Tag Archives: Salini Impregilo

Heating at what price?

We all know it; in winter it is about the heating, in summer about the quality of the fan, in addition, we need to make sure that apart from food, and drinks that we have the proper attire. We have known this for almost a lifetime. So even as this is known in the US, President Trump decided to have a conversation with Saudi Arabia to increase production to keep prices down. It seems really nice that Saudi Arabia came forward, yet they had no practical reason to do that did they? Not in an age of bullet points, business cases and maximised profit.

Oil is a commodity, and in the professional world of business, you have to go for the buy low, sell high equation if you want to be in business. So I was surprised to the extent that Saudi Arabia was facilitating towards America.

Yet this is seemingly coming to a halt when Bloomberg treats us to: ‘Putin Says Russia and Saudi Arabia to Extend OPEC+ Oil Pact‘. In itself the title does not give the US the warning that they need to read, the text does however give us: “OPEC, which pumps four-in-ten barrels produced worldwide, will convene in Vienna on Dec. 6 to discuss output cuts after oil prices in November suffered the largest monthly drop since the global financial crisis in 2008” the article also gives us “an advisory group to OPEC told ministers the market is oversupplied, with a need to cut about 1.3 million barrels a day from October levels“, apart from Bloomberg, there were several others showing the news, adding their own political flavour towards facilitation and that will be discussed soon enough. The shape here is not merely that there is oil in the Al Saud family, it is the fact that they are (as any good business does) trying to maximise what they have. People seem to forget that. It might seem a buyers’ market, but that is merely the presentation, once production stops for 12% or more that balance will change really quickly. Let those who want it somewhere else, go somewhere else. The direct impact is that it merely drives prices faster. Even as there is an oversupply, the entire setting seems to be focussed on getting past this winter, the players are in error not to focus on the next winter, for that part will be impacted and it will be a large impact.

As the conversation between Russia and Saudi Arabia continues, whether or not it is some OPEC+ setting, the setting that is evolving is one that I mentioned in ‘Two issues in play‘ (at https://lawlordtobe.com/2018/11/20/two-issues-in-play/). The day after we saw Senator Lindsey Graham (R-SC) giving the statement that Crown Prince Mohammed bin Salman was “unstable and unreliable”. So as we were treated to ‘Putin says Russia, Saudis agree to renew OPEC production cuts‘ mere moments ago. How much reserve is there? How long until the prices are raised, optionally just before Christmas as a speculative Ebenezer Scrooge bonus to your household?

The entire matter was just waiting for an opportunity to happen, as we see this unfold over the next few days, we will see additional parts too. The best example that anyone who served knows is that there are three people you do not mess with. The first is your Supply officer, the second is the payroll officer and the last one is the cook. These three are sacred and you leave them alone. So why push the person who is a supply officer, that impacts your payroll officer (as you end up with a fair amount less) and that in turn unbalances what the cook gives you as you cannot afford a full meal. As the price of food goes up, as we see clear data from several sources (Washington Post and HILDA) that larger groups of workers have been on stalling incomes for years now, have I made a clear enough point? When the total income is the same and food prices go up, what would you surrender to the currents of loss, once you realise that fuel prices will be on the rise as well?

In anticipated opposition, don’t give me that ‘ethics regarding Jamal Khashoggi‘ routine, because the bulk of the US senate and US congress have not made any noise regarding all those journalists (well over 240, with over 140 wanted) in Turkish prisons, several of them for life. Not much noise is there? The fact that Turkey isn’t getting slammed for being an ally of Iran is still a mystery, yet there might be some European need there, especially around some ‘nuclear accord’.

Even as I anticipate some reaction in all this, we must also heed the opposition in this. Here I call for Oilprice dot com. Martin Tillier gives us (at https://oilprice.com/Energy/Crude-Oil/Oil-Output-Cuts-May-Be-Coming-But-Dont-Bet-on-It.html): Crude oil has been in freefall, with both Brent and WTI having lost around a third since hitting highs in early October. There are some demand related worries involved as trade wars threaten to slow global growth, but the biggest reasons for the drop are supply related. A couple of months ago, those highs were achieved in anticipation of a disruption to global supply as the Trump administration’s abandonment of the Iran nuclear deal with Iran and the resulting sanctions took effect. Since then though, a few things have become clear. Firstly, U.S. production has been stepped up by more than imagined. In addition, the Saudis increased their output to help offset the expected loss from Iran but, most importantly in that context, that loss doesn’t look likely to materialize“, he goes on giving us the tough talk part and he is right. Whether we see it as political windbags or perhaps merely a storm in a cup of tea, the impact is not merely some good needed, it is a larger issue that goes beyond supply and demand. Just like the predicted shortage of concrete for the building of Neom city. Those who saw it have been upping their ability for production. Several have doubled it and there is a chance that the UAE will have its own large concrete facility soon enough. As Saudi Arabia could decide to cut production, it could in addition merely seek to seel part of it elsewhere. The end result is the same, yet that trajectory will be much slower. For the current administration it is about getting past this winter, with the next winter being a larger impact on the elections, so it will also impact the cost of living all over the US.

CNBC gives support here (at https://www.cnbc.com/2018/11/28/expect-a-saudi-first-policy-on-oil-production-cuts-regardless-of-trumps-demands-analysts-say.html). It is early days and what we anticipate or expect does not usually happen, yet with “Analysts believe that despite Washington’s geopolitical leverage over the kingdom, after its staunch defense of the Saudi monarchy amid accusations over its alleged role in the murder of Saudi journalist Jamal Khashoggi, Riyadh will still pursue its own economic interests rather than abide by the wishes of President Trump. The pivotal question hanging over oil markets remains that of production cutbacks. Who will tighten their taps, and by how much?” This is the game for now and even as it is all set in common sense, the one part we cannot anticipate is ‘by how much?‘, I predicted a rough 12% a week before this article came out and so far, the fact that it is still likely to happen before the end of the year, optionally before before Christmas, it does remain to be a the speculative part for now. I expect Russia to try and get a consensus with Saudi Arabia to go well over 12%, optionally closer to 20%. It is essential for Russia, it will be good to the super wealthy oil friends that President Putin has and it will also bring joy to the coffers of the Saudi Monarchy. The question is who can pick up that slack and how fast. The US has its own facilities in it, yet could they keep up? Leave it to the US to piss off 3 of the top 5 producers, which leaves Iraq and they do not have the working infrastructure, moreover, volatility is still their middle name for now, as well as the fact that they merely produce 16% of the other three that the US insulted (more than once I might add).

So will oil prices go up? If the US is set on its current policy, the issue of oil prices is a given certainty, the fact that they will go up before winters end seems more and more likely, yet by how much is not to be anticipated. In this Saudi Arabia, merely needs to have a ‘technical glitch’ and the pumps go down twice for 2-3 days, and the damage is done. At that point, Saudi Arabia merely has to drop production for 15%-20% until the technical matter is ‘resolved’ and all the US can do is pray for Saudi Arabia to accept the assistance of their engineers. Although as Saudi engineers go, their knowledge might be (vastly) superior in all this, they have had plenty of time to get ahead of the curve for some time now.

