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☆ China cuts medium-term lending rate as youth unemployment hits new record high
▼ + stars: | 2023-06-15 | by ( Michelle Toh | ) edition.cnn.com time to read: +2 min

The People’s Bank of China lowered its key policy rate — the medium-term lending rate — from 2.75% to 2.65%. It was the first such rate reduction since last August, and largely expected following a surprise cut by the central bank Tuesday to China’s seven-day reverse repo rate. The trimming of the repo rate — also by 0.1 percentage points to 1.9% — marked its first since August. Urban youth unemployment — already at record levels — hit another new high in May, reaching 20.8%. “They need [economic] growth.”The youth unemployment rate could get even worse when a record 11.6 million college students enter the job market this summer, as estimated by the education ministry earlier this year.

Persons: —, Jamie Dimon, “, ”, Larry Hu Organizations: Hong Kong CNN, People’s Bank of, Urban, JPMorgan, Bloomberg Locations: Hong Kong, China, People’s Bank of China, China’s

Hong Kong/Seoul CNN —South Korean prosecutors have indicted a former Samsung executive for allegedly working with competitors who tried to build a copycat semiconductor factory in China. In a Monday statement, the Suwon district prosecutor’s office said it had charged a 65-year old former employee of what it called “Company A” over data theft. Prosecutors said the executive then tried to use that information to build a “duplicate” plant in the Chinese city of Xi’an, about 1.5 kilometers (one mile) away from a Samsung semiconductor factory. News agency Yonhap identified the second company as SK Hynix, another South Korean chip giant. Reuters reported that the attempt to build the new plant using Samsung data between 2018 and 2019 ended in failure due to funding issues.

Persons: wasn’t, Prosecutors, Yonhap Organizations: Seoul CNN — South, Samsung, “, SK Hynix, Prosecutors, Industrial Technology Protection, Reuters Locations: Hong Kong, Seoul, China, Suwon, Xi’an, Taiwan, Singapore, South Korea’s, South Korea, United States, Netherlands, Japan, Washington, Beijing

Hong Kong/Seoul CNN —Sam Altman, the CEO of ChatGPT maker OpenAI, used a high-profile trip to South Korea on Friday to call for coordinated international regulation of generative artificial intelligence, the technology that underpins his famous chatbot. “As these systems get very, very powerful, that does require special concern, and it has global impact. So it also requires global cooperation,” Altman said at an event in Seoul, ahead of a meeting with South Korean President Yoon Suk Yeol. In China, authorities will also “be initiating AI regulation,” according to Elon Musk, who helped found OpenAI before breaking from the group. As many as 300 million full-time jobs around the world could eventually be automated in some way by generative AI, according to Goldman Sachs estimates.

Persons: Sam Altman, ” Altman, Yoon Suk, that’s, ”, Yoon, Antony Blinken, Elon Musk, Musk, OpenAI, Goldman Sachs, Altman, “ it’s, ” Sam Altman, SeongJoon Cho, Narendra Modi Organizations: Seoul CNN, South Korean, Reuters, World Economic, SoftBank, Bloomberg, Getty, United Arab Locations: Hong Kong, Seoul, South Korea, Sweden, China, India, Israel, United Arab Emirates

☆ Subway plans to open nearly 4,000 stores in China in one of its biggest deals ever
▼ + stars: | 2023-06-07 | by ( Michelle Toh | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —Subway is planning to add thousands of new sandwich shops in China, increasing its footprint in the country by more than seven times. The world’s biggest sandwich chain announced Tuesday that it would open almost 4,000 new stores across mainland China over the next 20 years. The deal “is the largest master franchise agreement in Subway history and one of the largest across the entire [fast-food restaurant] industry,” Subway said in a statement. The large-scale expansion will be made possible by a deal Subway has inked with a Chinese company, Shanghai Fu-Rui-Shi Corporate Development (FRS). A 5-meter-long Subway sandwich seen in Shanghai on May 30.

Persons: Shanghai Fu, John Chidsey, Chase Organizations: Hong Kong CNN —, ”, Corporate, Subway, Publishing, ” Subway Global, JPMorgan Locations: Hong Kong, China, Shanghai, United States, Asia Pacific

Hong Kong/Seoul CNN —“The Little Mermaid” has bombed with moviegoers in China and South Korea amid racist critiques in some quarters over the casting of Black actress Halle Bailey as main character Ariel. Disney’s live-action remake has made only $3.6 million in mainland China since opening there on May 26, according to Box Office Mojo. In South Korea, “The Little Mermaid” has grossed $4.4 million since May 24. Halle Bailey in 'The Little Mermaid.' Ariel and Prince Eric in a scene from 'The Little Mermaid.'

