The WSJ Dollar Index is up 0.30 point or 0.29% today to 102.83

—Snaps a two-trading-day losing streak

—Up four of the past six trading days

—Off 2.20% from its record close of 105.14 hit Tuesday, Sept. 27, 2022

—Off 0.33% from its 52-week high of 103.18 hit Thursday, Jan. 2, 2025

—Up 7.90% from its 52-week low of 95.31 hit Friday, Sept. 27, 2024

—Rose 6.06% from 52 weeks ago

—Year-to-date it is up 0.08 point or 0.08%

Data based on 5 p.m. ET values

Source: Tullett Prebon and Dow Jones Market Data

Weaker Canadian Dollar Buoying Value of Imports, Exports

1020 ET – The weak Canadian dollar is already showing up in trade figures, and is expected to continue to do so in the new year, BMO Economics’ Shelly Kaushik says. Canada’s goods-trade deficit narrowed to C$323 million in November from C$544 million the prior month, as the weaker loonie boosted the value of dollar-denominated imports and exports. Kaushik says trade volume figures suggest a positive impact on Canada’s growth to close out the year, though the possibility of U.S. tariffs add a significant risk for 2025. (robb.stewart@wsj.com; @RobbMStewart)

**Dollar Remains Weakened Ahead of Labor Data**

0950 ET – The dollar is yet to fully recover from the fall it suffered yesterday after the Washington Post reported that Trump tariffs could be limited, something the President-elect denied. The WSJ Dollar Index is slightly lower while the greenback slips against the euro and the pound. “The uncertainty around the new administration’s policies could affect the market and fuel some volatility for the dollar,” DHF Capital’s Bas Kooijman writes. Labor data due this week could change currency trends. “Robust data coupled with a hawkish Federal Reserve stance could bolster the dollar,” Kooijman says.

**Dollar Could Turn Higher if U.S. Data Are Solid**

1440 GMT – The dollar could turn higher if upcoming U.S. economic data are solid, Monex Europe analysts say in a note. The dollar’s pullback is likely to be temporary rather than the start of a more sustained trend, they say. “The beginning of that turnaround could come as soon as today,” they say. Market focus is on the U.S. job openings and labor turnover survey (JOLTS) and the ISM services reading at 1500 GMT. The data could paint a “relatively rosy picture” of the U.S. economy. The DXY dollar index falls 0.7% to 108.185.(renae.dyer@wsj.com)

**Sterling Could Underperform if BOE Ramps Up Rate Cuts**

1227 GMT – Sterling could underperform later in the year if the Bank of England becomes more active in cutting interest rates than previously assumed, MUFG Bank analysts say in a note. The BOE voted 6-3 to keep rates unchanged at the December meeting with three policymakers preferring a rate cut. This highlights that the overall composition of the BOE’s Monetary Policy Committee is shifting less cautious about cutting rates, the analysts say. “We believe the rates market is under-priced for BOE rate cuts and that should mean lower yields helps sterling underperform, resulting in EUR/GBP drifting higher.” (renae.dyer@wsj.com)

**Canadian Dollar Could Recover Further After PM Resigns**

1226 GMT – The Canadian dollar could recover further following Justin Trudeau’s decision to step down as Canada’s Prime Minister, Societe Generale’s forex strategist Kit Juckes says in a note. Short positions in the Canadian dollar—which bet on the currency falling—remain sizeable but the currency’s fortunes could change, he says. Trudeau’s resignation might make no difference to Canada’s political or economic prospects but it “wouldn’t take much of a feel-good factor to improve sentiment” from the Canadian dollar’s weak levels given the divergence between foreign exchange positioning and slowly improving expectations about Canada’s growth, he says. USD/CAD falls 0.1% to 1.4318. It reached a near three-week low of 1.4280 on Monday when Trudeau resigned, according to FactSet.(renae.dyer@wsj.com)

**Euro Briefly Pares Gains After Eurozone Inflation Data**

1039 GMT – The euro briefly pares gains against the dollar after the latest eurozone inflation data came in line with expectations. Eurozone inflation rose to an annual rate of 2.4% in December from 2.2%, as forecasts by economists in a WSJ survey. Core inflation held at 2.7%, as expected. Some analysts saw the potential for the data to exceed expectations after higher-than-expected German inflation data on Monday. The euro is last up 0.3% on the day at $1.0424, little changed from levels before the data after briefly falling to $1.0417. (renae.dyer@wsj.com)

**Canadian Dollar Rises as Mark Carney Considers Race to Become Canadian PM**

0856 GMT – The Canadian dollar rises after Mark Carney said he was considering joining the leadership race for Canada’s Liberal party after Prime Minister Justin Trudeau resigned Monday. Carney, the former governor of the Bank of Canada and Bank of England, said in a statement to the Financial Times that he was considering the decision closely with his family over the coming days. “Carney would be the most market-friendly candidate, but the domestic political shake-up will be insufficient to drive USD/CAD materially lower by itself,” ING’s Chris Turner says in a note. The Canadian dollar could remain weak as the prospect of trade tariffs under U.S. President-elect Donald Trump will hit Canada, he says. USD/CAD falls 0.2% to 1.4310. (renae.dyer@wsj.com)

**Euro Could Rise Further if Eurozone Inflation Data Exceed Forecasts**

0853 GMT – The euro could rise further if eurozone inflation data at 1000 GMT are higher than expected, ING’s Chris Turner says in a note. If the data exceed forecasts, particularly core inflation, this could further rein in the expected scale of this year’s European Central Bank interest-rate cuts after Monday’s higher-than-expected German inflation print, he says. The euro is holding onto gains made after the Washington Post reported that U.S. President-elect Donald Trump could soften his stance on trade tariffs, although Trump denied the story. “We consider this a fair adjustment after EUR/USD overshot on the downside last week,” Turner says. The euro could rise further to $1.05, he says. The euro is last up 0.2% at $1.0411. (renae.dyer@wsj.com)

**Dollar Stays Weaker After Trump Tariff Report**

0800 GMT – The dollar stays weaker even after U.S. President-elect Donald Trump denied a Washington Post report that his proposed trade tariffs could be less stringent than previously planned. The dollar’s failure to recover its losses likely indicates an adjustment in positioning following the currency’s three-month rally, ING’s Chris Turner says in a note. It could also reflect the view that there is “no smoke without fire and that the contents of that Washington Post report sounded sensible.” The dollar could see slightly more position rebalancing and consolidation in the near-term, he says. The DXY dollar index falls 0.3% to 107.997 after hitting a one-week low of 107.776 Monday. (renae.dyer@wsj.com)

Sources: <a href="https://www.msn.com/en-us/money/markets/dollar-stays-weaker-after-trump-tariff-report/ar-AA1x4qse?apiversion=v2&noservercache=1&domshim=1&renderwebcomponents=1&wcseo=1&batchservertelemetry=1&noservertelemetry=1" target="_blank"> msn </a>

<a href="https://www.barrons.com/livecoverage/stock-market-today-010725/card/u-s-treasury-volatility-could-pick-up-around-trump-s-inauguration-ggJ36jwLiBweQXWgycFJ?modCode=hp_LEDE_C_LC_3" target="_blank"> Barron's </a>

<a href="https://londonlovesbusiness.com/us-dollar-weakens-as-markets-await-data-and-ecb-decision/" target="_blank"> London Loves Business </a>

17:18 ET—The WSJ Dollar Index is up 0.30 point or 0.30% this week to 100.50

—Up for two consecutive weeks

Read more: <a href="https://www.wsj.com/finance/currencies/jpy-strengthens-supported-by-prospects-of-possible-forex-intervention-980553b9" target="_blank"> The Wall Street Journal </a>

small_mediaobserver (10).jpg

thumbnail_mediaobserver (10).jpg

thewallstreetjournal.jpg

WSJ Dollar Index Rises 0.30% This Week to 100.50

large_PR_tophead.jpg

medium_PR_tophead.jpg

small_PR_tophead.jpg

thumbnail_PR_tophead.jpg

PR_tophead.jpg

The WSJ Dollar Index is down 1.08 points or 1.10% this week to 97.40

—Largest one-week point and percentage decline since the week ending Dec. 15, 2023

Read more: <a href="https://www.wsj.com/finance/currencies/asian-currencies-consolidate-ahead-of-u-s-nonfarm-payrolls-data-6935baf7" target="_blank"> The Wall Street Journal </a>

The WSJ Dollar Index Falls 1.10% This Week to 97.40

large_Press release top head.jpg

medium_Press release top head.jpg

small_Press release top head.jpg

thumbnail_Press release top head.jpg

Press release top head.jpg

small_msn.jpg

thumbnail_msn.jpg

msn.jpg

The WSJ Dollar Index Rises 0.29% to 102.83

This article was published on December 20, 2024.

Geopolitics and worsening government debt are likely drive the price of gold up through $3000 per Troy ounce for the first time ever in 2025, extending this year’s run of new record prices. Gold could face some near term headwinds however.

Given all the market shenanigans in the wake of this week’s Fed announcement, gold was never going to come out unscathed in the short term. The Fed’s declaration of a hawkish shift in rate cut expectations next year led to a significant ‘risk off’ move from speculators.

Equities slumped, while the US dollar soared, along with bond yields. But given the surge in market volatility, and all those superficial factors which are seen as being so damaging for gold, the metal held up extremely well. It dropped 2% in the two hours following the announcement, breaking below $2,600 to hit its lowest levels in a month. But it managed to find support around $2,580.

**Outlook for gold prices in 2025**

But outside the mid-December moves in precious metals, what is the gold outlook like for 2025?

“Investors are optimistic about gold and silver for 2025 because they are so pessimistic on geopolitics and government debt,” said Adrian Ash, Director of Research at BullionVault.

With Donald Trump’s return to the White House threatening to up-end global trade as well as the West’s political and military alliances, investors are taking the potential of precious metals very seriously as a hedge against risk.

The price of gold has risen by 27.9% this year in terms of the US dollar, its 18th annual gain of the 21st century to date and its strongest rise since 2007.

Respondents to BullionVault’s recent survey – run twice every year since the end of 2014 – last December forecast that gold would reach $2342 this Christmas. Although 11% shy of the current price of $2603, that was much closer than consensus forecasts from bullion-market professionals.

**Where will the gold price be by the end of next year?**

BullionVault’s latest survey, polling nearly 1,450 responses, now forecasts a gold price of $3070 per Troy ounce at the end of 2025, an increase of 16.2% from today’s level. The survey finds even greater confidence in silver, forecasting an end-2025 price of $36.90 with a projected increase of 21.7% from today.

The more industrially useful precious metal this year recorded its 15th annual rise since Millennium Eve, gaining 27.5% and hitting a run of 13-year highs.

“2024 has proved a remarkable year for gold,” said Ash, “topping a stellar quarter-century during which the precious metal has beaten the return from all other assets, even the US stock market. While surging demand from households in China and India has supported this move, the switch into gold by private investors and more recently central banks has driven the precious metal to new all-time highs in terms of all currencies.”

Asked what they believe will be the number one driver of precious metals prices in the coming 12 months, almost a third of BullionVault users (31.4%) named geopolitics as the biggest factor, overtaking monetary policy in BullionVault’s New Year survey for the first time since 2022.

Concerns over the size of government budget deficits and debt come next, polling one-in-five responses (20.8%) and moving up to second place for the first New Year survey in four. That factor also tops the longer-term challenges facing the global economy and investors, named by more than a quarter of investors (28.5%) as the single biggest threat to 2050, followed by a loss of confidence in government (18.8%) and the growing risk of outright war between major powers (17.5%).

“Looking ahead to 2025, the key factors for gold will be US-China trade relations and the resilience of the US economy,” said Dilin Wu, a research strategist with Pepperstone. “If China’s economy weakens further, the yuan may be devalued, which may limit gold demand from the country. However, if US growth slows due to rising inflation from tariffs or tough immigration policies, traders may turn to gold as a safe-haven, driving prices higher. In either case, gold’s role as a hedge against uncertainty and potential economic setbacks could benefit its price in the first quarter of 2025.”

The turnaround in gold’s fortunes so far this century shows how investment trends come and go. Twenty-five years ago, gold was in the wilderness, unwanted by central banks, unloved by investors, and struggling to find demand from its big consumer markets following the Asian 1990s financial crisis. While the positive shock to gold prices from those factors turning around now lies in the past, the key trends driving gold prices upwards since the millennium look set to continue, at least for the near-term.

“On a global scale, monetary policy decisions in the UK and Japan could [also] affect the market,” said Bas Kooijman, the CEO of fund manager DHF Capital. “Additionally, gold could gain further upside momentum as strong central bank demand continues to support its performance.”

Source: <a href="https://www.thearmchairtrader.com/commodities/gold-price-forecast-2025-q1-outlook/" target="_blank"> The Armchair Trader </a>

The price of gold in the UAE market is estimated to have risen by 5.4% in the first half of 2023

Gold prices in the UAE could rise above 10-15 percent – or nearly AED 50 per gram – through the rest of the year , offering one of the top investment opportunities, the top executive of an investment firm said.

Bas Kooijman, CEO and Asset Manager of DHF Capital S.A., said the price of gold in the UAE market rose 5.4 percent in the first half of 2023 and the upward trajectory is expected to continue with a spike in prices in the coming months of the year, making it one of the best investment options for UAE residents.

Sources: [Arabian Business](https://www.arabianbusiness.com/gcc/bahrain/bahrain-markets/uae-gold-prices-predicted-to-jump-up-to-15-in-h2-investment-firm#:~:text=Gold%20prices%20in%20the%20UAE,of%20an%20investment%20firm%20said.)

[Media Observer](https://client.mediaobserver-me.com/article/?slng=en&id=29293975&qk=ThfK81FLrJk6X9hfYtYgFEXPe7Hg1VuJjAP1CXsQpRqwSf1QUmLva41r0ySDp3j1bFv9G5%2BBuwsMk0XdhJjEAZgz%2Bmk%20OeNZRgj6NWc%2FOkPs%3D)

[Forex TV](https://forextv.com/xauusd-gold-us-dollar/uae-gold-prices-predicted-to-jump-up-to-15-in-h2-investment-firm/)

[nabd.com](https://nabd.com/s/124677081-1be015/%D9%82%D8%B7%D8%A7%D8%B9-%D8%A7%D9%84%D8%B0%D9%87%D8%A8-%D9%81%D9%8A-%D8%AF%D9%88%D9%84%D8%A9-%D8%A7%D9%84%D8%A5%D9%85%D8%A7%D8%B1%D8%A7%D8%AA-%D9%8A%D8%B3%D8%AC%D9%84-%D9%85%D8%B3%D8%AA%D9%88%D9%8A%D8%A7%D8%AA-%D9%82%D9%8A%D8%A7%D8%B3%D9%8A%D8%A9.-%D8%AA%D9%88%D9%82%D8%B9-%D8%A8%D8%A7%D8%B3-%D9%83%D9%88%D9%8A%D9%85%D8%A7%D9%86-%D8%A7%D9%84%D8%B1%D8%A6%D9%8A%D8%B3-%D8%A7%D9%84%D8%AA%D9%86%D9%81%D9%8A%D8%B0%D9%8A-%D9%88%D9%85%D8%AF%D9%8A%D8%B1-%D8%A7%D9%84%D8%A3%D8%B5%D9%88%D9%84-%D9%81%D9%8A-%D8%B4%D8%B1%D9%83%D8%A9-%D8%AF%D9%8A-%D8%A5%D8%AA%D8%B4-%D8%A5%D9%81-%D9%83%D8%A7%D8%A8%D9%8A%D8%AA%D8%A7%D9%84%D8%8C-%D8%A3%D9%86-%D9%8A%D9%88%D8%A7%D8%B5%D9%84-%D8%A7%D9%84%D8%B0%D9%87%D8%A8-%D8%A7%D8%B1%D8%AA%D9%81%D8%A7%D8%B9%D9%87-%D8%A8%D9%86%D8%AD%D9%88-10-15-%D8%AE%D9%84%D8%A7%D9%84-%D8%A8%D9%82%D9%8A%D8%A9-%D8%A7%D9%84%D8%B9%D8%A7%D9%85-%D8%A7%D9%84%D8%AC%D8%A7%D8%B1%D9%8A%D8%8C-%D8%A3%D9%8A-%D8%AD%D9%88%D8%A7%D9%84%D9%8A-734)

small_arabianbusiness.jpg

thumbnail_arabianbusiness.jpg

arabianbusiness.jpg

UAE gold prices predicted to jump up to 15% in H2: Investment firm

Gold prices have been seeing some volatility during the last few trading sessions as some uncertainty affected global investors’ expectations.

