Construction World Bank estimates Syria needs $7.9bn for reconstruction The World Bank on Monday said the February earthquakes are expected to have caused Syria’s real GDP output to contract by 5.5 percent in 2023, with recovery and reconstruction needs estimated at $7.9 billion over three years. The World Bank said its rapid damage and needs assessment report estimates the earthquakes that hit northern and […] March 21, 2023
Energy Iraq in final stages of talks on $27bn TotalEnergies deal Talks between French oil major TotalEnergies and Iraq to resolve sticking points in a long-delayed $27 billion energy deal “have reached advanced stages”, Iraqi oil minister Hayan Abdel Ghani said. “We will activate the deal very soon,” Abdel Ghani said at an energy event. The proposed deal, which Baghdad hopes will revive foreign investment in […] March 20, 2023
Manufacturing British manufacturing output rebounds but outlook ‘bleak’ Britain’s manufacturing output bounced back in the first three months of 2023, chiming with other measures of the economy that improved, but firms expect the sector to contract as inflationary pressures persist, a survey showed on Monday. Trade body Make UK and accountants BDO said their quarterly gauge of manufacturing output rose to +21 in […] March 20, 2023
Banking & Finance Central banks try to calm markets after UBS buys Credit Suisse Some of the world’s largest central banks came together on Sunday to stop a banking crisis from spreading as Swiss authorities persuaded UBS Group AG to buy rival Credit Suisse Group AG in a historic deal. UBS will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse and assume up to $5.4 billion […] March 20, 2023
Banking & Finance UK drops plan to tax sovereign wealth funds British finance minister Jeremy Hunt has dropped a plan to tax sovereign wealth funds investing in Britain, according to a government document. The report, detailing the measures in a budget plan announced by Hunt on Wednesday, said “the government has carefully considered” responses to its consultation on the immunity of sovereign funds from direct taxation. […] March 19, 2023
Banking & Finance A make-or-break weekend for Credit Suisse Credit Suisse Group AG chief financial officer Dixit Joshi and his team will hold meetings over the weekend to assess strategic scenarios for the embattled Swiss bank as it enters a make-or-break weekend. Credit Suisse was thrown a $54 billion lifeline by the Swiss central bank on Thursday to shore up liquidity after a slump […] March 19, 2023
Tech India’s TCS chief to exit amid slowing global tech spending Tata Consultancy Services CEO Rajesh Gopinathan is resigning in an unexpected move to pursue other interests, adding to worries for India’s largest IT services provider amid slowing tech spending and challenges in its key markets. The company named its president and head of global financial services business K Krithivasan as the CEO-designate, effective March 16, […] March 17, 2023
Economy Egypt asset sales face obstacles as state maintains grip Egypt has promised the International Monetary Fund it will roll back the state’s involvement in the economy and allow private companies a much greater role, yet several recent moves show it continuing to expand its holdings and tighten its control. As part of a $3 billion, 46-month financial support package announced with the IMF in […] March 17, 2023
Manufacturing Samsung’s new Texas chip plant cost rises above $25bn A chip plant that South Korea’s Samsung Electronics Company Limited is building in Taylor, Texas, will cost the world’s biggest memory chipmaker over $25 billion, up more than $8 billion from initial forecasts, according to three people familiar with the matter. The increase in cost is primarily due to inflation, the people said, declining to […] March 16, 2023
Economy Turkish budget deficit widens further after earthquakes Turkey’s central government budget recorded a deficit of 170.56 billion lira ($8.99 billion) in February, the finance ministry said, showing the impact of massive earthquakes that devastated the country’s south-east last month. The primary balance, which excludes interest payments, logged a deficit of 136.34 billion lira, it said. Even before the earthquake, President Tayyip Erdogan […] March 16, 2023
Banking & Finance Saudi minister feels PIF may not get part of $28bn budget surplus Saudi Arabia’s finance minister has said a decision on allocating last year’s budget surplus of almost $28 billion will soon be finalised, with the bulk of the surplus expected to boost reserves. Mohammed Al Jadaan told Reuters that a decision will be made within two weeks and that he does not think the Public Investment […] March 16, 2023
