Forever Young!                                                                   21 March 2025                    

KeyMavens Real Estate Development launched Montage – The Al Jaddaf – Dubai’s first urban residentia resort, set for completion in 2027. Engel & Völkers Middle East will oversee sales and marketing for the project, which includes one-bedroom and two-bedroom apartments. It is set for completion in 2027. The project comprises one and two-bedroom apartments, with Portola, a full-floor sanctuary of unparalleled experiences, outdoor pools surrounded by lush urban forests to immersive indoor wellness retreats. Oher features include a welcoming luxury lobby/ lounge, fitness centre, pool & deck retreat, ice room, cold plunge therapy, oxygen room, 180-degree relaxation room, Himalayan salt room, lagoon-style children’s pool, virtual reality room, urban forest and red-light therapy.

So far this year, the five leading nations, when it comes to purchasing Dubai real estate, are India, UK, Italy, Russia and Pakistan, as the local market continues to attract a diverse global audience. Betterhomes noted that Italian and Egyptian sales rose by 22% and a very impressive 150%. The consultancy added, “this year, we’ve seen a clear shift in buyer demographics, with a significant rise in Egyptian and Italian investors. Many of our Egyptian clients are seeking stability amid currency fluctuations, while Italians are drawn to Dubai’s tax advantages and luxury lifestyle. It’s not just about buying property – it’s about securing their future in a globally recognised market”

This week, the Dubai Land Department launched the pilot phase of the ‘Real Estate Tokenisation Project’. This initiative is set to digitise property transactions by converting real estate assets into blockchain-based digital tokens, significantly enhancing transparency, efficiency, and accessibility in real estate investment. Following the pilot phase, DLD will conduct a comprehensive evaluation to refine the project before full-scale implementation. It is expected that by 2033, this advanced technology, the first introduced in the ME region, will account for 7% of Dubai’s realty sector, valued at US$ 16.35 billion. This project was developed in collaboration with the Dubai Virtual Assets Regulatory Authority andDubai Future Foundation through SandBox Real Estate. The Real Estate Tokenisation Project is designed to:

• expand investment opportunities by allowing multiple investors to co-own a single property through tokenised assets
• attract global technology firms to the UAE’s real estate market
• strengthen Dubai’s position as a leading hub for virtual assets and digital economy
• enhance transparency and governance, ensuring secure and efficient real estate transactions
• support innovation by integrating advanced blockchain solutions into Dubai’s property sector

UAE’s Rove Hotels has been named the official partner for Dubai Airshow 2025 that will take place over five days from 17 – 21 November 2025. The first Rove hotel opened at Downtown Dubai in 2016, and the brand now has over 6.5k rooms open.

With the triple aims of strengthening the country’s judicial system, developing the country’s indicators related to the rule of law and enforcement of justice, and achieving effective justice based on the concepts of partnership and integration, the federal cabinet has approved executive regulations for the law regulating the legal profession and legal consultation profession. Its specifications include the conditions for:

• transferring a lawyer from the roll of lawyers practising before the courts of first instance and appeal to the roll of lawyers practising before the Federal Supreme Court

• practical training for trainee lawyers and the obligations of the lawyer supervising the training, along with the regulations for licensing non-national lawyers to practise law in the UAE

• registering researchers and legal advisors, including the regulations for deleting and re-registering a researcher or legal advisor, as well as the powers of legal advisors

• establishing the register of law and legal consultation firms and the procedures for licensing, suspension, deletion, and liquidation thereof, as well as the regulations for the equivalency of university qualifications

Furthermore, Emirati lawyers and legal consultants may establish professional companies individually or in partnership with international law firms after obtaining the necessary approvals from the competent authorities, provided that these firms have been established for at least fifteen years and have branches or companies in at least three other jurisdictions.