While sentiment improved to a certain extent after the resolution of the US debt issue and as Japan saw stronger growth, other factors such as weaker economic data in China and other countries have increased doubts over the direction of the global economy.

Bas Kooijman, Chief Executive Officer at DHF Capital said, “The risks that emerged during the lead-up to the resolution of the debt ceiling issue could leave some investors more cautious regarding their investment choices in the future and could favor gold and other safe assets for some time. However, the averted catastrophe could see investors move to more risky assets which could put pressure on gold prices to a certain extent."

Gold may receive ongoing support: “Over the longer term, gold could continue to see some support in particular if central banks expand their purchases. Central banks could shift part of their reserves toward gold with the dollar coming increasingly under pressure and seeing competition from other assets."

This might not be the case in the short term: “Over the short term, gold prices could continue to see strong volatility with major central banks’ meetings scheduled next week. The Federal Reserve and the European Central Bank are poised to decide on their interest rates while the former is expected to pause its rate hikes and the latter could raise rates."

“In the meantime, traders could remain cautious while gold prices could see some pressure from rising bond yields. Traders could monitor central banks’ rhetoric for any clue on the direction of interest rates and their impact on gold prices", added Bas Kooijman.

Sources: [London Loves Business](https://londonlovesbusiness.com/gold-prices-see-some-volatility-ahead-of-central-banks-meetings/)
[The Market Squawk](https://themarketsquawk.com/blog-details/gold-prices-see-some-volatility-ahead-of-central-banks-meetings-dhf-capital)

small_londonlovesbusiness (1).jpg

thumbnail_londonlovesbusiness (1).jpg

londonlovesbusiness (1).jpg

Gold prices see some volatility ahead of central banks meetings

small_thearmchairtrader.jpg

thumbnail_thearmchairtrader.jpg

thearmchairtrader.jpg

Gold price forecast for 2025: Can it go to $3000?

This article was published on December 19, 2024.

Oil prices retreat from the previous trading session after the Federal Reserve signaled fewer interest-rate cuts next year, fueling demand concerns. Brent crude and WTI are both down 0.1% at $73.35 and $69.95 a barrel, respectively. Futures gained 1% on Wednesday after the latest U.S. inventory data showed crude oil stocks fell on higher exports, indicating an uptick in global demand. But the U.S. central bank’s cautious outlook, coupled with widespread concerns about weaker global demand and an anticipated supply surplus, weighed on market sentiment. “The Fed’s hawkish shift dampened an early rebound in oil prices yesterday,” Swissquote Bank’s senior analyst Ipek Ozkardeskaya says. “The barrel of U.S. crude slipped back to $70 per barrel… We anticipate rangebound trading within the $67-$70 per barrel range.” (giulia.petroni@wsj.com)

**Oil Drops After Fed Signals Fewer Rate Cuts Next Year**

0133 GMT — Oil drops in early Asian trade amid weak sentiment. The Federal Reserve signaled that it will slow down rate cuts in 2025 after making an expected 25-basis-point cut in December. “The more hawkish tone from the FOMC meeting seems to trigger some sell-the-news across Wall Street,” IG market strategist Yeap Jun Rong says in a note. The Fed’s remarks sent the dollar higher, which makes oil more expensive for international buyers. Crude oil will likely see some volatility amid uncertainty surrounding U.S. political developments and new European sanctions targeting Russian oil exports, says Joseph Dahrieh, managing principal at Tickmill. Front-month WTI is down 0.6% at $70.22/bbl while Brent is 0.5% lower at $73.01/bbl. (sherry.qin@wsj.com)

Read more on <a href="https://www.wsj.com/finance/commodities-futures/oil-drops-after-fed-signals-fewer-rate-cuts-next-year-a7a2967e" target="_blank"> The Wall Street Journal </a>

This article was published on 17th September 2024.

**The week that was**

After hitting a bump the previous week, both the S&P 500 and Nasdaq Composite saw their largest weekly gains in 2024.


Sentiment improved markedly last week, with the CBOE Volatility Index, or “fear gauge”, dropping by 20% to about 16.5. A VIX level of 16 usually indicates the market expects lower fluctuations in stock prices over the short term.

The rally comes just right before the Federal Reserve’s policy meeting, where a decision on interest rates is set to be announced on Wednesday, September 18 (US time).

To summarise, the week started with traders focusing on the Consumer Price Index (CPI) report on Wednesday, which was the final key data before the Fed’s decision.

The report showed a welcoming trend, with US inflation easing to a three-year low in August as consumer prices rose just 2.5%, down from 2.9% in July.

While this gives the Federal Reserve room to cut interest rates this week, a more modest 25 basis-point cut is expected instead of a bigger 50-basis point cut.

“The data strengthened expectations for a 25-basis point rate cut, with the market now pricing in an 85% chance,” said Erik Boekel at DHF Capital.

Further good news came on Thursday when the Producer Price Index (PPI) for August came in at 2.4%, slightly below the 2.5% forecast and matching July’s figure.

The Fed monitors the PPI closely as it reflects price pressures at the factory level before they reach consumers.

Following this data release, market expectations shifted, increasing the odds of a 50-basis point cut.

According to the CME FedWatch Tool, investors now see a roughly 49% chance of the larger cut, up from just 15% on Thursday.

This shift in expectations contributed to another market rally on Friday, boosting stock market gains for the week.

**Wall Street divided**

Strictly speaking, a 25 basis point cut isn’t really news. Markets have long expected this, even if they didn’t get the timing exactly right (with many initially predicting the first rate cut as early as March 2024).

But this anticipation has been a major factor driving stock market gains over the past 18 months.

Some strategists believe a 25 basis point cut would actually be more prudent than a 50 basis point cut, because the Fed Reserve, they say, shouldn’t be making a larger cut without clear signs of recession or a financial crisis.

“For everyone who’s asking for a 50 basis point cut, I think they should really reconsider the amount of volatility that would cause in short-term funding markets,” Yardeni Research’s Eric Wallerstein told Yahoo.

“It’s just not something the Fed wants to risk.”

Another reason to not go for 50 is the message it would convey – that the Fed must know something that the rest of us don’t.

However, in the event the Fed decides to go for the bigger cut, small caps could get a “significant rally”, says Eric Johnston at Cantor Fitzgerald.

Either way, rate cuts in general are positive for markets, especially when the Fed is cutting rates without the presence of a recession.

Data shows that historically, when the Fed eased policy without an accompanying recession – such as in 1966, 1984, 1995 and 1998 – markets have performed well after the first rate cut.

Source: <a href="https://stockhead.com.au/nasdaq-wrap/nasdaq-wrap-wall-street-notches-best-week-in-2024-as-nvidia-rebounds-but-will-the-fed-spoil-it-all/" target="_blank"> Stockhead </a>

small_stockhead.jpg

thumbnail_stockhead.jpg

stockhead.jpg

Nasdaq Wrap: Wall Street notches best week in 2024 as Nvidia rebounds; but will the Fed spoil it all?

This article was published on August 6th, 2024.

Dubai: Gold prices have dropped sharply by $30 today to $2,398 an ounce, as the ‘safe haven’ asset becomes another casualty of the turmoil in global markets. Even with this drop, it’s still not at levels that shoppers in the UAE or anywhere else would be comfortable with.

But potential shoppers will feel better if they looked at it from different perspective. Just last month, gold went in for another surge, and this time managed to find a way all the way up to $2,482 an ounce, thus creating a new record high. At the time, it did seem that gold would carry all the way to $2,500, after breaking $2,300 and $2,400 within the first six months of 2024.

<a href="https://gulfnews.com/business/markets/gold-price-drops-by-30-as-asset-gets-caught-in-market-turmoil---but-bitcoin-recovers-1.1722921675275" target="_blank"> Gulf News </a>

small_gulf_news.jpg

thumbnail_gulf_news.jpg

gulf_news.jpg

Gold price drops by $30 as asset gets caught in market turmoil - but Bitcoin recovers

Oil Slips as Fed Rate-Cut Outlook Fuels Demand Worries

This article was published on December 2, 2024.

1 . Data cleansing and analytics
Generative AI (GenAI) could simplify data management for tax leaders. Large language models (LLMs) can sort, summarise and analyse large volumes of structured and unstructured data such as invoices, tax reports and customer records much faster than humans. 

Using algorithms, businesses will be able to more easily gather and integrate data from different sources, formats and structures, as well as tag and categorise it by content. 

AI will also be able to “cleanse” that information faster, finding and fixing flaws, inconsistencies and duplication, while using predictive modelling to fill in gaps and missing records. 

All of this will make a company’s tax and finance data significantly more usable for decision-making. AI-powered analytics will also be able to find trends, correlations and patterns hidden inside datasets, helping organisations anticipate opportunities and risks and make more proactive decisions.

2. Compliance
Better control over data will also be key to helping tax and finance leaders reduce the compliance burden. Meeting tax laws and regulations is an ongoing challenge, particularly for businesses operating across borders, as rules continually change, and regulators demand more transparency and financial information from businesses. 

AI could bring efficiencies by transforming and consolidating company data, improving the quality of queries from source systems and identifying data anomalies and areas of potential risk.

“In compliance, AI monitors large regulatory databases, identifying potential irregularities in real-time, which mitigates risks and ensures adherence to regulations,” says Bas Kooijman, CEO of asset manager DHF Capital.

Tax authorities will likely begin harnessing AI to analyse tax data and returns, which could mean more regular requests and specific questions for businesses. The urgency to keep pace will therefore increase. 

3 . Income tax and accounting
The accounting industry already uses AI to drive huge productivity gains by automating key tasks to free up time for higher-value work. This is especially vital as tax and finance leaders say effective management of departmental budgets will be their number one priority over the next three years, according to the EY 2024 Tax and Finance Operations survey. 

Today, finance departments deploy GenAI in several ways, including automating mundane tasks such as data entry, processing invoices and generating financial reports. 

The Big Four accounting firms are also employing AI at a more advanced level in areas such as document review, where it is used to evaluate large volumes of contracts to extract key information, and the auditing process, where it helps to manage regulatory risk. AI technology is also used for coding and document generation. Additionally, it can be deployed in tailor-made client-side solutions.

Promising results from pilot projects suggest that algorithms will go even further in automating common accounting tasks, although the technology is expected to work alongside rather than replace workers. That is because AI cannot currently be substituted for the judgement, scepticism or experience that humans bring to the equation. 

4. Planning
AI’s forecasting models can help companies identify risks and long-term trends, enabling more informed decision-making and reducing uncertainty in tax planning. Businesses can input data – such as regulatory laws, company performance data and corporate strategy – into an AI model to proactively generate tax recommendations.

For example, the AI model might highlight a regulatory change in Spain that affects telecom companies. It might then suggest ways to manage the tax implications. Alternatively, a company may want to alter its tax strategy to free up more cash: the AI could offer a series of recommendations to achieve that goal.

By automating more tax planning decisions, businesses should be able to free up time for higher-value tasks.

Source: <a href="https://www.raconteur.net/artificial-intelligence/how-ai-will-impact-the-tax-function" target="_blank"> Raconteur </a>

Sovereign wealth funds have reportedly become major players in the artificial intelligence (AI) funding race.

Countries such as Saudi Arabia, Kuwait and the United Arab Emirates (UAE) are turning to AI projects as a way to diversify their economies, CNBC reported Sunday (Sept. 22).

In the last year, funding for AI firms from these oil-rich nations’ wealth funds have grown fivefold, the report added, citing Pitchbook data.

MGX, an AI fund from the UAE, is among the investors looking to take part in OpenAI’s latest fundraising effort, which is believed to value the company at $150 billion, sources told CNBC.

As the report noted, most venture capital (VC) funds can’t afford to compete with tech giants such as Amazon and Microsoft when it comes to funding AI projects.

Sovereign wealth funds, however, have no such trouble, as their governments are flush with cash thanks to rising energy prices. The total wealth of the Gulf Cooperation Council countries’ is expected to reach $3.5 trillion by 2026, CNBC said, citing data from Goldman Sachs.

Meanwhile, another UAE firm, Mubadala, has also invested in OpenAI rival Anthropic, and is one of the most active venture investors, with eight AI deals in the past four years, the report said. Sources told CNBC Anthropic said it would not take money from the Saudis in its last funding round, citing national security concerns.

PYMNTS examined AI’s potential to transform the Middle East in a report earlier this year.

“Successful AI development efforts could not only lead to a wave of local creativity and innovation such as new startups, and attracting generation of students to the field, but could spread the resulting prosperity across the region, countering local disbalances and democratizing the knowledge economy to attract the brightest minds,” geopolitical analyst Irina Tsukerman said in an interview for that report.

And efforts like Saudi Arabia’s Public Investment Fund, boasting over $900 billion in assets, is working to establish itself as a global AI leader, Bas Kooijman, CEO and asset manager at DHF Capital, told PYMNTS in an interview.  

“The fund could spur innovation, attract global tech partnerships, and accelerate AI adoption across various industries within the region, contributing significantly to Saudi Arabia’s GDP,” he added.

Source: <a href="https://www.pymnts.com/artificial-intelligence-2/2024/ai-startups-find-financing-pipeline-in-middle-eastern-sovereign-wealth-funds/" target="_blank"> PYMNTS </a>

small_pymnts.jpg

thumbnail_pymnts.jpg

pymnts.jpg

AI Startups Find Financing Pipeline in Middle Eastern Sovereign Wealth Funds

According to the UAE government, an estimated increase in economic output of AED 305 billion ($83 billion) is expected by 2035. This is due to the application of AI in various sectors, and as it pertains to the finance industry, AI will be a primary contributor by injecting AED 103 billion ($28 billion) of this total into the country’s economy.

In light of the above, Bas Kooijman, CEO and Asset Manager of DHF Capital S.A., cites that assets under management in the robo-advisors market in the UAE are projected to reach approximately AED 58.46 billion in 2023 and show a compound annual growth rate (CAGR 2023-2027) of 12.06% to result in a projected total amount of about AED 92.19 billion by 2027. With this forecasted growth on the horizon, Kooijman shares insights on why the future of wealth management will rely heavily on robo-advisors.

