electrons. “The oil business is mostly geared toward finding barrels; demand takes care of itself. Now electric vehicles are messing with that.” “For really speed EV adoption, you need public chargers, especially high-power ones delivering a full charge in 30 minutes or less.” “Public fast-charging is most akin to the existing gas-station business, and some oil majors are active already.” “Fast chargers cost upward of $50,000 apiece and can also require chipping in for local grid upgrades.” Nigerian Banks Guaranty Trust, Access Turn to Regulators for Help Africa News: Nigerian Banks Guaranty Trust, Access Turn to Regulators for Help – Bloomberg — www.bloomberg.com Nigerian banks’ dominance of their home turf is virtually unparalleled. “Nigerian banks’ dominance of their home turf is virtually unparalleled.” “Some might claim there is pushback from traditional banks and their regulatory ally to restrict financial innovation by fintechs,” says Abubakar Idris, analyst at Stears Business.” “While the government has opened up the industry to telecom companies to increase access to banking services, the Central Bank of Nigeria has yet to approve payment-service licenses to MTN Nigeria Communications Plc and Airtel Africa Plc.” “Fintechs build bank-level features like loan, savings or investment apps off collaborations with banks,” CEO Olugbenga Agboola said.” Thodex Bitcoin (BTC USD) Cryptocurrency Exchange Turkey News: Dozens Arrested. Thodex Bitcoin (BTC USD) Cryptocurrency Exchange Turkey News: Dozens Arrested – Bloomberg — www.bloomberg.com Turkey launched an international manhunt for the founder of one of its major cryptocurrency exchanges after he stopped paying clients and fled the country. “The Justice Ministry is seeking a so-called red notice under which Interpol would help find, provisionally arrest and return Thodex Chief Executive Officer Faruk Fatih Ozer from Albania to Turkey, state-run Anadolu Agency reported Friday.” “Losses could be as high as $2 billion, according to Haberturk newspaper, and a lawyer for the victims said the money invested by about 390,000 active users had become “irretrievable.” A coastal community seamlessly integrated within the natural and raw beauty of AlJurf. AlJurf Gardens harnesses nature’s raw beauty and combines it with refined heritage-inspired architecture and contemporary design to present a sanctuary of wellness and calm. Throughout the villa spaces, the refined and controlled raw beauty of nature is repeated in different scales, to showcase its exquisiteness across every typology of homes, gardens and courtyards. Read More. Find Out More About Living at AlJurf A coastal community seamlessly integrated within the natural and raw beauty of AlJurf. Welcome to your respite from city life. Welcome to your second home. UAE Weighs Curbs on Unvaccinated People, Sparking Criticism UAE Weighs Curbs on Unvaccinated People, Sparking Criticism – Bloomberg — www.bloomberg.com The United Arab Emirates is considering restrictions on people who haven’t yet taken a vaccine despite being eligible for one, sparking criticism online and drawing in a member of Dubai’s ruling family. “Imposing it means robbing people of their rights,” said Sheikha Manal bint Mohammed Al Maktoum, who is the daughter of Dubai’s ruler and UAE Prime Minister Sheikh Mohammed Bin Rashid Al Maktoum.” “The UAE started vaccinating residents last year and has since overseen one of the world’s fastest inoculation programs, having administered about 9.8 million doses in a mostly expatriate population of 10 million.” “Most people in the UAE have received the vaccine developed by China’s Sinopharm Group, which is now being manufactured locally.” Who Ever Thought India’s For-Profit Healthcare Market Could Defeat a Pandemic Who Ever Thought India’s For-Profit Healthcare Market Could Defeat a Pandemic – Bloomberg — www.bloomberg.com No healthcare system was ready for Covid-19, but years of neglect and the government’s belief in private sector solutions has left the South Asian giant in catastrophic shambles. “A country of 1.4 billion people needs a system to support their most basic need: survival. The idea that a private health system focused on profit could adequately attend to almost 18% of the world is ludicrous.” “Public health spending was dismally low to begin with, at just close to 1% of India’s gross domestic product. The country ranks 179th out 189 when it comes to prioritization of healthcare in the government budget. It spends as much as donor-dependent nations like Sierra Leone on a per capita basis.” “It’s pointless being the pharmacy of the world when you can’t heal your own people.”

