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Friday, January 24, 2025

Saudi economy minister says $600 billion package with US includes investments, procurement

 Saudi Economy Minister Faisal Alibrahim said on Friday that the $600 billion of expanded investment and trade with the United States mentioned by Saudi Crown Prince Mohammed bin Salman includes investments as well as procurement from the public and private sectors.

The state news agency said on Thursday that the crown prince had affirmed the kingdom's intention to broaden its investments and trade with the United States over the next four years, in the amount of $600 billion, and potentially beyond that.

"This number represents investments, procurement, public and private sector, and it's just a mirror reflection of the strong relationship," Alibrahim said on a panel at the World Economic Forum in Davos when asked if the kingdom would increase the figure to $1 trillion, as U.S. President Donald Trump suggested to the forum on Thursday.

"What we'll spend in the economy from the start of Vision 2030 to 2030 is 12 times that number," Alibrahim said.

Asked if Saudi Arabia would reduce the price of oil - after Trump told Davos he would tell the kingdom and OPEC to do so - he said Riyadh was focused on long-term oil market stability.

Oil prices fell following Trump's remarks on Thursday.

Vision 2030 is an ambitious agenda launched in 2016 aimed at overhauling the Saudi economy to cut reliance on hydrocarbons, create jobs and build new industries.

"The kingdom's position, OPEC's position, is all about long-term market stability to make sure that there's enough supply for the growing demand," including from the U.S. and for artificial intelligence, he said.

Alibrahim also said a World Economic Forum gathering will regularly be held in Saudi Arabia starting in the spring of 2026, after it hosted a meeting last year.

https://www.aol.com/news/saudi-economy-minister-says-600-120028925.html

Russian companies expect 2025 inflation above 10%, central bank survey shows

 Russian companies surveyed by the central bank expect inflation in 2025 of 10.7%, more than double the official forecast, and named labour shortages as one of the main factors stopping them expanding production, the central bank said on Friday.

It held interest rates at 21% in December, surprising the market which had been bracing for another hike to as high as 23%. Inflation in 2024 was the fourth highest rate in the last 15 years at 9.52%, compared to 7.42% in 2023 and well above the bank's 4% target.

The central bank's survey of almost 15,000 companies showed that businesses, when forming plans for 2025, accounted for annual inflation of 10.7% on average.

Credit conditions remained tight in January, the report said, and the central bank said it would take elevated inflation expectations into account when it next meets to set rates on Feb. 14.

Companies' expectations for the change in prices of their goods over the coming three months remained steady in January after rising for four consecutive months, the survey showed.

The central bank also said that its business climate indicator was at its lowest monthly level in January for two years.


https://uk.finance.yahoo.com/news/russian-companies-expect-2025-inflation-130328676.html

Fed's rate-cut view set to test resurgent US stocks rally

 The Federal Reserve's first meeting of 2025 in the coming week stands to test the resurgence in U.S. stocks as investors gauge the extent of more equity-friendly interest rate cuts in the months ahead.

Stocks swooned after the Fed's last meeting in December, when the central bank downgraded its forecast for rate cuts as it braced for firmer inflation this year.

Since then, monthly data that showed underlying inflation moderated set off relief on Wall Street, helping drive a rebound in stocks with the benchmark S&P 500 (^GSPC) hitting a record high this week.

The Fed is broadly expected to pause its easing cycle when it gives its monetary policy statement on Wednesday, with investors instead focused on "what would need to happen for them to start talking about resuming the rate cuts," said Angelo Kourkafas, senior investment strategist at Edward Jones.

Given recent data indicating strong economic activity, Kourkafas said, "there's wide expectations that the Fed has no urgency to continue cutting until we get potentially more encouraging inflation data."

The Fed's benchmark rate stands at 4.25% to 4.5% after the central bank lowered it by a full percentage point last year. The Fed's easing cycle began after rate hikes had helped bring down inflation from 40-year highs, although it remains above the Fed's 2% annual target.

Fed funds futures are pricing in about 40 basis points more of easing — or nearly two more cuts — by December, according to LSEG data.

Morgan Stanley economists expect Fed Chair Jerome Powell will keep the possibility of a cut at the Fed's March meeting "on the table."

"If we are right in our assessment of the incoming data flow, then we think the Fed can stay on hold in January and retain its easing bias," the Morgan Stanley economists said in a note.

Meanwhile, President Donald Trump said on Thursday he wants the Fed to cut rates, even as the central bank is expected to pause for an uncertain duration.