Persons: Halle Bailey, Ariel, Disney’s, Bailey, “, ”, Rob Marshall, ‘ Let’s, ’, Fans, Prince Eric, Maleficent ’, Paul Dergarabedian Organizations: Seoul CNN —, Office, Korean Film Council, Global Times, Disney, Hollywood, Halle, United, Comscore Locations: Hong Kong, Seoul, China, South Korea, United States, Comscore, ”, Japan, Philippines, Indonesia, Italy, Germany, United Kingdom, Australia, Brazil, Mexico, Singapore, Finland, United Arab Emirates

☆ Premarket stocks: Markets may be overly optimistic about the Fed
▼ + stars: | 2023-06-05 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

Economists say that could mean more rate hikes from the Federal Reserve are coming, but investors appear sanguine. That makes it more difficult for the data-dependent Federal Reserve to justify a pause to interest rate hikes at its June meeting. It has been very strange and certainly our own expectations were that the labor market would deteriorate more than it has. So you have a strong consumer and strong labor market essentially supporting each other for the time being. “That level is more consistent with a 2% growth economy and a 2% inflation economy, not a 4% inflation level economy,” Moynihan added.

Persons: CME’s FedWatch, Bell, Seema Shah, Powell, It’s, there’s, it’s, Brian Moynihan, “, ”, Moynihan, ” Moynihan, Brent, Mark Thompson, Michelle Toh, ” Prince Abdulaziz bin Salman Organizations: CNN Business, Bell, New York CNN, Federal Reserve, Federal, Reserve, Asset Management, Fed, Bank of America, CBS, Reuters Locations: New York, United States, Europe, Asia, Americas, Saudi Arabia, OPEC, China, Saudi

☆ C919: Why China's answer to Boeing and Airbus isn't as 'homegrown' as it seems
▼ + stars: | 2023-06-02 | by ( Michelle Toh | ) edition.cnn.com time to read: +7 min

Hong Kong CNN —China is claiming a historic win this week after its answer to Boeing and Airbus, the C919, took to the skies for its first commercial flight. But instead of boosting China’s global stature in technology innovation, experts say the C919 is a symbol of its continued reliance on the West. COMAC’s first commercial plane, by comparison, is a much smaller regional jet called the ARJ21, which can only fly up to 3,700 kilometers (2,300 miles) and accommodate up to 97 passengers. Technicians working on a COMAC C919 aircraft under assembly at the COMAC Shanghai Research and Development Center in 2017. Boeing and Airbus also depend on “high-quality global suppliers,” state-run newspaper China Daily said in an editorial Wednesday.

Persons: ”, Scott Kennedy, Scott, Shukor Yusof, it’s, Kennedy, “, Qilai Shen, Yusof, VCG, Parker, Rockwell Collins, America’s, COMAC, COMAC hasn’t, there’s, ” Yusof Organizations: Hong Kong CNN, Boeing, Airbus, Center for Strategic, International Studies, Commercial Aircraft Corporation of China, Endau, CNN, China Eastern Airlines, Shanghai Research, Development Center, Bloomberg, China, Global Times, GE, CFM, China Daily, America’s Boeing, US, TransNusa, “ Airlines Locations: Hong Kong, China, Beijing, North America, Europe, Washington, Shanghai, Russia, Ukraine, Russian, Asia, United States, European, Malaysia, Indonesia

☆ Elon Musk is once again the world’s richest man
▼ + stars: | 2023-05-31 | by ( Michelle Toh | ) edition.cnn.com time to read: +1 min

Hong Kong CNN —Elon Musk has reclaimed his position as the world’s wealthiest person. This week, Arnault’s wealth slid after a drop in LVMH’s stock Wednesday, according to Bloomberg calculations. Arnault surpassed Musk in December, as his wealth climbed due to a boom in luxury goods sales that helped drive up LVMH’s stock price. Musk, meanwhile, has enjoyed a meteoric rise up the world’s rich lists in recent years as his fortunes are directly linked to those of Tesla, the electric automaker. Outside of Tesla, Musk is also CEO of SpaceX, the space exploration firm, and the owner of social network Twitter (TWTR).

