{"id":55113,"date":"2025-10-26T11:39:08","date_gmt":"2025-10-26T15:39:08","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/wall-street-banks-expand-saudi-footprint-fed-signals-second-rate-cut-amid-internal-debate-and-asean-india-fta-nears-completion\/55113\/"},"modified":"2025-10-26T11:39:08","modified_gmt":"2025-10-26T15:39:08","slug":"wall-street-banks-expand-saudi-footprint-fed-signals-second-rate-cut-amid-internal-debate-and-asean-india-fta-nears-completion","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wall-street-banks-expand-saudi-footprint-fed-signals-second-rate-cut-amid-internal-debate-and-asean-india-fta-nears-completion\/55113\/","title":{"rendered":"Wall Street Banks Expand Saudi Footprint, Fed Signals Second Rate Cut Amid Internal Debate, and ASEAN-India FTA Nears Completion"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Citigroup (<a href=\"\/stock\/C\">C<\/a>)<\/strong> has announced the opening of its regional headquarters in <strong>Riyadh<\/strong>, solidifying its presence in Saudi Arabia as the kingdom actively attracts global financial institutions with incentives like tax breaks and access to lucrative government contracts.<\/li>\n<li>The <strong>Federal Reserve<\/strong> is widely anticipated to deliver a <strong>second consecutive interest-rate cut<\/strong> this week, reducing the federal funds rate by 25 basis points to a range of <strong>3.75% to 4%<\/strong> to bolster a weakening labor market.<\/li>\n<li>However, extending the Fed&#39;s easing cycle beyond October may encounter <strong>renewed internal opposition<\/strong> among policymakers concerned about persistent inflation, which currently stands at <strong>3%<\/strong> in September, above the Fed&#39;s 2% target.<\/li>\n<li><strong>Malaysia&#39;s Prime Minister Anwar Ibrahim<\/strong> reported &quot;real progress&quot; in the review of the <strong>ASEAN-India Trade in Goods Agreement (AITIGA)<\/strong>, with a commitment from ASEAN to conclude the agreement by the end of <strong>2025<\/strong>.<\/li>\n<\/ul>\n<p><strong>Citigroup Deepens Saudi Arabian Foothold Amid Kingdom&#39;s Economic Diversification Push<\/strong><\/p>\n<p><strong>Citigroup Inc. (<a href=\"\/stock\/C\">C<\/a>)<\/strong> has officially announced the opening of its regional headquarters in <strong>Riyadh<\/strong>, marking a significant expansion of its operations in Saudi Arabia. This move positions Citigroup as the latest major Wall Street bank to establish a stronger presence in the kingdom, aligning with Crown Prince Mohammed bin Salman&#39;s ambitious vision to diversify the Saudi economy away from its traditional reliance on oil.<\/p>\n<p>The establishment of regional headquarters in Riyadh is driven by new Saudi regulations that require foreign firms to set up a local base with a minimum of <strong>15 employees<\/strong>, including executives overseeing operations in other countries, or risk losing access to the kingdom&#39;s extensive network of government contracts. This policy has successfully attracted over <strong>500 global companies<\/strong> to relocate their regional headquarters to Riyadh since its introduction. Other prominent financial institutions, including <strong>Goldman Sachs Group Inc. (<a href=\"\/stock\/GS\">GS<\/a>)<\/strong>, <strong>Lazard Inc. (<a href=\"\/stock\/LAZ\">LAZ<\/a>)<\/strong>, and <strong>JPMorgan Chase &amp; Co. (<a href=\"\/stock\/JPM\">JPM<\/a>)<\/strong>, have similarly secured licenses or opened regional offices in the Saudi capital, underscoring the growing appeal of the region to global finance.<\/p>\n<p><strong>Federal Reserve Poised for Second Rate Cut Amid Inflation Concerns<\/strong><\/p>\n<p>The <strong>Federal Reserve&#39;s Federal Open Market Committee (FOMC)<\/strong> is widely expected to implement a <strong>second consecutive interest-rate cut<\/strong> this week, with an anticipated reduction of <strong>25 basis points<\/strong> at its October 28-29 meeting. This follows a similar cut in September, bringing the federal funds rate to a projected range of <strong>3.75% to 4%<\/strong>. This potential move would mark the lowest interest rate levels since late 2022.<\/p>\n<p>The primary driver behind these easing measures is a <em>weakening U.S. labor market<\/em> and a desire to lower borrowing costs to stimulate hiring and prevent a significant slowdown. However, the path for interest rates beyond October remains uncertain, with a push to extend the easing cycle potentially facing <em>renewed internal opposition<\/em>. Inflation, which reached <strong>3%<\/strong> in September, continues to hover above the Fed&#39;s long-term target of <strong>2%<\/strong>, creating a delicate balancing act for policymakers. While financial markets, as measured by the CME Group&#39;s FedWatch tool, are pricing in a <strong>97% chance<\/strong> of an October cut and anticipate further reductions into 2026, some officials remain cautious about the risks of reigniting inflationary pressures.<\/p>\n<p><strong>ASEAN-India Free Trade Agreement Review Shows &quot;Real Progress&quot;<\/strong><\/p>\n<p><strong>Malaysian Prime Minister Datuk Seri Anwar Ibrahim<\/strong> announced that &quot;real progress&quot; has been achieved in the ongoing review of the <strong>ASEAN-India Trade in Goods Agreement (AITIGA)<\/strong>. Speaking at the 22nd ASEAN-India Summit, Prime Minister Anwar highlighted ASEAN&#39;s commitment to concluding the revised agreement by the end of <strong>2025<\/strong>.<\/p>\n<p>The AITIGA, originally signed in 2009 and implemented in 2010, has been under review since 2023. India initiated the review due to concerns over a <em>widening trade deficit<\/em> with ASEAN, which expanded from <strong>US$7.5 billion in 2011 to approximately US$44 billion in 2023<\/strong>, and issues related to non-tariff barriers and uneven market access. The agreement aims to foster a free flow of goods, reduce trade barriers, deepen economic linkages, lower business costs, and expand market access between the two regions. Bilateral trade between ASEAN and India reached <strong>USD 106.83 billion in 2024<\/strong>, up from USD 100.72 billion in 2023, underscoring the importance of this trade pact. This ongoing dialogue and cooperation are seen as crucial for regional stability and mutual prosperity, with India&#39;s economic advancements expected to benefit both the bloc and the country.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Citigroup (C) has announced the opening of its regional headquarters in Riyadh, solidifying its presence in Saudi Arabia 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