The World Happiness Report 2025, published by Gallup, sees the UAE climbing to twenty-first, ahead of the likes of the UK, the US, Germany, France, Singapore, and all Arab countries, but behind Finland (number one for the eighth consecutive year), Denmark, Iceland, Sweden and Iceland; at the other end of the scale comes Afghanistan, Sierra Leone, Lebanon, Malawi and Zimbabwe. The Happiness Index is based on a three-year average of quality-of-life assessments across different nations. The UAE ranks:

• sixteenth globally for donating money, reflecting its culture of generosity
• nineteenth for volunteering time, reinforcing its commitment to social welfare
• twelfth in the world for believing a stranger would return a lost wallet, showcasing strong societal trust
• sixty-seventh for helping a stranger, indicating an area for improvement

The study noted that the UAE consistently ranks high due to its economic stability and giving culture, which are closely linked to happiness, and that UAE’s strong job market, economic growth, and high living standards have contributed to increased happiness levels, with 2025 declared the ‘Year of Community’ to further strengthen social bonds.

A recent survey by Perspectus found that UAE professionals work an average of seven extra unpaid hours per week, raising concerns about work-life balance and employee well-being. Some alarming statistics see 90% of employees responding to work emails and calls outside official working hours, a high 59% struggling to disconnect from work when at home and 76% saying that the work-life balance has become more skewed since the pandemic. The fact that employees are working harder should be a wake-up call for employers, particularly if they want to retain happy and motivated staff. Psychologists suggest that reducing work hours could significantly improve employees’ mental and physical well-being, reinforcing the need for companies to strike a better balance between productivity and employee health.

Additional insights from the survey show that:

• 55% of employees feel that working beyond official hours is an unspoken expectation
• 43% worry that if they do not put in extra time, someone else will
• 33%of respondents said their boss directly told them to work harder
• while 34% of employees feel loyal to their company, they do not believe their employer reciprocates that loyalty

With National Central Cooling Company, a 51% shareholder, and Dubai Holding Investments, with the balancing stake, a concession agreement has been signed to provide district cooling services for Palm Jebel Ali. The major shareholder, also known as Tabreed, is 82% owned by sovereign investor Mubadala (42%) and the French low-carbon energy and services company ENGIE (40%), This structure is designed to optimise cooling capacity, enhance information-sharing and strengthen customer protection, while ensuring sustainable cooling solutions for this transformative development. The project is expected to cost US$ 409 million, with construction work expected to start in Q2; the first cooling services is expected to be delivered by 2027.

It seems that every other week a new CEPA is announced, with news that Tunisia is the latest to enter into negotiations with the UAE. The triple aims of a Comprehensive Economic Partnership Agreement are to strengthen bilateral trade and investment, by reducing tariffs and trade barriers, improving market access, and creating new investment pathways across key sectors. The UAE Minister of State for Foreign Trade, Dr Thani bin Ahmed Al Zeyoudi noted that Tunisia is a valuable trade partner, with non-oil trade topping US$ 350 million – 7.7% higher compared to last year; the UAE is Tunisia’s top trade partner in the GCC region. A CEPA paves the way for new opportunities for JVs, particularly in agriculture, manufacturing and renewable energy sectors. To date, an impressive twenty-six CEPAs have been finalised which is one of the reasons why the country’s 2024 total trade reached an all-time high of $816 billion – 14.6% higher on the year.

The UAE General Civil Aviation Authority has unveiled the region’s first national regulation, ‘CAR Airspace Party Uspace’, dedicated to certifying air navigation service providers for unmanned aircraft.  This has been introduced because of the need to set up a robust protocol for entities looking to deliver air navigation services for drones. It will ensure that drone navigation will be able to immediately operate into the existing aviation ecosystem, while ensuring a safe and efficient airspace. It will also encompass all the other variables that will impact the running of this relatively new form of flying. This will include contracting, training, quality assurance, safety protocols, future planning, auditing, and certification. 