April Third Week Newsletter of World and Gcc Business and Finance News

Deliveroo IPO, Jamie Dimon Threat Stokes Concern in London – Bloomberg “The food delivery Deliveroo initial public offering should have been a beacon to lure tech firms against competition from New York and Hong Kong.” “Instead, concerns over the company’s governance and the treatment of its riders combined to produce one of the worst market debuts in City history.“ JPMorgan’s Chief Executive Officer Jamie Dimon said last week “For bankers in London, hopes for unhindered access to EU markets — via a process known as equivalence — have long gone” ” EU “has had, and will continue to have, the upper hand.”” ““Paris, Frankfurt, Dublin and Amsterdam will grow in importance as more financial functions are performed there.”” Read more Brexit EU News: Deliveroo IPO, Jamie Dimon Threat Stokes Concern in London – Bloomberg — www.bloomberg.com The U.K.’s finance industry has taken a number of knocks in 2021 Rich Prepare for Next Lockdowns by Buying Homes With Everything – Bloomberg “Tent-Ready Tennis Courts” “In 2020, super-prime properties with tennis courts sold on average for 22% more than their court-less peers, according to Knight Frank research.” Swimming Pools “From 2015 through to the first three months of 2020 (before everyone knew what Covid-19 meant), about 26% of homes sold each quarter in Greenwich, Connecticut — one of the richest places in the U.S. — had a pool.” “Indoor-Outdoor’ Rooms” “Anna Czarnowska of Morpheus London, a high-end residential and hospitality design firm, says demand is rising for indoor spaces that have an outdoorsy vibe.” “The accessibility of beaches and hikes often takes greater significance with residents increasingly more concerned about their health and living environment,” Robertson said. “Multi-Generational Living” “For the ultra-wealthy, having their near and dear close is now worth paying extra.” Read more Real Estate: Rich Prepare for Next Lockdowns by Buying Homes With Everything – Bloomberg — www.bloomberg.com Resort-style luxury is in, whether that’s Instagram-worthy wine cellars or a penthouse bedroom that doubles as a garden. AlJurf Gardens A coastal community seamlessly integrated within the natural and raw beauty of AlJurf. AlJurf Gardens harnesses nature’s raw beauty and combines it with refined heritage-inspired architecture and contemporary design to present a sanctuary of wellness and calm. Throughout the villa spaces, the refined and controlled raw beauty of nature is repeated in different scales, to showcase its exquisiteness across every typology of homes, gardens and courtyards. Learn more. Find Out More About Living at AlJurf — al-jurf.jakk.me A coastal community seamlessly integrated within the natural and raw beauty of AlJurf. Welcome to your respite from city life. Welcome to your second home. Billionaire Saudi Family Breaks Mold on Kingdom’s Secrecy – Bloomberg “As the October public offering of BinDawood Holding Co. got underway, details emerged of some $76 million in previously undisclosed loans made by the Saudi company to family members. In a departure from the traditional secrecy associated with the kingdom’s family firms, Jeddah-based BinDawood revealed everything, put the IPO on hold and gave buyers the chance to take their money back.” “As the loans were quickly repaid, the sale resumed and eventually raised about $500 million for the family, attracting $29 billion in bids along the way.” Read more. Billionaire Saudi Family Breaks Mold on Kingdom’s Secrecy – Bloomberg — www.bloomberg.com For Ahmad BinDawood, last year’s share offering in the eponymous Saudi grocery business was a chance to shape his legacy at the family firm he’s worked at since the age of eight, while cementing a $3.1 billion fortune built over the decades by his father and uncles. Europe Is Heading Toward a New Financial Crisis – Bloomberg “To ensure the viability of the common currency at the heart of the European project, the EU’s leaders will have to cooperate in ways they’ve so far resisted.” “In 2012, European leaders agreed on what should have been a big part of the solution. They envisaged a full banking union, in which governments would take joint responsibility for supervising financial institutions.“ “The International Monetary Fund estimates that general government debt in the euro area will exceed 98% of gross domestic product by the end of 2021, up from 84% at the end of 2019.” “Worse, individual countries’ obligations are accumulating on the balance sheets of their banks.” “Aside from the financial risks they present, these sovereign exposures make banking union harder to achieve politically.“ Read more. Europe Is Heading Toward a New Financial Crisis – Bloomberg — www.bloomberg.com Completing the EU’s banking union might be the only way to avoid the dreaded “doom loop.” Crypto Exchanges Usher in Era of Round-the-Clock Stock Trading – Bloomberg “Fractional shares and aftermarket trading are common features offered by U.S. brokerages, but for investors based outside of the U.S. the offerings provide ready access to the country’s $47 trillion stock market without having to jump through regulatory hoops or having to wake at odd hours to transact.” “Binance serves many users around the world and we are very pleased to be able to help them participate in the equity market,” said Binance Chief Executive Officer Changpeng Zhao in a statement.” Read more. Crypto Exchanges Usher in Era of Round-the-Clock Stock Trading – Bloomberg — www.bloomberg.com The era of round-the-clock stock trading is here if you know where to look. Turkey’s missing $128bn triggers publicity campaign and police action “The Republican People’s Party (CHP) said $128 billion of foreign reserves were used during former Finance Minister Berak Albayrak’s tenure to stabilize the Turkish lira.” “Turkish President Recep Tayyip Erdogan said on Feb. 24 that the massive sum of money was channelled into the country’s fight against coronavirus.” Read more. Turkey’s missing $128bn triggers publicity campaign and police action | Arab News — www.arabnews.com ANKARA: 
Missing reserves of $128 billion from Turkey’s Central Bank has triggered a publicity campaign from the country’s opposition party demanding to know the money’s whereabouts and police action to stop the question from being asked. The Republican People’s Party (CHP) said $128 billion of foreign reserves were used during former Finance