Should this happen, what will the US do? Throw a tantrum; throw a curveball? I am eager to find out, because the entire journalist part is still a matter for discussion. You all seem to know Jamal Khashoggi. Yet how many of you know Mehmet Topaloğlu, killed by the Turkish police, as was Metin Göktepe. Then we see Önder Babat, Serena Shim, Rohat Aktaş and Yaşar Parlak. The Turkish authorities have shown less than 0.5% effort here when comparing it to Jamal Khashoggi and the silence from the US in these deaths (a few of many) have been deafening, we can ignore the European Union in all this as they seemingly do not care. So when I made the claim that Jamal Khashoggi is merely a convenient puppet to hit Saudi Arabia with, I knew what I was talking about. When we see that inaction is the natural state, the entire Jamal Khashoggi was a game of political players, emotions used to drive an audience, an audience giving Google search currently well over 72 million hits when we see for that JK journalist. Try that with one of the other murdered or imprisoned journalists in Turkey, they are not even a blip on the radar. It is my speculative thought that Neom and the future drive by Saudi Arabia scared the US as it did several European players. It is the first time in history that a Middle Eastern nation has the ability to put the US and EU to shame with their lack of technological progress. They claim to have it, yet Saudi Arabia is making a move towards ‘showing to have it‘, changing the game for both the US and Europe.

This is where we see the difference. China and Russia see this as an opportunity, whilst Europe and the US are seeing it as an inconvenience. In Europe it seems that only Salini Impregilo is taking the charge of that future, having scored already well over half a billion in contracts, the rest of the players are either under the surface or not there at all. Is that not odd either? When we see close to a trillion dollars in opportunities in Saudi Arabia, the noise should be deafening but it is not.

How does that matter?

Well, if oil fuels the coffers, the daily input is more than enough to warrant actions, yet I see not activity anywhere, not to the degree it should have. In all this, within a day I found a way to revolutionise information using 5G (designing a new device in the process), and there we see opportunity, a pilot the size of a city that could have global repercussions and no one is there. I cannot be the only player in town, my ego would never be that delusional, yet there is not activity at all. It makes sense that it is not out in the open, yet some people would have to file for concepts, optionally for patents and I see the light of at least 4 of them right there, yet there is no visible action, and believe me, as a Master of Intellectual property law, I do know where to look.

Karma kicks greed’s ass

We have all seen the news when it comes to Huawei and the list of those banning them is growing, there too we see that China has a vested interest in making a local company a true success and there we see the options too. So when we consider the Verizon offer: “As part of a 10-year agreement, Verizon will expand its wireless small cell infrastructure to build out its existing 4G LTE network and prepare for 5G deployment, with streamlined permitting from the City of Boston. TV licensing will also be amended to support an expansion of Verizon’s Fios TV service to more neighborhoods“, it came in 2016. So consider the actual wording ‘as part of a 10-year agreement‘ and ‘prepare for 5G deployment‘, by the letter, it implies that Boston will optionally not have 5G before 2026, in this it could optionally have been in the foundations of Neom by 2021 (depending on then the first buildings are completed). It would be a kick in the nuts for the US to have something operational after Saudi Arabia, does it not?

Karma bites like Piranha if need be.

This all impacts the oil price, because the Saudi Crown Prince is driven to get Neom right, it also impacts the coffers so whatever is done regarding the oil, would optionally not be allowed to endanger Neom. I cannot prove that, yet I am decently certain that this is the case. We can see this as an opportunity, that as the US seeks options, it can make other offers to offset the optional ‘loss’ to Saudi Arabia. If enabling can be done in money or goods, offering goods is still an optional path to take for the US, yet they too need to realise that the overly visible acts of playing the ‘Khashoggi blues’ whilst not making any noise on the ‘Turkey newspaper shuffle’ is going to be a debate soon enough, especially as there is enough evidence that Turkey has been facilitating for Iran.

In the end

In the end it is about the oil prices and I expect them to go up regardless of what happens, yet there is leverage to a small extent, the amount of price increase is one that could be under negotiation. The question is, will we see proper actions by the US and Europe to limit the price increase and the impact on their citizens? I expect to see an answer to that part within the next two weeks.

Have a fun Monday!

 

 

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A promised correction delivered

Yes, I have made statements, conclusions I truly believed to be the case. Not because I am smarter (I am actually that), but the fact that everyone started to shout on innuendo and unproven statements by boastful people. I was determined to call their bluff. That is how I am, yet I am also the person that once evidence is given, that I will adjust the views and the position that I have taken before.

So as the Guardian treats us to: ‘Khashoggi’s son leaves Saudi Arabia as prosecutor says killing was planned‘, so as we are now given “Saudi prosecutor’s statement contradicts previous claims that journalist was killed accidentally“, I do remain in the setting that those high and mighty bitches of industry (like JP Morgan Chase and a few others), who were all in some uppity state, are now shown to have walked away prematurely, I reckon that they did many things premature in the bedroom, but to see those same people doing it in the hard cutthroat industry where they are supposed to be the sharks of the 7 giant oceanic corporations was new to many. The Guardian (at https://www.theguardian.com/world/2018/oct/25/jamal-khashoggi-killing-premeditated-says-saudi-prosecutor) gives us a lot of goods that are important to take in.

You see, I believe that I was never wrong, I merely wanted to see actual evidence, which is a different setting, the bitches of industry merely relied on innuendo. So when we see: “the Saudi public prosecutor’s office for the first time suggested the writer’s killing was premeditated“, a setting where we see ‘suggested‘ as the operative word, but from a legal source that gives the mere word ‘suggested’ at a much higher weight then the journalistic unnamed source could ever be. In addition to the previous we also see: “Prosecutors were interrogating suspects on the basis of information provided by a joint Saudi-Turkish taskforce, a statement from the official Saudi Press Agency said on Thursday“, which also makes me step back on the entire Turkey-Iran parts, there was actual evidence, it was merely presented by the media in a way that I would never have accepted until I watched it with my own eyes. So even as we are presented with: “Riyadh has taken great pains to distance the powerful crown prince from any responsibility for Khashoggi’s murder after it emerged several members of his personal guard and other trusted officials were involved“, we also see that the Crown Prince was true to his word. He stated: “justice will prevail in the Khashoggi case” and that is what seems to be happening. What I had reported on earlier seems to be confirmed now on a few levels. With: “The Washington Post reported on Wednesday that Gina Haspel, the CIA director, had requested and been played the tapes during a brief visit to Ankara this week – the first indication Turkey has shared the sensitive evidence with foreign parties“. It is the ‘the first indication Turkey has shared the sensitive evidence‘, it is part of the whole and must be acknowledged, especially by me, if I want to live with myself. You see, I was partially protective of the ‘players’ from team KSA, merely because the journalistic sources have lost too much credibility in the last few years alone. That was the largest setting of my choices and none of the evidence was acceptable by me, especially in the entire Turkey-Iran setting that most media is still not acknowledging at present.