Employing mathematical algorithms to provide sound financial advice, robo-advisors have become increasingly sought out in the UAE and 1.1+ million market users are expected in the country by 2027. This impending uptick in investors who seek to leverage the power of algorithms to grow their investments can be attributed to several factors including lower fees and a higher return on investment (ROI) than that of human advisors or the traditional banking system with most robo-advisors charging roughly just 0.25% per year.

The launch of Chat GPT, which registered five million new users on the day it was released, is also contributing to this investment market renaissance. More people realize the advantageous use cases of AI across all industries, and with UAE National Strategy for Artificial Intelligence (AI) 2031 outlining a blueprint for the country to be the most prepared in the world for the adoption of this world-revolutionizing technology, its implementation is set to greatly enhance the country’s financial landscape in the coming years.

Bas explained: “Algorithms and algorithmic methods have been with us already now for a very long time, and AI is now reshaping how consumers and companies alike access and manage their finances. With predefined rules, computers can be programmed to explore markets for the benefit of clients and when those rules match reality, an alert can be issued to a portfolio manager to help them further minimize risk and maximize profit. This automation essentially provides security while enabling a portfolio to maintain a high-class liquidity level.”

For traders, algorithms have the potential to make thousands of trades per second if set right; a 2019 study showed that around 92% of the Forex market was performed by algorithms, rather than humans. Bas’ securitization firm, DHF Capital, has leveraged the power of algorithms to provide investors in the region, and across the globe, with an annual average ROI of 20% since its inception; investors who have worked with him since the company’s inception have witnessed a 114% ROI, more than doubling their initial investment.

Sources: [Economy Middle East](https://economymiddleeast.com/news/ai-in-finance-to-inject-aed103-bn-into-uaes-economy-by-2035/)
[Khaleej Times](https://www.khaleejtimes.com/business/ai-in-finance-to-inject-dh103b-into-uaes-gdp-by-2035)
[UAE Times](https://uaetimes.ae/ai-in-finance-to-inject-dh103b-into-uaes-gdp-by-2035-news/)
[Atelihad News Center](https://www.aletihad.ae/news/%D8%A7%D9%84%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%D9%8A/4377665/%D8%A7%D9%84%D8%B0%D9%83%D8%A7%D8%A1-%D8%A7%D9%84%D8%A7%D8%B5%D8%B7%D9%86%D8%A7%D8%B9%D9%8A-%D9%81%D9%8A-%D8%A7%D9%84%D9%82%D8%B7%D8%A7%D8%B9-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A-%D9%8A%D8%B6%D9%8A%D9%81-103-%D9%85%D9%84%D9%8A%D8%A7%D8%B1%D8%A7%D8%AA-%D8%AF%D8%B1%D9%87%D9%85-%D9%84%D8%A7%D9%82%D8%AA)
[Fit Freedom Today](https://fifreedomtoday.com/%D8%A7%D9%84%D9%85%D8%B3%D8%AA%D8%B4%D8%A7%D8%B1%D9%88%D9%86-%D8%A7%D9%84%D8%A2%D9%84%D9%8A%D9%88%D9%86-%D8%A7%D9%84%D8%B0%D9%83%D8%A7%D8%A1-%D8%A7%D9%84%D8%A7%D8%B5%D8%B7%D9%86%D8%A7%D8%B9%D9%8A/)
[Zawya](https://www.zawya.com/en/economy/gcc/ai-in-finance-to-inject-28bln-into-uaes-gdp-by-2035-uk6zc4ra)
[MENAFN](https://menafn.com/1106310764/AI-in-Finance-to-Inject-AED-103-Billion-Into-the-UAEs-Economy-by-2035)
[MENAFN](https://menafn.com/arabic/1106310763/%D8%A7%D9%84%D8%B0%D9%83%D8%A7%D8%A1-%D8%A7%D9%84%D8%A7%D8%B5%D8%B7%D9%86%D8%A7%D8%B9%D9%8A-%D9%81%D9%8A-%D8%A7%D9%84%D9%82%D8%B7%D8%A7%D8%B9-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A-%D9%8A%D8%B3%D8%AA%D8%B9%D8%AF-%D9%84%D8%B1%D9%81%D8%AF-%D8%A7%D9%84%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF-%D8%A7%D9%84%D8%A5%D9%85%D8%A7%D8%B1%D8%A7%D8%AA%D9%8A-%D8%A8%D9%85%D8%A8%D9%84%D8%BA-103-%D9%85%D9%84%D9%8A%D8%A7%D8%B1-%D8%AF%D8%B1%D9%87%D9%85-%D8%A8%D8%AD%D9%84%D9%88%D9%84-%D8%B9%D8%A7%D9%85-2035)
[Write Caliber](https://news.writecaliber.com/financial-services-united-arab-emirates-ai-in-finance-to-inject-28bln-into-uaes-gdp-by-2035/)
[UAE News 24/7](https://uaenews247.com/2023/05/25/ai-in-finance-to-inject-aed-103-billion-into-the-uaes-economy-by-2035/)

small_middleeasteconomy.jpg

thumbnail_middleeasteconomy.jpg

middleeasteconomy.jpg

AI in Finance to inject AED103 bn into UAE’s economy by 2035

small_raconteur.jpg

thumbnail_raconteur.jpg

raconteur.jpg

How AI will impact four key areas of the tax function

The British pound held steady despite mixed economic data, which pointed to ongoing challenges in the UK economy. GDP growth for Q3 was revised down to 0%, indicating stagnation in economic activity. The services sector, which is crucial to the UK economy, remained flat, while construction saw a 0.7% increase, and production contracted by 0.4%. However, a 1.9% rise in business investment may provide some support for the currency.

Trade data further clouded the outlook for the pound. The UK’s current account deficit narrowed by GBP 5.9 billion to GBP 18.1 billion in Q3. While the overall trade deficit for goods and services showed slight improvement, weak exports contributed to a bearish sentiment surrounding the currency.

In the bond market, the UK 10-year bonds yield remained near the 4.6% level after declining from a multi-month peak, reflecting cautious investor sentiment. Further pressure on bonds could arise if PMI data fails to show growth in the manufacturing sector.

Source: <a href="https://londonlovesbusiness.com/british-pound-remains-stable-despite-economic-stagnation/#google_vignette" target="_blank"> London Loves Business </a>

The dollar recorded some volatility today but could remain within its downtrend overall while traders expect the start of interest rate cuts in March despite several Fed members attempting to temper market optimism. The dollar could follow treasury yields in their decline. Traders could remain cautious however ahead of the release of GDP and PCE data in the next two days. 

The British Pound declined today following an unexpected drop in inflation levels. The data fueled speculations that the Bank of England could start cutting rates earlier than previously expected. The change in expectations could weigh on the currency and could weigh on its rebound.

The Japanese yen could continue to see some downside risks after the Bank of Japan maintained its rates unchanged. Expectations of a more restrictive monetary policy remained unanswered and could leave the currency with less support after accumulating gains against the dollar for the last couple of weeks.

Source: <a href="https://londonlovesbusiness.com/forex-market-awaits-gdp-and-pce-data-as-pound-and-yen-under-pressure/" target="_blank"> London Loves Business </a>

Forex market awaits GDP and PCE data as pound and yen under pressure

With domestic data and events out of the way in both New Zealand and the UK, the Pound to New Zealand Dollar exchange rate (GBPNZD) will rely on global developments and technical momentum for guidance.

On both counts, further upside is favoured as fears for a slowdown in global economic growth - owing to rising central bank interest rates - are helping underscore GBPNZD's uptrend that has been in place for 20 weeks now.

There is simply little reason for those with an interest in this market to now bet on a turn in trend given the risk-reward ratio is heavily skewed against such an outcome.

GBPNZD last week printed its highest level since 2020 at 2.0800 as investors read the Bank of England's Thursday interest rate hike of 50bp as being a decisive and unambiguous policy response to the UK's elevated inflation levels.

The prospect of further interest rate hikes suggests Pound Sterling can endure further support via this channel, according to analysis from Goldman Sachs, particularly against currencies issued by central banks that will either end their rate hiking cycle soon or have already done so, as is the case with New Zealand.

The Reserve Bank of New Zealand (RBNZ) earlier this month surprised markets by signalling it has ended its hiking cycle in the belief it has already done enough to bring down inflation.

To be sure, New Zealand has some of the highest interest rates in the developed world (5.5%), but those in the UK look set to overtake, with markets showing investors are expecting the Bank of England to end its hiking cycle closer to 6.0%.

The rates advantage can favour the Pound over the New Zealand Dollar, particularly if the 'carry' trade remains favoured. (This is whereby capital favours markets with higher interest rates, in turn boosting demand for the higher-yielding currency).

"*NZD's June ascent came to a halt last week with NZD falling roughly 1 cent*," says Kim Mundy, an analyst at Auckland Savings Bank. "*Widespread hawkish rhetoric is starting to erode NZ's favourable interest rate differentials. The RBNZ is increasingly standing out as dovish amongst peers... narrowing interest rate differentials reduce a key NZD tailwind*."

But global factors also favour the Pound over the high-beta and cyclical New Zealand Dollar amidst growing concerns the world economy is to slow down sharply in the face of rising interest rates.

This is reflected most obviously in global commodity prices which have fallen of late, impacting so-called commodity currencies such as the Australian and New Zealand Dollars.

"Last week reinforced that central banks are still grappling to get fully on top of inflation. The Bank of England upped the pace of interest rate increases to 50bp, taking its policy rate to 5%," says Nick Tuffley, an economist at ASB.

The Norges Bank and Swiss National Bank also hiked as did the Central Bank of Turkey which went with a 650bp hike to lift the borrowing rate to 15%. 

Expectations for further rate hikes out of the U.S. Federal Reserve and the European Central Bank amidst 'sticky' inflation rates mean the rate hiking cycle continues to extend itself and economists warn there is a chance central banks risk over-hiking. "Fed Chair Jerome Powell's hint at potential rate hikes cast a shadow over the market's sentiment. Although futures markets remain sceptical about this likelihood, recent events like the accelerated rate hikes by the Bank of England and Norges Bank, Norway’s central bank, heighten the rate hike fear," says Bas Kooijman, CEO and Asset Manager of DHF Capital.

The current "shocking decline in the money supply" as a result of rate hikes is being ignored by central bankers, and this could yet result in "financial collapse" warns Albert Edwards, Co-head of Global Strategy at Société Générale.

Edwards says these late-cycle interest rate hikes could prove to be a mistake in the same vein as these same central bankers made mistakes when dismissing the prospect of a surge in inflation that has subsequently proved unwilling to fall back.

He notes money supply in the U.S. is falling at the fastest rate since The Great Depression, meaning if monetarists are right "economic growth and inflation may soon collapse as central bankers make yet another huge policy error."

"*It will also come as a big shock to investors who, as usual, are giving up on their forecasts of recession, just as one looms into view," he warns, citing evidence that "economists usually give up forecasting a recession immediately before it occurs*."

Should a global recession come to fruition, pro-cyclical currencies such as the New Zealand Dollar can be expected to underperform the likes of the Dollar, Euro, Yen and Pound, suggesting the medium-term outlook remains challenging for the Kiwi.

Source: [Pound Sterling LIVE](https://www.poundsterlinglive.com/nzd/18909-pound-to-new-zealand-dollar-week-ahead-forecast-uptrend-intact)

small_poundsterlinglive.jpg

thumbnail_poundsterlinglive.jpg

poundsterlinglive.jpg

Pound to New Zealand Dollar Week Ahead Forecast: Uptrend Intact

British Pound Remains Stable Despite Economic Stagnation

The major averages trade lower on Monday, while yields were higher, as markets get ready for a holiday-shortened week.

The S&P 500 (SP500) was -0.4%, the Nasdaq Composite (COMP:IND) was -0.2% and the Dow (DJI) was -0.7%.

The 10-year Treasury yield (US10Y) rose 3 basis points to 4.55%. The 2-year yield (US2Y) rose 1 basis point to 4.33%.

Wall Street surged on Friday, after some favorable inflation data helped traders look past the Federal Reserve's hawkish tilt that roiled markets two days ago. Still, the central bank's forecast of fewer interest rates was enough to send the benchmark S&P 500 to its worst week in over a month.

"The past week saw mixed performance in U.S. stock markets, with most major indexes declining," Bas Kooijman, CEO and Asset Manager of DHF Capital S.A, said.

Traders are also hoping for the Santa Claus Rally to kick off, which historically boosts stocks in the last five trading days of December and first two of January.

Markets will be close early on December 24, Tuesday and be shut on December 25, Wednesday, for Christmas.

Chicago Fed national activity index increased in November.

Furthermore, the U.S. Consumer Confidence report fell less than expected in December to 104.7.

On the political side, the U.S. Senate on Saturday voted to pass a spending bill that will fund the government through mid-March and avoid a shutdown. President Joe Biden signed the legislation into law.

Source: <a href="https://www.msn.com/en-us/money/markets/stock-index-futures-mixed-ahead-of-holiday-shortened-week/ar-AA1wmfNi?apiversion=v2&noservercache=1&domshim=1&renderwebcomponents=1&wcseo=1&batchservertelemetry=1&noservertelemetry=1" target="_blank"> msn </a>

This article was published on August 5th, 2024.

Both seasoned investors and newcomers are grappling Japan's rate hike, likely leading to the unwinding of the famous yen carry trade.

Japan, the land of the Rising Sun, may have triggered the fall in stock markets worldwide. Japan’s Nikkei 225 index closed down 12.4% on Monday, marking its worst performance since the 1980s. The Nikkei last experienced such a significant decline on ‘Black Monday’ in October 1987, when it fell 3836 points or 14.9%.

Dr. Vikas V. Gupta, CEO & Chief Investment Strategist, OmniScience Capital says, “The Bank of Japan’s rate hike has significantly impacted global markets, causing Mr. Market to reconsider the financial landscape.”

On one hand, the US Fed is about to cut rates while BoE already cut rates last week. Japan’s central bank took a different view and raised rates. “While Japanese rates are set to rise, the rest of the world is expected to cut rates. This shift disrupts the reflexive strategies that market participants have relied on for nearly three decades. Both seasoned investors and newcomers are grappling with this new reality, likely leading to the unwinding of the famous yen carry trade. The sharp decline in the Nikkei index reflects this adjustment,” adds Dr. Gupta.

Bas Kooijman, CEO and Asset Manager of DHF Capital says, “The Bank of Japan (BoJ) adopted a hawkish stance, raising its key interest rate to around 0.25% and outlining plans to taper bond purchases. This marked the BoJ’s second rate hike of the year. The BoJ also adjusted its inflation and growth forecasts, with core inflation expected to drop to 2.5% and growth to 0.6% in fiscal year 2024. The strengthening yen, rising to JPY 148.9 against the U.S. dollar, posed challenges for Japan’s export-driven companies, further impacting market sentiment.”

U.S. stocks closed sharply lower on Friday, with the technology-heavy Nasdaq Composite falling into correction territory as investors fretted over a softer-than-expected jobs report.

On Monday, S&P 500 opened 215 points lower at 5130, while Nasdaq 100 was trading lower by 910 points at 17530. Nasdaq Composite index is down by about 1000 points while Dow 30 was trading 1133 points lower in the opening hour of the trade on Monday.

S&P 500, Nasdaq 100 and Dow 30 are down by 4%, 4.69xx% and 3% respectively in the opening trades on Monday, August 5, 2024.

European shares also fell to near six-month lows The pan-European STOXX 600 index was down 2.6% at 487.15 points. The UK’s FTSE 100 has suffered its worst drop in more than a year.

