Saudi Arabia withdraws $70b from global funds

Saudi Arabia has withdrawn $70 billion from global asset managers as Opec’s largest oil producer seeks to plug its budget deficit, according to financial services market intelligence company Insight Discovery.

“Fund managers we’ve spoken to estimate Sama has pulled out between $50 billion to $70 billion from global asset managers over the past six months,” Nigel Sillitoe, chief executive officer (CEO) of the Dubai-based firm, said on Monday. “Saudi Arabia is withdrawing funds because it’s trying to cut its widening deficit,” he said.

‘Timebomb’ UK economy will explode after election, says Albert Edwards

The UK economy is a ticking time bomb set to explode after the general election, according to a leading City commentator who has warned of a fresh crisis for the pound.

Albert Edwards, who heads the global strategy team at investment bank Société Générale and is well known for downbeat views, chides the coalition for a legacy of “grotesquely wide deficits” in both the public sector finances and on the UK’s current account – its overall trading position with the rest of the world.

Banks approving loans on condition borrowers don’t buy gold

NEW DELHI: With a view to curb appetite for gold, banks are sanctioning advances, including personal loans, only if borrowers agree not to use the proceeds to buy the metal beyond permitted levels.

Banks have placed the condition that borrowers should not use even personal loans to buy gold, a senior official of a private sector bank said.

The measures follow directions from the Reserve Bank of India to banks and NBFCs that are aimed at reining in demand for the yellow metal. The RBI and the government have taken steps to curb demand for gold after imports of the metal widened the current account deficit.