Key Takeaways

1. UBS Sees Gold to $4000, Amid Fear-Driven Rally;
2. Budget Saudi Expands in UAE with 70% Stake Acquisition;
3. Tesla Cuts FSD Price to $99, Pushes for Robotaxi Amid Skepticism;

I. Market Recap

Saudi Arabia's Tadawul All Shares Index(TASI.SA) was down slightly by 0.30% and the Parallel Market Capped Index (NomuC)(NOMUC.SA) up by 0.52% on Sunday.

In the USA, stocks sold off Friday as inflation and geopolitical worries once again dented investor sentiment on Wall Street. A broad decline in major bank shares also weighed on the market. The Dow Jones Industrial Average(DJI.US) slid 1.24%. The S&P 500 index(SPX.US) tumbled 1.46%. The NASDAQ(IXIC.US) pulled back by 1.62%.

II. Flash Headlines

Finance Minister Leads Saudi Delegation at IMF, World Bank Talks

Saudi Finance Minister Mohammed Al-Jadaan leads the nation's delegation to key IMF and World Bank assemblies in Washington, aiming to chair discussions on global economic policies and development threats. The agenda includes enhancing international economic cooperation and exploring roles in financial assistance and policy advisory through various high-level meetings, including the G20 finance ministers under Brazilian presidency. This summit marks the beginning of Saudi's three-year chairmanship at the IMF committee.

Fed Officials Focus on PCE Amid High CPI

USA Federal Reserve officials are focusing on the Personal Consumption Expenditures (PCE) Price Index rather than the Consumer Price Index (CPI), despite recent high CPI readings that raised concerns. Chicago Fed President Charles Evans emphasized that better PCE data indicating decreasing inflation would be reassuring, while Boston Fed President Susan Collins expects two rate cuts this year, predicting a slow return to the target inflation level as demand cools until the end of 2024.

UBS Sees Gold to $4000, Amid Fear-Driven Rally

Wall Street is raising gold price forecasts with Goldman Sachs predicting $2700 per ounce by year's end, driven by "fear" factors such as concerns over monetary system sustainability and emerging market central banks' worries about currency depreciation. Bank of America and UBS set their targets at $3000 and $4000 per ounce, respectively, indicating a bullish outlook for gold amid various global economic fears.

III. Stocks To Watch

SA snapshot

New Fitness Time Center Opens in Muzahmia

Leejam Sports Co.(1830.SA) announces a new Fitness Time center for men in Muzahmia Province's Nawara district, set to open on April 14, 2024. This facility, equipped with modern sports gear and facilities, marks the company’s 190th location globally. Financial effects will be reflected in Q2 2024, with more openings planned.

Budget Saudi Expands in UAE with 70% Stake Acquisition

United International Transportation Co.(4260.SA) (Budget Saudi) has officially signed a purchase agreement to acquire 70% of Overseas Development Holding Company's subsidiaries in the UAE, valued at 13.35 million AED. This follows a memorandum of understanding for potential acquisitions in Saudi Arabia, the UAE, and Kuwait, expanding Budget Saudi’s regional presence.

USA snapshot

Tesla Cuts FSD Price to $99, Pushes for Robotaxi Amid Skepticism

Tesla Motors, Inc.(TSLA.US) has slashed the monthly subscription fee for its Full Self-Driving (FSD) service in the USA to $99 from $199, a 50% reduction announced by Elon Musk on X platform. The price cut aims to boost the adoption of Tesla's autonomous driving technology ahead of Q1 earnings, gathering more driving data for the planned launch of Tesla robotaxis in August.

However, skepticism surrounds the feasibility of the robotaxi initiative alone, with analysts suggesting that Tesla should also focus on advancing the Model 2 as a more affordable vehicle to meet broader market demands.

EMA Clears Wegovy of Suicide Risk

The European Medicines Agency (EMA) has cleared Wegovy, a weight-loss drug by Novo Nordisk A/S Sponsored ADR Class B(NVO.US), of any risks associated with increased suicide or self-harm. This announcement follows an extensive review and came last Friday, removing a major safety concern surrounding the use of GLP-1 class drugs for obesity treatment. Novo Nordisk's share price recently retracted about 10% from its record high. 

Exxon Approves Sixth Project, Eyes Production Boost in Guyana

Exxon Mobil Corporation(XOM.US) has greenlighted its sixth oil development project, the Whiptail in Guyana's offshore Stabroek block, following approvals from governmental and regulatory bodies. Expected to commence by the end of 2027, this project will boost daily production by approximately 250,000 barrels.

Know more about this week's Key Economic and Earnings Events:

Spotlight on the KSA's CPI; Key Earnings from Morgan Stanley, Netflix and More

This newsletter is written and edited by Bruce from Sahm News Team