Some major losers on Monday in the opening hour of trade:

NVIDIA down by 12%

Tesla down by 8.66%

Apple down by 6%

Intel Corporation down by 7%

Palantir Technologies down by 9%

Amazon down by 6.22%

Other than the Japan factor, it was the US unemployment numbers that may have led to the global market meltdown. The labor market experienced a significant cooling in July, with nonfarm payrolls decreasing by 114,000 and private sector job growth at its lowest since October 2021, and the unemployment rate rose from 4.1% to 4.3%. “Renewed speculation about a long-anticipated U.S. recession has emerged, partly due to a slightly higher-than-expected unemployment rate. However, this rise in unemployment was influenced by increased labor participation and adverse weather conditions in some states. Despite these concerns, we believe the U.S. economy remains strong, with its fundamentals intact,” adds Dr. Gupta.

With inflation not yet tamed fully, the ball is in the US Fed’s court to manage the global equity market crisis. Cutting rates sooner than planned may re-ignite inflationary pressures in the economy. Nigel Green, CEO of deVere Group says, “The Federal Reserve must move to cut interest rates already, especially in the light of a weak jobs report on Friday that’s been driving concerns further about an economic slowdown. It would be beyond negligent for the Federal Reserve not to announce an emergency interest rate cut in response to the global rout in stock markets.”

Source: <a href="https://www.financialexpress.com/business/investing-abroad-live-from-wall-street-nasdaq-enters-correction-territory-amid-global-equity-market-meltdown-3574479/" target="_blank"> Financial Express </a>


small_financial_express.jpg

thumbnail_financial_express.jpg

financial_express.jpg

Nasdaq and Dow skid 1000 points at open, top US stocks shed over 7%

The Nasdaq gained in mixed trading following a volatile day where all three indexes wavered in and out of the red.

The Dow Jones Industrial Average fell 72 points, or 0.2%. The S&P 500 declined less than 0.1%, and the Nasdaq Composite rose 0.3%.

Investors started the day with news that the Biden administration is contemplating new restrictions on selling chips used in AI to Chinese customers.

“*New restrictions could potentially impact a broad range of technology companies, leaving the market without what was until now a strong positive catalyst*,” wrote Ralph Ratterman, asset manager at DHF Capital S.A.

Stocks also dipped after Federal Reserve Chairman Jerome Powell made comments at a panel in Europe, stating consecutive rate hikes aren't off the table as the central bank works to get core inflation under control.

According to the CME FedWatch Tool, 81.8% of traders are now anticipating a 25 basis point rate hike at the Fed’s July meeting.

Source: [Barron's](https://www.barrons.com/livecoverage/stock-market-today-062823/card/nasdaq-gains-in-volatile-trading-0mLsVyyhCOMd7rnFZaxW)

small_barrons.jpg

thumbnail_barrons.jpg

barrons.jpg

Nasdaq Gains in Volatile Trading

Nasdaq, S&P, Dow are lower as markets gear up for holiday-shortened week

Gold held steady, marking three consecutive sessions of subdued activity as markets shifted their focus to the Federal Reserve’s upcoming monetary policy decision. While a 25-basis-point rate cut is widely expected, attention has turned to the outlook for next year’s interest rate trajectory. Chairman Powell’s remarks, along with updated economic projections and the Fed’s dot plot, are anticipated to offer crucial insights, potentially triggering near-term market volatility.

At the same time, speculation that the Fed might slow its pace of monetary easing heightened, with a January rate cut appearing increasingly unlikely. Later this week, the release of key U.S. GDP and inflation figures will be closely monitored, given their importance and potential impact on future policy decisions.

On a global scale, monetary policy decisions in the UK and Japan could affect the market. Additionally, gold could gain further upside momentum as strong central bank demand continues to support its performance.

Source: <a href="https://londonlovesbusiness.com/gold-holds-steady-fed-and-global-monetary-policies-key-to-future-trajectory/#google_vignette" target="_blank"> London Loves Business </a>

This article was published on December 4th, 2023.

In early Asia-Pacific trading on Monday, COMEX gold futures stood above the $2,150 per ounce mark, continuing to hit a record high, while spot gold short-term also soared to $2,144 per ounce, refreshing the all-time high set in May this year.

In addition to gold, other precious metals also rose: COMEX silver at $26.06 an ounce, up 0.79%, close to a six-month high, NYMEX platinum at $946, up 1.06%, close to a new high of about a year, and NYMEX palladium rose 0.55% to $1,016 an ounce.

Market analysts believe that the biggest driver behind this round of gold price breakthrough may be the bet on the Federal Reserve to cut interest rates, and other factors that push up include geopolitical factors, ultra-strong buying by global central banks, etc. Looking ahead, analysts believe that gold will still be able to maintain its rally next year, and even not only gold, the market will usher in a wave of cross-asset rallies in anticipation of the Federal Reserve's interest rate cut.

What's driving it?

Prior to this breakout, gold had been consolidating for three years, and this was the third attempt in three years to hit $2,100 an ounce. A series of recent U.S. economic data releases have been weaker than analysts expected, and inflationary pressures have continued to ease, reinforcing market expectations that the Federal Reserve has ended its interest rate hike cycle and will start cutting interest rates next year.

The ISM manufacturing index in the United States in November was 46.7, with an expectation of 47.6 and a previous value of 46.7, unchanged from October and lower than market expectations. Kaiyuan Securities said that the two major PMI systems gave a PMI lower than the boom and bust line for the U.S. manufacturing industry in November, further increasing the market's expectation that the Fed's current interest rate hike cycle has ended, and even may start to cut interest rates as soon as March 2024, so gold prices have been supported.

Kyle Rodda, a senior market analyst at Capital.com Melbourne, also said: "The market is betting heavily on the Fed to cut interest rates. And gold prices will also move higher when there are early signs of a recession. This will push the price of gold to continue to rise. ”

UBS expects gold to hit new highs in 2024 and 2025 due to Fed rate cut expectations and falling real interest rates. UBS believes that the Fed will cut rates in the first quarter of 2024, and if it pauses in December this year, this will continue to confirm the Fed's preference to cut rates around 6 months after the last increase. UBS observed the performance of gold after the Fed's previous rate hike cycles and found that gold prices tend to fall by 2% or so in the last 3 months or so after the end of previous rate hike cycles, but will rise by 7% in the next 6 months.

In addition, UBS also said that real interest rates are also a major driver of gold prices. Although the degree of correlation between the two will change over time, there is always an asymmetry in the relationship. UBS found that for every 100 basis point decline in the 10-year Treasury real rate, gold would rise by 11%, but at the same rate of gain, gold would fall by only 4.2%. Based on this, UBS believes that gold rebounds more when interest rates fall than when interest rates rise. Gold's sensitivity to real yields has declined this year relative to historical levels, but this asymmetry remains, making gold an attractive alternative outside of the bond space, and it is expected to continue to benefit if real interest rates fall in the year ahead. UBS also found that when real interest rates fall below 1.25% and continue to fall, gold prices rise even more, reaching 14%.

In addition, geopolitical factors are also pushing gold prices higher in the short term. For example, fears of further tensions in the Middle East are rapidly rising, and the resulting safe-haven buying has provided support to gold prices.

Bas Kooijman, chief executive of DHF Capital and asset manager, said the escalation "helped extend the upward trend in gold over the past two months" as the market reacted to the escalation of tensions in the Middle East. At the same time, he said that traders have also been betting on the end of the rate hike cycle and the possibility of a rate cut in the first half of next year, which could continue to support the rally in gold prices in the medium term.

In addition, global central banks are also continuing to buy gold, which also has a supporting effect on gold prices. According to data released by the World Gold Council, global central banks bought 337t of gold in the third quarter of 2023, the third highest quarterly net purchase on record, and in the first three quarters of this year, global central bank demand increased by 14% year-on-year to a record 800t.

UBS said that while these gold flows are unlikely to drive price increases on their own, they will continue to play a key role in holding the market up and supporting the overall upward trend.

Can the cross-asset rally be sustained?

In fact, the rally is by no means limited to gold. As traders widely believe that the Fed's current interest rate hike cycle is over, global stock and bond markets have also collectively soared since November. The S&P 500 rose 0.8% last week to close at its highest level since March 2022. The Dow Jones also rose sharply 2.4% last week, moving higher for the fifth straight week and its longest winning streak since late 2021. Meanwhile, the yield on the 10-year Treasury note fell to 4.225%, its lowest level since early September. The yield on the 2-year Treasury note, which is most sensitive to interest rate expectations, posted its biggest weekly drop last week since the collapse of Silicon Valley Bank in March. Bitcoin also hit $40,000 today for the first time since May 2022.

At the moment, there seems to be a consensus in the market that interest rate cuts will be the only matter of when, and how much, will be divided. If the Fed does cut interest rates as soon as March next year and then proceeds with more quantitative easing, analysts expect all assets to hit record highs.

Fed Chair Jerome Powell's recent statement that the Fed's policy setting "has penetrated deep into restrictive territory, implying tight monetary policy" is slowing economic activity, his strongest signal to date that the current rate hike cycle is over. But Powell's comments were also cautious, saying that "it is too early to confidently conclude that we have taken a sufficiently restrictive stance." But regardless of whether Powell is sending a "dovish" or "hawkish" signal, the market seems willing to interpret it as "dovish". After Powell's speech, the rally in Treasury yields lasted only a few seconds before continuing to fall. COMEX gold futures then rose to a record high on Friday.

From the perspective of the pricing of the interest rate market, at the point of interest rate cut, the market has fully priced in the Fed's interest rate cut in May next year, and the betting probability of a rate cut in March next year has exceeded 50%. In terms of the magnitude of rate cuts, the current market expectation is that the Fed will cut rates by at least 125 basis points next year, which is equivalent to five 25 basis point rate cuts, a bet that seems to have paved the way for a further decline in Treasury yields and a continued rebound in equities, bonds and commodity markets.

It is also worth mentioning that at the moment the market is not only betting on the Fed to cut interest rates. According to market participants on interest rate swap contracts, traders have fully priced in the timing of the first rate cuts by many other central banks. Specifically, the market is betting that the European Central Bank, the Bank of Canada will cut interest rates for the first time in December next year, the Federal Reserve in May next year, the Swiss National Bank and the Bank of England in June next year, the Reserve Bank of New Zealand in August next year, and the Reserve Bank of Australia in December next year.

Quincy Krosby, an analyst at LPL Financial, said: "While both the Fed's doves and hawks seem to revolve around a more 'cautious' approach to policy and acknowledge that policy is still appropriate, the market clearly disagrees. She said the market's belief that the Fed made a dovish decision in November and will begin a rate-cutting cycle by mid-2024 (or even earlier) refuted the slogan that rates are "higher and longer".

However, some institutions are worried that the "dovish" bet will be frustrated again. According to Deutsche Bank, this bet is the seventh time in this tightening cycle that market participants have bet on the Fed to turn "dovish", and the previous six have ended in failure.

Shane Oliver, head of investment strategy and chief economist at AMP, wrote in a note to clients: "The sharp rally in U.S. equities has left them technically overbought and at risk of a correction or short-term pullback." But he also admitted that "as inflation continues to ease, U.S. stocks are likely to rise further towards the end of this year and early next year," and that the seasonal tailwinds for the market will begin to show later this month.

This week, a series of economic data will test the market again, especially Friday's non-farm payrolls data. Economists polled by the media expect new nonfarm payrolls to rise to 200,000 in November from 150,000 in the previous month as workers from previous strikes return to work. The unemployment rate is expected to hold steady at 3.9%, while wage growth is expected to slow slightly to 4%.

Sources: <a href="https://www.laitimes.com/en/article/661d4_6mdo5.html" target="_blank"> LaiTimes </a>

<a href="https://www.tellerreport.com/business/2023-12-04-gold-prices-hit-a-record-high-after-three-years-of-consolidation!-what-s-driving-it-.ryZAsngiBT.html" target="_blank"> Teller Report </a>

small_laitimes.jpg

thumbnail_laitimes.jpg

laitimes.jpg

Gold prices hit record highs after three years of consolidation!

Gold remained steady near the USD 2,500 level and continued to trade within a range for several days. Investors could remain cautious as they monitor any potential moves by the Federal Reserve on interest rates and changing expectations following recent economic data.

The latest U.S. jobs report showed fewer jobs added than expected with significant downward revisions for June and July while the unemployment rate dipped to 4.2% from 4.3% in July. This mixed report limited the likelihood of a 50 basis point rate cut, though the Fed is still expected to cut rates by 125 basis points overall this year. Consequently, gold prices may remain range-bound as market participants await further developments.

Attention now turns to the upcoming U.S. inflation report. Lower-than-expected inflation could increase the chances of larger rate cuts, which would likely benefit the precious metal. At the same time, economic challenges in both the U.S. and China, along with the upcoming U.S. elections, may continue to support gold as a safe-haven asset.

Sources: <a href="https://www.wsj.com/finance/commodities-futures/gold-flat-as-investors-await-u-s-inflation-report-e9be7f07" target="_blank"> The Wall Street Journal </a>

<a href="https://londonlovesbusiness.com/gold-holds-firm-as-markets-await-key-us-inflation-data/" target="_blank"> London Loves Business </a>

Gold Holds Firm as Markets Await Key US Inflation Data

Gold holds steady: Fed and global monetary policies key to future trajectory

The U.S. dollar retreated following four consecutive sessions of gains, as market participants assessed mixed signals ahead of next week’s Federal Reserve policy meeting. While yesterday’s inflation report aligned with expectations and reinforced the likelihood of a 25-basis-point rate cut, the greenback faced downward pressure. However, high core CPI and uncertainty surrounding President-elect Donald Trump’s proposed tariff and tax policies, which could drive inflation higher, leave the Federal Reserve’s stance uncertain heading into 2025.

U.S. Treasury yields continued to climb with the 10-year note stabilizing near the 4.30% level, providing some support to the dollar. Market focus now shifts to today’s Producer Price Index (PPI) report, a key measure of inflation trends. A moderation in PPI could maintain pressure on the dollar by strengthening expectations for additional rate cuts, while persistent inflation could support the currency.

Attention also centers on rate decisions from the European Central Bank and the Swiss National Bank, which could weigh on their respective currencies relative to the dollar. Additionally, speculation surrounding the Bank of Japan’s policy stance, amid indications of unchanged rates, could lend further stability to the greenback.

Sources: <a href="https://businessnewsthisweek.com/business/dollar-weakens-amid-fed-speculation-and-mixed-inflation-signals/" target="_blank"> Business News This Week </a>

<a href="https://londonlovesbusiness.com/dollar-weakens-amid-fed-speculation-and-mixed-inflation-signals/#google_vignette" target="_blank"> London Loves Business </a>

The US dollar began the week with a relatively weak performance, extending its sell-off from last week and reaching a two-month low. Market expectations continue to lean toward no interest rate hikes in December and a potential rate cut as early as May and weigh on the currency, as inflation eased and treasury yields retreated. Tomorrow's FOMC Meeting minutes could provide further insights into policymakers' thoughts.

The euro and the British pound were both able to maintain their positive trends as the dollar sank. However, both currencies could see some risks in the face of the expectations around the next steps in their respective monetary policies and local economic developments.

The Japanese Yen continued to see a strong performance against the dollar and other currencies. The yen has been recording significant gains for three consecutive trading sessions in a row after a constant decline this year. The Chinese Yuan followed suit and soared to a three-month high against the dollar. Both currencies could see more gains if monetary policies continue to shift, favoring smaller yield spreads with the dollar.

