Elon Musk’s Tesla Buying Bitcoin Is Inevitable and Disconcerting, GameStop May Thrive After Gamestonk Saga Thanks to Chewy’s Founder, Brexit and the GCC – What lies ahead?
Elon Musk’s Tesla Buying Bitcoin Is Inevitable and Disconcerting – Bloomberg
“On the face of it, a change in investment policy that simply by its disclosure adds hundreds of millions of dollars in value to a company’s portfolio 1 — and billions to the company’s market cap — in a sort-of virtual virtuous circle seems like a winning change.”
“Tesla’s explanation for the move is relatively straightforward: “To further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity.””
“Bitcoin is anything but routine, though. New, stateless, volatile, subject to cyber-theft and potential government regulation.”
“Tesla sells stock because it can and then uses some of the proceeds to buy Bitcoin because it can.”
GameStop May Thrive After Gamestonk Saga Thanks to Chewy’s Founder – Bloomberg
“The key figure in GameStop’s comeback story is Ryan Cohen, formerly the co-founder and CEO of online pet-supply retailer Chewy Inc.”
“In November, Cohen went activist on his investment by sending an eviscerating letter to GameStop’s board in which he criticized management’s performance and the lack of progress in embracing digital initiatives”
“His public pressure is paying dividends”
“The company announced a trio of impressive hires: Matt Francis, previously an engineering leader at Amazon Web Services, as its chief technology officer; Kelli Durkin, a former Chewy executive, as senior vice president of customer care; and Josh Krueger, who had prior senior roles at Amazon and Walmart Inc., as vice president of fulfilment.”
Saudi Arabia, Oman most exposed to depletion of sovereign wealth funds, Moody’s reports
“The impact of the COVID-19 pandemic on oil demand and prices has significantly increased government funding requirements in all GCC countries, which will be partially financed by sovereign wealth funds (SWFs), according to a Moody’s report issued on Wednesday, Al Sharq Business reported.”
“The stocks of SWFs in both Qatar and Abu Dhabi remain high enough to cover decades of fiscal deficits at current levels, according to the report”
“However, for Oman and Saudi Arabia, which possess more modest SWF assets, significant drawdowns will lead to substantial erosion of their SWF buffers over the medium term”
Dubai retains its leadership in FDI Global Cities of the Future – GCC Business News
“Dubai’s prominent position in global investment was confirmed by a comprehensive analysis of the investment environment in the emirate using data collected from the fDi Intelligence division and with the help of online tools like fDi Markets and fDi Benchmark, and the evaluation of Dubai FDI’s application by a distinguished judging panel.”
“Dubai’s escalation in the overall rankings of the “FDI Global Cities of the Future2021/2022” from its sixth to third position, next only to Singapore and London, is a powerful symbol of its growing global status.”
Crude Oil Price Recovery Is Too Fast for Its Own Good – Bloomberg
“Over half of the OPEC+ countries have over-produced on average since May. Saudi Arabia, as ever has carried a disproportionate share of the burden.“
“Despite OPEC+’s stellar record so far, the continued pressure on these small producers, while not only turning a blind eye to Russia but even letting it raise production, indicates just how fragile the producer group really is.”
“The rest of OPEC+ may have little alternative but to accede to its demands. They remember only too well what happened last time they failed to keep Russia on board — a production free-for-all that saw prices tumble below $20 a barrel. Nobody wants that.”
UAE’s MoF launches the final phase of accrual accounting system – GCC Business News
“The UAE Ministry of Finance (MoF) has launched the third and final phase for government entities to switch to an accrual accounting system, which provides an improved infrastructure that would enhance the country’s position in global competitiveness indexes.”
“The third phase will cover major entities in the federal government.”
Brexit and the GCC – What lies ahead?
“A historic trade deal was finally signed on December 24, a week before the end of the Brexit transition period, triggering relief on both sides.”
“According to UK government figures, trade between the UK and GCC stood at roughly $55bn in 2019, with the Gulf emerging as Britain’s third largest non-EU export destination behind the US and China.”
“Complications may arise where trade agreements exist between multiple jurisdictional parties and goods flow through UK and EU territories, but at this stage it’s difficult to be definitive,” says Watson”