Persons: Hong Kong CNN — Elon, Bernard Arnault’s, Louis Vuitton, Dior, Celine, Musk, Tesla Organizations: Hong Kong CNN, Bloomberg, SpaceX, Twitter Locations: Hong Kong

☆ Elon Musk: CEOs flock to China as risks to trade and investment rise
▼ + stars: | 2023-05-31 | by ( Michelle Toh | ) edition.cnn.com time to read: +8 min

To drum up business, Chinese leaders have urged foreign companies to invest more in the country, promising them an open and level playing field. “The interests of the United States and China are intertwined like conjoined twins,” he was quoted as saying by the foreign ministry. Over time, “there will be less trade” between China and the United States, Dimon predicted. The move was seen as retaliation for restrictions the United States has imposed on Chinese chipmakers. The interests of the United States and China are intertwined like conjoined twins.

Persons: Elon, Laxman, Jamie Dimon, Qin Gang, Tesla, Elon Musk, Musk, ”, Warren Buffett, Dimon’s, Dimon, That’s, Bain, “ who’s, ” Michael Hart, Ben Cavender, Nick Marro, Tim Cook, Cook, Marro, ‘, ” —, Sophie Jeong, Martha Zhou Organizations: Hong Kong CNN, Tesla, Starbucks, JPMorgan, Apple, Samsung, Aramco, Volkswagen, HSBC, Standard Chartered, Foreign, China's Ministry of Foreign Affairs, Reuters, China’s Foreign, Shanghai’s Communist Party, Bloomberg, Group, American Chamber of Commerce, CNN, British, of Commerce, China Market Research Group, US, Micron, Economist Intelligence Unit, “ Companies, China Development Forum Locations: Hong Kong, China, Beijing, United States, Shanghai, Taiwan, Washington, New York, American, Xinjiang

☆ Shein partners with Reliance in major India comeback
▼ + stars: | 2023-05-26 | by ( Michelle Toh | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —Shein is plotting a major comeback in India, nearly three years after it was booted out of the country. The fast fashion giant is partnering with the retail arm of Mukesh Ambani’s Reliance Industries, a Shein spokesperson confirmed Friday. “We can confirm Shein’s partnership with Reliance Retail and have no additional comment at this time,” a Shein spokesperson said. A powerful partnerIts new partnership with Reliance Retail, which bills itself as the country’s largest retailer, could be a game-changer. Shein has said it doesn’t have any suppliers in the Xinjiang region, and it has zero tolerance for forced labor.

Persons: Hong Kong CNN — Shein, Mukesh Ambani’s, Shein, Bain, “, Sania Farooqui Organizations: Hong Kong CNN, Industries, Wall Street, Financial Times, Reliance, Reliance Retail, Burberry, Apple, US Securities and Exchange Commission Locations: Hong Kong, India, Zara, China, Singapore, ”, Washington, Xinjiang, New Delhi

Hong Kong CNN —Cathay Pacific Airways said Tuesday it had fired three cabin crew members after a passenger complained of discrimination on a flight from mainland China, an incident that angered Hong Kong officials and underscored the pressure on the city’s flag carrier to please Beijing. In a statement late Tuesday announcing the dismissals, Cathay Pacific (CPCAY) CEO Ronald Lam said he would personally lead a task force to improve service and avoid similar incidents in the future. A passenger walking to a Cathay Pacific counter at Hong Kong's international airport in 2018. The airline made headlines this week over an incident of alleged discrimination with a passenger from mainland China. In an editorial, it said there was “a question mark on how far Cathay Pacific can fly if their old problems remain unchanged.”— CNN’s Nectar Gan and Chris Lau contributed to this report.

☆ Stan Grant: ABC Australia apologizes to host as he steps away due to 'sickening' racist attacks
▼ + stars: | 2023-05-22 | by ( Michelle Toh | ) edition.cnn.com time to read: +4 min

He had spoken out Friday in an ABC column, detailing his recent experience of racist attacks and accusing his employer of not offering enough support. I am writing this because I will not have people depict me as a person of hate,” Grant wrote. “No one at the ABC — whose producers invited me onto their coronation coverage as a guest — has uttered one word of public support. As a member of the Australian Aboriginal community, Grant has been vocal about the country’s record on Indigenous rights. Earlier this year, the ABC lodged a complaint with Twitter about the racist comments published about him on its platform.