Stocks have started the year strongly, with the S&P 500 up about 4% so far in January, following back-to-back years of gains of over 20%.

Investors this week digested a flood of activity by Trump after his second term began on Monday, including his announcement of private sector investment in artificial intelligence infrastructure that propelled a broad tech stock rally.


https://finance.yahoo.com/news/feds-rate-cut-view-set-111116379.html

HCA Holdings (HCA) Tops Q4 EPS by 8c, Offers Guidance, Approves $10B Buyback

 HCA Holdings (NYSE: HCA) reported Q4 EPS of $6.22, $0.08 better than the analyst estimate of $6.14. Revenue for the quarter came in at $18.29 billion versus the consensus estimate of $18.23 billion.

  • The HCA Healthcare, Inc. Board of Directors has authorized an additional share repurchase program for up to $10 billion of the Company’s outstanding common stock. Repurchases will be made in accordance with applicable securities laws and may be made at management’s discretion from time to time in the open market, through privately negotiated transactions, or otherwise. The repurchase program has no time limit and may be suspended for periods or discontinued at any time.

GUIDANCE:

HCA Holdings sees FY2025 EPS of $24.05-$25.85, versus the consensus of $24.61. HCA Holdings sees FY2025 revenue of $72.8-75.8 billion, versus the consensus of $74.81 billion.

For earnings history and earnings-related data on HCA Holdings (HCA) click here.

https://www.streetinsider.com/Earnings/HCA+Holdings+%28HCA%29+Tops+Q4+EPS+by+8c%2C+Offers+Guidance%2C+Approves+%2410B+Buyback/24243783.html

Trump Tells Hannity: Would "Rather Not" Slap Tariffs On China As Negotiations Ongoing

 President Trump's campaign rhetoric and post-election comments critical of China sparked fears of a renewed trade war on the first day of his second term. But such fears have yet to materialize. Instead, Goldman analysts have described Trump's initial trade policy on day one as having a "more benign tone."

In a Thursday night interview with Fox News host Sean Hannity, the president showed his reluctance to escalate the trade war, stating that he would "rather not" impose tariffs on China. He has emphasized this week his willingness to negotiate with Chinese President Xi Jinping and has so far averted a clash between the world's two largest economies. 

"We have one very big power over China, and that's tariffs, and they don't want them," Trump told Hannity in an interview that aired Thursday, adding, "And I'd rather not have to use it. But it's a tremendous power over China."

On Tuesday, Trump considered a 10% tariff on goods imported from China starting February 1. The proposed tariff would be in response to years of fentanyl precursor chemicals flowing from Chinese companies into Mexico, where Mexican drug cartels cook them and then smuggle them into the US via the Biden-Harris regime's previously open southern borders.

In the prior election cycle, Trump floated tariffs on China by as much as 60%, which would've sparked a tit-for-tat trade war and crushed US trade with the Chinese economy heavily reliant on exports. 

"It's hard to know exactly what US President Donald Trump was getting at with his latest comments on China tariffs ... That said, it's difficult to see Trump backing down from his tariff threats. And analysis by Bloomberg Economics shows there's a lot at stake for China, and the world," Bloomberg Chief Asia Economist Chang Shu wrote in a note. 

Fiona Lim, a senior strategist at Malayan Banking Bhd, pointed out that global "markets are likely to reduce bets on tariffs right now." 

US Dollar slides from Trump's Day One at White House. 

"Trump continues to take a softer approach with China," Lim said. 

Goldman Sachs Chief Economist Jan Hatzius, alongside Alec Phillips, David Mericle, and others, told clients on Tuesday that Trump's first day of trade announcements was "more benign than expected," adding, "Trump's comments on China were notably less hawkish than during the presidential campaign or even his more recent comments since the election." 

From China's perspective, "this is a very positive start," said Wang Huiyao, president of the Center for China and Globalization, a Beijing-based think tank and adviser to Beijing, as quoted by The Wall Street Journal.

A Chinese Foreign Ministry spokesman said earlier this week that China is ready to work with the Trump administration to improve ties from "a new starting point."

Carlos Casanova, senior Asia economist at Union Bancaire Privée in Hong Kong, told WSJ that Beijing might be able to navigate the 10% tariff next month by offering incentives such as tax cuts to exporters. He said that a deflationary environment in China has made Chinese goods increasing attractive to US buyers despite additional tariffs, adding, "Ten percent will be quite manageable." 

On Friday, Chinese Foreign Ministry spokeswoman Mao Ning outlined that both countries have "huge common interests." She said, "The two sides should step up dialogue and consultation." 

