July 7 – Daily Brief of World Finance & GCC News

WORLD FINANCE NEWS BRIEF

Buffett Sticks to Comfort Zones With His Dominion Energy Deal by bloomberg.com

“It’s very positive that he’s sending a signal for the right deal at the right price, $10 billion or more — ‘We’re ready to go, we’re ready to invest.’”

“I’m inspired to see that, given that he’s bearish, he’s still willing to make acquisitions where he thinks it makes sense and where it meets Berkshire’s hurdle points,” said Darren Pollock.

Banks Are Ditching London Offices and Not Just Because of Covid-19 by bloomberg.com

All of those moves were planned before the coronavirus hit. “So this is not Covid-related — it is just suddenly they find a way of achieving that plan because of Covid.”

With most of London’s bankers still working from home, however, exactly how much space will eventually be needed at head offices remains unclear.

A $10 Trillion Rally Hinges on Earnings Nobody Has a Clue About by bloomberg.com

The 44% profit contraction expected for S&P 500 companies — the worst since 2008 — seems at odds with the explosive rally that’s restored most of what was lost in the March meltdown.

The S&P 500 has jumped 24% since this time last quarter, adding $10 trillion to share values.

“When we look at 2021 earnings, we feel those still need to come down quite a bit because they’re basically saying next year’s earnings will be like 2019,” he said. “That assumes a V-shaped recovery and I think the stats out there today tell you that maybe a V-shaped recovery is not necessarily what we’re going to see.”

GCC NEWS BRIEF

Cash Buyers Are Snapping Up Dubai Properties as Prices Plummet by zawya.com

For apartments, the index for May went up by 1.189 percent, the highest since April 2019, and for villas and townhouses, the index was up 1.060 percent, a new level since November 2019.

Abu Dhabi’s MidChains Secures Funding From Mubadala, ADIO by zawya.com

MidChains, which operates within Abu Dhabi Global Market (ADGM), is expected to launch trading operations in 2020, subject to the Financial Services Regulatory Authority (FSRA) approval.

“We are proud to be the only Emirati founded virtual asset exchange in the capital and our group of world-class shareholders bring a wealth of international experience that will allow us to build a global business out of Abu Dhabi,” Al Askari added.

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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