Core Insights - The recent detente between the U.S. and China is viewed positively, as it is expected to boost global confidence and economic growth [1][2] - The current environment is favorable for business, with increased financial market activity and preemptive funding for future projects, despite some investment deferrals due to tariffs [3][4][5] Business Environment - Tariffs have led to clients hedging outcomes and diversifying manufacturing away from China, creating uncertainty that defers some investments [4][5] - The medium-term outlook is optimistic, with a belief that easing tensions will benefit the global economy and business operations [5] Regional Opportunities - The Middle East, particularly Saudi Arabia, is experiencing significant growth, with public and private sector investments driving opportunities [9][10] - The bank has established a strong presence in the region, including a full bank in Saudi Arabia and operations in Egypt, which is on a recovery path [9][10] Wealth Management - The wealth management sector is becoming increasingly competitive, with a focus on enhancing presence in Dubai to serve the region [11] Credit Environment - The current credit cycle is described as benign, with no immediate signs of stress in the portfolio, although caution is advised regarding potential future credit losses [12][14][17] Digital Assets - The bank distinguishes between cryptocurrencies and digital assets, emphasizing the importance of stablecoins and the digitization of money [20][23] - The bank has developed a leading institutional-grade cryptocurrency digital asset custodian marketplace, facilitating the transition from fiat to digital currencies [24][28]

Crypto Market Recovery - The crypto market experienced a significant rebound on Monday, with Bitcoin rising 3% to approximately $115,000 and Ethereum increasing nearly 9% to around $4,130, following a historic liquidation event [1][2] - The total market capitalization of all cryptocurrencies recovered nearly 5% to reach $4.01 trillion after dipping below the $4 trillion mark [1] Liquidation Event - A disastrous Friday saw over $19 billion in traders' positions liquidated, marking the largest one-day liquidation event recorded by CoinGlass [2] - Bitcoin's market capitalization dropped by more than $200 billion, with a price decline of nearly 10%, while Ethereum experienced a more severe drop of almost 14% [2] Impact on Stablecoins - The market turbulence also affected stablecoins, with USDe, a major stablecoin, temporarily depegging to 65 cents on Binance before rebounding to $1 [3] - The depegging incident was isolated to Binance and not observed on other exchanges, as clarified by the founder of Ethena Labs [3] Trade Tensions with China - The market chaos coincided with President Trump's social media post threatening China with a 100% tariff on top of existing tariffs, following China's recent trade restrictions on rare earth metals [4][5] - Trump's aggressive rhetoric was later softened, with a follow-up post stating that the U.S. aims to help China, not harm it, and U.S. Treasury Secretary Scott Bessent confirmed a de-escalation of trade tensions [6]