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September 13, 2023 15 mins
In this episode, Abdul explored the latest in global finance and diplomacy on "Global Insights, he spoke about the key takeaways from the G20 summit, updates on the ARMS IPO, the expanding BRICS group, and the groundbreaking UBS deal. Gain a comprehensive understanding of these significant developments and their global implications.
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Episode Transcript

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(00:03):
Good afternoon, ladies and gentlemen.Welcome back to the Investor Diary podcast,
where we help you work smarter andharder by providing weekly market updates and insights.
Now first on behalf of Part andI. We apologize for the inconsistent
uploads these past few weeks. We'vehad quite a busy month with me relocating
to the UAE and Part starting afull time role in Sydney, which has

(00:24):
made it extremely difficult to record becauseof the time differences and our own personal
commitments. But that is all sortof now and we're back with our weekly
uploads. That being said, today'sepisode is going to be a little different
because there's only one host, thatis I. I do hope Parts can
join us in the near future.I don't want to rob him the opportunity

(00:45):
to talk about his new position,so hopefully he can give us a breakdown
very soon on what he's currently doing. But for now, expect more of
me and I hope I can provideyou with the same valuable insights and updates
on the financial white Kids. Withall that side, let's focus on today.
The main topics of manure Is forthis episode are discussing the key takeaways
of the g twenty summit. Anupdate on the arms IPO we spoke about

(01:08):
in our last episode, the BIGSgroup expanding, and about UBS's acquisition of
Credit suis now picture of this,Ubs one of the world's banking giants making
a bold move by acquiring qudit Suits, one of the one of his closest
closest rivals, for a mere threepoint two five billion dollars. Now,

(01:29):
we've covered this story extensively, youknow, in our previous episodes, from
how the deal worked, you know, all the small details. But today
we're not going to do that herewhen we're gonna talk about the about how
UBS may have just pulled a financialmasterpiece, because this deal is being dubbed

(01:51):
as the deal of the century.Now, now let's rewind back to March
when UBS was strong armed by theSwiss authorities into daring this take over.
A lot of investors gasped at therisk involved, you know, it seemed
like a very high state gamble.But then fast forward, UBS declared that
it wouldn't need the billions in supportfrom this VISs government on the Central Bank.

(02:12):
And what does this tell us?It suggests that the you know,
Credit Swiss situation was much better.It was much better than described initially.
Right, and fast forward to Ithink just over ten days ago. The
UBS is a grand reveal in thefirst week of August September. So so
I brace yourself because this is ajaw dropper. The bank posted a net

(02:34):
profit of a staggering twenty nine pointtwo billion dollars the second quarter. Now
this broke records, and everyone's asking, you know, how is this possible?
Well, UBS acquisition, despite itsinitial risks, turned out to be
a financial masterpiece. Right. Thedifference between the amount paid for credit Swies
and its book value created an exceptionalgame. In essence, UBS nabbed a

(02:58):
bank at a dramatically reduced rate.Right, And what's my take on this,
Well, it's nothing short of remarkable. UPS has executed a strategic move
that defined expectations, and Swizzerland SocialistParty even called it a godsend. You
know, it rescued a bank ata time when the alternative could have meant
significant risks and costs for the Swissdate and its people. Now, as

(03:23):
with any financial plot, Swiss,there's more to the story. Samuel Benahan
as Socialist MP and economics professor raiseda valid point. So whilst UBS may
have strengthened you know, the bank, it creates a muliplistic situation and could
put Switzerland in an extremely risky positionif you know, the new mega bank

(03:43):
were to face a crisis down theroad. But yeah, there you have
it, The deal a century atale of risk and reward. But now
moving on to the ARMS IPO,there's some exciting updates from our last episode.
But in recent development, ARM,the chip designer owned by SoftBank Group
Corpus, now set to achieve aremarkable valuation of approximately fifty four point five

(04:09):
billion on a fully diluted basis.Now this represents a significant increase from earlier
estimates. The implications of this well, the valuation boost shows strong investor confidence
in ours potential and underscores the demandfor technology companies in the current marking.
The higher valuation could also have apositive impact on SoftBank's overall financial position as