So there it is, I am not sorry on the path I took earlier, I gave my reasoning here and I feel that I remained correct, yet I also disputed evidence on facts and as the disputed evidence is now shown to be actual, I feel that I had a responsibility to bear (or was it to bare) that out.

I also remain in the belief that I had from the very beginning, We need to rely on papers like the Guardian, the Times, the LA Times, the Washington Post, the BBC and a few others to give us the good stuff. There are those papers that rely on emotion to overbear us in any direction that they can push us, which was also the reason of opposing larger players of the press in all this.

You see, we seem to focus on all kinds of matters, except for the location and the entire events that surrounded Mohammed Al-Otaibi, we have not seen a lot there, did we? It goes a little further than that. One source (the Middle East monitor) gives us: “Turkish President Recep Tayyip Erdoğan said yesterday that Saudi Arabia has dismissed its Consul General to Istanbul Mohammed Al-Otaibi following a phone call he had with King Salman Bin Abdulaziz a few days after Saudi journalist Jamal Khashoggi was killed inside his country’s consulate in Istanbul. “The Consul is not efficient and I have told King Salman of this. A day later, the Consul General was relieved of his duties and returned to his country,” the Turkish president told the parliament in Ankara“, now we get the ‘good’ stuff. The parts that are important are easily seen. The article is two days old, yet the parts in this are ‘a few days after Saudi journalist Jamal Khashoggi was killed inside his country’s consulate in Istanbul‘. You see, if that was true, then the entire matter of the audio tapes take on a very different stage and value. If the evidence was there and it gives evidence of transgressions, then President Erdogan was giving Saudi Arabia heads up on certain events, in addition, when we contemplate the audio evidence that is part of all that, the statement that we see with ‘The Consul is not efficient and I have told King Salman of this‘, if these parts are correct, than we see that the Turkish government is optionally directly involved with the cover-up itself! I am also considering that one source is not good enough, yet the connections seen, gives a much larger light to the setting.

In the end, I need to keep the faith I have, I need to remain in the light of not what I think happened (many are doing that), it needs to be ‘what happened that can be proven’, too few players have been doing that. It was also important to raise the Mohammed Al-Otaibi issue as some papers stated that ‘he fled the country’, yet here we see the stage: ‘the Consul General was relieved of his duties and returned to his country‘, or as I initially stated it, he had been recalled; I seem to have been correct on that part too. The question remains important if we are to believe USA Today. There we saw almost a week ago: “Those fired included: one of the prince’s closest advisers Saud al-Qahtani; deputy intelligence chief Maj. Gen. Ahmed al-Assiri; Maj. Gen. Mohammed bin Saleh al-Rumaih, assistant head of the General Intelligence Directorate; Maj. Gen. Abdullah bin Khalifa al-Shaya, head of General Intelligence for Human Resources; and Gen. Rashad bin Hamed al-Mohammad, director of the General Directorate of Security and Protection“, no mention of consul general Mohammed Al-Otaibi, perhaps he is one of the 18 arrested, yet we do not have any names from that group, so for now there is no way to know.

In Other News

The Financial Post reported that ‘Google corporate parent’s third quarter disappoints jittery investors‘, which is always nice to see (even if no one really cares). Yet the stage that we saw two days ago in ‘The ethical threshold‘ (at https://lawlordtobe.com/2018/10/24/the-ethical-threshold/) where I made mention of “when we consider that “Diane Green, the chief executive of Google Cloud, also pulled out on Monday, according to the company” and gave that ‘Davos in the Desert’ a miss”, which in light of the shown evidence by some could have been the emotional short sighted part to do. Now, we know that Google will need loads of effort to mend the fences, yet souring the seating between themselves and the investors might not have been the best way to go about that. So as I made mention earlier of “those high and mighty bitches of industry (like JP Morgan Chase and a few others)“, especially when we regard that business solutions like Sharpcloud, a solution that relies on Azure AD, now will seemingly get a few additional options in their park, especially as Microsoft apparently opened a few doors. In light of what is going on and what is about to happen, certain dash boarding and investigative tools will have their work cut out for them. If they can please the initial players (like Salini Impregilo), the opportunities will become much larger and will entice a much needed audience to a much larger degree. So in this, Google did not merely disappoint the investors, there is now some indication that they handed market share to their opponents, all because of overreaction? Well that is for them to figure out, I remain a faithful believer of the Robocop phrase ‘Good business is where you find it‘ and any player that is staging the investment setting of a trillion dollars on a 12 year scale is someone you need to look at in different ways, if you do not, which would be your own choice, you end up merely cutting yourself. Everyone so up in arms over a journalist whilst Wall Street, Apple and a few others are quite literally walking away with murder on a much larger scale. You can blame the governmental and legal machines of all the folly that they represent, but as a corporation you still need to get from A to B and that is where it is my personal belief that some people overreacted (to a certain degree).

Yet the entire Google issue is also a stab in another direction. You see, when we are treated to “But Alphabet’s revenue fell shy of analyst projections. The company’s revenue, after ad commissions, totalled US$27.16 billion, more than US$150 million below analysts’ predictions“, the stage here is not merely that the analyst could have gotten it wrong, the loss in all this is roughly 0.552282%, under what amount is the optional miscalculation of something less than a percent the stage of such a reaction? If you need three tubes of Valium just to get back to hysterics whilst the optional loss is merely 0.55% less of an absurd amount of profit, we need to reengage into the folly of maximised profit, in a stage where they grasped at emotional levels of a moral high ground that they should not even be allowed to have in the first place and if my expectation comes through and some Microsoft Azure players do get to give pilots to certain players set to a growing awareness in the Kingdom of Saudi Arabia, Google will lose a hell of a lot more than a mere 0.552282% shortfall, they might actually lose market share, how much value will that be representative of?

the deeper you dig, the more we see that the statement in several newspapers made by Saudi Crown Prince Mohammed bin Salman giving us: “The Middle East can be the “new Europe”” might be more correct than some realise at present, especially when 5G starts its roll-out in the Kingdom of Saudi Arabia. In case you were not aware of the latter part, the Sumitomo Mitsui Banking Corporation, SB Energy and Tadano. They are all licensed for KSA endeavours now. So how much business are some players about to lose? So even as some questioned the statement: “Majid Al Qassabi, Saudi Arabia’s Minister of Trade and Investment, said the kingdom can be a launchpad for Japanese businesses seeking investment opportunities in the Middle Eastern and African markets“, we have a first indication that it is equally opening a double dipping opportunity for the mentioned bank with ties to both Egypt and the UAE. This is not some get quick rich stage, but the long term play will be extremely profitable for all three involved. All this as we see in opposition that investments in Europe are on the decline. Sources like Politico Europe and S&P global where some fields are losing as much as 19%. A dire stage in light of the 3 trillion euro float of its currency is nothing short of an optional nightmare stage for Europe. The escalating budget crises of Italy is merely one of several factors that will soon force Europe to make much larger changes, the slumping European economy is a close second. There are two other elements that I highlighted a few days ago, but we will see more on that soon enough. It was nice to see one source giving us a clear stage whilst pointing at history. the mere “After all in 2008, on the eve of the world’s worst economic and financial market crisis, Ben Bernanke dismissed the sub-prime crisis as a non-event. Meanwhile Jean Claude Trichet, Mr. Draghi’s predecessor at the helm of the ECB, went one step further by ill-advisedly raising interest rates in the months immediately preceding the September 2008 Lehman bankruptcy” should be one clear indication that there are plenty of optional dark clouds on the European horizon. Let’s not forget that people like Ben Bernanke and Jean Claude Trichet were never held accountable or prosecuted for any of those ignored events, were they?