Earlier on Thursday, Trump said in a virtual interview at the World Economic Forum that he has "always had a great relationship" with the Chinese leader. 

"All we want is fairness. We just want a level playing field," Trump continued, adding, "But I like President Xi very much. I've always liked him."

Trump's efforts to keep the Chinese video-sharing app TikTok operating in the US can be viewed as an 'olive branch' to Beijing, signaling a willingness to negotiate on trade instead of reigniting a tit-for-tat trade war. 

https://www.zerohedge.com/markets/trump-tells-hannity-would-rather-not-slap-tariffs-china-negotiations-ongoing

Grenell To NATO: Ukraine Membership Push Would Face "Big Buzzsaw" In US

 by Ryan Morgan via The Epoch Times,

Richard Grenell, President Donald Trump’s nominee to serve as envoy for special missions, warned that NATO leaders would face backlash from the United States if they pushed to extend alliance membership to Ukraine without first boosting their own support for the embattled eastern European nation.

Amid the ongoing Russia–Ukraine war, NATO leaders have discussed steps to extend the alliance membership to Ukraine, but the alliance is still working out details of the ascension plan.

Speaking at a Jan. 23 panel discussion on Ukraine on the sidelines of the World Economic Forum in Davos, Switzerland, NATO Secretary General Mark Rutte said the alliance is committed to extending membership to Ukraine, but still has to work out the ascension process.

“The question now of course is how this will exactly play out whenever hopefully as soon as possible,” said Rutte, a Dutch national.

Calling into the panel from California, Grenell pushed back on Rutte’s comments.

“I think you’re going to run into a big buzzsaw in America if we have the NATO secretary general talking about adding Ukraine to NATO,” Grenell said.

While Ukraine has sought NATO membership for years, the alliance’s ascension process requires the unanimous support of all current member nations. U.S. opposition alone could halt Ukraine’s membership.

Trump and his allies have raised concerns that the United States has borne the brunt of the cost of arming and sustaining Ukraine throughout the ongoing war and that the other NATO members have lagged behind alliance military spending targets.

“The American people are the ones that are paying for the defense,” Grenell said.

“You cannot ask the American people to expand the umbrella of NATO when the current members aren’t paying their fair share. And that includes the Dutch.”

NATO set a target in 2014 for each of its member nations to commit at least 2 percent of their gross domestic product to military spending. In 2023, only 11 of the alliance’s 31 members had met that spending target. The Netherlands finally hit the 2 percent target in 2024, but eight other countries are still lagging behind.

Responding to Grenell’s remarks, Rutte agreed that there is a problem with alliance members lagging behind their existing spending commitments.

Rutte then said the alliance will need to set even higher military spending targets to adjust to growing international threats and boost its arms production capabilities.

Rutte said he’s hopeful to get all alliance members past the 2 percent spending target within the coming months.

“Then we have, collectively, to move up. And we will decide on the exact number later this year, but it will be considerably more,” Rutte added.

Ukraine Negotiations

Beyond criticizing NATO allies for not bearing more of the burden of sustaining Ukraine, Trump has repeatedly indicated he would prefer to negotiate an end to the ongoing war.

In his own virtual remarks before the World Economic Forum on Thursday, Trump said, “Our efforts to secure a peace settlement between Russia and Ukraine are now, hopefully, underway.”

Trump said Ukraine is ready to make a deal, and now a peace deal will depend on Russia. This week, Russian President Vladimir Putin congratulated Trump on his return to the White House and said Russia is open to begin talks “on an equal and mutually respectful basis.”

Grenell told the WEF panel that Trump was “handed a terrible mess.”

“There are not a lot of great choices, but President Trump ... has already made clear that he’s going to pressure both sides to end this,” he said.

At times on the campaign trail, Trump said he could negotiate a deal to end the fighting within 24 hours. His team has since softened that timeline for a deal.

“I would say just give President Trump a little time,” Grenell said. “He’s the best negotiator.”

Trump has threatened to impose new economic sanctions and tariffs on Russian goods if Moscow doesn’t quickly accept a deal.

https://www.zerohedge.com/geopolitical/grenell-nato-ukraine-membership-push-would-face-big-buzzsaw-us

AfD's Weidel Calls For Mass Deportations After Afghan Migrant Stabs 2-Year-Old To Death

  by Liz Heflin via Remix News,

Following the brutal attack that cost two people their lives yesterday, including a 2-year-old child, in the Bavarian city of Aschaffenburg, Alternative for Germany (AfD) co-leader Alice Weidel is calling for mass deportations.

