China Finance – Aisa Net http://aisa-net.com/ Wed, 22 Jun 2022 19:06:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://aisa-net.com/wp-content/uploads/2021/05/aisa-net-icon-150x150.png China Finance – Aisa Net http://aisa-net.com/ 32 32 US tariffs on China give negotiating leverage, says trade chief https://aisa-net.com/us-tariffs-on-china-give-negotiating-leverage-says-trade-chief/ Wed, 22 Jun 2022 18:25:23 +0000 https://aisa-net.com/us-tariffs-on-china-give-negotiating-leverage-says-trade-chief/

(Bloomberg) – U.S. tariffs on more than $300 billion in annual imports from China provide significant leverage and are helpful from a negotiating perspective, President Joe Biden’s trade chief says amid a debate within his administration over whether to keep the rights in place.

Bloomberg’s Most Read

“Chinese tariffs are, in my view, significant leverage, and a trade negotiator never strays from leverage,” U.S. Trade Representative Katherine Tai said during a Senate hearing on Wednesday in response. to a question from Sen. Bill Hagerty, a Tennessee Republican, about whether removing the duties would encourage “more bad behavior” from Beijing.

The comments come after Biden said on June 18 that he was deciding whether to cut one of the functions. They were first imposed by then-President Donald Trump from 2018 to pressure China to end intellectual property infringement and the practice of forced technology transfer. .

Tai also said there was “a limit to what we can do” to mitigate inflation through tariff changes.

“The next steps on equities, they’re pending” with Biden right now, Tai told senators.

The remarks contrast with those of US Treasury Secretary Janet Yellen, who said earlier this month that the tariffs had hurt US consumers and businesses and were contributing to the fastest inflation in 40 years. The duty cuts could help lower prices, Yellen said, while acknowledging that the cuts are not “a panacea” for fighting inflation. The Biden administration is looking to “reconfigure” tariffs, she said.

Commerce Secretary Gina Raimondo also said earlier this month that it “may make sense” to lift tariffs on certain products to keep inflation in check.

The United States must use all available tools and develop new ones to defend its economic interests and values ​​against China’s unfair practices after the talks showed clear limits to the country’s willingness to meet its past commitments, Tai said on Wednesday.

The United States, through direct talks with Chinese leaders starting in October 2021, has pressed Beijing to honor the so-called phase one trade deal reached with the Trump administration, Tai said. But several rounds of “difficult talks” made it clear the nation was not interested in following through fully, she said.

“It’s part of a pattern,” Tai said. “The United States has repeatedly requested and obtained commitments from China, only to find that lasting change remains elusive.”

The United States must now turn the page on the old playbook, she said, repeating previous comments. The United States has renewed its commitment to partners and allies who are hurt by China’s unfair trade and economic practices, Tai said. Biden recognizes that the United States must work with other countries to address policies that “are fundamentally at odds with the modern global trading system,” she said.

Read more: US trade chief says new direction needed because China hasn’t changed

Beijing and Washington fought a trade war from 2018 to early 2020, when they called a truce after China pledged to increase imports from the United States over the next two years and resolve intellectual property issues. Yet the United States has kept tariffs in place on more than $300 billion in annual imports from its geopolitical rival, and China’s purchases have failed to live up to its commitments. ‘purchase.

While some companies have benefited from protection against Chinese imports, companies that use the goods as inputs in areas such as manufacturing have been harmed. Democratic and Republican lawmakers have pushed the Biden administration to broaden and deepen a tariff exclusion process and review past product denials.

Read more: Biden says he’ll talk to Xi ‘soon’, considering tariff easing

The functions support the Biden administration’s “deliberative long-term vision” to realign relations with China with U.S. priorities, Tai said.

Bloomberg Businessweek’s Most Read

©2022 Bloomberg LP

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‘Diablo Immortal’ delayed indefinitely in China just before its scheduled release date https://aisa-net.com/diablo-immortal-delayed-indefinitely-in-china-just-before-its-scheduled-release-date/ Mon, 20 Jun 2022 20:08:34 +0000 https://aisa-net.com/diablo-immortal-delayed-indefinitely-in-china-just-before-its-scheduled-release-date/

was supposed to debut in China on June 23, but those waiting for the game in the country will have to wait longer. NetEase, which co-developed the game with Blizzard, has pushed back the release date indefinitely. This that “the development team is making a number of optimization adjustments”.

