MENA | Saudi-UAE agreement, Covid-19 restrictions
Amid deadlock within OPEC+, speculation is rising that Saudi Arabia and the UAE have reached a compromise over production quotas, after the UAE opposed an extension of the group’s cooperation deal beyond the current end date of April 2022.
What you will learn:
- Oman and Bahrain announced additional Covid-19 related restrictions to cover the Eid al-Adha period, with fears that large gatherings that are typical over the holidays could fuel a surge in cases. Elsewhere, Qatar is opening up to vaccinated tourists as it ramps up preparation for the 2022 World Cup.
- Turkey’s central bank kept its policy interest rate on hold at 19.0% after inflation hit 17.5% in June, its highest in over two years, fuelled by a boost to consumer spending from the relaxation of restrictions compounded by vulnerability to rising commodity prices and a weak currency. A rate cut is unlikely before Q4.
- Following the collapse of OPEC+ talks and tensions between Saudi Arabia and the UAE over production cuts, there is speculation that the two countries have reached a compromise.
Latin America Key Themes 2024 – Slower growth, but it’s not all bad news
Growth in most LatAm economies will be below consensus. Economic momentum has surprised to the upside through most of 2023, but the full effects of record global and domestic monetary tightening are yet to be seen.Find Out More
Easing financial conditions offer CRE some respite
Our measure of financial conditions has become less restrictive in the US and started to loosen in the eurozone and the UK, reflecting investors' expectations that interest rates have peaked. This should aid the outlook for commercial real estate (CRE) on the margins, although the scale of past rate hikes, sluggish economies, and structural headwinds mean the sector still confronts challenging fundamentals.Find Out More