Source: [London Loves Business](https://londonlovesbusiness.com/major-currencies-rise-as-us-dollar-sinks/)

Major currencies rise as US dollar Sinks

The USD was flat as traders awaited the release of the NFP report today. The currency has been declining for the last two days as the market incorporated comments from Jerome Powell while expectations continue to point toward interest rate cuts later this year. As a result, the US dollar could come under additional selling pressure if job market data comes lower than expected, boosting anticipations of rate cuts. Conversely, the euro moved in the opposite direction during the last few days and was slightly negative today. Traders could continue to monitor economic data on both sides of the Atlantic to determine which central bank could start cutting interest rates first which could fuel volatility and uncertainty regarding the trajectory of the euro/dollar pair. In this regard, the European Central Bank left its interest rates unchanged yesterday, reflecting policymakers’ concerns over inflationary pressures although it revised inflation projections downward for 2024 and 2025, anticipating averages of 2.3% and 2.0%, respectively, while projecting lower economic growth at 0.6% in 2024.

Source: <a href="https://londonlovesbusiness.com/dollar-uncertain-before-job-market-data/" target="_blank"> London Loves Business </a>

<a href="https://menafn.com/1107957548/Today-market-analysis-on-behalf-of-Bas-Kooijman-is-the-CEO-and-Asset-Manager-of-DHF-Capital-SA" target="_blank"> Mena FN </a>

Dollar Uncertain Before Job Market Data

small_business_news_this_week.jpg

thumbnail_business_news_this_week.jpg

business_news_this_week.jpg

Dollar Weakens Amid Fed Speculation and Mixed Inflation Signals

This article was published on December 2, 2024.

The UAE has set its sights on doubling foreign direct investment inflows to Dh1.3 trillion ($354 billion) by 2031 under its newly unveiled National Investment Strategy 2031.

The country’s low-risk profile has been instrumental in attracting FDI, with inflows reaching Dh112.6 billion in 2023, a 35 per cent year-on-year surge despite global economic headwinds, according to UNCTAD. The new plan, launched last month, aims to cement the UAE’s status as a global investment hub, leveraging its strategic location, world-class infrastructure, and pro-business policies to drive growth in sectors such as advanced manufacturing, renewable energy, and technology.

-Advertisement-
Ads by 
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, described the strategy as a continuation of “carefully crafted plans, programmes, and initiatives” aimed at achieving “clear goals” and reinforcing global confidence in the UAE.

The UAE’s ambitious targets are backed by its strong performance in the BMI Operational Risk Index, where it ranks first in the MENA region and 14th globally among 202 markets for its business environment.

The country stands out in key areas critical to attracting investors: it ranks 7th globally for trade and investment risk and 17th for logistics.

“This (ranking) has markedly improved in recent years due to the authorities’ increased efforts to diversify the economy away from oil, which prompted them to introduce numerous economic, business, legal, and labour reforms to enhance the ease of doing business,” says Mariette Kas-Hanna, Senior Analyst, Middle East and North Africa for BMI, a Fitch Solutions Company.

She notes that the national and emirates-level long-term economic visions and their aim to develop and expand key sectors such as tourism, aviation, trade, logistics, technology, and finance create an array of investment opportunities.

“The UAE’s trade profile is supported by quick, simple regulations and minimal customs obstacles, making it a top trading hub. Streamlined electronic clearance and risk assessment systems further enhance efficiency. Despite high border compliance costs, efficient customs and port handling keep overall trade costs competitive,” adds Kas-Hanna.

Dr Nasser Saidi, Founder and President of Nasser Saidi & Associates, an economic advisory and business consultancy firm, states that the country has not only been proactive in attracting new sectors such as fintech, AI, and clean energy but has also continued to draw investments in traditional sectors like transportation, logistics, and industry through its Operation 300bn industrial strategy, as well as oil and gas.

Bas Kooijman, the CEO and asset manager of DHF Capital, agrees that the country’s commitment to digital transformation and focus on key sectors like fintech, logistics, and renewable energy align with global investor priorities.

“For instance, the UAE’s fintech ecosystem has grown rapidly, with DIFC now hosting over 500 fintech firms, solidifying the country’s position as a global financial hub. The leadership’s ability to adapt quickly to challenges, such as the pandemic, by rolling out initiatives like Operation 300bn, underscores its resilience and forward-thinking approach to economic development,” he adds.

**Economic diversification**

“In an era of increased global fragmentation, the UAE’s attractiveness as a regional and international trade hub with access to many emerging economies has been increasing,” he says.

Dr Saidi adds that increased FDI flows would further accelerate the UAE’s ongoing economic diversification efforts.

The government’s new investment strategy outlines a roadmap to triple the UAE’s cumulative FDI balance to Dh2.2 trillion, representing 30 per cent of the national investment volume by 2031.

Razan Hilal, market analyst, CMT at Forex.com, a broker and subsidiary of Nasdaq-listed StoneX Group, highlights that this goal, set under the National Investment Strategy 2031 and Dubai’s D33 agenda, is driven by “fostering international relationships, investing in advanced logistics and infrastructure, and diversifying economic sectors with a skilled talent pool”.

The UAE’s strategic location between East and West attracts FDI by offering efficient access to global markets in Asia, Europe, and Africa. “Its advanced infrastructure, including top-tier airports and seaports, supports seamless trade and optimizes supply chains, particularly in key sectors like energy and commodities,” adds Hilal.

In an era of global supply chain disruptions, Kooijman points out that the UAE’s resilience and infrastructure have become vital for companies seeking stable trade routes. “The country’s investment in smart technologies and financial ecosystems, such as the DIFC Innovation Hub, further enhances its appeal to the technology and finance sectors. This geographic and logistical advantage has made the UAE a preferred destination for FDI,” he adds.

**Reforms drive momentum**

The UAE has strengthened its investment appeal through sweeping reforms. It now allows 100 per cent foreign ownership in most sectors, removing barriers for international businesses.

In 2023, the country overhauled more than 73 federal laws, enhancing intellectual property protections, streamlining dispute resolution, and modernising labor regulations.

“Foreign investment continues to primarily target free zones as they offer more attractive incentives to foreign investors compared to onshore businesses, such as full foreign ownership, tax benefits, a simplified process of establishing a business in these zones, full repatriation of profits, as well as zones specified for each sector,” says Chiedza Madzima, Head of Operational Risk for BMI.

In the first half of 2024, the UAE also exited the Financial Action Task Force’s (FATF) “grey list” after two years, following 18  months of intensified anti-money laundering and counter-terror financing measures.

“In September 2024, the UAE introduced a new anti-money laundering strategy as part of its 2024-2027 National Strategy for anti-money laundering, counter-terrorism, and financial oversight,” says Madzima.

The introduction of long-term residency programmes, such as the Golden Visa, has further cemented the UAE’s reputation as a magnet for global talent and investment.

“By allowing for long-term residence visas and increased ease of doing business, the country has successfully attracted skilled employees and entrepreneurs, especially in new sectors of growth,” says Dr Saidi.

He notes a recent uptick in financial services activity, with both DIFC and ADGM reporting a surge in new clients, particularly in sectors like private equity in Abu Dhabi.

**Global ambitions**

The new strategy comes as the UAE faces intensified competition for investment amid shifting global economic dynamics. Authorities aim to attract repeat investments, expand existing projects, and secure partnerships with emerging markets through enhanced investor relations and streamlined regulatory frameworks.

Kas-Hanna of BMI expresses confidence that the authorities would maintain their reform momentum in the coming years to attract greater FDI in non-oil sectors, which are prioritised under their long-term visions. “We expect to see more investment in sectors such as manufacturing, trade and logistics, tourism and hospitality, fintech, technology and innovation, renewable energy and sustainability, among others,” she says.

In the coming years, Kooijman says sectors like technology, renewable energy, healthcare, and logistics will drive FDI growth in the UAE.

“Government initiatives such as the UAE Energy Strategy 2050 and Operation 300bn are creating significant opportunities in advanced manufacturing, green energy, and innovation-driven industries,” he adds.

**Tech hub**

The analyst further highlights that the UAE has positioned itself as a regional tech hub, drawing venture capital and private equity investments into technology start-ups, fintech, and innovation-driven enterprises.

“The technology sector is a key area of focus of the National Investment Strategy announced last month,” she says, adding that the authorities launched the NextGen FDI programme, which aims to accelerate the business set-up process and offer incentives for technology companies looking to relocate to the UAE.

By leveraging its strengths and addressing global investment challenges, the UAE seeks to create a vibrant, investor-driven economy, with the private sector playing a key role in shaping its future.

As global FDI trends shift toward sustainability and technology, the UAE’s strategy places it firmly on the path to not only meet its 2031 goals but to redefine its position as a global leader in innovation and economic resilience.

Source: <a href="https://gulfnews.com/gn-focus/fdi-to-power-uaes-economy-1.1733297940618" target="_blank"> Gulf News </a>

As inflation rises, a global recession looms, and chatter of cryptocurrencies replacing fiat money persists, the importance of financial literacy has never been more evident. Some argue that personal finance not being taught in schools is a general failure of the education system to identify the most relevant skills students should possess.

Others claim it is a parent’s responsibility to ensure their children are financially literate. Irrespective of which of these sides is correct, the fact remains that as adults, we are all responsible for managing our finances - whether paying off mortgages or student debts, or building and diversifying our wealth portfolios to prepare for retirement.

In the UAE, this is an afterthought for close to half of the country’s population; 45 per cent of residents say they have not yet started saving for retirement, and 40 per cent will only start saving 10 years or less before they are set to retire. For comparison's sake, approximately 75 per cent of American adults have begun saving for their ‘golden years’.

If you are not a part of the 33 per cent of adults worldwide who have sufficient financial education, here are some things you can do to change that:

## Use the 50/20/30 budgeting rule
Coined by US Senator Elizabeth Warren, the 50/20/30 rule is a budgeting tactic that entails splitting your after-tax income into three categories of spending:

- 50 per cent on needs;
- 30 per cent on wants; and
- 20 per cent on savings..

If you are a resident of the UAE, you are in an advantageous situation to maximize on saving potential as you keep everything you earn. With that said, avoid the traps of overspending and ignoring delayed gratification. Instead, follow the 50/20/30 rule to create a reasonable budget, stick to it, and realize your financial goals.

## Think of it like a burger
Allocate 50 per cent of your total earnings to cover necessities like paying down debts, buying groceries, maintaining your health, and so forth - these are the buns that hold your financial potential together. If half of your salary is not enough to cover these expenses, you can downsize by, for example, limiting your use of taxis and frequenting the metro or compromising on luxury elements of your life.

While it’s important to be responsible, so is enjoying your life. This will help you make the 50/20/30 rule a sustainable staple in your life. That’s where the 20 per cent - the lettuce, tomatoes, and other preferred condiments - fit in. You can use this percentage of your savings for ‘luxuries’ like Netflix subscriptions and Starbucks coffee orders, as well as more miscellaneous expenses like going out with friends or buying gifts for family members.

Finally, the meat. This is the best 30 per cent as it makes your burger complete. It is crucial, and the reason that you are considering following this blueprint in the first place. In the short-term, 30 per cent of your savings may not seem like much, but in the long run, it makes a huge difference.

Use this allocation to create an emergency fund - something you should aim to have at least three months of savings for - to invest in stocks, and of course, to prepare for retirement.

## Harness technology and youth
Almost 50 per cent of the UAE is aged between 15-35 years and this reinforces the importance of millennials and Gen Z in propelling the country’s growth[1].

Younger generations are more in tune with digital platforms and advancements in technology, and there are a plethora of online resources that are widely available for them to learn and improve. The next step is applying what is learned, as theory is nothing without practice.

For instance, if you learn about commodity trading from YouTube channels, make sure you try your hand at actually doing it on a reputable platform. If you still don’t feel comfortable, at least you are now better educated on the subject and you can reach out to a wealth management platform to help you build your wealth while having a better understanding of what’s going on every step of the way.

##Plant your seeds now
According to a 2019 financial literacy survey, 43 per cent of UAE respondents between 16-24 felt unready to manage their own money, and 53 per cent said schools didn’t prepare them enough to manage their finances. The country has since taken steps to improve this, by rolling out initiatives like Ghaya in November 2020, to support UAE Nationals and their subsequent contributions to economic growth.

However, nearly 90 per cent of the UAE’s population is made up of expatriates and proactive action is still needed to enhance the region’s current financial literacy rate of 30.7 per cent. This will help the UAE catch the likes of Denmark, Norway, Sweden, Canada, the United Kingdom, Germany, Australia, and Finland, all of which boast financial literacy rates ranging between 63-71 per cent.

As the Chinese proverb goes: ‘The best time to plant a tree was 20 years ago. The second best time is today…’

As published by [GulfNews](https://gulfnews.com/your-money/expert-columns/uae-expats-could-do-with-a-502030-budgeting-model-1.1674042451103)

small_Stock-Financial-Literacy_185c4b403e2_large.jpg

thumbnail_Stock-Financial-Literacy_185c4b403e2_large.jpg

Stock-Financial-Literacy_185c4b403e2_large.jpg

UAE expats could do with a 50/20/30 budgeting model

A reported 45% of UAE residents have not yet started saving for retirement

•	About 3.5 billion adults worldwide lack an understanding of basic financial concepts
•	Global data shows that only 35% of men and 30% are women are financially literate

Dubai, UAE – Bas Kooijman, CEO and Asset Manager of DHF Capital S.A., cites that the UAE’s financial literacy rate of 30.7%[1] will require further proactivity to catch up to leading nations; Denmark, Norway, Sweden, Canada, the United Kingdom, Germany, Australia, and Finland, boast financial literacy rates ranging between 63% and 71%[2].
Global data shows that 35% of men, and 30% of women, are financially literate[3]; this world average of 33% indicates deep disparity and calls for global concern. With inflation rates rising, a recession looming, and the possibility that cryptocurrencies may replace fiat money, the importance of improving financial education has never been more evident.
The UAE has accordingly taken actionable steps toward educating its population. In 2020, the country rolled out the Ghaya initiative to support UAE nationals and their ability to contribute to the nation’s economic growth. This program was announced shortly after a 2019 financial literacy survey found that 43% of UAE respondents 16 and 24 years old felt unready to manage their own money, and 53% said schools didn’t prepare them enough to manage their finances[4].

With 90% of the UAE’s population made up of expatriates, additional efforts which not only educate the country’s younger people but also its adults will serve to benefit greatly as even affluent individuals require assistance. In fact, a 2021 survey of individuals with at least $100,000 in investable assets found that 42% worry retirement won’t even be an option.

This concern of inadequate preparation for retirement was noted across the 24 countries in Asia, Europe, Latin America, and North America[5]. Moreover, 62% of the individuals surveyed said they needed professional advice selecting investments in their retirement plan, despite them being part of a group where more than half rated their investment knowledge as strong[6].

As it relates to the UAE, a survey by ‘Friends Provident International’ found that 45% of the country’s residents have not yet started saving for retirement, even though 44% of people expect to retire by 55, and 63% hope to do so before they turn 60. Furthermore, 40% of UAE residents will only start saving for retirement 10 years or less before they reach it[7].