Have a great day!

 

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One economy crises a day

Yes, it is the Guardian that alerts us to: ‘World economy at risk of another financial crash, says IMF‘ (at https://www.theguardian.com/business/2018/oct/03/world-economy-at-risk-of-another-financial-crash-says-imf). So as we see: “Debt is above 2008 level and failure to reform banking system could trigger crisis“, we think that this is a small issue, but it is not, it is however not the real dangers, merely a larger factor. The quote “With global debt levels well above those at the time of the last crash in 2008, the risk remains that unregulated parts of the financial system could trigger a global panic, the Washington-based lender of last resort said” gets us a little closer to it all, yet it is the phrase ‘Washington-based lender of last resort’ that is a little more at the core of it all. This, or in a roundabout mention towards the US federal reserve is not the only part in this. It is the ECB with its quantative easing setting, now at 3.7 trillion, which in light of the Bloomberg article in 2017 (a year ago now) mentioning ‘Some ECB Members Identify 2.5 Trillion-Euro QE Limit‘ becomes a larger issue. With the US national debt at $21.5 trillion the ECB at an estimated €2.4 trillion bonds as per June ($2.7 trillion), we are going off the deep end soon enough. So as people were all in such a state that I was wrong, it would not happen again and that the economy is great. Consider that I warned about this danger several times between 2016 and the latest in May 2018 with ‘Milestones‘ (at https://lawlordtobe.com/2018/05/05/milestones/). Yet all the parties are stating that I was wrong, and several hours ago, the Guardian treats us to: “The growth of global banks such as JP Morgan and the Industrial and Commercial Bank of China to a scale beyond that seen in 2008, leading to fears that they remain “too big to fail”, also registers on the IMF’s radar“. Yes, ‘too big to fail’, or should that be ‘to big too fail‘?

So when we see Gordon Brown getting quoted with: “former UK Prime Minister Gordon Brown said last month that the world economy was “sleepwalking into a future crisis,” and risks were not being tackled now “we are in a leaderless world”“. I found his response slightly moronic as there is no leaderless world, there are merely elected officials who know that they are merely in temp positions and they are paving the way for really nice paid futures. There is a distinct difference there. And in that I am still modestly awaiting my honour degree from the London School of Economics, in a pinch one from the Wharton School of the University of Pennsylvania will do too.

So when we see both “Christine Lagarde was concerned that the total value of global debt, in both the public and private sectors, has rocketed by 60% in the decade since the financial crisis to reach an all-time high of $182tn“, as well as “the build-up made developing world governments and companies more vulnerable to higher US interest rates, which could trigger a flight of funds and destabilise their economies. “This should serve as a wake-up call,” she said“. My response will be: “No Christine, you are wrong! The entire setting of a wake-up call is already 3-4 years too late. You have been unable to nurture the ECB, keep governments awake to get spending under control and the fallout will be huge and the people get to pay for it all“. The one benefit is that too large a population will be going through two depressions wiping out all their savings soon enough and in that there is an actual chance of a new civil war that would spread all over Europe. At that point the life of any politician will be £0.02 at best, once that starts, there will be not merely a Brexit, it will herald the end of the EU and it will impact the US in a most disastrous path, not merely wiping economies out, there will be a lack of trust between the US and the EU that will surpass the distrust levels between the USA and CCCP at the height of the cold war. It will redraw global economic maps to the larger degree. That is also seen in the part when we recollect the June 23rd article called ‘They are still lying to us‘ (at https://lawlordtobe.com/2018/06/23/they-are-still-lying-to-us/). There we were treated to “Greece is once again becoming a normal country, regaining its political and financial independence“, remember that part? So how normal is that country as we are treated to ‘Greek Bank Stocks Tumble Amid Concerns Over Capital, Bad Loans’ by the Wall Street Journal a mere 8 hours ago? So when we see “Investors appear to have completely lost confidence in Greek banks,” economists at HSBC said in a research note. The four main banks— National Bank of Greece, Alpha Bank, Eurobank Ergasias and Piraeus Bank—recently submitted ambitious plans to rid themselves of more than half of their soured loans by 2021 to the banking-supervision unit of the European Central Bank, several bank officials said. Under the new plans, which the ECB is considering, the banks would commit themselves to reduce their nonperforming loans to 15%-21% of their total loans, compared with today’s levels of 40.7%-54.7%“. the article (at https://www.wsj.com/articles/greek-bank-stocks-tumble-amid-concerns-over-capital-bad-loans-1538584978) gives us a lot more, but it shows that the banks are trying to shed the bad loans in as creative ways as possible and in this the governments are as I personally see it part of the problem, they were never part of any solution and the people will get to pay for it all as they were treated last quarter to: “as elderly Greeks face losing up to €350 ($416) per month when new pension cuts are implemented as of Jan. 1, 2019“, I believe that as the Greek banks collapse to the larger degree, as the Greek banks are shedding over 50% of outstanding loans, their value would also collapse as will their prospects and the loss of confidence will only increase the pressures. All whilst payments will still be due and cannot be met as it is staged to be at present. So there is a chance that Greeks will lose 50% more than they are currently losing at present in the next quarter, so we will see that the Greeks will start the year in utter poverty and the rest of Europe is not far behind. The ECB with its badly conceived QE plan has achieved that, so when the people are given that danger and handed the loss of retirement funds, utter rage will not be far away after that.

