July 27 – Daily Brief of World Finance & GCC News

WORLD FINANCE NEWS BRIEF

Ray Dalio Warns of U.S.-China ‘Capital War’ That Would Hit Dollar

URL: https://www.bloomberg.com/news/articles/2020-07-26/dalio-warns-of-u-s-china-capital-war-that-would-hit-dollar

“The things I worry about the most are the soundness of our money,” Dalio said. “You can’t continue to run deficits, sell debt or print money rather than be productive and sustain that over a period of time.”

Fed Regulator Is Fed Up With Hedge Funds’ Behaviour | Financial Times

URL: http://archive.is/DJ6kw

Until coronavirus. In March, as the panic and lockdowns hit the world, emerging market central banks had to sell lots of Treasuries to get cash. Treasuries prices plunged out of the range the hedge funds and other leveraged investors had bet on with all that gamma scalping. The multibillion investors were, technically, close to broke and the market was shutting down. So the Fed came in and bought the market. Prices recovered, and the hedge funds were back in the money.

Translated into English, the Fed and its international friends will go along with Democrats’ plans to limit hedge fund leverage, tax transactions to reduce runaway liquidity and bring large, public-facing asset managers under much heavier regulation.

Europe’s Economy to Outpace U.S. In Upending of Past Roles

URL: https://www.bloomberg.com/news/articles/2020-07-26/europe-s-economy-set-to-outpace-u-s-in-upending-of-past-roles

America’s failure to get a grip on the pandemic is putting the brakes on its rebound compared with Europe,

Europe’s relative success may help encourage shoppers to spend and businesses to invest, further propelling demand and growth

GCC NEWS BRIEF

Kuwait’s Draft Law on Expat Quotas to Exempt Domestic Workers, Those on Government Contracts

URL: https://gulfbusiness.com/kuwaits-draft-law-on-expat-quotas-to-exempt-domestic-workers-those-on-government-contracts/

If approved, the law would require some 800,000 Indians to leave the country

Last month, Kuwaiti Prime Minister Sheikh Sabah Al-Khaled Al-Sabah said that the Gulf state would like expat numbers to reduce to 30 per cent of the country’s population – down from 70 per cent at present.

Kuwait Sovereign Wealth Fund Fights Court Battle With Fired Executives

URL: https://www.ft.com/content/5a1a0af3-f28a-4d3f-b609-205f6daae5d2

The KIO, which opened an office in London in 1953, is the world’s oldest sovereign wealth fund; the KIA was established in 1982 as the KIO’s parent firm.

At the heart of the case is an alleged conspiracy to award unlawful increases in salaries and bonuses, to the detriment of the KIO.

The case raises issues of significant public interest in terms of the extent to which foreign-controlled entities can rely upon diplomatic privileges

About the author

Financial advisor to UHNWI, private entities, family offices, and companies. Certified Anti-Corruption Manager from The American Anti-Corruption Institute

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