(04:33):
it as they continue to die bestand strategically matters to portfolio. Arms investor
commitments have exceeded expectations, prompting thedecision to the position. The decision to
potentially priced the IPO above the initialindicative range of forty seven to fifty one
per share DAWs per share, Andwhilst again this reflects investor enthusiasm, it

(04:59):
also presents arm with greater influx capitalinflux right, which can provide the company
with more financial resources to further investin research end development, potentially accelerating its
expansion into new markets. And ifI'm not wrong, I believe the IPO
is happening today. The sales happeningtoday, I could have happened already,
could be happening while I'm recording this. And trading actually starts tomorrow in New

(05:24):
York, so we will cover thatin our next episode. We will see
this any underprising if the price holds, and all that good stuff. Now
moving on to the G twenty summitheld in New Delhi just a few days
ago, where world leaders gathered todiscuss the hottest global economic topics. And
my job today is to guide you, know, guide you through this exciting

(05:45):
journey because we have some exciting,some thrilling developments to unpack. So buckle
up now. First headline, it'spretty pretty pretty significant one. Well,
the G twenty just got a bitmore crowded, but in a good way.
Now, as the host extended aninvitation to the African Union, transforming
the G twenty into the G twentyone. Essentially, the dinner table just

(06:09):
got a little bigger. Now let'sdive deep into what this means for the
global economy. Africa, with hisweaving population and untapped markets, is like
a treasure chest waiting to be open. By including the African Union, the
G twenty one acknowledges Africa's importance inshaping global economic policies. It opens doors
to more investment, trade and partnershipswhich can lead to a win win for

(06:31):
everyone. My take on this,well, it's about time. As an
African two, I'm proud and I'mhappy. Africa's voye deserves to be heard
and is this move is a stepin the right direction towards a more actable
world. Now, next up,we have the India, Middle East,
Middle East Europe Economic Quarter. Soyou have a picture of this. It's

(06:53):
a super highway connecting Asia and Europe. But it's not just any road.
It's a strategic challenge to its Beltand Road initiative. Now, this quarter
is like opening a new express routefor a trade and investment It's like an
Amazon Prime but for nations cutting downdelivery times and costs. Plus it's not
all currently for countries who might havesecond thoughts about hopping on the China on

(07:16):
China's Belt and Road initiative. Now, in my book, this Quarters signifies
a shift in the global economic landscape. It's nations saying we've got options,
and that's a powerful message. Economically, it means more efficient trade routes,
lower costs for businesses, and potentiallyhigher returns on investments. Plus it opens
up new markets, creating opportunities forentrepreneurs and job seekers alike. Now,

(07:42):
moving on less talk diplomacy, Indiamanaged to secure a unanimous joint declaration from
the G twenty one leaders on allthings development and geopolitics. Now this is
huge because leading up to the summitthere are a lot of discrepancies and no
one really believed that a unanimous declarationwould have been achieved. But pictured as

(08:03):
a global agreement, signed, sealedand delivered and really if no small feed,
what does this mean to us?Well, the economic consequence is stability,
lower uncertainty, more predictability, andthese are all golden words for investors
and businesses. I unified front atthe G twenty one paved the way for
smoother international trade and investments, whichshould and it is music to the ears

(08:26):
of the global economy. Now let'stake let's tackle a hot topic, climate
change. Now, this one's abit in roller coaster. But despite you
know, even the Russia Ukraine conflict, there were some consensus on addressing climate
change. So there was a commitmentto reducing false fuel subsidies, ramping up

(08:50):
of clean energy generation. But notjust that, but by phasing out fossil
fuel subsidies and promoting clean energy,the G twenty one nations are really walking
the walk and not just talking thetalk. And this drive, This can
drive investments into clean energy technologies,making them more accessible and affordable for everyone.

