Solomon said economic conditions will “tighten significantly from here” as the Fed has made clear it will hike to the interest rate path target. “When there is an economic scenario where inflation is priced in, it is very difficult to get out of it without a real economic slowdown,” he said at Saudi Arabia’s Future Investment Initiative conference in Riyadh.
Still, Dimon said he was more worried about geopolitics. “The most important thing is the geopolitics around Russia and Ukraine, America and China, Western world relations,” he said. “That would be much more concerning to me than whether there is a mild or mildly severe recession.”
This year’s event comes amid a growing dispute over an OPEC+ decision to cut oil production that risks causing lasting damage to political relations between the United States and Saudi Arabia, although Wall Street seems unfazed. JPMorgan’s Dimon and Goldman’s Solomon are among the US finance chiefs attending the conference – a showcase for Saudi Crown Prince Mohammed Bin Salman.
Dimon says Saudi Arabia and US will ‘get out of this’
JPMorgan CEO Dimon said he was confident the United States and Saudi Arabia would resolve their differences after OPEC+’s decision to cut 2 million barrels of oil a day sparked a dispute between the two countries.
American politics doesn’t have to be: “Everything our way,” he said. “What doesn’t help is that the press is doing huge business on things that aren’t huge.”
“Saudi Arabia and the United States have been allies for 75 years. I can’t imagine allies agreeing on everything and having no issues,” Dimon said. “They will get through this and I am confident that people on both sides are working and that these countries will remain allies in the future”
Mubadala CEO calls for investments in hydrocarbons
Mubadala Investment CEO Khaldoon Khalifa Al Mubarak said underinvestment in the energy sector has helped sow the seeds of the current crisis.
“Three years ago in this conference the word hydrocarbon was bad,” he said. “Many of the challenges we face today in energy supply are due to the lack of investment created by the inability of many financiers, investment institutions and energy companies to invest in critical supply chains. “
Solomon says we are going through a period of adjustments
Goldman CEO Solomon told the conference that the world is going through a period of adjustments, whether in technology or monetary policy.
“The innovation economy is alive and well. The advances that have been made on a whole host of fronts, from AI and quantum technology to medical and healthcare advances, will have a profound impact on the way we live,” he said. he declared.
“We are going through an adjustment after a very long time in the world – at least in terms of monetary policy – functioning in a certain way.”
Ambani calls for continued investment in oil
“It is important to keep in mind that the transition from fossil fuels to renewable energy cannot and will not happen suddenly or in a short time. Even today, solar and wind energy represent only 10% of the world’s electricity production,” said Reliance Industries Ltd. Chairman Mukesh Ambani.
“Therefore, investment in oil and gas should not continue to decline,” he said. “If this happens, it will impact global growth, the global economy and ultimately people’s well-being.”
Solar Costs Will Continue to Rise for 5-7 Years, Says Acwa CEO
The price of solar energy will continue to rise for another five to seven years as inflation and rising interest rates drive up project costs, according to Acwa Power Co.
“Five years, I hope,” said Paddy Padmanathan, CEO of the Saudi renewable energy company, in an interview with Bloomberg TV. “Costs will increase. We see it. It’s immediate. Technology that drives down costs won’t happen as fast as inflation and interest rates drive up prices.
Printing money creating unhealthy finances: Dalio
Bridgewater Associates founder Ray Dalio said productivity was a big concern of his and that printing money led to overspending.
“We create unhealthy finances because we print a lot of money. We want to spend more money than we have,” he told the conference. Investing in productivity, in education and creating higher education that raises living standards is the way of the future, he said.
Dalio, who relinquished control of Bridgewater Associates last month, said he was not retired but in transition.
Saudi Arabia establishes carbon trading company
Coinciding with the summit, the kingdom’s $620 billion sovereign wealth fund said it had launched a voluntary carbon market company and planned to auction off a million tonnes of credits on Tuesday, arguing the country’s net zero goal.
“The company will offer advice and resources to support businesses and industry in the region as they play their part in the global transition to net zero, ensuring that carbon credit purchases go beyond significant reductions in emissions across value chains,” according to a statement. .
Earlier this month, the Public Investment Fund raised $3 billion with its first in-the-money bond sale which also marked its first foray into ethical finance.
The fund’s governor, Yasir Al Rumayyan, told the FII event on Tuesday that the cost of living, poverty and unemployment are significant issues in many countries. “We have to learn to manage crises and not be managed by crises,” he said, pointing to inflation and high interest rates as particular areas of concern. “It is no longer a question of micro or macro economics – we live in the age of geo-economics.”
Rabbi says he was barred from Saudi investment conference
An Israeli-American rabbi said he was barred from attending Saudi Arabia’s flagship investment conference in Riyadh on Tuesday despite securing an invitation from organizers.
Rabbi Jacob Yisrael Herzog, who previously declared himself “chief rabbi of Saudi Arabia” after arriving on a tourist visa, said he received an invitation to the event from Future Investment Initiative CEO Richard Attias, and that he had an entry badge.
Organizers of the Future Investment Initiative, which runs until Thursday, said they were investigating the incident when contacted by Bloomberg
Focus on long-term opportunities in China: HKEX Head
Recent market volatility in Hong Kong was a reaction to investors’ questions about the future, but it’s important to “focus on the long-term opportunity” in China, said Nicolas Aguzin, CEO of Hong Kong Exchanges & Clearing Ltd. an interview with Bloomberg TV. It has been a “difficult year” for IPOs in Hong Kong, but the pipeline is “still good”, he said, with around 140 companies submitting applications.
The Saudi event will also host its largest Chinese delegation with more than 80 CEOs from the country attending.
Investcorp sees Europe emerging “stronger”
Investcorp, the Middle East’s largest alternative asset management firm, sees a “good opportunity” for Europe to emerge “stronger” from the energy crisis and wartime challenges it faces, said Executive Chairman Mohammed Alardhi in an interview with Bloomberg TV in Riyadh.
Alardhi also said “fundamentals are strong” in the US and that Investcorp will continue to invest in the UK for the long term.