Bas Kooijman, CEO and Asset Manager of DHF Capital S.A., commented: “With even the wealthiest investors seeking financial advice, this reflects the importance of enhancing one’s financial literacy. We are living in an unprecedented time where resources and information have never been more accessible, and even if you weren’t educated from a young age you can still start now. Understanding how to diversify your portfolio will allow you to mitigate your financial risk, pay off impending debts, and save up for a stress-free retirement. The UAE has made great strides in its 50-plus years of existence but even greater progress in the coming years will provide mutual benefit to both the country and its residents.”

Global debt is dangerously high; borrowing by governments, businesses and people was $226 trillion in 2020[8] but it reached a record $303 billion in 2021[9] to reflect the biggest one-year debt surge since World War II. COVID-19 and global turmoil have contributed to this spike[10] while the current debt wave is the world’s fourth since 1970[11]. Bas Kooijman is working amidst this to make wealth creation more affordable for all via his securitisation firm, DHF Capital.

[1]   https://www.thenationalnews.com/business/comment/2022/11/08/why-bridging-the-financial-literacy-gap-is-crucial-for-gen-z-investors/
[2]   https://blogs.illinois.edu/view/7550/558591870
[3]   https://gflec.org/initiatives/sp-global-finlit-survey/
[4]   https://www.arabianbusiness.com/opinion/our-nations-banks-and-financial-entities-must-step-up-to-the-challenge-of-financial-literacy
[5]   https://www.im.natixis.com/intl/resources/2021-global-retirement-index-full-report
[6]   https://www.im.natixis.com/intl/research/2021-global-retirement-index
[7]   https://www.thenationalnews.com/business/money/2022/04/13/uae-retirement-45-of-residents-have-not-started-saving/
[8]   https://www.imf.org/en/Blogs/Articles/2021/12/15/blog-global-debt-reaches-a-record-226-trillion
[9]    https://www.reuters.com/markets/europe/emerging-markets-drive-global-debt-record-303-trillion-iif-2022-02-23/
[10]  https://www.imf.org/en/Blogs/Articles/2022/04/11/blog041122-dangerous-global-debt-burden-requires-decisive-cooperation
[11]  https://www.weforum.org/agenda/2021/01/covid-global-debt-history-world-bank-imf/

Source: 
https://www.zawya.com/en/press-release/research-and-studies/33-of-the-world-is-financially-literate-the-uae-scores-307-fceuq47t#_ftn9 
https://menafn.com/1105469922/33-of-the-World-is-Financially-Literate-the-UAE-Scores-307 
https://menafn.com/arabic/1105469921/باس-كويمان-يؤكد-على-أهمية-تعزيز-الثقافة-المالية-للأفراد-في-ظل-توافرها-لدى-33-من-سكان-العالم-و307-من-سكان-الإمارات-العربية-المتحدة-فقط 
https://indexeconomic.com/?p=64079 
https://nabd.com/s/114403914-7fbf80/45-من-المقيمين-في-الإمارات-لم-يبدأوا-الادّخار-للتقاعد 
https://www.alkhaleej.ae/2023-01-24/45-من-المقيمين-في-الإمارات-لم-يبدأوا-الادخار-للتقاعد/أسواق-الإمارات/اقتصاد?utm_campaign=nabdapp.com&utm_medium=referral&utm_source=nabdapp.com&ocid=Nabd_App 
https://arabic.arabianbusiness.com/abnews/استطلاع-جديد-45-من-المقيمين-في-الإمارات 
http://uaenewsapp.com/1/Article/2065/229196696#.ZGTAHi8Rrw5 
https://www.mubasher.info/news/4066697/استبيان-45-من-المقيمين-بالإمارات-لا-يدخرون-للتقاعد/ 
https://www.klyoum.com/uae-news/ar/39-استبيان-45-من-المقيمين-بالإمارات-لا-يدخرون-للتقاعد.php 
https://alkhaleejonline.net/اقتصاد/دراسة-45-من-سكان-الإمارات-لا-يدخرون-أموالاً-للتقاعد 
https://uae71.com/posts/104004 


small_Press release block.jpg

thumbnail_Press release block.jpg

Press release block.jpg

33% of the world is financially literate; the UAE scores 30.7%

small_gulfnews.jpg

thumbnail_gulfnews.jpg

gulfnews.jpg

FDI to power UAE’s economy

Standard Chartered Plc is beefing up its private banking team in the UAE by 20% with new hires as it jostles with other global banks to serve the growing pool of the super-rich who are moving here from across the world.

The lender hired seven new bankers, all reporting to Nash Mithani, market head, private banking, UAE, and head, Global South Asia Community (GSAC).

They include Momin Jaffar, who joins as managing director and group head.

“The UAE continues to be a priority market for Standard Chartered, with the bank actively investing in talent and resources to meet the needs of its high and ultra-high-net-worth clients. This latest expansion reflects the bank’s strategy to remain at the forefront of private banking, leveraging its global network and local expertise to provide unparalleled services to this growing client segment,” said Vinay Gandhi, the global head of GSAC and regional head of AMEE, at Standard Chartered Global Private Bank.

Other international lenders, including JP Morgan Chase and Santander, have been reinforcing their private banking teams in the UAE as Dubai and Abu Dhabi have emerged as top destinations for the world’s super weathy.  DHF Capital S.A said a record 6,700 millionaires are expected to call the UAE home by the end of 2024; twice as many as in the US or Singapore.

The UAE billionaires’ aggregate wealth rose by nearly 405 to $138.7 billion, with the number of billionaires growing to 18 in 2024, UBS said in a recent report.

StanChart said the new hiring aligns with its ambition to build up capabilities to support the needs of high and ultra-high net worth (HNW and UHNW) clients.

Source: <a href="link" target="_blank"> Zawya </a>

This article was published on August 19th, 2024.

This comes as millionaire migration surges globally, with the UAE experiencing a notable influx of wealthy residents

The United Arab Emirates can expect a further influx in ultra-high net worth individuals relocations fuelled by tax benefits and new regulations, an expert told Arabian Business.

This trend, which experts say is likely to continue, is reshaping the region’s wealth management sector and driving significant infrastructure investments.

“The remarkable influx of UHNWIs from across the globe to the Middle East, and the United Arab Emirates in particular, has seen this community adapting to the UAE as their new home, reflecting strong confidence and a long-term commitment to be based out of the country,” said Tariq Nakhooda, Country Head, UAE at IQ-EQ, an investor services group.

Read more on <a href="https://www.arabianbusiness.com/money/wealth/uae-poised-for-long-term-uhnwi-influx-as-middle-east-hub-status-grows?utm_medium=email&utm_medium=email&utm_campaign=UAE%20poised%20for%20UNHWI%20influx%20MASSIVE%20Saudia%20flight%20ticket%20discount%20Tokenisation%20to%20fuel%20Dubai%20real%20estate%20growth%20072417%20AM&utm_content=UAE%20poised%20for%20UNHWI%20influx%20MASSIVE%20Saudia%20flight%20ticket%20discount%20Tokenisation%20to%20fuel%20Dubai%20real%20estate%20growth%20072417%20AM+CID_e098707829c10854b755ad01000b02cf&utm_source=Newsletters&utm_term=UAE%20poised%20for%20long-term%20UHNWI%20influx%20as%20Middle%20East%20hub%20status%20grows" target="_blank"> Arabian Business </a>

UAE poised for long-term UHNWI influx as Middle East hub status grows

Incoming high-net-worth individuals (HNWIs) are projected to invest a staggering $4.4 billion in Dubai property in 2024, representing a remarkable 76 percent increase from the previous year.

This surge in investment underscores Dubai’s growing appeal as a safe haven for the world’s wealthy elite.

Subscribe to read more on <a href="https://www.arabianbusiness.com/money/wealth/uae-millionaires-real-estate-investment-2024-dubai" target="_blank"> Arabian Business </a>



UAE’s HNWI influx to drive $4.4bn in Dubai real estate investments by year’s end

small_zawya.jpg

thumbnail_zawya.jpg

zawya.jpg

Standard Chartered expands UAE private banking team to serve growing pool of global ultra-rich

Gold prices recorded some volatility after a two-day rally as market participants adopted a cautious approach ahead of the upcoming US consumer inflation data release. With markets pricing in an 86% probability of a 25 basis points rate cut, the inflation figures could play a critical role in determining the Federal Reserve’s policy stance and its outlook for 2025. Higher expectations for a rate cut could support gold.

The short-term outlook for gold is also supported by anticipated rate cuts from major central banks. The European Central Bank (ECB), Swiss National Bank (SNB), and Bank of Canada (BoC) are all expected to ease policy this week, creating a generally supportive environment for the precious metal. Additionally, escalating geopolitical tensions, particularly in the Middle East continue to provide support to gold prices.

Gold’s positive sentiment is further strengthened by China’s intention to maintain a loose monetary policy stance for the year ahead and the People’s Bank of China (PBoC) resuming gold purchases after a six-month hiatus. The convergence of accommodative monetary policies, persistent economic uncertainty, and ongoing geopolitical tensions could provide a favourable backdrop for gold going forward.

Bas Kooijman, CEO of DHF Capital S.A., explores the evolving landscape of the gold market and asset allocation amid geopolitical tensions, particularly those stemming from the Middle East. Bas points to the recent interest rate cuts from the Federal Reserve as influences on the fluctuation of gold prices, suggesting that gold demand is likely to grow with risk aversion. He also comments on the prediction for gold prices to reach record highs of between 2100 and 2150 in the upcoming six months.

Focusing on investment strategies, Bas advises maintaining a balanced portfolio which incorporates both volatile and stable investment sectors. He advocates for a golden rule of sorts, assigning a five to ten percent net worth stake in physical gold, a less volatile alternative to ETF and futures. Keeping a keen eye on the equity markets of Europe and America is also discussed, as a means of capitalising on the current climate of heightened volatility and mitigating risk.

Part of DHF Capital's investment focus is on the technology industry, despite the volatility of the gold market. Bas highlights the increase in people returning to offices and the consequent rise in trading volume. The evolving role of artificial intelligence in the trading field is also deliberated, discussing the benefits and risks associated to this evolving technology. Bas emphasises the importance of regulation and risk limitation in this AI integration to ensure responsible use of technology.

Source: <a href="https://ausbiz.com.au/media/middle-east-tensions-stir-gold-market?videoId=33998" target="_blank"> ausbiz </a>

small_ausbiz.jpg

thumbnail_ausbiz.jpg

ausbiz.jpg

Middle East tensions stir gold market

Gold prices are rising to unprecedented levels, supported by central bank purchases as well as geopolitical concerns and monetary policy expectations. The upward momentum was sustained by expectations of multiple interest rate cuts by the Federal Reserve this year, although optimism was tempered by recent US nonfarm payroll and inflation data. Looking forward, market participants are anticipating the release of key US inflation figures and the minutes from the FOMC meeting on Wednesday to gauge the likelihood, timing, and amplitude of interest rate reductions by the Fed. The data could introduce volatility to the precious metals market. Central bank purchases, especially by China, remain a major supporting factor for gold, with other emerging markets institutions such as the Indian central bank also bolstering their reserves of the yellow metal. Despite reaching peak levels, gold prices remain supported by solid demand, evidenced by rising net long positions. However, following its strong surge, gold could be exposed to price corrections over the short term in particular if Wednesday's US data comes in stronger than expected.

Sources: <a href="https://www.investorideas.com/news/2024/mining/04092MarketAnalysis-Gold-Prices.asp" target="_blank"> Investorideas.com </a>

<a href="https://londonlovesbusiness.com/central-banks-drive-gold-prices-to-record-highs-amidst-uncertainty/" target="_blank"> London Loves Business </a>

small_investorideas.jpg

thumbnail_investorideas.jpg

investorideas.jpg

Central Banks Drive Gold Prices to Record Highs Amidst Uncertainty

Gold Market At Risk Ahead Of Key U.S. Inflation Data

In this engaging episode, host Hilmarie Hutchison sits down with Bas Kooijman to explore his inspiring journey from a young entrepreneur in IT to becoming the CEO of DHF Capital. Bas shares how his early exposure to technology shaped his career, from building websites at 16 to running a telecom company managing critical systems, including Amsterdam’s 112 emergency services.

Bas talks about the pivotal moment of selling his telecom company and transitioning to finance, driven by a desire for more balance in life. He discusses how his technical background in IT and data science informs his approach to algorithmic and AI-driven trading, emphasizing the rapid evolution of technology in finance.

Source: <a href="https://www.youtube.com/watch?v=i7yqC8dsB8w" target="_blank"> The Matrix Green Pill Podcast </a>

This podcast was published on June 4th, 2024.

Welcome to the latest episode of Cheque Point by Finance Middle East!

In this episode, Nivetha Dayanand, Editor of Finance Middle East, speaks with Bas Kooijman, Financial Asset Manager and CEO of DHF Capital S.A. about AI in investing.

The podcast offers insights into the challenges and opportunities associated with integrating AI into the investment process, as well as the potential for AI to revolutionize decision-making in asset
management.

Listen on <a href="https://open.spotify.com/episode/6wlI6ETUotu4CBPCvcTPcC?si=mDisKcHETgKFApJUhiER2Q&context=spotify%3Ashow%3A6pOUmraEsNSSWEK3bkKtLG&nd=1&dlsi=5bc610e131a2478c" target="_blank"> Spotify </a>

small_spotify.jpg

thumbnail_spotify.jpg

spotify.jpg

AI in investing: podcast

In this podcast, Bas Kooijman, CEO and Asset Manager of DHF Capital, talks about the impact of artificial intelligence. Based in Luxembourg, DHF has been making tailored financial products for institutional clients, as well as managing its own hedge fund strategies.

This podcast discusses some of the big changes in financial markets at the moment, including the forex and commodity markets and the international demand for gold. Bas also talks about portfolio strategy including diversification and hedging.

Of particular interest are his views about artificial intelligence and its impact on financial markets. He explains how DHF has been using AI within its own trading strategies for some years now. Bas explains that investors and traders need to exercise some caution when making use of AI tools and touches on some of the likely outcomes within markets as AI tech becomes more widely available. The wider impact of AI on society and the global economy is also discussed.

Listen to the podcast on [YouTube](https://www.youtube.com/watch?v=J2nRHij87Oo).

Podcast: How will AI impact the financial markets?

small_the_matrix_green_pill.jpg

thumbnail_the_matrix_green_pill.jpg

the_matrix_green_pill.jpg

The Matrix Green Pill Podcast || EP 221 || Bas Kooijman

This article was published on November 26, 2024.

Bas Kooijman, CEO and Asset Manager of DHF Capital S.A. discusses how innovation, technology, and human expertise are reshaping asset management, offering unique solutions to enhance client experience and financial success.

**Can you discuss a recent innovation that has made an impact on your operations, the larger industry, or your customers?**

One of the most significant innovations we’ve implemented at DHF Capital has been the development of our proprietary asset management software. This system integrates advanced algorithms that allow us to rebalance client portfolios in real time, ensuring that we are always adjusting to market volatility while aiming for steady returns. In the world of financial management, especially in markets like Forex, this is a game-changer. It enables us to offer a level of risk management and efficiency that was previously only available to high-net-worth individuals or large institutional investors. Our goal with this tool has been to democratize wealth creation by making sophisticated asset management strategies more accessible to a broader audience.

The innovation also aligns with our broader vision of blending human expertise with cutting-edge technology. While the software handles the day-to-day intricacies of portfolio management, it’s still overseen by our experienced traders who can step in during market shifts that require more nuanced decision-making. The combination of automation and human oversight ensures that we maintain a competitive edge while minimizing risk for our clients.