However, there are other factors at play. NetEase found itself in the bad graces of Chinese censors over a post on its Weibo social media service that apparently referred to Winnie the Pooh, according to the . The cartoon character is used to mock Chinese President Xi Jinping.

Following a screenshot of the post (which read “why didn’t the bear quit?”) Gaining momentum, the official Diablo Immortal The Weibo account was banned from posting anything. Discussions related to the post have also been wiped from the service.

Currently, Diablo Immortal does not have a release date in China, although NetEase still expects to ship the game to the country. He promised players an “exclusive thank you pack containing legendary gear” as compensation for the delay.

The PC and mobile title debuted in other territories this month. According to reports, he reported in two weeks following his aggressive approach to monetization. China is the biggest gaming market on the planet and can’t get out Diablo Immortal this would likely have a large impact on the game’s expected revenue. NetEase declined to comment on the FinancialTimes. Engadget has contacted Blizzard for comment.

This isn’t the first time a game developer has run into trouble with Chinese regulators over a Winnie the Pooh reference. Independent editor sale Dedication in China, leading him to cut ties with developer Red Candle Games, which included a blatant dig at Xi in the game itself. The studio, which is based in Taiwan, later a DRM-free version of Dedication on its own window.

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Businesses in China reel under zero-Covid pressure https://aisa-net.com/businesses-in-china-reel-under-zero-covid-pressure/ Sun, 19 Jun 2022 05:49:10 +0000 https://aisa-net.com/businesses-in-china-reel-under-zero-covid-pressure/

Fiona Shi has lost her job twice during the pandemic – first, in 2020 when Covid ravaged the travel industry, then this year as China’s tough virus controls hammered businesses in the world’s second-largest economy.

China is the latest major economy welded to a zero Covid strategy – putting businesses and workers at risk of instant lockdowns, freezing activity in the services sector and tangling supply chains crucial for factories to sell their goods .

As the country battles its worst outbreak since 2020, its urban unemployment rate has risen to its highest level in two years and the pain is being felt by both blue-collar and white-collar workers.

“Many places say they don’t hire people over the age of 35,” said Shi, 38, who pointed to the difficulty of returning to entry-level positions after leadership positions.

She held a leadership position in the hospitality industry in 2020 when the coronavirus halted nearly all travel as governments imposed social distancing measures and restrictions on movement.

Two years later, the Pekingese found herself in the same position after losing her job in a multinational.

“The pandemic has also made it more difficult…many places have frozen workforces,” she told AFP. “I’m really anxious.”

Months of unpredictable Covid restrictions – including instant lockdowns and severe travel restrictions – have hit dozens of cities, from the central business district of Shanghai to the northern breadbasket province of Jilin.

A US Chamber of Commerce survey released this week showed almost all respondents cut their revenue projections, while in a separate study 11% of European companies said they would cut operations in China due to the Covid measures.

Domestic companies have also tightened their purse strings.

Ride-sharing platform Caocao Chuxing has laid off staff, with Chinese media reporting a 40% rate.

Some employees of e-commerce giant Alibaba have also reportedly been asked to leave, according to state-run newspaper Legal Daily.

– “The situation is grim” –

The imposition of restrictions to stamp out Covid outbreaks this year has intensified pressure on companies already struggling with a slowing economy and regulatory clampdowns in sectors such as property and technology.

Bai, 27, told AFP that she had been fired by an American technology company which was preparing to end its activities in China.

“In a way, we saw it coming,” she said, giving only her last name. “Its operations in China lost money.”

“It’s not the first to exit the Chinese market and it won’t be the last.”

Bai, based in Beijing, said it was the second time she had lost her job due to the pandemic.

In 2020, as the virus raged in China, she was fired by a cruise operator due to fears over her nationality, she said.

Andrea Zhang, 24, who handled event planning, said her employer closed its clothing stores in March and April when the outbreaks broke out this year.

“Our bosses wanted to understand the situation in various stores (across the country) but realized they couldn’t due to quarantine requirements,” Zhang said.