It was one of the reasons why I kept close eyes on Salini Impregilo. Even as Europe is going proverbially down the drain Salini Impregilo has been making headway on a global scale, foremost in Saudi Arabia and as their projects are kicking off, the infrastructure needs for Saudi Arabia grow. Their needs for dash boarding, reporting and data analytics will rise over the next two years and will require more and more knowledge and infrastructure with any additional building they are assigned. The entire project of the King Abdullah Financial District (KAFD) drew it even further to the foreground, merely because the required concrete levels that can be delivered seem to be at 30%-40% of what is required soon enough. It is an opportunity for Saudi Arabia and the UAE, but also optionally for Egypt. All these shortages ignored for now, yet when we see the image from 2012 and what was required then, and we consider that Neom will require close to 15 times that, where will the concrete come from? And it is not merely the availability; it will be about the proper planning of resources. Even as Salini Impregilo is merely a larger player of several projects, they in the end all need their concrete and where will that come from? So at this rate I expect to see the delays making the forefront news from 2020 onwards. Even as some places are increasing as much as they can afford. I expect it to fall short by a larger degree soon enough and when we are introduced to the heart of the matter. Smart cities will need smart infrastructure and the wiring will be well over 20 times what the entire Boeing 787 Dreamliner fleet required and that is a lot. the skills, the training to get the amount of people fuelling this is short on every level as I see it, so as Europe collapses with the debt, Saudi Arabia gets the option to buy staff cheaply soon enough. No merely getting the knowledge they need. Yet the brain drain to that extent has never been seen before anywhere in the world and that is where the ECB will suddenly realise that the fuel required to fix any acts of stupidity in the last 10 years will no longer be available and at that point Wall Street will wake up getting to live the perfect nightmare. It is not merely that there will suddenly be a boost of economy because there is no unemployment, getting the people trained up will take decades, stopping economic growth right quick and for much too long.

And as other players open up the doors for a guaranteed decent lifestyle, the setting is changing. We see that in the European Pensions last July, a mere 2 months ago when we were given: “European pension schemes are becoming increasingly attracted to the high returns and diversification benefits offered by frontier markets” This is the setting of: ‘more developed than the least developing countries, but too small to be generally considered an emerging market‘, yet as the high returns are estimated, the risks are also higher and there seems to be the risk ‘risk premiums are more greatly affected by political, economic, and financial factors‘ that is seemingly ignored to a larger extent. We see that part when we consider both “MSCI Frontier Market Index is the most widely used benchmark for equities. However, even this is highly concentrated in certain markets and sectors – financial stocks make up 46 per cent and the top three countries make up 53 per cent“, as well as “Argentina, which makes up around 22 per cent of the index, and Vietnam, 15 per cent“. So, now consider that the very same Christine Lagarde treats us to: “The International Monetary Fund (IMF) has agreed to increase a lending package with Argentina by 7.1 billion US dollars (£5.3 billion), seeking to calm markets over the country’s ability to meet its debt amid growing economic turmoil” a mere week ago. Do you still think that I was kidding or merely trying to kick the dead donkey? I am not stating that this is the fault of Argentina. I am speculating that too many parts of Wall Street are banking on the failure of others and it opposes the setting of returns on those seeking success, in this setting the pensions will lose, optionally they will lose every time without fail and the people are left with an empty bag not worth the price of that empty bag. Do you think that people will sit down and accept that? No, they will be beyond furious and the setting of Johan de Witt and Cornelis de Witt blamed and lynched in The Hague, the rioters were never prosecuted. So, there will be enough motivation on more than one level. It is something for the current European politicians to keep in mind, because this could happen again and the setting that the people face over the next 10 years is a lot worse than the ones that the population faced then. At that point, when this starts, I truly hope that those politicians will have the option of a quick getaway out of Europe, because they will not know safety ever again in that place.

So whilst we see the distancing of politicians on all fields whilst trying to drench themselves in non-accountability, whilst they will try the path of ‘It was a miscommunication and we were given the wrong advice‘, the people will no longer accept that as the evening news. They will want their pound of flesh and a bucket of blood and the regard of the value of politicians at that point will have been degraded to zero, and their ‘post life’ Facebook profile image might optionally look similar to the painting of the brothers De Witt as it was in 1672. You might think that it is mere speculation and it is, yet the trigger is not my speculation, it is the message of economic crises after economic crises as the governments are not acting against the banks and the exploiters that hide behind ‘too big to fail‘. The people all over Europe, if not on a global setting as they are mistreated to overly optimistic futures that cannot be met and have not been met for over a decade, you see, if that was actually true debts would have been receding, would they not? The only ones that did that harshly were the Germans and they are indeed in a much better place. It is the difference between being popular and doing what needs to be done and in that Angela Merkel was not about being popular, yet now those Germans are in a much better place than most other nations. It is something for you to consider as you notice your pension is gone and you want to take it out on someone.

so whilst we consider the final line in the Guardian, which was: “Without a rise in investment economies remain vulnerable to financial stress“, we need to consider that the setting is not merely about ‘investment economies‘, it is about the setting where large corporations come in and use that setting to ‘invest’ whilst draining away the gained momentum, so the economy that once was in that stage has been drained and those momentum profits are relocated to other places where ever those boards of directors are fuelling their personal wealth accounts, leaving those nations in a post investment era that is now merely regarded as a consumer fuelled economy whilst those people never gained the better economic standing to spend the money fuelling it further.

A setting where the equilibrium of economics fails as there was never a state of balance, merely a stage of relocating available wealth and the frontier markets are no help, they are merely an optional stage not unlike the CDO issues of 2008, in my view a way to avoid taxation and move whatever they could to a non-reporting nation. Or as one source stated: “the smarter operators no longer use filthy lucre but instead employ modern financial devices such as Interest Rate Swaps (IRS) and Total Return Swaps (TRS) to evade tax“, a setting where some take a 4% loss to avoid 26% taxation, it still wins them 22% and many had to live of a bonus a lot more shallow then that and from a base amount massively smaller than the one moved away.

One crises a day, I wonder what the bad news we will get treated to next week.

#HappyWorldAnimalDay

 

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One thousand solutions

Yes, it has been 5 years in the making, or was that six? But the day is here, today is my 1000th article. So in light of some of the slamming that I have done against Microsoft (which they deserved and it was highly entertaining for me as well), it is also just to give recognition where it is due.

To see that in its proper light, we need to take a jump towards Sony, the very first PlayStation and a game called Gran Turismo. The first having the highest rating was one that stood out. You see, Kazunori Yamauchi gave us with Gran Turismo something that we had not seen before. Oh, we had seen racing games going all the way back to the CBM-64 with pole position. Yet Gran Turismo was something new, something unheard of and the screenshot that you see here might seem laughable to you now, but this was 4 console generations before now and then this was amazing. It was new it was fresh and it gave the players something that they had not had before and we all loved it!

These elements are important when we realise the article on Forza Horizons 4 for Xbox One (X) when we read “There’s almost been a sense of rediscovering what Britain is. I don’t think we’ll ever make a game quite like this again“, they were the words of Ralph Fulton. I personally believe he got it right, but he was not correct. I believe that this game added heart to Britain, which is a lot more then you bargained for. If there was one game that gives light to the consideration to buying a model X console then this game is it. The images are not merely about the cars, the views of wherever you drive, whenever and in what weather just jumps at you; it surpasses almost everything you will have played in racing games, and in this, even me, who is not a racing fan at all, I got blown away. They did not merely add some tracks to race, they gave us the UK to race in, and everyone, not merely those in the UK seems to be loving it.