It has had a ripple effect on the larger financial industry as well, pushing other firms to reconsider how they approach risk management and client accessibility. Ultimately, it’s about providing our clients with peace of mind, knowing that their investments are being managed with the highest level of care and innovation.

**What were the biggest lessons while implementing this innovation?**

One of the key lessons we learned while developing and rolling out our proprietary asset management software was the importance of blending technology with human expertise. In the early stages, we began with a more manual approach to trading and gradually integrated automation. While automation has enhanced efficiency and accuracy, particularly for entry points, it still requires human oversight. Our traders play a critical role in monitoring the system, assessing market conditions, and making judgment calls when necessary.

Another significant lesson revolves around communication and transparency. To build trust, we prioritize open dialogue with our clients, explaining the functionality and advantages of our established systems. This commitment to transparency has facilitated smoother interactions and greater confidence in our processes.

We realized that implementing innovation extends beyond the technology itself. The true challenge lies in integrating it into the company’s processes and culture. Ensuring that our team is fully trained and comfortable with the evolving system is as important as the software’s development.

**How do you foster a successful work environment?**

Creating a successful work environment, in my view, starts with fostering a culture of trust, accountability, and innovation. At DHF Capital, I believe in empowering our team members to take ownership of their responsibilities and make decisions independently. Autonomy, combined with clear accountability, allows people to feel more invested in their work, which leads to better outcomes both for the individual and for the company.

One of the ways we promote this is through open communication. I make it a point to ensure that every team member, regardless of their role, feels comfortable sharing their ideas and feedback. This creates a collaborative environment where innovation can thrive. We’re constantly looking to improve, and often the best ideas come from within. Encouraging an open exchange of ideas helps us stay ahead of market trends and challenges.

Flexibility is another key factor. We live in a world where the lines between work and personal life are increasingly blurred, so offering flexibility helps our team maintain balance. This is crucial for overall well-being and productivity. Whether it’s allowing remote work or offering flexible hours, I’ve found that when people have control over their schedules, they’re more motivated and effective.

Lastly, continuous learning is something we prioritize. The financial industry is always evolving, and staying informed is essential. We encourage our team to pursue professional development opportunities, whether through courses, seminars, or certifications. A culture of learning not only keeps us competitive but also keeps the team engaged.

**What inspired you to enter the investment and financial management industry?**

My entry into the financial management industry wasn’t exactly planned, but it was inspired by necessity. During my time running a telecom company, I was managing operations in over 35 countries, which brought with it a host of financial complexities. Navigating multi-currency exchanges, managing cash flow across various markets, and hedging against risks were all part of my day-to-day responsibilities. It was during this time that I realized just how intricate and vital financial management is, particularly for a global company.

After selling the telecom business in 2015, I was eager to take what I had learned about financial complexity and apply it in a way that could benefit others. The transition into the financial world felt natural because, in many ways, I had already been practising financial management on a large scale. I saw an opportunity to not only build wealth for myself but to help others do the same. That’s when I co-founded DHF Capital, with the vision of making wealth creation more accessible, transparent, and tailored to individual needs.

What really drives me in this industry is the challenge and the responsibility. Managing people’s investments is a huge responsibility, but it’s also incredibly rewarding. Knowing that we can help people achieve their financial goals, whether it’s for retirement, education, or just building a safety net, is what keeps me motivated.

**Can you share a particular moment in your career that significantly influenced your leadership style?**

The sale of my telecom company in 2015 was a turning point in my career and significantly shaped my leadership style. The process of selling the business was intense, requiring a lot of rapid decision-making and strategic thinking. It was during this time that I learned the importance of remaining calm under pressure and thinking several steps ahead. I had to ensure that every decision was calculated, not just for the short term but also for the long-term health of the business and the people involved.

This experience taught me that leadership is about more than just managing the day-to-day—it’s about being prepared for critical moments and navigating them with clarity and confidence. It also reinforced the importance of having a strong, reliable team around you. The sale was successful not just because of my decisions, but because I had a team that I trusted to execute those decisions effectively.

Moving into the financial industry, I brought these lessons with me. At DHF Capital, I emphasize the importance of building a strong team, taking calculated risks, and always being prepared for market shifts. These principles have been central to my leadership approach and have shaped how we operate as a company.

**In hindsight, is there anything you wish to have done differently in your career or as a leader?**

Looking back, I recognize that my approach to technology adoption could have evolved differently. While we’ve embraced innovation at DHF Capital, I believe we could have explored some advanced technologies earlier. Our proprietary asset management software has significantly impacted our growth, but the gradual development of this software has been key in ensuring its effective integration and functionality alongside human oversight.

Regarding market expansion, I recognize the importance of calculated risk-taking. We made substantial investments four years ago to initiate our growth in the GCC, particularly in Dubai, and we expanded to Bahrain when opportunities arose. Opening an office in Switzerland earlier this year also reflects our commitment to strategic growth. Instead of solely focusing on stability, I believe a more proactive approach to seizing opportunities could have further accelerated our expansion.

Ultimately, every decision and experience has shaped my journey as a leader. While there are areas where I might have approached things differently, I appreciate the lessons learned along the way and how they have contributed to my growth.

**What is your strategy to manage and avoid burnout?**

Burnout is something I take seriously, both for myself and for my team. The demands of running a company, especially in the high-stakes world of financial management, can be overwhelming. My strategy to manage burnout is to maintain balance in all aspects of life. Personally, I make sure to take regular breaks to disconnect from the daily pressures. Whether it’s spending time with family or simply stepping away from the office for a few days, those breaks help me reset and come back with a clearer perspective.

Another important strategy is delegation. I trust my team implicitly, and I’ve structured DHF Capital in such a way that I can delegate responsibilities without worrying about things falling apart. Having a reliable team in place gives me the flexibility to focus on the bigger picture and take time off when needed.

For the team, I emphasize the importance of work-life balance. We offer flexible working conditions and encourage people to take time for themselves. I believe that when people are well-rested and mentally healthy, they’re more productive and more innovative. Burnout isn’t just bad for individuals—it’s bad for the company. That’s why it’s something we actively work to avoid.

Source: <a href="https://www.gulf-insider.com/leading-innovation-in-finance-bas-kooijman-ceo-dhf-capital/" target="_blank"> Gulf Insider </a>

Open a high-yield savings account early to benefit from compounding interest and take out insurance cover

Money, Money, Money — Swedish pop group Abba were dreaming about it when they released their hit song in 1976.

Fast forward to October 2021 and the fantastic foursome had reportedly rung in a fortune of more than $1 billion.

If that is not the definition of securing your financial future, I am not sure what is.

Unfortunately, we can't all be billionaires. Of the approximately eight billion people walking the planet, only 3,331 have achieved this feat, according to Statista.

China leads the world with 1,133 billionaires and the most recent reports suggest that only 13 people in the UAE can stake such a claim.

With that said, Dubai also houses 200-plus centimillionaires (people with a net worth of more than $100 million) and around 68,000 millionaires, according to the Henley Global Citizens Report.

In Abba’s words: “... and still there never seems to be a single penny left for me — that’s too bad.”

But there is still plenty of money to go around; RankRed data shows that about $40 trillion is currently in circulation.

I think it is safe to say that you cannot secure all of it, but with a little bit of strategy and inspiration from the "Abba effect", you can get enough to solidify your family’s financial future.

Long-term horizon

Financial savviness is similar to a healthy diet. If you are trying to get in shape, it might be tempting to chow down on a burger and fries before washing it down with a milkshake, but it is not going to help you reach your long-term fitness goals.

You should opt for salads, water and tea while still enjoying a tasty treat from time to time — when you can afford to.

So, rather than thinking primarily about what’s best right now, your family will be better served if you think about what is best for them five, 10 or 15 years ahead.

For instance, if you are a new parent, or about to be one, you can open a high-yield savings account for your children and deposit increments of money that will compound over time.

With an initial deposit of $100, and then an additional $100 every month for 18 years at a 10 per cent annual percentage yield, your child will be able to start their adult life with a cushion of more than $55,000.

It will also set an example for them to do the same as they continue in life, and if they do this until they are 46, they will have more than $1 million in savings, according to consumer financial services company Bankrate.

Secure your life, secure their future

Last October, Zurich International Life polled 500 UAE-based respondents to understand how they would cope financially should they be diagnosed with a severe illness.

About eight in 10 were worried that becoming seriously ill would deplete their savings.
These concerns explain why more people have been opting for insurance coverage since the Covid-19 pandemic to protect themselves and their families from unseen risks.

Life insurance is an often overlooked component of financial security but two strong options are term life insurance and permanent life insurance.

The former offers coverage for a set amount of time, while the latter covers you for your entire life.
Depending on your situation and budget for premiums, select the best plan for you to add another layer of financial security if you pass away.

Seek financial assistance

Setting clear goals, budgeting to save, paying off debts and investing when possible are all strongly encouraged means of securing your family’s financial future.

However, if you choose to take on the responsibility of ensuring that the money you make and save is for the betterment of your family, it is important to view your finances objectively.

With 20 per cent of UAE residents saying they have less disposable income than a year ago, according to a recent YouGov survey, it could be helpful to seek guidance from a trusted financial adviser.

Since money is often an emotional subject, it is easy for your choices to become skewed based on what is most exciting, opportunistic or enjoyable at the moment.

These short-term decisions have long-term ripple effects that tend to produce less-than-ideal results.

Financial advisers can help you avoid these pitfalls by outlining a clear strategy that places you and your family on the right path.

By looking at your financial situation holistically, an adviser will take into account your goals and risk profile to devise a plan that is achievable for you.

The question is, do you want to be Abba in 1976 or 2021?

Source: https://www.thenationalnews.com/weekend/2023/04/28/how-the-abba-effect-can-help-secure-your-familys-finances/ 


How the 'Abba effect' can help secure your family's finances

small_gulf_insider (1).jpg

thumbnail_gulf_insider (1).jpg

gulf_insider (1).jpg

Leading Innovation in Finance: Bas Kooijman, CEO, DHF Capital

Gold remains range-bound as markets adopt a cautious stance ahead of key U.S. employment data and Federal Reserve Chair Jerome Powell’s upcoming remarks. Powell’s comments, that come before the Federal Reserve’s December 18 meeting, are highly anticipated for potential insights into the central bank’s approach to interest rate adjustments. The measured tone from Fed officials emphasizes the uncertainty surrounding policy direction.

Market participants are closely monitoring the potential impact of Donald Trump’s re-election, with expectations that expansionary fiscal policies could add to inflationary pressures. This has led to speculation that the Federal Reserve may take a more conservative approach to interest rate cuts, possibly extending into 2025, which could weigh on gold. Additionally, today’s ADP employment report and Friday’s U.S. payrolls data are expected to provide key insights for the Fed’s upcoming policy decisions, particularly as it focuses on labor market strength. 

At the same time, gold could continue to find support as traders face key geopolitical risks, concerns over President-elect Trump’s proposed tariff measures, and political instability in South Korea and France. These factors could reinforce the demand for gold as a safe-haven asset amidst broader economic and political uncertainties.

Source: <a href="https://londonlovesbusiness.com/gold-prices-hold-steady-as-markets-await-powells-comments-and-key-us-jobs-data/" target="_blank"> London Loves Business </a>

Gold experienced a significant decline on Tuesday following the release of the highly anticipated US inflation data, which came in hotter than expected.

Both the headline and core Consumer Price Index (CPI) figures exceeded forecasts as inflation remained stubbornly higher than hoped.

Treasury yields climbed higher in reaction, with 2-year yields surpassing 4.6% adding to the pressure on gold prices.

Hopes for an interest rate cut in May declined significantly after the inflation data release and have now shifted toward June. High interest rates for longer could weigh on gold’s prospects over the coming weeks.

Traders could now turn to other data releases later this week for more clues on the state of the US economy and potential changes in monetary policy expectations.

A stronger dollar could also weigh on gold. The currency has been improving since the beginning of the year and could continue to do so if interest rates remain high. However, gold could find some support over the medium term as markets continue to see rate cuts happening later this year.

Additionally, geopolitical developments and potential economic issues in other regions could attract investors toward the asset.

Source: <a href="https://londonlovesbusiness.com/gold-prices-slide-on-inflation-data/" target="_blank"> London Loves Business </a>

Gold prices slide on inflation data

Gold prices hold steady as markets await Powell’s comments and key US jobs data

The dollar started the month on a strong note, driven by internal and external factors in a week packed with crucial economic data on both sides of the Atlantic. Domestically, Donald Trump's recent warning of imposing a 100% trade tariff on BRIC nations if they move to replace the greenback, added pressure to the currency markets, lifting U.S. treasury yields across all maturities.

In addition, a resilient U.S. economy has also supported the dollar. Investors are now cautiously awaiting upcoming key economic data, including the ISM PMI, ADP and Nonfarm Payrolls scheduled for this week. Furthermore, speeches by several Fed officials, including Chair Jerome Powell on Wednesday, will be closely monitored. Robust economic data, coupled with a less dovish monetary policy stance, could sustain the dollar’s upward momentum.

Externally, the ongoing political turmoil in France and the upcoming European economic data have heightened uncertainty regarding the region’s economic stability, weighing down on the Euro. This uncertainty could demand for other major currencies, further fuelling the dollar’s appeal.

Source: <a href="https://londonlovesbusiness.com/dollar-strengthens-amid-trade-tensions-and-economic-resilience/#google_vignette" target="_blank"> London Loves Business </a>

The US dollar remained relatively steady for the second consecutive day following remarks from Federal Reserve Chair Jerome Powell. The comments were closely followed as traders looked for new information regarding the direction the Federal Reserve might be taking. This affected market sentiment to a certain extent although Powell refrained from giving any clear signals. However, Powell’s cautious optimism concerning inflation could support bets that the Fed could take a softer approach soon. Expectations for a September interest rate cut remain elevated while markets price an additional rate cut this year, bringing the total to three for 2024.

This shift has notably affected Treasury yields which have been under pressure in anticipation of the highly expected rate cuts. Increasing expectations of a softer monetary policy could drive yields lower still. In this regard, 10-year Treasury yields are well below this year’s peak and could move under this month’s lows if economic data supports current market expectations.

Looking ahead, the trajectory of the dollar and Treasury yields will heavily depend on forthcoming US economic data, particularly June’s retail sales figures expected later today. Market consensus anticipates unchanged retail sales for June, compared to a 0.1% increase in April, indicating expectations of a weakened consumer sentiment. Persisting softness in consumer spending may further impact the dollar and Treasury yields in the near term.

Sources: <a href="https://londonlovesbusiness.com/dollar-remains-on-a-steady-course-after-powells-remark/" target="_blank"> London Loves Business </a>

<a href="https://www.tradingview.com/news/DJN_DN20240716002125:0/" target="_blank"> Trading View </a>

<a href="https://www.google.com/url?rct=j&sa=t&url=https://www.investorideas.com/news/2024/main/07163Dollar.asp&ct=ga&cd=CAEYACoTNzI0NzYxMTk2MjYzNzAyNzI4NDIcODdiMThhNjExNWE2MWI2Mzpjb206ZW46VVM6TA&usg=AOvVaw1LmWv-ZpF_dAqe_64ylVNT" target="_blank"> Investor Ideas </a>

Dollar Steady Course After Powell’s Remark

The US dollar remained relatively flat during the early European session following a weak performance on Tuesday, attributed to dovish comments from Federal Reserve Chair Jerome Powell. Despite a robust domestic jobs report, US bond yields declined. Powell’s remarks suggested that the US economy is on a “disinflationary path”, which put the greenback on the defensive. However, Powell reiterated the Fed’s stance on requiring comprehensive data before considering rate cuts, emphasising the central bank’s data-dependent approach. 

