Italy’s Berlusconi ties with the Arab world through the years


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Silvio Berlusconi, Italy’s longest-serving prime minister, died on Monday. He was 86.

Mr Berlusconi was admitted to the San Raffaele Hospital in Milan on Friday, his second hospital admission in months for treatment of chronic leukaemia. He also suffered over the years from heart ailments, prostate cancer and Covid-19 in 2020.

He was a charismatic statesman who sought to elevate Italy on the world stage and he forged relationships with many leaders of the Arab world.

His first visit to the region took place during his second term in office when he embarked on a regional tour of Saudi Arabia, Algeria, Egypt, Israel, the Palestinian territories and Jordan, in 2002.

He would later visit Libya in 2008, where he signed a historic co-operation treaty with the late Libyan leader Muammar Qaddafi in Benghazi. Rome pledged to pay $5 billion to Libya as compensation for its former military occupation.

Mr Berlusconi caused an outcry in the Muslim world in October 2002 when he said the West “should be conscious of the superiority of our civilisation.”

He said while the West has a value system “that has given people widespread prosperity in those countries that embrace it, and guarantees respect for human rights and religion … This respect certainly does not exist in the Islamic countries.”

During his time in office, Mr Berlusconi paid a two-day visit to Jeddah in November 2009 when he met the late King Abdullah bin Abdulaziz Al Saud. During the visit, he described Saudi Arabia as an “important force for stability in the region”.

Mr Berlusconi also forged a strong relationship with Turkish leader Recep Tayyip Erdogan and was one of the early supporters of Turkey's application to join the EU.

When it came to the Israeli-Palestinian issue, Mr Berlusconi was a staunch supporter of Israel and endorsed Israel's plan for a demilitarised Palestinian state as a solution to the decades-old Middle East conflict.

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How to play the stock market recovery in 2021?

If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.

Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.

Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.

Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).

Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal. 

Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.

By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.

As demand for energy fell, the oil and gas industry had a tough year, too.

Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.

He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.” 

This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”

Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.

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Updated: June 12, 2023, 7:22 PM