The company eventually shut down its offline operations and Zhang left.

About 1.3 million entities canceled their business registration in China in March alone, a year-on-year spike of 24 percent, official figures show.

With President Xi Jinping repeatedly backing the government’s zero Covid strategy, observers don’t expect authorities to deviate from it even as the economy suffers.

But the restrictions have made life unbearable for some.

“Working from home, especially in an industry like ours known for its overtime practices, has blurred the lines between work and private life even more,” said Ning, who works in marketing in a tech company in Beijing and gave only his last name.

The 26-year-old usually left work around 11 p.m.

But his hours have been extended beyond midnight and into weekends after the capital ordered people in his district to stay at home last month as Covid cases surged.

“I was too exhausted and quit my job,” Ning said.

Since then, he has submitted more than 200 applications. Only three of them resulted in job interviews.

“The situation is grim,” Ning told AFP. “But we will have to find a way to survive.”

bys/qan/dan

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What it would take for Jack Ma’s Ant to restart an IPO https://aisa-net.com/what-it-would-take-for-jack-mas-ant-to-restart-an-ipo/ Thu, 16 Jun 2022 21:31:20 +0000 https://aisa-net.com/what-it-would-take-for-jack-mas-ant-to-restart-an-ipo/
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Two years ago, Chinese regulators torpedoed Ant Group Co.’s record initial public offering, sending shockwaves through global financial markets. New rules have been imposed on the fintech giant, which does business ranging from consumer lending to wealth management to online payments. The result is that the once fertile landscape for web-based financial services has changed dramatically as part of a government effort to bring the entire technology sector into line. Now the big question is whether Ant – controlled by billionaire Jack Ma, China’s most famous entrepreneur – will get another shot at going public.

1. What would have to happen for Ant to go public?

The most important thing it needs is to set up a financial holding company, like a regular bank. Its application to the central bank for such a license is nearing the final stages of approval, people familiar with the matter said in June. Ant would then need approval from the China Securities Regulatory Commission to list in either Shanghai or Hong Kong (the taped plan for 2020 was to list in both cities simultaneously). Although he is not officially part of the process, in reality he would also need the blessing of China’s top leadership and a wide range of government agencies. This includes the Financial Stability and Development Committee, which is headed by President Xi Jinping’s confidant, Vice Premier Liu He. The central bank and the Ministry of Finance are part of this group.

2. What are regulators saying?

The signals have been mixed. Financial regulators have held preliminary talks about reviving an Ant IPO, according to people who spoke to Bloomberg News. One said CSRC had set up a team to reassess Ant’s plans. On the same day, Reuters reported that China’s central management had given the first nod to restarting Ant listing plans in Shanghai and Hong Kong. The CSRC dampened hopes that anything was imminent when it denied it was conducting review and research work on Ant’s IPO. However, he added that he supports the IPO of eligible platform companies in China and overseas.

3. What does Ant do?

Chairman Eric Jing said last year the company would eventually go public, but in June he said he had no plans to launch an IPO yet. Ant has revamped its business to meet the demands of Chinese watchdogs, who have pledged to curb the “reckless” push by tech companies into finance. In April 2021, the central bank also asked Ant to open up its payments app to competitors and sever “inappropriate links” that directed users to more lucrative services such as lending. Ant has also set up a consumer credit unit which went live last year, with new rules that limit its ability to lend. Joint consumer lending with banks – previously a major driver of growth – has been spun off from its Jiebei and Huabei brands. Assets under management at its Yu’ebao money fund – once the world’s largest – fell 15% from a year earlier to 825 billion yuan ($123 billion) in March.

While Ant hit a pre-IPO valuation of $280 billion, based on its stock price, the myriad regulations imposed over the past two years mean it’s now worth a fraction of that, because it is now more “thin” than “tech”. Growth and margin expectations are generally lower for banks than for technology companies. Fidelity Investments, for example, cut its valuation estimate for the company to around $78 billion last year from $235 billion just before the abrupt IPO halt. In June, Bloomberg Intelligence analyst Francis Chan estimated Ant to be worth around $64 billion.

