Global Finance Chiefs Warn on Mideast War, Debt

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Wall Street's top financiers struck a pessimistic tone about the global economy at a flagship gathering in Saudi Arabia aimed at deal brokering, as a violent conflict between Israel and Hamas that has killed thousands of people unfolds.

The annual event is typically used by attendees to build relationships with some of Saudi Arabia's biggest companies and its $778-billion sovereign wealth fund, drawn by the promise of deals as the kingdom seeks to wean its economy off oil.

Saudi Arabia is putting U.S.-backed plans to normalize ties with Israel on ice, two sources familiar with Riyadh's thinking said, signaling a rapid rethinking of its foreign policy. Although the globe's top financiers dwelt little on the conflict, speaking instead about topics such as artificial intelligence, the economic fallout of war combined with record debts created a bleak backdrop.

HSBC Group CEO Noel Quinn also warned of the perils of heavy government debts. "I’m concerned about a tipping point on fiscal deficits," he said. "When it comes, it will come fast and I think there are a number of economies in the world where there could be a tipping point and it will hit hard."The remarks come as Israel's military said it was preparing for "unrelenting attacks" to dismantle Hamas. Former U.S.

Stephen Schwarzman, co-founder, chairman & CEO of the Blackstone Group, flagged the threat to investors in office buildings, now often empty in the wake of the pandemic.

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As Israel-Hamas war rages, global finance chiefs in Saudi sound gloomy noteWall Street's top financiers struck a pessimistic tone about the global economy at a flagship gathering in Saudi Arabia aimed at deal brokering, as a violent conflict between Israel and Hamas that has killed thousands of people unfolds.
Source: Reuters - 🏆 2. / 97 Read more »