I have written this before, so why repeat it?

Well, in my view Microsoft did something that Ubisoft should have done. You see, if you plan to make a game that is designed not to be a failure, you’ll never create a true winner. To do this, you need to jump out of the box and optionally burn it. This is seen on a much wider scale. We get part of this with ‘Instagram co-founders resign to explore ‘creativity again’‘ (at https://www.theguardian.com/technology/2018/sep/25/instagram-co-founders-resign-to-explore-creativity-again). Here we see that “Kevin Systrom and Mike Krieger, have announced their resignation from the company, which is owned by Facebook Inc, saying that they are leaving to “explore our curiosity and creativity again”“. We can speculate on whether this is the full truth, or whether there is the setting that Mark Zuckerberg has made some colossal errors and these errors are not done yet, they are still to some degree escalating and as the wild wild west of the internet is now in a stage where governments are starting to ‘cooperate’ on setting rules and regulations in place. We see the Independent giving us last year: ‘Government outlines plans to ‘regulate the internet’ and get rid of problem content‘, which is hilarious for all the usual reasons.

So, as we see how government is introducing rephrased ways to set censorship, instigate discrimination and avoid issues of accountability, we are left to our own devices and there are more and more devices arriving, all remaining in some set league to avoid setting the stage where data is the most eagerly desired currency, because some people are not willing to go there just now. the one element avoided is that whilst we see in paces everywhere that porn is a problem, we see that it is so widely available that the internet is not the problem and that identification is at the heart of the matter, because America is not the solution, America has for the longest time been part of the problem. It has been for quite a while. It wants to police the internet, it wants to have freedom and set boundaries, but only as long as it does not hinder American business and that was the problem all along. Even as the numbers are not up to date, when you consider that “When faster internet led to a boom in video pornography in the mid-2000s, worldwide industry revenue skyrocketed to an estimated $40-$50 billion” is set on taxable dollars, do you think that America wants to do anything that is realistically achievable? I remember the short discussion that was going on somewhere around 1993-1996. I forgot the actual date, but there was a discussion that was started by the adult entertainment industry. They were the adults staging the setting that by having an .XXX domain (or something similar), there would be a place for adults and children could more easily be kept away. It did not go far and it was not successful as some religiously pushed people wanted all the porn from the internet. So tell me, after 20 years, how did that go? American bias, ego and greed stopped a whole range of solutions getting through and some could have made a decent impact. All stopped by ego and greed. It gets to be worse, because as the US is now trying to arm wrestle IP powers away from the people and making it government goods. To see this, we need to take a look at the IP Watchdog (at http://www.ipwatchdog.com/2018/03/01/u-s-patent-system-americas-decline-competitiveness/id=94249/), and we get treated to: “To find out who is responsible for the demise of American competitiveness you only reflect a mirror against U.S. innovation policy“. We see additional parts with: “China has established courts that specialize in intellectual property litigation so litigants have an experienced, fast and cost-effective forum to resolve patent disputes. These specialist courts take about 10 months to resolve patent infringement lawsuits with litigation costs running at approximately $200,000. In contrast, patent litigation in the U.S. often takes five or more years to resolve with litigation costs running in the many millions of dollars. A fairly ordinary dispute when litigated in the U.S. can easily surge past $3,000,000 when you factor in the inevitable post grant challenges (each of which will run $500,000 to defend, sometimes more) and the federal court litigation after that“, Yet another source (the Diplomat) gives us: “The United States government believes that IP protection is critical to both the physical and economic security of the country. IP protection ensures that American businesses, which produce a disproportionate percentage of their value in IP, will remain competitive on the international market. The U.S. government also believes that advanced technology is critical to U.S. military superiority, and that protecting this technology (through IP law and other means) will keep the United States ahead”, the setting of security and the stage of innovation have been opposing one another almost forever, so how does that help innovation? And when we consider ‘IP protection is critical to both the physical and economic security of the country’, how long until some level of ‘national security’ stops the IP from remaining with the actual owner that filed the IP?

It gets to be shown as worse off, when we consider both: “patents challenged in federal district court as claiming unpatentable subject matter were invalidated 67% of the time. The vast majority of these invalidated U.S. patents would have been deemed valid under current Chinese patent law, and some of these invalidated patents do actually remain valid and enforceable in China, Europe and elsewhere throughout the world“, as well as the economic setting which we got last March with “a whopping $215 billion in sales for medications could be lost from patent expirations between 2015-2020 and $31 billion are at risk in 2018 alone“. How do you think the US economy will get hit when certain nations start their generic solutions, lowering medication costs by optionally thousands or dollars per patient for both hospitals and patients?

As the patent holders are now also realising that there are added benefits to be part of the Chinese IP system and due to a lack of enforcement, the US market is no longer of decent value, we see that they are confronted with global benefits against much larger local setbacks and limitations.

How does one relate to the other?

There is a correlation between video games and patents (yes there really is). The correlation is seen in creativity and out of the box thinking. The conservative path of: ‘make sure it is not a failure‘ stops innovation. You see, we have been treated to so many resources that some people cannot fathom how some solutions were designed on a 2 MB RAM, 1 MB VRAM system, with a disc that had a maximum of 650MB (the original PlayStation). The makers avoided all kinds of traps and found new innovative solutions to make the game work. Gran Turismo is one of those jewels that show what a system when properly used to the max could achieve. As we went to iterative solution thinking, we lost the ability to become truly innovative and that is where we see that innovative patents no longer are, merely in the presentation are they optionally regarded as innovative, and that is where we see the next wave of technology.

Even as we are still confronted with the allegations against Huawei, we got shown 6 months ago: “Huawei filed 2,398 patent applications with the European Patent Office in 2017 out of a total of 166,000 for the year“, basically 1.44% of ALL files European patents were from that one company. And when it comes to innovation, we were treated to: “In our first [5G] smartphone we’re going to introduce a foldable screen“, and if you think towards the old flip phones think again, you merely have to consider the concept image to see that actual innovation in not merely a jump from iPhone 6, to iPhone 7. When we start seeing Huawei optional speculated settings, we see an actual jump and we can agree that to some extent 2398 patents do make for an interesting push towards the future.