Last year, National Bonds distributed US$ 160 million in returns to sukuk holders who had invested US$ 4.31 billion by the end of last year – a 22.5% annual increase. Some savers earning up to 4.75%, while the overall average return rate stood at 4.02%. 2024 also witnessed a 51% increase in the number of regular savers, highlighting the growing demand for structured savings plans in the community. There was also a 41% 2024 hike in digital savings. National Bonds continues its low-to-medium risk strategy to ensure capital protection, with an investment spread of:

• up to 20%        bank deposits
• 30% – 40%      fixed income assets
• 10% – 12%      listed equities
• 8%                    private equity
• 20%                 real estate

In 2024, National Bonds became one of the first companies to offer end-of-service benefits programmes, in partnership with the Ministry of Human Resources and Emiratisation. The firm has also an annual rewards programme, valued at almost US$ 10 million, along with other tangible incentives, aims to inspire a disciplined saving culture.

A resolution, to make it easier for free zone businesses to expand their mainland operations, has been issued by Dubai’s Crown Prince, Sheikh Hamdan bin Mohammed bin Rashid. All that is required for any free zone company that wishes to avail of this service is to obtain the necessary permits from the Department of Economy and Tourism. It is expected that this initiative will also create a more dynamic and efficient business environment, drive job creation and innovation, as well as fostering a competitive economy. All establishments, operating outside the free zone and within Dubai when this resolution takes effect, must comply with its provisions within one year from its effective date.

Following yesterday’s US Federal Reserve’s announcement, to maintain the Interest Rate on Reserve Balances as is, the Central Bank of the UAE followed suit and decided not to change the 4.40% Base Rate applicable to the Overnight Deposit Facility. The CBUAE has also decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE at fifty bp above the Base Rate for all standing credit facilities. The Base Rate signals the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the UAE.

This week, Nasdaq Dubai welcomed its latest listing – a US$ 1 billion ten-year unsecured sukuk at a rate of 5.038%, by the Government of Ras Al Khaimah; this brought the bourse’s total value of sukuk to over US$ 92.7 billion, resulting in the value of debt securities, currently listed on Nasdaq Dubai, to US$ 136.2 billion across one hundred and fifty-seven issuances. Fitch Ratings has forecast a robust UAE debt capital market this year, expecting its value to top US$ 400 billion over the next few years. This will be achieved by several drivers, including funding diversification, upcoming debt maturities, infrastructure financing, regulatory reforms, and the Dirham Monetary Framework implantation.

The DFM opened the week, on Monday 17 March, two hundred and seven points lower, (4.0%), the previous four weeks, shed forty-one points (0.8%), to close the trading week on 5,100 points, by Friday 21 March 2025. Emaar Properties, US$ 0.15 lower the previous week, gained US$ 0.08, closing on US$ 3.65 by the end of the week. DEWA, Emirates NBD, DIB and DFM started the previous week on US$ 0.68, US$ 5.46 US$ 2.06 and US$ 0.36 and closed on US$ 0.66, US$ 5.44 US$ 1.97 and US$ 0.36. On 21 March, trading was at two hundred and forty-five million shares, with a value of US$ two hundred and fifty-four million dollars, compared to dollars two hundred and ten million shares, with a value of US$ one hundred and two million dollars, on 14 March.

By Friday, 21 March 2025, Brent, US$ 0.19 higher (5.8%) the previous week, gained US$ 1.56 (2.2%) to close on US$ 72.14. Gold, US$ 149 (5.2%) higher the previous fortnight, gained US$ 25 (0.8%) to end the week’s trading at US$ 3.109 on 21 March.

