Former US Treasury Secretary Steven Mnuchin said he expected an agreement to be reached on the US debt ceiling to avoid a catastrophic default.
(Bloomberg) — Former US Treasury Secretary Steven Mnuchin said he expected an agreement to be reached on the US debt ceiling to avoid a catastrophic default.
Speaking on the sidelines of the Qatar Economic Forum in Doha, he said President Joe Biden and House Speaker Kevin McCarthy were “moving closer” to a deal.
The US economy will definitely slow in the coming months as a result of higher inflation and rates, but the Federal Reserve is “pretty much done” with interest rate hikes and could perhaps raise once more, he said.
“It will be a close call whether we call it a recession or not,” he said.
Mnuchin Says US Is ‘Moving Closer’ on Debt Deal as Talks Drag On
The first day of the annual QEF event kicked off with comments from the energy-rich nation’s prime minister. Among other early speakers was Hungarian Prime Minister Viktor Orban, who said his country didn’t support European aid for Ukraine because it couldn’t win the war with Russia.
Speakers later include the chief executive officer of Qatar’s $450 billion wealth fund, one of the biggest investors in Credit Suisse Group AG that saw the value of its holding crash.
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NOTE: The government of the State of Qatar is the underwriter of the Qatar Economic Forum, Powered by Bloomberg.
Key Highlights:
- Terminal users: Watch event on {LIVE }
- Prominent speakers on Tuesday include: Ken Moelis, Bill Winters, Steve Mnuchin
TikTok ‘On Track’ to Have US User Data Hosted by Oracle (1:50 p.m.)
ByteDance Ltd.’s TikTok is “on track” to have all US user data hosted and overseen by Oracle Corp., as the Chinese behemoth struggles to win over critics worried about the national security implications of its hit video app.
TikTok Chief Executive Officer Shou Zi Chew said the American software company has begun a review of TikTok’s source code and is now the default destination for US user data. His team is also developing a European version of this local-hosting initiative, designed to allay fears of sensitive information reaching the Chinese government.
“The Chinese government has actually never asked us for US user data, and we will not provide it even if asked,” he told Bloomberg Television. “We will continue to invest to make sure that our data is as safe as possible.”
TikTok CEO Says Oracle Has Begun Reviewing Its Source Code
Ukraine Can’t Win War With Russia, Says Orban (12:03 p.m. Doha)
Ukraine can’t win the war against Russia given that the North Atlantic Treaty Organization isn’t ready to involve its troops, Hungarian Prime Minister Viktor Orban said.
Orban asserted that his government wasn’t part of the “mainstream” European Union approach to the war. “The only solution is ceasefire, and then after the ceasefire, peace talks should start,” he said in an interview.
Hungary was in talks with Qatar to buy gas in an effort to reduce its reliance on Russia for energy and for help to buy Budapest airport, he said.
Ukraine Can’t Win War Against Russia, Hungarian Premier Says
Iraq Plans New Licensing Round for Border Fields (11:57 a.m. Doha)
Iraq plans a new licensing round for investors to bid in energy fields along its borders, stretching from Syria to Saudi Arabia, within the next two months, Ghani said.
The country’s oil exports from the north are still halted as Turkey conducts maintenance works on the pipeline that was damaged by the recent earthquake, he said. Ghani reiterated that Iraq is committed to OPEC+ production cuts.
Qatar Sees Energy Transition Causing Oil, Gas Shortage (11:45 a.m. Doha)
Qatar’s Al-Kaabi said the global push toward cleaner sources of energy will result in a shortage in oil and gas supplies. Europe was only able to manage its energy requirements last winter because the weather was mild and economic growth slowed, he said.
Qatar is expanding production capacity at its North Field in two phases. Demand for liquefied natural gas from North Field East and North Field South is high, said Al-Kaabi, adding that he expects supply contracts for all of the additional supply to be signed by the end of this year.
Qatar Warns Europe of Gas Shortages in Switch to Renewables
Qatar Air Ramping up Capacity; Going Back ‘Big Time’ Into China (11:18 a.m. Doha)
Qatar Airways is ramping up capacity in Europe, Africa and going back “big time” into China, CEO Akbar Al Baker told Bloomberg TV. Ticket prices will continue to be higher, he said.
The airline is waiting and watching on new orders for planes beyond its existing orderbook, Al Baker said. The carrier is seeing strong demand for business class, with load factors regularly 95%, he said.
Saudi Energy Minister Issues Warning to Speculators (11:14 a.m. Doha)
Saudi Arabia’s top energy official issued another warning to oil short-sellers, just over a week before the OPEC+ alliance is due to meet.
“I keep advising them that they will be ouching — they did ouch in April,” Saudi Energy Minister Prince Abdulaziz bin Salman said at the Qatar Economic Forum in Doha on Tuesday. “I don’t have to show them my cards and I’m not a poker player. But I’d tell them: ‘Watch out’.”
The prince — famous for telling short-sellers they would be left “ouching like hell” — returned to the theme at a panel discussion at the forum alongside Qatar’s energy minister Saad Al-Kaabi and his Iraqi counterpart Hayyan Abdul Ghani to discuss what’s next for global energy supplies and demand.
Saudi Energy Minister Tells Oil Speculators to ‘Watch Out’ (1)
Rwanda to Return to Debt Markets When Need Arises (10:15 a.m. Doha)
Rwanda will need external financing for new infrastructure projects and will raise loans as required, President Paul Kagame said.
“We are busy building a country. We will need resources,” Kagame said in an interview with Bloomberg TV at the QEF. “Whenever there is a need, we will always go back” to the international debt markets, he said.
Rwanda sees “huge opportunity” for building ties with the Gulf region and Asian nations, including Qatar, and is focusing on linking up with market leaders in various sectors, Kagame said.
AI Should be Regulated, Ursula Burns Says (10:10 a.m. Doha)
The “unbelievable gift” of artificial intelligence should be directed toward good use for all and making people’s lives better, though the technology should be regulated, said Ursula Burns, chairwoman of global consulting firm Teneo and founding partner at Integrum Holdings. “Regulation should not be about control or making it fool-proof,” Burns told Bloomberg TV.
For businesses, Burns said that tools such as predictive AI can help to quantify, and therefore outrun or mitigate, risks significantly. That would help create more opportunities to invest, she said.
However, the lack of direction and regulation makes investing for the upside a “very big difficulty for us,” Burns said, “because who the hell knows.”
AirAsia Founder Says Ticket Prices Have Peaked (8:35 a.m. Doha)
AirAsia founder Tony Fernandes reckons that ticket prices have peaked, at least where his airline operates. All 210 of AirAsia’s aircraft are due to be back in operation in about two months and its fleet should expand to 300 planes in the next four to five years. By then, the group’s annual passenger traffic will rise to 150 million from 80 million, he said in an interview with Bloomberg TV.
“This is quite something from two years ago when we were struggling to survive,” Fernandes said.
AirAsia is also looking at starting airlines in two more countries in Asean, in addition to plans to launch in Cambodia, he said, pointing to “phenomenal growth” in the region.
–With assistance from Grant Smith, Haslinda Amin, Ram Anand, Manus Cranny, Archana Narayanan, Mike Cohen, Ben Bartenstein, Zainab Fattah, Paul Richardson, Ellie Harmsworth and Francine Lacqua.
(Updates with TikTok CEO.)
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