Saudi Arabia flexes its diplomatic muscles, Musk's DOGE scrutinises consultants and relocating Wall Street bankers to Texas
March 2025
Hello and welcome!👋
We’re officially in the second quarter of 2025. If recent weeks have felt extra strange or unsettling, it could be due to cosmic events. Astrologers say the spring Mercury retrograde is in the middle of eclipse season and coincides with Venus in retrograde.
The rare occurrence supposedly creates havoc with communication, transport and tech (Heathrow airport?), and brings unresolved issues to light.
DIPLOMATIC BROKER
President Donald Trump looks set to visit Saudi Arabia in May, marking the first overseas tour of his second administration. This announcement comes after trips to the kingdom by American, Russian and Ukrainian envoys.
Crown Prince Mohammed bin Salman (MBS) has made strides to establish his country as the regional HQ for policymaking - and now his ambitions are expanding to include the world stage.
MBS’s agenda also appears to have pushed Doha to the backseat while the Qataris were positioning themselves as the go-to mediator in the Middle East.
Analysts point to several reasons for Saudi Arabia’s rise as a diplomatic player: its standing as a neutral third-party; Trump’s alliance with MBS; Riyadh’s relationship with Moscow through OPEC+; the gradual decline of Egypt and Iran.
Deep Dive has covered the different pillars of MBS’s ‘Vision 2030’ before (e.g. Neom, sports investments). Amplifying political influence is part of the program to transform the kingdom from an energy Goliath to a multi-faceted state.
DOGE TARGETS ACCENTURE
Management consultants are often mocked for overcharging clients for fancy PowerPoint presentations titled ‘Streamline Business Operations’. The typical conclusion is that mass layoffs are encouraged to juice profits.
In an ironic twist, Elon Musk has decided to put these firms on notice in an effort to trim US government budgets. Musk’s brainchild, the Department of Government Efficiency (DOGE), has “taken aim at consulting deals as an example of what the administration deems wasteful spending”.
Accenture, in particular, is not pleased. Its new contracts with the federal government are slowing and that’s denting sales forecasts. Accenture CEO Julie Sweet says these projects accounted for about 8% of global revenue in 2024, so DOGE’s actions do matter to the bottom line. Investors have sent Accenture’s stock price tumbling since January.
In an interview with Fox News, Musk said he plans for DOGE to finish most of the U$1 trillion in spending reductions by June. However, the methods by which the billionaire entrepreneur is making these calculations are not entirely clear.
Musk is functioning under a special designation, limiting his contributions to 130 days out of a 365-day period. There are hints that DOGE could wind up earlier than expected to allow him to become a regular CEO again. Although the agency was never intended to be permanent, Musk’s involvement in Washington affairs is taking a toll on his empire, specifically Tesla.
BANKERS ON THE MOVE
When you think of the major US banks, Wall Street usually comes to mind. But Goldman Sachs is trying to shift personnel away from bustling New York to its emerging hubs.
According to reports, Goldman Sachs wants some staff to relocate to places like Dallas and Salt Lake City. Cutting down on expenses is definitely a top factor - commercial rents are significantly cheaper in these states and salaries can be adjusted to match lower living costs.
Although investment bank bosses are calling on people to return to the office full time, they also realise that many back-end and junior roles don’t have to be based in Manhattan.
Another reason is tapping growth opportunities outside of the East Coast. Goldman’s Dallas branch is expanding and headcount there could increase by 400 in the next few years. The city is already the firm’s second biggest US location.
As leading banks slash 1000s of jobs across the board (see HSBC, Morgan Stanley, UBS and co.), those keen to stay in the industry might consider packing their bags for Texas and Utah.
Thanks for reading! Take care and stay curious, Sara x