The latest Post Office Travel Money study, offering the best value for money for UK holiday makers, ranked Portugal’s Algarve the cheapest out of forty-six destinations surveyed. The analysis compared prices for eight typical tourist items and discovered the Algarve offers significantly lower prices than many other spots. It found that a cup of filter coffee cost just US$ 1.64, a 200ml bottle of suncream – US$ 6.58 – and a three-course evening meal for two with a bottle of house wine – US$ 52.20. These compared to the most expensive destination, New York, where the three items cost US$ 4.88, US$ 10.54 and US$ 166.02 – more than triple the cost found in Portugal.  Overall, prices for UK visitors to the Algarve dipped 1.6% on the year, driven by the low cost of meals and drinks, and an annual 1.8% rise in the value of the pound against the euro. Other locations offering value to UK tourists include Cape Town, Tokyo and Bali. Interestingly, it was noted that in over half of the destinations surveyed, there were declines in prices on the year, with the sharpest fall noted being Dominican Republic’s 26.5%.

Your morning coffee may become a little more expensive, with latest reports showing that world prices rose 38.8% on the previous year’s average, to attain a multi-year high in 2024. According to the Food and Agriculture Organisation of the United Nations, the main driver was inclement weather, affecting key producing countries. The FAO noted that last December, Arabica, the higher quality coffee favoured in the roast and ground coffee market, was selling 58% higher on the year, while Robusta, used mainly for instant coffee and blending, was 70% higher in real terms. These latest figures showed that the price differential between the two coffee varieties had narrowed for the first time since the mid-1990s. The FAO warns that the price may rise even further this year for a stack of reasons, including the possibility of further significant supply reductions, along with adverse weather in Brazil, reduced output in Indonesia, and limited export quantities from Vietnam, where farmers are replacing their coffee crops with durian to cash in on this emerging market; the country’s durian market share in China almost doubled between 2023 and 2024, and some estimate the crop is five times more lucrative than coffee.

According to figures, Brazil and Vietnam account for nearly 50% of world coffee production, with global coffee production, which in 2023 topped eleven million tonnes valued at over US$ 20 billion annually; the global coffee industry generates over US$ 200 billion in annual revenues. The value of total coffee trade is estimated at over US$ 25 billion per year. In 2023, coffee export earnings accounted for 33.8% of total merchandise exports in Ethiopia, 22.6% in Burundi, and 15.4% in Uganda. The largest coffee importers were the EU and the US.

Earlier in the year, talks between Nissan and Honda would have resulted in the creation of a mega US$ 62.13 billion car giant. This week, there are reports that the former is to cease negotiations. It was only last November, the carmaker had ended a twenty-five-year alliance with Renault, (which had reduced its equity in the alliance), and Mitsubishi, amid warnings that it would have just fourteen months to survive without a partner. It seems that the breaking point this time was that Nissan did not want to be a Honda subsidiary, indicating that control could have been a contentious issue. If it had borne fruition, the new alliance would have created the third-largest global car manufacturer and helped both companies have a stronger chance of competing against the growing number of Chinese car brands in export markets. Honda has released a statement, insisting there are no plans to end discussions between the two companies. There is no doubt that Nissan will be on the lookout for a new partner, with one possibility being Taiwan’s Foxxconn, the world’s largest producer of contract electronics. Such a deal would see the tech company helping to develop fully electric models, such as future generations of the Leaf hatchback.

Volkswagen saw a marginal 1.4% decrease in 2024 sales, to 4.8 million vehicles, attributable to a sluggish economy and strong competition. Strangely, China was the German car maker’s biggest source market where it sold nearly 2.2 million vehicles. Its revenue stream nudged US$ 2.6 billion higher to US$ 356.4 billion. However, their best-selling item was currywurst – a sliced German sausage, covered with ketchup and curry. Volkswagen sold around 8.5 million currywurst sausages during 2024 – a 200k increase compared to twelve months earlier. VW is not the only carmaker doing a sideline – Peugeot has produced a wide range of salt, pepper and coffee grinders.