(09:11):
And no, in my eyes,tackling climate change is a marathon.
Of course, it's not a spring. But getting you know, these big
nations, big economies on board isa crucial step towards a sustainable future.
And on climate change, the PrimeMinister Modi announced the Global Biofuels Aligns.
Now, this is a club wherecountries unit suffy climate change with biofuels and

(09:31):
economic implications on this well, biofuelscan be a game changer. They reduce
our dependence on fossil fuels, which, let's face it, can be costly
and environmentally and damaging. By investingin biofuels, countries can create new industry
industries, generate jobs, and boosteconomic growth. Plus it's a win for

(09:52):
the environment and our wallets. Andnext and next up we have so sorry,
yes it's not just the G twentyexpanding, but we also have the
expansion of the Bricks the Bricks Group, So that's Brazil, Russia, Indian
and China and South Africa. Butthey're not including six new countries to already

(10:18):
very diverse group. And why isthis such a big deal? Well for
starters, so I started. Thecountries that are joining are Argentina, Egypt,
Ethiopia, Iran, Saudi Arabia andthe United Arab Emirates. Becoming this
January for twenty twenty four that thesenations will get their Bricks membership cards.

(10:41):
And really it's not just the statussymbol, it's a ticket to a whole
new level of global influence. Whatdo I feel? What I think about
this? It's like it's like formingan adventers like group right in the world
of geopolitics. You know, Bricksalready as a stands or a significant force,
but with these new members, it'smaking it very bold statement. And

(11:01):
it's not just about being a counterweightto you know, Western dominated institutions.
It's about shaping the global economic landscape. Now, why why these specific countries
right out of you know the fortyThere's a lot of ego applicants, right,
so why why why these six?Well, first up the golf giants,
you know, Saudi Arabia, andthere their inclusion addresses concerns from Brazil

(11:24):
and India about you know, dilutingbreaks is power and hardering their ties with
the United States. But adding thesetwo countries sense a clear message that joining
Bricks doesn't mean you have to beanti US. You know, these two
countries have significant oil wealth and combinedwith Russia and China, could significantly influence
global oil market oil markets, impactingprices and trade rounds. Now, my

(11:46):
opinion, this is geo politics andeconomics intertwining. You know, by by
inviting these golf countries, bricks andis enhancing its economic leverage while showing a
pragmatic approach to global politics. Nowlet's talk by Iran. This move is
like a chess gambit. You know, Iran's drained is Iran's strained relationship with

(12:09):
the United States is no secret,and by joining Bricks, Iran gains global
legitimacy and cloud, especially when itcomes to negotiations like those concerning its nuclear
program and economic speaking, this isTehran's way of finding an escape route from
sanctions. It's like having a financialsafety net, right and in my view,

(12:31):
it's a win wine. It's astrategic move with potential ripple effects on
the Middle East and on global politics. And now I'm moving on to other
members African Africa, actually Egypt andEthiopia. Their inclusion marks Briggs's expansion.
Bricks is expanding influence on the Africancontinent where the US, Russia and China

(12:52):
are all really trying to get apiece of piece of pie. They're really
all trying to expand into Africa.So economically, again, this is like
securing key outposts on a global chessboard. Bricks gets more political allies in Africa
whilst diminishing Western influence in a regionthat's increasingly turning to Beijing for economic aid

(13:15):
and from Moscow for artist deals.Plus the policy of non interference provides cover
for governments in these countries, particularlyon issues of human rights. Now very
savvy move braces expanding its influence andsecuring valuable partnerships in a region with immense,
immense economic potential. And lastly,let's not forget Let's not forget about

(13:37):
Argentina, the only Latin American countryto get a Golden ticket to join BRICKS.
Economically, this is a shot inthe arm because you know, Argentina's
fiscal crisis has been a cause forconcern. It's hoping BRICKS is support via
the new Development Bank will help turnthings around. They're also exploring ways to
use their domestic currencies and China's yuaninstead of US dollar in trade, which

(14:01):
potentially another game changer. And againthis is sort of a lifeline for argentina
struggling economy, and it also showsthe potential for BRICKS to provide practical solutions
to pressing global economic challenges and completelythis this BRIGS saga. You know,
it's a political and economic milestone,it's not the changing global order and a

(14:24):
declaration of intent. And with thesenew members on board, BRICKS represents a
more significant share of the global economyand global population and with that that is
the end of this episode. That'sthe rap of this Investor's Diary podcast.
In this episode, we covered thekey takeaways of the G twenty summit,
an update on the arms IPO wespoke of, we spoke bet on last

(14:46):
episode, the Bricks Group expanding,and UBS is deal of the century.
Thank you very much for tuning inwith us, with me, sorry with
and yet on another episode of theInvestor Diary podcast. Thank you for listening and peace
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