The upcoming inflation readings will be crucial in shaping future US interest rate decisions. In May, US core consumer prices increased by 0.2% month-on-month, moderating from April’s 0.3% uptick and marking the slowest rise in seven months. If inflationary pressures continue to moderate in June, the dollar could continue to experience limited upside in the near term. 

Market participants are anticipating up to two rate cuts from the Fed this year. This dovish stance could pressure Treasury yields to the downside. Furthermore, the release of the minutes from the Fed's June meeting later today is highly anticipated, as it could provide further insights into the Fed's current policy stance in addition to the PMI data, both of which could impact the US currency and yields.

Source: <a href="https://londonlovesbusiness.com/the-dollar-stable-despite-powells-dovish-remarks-awaiting-fed-minutes-impact/#google_vignette" target="_blank"> London Loves Business </a>

The dollar stable despite Powell’s dovish remarks awaiting Fed minutes impact

Dollar strengthens amid trade tensions and economic resilience

El Gobierno francés pende de un hilo ante una posible moción de censura

Cara y cruz en el mercado de divisas. Mientras el dólar estadounidense sigue dando muestras de fortaleza desde la victoria de Donald Trump en las elecciones presidenciales de EEUU, el euro se mantiene bajo presión ante los múltiples desafíos que asolan al Viejo Continente. Así, la divisa comunitaria se deprecia un 0,90%, hasta los 1,0481 'billetes verdes' con los fantasmas de la paridad acechando.

En Europa, todas las miradas están puestas sobre la caótica situación política de Francia después de que el primer ministro, Michel Barnier, haya aprobado por decreto los Presupuestos para 2025, lo que ha provocado que la oposición presente una moción de censura que será debatida, con toda probabilidad, el próximo miércoles en la Asamblea Nacional.

El partido de extrema derecha de Marine Le Pen ha comunicado en una publicación en su perfil de X que votará contra el primer ministro. "No importa quién presente la moción de censura contra Barnier, votaremos por todos", ha avanzado. "Le presenté nuestras líneas rojas y no ha querido aceptarlas. No podemos aceptar estos presupuestos profundamente injustos porque hacen pagar a los franceses la incompetencia de Macron", ha añadido Le Pen.

"Como resultado, los índices europeos están en números rojos, los rendimientos franceses probablemente revertirán las caídas del jueves y viernes pasados, el diferencial entre los rendimientos de Alemania y Francia podría superar los 100 puntos básicos, y el euro está bajo presión", valora Ipek Ozkardeskaya, analista sénior de Swissquote Bank.

La estabilidad económica de la región es otro de los puntos en contra del euro. De hecho, el sector manufacturero de la eurozona se ha deteriorado a un ritmo más rápido en noviembre, en base al índice PMI. "Es como si la recesión manufacturera de la zona euro nunca fuera a terminar". "No hay señales de una recuperación a corto plazo", comentan en Hamburg Commercial Bank.

"Esta incertidumbre podría generar demanda de otras monedas importantes, lo que aumentaría aún más el atractivo del dólar", comenta Bas Kooijman, director ejecutivo y gestor de activos de DHF Capital SA.

Precisamente, en el lado contrario se encuentra el dólar, que ha comenzado el mes de diciembre con una nota fuerte, impulsado por factores internos y externos. "La reciente advertencia de Trump de imponer un arancel comercial del 100% a los países BRIC si deciden reemplazar al dólar, agregó presión a los mercados de divisas, lo que elevó los rendimientos de los bonos del Tesoro estadounidense en todos los vencimientos", explica el analista.

La resiliencia de la economía estadounidense también ha respaldado al dólar y junto con una postura de política monetaria menos moderada, podrían "sostener su impulso alcista", concluye Kooijman.

Source: <a href="https://www.bolsamania.com/noticias/pulsos-divisas/euro-cae-tension-politica-francia-mientras-dolar-mantiene-atractivo--18230424.html" target="_blank"> Bolsamania </a>

This article was published on 18th July, 2024.

Los futuros del Euro Stoxx 50 anticipan una apertura prácticamente plana. El Ibex 35 cerró ayer con un alza del 0,13% y logró reconquistar los 11.100 puntos. Los inversores están pendientes hoy de la reunión del BCE y de los resultados empresariales. Wall Street cerró anoche en terreno mixto, con un nuevo récord en el índice Dow Jones, que superó los 41.

Sin embargo, el componente fiscal podría entrar a jugar un papel importante”. Bas Kooijman, CEO y Gestor de Activos de DHF Capital: “Los precios del oro alcanzaron máximos históricos el miércoles debido a las crecientes expectativas de un recorte de los tipos de interés estadounidenses en septiembre, tras las recientes declaraciones de los responsables de la Reserva Federal.

Source: <a href="https://headtopics.com/es/cautela-en-las-bolsas-con-un-ojo-en-los-resultados-y-otro-56040840" target="_blank"> Head Topics </a>

medium_headtopicsespana.jpg

small_headtopicsespana.jpg

thumbnail_headtopicsespana.jpg

headtopicsespana.jpg

(ES) Cautela en las Bolsas con un ojo en los resultados y otro en el BCE

«El oro se mantiene estable cerca del nivel de 2.500 dólares y continuó cotizando dentro de un rango cercano durante varios días. Los inversores podrían mantener la cautela mientras siguen de cerca los posibles movimientos de la Reserva Federal en materia de tasas de interés y el cambio de expectativas tras los últimos datos económicos.

El último informe sobre el empleo en EE.UU. mostró que se crearon menos puestos de trabajo de los esperados, con importantes revisiones a la baja para junio y julio, mientras que la tasa de desempleo bajó al 4,2% desde el 4,3% de julio.

Este informe mixto limitó la probabilidad de un recorte de tasas de 50 puntos básicos, aunque todavía se espera que la Reserva Federal recorte las tasas en 125 puntos básicos en total este año. En consecuencia, los precios del oro podrían mantenerse en una banda de fluctuación a la espera de nuevos acontecimientos.

La atención se centra ahora en el próximo informe sobre la inflación en Estados Unidos. Una inflación inferior a la prevista podría aumentar las posibilidades de mayores recortes de tasas, lo que probablemente beneficiaría al metal precioso.

Al mismo tiempo, los retos económicos tanto en EE.UU. como en China, junto con las próximas elecciones en EE.UU., podrían seguir apoyando al oro como activo refugio».

Source: <a href="https://worldenergytrade.com/el-precio-del-oro-mantiene-estabilidad-relativa-previo-a-los-datos-de-inflacion-de-eeuu/" target="_blank"> World Energy Trade </a>

small_worldenergytrade.jpg

thumbnail_worldenergytrade.jpg

worldenergytrade.jpg

(ES) El precio del oro mantiene estabilidad relativa previo a los datos de inflación de EEUU

small_bolsamania.jpg

thumbnail_bolsamania.jpg

bolsamania.jpg

(ES) El euro cae ante la tensión política en Francia mientras el dólar mantiene su "atractivo"

This article was published on November 15, 2024.

Gold prices rose to records leading up to the presidential election, but they’ve slumped ever since, ending today’s trading with the biggest weekly price decline since the Covid lockdown in March 2020.

Gold futures fell for the seventh time in eight trading sessions since the election and are now 8% off the all-time high of $2,788.50 a troy ounce hit on Oct. 30. Shares of the huge SPDR Gold Shares exchange traded fund-a popular way for individual investors to trade gold-are down 8% from their peak and on track for a six-day losing streak.

Source: <a href="https://www.wsj.com/finance/commodities-futures/gold-edges-higher-upcoming-data-to-determine-sentiment-aae7448e" target="_blank"> The Wall Street Journal </a>

Gold prices plunged nearly three dirhams per gram in the UAE on Thursday morning after the US Federal Reserve paused rates hikes.

According to Dubai Jewellery Group data, the 24K was trading at Dh234.25 at the opening of the markets as compared to last night’s close of Dh237.0 per gram, down Dh2.75 per gram. Similarly, 22K, 21K and 18K also opened lower at Dh216.75, Dh209.75 and Dh180.0 per gram respectively.

Spot gold was trading in the negative territory at $1,931.98 per ounce at 9.18 am UAE time.

The Fed refrained from raising interest rates at the end of the meeting on Wednesday. However, analysts expect further rate hikes later this year, rising from 5.0-5.25 to a range of 5.50-5.75 per cent by the end of 2023.

The drop in prices will boost demand for the precious metal and its jewellery in the UAE.

The Dubai-based financial services provider Century Financial said a break below $1,930 can instil corrections towards $1,912 followed by $1,890.

Bas Kooijman, CEO and Asset Manager of DHF Capital, said the UAE’s precious metals market, including gold, jewellery, gold bars and silver, was valued at Dh8.52 billion in 2020 and it is expected to reach a value of Dh13.21 billion by the end of the decade at a compound annual growth rate of 3.66 per cent through 2030.

Sources: [Khaleej Times](https://www.khaleejtimes.com/business/markets/time-to-buy-uae-gold-prices-plunge-nearly-dh3-per-gram?amp=1)
[Zawya](https://www.zawya.com/en/markets/commodities/time-to-buy-uae-gold-prices-plunge-nearly-082-per-gram-a7vifgct)
[UAE Times](https://uaetimes.ae/time-to-buygold-prices-plunge-nearly-dh3-per-gram-in-uae-news/)

small_khaleejtimes.jpg

thumbnail_khaleejtimes.jpg

khaleejtimes.jpg

Time to buy? UAE gold prices plunge nearly Dh3 per gram

Gold prices stabilized to a certain extent as traders reacted to the efforts deployed by the US to contain the geopolitical tensions in the Middle East. A political deal between all parties involved could relieve the tensions and pull gold to the downside.

The concerns about a flare-up in the region have boosted the commodity during the last few days after a long decline from this year’s peak under the weight of the US monetary policy expectations and the dollar’s strength.

Over the short term, gold prices could continue to fluctuate in response to the developments in the Middle East. The uncertainty could result in more volatility and caution while the next steps in the conflict could generate significant risks and could affect risk sentiment.

The tensions could see investors favor safe-haven assets in general as they err toward the side of caution as risks continue to accumulate. As a result, a longer and more violent conflict could see gold prices surge.

At the same time, monetary policy could remain a potent force in the market as traders continue to consider its potential developments. Gold could continue to react to new economic data releases as traders reassess their expectations. Stronger-than-expected economic figures could create additional pressure on gold prices.

Source: [London Loves Business](https://londonlovesbusiness.com/geopolitical-risks-support-gold-prices-uncertainty-ahead/)

Geopolitical risks support gold prices, uncertainty ahead

Has Gold Lost Its Luster?

This article was published on November 20, 2024.

Gold futures extended gains for a third straight session Wednesday, as investors continued to follow safe haven trading on geopolitical worries that have ratcheted higher since Russia's Vladimir Putin lowered the threshold for a nuclear strike in response to a broader range of missile attacks from Ukraine.

The Russia-Ukraine war is re-emerging as a key support factor for gold, and analysts say the risks could contribute to more buying interest in gold and provide a foundation for sustained interest in the metal going forward, although persistent pressure from a stronger U.S. dollar could continue to cap gains.

Robust economic data and concerns over potential tariffs and tax cuts could heighten inflationary risks and lead to a potential pause in Federal Reserve interest rate cuts, which could create additional downward risks for non-interest bearing gold in the near-term, DHF Capital's Bas Kooijman said.

Front-month Comex gold (XAUUSD:CUR) for November delivery ended +0.8% to $2,648.20/oz, its best settlement since November 8, but front-month November silver (XAGUSD:CUR) closed -0.8% to $30.956/oz.

ETFs: (NYSEARCA:GLD), (NYSEARCA:GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (RING), (BAR), (OUNZ), (SLV), (PSLV), (SIVR), (SIL), (SILJ)

Gold will rally to $2,900/oz by the end of next year, according to analysts at UBS, echoing Goldman Sachs' outlook earlier this week for further gains.

Following a likely period of consolidation due to the stronger dollar and concerns over the potential for higher rates in the U.S., UBS analysts including Levi Spry and Lachlan Shaw said they see gold climbing again.

"The U.S. Red Sweep, strong diversification buying interest and elevated global uncertainty [will] continue to support prices... driven by continued strategic gold allocations and official-sector purchases in a backdrop of high macro volatility and persistent geopolitical risks," UBS said.

Like Goldman's $3,000 gold forecast, the UBS bullish view also anticipates higher demand from central banks and stronger flows to ETFs.

"The official sector, which tends to buy physical gold bars, is likely to continue adding to reserves, for diversification purposes and amid geopolitical tensions and sanctions risks," UBS wrote, adding that "many central banks' gold reserves remain small as a percentage of total assets."

Source: <a href="https://seekingalpha.com/news/4314074-ubs-joins-goldman-among-big-banks-predicting-resumption-of-gold-rally" target="_blank"> Seeking Alpha </a>

Gold prices remained steady, holding recent gains as investors await the Federal Reserve’s policy decision later today. The key focus is whether the Fed will cut its interest rates by 25 or 50 basis points. A larger cut of 50 basis points could further support gold, a non-yielding asset, as the dollar declines. The market will also monitor Fed Chair Powell’s comments and the Dot Plot projections for clues on future rate cuts.

A 25 basis point cut might have a short-term negative impact on gold and offer some support to the dollar. However, the overall outlook for gold remains positive, as global central banks are beginning to ease monetary policies. Market participants are also paying attention to the Bank of England’s decision on Thursday and the Bank of Japan’s update on Friday for additional insights.

Apart from monetary policy, ongoing geopolitical tensions in the Middle East and U.S. political uncertainty ahead of the November election could continue to support the precious metal. Strong demand from central banks and increased gold ETF inflows are also contributing to gold’s upward momentum.

Source: <a href="https://londonlovesbusiness.com/gold-remains-stable-ahead-of-fed-policy-decision/" target="_blank"> London Loves Business </a>

Gold Remains Stable Ahead of Fed Policy Decision

On Wednesday, gold reached a new all-time high of $2,758 driven by strong momentum amid US political uncertainty, geopolitical tensions in the Middle East, and global central banks' easing policies.

These factors are once again fueling sustained demand for gold as a safe haven.

“With the US presidential election just over two weeks away, polls suggest that former President Donald Trump's chances of winning are increasing. This possibility is prompting investors to seek more safe-haven assets like gold to hedge against potential controversial policies he might implement, which could impact inflation, monetary policy, and global trade,” wrote Bas Kooijman, CEO and Asset Manager of DHF Capital S.A.

“Additionally, the persistent geopolitical tensions in the Middle East are supporting gold prices, as demand for safe haven assets grows with no clear signs of de-escalation in the near term.”

The big gold story of the week was Newmont Corporation (NYSE:NEM, TSX:NGT, ASX:NEM, ETR:NMM)'s 3Q earnings miss, which caused the gold producer to lose nearly 10% of its market value.

Elsewhere, gold juniors were making news with tidy capital raises, new metallurgy results and continued exploration pushes. Here’s some of the gold stories making news this week.

Source: <a href="https://www.proactiveinvestors.com/companies/news/1059196/gold-recorded-new-all-time-high-this-week-as-us-election-geopolitical-tensions-heat-up-1059196.html" target="_blank"> Proactive </a>