Volkswagen AG’s Audi posted that it will lose as many as 7.5k positions (about 14% of its German workforce), by 2029, as its margins begin to head south; these retrenchments will not impact actual factory workers.  The move to slash spending is to make the carmaker more competitive, with 2024 deliveries declining by 12%, as it struggled to gain traction in markets such as China. Over this five-year period, it plans to invest up to US$ 8.7 billion to introduce new cars to better compete in the US and China. By the end of 2026, the plan will also include introducing ten new models to the US market to try and regain the 14% slump in 2024 sales. It is also adding ten new plug-in hybrid vehicles, by the end of this year, amid slowing demand for its fully electric models. It has already started making its Audi Q6L e-tron electric SUVs in China, with local partner, FAW, and will make additional cars there for local customers from mid-2025. Its parent company, VW, is planning to ditch 35k from its payroll, whilst Porsche AG plans to cut 1.9k positions as it contends with muted luxury demand in the key Chinese market.

Having raised a further US$ 1.0 billion in new equity financing, Elon Musk’s social network X now has a market cap of some US$ 32.0 billion – almost the same as in 2022 when he took the company private. Some of the new financing could be used to pay down its remaining debt. At the time of the buyout its debt was at US$ 12.5 billion. It was not known who invested in this latest round but it appears that Elon Musk did participate. He is known for utilising the private markets to back some of his enterprises; these include SpaceX, which completed a tender offer valuing the startup at about US$ 350 billion, and xAI, which is said to have canvassed investors about raising fresh funding at a valuation of US$ 75 billion.

There are also concerns about the state of Tesla’s finances after reports that board members and top executives, have recently been offloading their shares, valued at over US$ 100 million,  including Elon Musk’s brother, Kimbal. Reports indicate that Tesla shares have lost more than 50% of their value, equivalent to more than US$ 800 billion off its market cap.

Google has agreed to settle a Californian lawsuit after a former employee, in 2011, said workers from Hispanic, Latino, Native American and other backgrounds started on lower salaries and job levels than their white and Asian counterparts. The tech giant agreed to pay US$ 28 million but rejected the allegations made against it. Earlier this year, Google joined a growing list of US firms that are abandoning commitments to principles of diversity, equity, and inclusion (DEI) in their recruitment policies. Meta, Amazon, Pepsi, McDonald’s, Walmart and others have also rolled back their DEI programmes.

On Tuesday, Apple posted that it would buy the Israeli-based Wiz for about US$ 32 billion which would be the tech giant’s biggest ever acquisition, as it starts to focus on cybersecurity in the cloud-computing race against Amazon.com and Microsoft. This deal will enable Google to solve fast-growing cybersecurity solutions that companies use to remove critical risks. Google has fallen behind Microsoft Azure for enterprise customers, and to catch up it needs to enhance a deeper suite of services, including security software. Alphabet shares have slumped 13% YTD, exacerbated by its heavy spending, as against the rise of China’s lower-cost DeepSeek. Only last year, Wiz rejected a US$ 23.0 billion bid by the US tech giant. Wiz has agreed to a termination fee of more than 10%, one of the highest fees in MA history. Under the Biden regime, there was a tightening up in antitrust policies, with the sector hoping for a marked easing on big MA regulation. However, Trump has already indicated that he would continue heavy scrutiny on Big Tech. Indeed, so as to head off regulatory concerns, Google has emphasised that Wiz would continue working with competing cloud platforms.

In the US, Starbucks has been hit with a damages award of US$ 50 million after a delivery driver needed skin grafts after being burned, when hot tea was spilled over him at a California drive-through. It is claimed that an employee did not wedge the scalding-hot tea firmly enough into a takeaway tray. The incident took place five years ago, with the prosecution lawyer noting that “this jury verdict is a critical step in holding Starbucks accountable for flagrant disregard for customer safety and failure to accept responsibility.” Starbucks said it sympathised with the victim but plans to lodge an appeal, believing the “the damages awarded to be excessive”.