5. What would be included in a listed version of Ant?

Ant will likely use the financial holding company to go public. Last year, the central bank asked Ant to consolidate all financial operations into this entity, which will be regulated more like a bank. Among them is Ant’s payment business Alipay, which in 2020 had 711 million active users, mostly in China, who use it to buy everything from a quick coffee to a property, generating 17 trillion. dollars in payments over a year. It could also include Ant’s wealth management, credit scoring and consumer lending operations. That said, it’s unclear what the final structure will be and whether there should be even more separation between Ant’s payment operations and other businesses. Ant was ordered to build firewalls to cut off direct traffic between Alipay and its other services like wealth management, and return to its roots as a payment service provider.

5. What does it signal more broadly?

The cancellation of Ant’s IPO kicked off a series of regulatory actions that changed the playbook for the country’s tech champions, who had prioritized growth at all costs . Global markets have collapsed in response to Xi and the party’s shifting stance towards Big Tech in general and in particular the control of the vast pools of user data held by private sector companies, which they considered a potential threat to national security. Some big banks have gone so far as to label Chinese tech stocks as “non-investable.” Lately, however, Beijing’s tone has changed. Vice Premier Liu, who is Xi’s top economic aide, gave an unusual public show of support for digital platform companies in May.

6. What happened to Jack Ma?

The co-founder of Alibaba Group Holding Ltd., from which Ant emerged, was one of China’s most prominent entrepreneurs. But Ma, 57, has mostly disappeared from public view since giving a speech criticizing regulators on the eve of Ant’s scuttled IPO. (He was spotted working on his golf game in early 2021 and later traveled to Europe.) Once China’s richest man, his personal wealth took a hit when he sold technologies. Yet by mid-year he was worth $37.3 billion, according to the Bloomberg Billionaires Index, making him the fourth richest in China. Many of his peers have relinquished their official roles in the company and increased their charitable donations to align with Xi’s vision of achieving “common prosperity”.

• More QuickTakes on China’s tech crackdown and what happened to Didi Global Inc., as well as Jack Ma and Alibaba.

• A great insight into the future of fintech in China.

• Bloomberg Intelligence analyzes what an Ant IPO would mean for China.

• Bloomberg Opinion’s Shuli Ren asks why China is still scrutinizing Ma.

More stories like this are available at bloomberg.com

]]> Oil prices are stabilizing on fears of the Fed and the oil profits tax https://aisa-net.com/oil-prices-are-stabilizing-on-fears-of-the-fed-and-the-oil-profits-tax/ Tue, 14 Jun 2022 20:08:00 +0000 https://aisa-net.com/oil-prices-are-stabilizing-on-fears-of-the-fed-and-the-oil-profits-tax/

An aerial view shows an oil plant of Idemitsu Kosan Co. in Ichihara, east of Tokyo, Japan November 12, 2021, in this photo taken by Kyodo. Picture taken November 12, 2021. Mandatory Credit Kyodo/via REUTERS

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June 14 (Reuters) – Oil prices stabilized lower on Tuesday on fears the U.S. Federal Reserve could surprise markets with a bigger-than-expected interest rate hike.

Most Fed watchers expected the US central bank to hike rates 50 basis points at its meeting on Wednesday. But after Friday’s surprisingly strong consumer price index (CPI) data for May, more are expecting a 75 basis point rate hike. Read more

Brent crude futures settled down $1.10, or 0.9%, at $121.17 a barrel. U.S. West Texas Intermediate (WTI) crude fell $2, or 0.7%, to settle at $118.93 a barrel

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“This fear of an even bigger rise in basis points is driving stocks and oil down,” said John Kilduff, a partner at Again Capital LLC in New York.

Oil prices came under pressure following reports that US Senate Finance Committee Chairman Ron Wyden was considering introducing legislation setting a 21% surtax on oil companies’ profits, seen as excessive , an aide told Reuters. Read more

The bill would apply an additional 21% tax on the excess profits of oil and gas companies with more than $1 billion in annual revenue, the aide said.

The tight supply was aggravated by a drop in exports from Libya amid a political crisis that hit production and ports.

Other OPEC+ producers are struggling to meet production quotas and Russia is facing bans on its oil because of the war in Ukraine.