This all takes another leap forward when we consider that if we want to be players, the iterative model no longer works. We need to be first and we need to be better than everyone else and iterative thinking is what merely gets them second place. It is not merely brand marketing, it is becoming a new level of marketing all together. We merely have to see the settings and changes we see towards Neom in Saudi Arabia to see the potential there. It is Ericsson that has already set the stage where the UAE has the potential to gain business benefits of $3.3B over the next 7 years, that is an additional $500 million, nothing to sneer at and when we consider the opportunities we see when we add the stages and places that Salini Impregilo is already working on, we see the growth of a long term stage with dozens of golden parachutes for those who have the financial backers to get it up and running. Take information to a new level, not merely showing up on a display, but for you to tune in with your phone or tablet and select what you want to see, with the optional setting of “Line 3, also known as the Orange line, is 41.5km long with an 11km underground section. It will have 22 stations“, two 5G stations on the line and repeaters at every station will suddenly give you thousands of users, getting informed by you, giving them choice of what they want to be informed about and with the smart dumb devices I mentioned a month ago, you get the setting of any train with up to 250 people getting informed. It is not merely marketing at this stage; it becomes entertainment facilitation with personalised advertisements. Creating branding and loyalty at the same time, because it is the first trip, that moment when you are going to work, or going home when consistency tends to be a need for so many travelers, that is where the next stage is and that is in Riyadh, expose that to the Neom stage where the city is 32 times the size of New York, it is no longer merely on how fast people get from one place to the other, it is the setting that people will want and need information at this moment, the one giving what they need is the one with the information required. It is no longer mass media; it becomes what I would call ‘Legion media‘, a facilitated one to one media solution for all. Not one stream all watch, but hundreds of media streams interacting seamlessly on the needs of the user giving them one seamless stream of information. A fluidic setting of interactions as configured/disseminated for the viewer, all personalised and automated; a situation that requires 5G to work and a solution that remains fluidic for the changing need of the user. We know the reality of Neom being years away (apart from the act that building will take quite a while), it will be now that we see the need to prototype and pilot those new projects to get the flaws out and stage the setting for large deployment, for the mere reason that new solutions are nice to have, but when your new idea fails on day one, that entire city will switch to the next solution on day two and never consider you again, because that too is the stage of 5G. It will be more and more about getting it right the first time. I wonder how many developers have realised this and most of them will trivialise that of course, and it makes sense that they do. Yet when the backers learn that the 5G community will be a lot more critical than ever before, will they still continue backing, or will they hide behind alternative wealth bringing solutions?

You see the apps that will be the most valued and priced ones are not the ones that look cool. In 5G it will more and more about enhanced pragmatism and managing of your personal infrastructure. Did you not figure that out? When we see the options that Saudi Arabia brings, we need to also see the limitations that it has. So the right ability to manage that through domotics and smart solutions will be close to everything, pre heating, pre cooling, adjusting, shopping and groceries, all done on the fly when you have time.

Even when we see the opposition (always important) giving us: “King Abdullah Financial District north of Riyadh, meant to rival Dubai as an economic hub, is still incomplete after more than a decade. As of last April, nary a financial institution had agreed to occupy any of the district’s 73 buildings“. I think that this is important too. Is it merely the language? You see, when we see: ‘Financial District‘, we think Wall Street and consider that area. Yet when we see: “Designed by architecture firm Henning Larsen, the 17.2 million-square-foot master plan calls for over 60 residential, office, and retail towers, several schools and parking garages, a medical clinic, civic buildings, and three hotels“, we see a lot more than merely a financial district, we see an almost self-contained city. You see when we see the larger scale I see an optional obstacle, not a negative one, but one none the less. To give comparison, I need to take you back to an original game. It was called ‘Sim City’ and it was a game, but gave the player an insight into designing his city of the future. Zoning was important at this point, so it required gradual growth. By going too large in one area, you would be broke and could not gain momentum in other ways. Even as it looks amazingly beautiful, how will you get people there fast? How can you vacate 2 million people (most likely from Riyadh and other larger cities) and set them in the new stage? There are two ways. You either create a need in the new place, or you create opportunity in that place. The first requires essential growth; the second requires a staging investment drive.

In the first example, we need ‘a pressing need’, when there is an infrastructure or a structural need, you create jobs and people will move there for the new job, which is fine, but requires vast amounts of money and large players getting there. The second one is great, but is initially also costly. For the second example I will use a solution that was in South Australia some time ago. To get people there, they gave away land. They still need to build the house, but in this setting he people had 50% additional money, or lessened costs, yet to break even the government stated that the land was given, but represented value X, and when they sold the house, they would have to pay the invoice for the land first. Now consider this in the setting of the King Abdullah Financial District. And there we set the stage of ‘selling’ houses/apartments at a mere 10% of the price, yet cannot be sold until the 100% price is satisfied first. So you now have a setting where the next 10,000 apartments only seem really cheap, yet in that setting you also create need, because these 10,000 households will need infrastructure like food, water, clothing, transportation, entertainment, schooling and so on; with that we see the investors come. build their shops and grow their business, as a result housing value rises fast and creates not merely a need, but also creates additional growth, so as these houses exchange hands and new occupation, the government gets the outstanding 90% back and a thriving place. It is not a short term, or a fast solution, but it is one that brings growth, and creating larger infrastructure solutions, because at that point with the additional 10,000 people or more we see the growing need in every direction. As these elements grow other needs can grow too, when there are 10,000 potential candidates in the financial industry and a clear path of growth exists, only then would there be interest into growing the stock exchange in a new place. Yet in that setting we need to realise that for many industries the capital remains alluring. So when we are confronted with “potential tenants and investors are less optimistic than the district’s planners about its future success“, as well as “The potential is amazing. The inside is impressive,’ one Dubai-based expat, who toured the site and preferred to remain anonymous, told Reuters. But he added, ‘It will not be finished. Decision-making is very slow (on the project, and) people don’t have cash“, we see the clarity of what I described. The ‘not having cash’ can be alleviated in one way, creating additional needs. It is the ‘decision making’ part that now requires to be decided on (yes I see the trap here) and there too is a solution. If we consider the statement that Business Insider mentioned: “Some of the kingdom’s strict social codes, including one requiring women to wear dark robes, will be relaxed“, we see the option of creating an opportunity for the foreign players in Qatar to become a larger mesmerising target for ‘poaching’. When we consider the Bloomberg message earlier in May this year giving us: ‘Qatar to Allow 100% Foreign Ownership of Firms in All Sectors‘, we see the setting that there is interest, especially in the financial sector to grow options on a global scale and there too Saudi Arabia would be able to set the stage for the future. More important, once these investors see the benefit in one place, there will be an added stage towards growth towards Neom for them too. This could have additional benefits as a much larger stage between Saudi Arabia and places like Egypt could become a much more interesting choice for the future. that part is not merely seen in one way, it becomes an entirely different stage when we consider yesterday’s news with ‘Award-winning Dubbo solar home uses Tesla Powerwall 2 battery‘, you might think that this is a ‘So What?‘ stage, but it is more than you think. That part is seen with: “A building company in Dubbo says the Tesla Powerwall 2 battery in its new display home means the Dubbo solar home could potentially go off-grid. Award-winning Greenmark Homes installed a Tesla Powerwall 2 battery to boost the display home’s energy efficiency“, it becomes even more impressive when you consider the added: “Tesla big battery wins awards, prevents blackouts“, you see, even as Saudi Arabia has plenty of sunshine, at some point the sun goes down and that is where the usage changes and whilst we know that air-conditioning takes the bulk of the energy, we see that the overall need could be filled in more efficient ways and that too needs time to evolve and refine. It is taking solutions out of the box where we see the beginning of true innovation and there are plenty of places that can benefit, but we need to open the door to creativity to make it thrive and set the next stage of innovation. We can make fun of some situations as we are offered (a very old joke): ‘a new powder for hydration, to make it, merely adds water‘. It is the innovative person that uses the solution and creates a powder to capture the moist in the air and end up with water. That same application is seen when we see applications on energy and hydro needs and creates another solution, the one we forgot about. That is the nice part about these stages and on why we need to keep our focus on Neom, you see it is not about the size of the city, it will be about how certain situations get solved and how innovative those solutions are. That is where we will be able to test our creativity and optionally become an actual innovative player ourselves, driving solutions and new technologies forward, not iterative over time, but by leaps, which is how you end up with one thousand new solutions not a thousand versions of one solution.