Last Monday, US$ 5.72 billion was wiped off the market caps of Tesco, (down 15%), Sainsbury’s, (9%) and Marks & Spencer, (10%), after the new executive chairman of rival Asda had posted that the grocer was planning its biggest price cuts this century. Allan Leighton, who was appointed last November, was reported to have said that there was a “war chest” available to Asda and indicated he was prepared to “materially” forego profits in the short term to win back market share. He added that “we have a long way to go. We’re three months into what is going to be three years of really getting the basics of the business right and getting the business to outperform the rest of the industry on a like-for-like basis. That’s what restores our market share and profitability.”

Indeed, Leighton has history and knows the market inside out – and hence the Monday fall-out. In the early 1990s, he, and the current M&S chairman, Archie Norman, rescued Asda from collapse before selling the business to US giant Walmart in 1999. By 2003, Asda occupied the number two slot, taking that position from Sainsbury’s but after Walmart insisted on preserving margins, it was inevitable that the only way for the retailer was down, with Sainsbury’s soon returning to its former second position. By 2019, there was a merger attempt with Sainsbury’s which was soundly rejected by the competition watchdogs. Then their troubles really started with Walmart offering a majority shareholding to TDR Capital, founded by the billionaire brothers – Mohsin and Zuber Issa – who had made their fortunes from petrol forecourts. Asda then began to lose its market share, as it had taken on debt during the takeover and had lost its competitiveness. Tesco and Sainsbury’s made good of the opportunity, as did Aldi and Lidl to a lesser extent. After appointing several managers to run the business, unsuccessfully as it turned out, TDR Capital bought out in June last year to take a majority 67.5% stake while Mohsin Issa, who retains 22.5% of the business, relinquished the day-to-day running of the business.

Over the Christmas period, Asda was the worst-performing supermarket but within weeks it announced a ‘Big Jan Price Drop’ price-cutting campaign which saw average price reductions of 26% on selected products. Following that, the chief executive reintroduced the ‘Rollback’ price-cutting promotions he and Mr Norman introduced in the 1990s in a bid to revive the spirit of the old ‘That’s Asda Price’ campaigns, complete with shoppers patting their back pockets, backed by heavy newspaper and television advertising. Asda was able to punch above its weight by features such as big, well-targeted price cuts, snappy advertising and excellent product availability.  This latest initiative introduces a wider than normal price cutting exercise than has been seen in the past. He has also expended US$ 56 million on extending opening hours for some stores and has also bolstered his management team. Whether Leighton can spread the same magic he performed in the 1990s, over thirty years ago, remains debateable, as the retail environment has been turned on its head since then; even the likes of discounters Aldi and Lidl had a miniscule market presence.

Further problems that will hit the sector in the coming weeks is the 01 April increase in the national living wage and the 1.2% rise in employers’ national insurance contributions, to 15.0%, will spill over resulting in increased costs for the supermarkets, including payrolls and supplies; some of these costs will inevitably fall on the consumers. The British Retail Consortium estimates that food price inflation is picking up in staples such as eggs, milk and butter and that it will top 4.0% by the beginning of H2. Further problems will be the cost of implementing new recycling regulations due in October.

News this week that Santander bank plans to make seven hundred and fifty redundant and  close 21.4% of its branches which would leave three hundred and forty-nine branches open; of that total, thirty-six  will operate on reduced hours branches and eighteen will be “counter-free”. The bank justifies this move by claiming that financial transactions completed in branches have fallen 61% since 2019, while the use of internet banking to open accounts and conduct banking surged. With the closures, Santander said 93% of the UK population will continue to be within ten miles of a Santander branch, and that closing branches are all within one mile of the nearest Post Office. It also indicated that its customers can conduct banking in eleven thousand Post Office branches nationwide and one hundred and twelve banking hubs.

