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
Saudi ports brace for cargo surge as shipping lines reroute
RIYADH: Preliminary estimates suggest that several global shipping lines could reroute part of their operations to Saudi Arabia’s Red Sea ports, potentially adding 250,000 containers and 70,000 vehicles per month, according to Rayan Qutub, head of the Logistics Council at the Jeddah Chamber of Commerce, in an interview with Al-Eqtisadiah.
“Any disruption in the Strait of Hormuz not only affects maritime traffic in the Arabian Gulf but could also reshape global trade routes,” Qutub said, highlighting the strait’s status as one of the world’s most critical maritime chokepoints for energy and goods transport.
With rising regional tensions, international shipping companies are reassessing their routes, adjusting shipping lines, or exploring alternative sea lanes. This signals that the current challenges extend beyond the Arabian Gulf, impacting the global supply chain as a whole.
Limited impact on US, European shipments
The effects of these developments will not be uniform across trade routes. Qutub noted that goods from China and India, which rely heavily on routes through the Arabian Gulf, are most vulnerable to disruption. In contrast, shipments from Europe and the US typically traverse western maritime routes via the Suez Canal and the Red Sea, making them less susceptible to regional disturbances.
Saudi Arabia’s strategic location, he emphasized, strengthens the resilience of regional trade. The Kingdom operates an integrated network of Red Sea ports — including Jeddah, Rabigh, Yanbu, and Neom — that have benefited from substantial infrastructure upgrades and technological enhancements in recent years, boosting their capacity to absorb increased cargo volumes.
Red Sea bookings
Several major carriers, including MSC, CMA CGM, and Maersk, have already opened bookings to Saudi Red Sea ports, signaling a shift in operational focus to these strategically positioned hubs.
However, Qutub warned that rerouted shipments could increase sailing times. Cargo from Asia, which normally takes 30-45 days, might now require longer voyages via the Cape of Good Hope and the Mediterranean, potentially extending transit to 60-75 days in some cases.
These changes are also reflected in rising shipping costs, driven by longer routes, higher fuel consumption, and increased insurance premiums — a typical response when global trade patterns shift due to geopolitical pressures.
Qutub emphasized that Saudi Arabia’s transport and logistics sector is managing these developments through coordinated government oversight. The Ministry of Transport and Logistics, the Logistics National Committee, and the Logistics Partnership Council recently convened to evaluate the impact on trade and supply chains. Regular weekly meetings have been established to monitor developments and implement solutions to safeguard the stability of supplies and continuity of trade.
He noted that the Kingdom’s logistical readiness is the result of long-term strategic investments, encompassing ports, airports, road networks, rail systems, and logistics zones. Today, Saudi logistics integrates maritime, land, rail, and air transport, enabling a resilient response to global disruptions.
Qutub also highlighted the need for the private sector to continuously review logistics and crisis management strategies, develop alternative plans, and manage strategic stockpiles. Such measures are essential to mitigate temporary fluctuations in global trade and ensure smooth supply chain operations.