The US Department of Energy (DOE) also announced the fourth notice of sale of 45 million barrels of crude oil from the Strategic Petroleum Reserve.

UBS raised its Brent price forecast to $130 a barrel for the end of September and to $125 for the next three quarters, from $115 previously.

“Low oil inventories, dwindling spare capacity and the risk that supply growth will lag demand growth over the coming months have prompted us to raise our oil price forecast,” he said. said the bank.

Rating agency Fitch raised its Brent and WTI price assumptions for 2022 by $5 to $105 and $100 a barrel, respectively.

The market was waiting for weekly reports from the American Petroleum Institute on Tuesday and the US Energy Information Administration on Wednesday for US crude and fuel inventory data.

Six analysts polled by Reuters forecast U.S. crude inventories fell 1.2 million barrels last week, while gasoline inventories rose 800,000 barrels and distillate inventories, which include diesel and fuel oil, remained unchanged.

On the demand side, China’s latest COVID outbreak, linked to a Beijing bar, has raised fears of a new phase of lockdown. Read more

In its monthly report, the Organization of the Petroleum Exporting Countries maintained its forecast that global oil demand will exceed pre-pandemic levels in 2022, but said Russia’s invasion of Ukraine and developments related to the coronavirus pandemic pose a considerable risk. Read more

The group sees demand growth slowing next year, OPEC delegates and industry sources told Reuters, as soaring oil prices help drive up inflation and curb the economy. ‘Mondial economy. Read more

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Additional reporting by Ahmad Ghaddar in London, Sonali Paul and Isabel Kua in Singapore; edited by David Gregorio, Jason Neely, Louise Heavens, Marguerita Choy and Deepa Babington

Our standards: The Thomson Reuters Trust Principles.

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Live Updates: Sanofi-GSK Announces ‘Positive’ Covid Booster Results https://aisa-net.com/live-updates-sanofi-gsk-announces-positive-covid-booster-results/ Mon, 13 Jun 2022 07:05:03 +0000 https://aisa-net.com/live-updates-sanofi-gsk-announces-positive-covid-booster-results/

Prepare to remember past scandals and war, which still resonate today. Tuesday is the fifth anniversary of the fire that engulfed Grenfell Tower in west London, revealing gaps in the building’s cladding and triggering a crisis for apartment owners across the UK that continues to generate repercussions.

It is also the 40th anniversary of the end of the Falklands War, the wounds of which remain fresh in Buenos Aires.

Friday marks half a century since the robbery of the Watergate hotel-apartment-office complex in Washington. Fortunately, this one was resolved more quickly, although it left the irritating legacy of the suffix added to what seems to be every subsequent political scandal.

The latest of these, ‘partygate’, has a way of working, although the main protagonist, British Prime Minister Boris Johnson, will (ironically) be at the center of a legitimate social gathering this week as he turns 58. Saturday.

Partygate spin-off series Are You Being (Poorly) Served is set to see another episode with the government promising to release controversial and long-delayed legislation on Monday to overturn the Northern Ireland Protocol. As my colleague Peter Foster noted in his excellent Brexit Briefing newsletter last week, this is unlikely to end well.

Johnson is also expected to announce a new “growth planthis week alongside his Chancellor Rishi Sunak. After the OECD’s verdict on UK growth next year – only sanctions-hit Russia is expected to downgrade among G20 countries – the country clearly needs a new plan, if not a new one. new Prime Minister to implement it.

The Falkland Islands Royal Marine garrison in Port Stanley after the surrender of Argentina in June 1982 © IWM/Getty Images

France goes to the polls again on Sunday for the second round of legislative elections. Newly elected President Emmanuel Macron’s concern is not the far right this time but an alliance of the far left.

There will be at least one resolution this week. Colombians will go to the polls on Sunday for the second round of their country’s presidential election, which will decide whether populist Rodolfo Hernández can defeat former leftist guerrilla Gustavo Petro. Whatever the outcome, it will be an interesting contest.

Economic data

It’s going to be (another) week for interest rate news. The main attraction will be the gathering of the Federal Reserve’s Open Market Committee, but there will also be decisions from the Bank of England and its equivalents in Japan, Switzerland and Brazil.

