International News 25/10

October 25, 2024 No. 185

Middle East Conflict Pushes Oil Price Up.

On Thursday, oil prices increased by approximately 1% due to heightened tensions in the Middle East and expectations of robust distillate demand in the fourth quarter, which influenced market dynamics. Brent crude futures increased by 77 cents, reaching $75.73 per barrel, while US West Texas Intermediate crude rose by 82 cents, reaching $71.59 per barrel. The intensifying conflict between Israel and Hezbollah has prompted concerns about potential disruptions to oil supply. Oil prices have risen by almost 4% this week, which has helped to offset the losses experienced in the previous week. Analysts indicate that the oil market is recuperating from last week's decline, where concerns about weak demand and an excess of supply may have resulted in an exaggerated reaction in prices. The ongoing conflict in the Middle East is contributing to market volatility despite unchanged circumstances.

Harga Minyak Naik 1%, Serangan di Timur Tengah Meningkatkan Kekhawatiran Pasokan

 

Putin Encourages BRICS to Use Local Currencies: Challenge US Dollar Dominance.

At the 16th BRICS Summit in Kazan, the member countries reached an agreement to utilize local currencies for financial transactions with trading partners. The Kazan Declaration underscored the advantages of accelerated, more streamlined, and more secure cross-border payment methods that reduce trade barriers and guarantee equal access. The declaration encouraged the reinforcement of correspondent banking networks and the use of local currencies for settlements. This action is consistent with the BRICS Cross-Border Payments Initiative (BCBPI), which aims to streamline payments and reduce trade barriers within the member countries. Additionally, Russian President Vladimir Putin advocated for the establishment of an alternative international payment system at the summit. This decision to use local currencies marks a shift away from the US dollar within the BRICS group.

BRICS Buang Dolar AS, Putin hingga Xi Jinping Sepakat Transaksi Pakai Mata Uang Lokal

 

Credit Suisse Collapses: Swiss Loses Appeal for Wealthy Investors.

A recent study by Deloitte has revealed a decline in the appeal of Switzerland as a destination for wealthy clients, with a notable decrease in assets under management by the country's banks and financial advisors. The value of foreign assets under management in Switzerland has decreased from $2.624 trillion in 2020 to $2.174 trillion in 2023. The collapse of Credit Suisse last year has led to a loss of confidence in the Swiss banking center, particularly among wealthy clients from Europe and the Middle East. This has resulted in a decline in asset inflows from these regions. Furthermore, factors that have historically made Switzerland an attractive destination, such as low taxes, legal certainty, and neutrality, are becoming less significant. Despite Switzerland still holding the largest share of offshore wealth globally, its market share has decreased from 23.7% in 2020 to 21.4% in the most recent figures. Competitors such as the UK and the US are gaining ground, with the UK now ranking as the second largest manager of offshore wealth and the US in third place. Additionally, Hong Kong and Singapore are also among the top five.

Dampak Kejatuhan Credit Suisse, Swiss Kehilangan Daya Tarik bagi Dunia Keuangan