This appears to have been precipitated by the release of the “Paradise Papers” over the weekend. More on the papers shortly.
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, be a concern for those holding stakes in companies linked to his Kingdom Holding firm 4280, -5.26% 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 there’s “a good chance” Twitter TWTR, -1.71% and Citigroup C, -1.02% 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.