The question is not whether the tightening of monetary policy will be accelerated but by how much — the answer to this question depends in part on your confidence in the ability of the given economy to achieve a soft landing or whether it is condemned to enter a recession.

Friday’s jump in US inflation fueled talk of a quick tightening. Policymakers have already signaled that, at a minimum, the Fed will proceed with a series of half-point rate hikes. Traders have priced the federal funds rate at around 2.9% by the end of the year, compared to its current target range of 0.75 to 1%. The OECD placed its marker last week ahead of the release of US inflation figures, calling for faster action from the Fed.

Companies

Retail is heavily represented in the earnings calendar this week. The main act is Tesco, Britain’s biggest supermarket chain, with watchers keen to hear more about how inflation is hitting household spending. However, just two months after its annual results, few expect the company to deviate from its cautious scenario that this year’s earnings will be held back by the need for buyers to control prices.

I asked FT retail correspondent Jonathan Eley for a view. “The company has gained market share in recent months, but first quarter sales growth figures will be clouded by the closure of pubs and restaurants in the same period a year ago,” he said. . “It boosted supermarket sales, but hurt Booker, Tesco’s wholesaler.”

Among analysts’ comments, Barclays forecast an overall fall of 1.8% in the UK, with lower volumes partially offset by higher prices.

Read the full schedule for the coming week here

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China is becoming more ‘coercive and aggressive’ https://aisa-net.com/china-is-becoming-more-coercive-and-aggressive/ Sat, 11 Jun 2022 01:22:43 +0000 https://aisa-net.com/china-is-becoming-more-coercive-and-aggressive/

By Idrees Ali

SINGAPORE, June 11 (Reuters) – The United States will do its part to manage tensions with China and prevent conflict even as Beijing grows increasingly aggressive in the Asian region, including near Taiwan, the government said on Saturday. US Secretary of Defense Lloyd Austin.

Relations between China and the United States have been strained in recent months, with the world’s two largest economies clashing over everything from Taiwan and China’s human rights record to its military activity. in the South China Sea.

In a meeting between Austin and Chinese Defense Minister Wei Fenghe on Friday, the two sides reiterated that they want to better manage their relationship although there are no signs of a breakthrough in resolving disputes.

Addressing the Shangri-La Dialogue, Asia’s premier security gathering, Austin said the United States would continue to support its allies, including Taiwan.

“This is particularly important as the PRC (People’s Republic of China) takes a more coercive and aggressive approach to its territorial claims,” ​​he said.

China claims Taiwan as its own and has pledged to take it by force if necessary.

Austin said there had been an “alarming” increase in the number of unsafe and unprofessional encounters between Chinese planes and ships with those of other countries.

A Chinese fighter jet dangerously intercepted an Australian military surveillance plane in the South China Sea region in May and the Canadian military has accused Chinese warplanes of harassing its patrol planes as they surveyed the bypasses North Korean sanctions.

Taiwan has complained for years about repeated missions by the Chinese air force in its air defense identification zone, which is not territorial airspace but a wider area from which it monitors threats. Austin said those incursions have increased in recent months.

Taiwan’s foreign ministry on Friday thanked the United States for its support and denounced China’s “absurd” claims of sovereignty.

“Taiwan has never been under the jurisdiction of the Chinese government, and the people of Taiwan will not succumb to threats of the Chinese government’s use of force,” said ministry spokeswoman Joanne Ou.

Austin said US policy toward Taiwan should remain opposed to any unilateral change to the status quo.

“Our policy hasn’t changed. But unfortunately that doesn’t seem to be true for the PRC,” Austin said.

However, he added, “We will do our part to manage these tensions responsibly, to prevent conflict and to pursue peace and prosperity.”

Biden said last month that the United States would get involved militarily if China attacked Taiwan, although the administration has since clarified that American policy on the issue has not changed.

Washington has long had a policy of strategic ambiguity about whether it will militarily defend Taiwan.

Austin’s encounter with Wei largely focused on Taiwan.

“Maintaining peace and stability across the Taiwan Strait is not just a US interest. It’s a matter of international interest,” Austin said.

