Dear valued client,
Markets took a bit of a dip this week as Fitch downgraded the U.S. long-term credit rating from AAA to AA+. The rating agency noted that “repeated debt limit standoffs and last-minute resolutions have eroded confidence in fiscal management.” The downgrade appears to have affected investors in the short term, causing some to sell their stock holdings.
Turmoil has been brewing in the West African country of Niger for the past couple of weeks as thousands of people marched through the streets of Niger’s capital last Sunday in support of the recent coup. Demonstrators are openly resentful of France, its former colonial power, and set a door on fire at the French embassy before the army broke up the crowd. Though the extent of Russian influence in the rallies isn’t clear, the waving of Russian flags during the march demonstrates at least minimal involvement. Western countries have invested hundreds of millions of dollars in Niger over the past decade to help establish a thriving economy and democratic structure. They may have lost their foothold as Russia seems to be gaining traction in the area.
Preparations are underway for a two-day meeting in Jeddah, Saudi Arabia this weekend for Ukraine peace talks. Among those invited are Japan, Turkey, India, Brazil, the United States, and a host of European countries. Ukraine made it clear earlier this week that Russia was not welcome – which seems strange to me given peace is unlikely to be negotiated if the perpetrator is not at the table. The big question is whether China shows up. Hopefully, the Saudis can be successful peace brokers as they have walked a fine line since the beginning of the invasion, remaining in direct contact with both Moscow and Kyiv.
Have a terrific weekend,
PW
