Financial Leaders Express Pessimistic View of Economy Amidst Israel-Hamas Conflict at Investment Conference

At the recently concluded Future Investment Initiative (FII) in Riyadh, Saudi Arabia, top executives from major financial institutions shared their concerns about the state of the global economy against the backdrop of the Israeli-Hamas conflict. The conference, which focused on topics such as artificial intelligence, the economic impact of war, and escalating debt due to rising interest rates, highlighted a prevailing pessimism among industry leaders.

Larry Fink, the chairman and CEO of the renowned American asset management company BlackRock, warned that if these issues are not addressed, global terrorism is likely to increase, leading to widespread anxiety and fear in society. Fink also expressed his belief that the economy will suffer as a consequence.

During a panel discussion, which featured prominent figures such as David Solomon (CEO of Goldman Sachs), Jamie Dimon (CEO of JP Morgan), and Jane Fraser (Citigroup), the participants delved into topics like gender equality in the workplace and the repercussions of rising interest rates.

Ray Dalio, the founder of hedge fund Bridgewater Associates, echoed the prevailing sentiment of pessimism. He emphasized that future financial policies and other measures will have far-reaching global implications. Considering the existing disparities in the world, Dalio found it hard to maintain an optimistic outlook.

HSBC Group CEO Noel Quinn voiced his concerns about the risks associated with extensive government debt. He cautioned against reaching a tipping point in fiscal deficits, as it could potentially deliver a severe blow to several economies simultaneously.

Jamie Dimon, CEO of JPMorgan, called for the continuation of the US-led initiative to forge closer ties between Saudi Arabia and Israel. He strongly advocated for Saudi leadership in the Middle East, asserting that it is the key to achieving stability in the region.

Banga, the President of the World Bank, highlighted geopolitical tensions as the most significant risk to the global economy. While acknowledging this major concern, he emphasized that risks, in general, are subject to rapid changes and should not be underestimated.

The discussion also explored future business prospects, with David Solomon of Goldman Sachs emphasizing the potential for expanded deal-making. Stephen Schwarzman, chairman and CEO of investment firm Blackstone, identified the growing vacancies in office buildings since the onset of the pandemic as a significant risk factor.

Despite the prevailing concerns, Harvey Schwartz, CEO of private equity firm The Carlyle Group, displayed a positive attitude. Schwartz believes that while assessing geopolitical risks may be challenging, they must be incorporated into evaluations to identify incredible opportunities.

In addition to discussing risks, financial leaders highlighted potential growth opportunities in emerging markets like India, Vietnam, and Indonesia. They also identified sectors such as healthcare, energy, and renewables as areas of potential development. Furthermore, they agreed upon the long-term business potential presented by artificial intelligence.

In a nutshell, the FII conference shed light on the gloomy economic outlook due to the ongoing conflict in the Middle East. However, it also offered glimpses of hope, showcasing possibilities for growth and innovation in various sectors and regions. As global leaders grapple with the challenges ahead, it is crucial to forge collaborative efforts to address the pressing issues adversely impacting the global economy. For further information, you can refer to the “Related Content” menu on the right side of the screen.

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At the Future Investment Initiative (FII), an international investment conference held in Riyadh, the capital of Saudi Arabia, the heads of major financial institutions expressed a pessimistic view of the economy amid the military conflict between Israel and the Islamist organization Hamas, which left many injuries. Pictured is FII in 2022 (2023 Reuters / Ahmed Yosri)

RIYADH (Reuters) – At the Future Investment Initiative (FII), an international investment conference that opened in Riyadh, the capital of Saudi Arabia, the heads of major financial institutions spoke amid the military conflict between Israel and Hamas, which left many casualties. He expressed a pessimistic view of the economy.

At the conference, topics such as artificial intelligence (AI), the economic impact of war, and increasing debt due to rising interest rates were discussed.

Larry Fink, chairman and CEO of BlackRock, a major asset management company in the United States, said, “Unless these problems are solved, global terrorism is likely to increase. This will lead to widespread anxiety and fear in society.”The economy will shrink,” he said.

The panel discussion attended by Mr Fink included David Solomon, CEO of US financial giant Goldman Sachs (GS.N), Jamie Dimon, CEO of JP Morgan (JPM.N), and Citigroup’s Jane Fraser ( CN). They discussed the status of women in the workplace and the impact of rising interest rates.

Ray Dalio, founder of hedge fund Bridgewater Associates, said he was pessimistic. “Future financial policy and other measures will have a greater impact on the world,” he said, “Looking at the differences in the world, it’s hard to be optimistic about that.”

HSBC Group CEO Noel Quinn also warned of the risks of heavy government debt. “I worry about a tipping point in the fiscal deficit. When it comes, it will come all at once. There are many economies around the world that could hit a tipping point, and it will be a big blow.”

JPMorgan CEO Jamie Dimon called on the US-led initiative to formalize Saudi-Israeli ties not to be abandoned. “Saudi leadership for the Middle East is the only way to achieve that,” he added.

The President of the World Bank, Banga, said that although geopolitical tensions pose the greatest risk to the global economy, other risks cannot be ignored as risks tend to change rapidly. See more

In terms of future business, Goldman CEO David Solomon talked about the possibility of expanding dealmaking. Stephen Schwarzman, chairman and CEO of investment firm Blackstone, pointed to the growing vacancies in office buildings since the coronavirus outbreak as a risk factor.

A bright attitude was also shown. Harvey Schwartz, CEO of private equity firm The Carlyle Group (CG.O), said, “Geopolitical risks are very difficult to assess, but we need to incorporate them into our evaluations.” with incredible opportunities for us.”

Financial leaders also highlighted potential opportunities in emerging markets such as India, Vietnam and Indonesia, as well as in areas such as healthcare, energy and renewables. They agreed that AI presents long-term business opportunities.

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