Economy More rate hikes seen as Israel inflation eases to 5.2% Israel’s inflation rate eased to a four-month low of 5.2 percent in February from a 2008 high of 5.4 percent in January. However, it was still higher than expected and is likely to mean another interest rate hike next month. The consumer price index (CPI) rose 0.5 percent in February from January, led by gains […] March 16, 2023
Banking & Finance Saudi to speed up investments in Iran after diplomatic pact Saudi Arabia’s finance minister Mohammed Al Jadaan has said that Saudi investments into Iran could happen “very quickly” following an agreement to restore diplomatic ties. “There are a lot of opportunities for Saudi investments in Iran. We don’t see impediments as long as the terms of any agreement would be respected,” Al Jadaan said during […] March 16, 2023
Banking & Finance Credit Suisse intends to borrow up to $54bn to boost liquidity Credit Suisse Group AG said on Thursday it intended to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank in what it called “decisive action” to boost its liquidity. Swiss regulators pledged a liquidity lifeline to Credit Suisse in an unprecedented move by a central bank after the flagship Swiss […] March 16, 2023
Manufacturing Boeing jet battle shifts to factory floor after Saudi Dreamliners win A major purchase by Saudi Arabia caps sales of almost 200 Dreamliners over the past four months, handing Boeing major industrial and political wins in lucrative widebody sales against European rival Airbus. Now the US aerospace giant will face the difficult task of producing and delivering those 787s in a time of unprecedented supply chain […] March 16, 2023
Tech Facebook-parent Meta to cut 10,000 jobs in new layoff round Facebook parent company Meta Platforms is to cut 10,000 jobs this year, making it the first Big Tech company to announce a second round of mass layoffs as the industry braces for a deep economic downturn. Meta shares jumped six percent on the news. The widely anticipated job cuts are part of a restructuring that will see the […] March 15, 2023
Banking & Finance SVB collapse unleashes Treasury volatility and rattles investors Extreme volatility is rattling US Treasury markets in the wake of the collapse of Silicon Valley Bank, and investors fear a prolonged bout of gyrations before calm returns to bond markets. One measure of expected volatility in US Treasuries – the Ice BoFA Move Index – has surged past its Covid-era high and now stands […] March 15, 2023
Economy Jordan says S&P’s stable outlook supports IMF-backed reforms Jordan’s central bank governor Adel Al Sharkas said the latest rating outlook from S&P Global reflected the “soundness of Jordan’s macroeconomic fundamentals”. Jordan’s finance minister Mohamad Al Ississ said that S&P’s decision to maintain the kingdom’s sovereign credit rating at B+/B reflected confidence in accelerating IMF-backed reforms. “This is the latest confirmation of Jordan’s credit […] March 15, 2023
Economy Egypt’s GDP growth likely to slip to 4.2% in 2022/23 fiscal year Egypt’s economy is expected to grow 4.2 percent in the current fiscal year ending in June, the cabinet said, much less than previously forecast. Gross domestic product grew by 3.9 percent in October-December, the second quarter of the fiscal year, while the unemployment rate fell to 7.2 percent, the statement said. Economic growth slowed from […] March 15, 2023
Banking & Finance Turkey’s central bank receives $5bn deposit from Saudi Arabia A deposit of $5 billion from the Saudi Fund for Development (SFD) entered the accounts of the Turkish Central Bank on Monday. The central bank declined comment on the issue. Saudi minister of finance Mohammed Bin Abdullah Al-Jadaan had announced his country’s intention to make the deposit in December and the SFD said on March […] March 15, 2023
Manufacturing White House says Saudi-Boeing 787 deal to support US jobs The White House has welcomed the “landmark” deal between Saudi Arabia and the Boeing Co, saying it will support US jobs and marked a milestone in cooperation between Saudi Arabia and American industry. Two Saudi airlines agreed to buy 78 Boeing 787 Dreamliners and took options to buy another 43. The White House said it […] March 15, 2023
Banking & Finance Israel says immediate liquidity risk averted after SVB collapse A panel formed by Israel’s finance ministry to assess the fallout from the collapse of Silicon Valley Bank (SVB) has determined that the immediate liquidity risk has been averted. The ministry in a statement cited a decision by US authorities to back accounts – even those uninsured – at the bank, which has been an […] March 15, 2023
