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  • Home>'Panic' could set in after Saudi purge nabs 'Warren Buffett of the Middle East'

    'Panic' could set in after Saudi purge nabs 'Warren Buffett of the Middle East'

    'Panic' could set in after Saudi purge nabs 'Warren Buffett of the Middle East'

    11/06/2017

    By Shawn Langlois, MarketWatch

    Critical information for the U.S. trading day

    Saudi Crown Prince Mohammed bin Salman's sweeping purge over the weekend has left investors to ponder -- among all sorts of other things -- what the tightening of his grip on the Kingdom ultimately means for global markets.

    Specifically, should the arrest of Prince al-Waleed bin Talal, the familiar face of Saudi Arabia's global investment scene (http://www.marketwatch.com/story/detained-saudi-prince-has-wide-range-of-investments-in-western-companies-2017-11-05), be a concern for those holding stakes in companies linked to his Kingdom Holding firm (4280.SA), which was smacked with a double-digit drop when the news broke.

    In our call of the day, United Securities head of equity research Joice Mathew told Bloomberg (https://www.bloomberg.com/news/articles/2017-11-05/saudi-arabia-arrests-billionaire-alwaleed-al-eqtisadiah-reports) there's "a good chance" Twitter (TWTR) and Citigroup (C) will get hammered in reaction to the news.

    "In the absence of news or details on what kind of corruption this is, we'll see some initial panic, that's for sure," Mathew said.

    Al-Waleed, a Saudi royal with a vast fortune that puts him among the world's richest men, is known as one of Citigroup's biggest and most vocal shareholders. He also owns about 5% of Twitter's outstanding shares, according to Bloomberg, and he's a top investor in Apple (AAPL)

    (AAPL)(AAPL)Now, al-Waleed, who's been called "the Warren Buffett of the Middle East," faces laundering charges (http://www.marketwatch.com/story/saudi-prince-al-waleed-bin-talal-arrested-in-widening-corruption-crackdown-2017-11-05), a source told the Wall Street Journal.