 

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It started already

Even as we had seen all the plans regarding the Kingdom of Saudi Arabia and their ultra-modern city of Neom, it was only last week when the geological studies were reported to have started for all the construction sites (at https://aawsat.com/english/home/article/1390921/neom-begins-environmental-geological-surveys-construction-sites). Yet the placement of Neom goes a lot further than most realise. It will also be the gateway to the planned King Salman bin Abdulaziz Bridge, which will take 3 years, span a total distance of 10 miles and it will connect Saudi Arabia directly to the Sinai, to be more precise the bridge will connect to the Sinai a little north of Sharm-El-Sheik, opening up all kind of economic benefits for Egypt. Tourism and connectivity via Sharm-El-Sheik international airport will be boosted to well over 200%, it would also allow Saudi Arabia to delay its airport and use the bridge more effectively. It opens up a lot more when we consider that the setting now opens up directly to Kiev, Istanbul, Bratislava, Budapest, Brussels Talinn, Riga, Vilnius, Warsaw, Kuwait, Bagdad, Cairo, Algiers, Sofia, Minsk, and not to forget all the places that Air Cairo lines to, which is a much larger list. When you consider that the construction is about to start on a city well over 500 billion, how much unschooled labour will there be a need for? Did anyone that math in the equation? That is before projects are delayed and hit snags. Yes, Sharm-El-Sheik will prosper and gain a massive amount of value, because in a tourist place like that these people can get the entertainment they are unlikely to see in Saudi Arabia.

There is an addition part in all this. The bridge will go via Tiran Island, I feel certain that a ramp to that place will be booming tourism as well. No matter how that fares, the first steps are now underway and when building starts, we will quickly see the overexcited steps from all kinds of companies trying to get in, because that 500 billion has to go somewhere, does it not? That is before some realise that having concrete facilities near Sharm-El-Sheik might be equally worthy of consideration, because when Neom is there, the shortages in Sharm-El-Sheik will become abundantly clear soon thereafter. When you see the issues in Sharm-El-Sheik, going back to 2015 and before, we get confronted with stories like ‘British passengers reveal Sharm airport staff are STILL taking cash to help them skip busy security queues despite bomb threat‘ (Daily Mail, November 5th 2015), as well as a few other sources, so as the economic footprint increases, the Egyptian government has to either increase their diligence, hire outside expertise or risk losing a lot of money in that entire process. Mainly because adding a few hotels to Neom will be much easier to consider than most realise and Saudi Arabia will be interested in setting a much larger tourism stage. Having a high tech city is one thing, having a truckload of consumers wanting to take some off it back home to show off is another matter on that very same coin.

In this we must also realise the size of Neom, the Neom site is large, large then anything ever seen before, it will stretch the western coastline to the proximity of Jordan, around 50 Km south of it, keeping it 75Km away from Eilat, giving Israel optional opportunities as well, I remember a Dutch guy who opened an ice factory in Eilat 40 years ago, the cubes for drinks, not the gelato. So there are options all over the place, all infrastructure needs that will not initially be available. Opportunities that some have no yet realised, all open for the investors who see the need for thousands of builders needing a watering hole, needing food and needing entertainment. This will enable places like the small city of Haql to experience a Gold Rush growth momentum.

From Haql to Hamid (where the bridge is likely to start) the distance is a mere 125Km, not the greatest road as it adds 10% to the trip, but the 392 will directly link to Saudi highway 5 getting you to Haql and that setting is merely a starter for plenty of other options. You see, when we consider that part, the bridge itself, when the final point gets a 4G tower, it would effectively cover Sharm-El-Sheik as well, I cannot say what the 5G coverage is as I do not have any reliable data on the range of such a tower. The same could be achieved from Tiran Island, covering the tourist spot and the southern part of Neom (based on 4G numbers).

No matter how it is all pushed, it has started, well, it started some time ago, but with the geological surveys a new chapter is starting, I reckon that when the first studies have been completed and accepted, the setting of concrete will not be far off. It is in this stage where we saw just a month ago (at https://neomsaudicity.net/), “Italian construction company Salini has announced plans to join NEOM project and expand into the Middle East, which includes project contracts in the Gulf, especially Oman, Saudi Arabia and the United Arab Emirates“, and Salini is doing just fine. When we are given: “The company has also prequalified for the first phase of the $ 1 billion Avenues project, which is to be made up of two hotels, a shopping center, and an administrative building. It is part of 2,410 active projects in the Saudi Arabia since April, worth $ 190 billion“, we see that growth will be on the front bench of the board of directors of Salini Impregilo for years to come, which I expect will also come with additional growth projects in Sharm-El-Sheik. I reckon that this headway is the best news that Italian Prime Minister Giuseppe Conte was seen in close to a decade, yet they are one of many, and all of them will be needing people, so as the billion dollar contracts are handed out, and when we consider the Business Insider headline: ‘a $500 billion mega-city that’s 33 times the size of New York City‘, how long will it take until these companies realise that there are deadlines and that they are understaffed? That’s not merely construction and engineering. How about all these Arkey systems, Autodesk and Autocad placements? What do you think will happen when the IT division shuts down for whatever reason and local IT support will be required? That is merely beyond the commonplace Office software, that part you can evade with cloud services and in a pinch rely on your Google account. CAD software and design software is another puppy and when the heat strikes the power falters and systems need ghosting and restoring, it will be all about local manpower and things will always go wrong at the wrong moment. So, when you score your billion dollar contract and the infrastructure takes a dive, how prepared are you? How strong are the infrastructure settings for replacing it all? So even as the Neom News site gave us in April “NEOM Announces first 6 Jobs“, we need to realise that they will need another 15,000 trained professionals in that location soon enough. I wonder where these people will go shopping for the shortage. There is every chance that some of them will rely on poaching soon thereafter, which optionally raise staff costing by 200%-500% (depending on expertise needed), at that point consider the other parts that every building, every mall and every infrastructure needs. Neom city will soon become one of the largest employer hotspots for the next decade.

 

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