LONDON`: George Soros said he was confident that support for Britain to remain in the European Union would rise ahead of the June 23 vote, the Wall Street Journal reported.
Soros told the Journal there remained a good chance that the European Union will collapse due to the migration crisis, challenges in Greece and a potential British exit from the EU.
“If Britain leaves, it could unleash a general exodus, and the disintegration of the European Union will become practically unavoidable,” Soros told the Journal.
But Soros said recent strength in the British pound was a sign that a vote to exit the EU is less likely.
“I’m confident that as we get closer to the Brexit vote, the ‘remain’ camp is getting stronger,” Soros was quoted by the Journal as saying.
“Markets are not always right, but in this case I agree with them.”
While betting odds have consistently indicated an In vote, opinion pollsters have so far painted contradictory pictures of how Britons will vote.
Soros bet successfully that the pound was overvalued against the Deutsche Mark in 1992, culminating in so called ‘Black Wednesday’ when John Major was forced to pull sterling out of the European Exchange Rate Mechanism (ERM).
Broker PhillipCapital UK, meanwhile, said it planned to raise the amount customers have to deposit with them because of the increased risk of sharp swings in the run-up to a British vote on membership of the European Union.
The firm, which has $28 billion assets under management, said it planned to raise margin requirements on sterling denominated trades to 10 percent, while the margin on all other instruments would be raised to 5 percent.
They are currently at 0.25 percent.
Currency brokers are increasingly worried about volatility whatever the result of the June 23 Brexit vote, which they believe will generate sharp swings in the pound in thin liquidity.
Saxo Bank also recently announced a hike in margins and collateral while other brokers like CMC and FXPro are considering whether to raise margins or not.
Many brokers were hit by a sudden lifting of a cap on the Swiss franc against the euro in January 2015 by the Swiss National Bank that saw trading seize up, prices disappear and the currency’s value balloon by 40 percent in minutes. That led to a trail of losses and bankruptcies, especially in the retail trading segment.
“If the UK votes to leave the EU we could experience unparalleled volatility for a period of time and so we are taking this action in the run up to the referendum in order to protect our clients against any extreme market movements,” head of derivatives trading Sean Tan said in a statement.
The increase in margin will take place in two stages starting from June 12, with the second increase occurring on June 19, four days before Britons go to the polls.
Leading retail foreign exchange broker Saxo Bank recently told clients to set aside 7 percent of their leveraged pound accounts compared with two percent previously.
The change will be in place from June 16.
George Soros says expects support for In to rise ahead of Britain’s EU referendum
George Soros says expects support for In to rise ahead of Britain’s EU referendum
Acwa signs key terms to develop 5GW of renewable energy capacity in Turkiye
JEDDAH: Saudi utility giant Acwa has signed key investment agreements with Turkiye’s Ministry of Energy and Natural Resources to develop up to 5 gigawatts of renewable energy capacity, starting with 2GW of solar power across two plants in Sivas and Taseli.
Under the investment agreement, Acwa will develop, finance, and construct, as well as commission and operate both facilities, according to a press release.
The program builds on the company’s first investment in Turkiye, the 927-megawatt Kirikkale Independent Power Plant, valued at $930 million, which offsets approximately 1.8 million tonnes of carbon dioxide annually, the statement added.
A separate power purchase agreement has been concluded with Elektrik Uretim Anonim Sirketi for the sale of electricity generated by each facility.
Turkiye aims to boost solar and wind capacity to 120GW by 2035, supported by around $80 billion in investment, while recent projects have already helped prevent 12.5 million tonnes of CO2 emissions and reduced reliance on imported natural gas.
Turkiye’s energy sector has undergone a rapid transformation in recent years, with renewable power emerging as a central pillar of its strategy.
Raad Al-Saady, vice chairman and managing director of ACWA, said: “The signing of the IA (implementation agreement) and PPA key terms marks a pivotal moment in Acwa’s partnership with Turkiye, reflecting the country’s strong potential as a clean energy leader and manufacturing powerhouse.”
He added: “Building on our long-standing presence, including the 927MW Kirikkale Power Plant commissioned in 2017, this step elevates our partnership to a new level,” Al-Saady said.
In its statement, Acwa said the 5GW renewable energy program will deliver electricity at fixed prices, enhancing predictability for grid planning and supporting long-term industrial investment.
By replacing imported fossil fuels with domestically generated clean energy, the initiative is expected to reduce Turkiye’s exposure to global energy market volatility, strengthening energy security and lowering long-term power costs.
The company added that the economic impact will extend beyond the anticipated investment of up to $5 billion in foreign direct investment, with thousands of jobs expected during the construction phase and hundreds of high-skilled roles created during operations.
The energy firm concluded that its existing progress in Turkiye reflects a strong appreciation for Turkish engineering, construction, and manufacturing capacity, adding that localization has been a strategic priority, and it has already achieved 100 percent local employment at its developments in the country.