NO ASIAN NATO

In a speech focusing on US engagement in the region, Austin said the United States would maintain its presence in Asia, but that Washington understood the need to prevent conflict.

“We are not looking for confrontation or conflict. And we are not looking for a new Cold War, an Asian NATO or a region divided into hostile blocs,” he said.

Austin also touched on Russia’s invasion of Ukraine, which has been a priority in Washington and other Western capitals over the past three months.

“Russia’s invasion of Ukraine is what happens when the oppressors trample on the rules that protect us all,” Austin said. “It’s a glimpse into a possible world of chaos and turmoil that none of us would want to live in.”

Ukrainian President Volodymyr Zelenskiy was due to address the Shangri-La dialogue during a virtual session later on Saturday.

Earlier this year, Washington said China appeared ready to help Russia in its war against Ukraine.

But since then, US officials have said that while they remain suspicious of China’s longstanding support for Russia in general, the military and economic support they have worried about has not materialized, at least for the moment.

China did not condemn Russia’s attack or call it an invasion, but called for a negotiated solution. Beijing and Moscow have grown closer in recent years, and in February the two sides signed a far-reaching strategic partnership aimed at countering US influence and said they would have “no ‘prohibited’ areas of cooperation. “. (Reporting by Idrees Ali; Editing by Raju Gopalakrishnan)

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Credit Suisse CEO calls State Street takeover questions ‘really dumb’ https://aisa-net.com/credit-suisse-ceo-calls-state-street-takeover-questions-really-dumb/ Thu, 09 Jun 2022 14:10:00 +0000 https://aisa-net.com/credit-suisse-ceo-calls-state-street-takeover-questions-really-dumb/

ZURICH, June 9 (Reuters) – Credit Suisse (CSGN.S) chief executive Thomas Gottstein on Thursday called questions about a potential bid for U.S. financial giant State Street (STT.N) “really stupid” , closing the questions after a media inquiry. report on the matter sent shares briefly higher the previous day. Read more

“We never comment on rumours. And my father once gave me advice: for really stupid questions, it’s better not to comment at all,” Gottstein said, reporting on a related question at the European Financial Conference. from Goldman Sachs. Read more

“So I think I’ll take my dad’s advice on this one.”

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Credit Suisse shares soared on Wednesday afternoon, with traders citing a report from Swiss financial news blog Inside Paradeplatz that US-based State Street was planning a takeover bid for the troubled lender, although many industry players have expressed doubts about this claim. Read more

Switzerland’s second-largest lender has described 2022 as a “transition” year as it attempts to turn the page on costly scandals that have led to a near-total senior management reshuffle and restructuring aimed at reducing risk-taking, especially in its investment bank. .

Its shares have lost almost half their value since two of the biggest shocks – the collapse of $10 billion in supply chain finance funds linked to Greensill Capital and a loss of more than $5 billion. dollars on the settlement of transactions by the investment company Archegos – hit the bank in March 2021.

The moves have raised questions about whether the flagship Swiss lender could be challenged by investors demanding its dissolution, or whether its falling stock market value made it a target for a hostile foreign takeover.

Reuters reported in April 2021 that State Street was among the investors that expressed interest in Credit Suisse’s asset management arm.

Gottstein said Thursday that no joint ventures or strategic options were on the table for the company, adding that asset management remained a key division for Credit Suisse.

The bank warned on Wednesday of a likely second-quarter loss and said it was now aiming to cut costs. Read more

Gottstein said that along with accelerating cost initiatives, the bank would also slow down some of its investments.

“In some areas we’re waiting a little bit with some of the growth investments,” he said. “In China, we had planned to increase relationship managers by about a third each year (from 2022 to 2024). This growth of RM, we will slow down a bit.”

The bank, however, remains committed to its plans in China, he said, disputing a Bloomberg report earlier Thursday.

“I want to be very clear: our global rollout in China is on track. There has been news that we are delaying our license application for the (licensed bank), which is not true. We are on the right track on this. We also want to achieve 100% on our securities joint venture in China,” he said.

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(Reporting by Brenna Hughes Neghaiwi, editing by Miranda Murray and Emelia Sithole-Matarise)

Our standards: The Thomson Reuters Trust Principles.