It is reported that Burger King UK, backed by the private equity firm Bridgepoint, is opening talks with lenders about major refinancing of US$ 51.67 million of borrowing and US$ 142.13 million borrowing capacity to help finance the delivery of its business plan.  The fast food eatery owns about 50% of its six hundred UK outlets, with the balance run by franchisees. Bridgepoint has already committed US$ 45 million of fresh equity, as part of Burger King UK’s business plan, as the company plans to open thirty new restaurants and remodel fifty of its current portfolio.

New research by Pagefield indicated that UK businesses are increasingly turning to the ME as a prime investment destination, that has seen the number of business leaders, with interest in the region, doubling over the past five years; more than 36% of them consider the ME as a key investment hub. Despite this increase, Europe maintains its leading position, whilst Asia is fast becoming a hot spot with interest 10% higher to 32%. Investment in the US remains steady, hovering around the 40% mark (42% current vs. 45% prospective investors), but new trade tariffs, under President Trump’s administration, pose uncertainty, potentially deterring future deals. A striking 83% of UK firms say the Government must do more to support international expansion, with nearly a third (31%) identifying Free Trade Agreements (FTAs) as the single most important mechanism. Perhaps ministers could travel to Dubai to see how successful   UAE CEPAs (Comprehensive Economic Partnership Agreements), have been.

A North Dakota court has ordered Greenpeace to pay Energy Transfer US$ 667 million in damages including for defamation, trespassing and conspiracy, in their role in the 2016-2017 protests against the Dakota Access Pipeline. The Texas-based pipeline company accused the advocacy group of paying protesters to disrupt construction of the pipeline unlawfully and spreading falsehoods about the controversial project. Greenpeace will appeal the decision, denying wrongdoing and calling the case an attack on free speech rights. T

It is reported that UAE developers have invested over US$ 3.0 billion in The Maldives, with the aim of transforming part of the iconic archipelago into luxury real estate resorts.  Although the country does not allow freehold ownership, per se, foreign investment in island property is permitted requiring approval of the Ministry of Tourism. The investment is expected to transform the island nation into a vibrant second-home market for the ultra-wealthy, with potential returns of 20% being touted.

In the first two months of the year, China’s value-added industrial output rose 5.9% on the year whilst industrial output, (which measures all enterprises with an annual turnover of US$ 2.8 million plus), came in 0.51% higher last month.

Last week, SW Queensland was cleaning up after ex-tropical cyclone Alfred, had wrought its damage. Now most of the population are in another battle – not against the elements but against the insurers. Probably for the first time in Australian political history, the leaders of both the Labour ruling party, Prime Minister, Anthony Albanese, and the Coalition’s, Peter Dutton, both agreed that insurers are “ripping off” Australians. Unfortunately, neither party has announced a policy to address the issues in the insurance sector, but Albanese did confirm that his government will hold insurers to account as they begin to receive flood claims.

There are reports that flood cover has tripled in parts of SW Queensland in the past two years, and already the SW Regional Organisation of Councils has taken their concerns to the Insurance Council of Australia. One such family has seen their insurance premium from US$ 2.21k to US$ 8.54k and has decided to take the risk of no insurance because otherwise it would be unable to make house payments; many other families are in the same situation. Local member for Maranoa and Nationals leader David Littleproud said, “something’s not right”, and “I think insurance companies are having a lend of us.” He also queried that “we need to make sure these insurance companies are not gaming the system at regional Australia’s expense because they simply don’t see the mass market here for them.”To many, insurance costs have skyrocketed and now it has become a luxury expense, rather than a necessity. The Insurance Council of Australia, trying to justify their position, noted that the increasing cost of insurance was due to the “escalating costs of natural disasters, the increasing value of homes … [as well as] inflation pushing up building repair costs and the increasing cost of reinsurance”.