“In Bavaria, which is governed by the CSU, an Afghan in Aschaffenburg kills a toddler (2) and a good Samaritan (41) who rushed to help the child. The Afghan had previously followed the child’s daycare group. My thoughts are with the relatives and the injured. Remigration now!” wrote Weidel on X.

Yesterday, as Remix News reported, a 28-year-old Afghan man killed two people in a knife attack on a kindergarten group in a park in Aschaffenburg, Bavaria. The victims were a two-year-old boy and a 41-year-old passerby, said Bavarian Interior Minister Joachim Herrmann (CSU) in Aschaffenburg. Three people were injured, including a two-year-old girl.

According to Herrmann’s statements, as cited by Die Weltinitial findings indicate that the Afghan suspect stabbed a child from the kindergarten group “suddenly and deliberately” with a kitchen knife.

The 41-year-old man was allegedly trying to prevent further attacks on the children and was killed in the process. Police say other passers-by pursued the perpetrator fled on foot. A few minutes after the attack, the man was caught by police officers. The kitchen knife used in the attack was also confiscated.

“A passer-by and two colleagues tried to resuscitate (the child),” a police officer stated.

Another child still in the group’s handcart, used to transport the toddlers, was stabbed but conscious and received immediate medical assistance on-site. 

“I find this situation completely incomprehensible,” said Bavaria’s Interior Minister Joachim Herrmann after a moment of silence. 

An initial investigation has revealed that the suspect was undergoing psychiatric treatment and was supposed to leave Germany. He had been caught at least three times in the past for violent crimes, and had been given psychiatric treatment and released each time, said the minister. In December, the district court in Aschaffenburg ordered him to be placed under supervision.

According to the state health minister, Judith Gerlach (CSU), the three injured people were treated in an Aschaffenburg hospital. The two-year-old girl suffered stab wounds to the neck, the injured adult suffered stab wounds to the upper body, and the kindergarten teacher broke her forearm in a fall.

Chancellor Olaf Scholz (SPD) described the events as an “unbelievable act of terror” and assured the victims and their families of the German government’s sympathy. The authorities must now “work hard to clarify” why “the attacker” is still in the country, he said in Berlin. “I am sick of seeing such acts of violence every few weeks by perpetrators who came to us to find protection,” said the Scholz.

However, Scholz is already being slammed for allowing yet another heinous attack involving foreigners in just a matter of months. The left-wing head of the BSW, Sahra Wagenknecht, is calling the knife attack a clear signal that the government’s refugee policy has failed.

“The fact that nothing happened after Mannheim and Solingen is primarily the failure of the chancellor and his interior minister,” Wagenknecht told Politico magazine. “That makes them politically responsible for every further terrible act.”

The chancellor summoned the heads of the Federal Office for the Protection of the Constitution, the Federal Criminal Police Office, and the Federal Police to the Chancellery yesterday evening. According to government sources, Federal Minister of the Interior Nancy Faeser (SPD) will also attend the meeting. Scholz returned to Berlin from a trip to Paris shortly before 7 p.m.

Other ministers and politicians have also expressed their shock and sympathies.

Faeser said she was “deeply shocked” by the crime, however, as Remix News has pointed out, this has become a sad refrain from her in recent months.

CDU chairman and Union top candidate Friedrich Merz was also “deeply shocked.”

“Things cannot go on like this,” Merz said, adding, “We must and will restore law and order.”

Bavaria’s Prime Minister Markus Söder expressed his condolences on X to the relatives and those affected. Söder called the act “cowardly and despicable” and demanded a “complete investigation.”

Economics Minister Robert Habeck (Greens) was also appalled by the act and spoke about the knife attack on the sidelines of the World Economic Forum in Davos. The Greens’ candidate for chancellor called the attack a “terrible assassination attempt,” calling out its “brutality and perversity” and expressing his condolences to the relatives.

FDP parliamentary group leader Christian Dürr called for a special conference of federal and state interior ministers as soon as possible. “Politicians must react to this,” Dürr told the Redaktionsnetzwerk Deutschland (RND). It must be ensured that potential violent offenders and psychologically conspicuous people like the perpetrator from Aschaffenburg are identified and deported. “We have learned from a series of terrible events that those who have already attracted attention pose a danger,” said Dürr.

The police are also asking any witnesses to upload video recordings to a website or report relevant observations to 0800 0060322.

https://www.zerohedge.com/political/remigration-now-afds-weidel-calls-mass-deportations-after-afghan-migrant-stabs-2-year-old