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June 7 live updates: Zelensky says standoff with Russia ‘not an option’, Yellen urges Congress to step up fight against inflation https://aisa-net.com/june-7-live-updates-zelensky-says-standoff-with-russia-not-an-option-yellen-urges-congress-to-step-up-fight-against-inflation/ Tue, 07 Jun 2022 21:01:22 +0000 https://aisa-net.com/june-7-live-updates-zelensky-says-standoff-with-russia-not-an-option-yellen-urges-congress-to-step-up-fight-against-inflation/

The Reserve Bank of Australia raised interest rates by 50 basis points, aiming to rein in runaway inflation with an increase that beat forecasts.

The decision to raise the policy rate to 85 basis points demonstrates a more aggressive stance on the part of the central bank on inflation after a moderate hike last month. It is the first time the RBA has introduced back-to-back rate hikes since 2010 and the biggest rate hike since February 2000.

RBA Governor Philip Lowe said the action was needed to bring inflation back to target levels over time.

“Inflation is expected to pick up again, but then come back down to the 2-3% range next year,” he said. “Rising electricity and gas prices and recent increases in petrol prices mean that in the short term inflation is likely to be higher than expected a month ago.”

Inflation has been lower in Australia than in many other markets, but the cost of petrol and fresh food has started to shake consumer confidence. Fast food chain KFC said this week it would start using cabbage leaves in Australia due to supply chain issues that have increased the cost of lettuces.

The supply problems were partly due to the recent floods in the country which hit the agricultural sector. Lowe said global factors, including the pandemic and the war in Ukraine, also contributed to higher inflation, as did a tight labor market.

Jim Chalmers, Australia’s new treasurer after Labor came to power last month, warned of a “catastrophic” economic situation if inflation is left unchecked.

Chalmers wrote on Twitter: “Difficult news for homeowners already facing soaring costs of living, including soaring energy prices. A brighter future awaits us, but first we must meet together the inflation challenge that we inherited and the accompanying rise in interest rates.

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Chinese group Ant launches digital bank ANEXT in Singapore https://aisa-net.com/chinese-group-ant-launches-digital-bank-anext-in-singapore/ Mon, 06 Jun 2022 06:46:00 +0000 https://aisa-net.com/chinese-group-ant-launches-digital-bank-anext-in-singapore/

A man walks past an Ant Group logo during the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 8, 2021. REUTERS/Yilei Sun/File Photo

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BEIJING, June 6 (Reuters) – China’s Ant Group, a financial technology (fintech) giant controlled by billionaire Jack Ma, said on Monday it has launched a Singapore-incorporated digital wholesale bank called ANEXT Bank.

ANEXT has received approval from the Monetary Authority of Singapore (MAS) to start operations on June 2, Ant and wholly-owned ANEXT said in a joint statement.

The move marks one of Ant’s biggest overseas pushes since its $37 billion initial public offering (IPO) was derailed by Chinese regulators in late 2020.

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Ant was awarded one of Singapore’s first digital wholesale banking licenses in late 2020, allowing it to serve large customers, including financial institutions and corporates.

Ant, about 33% owned by e-commerce leader Alibaba Group Holding Ltd (9988.HK), said ANEXT focused on micro, small and medium-sized enterprises (SMEs), particularly those with operations cross-border.

“This marks another milestone in Singapore’s digital banking development journey, a strategic effort to ensure the banking industry remains progressive, competitive and globally vibrant,” said Sopnendu Mohanty, Chief Financial Technology Officer of Singapore. MAS.

Tech company Sea and ride-sharing and fintech firm Grab won “digital full bank” licenses in 2020, allowing Singaporean businesses to take deposits directly and offer services locally to individuals as well as businesses.

MAS said he expects the pair to launch digital banks this year.

Led by banking veteran Toh Su Mei, ANEXT will develop an open framework for financial institutions in collaboration with Proxtera, a local entity initiated by MAS and Singapore’s Infocomm Media Development Authority, according to the statement.

The ANEXT business account will be available for SMBs from the third quarter of this year, the companies said.

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Reporting by Yingzhi Yang and Brenda Goh; Editing by Kim Coghill and Christopher Cushing

Our standards: The Thomson Reuters Trust Principles.

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