As expected, and for the second consecutive month, the US Federal Reserve officials held their benchmark interest rate steady, with its key lending rate at between 4.25% – 4.5%. Noting a marked rise in economic uncertainty, it did expect slower growth this year, along with higher inflation, driven by Trump’s trade tariffs which has also resulted in nervous financial markets. There are fears that such actions could hamper the Fed in its aims to bring inflation down to its long-term 2.0% target, while maintaining a healthy labour market. It also pencilled in a further two rate cuts before the end of 2025.

The EC has introduced new measures to sustain and expand Europe’s industrial capabilities in the steel and metals sectors. Its Steel and Metals Action Plan has targeted enhancing the sector’s competitiveness and securing its future. The two sectors are facing challenges arising from high energy costs, global competition, and the need for investments to reduce greenhouse gas emissions. It has been estimated that the steel and metals industry is essential to the EU economy, directly and indirectly employing approximately 2.6 million people and contributing around US$ 86.57 billion to the bloc’s GDP.

The OECD’s 2025 growth projection has been cut by 0.2% to 3.1% commenting that “with higher barriers in several G20 economies and increased geopolitical and policy uncertainty weighing on investment and household spending”. Its projection was mainly based on weaker expected growth in the US and the eurozone, with inflation “to be higher than previously expected”. It has cut US growth by 0.2% to 2.2% this year and 0.6% lower in 2026 at 1.6%; the eurozone growth projection is down 0.3% to 0.7% but will bounce back in 2026, reaching 1.2% next year. China continues to outshine most of its global peers with growth this year and in 2026, expected to come in at a healthy 4.8% and 4.4%. The Federal Reserve has also downgraded its 2025 US forecast by 0.4% to 2.1%.

The Starmer administration received some good news for a change – latest data indicates that wage growth has remained strong; wages, excluding bonuses, grew in the quarter ending 31 January by 5.9%, the same percentage as in the previous quarter. However, wages – including bonuses – dipped to 5.8%, so that with official inflation at 3%, wage growth is still high and well above the rate of overall price rises. Since last July, wage increases have surpassed the level of inflation which could be a factor that there may be no immediate rate cuts over the coming months. The unemployment rate remained flat at 4.4%, with the number of employees on payrolls “broadly flat”, with little growth seen over the last year. Rather distressingly, the ONS figures showed the economic inactivity rate for people aged 16 to 64 years was around 21.5% in the quarter.

Even though its own independent forecaster expected UK government borrowing, (the difference between spending and income from taxes), to be US$ 8.40, February’s borrowing came in 64.6% higher at US$ 13.83 billion. This will undoubtedly add further pressure on Chancellor Rachel Reeves ahead of her Spring Statement next week where she will announce spending cuts to meet her self-imposed rules for the economy, which the Treasury reiterated were “non-negotiable”. Some consider that she may have to miss her self-imposed borrowing rules. Her two main rules are not to borrow to fund day-to-day public spending; and to get debt falling as a share of the UK economic output by 2030. At her October Budget, the Office for Budget Responsibility indicated Reeves had US$ 12.80 billion available to spend against her borrowing rules; next week it will probably reveal that the chancellor’s buffer has been “wiped out”.

With its operating company filing for bankruptcy protection, it seems that Forever 21, founded in 1984 by South Korean immigrants, is a step nearer to going out of business, even though the retailer posted that its stores and website in the US will remain open as it “begins its process of winding down”. In 2019, when it filed for bankruptcy for the first time, a group of investors ended up buying it through a JV. It also confirmed that it would conduct liquidation sales at its stores and that some or all of its assets would be sold in a court-supervised process. At its peak in 2016, of the eight hundred Forever 21 shops five hundred were located in the US. Its shops and e-commerce platforms, outside of the US are operated by other licence-holders and will not be affected by the bankruptcy protection filing. There is no doubt that starting forty years ago, its inexpensive, trendy clothes and accessories became increasingly popular with young people and over the next few decades, the brand became a competitor of fast-fashion giants such as Zara and H&M. However, it does seem that time has caught up with the retailer and that Forever 21 cannot be Forever Young!