December 9, 2022

Yahoo Finance columnist Rick Newman main points Saudi Arabia’s upcoming ‘Davos within the Wilderness,’ the place a number of U.S. enterprise professionals will attend.

Video Transcript

SEANA SMITH: US-Saudi members of the family at the verge of collapse. Emerging tensions between President Biden and Saudi Crown Prince Mohammed bin Salman hanging the longstanding courting between the 2 nations in peril. We need to herald Yahoo Finance senior columnist Rick Newman becoming a member of us now with the most recent. Hello there, Rick. So despite the fact that courting clearly between Saudi Arabia and US no longer at the most efficient, we’re anticipated to look a variety of US enterprise leaders make their shuttle to Saudi Arabia later this week.

RICK NEWMAN: Proper, it is a three-day– it is roughly a enterprise and networking tournament very similar to the Davos tournament that we attend. That is centered at the Center East. And the theory is to generate enterprise process enterprise offers. Saudi Arabia is attempting to diversify its economic system past fossil fuels. And that’s the reason a part of why they kicked us off.

This convention was once no longer debatable till 4 years in the past, after we now know the Crown Prince of Saudi Arabia, Mohammed bin Salman, ordered the execution and dismemberment of journalist Jamal Khashoggi in Turkey. And because then, there may be been numerous force on Western corporations and American corporations, particularly, to principally boycott this tournament.

However I suppose that force is fading as a result of we are going to see CEOs of most of the giant US banks and a few different corporations attending this tournament. And naturally, this comes as the USA has been asking Saudi Arabia and different OPEC countries to provide extra oil to place force on Russia and its warfare on Ukraine. However that they had mentioned just lately, no, they will do the other. They will produce much less oil.

In order that has generated numerous obvious visual friction between Washington and Riyadh. President Biden mentioned there will probably be penalties for Saudi Arabia, principally engineering this minimize in manufacturing, however no phrase but on what the ones penalties are. In the meantime, there is a giant enterprise FET in Saudi Arabia.

DAVE BRIGGS: Yeah, the results that we’ve got heard just a little bit about the potential of preventing hands gross sales to Saudis, I’m guessing Lockheed Martin and Raytheon had just a little one thing to mention about that. However we do not know that at the back of the scenes. However those simply are not any executives. We are speaking JP Morgan, Goldman, and Wells CEOs, Blackstone and Bridgewater CEOs, arguably one of the crucial largest on the planet. However let’s get again to grease. Has any of this backward and forward, the OPEC+ transfer, modified the cost of oil, moved the needle?

RICK NEWMAN: Smartly, it is not a crisis for the ones folks in oil eating countries. So I believe when OPEC mentioned it was once going to chop manufacturing, there was once an expectation that we might see a bump in oil costs, and we did not. So– or if we did, it was once very transient. So closing time I appeared, what’s oil, round $82 a barrel? That is tolerable. I suppose it is advisable to argue that. If the Saudis and the opposite OPEC+ countries have been proceeding manufacturing at present levels– and take note, it is a sluggish dropoff in manufacturing, no longer a one-time in a single day dropoff– yeah, I suppose we might see oil costs decrease.

However President Biden has– he has been ready to look at as fuel costs, fuel costs have fallen from 5 dollars a gallon in June. They are now round $3.80. I imply, that may be a dramatic development in fuel costs. In fact, everyone would really like for fuel to be $1 in keeping with gallon. However we are by no means going to return to these days. So I imply, this hasn’t become, like, a disaster for Biden. I believe it is simply an irritant at this level.

DAVE BRIGGS: For sure about that. However no longer it sounds as if a lot sway with the large financial institution CEOs.

RICK NEWMAN: Now not but.

DAVE BRIGGS: No less than no longer on paper presently. Rick Newman, just right to look you, sir. Thanks.

RICK NEWMAN: Bye, guys.

https://information.yahoo.com/saudi-arabia-hosts-business-leaders-202902631.html