☆ For Apple, emerging markets like Vietnam, India and Indonesia are 'a golden opportunity' right now
▼ + stars: | 2023-05-19 | by ( Michelle Toh | ) edition.cnn.com time to read: +6 min

Hong Kong CNN —Apple launched an online store in Vietnam this week, in another nod to the growing importance of emerging markets for the iPhone maker. Markets like Vietnam, India and Indonesia are becoming more important for Apple as its growth in developed markets, including China, slows down, prompting the company to focus on places where it’s traditionally been less active. “Clearly, growth has slowed globally and thus put more pressure [on Apple] to aggressively go after emerging markets,” said Daniel Ives, managing director of Wedbush Securities. This has “been the core part of its success in China that now can be replicated in India, Indonesia, and Vietnam, among others,” said Ives. And while consumers are becoming more affluent, the company’s price points are still considered high in many emerging markets, noted Ives.

Hong Kong CNN —The head of Japan’s biggest music agency has apologized over allegations of years-long sexual abuse committed by its founder, the late entertainment mogul Johnny Kitagawa. “We sincerely apologize for the great deal of trouble caused by our founder Johnny Kitagawa’s alleged sexual abuse of individuals,” said Julie Fujishima, the company’s president and CEO. “On the other hand, Johnny Kitagawa, who is the party concerned, cannot speak on the accusations.”Fujishima also warned of the risk of “slander, due to speculation,” suggesting skepticism over some claims. They spoke about alleged sexual assault committed by Johnny Kitagawa, who died in 2019. A Tokyo High Court partially overturned the earlier decision in 2003, ruling the published sexual abuse claims were not libelous.

☆ Premarket stocks: Wall Street's 'fear gauge' is rising as US debt talks drag on
▼ + stars: | 2023-05-16 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Markets will get volatile, maybe the stock market will go down, the Treasury markets will have their own problems,” he said. But this fear of market volatility isn’t going away. A similar fight around the debt ceiling in 2011 spurred a serious bout of market volatility. Wall Street’s key measure of volatility, the VIX, reached two year highs and soared more than 35% in just one day. Wall Street typically uses the VIX, known as the market’s “fear gauge,” as a way to measure how investors feel about financial and economic uncertainties.

☆ TSMC stake sold by Warren Buffett's Berkshire Hathaway
▼ + stars: | 2023-05-16 | by ( Michelle Toh | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —Warren Buffett’s conglomerate has sold its remaining shares in the world’s largest chipmaker, TSMC, after the “Oracle of Omaha” sounded alarms about its homebase of Taiwan. In a Monday filing, Berkshire Hathaway (BRKA) disclosed that it was no longer holding a stake in Taiwan Semiconductor Manufacturing Company (TSM) as of the end of the first quarter. In February, Berkshire revealed it had sold 86% of its shares in TSMC, which were purchased for $4.1 billion just months before. As Berkshire Hathaway revealed its withdrawal Monday, other prominent investors made bets on the stock. According to a regulatory filing, Macquarie has increased its stake in TSMC, while Tiger Global has also bought in.

☆ Australia trade minister flies to China to lobby for 'full' restoration of exports
▼ + stars: | 2023-05-12 | by ( Michelle Toh | ) edition.cnn.com time to read: +3 min

Trade Minister Don Farrell arrived in Beijing on Thursday for a three-day visit to meet with his counterpart, Wang Wentao, according to the Chinese commerce ministry. It’s the first visit to China by an Australian trade minister since 2019. “I will be advocating strongly for the full resumption of unimpeded Australian exports to China — for all sectors — to the benefit of both countries,” he added. As a result, Australian exports to China fell by 13% in 2022, compared to the previous year, according to Chinese customs data. In March, Australia’s exports to China hit a record high, with the value of shipments reaching 19 billion Australian dollars ($12.8 billion).

☆ Starbucks, Estée Lauder, Qualcomm: Global companies warn of slower-than-expected recovery in China
▼ + stars: | 2023-05-11 | by ( Michelle Toh | ) edition.cnn.com time to read: +6 min

Starbucks (SBUX) and Qualcomm (QCOM) have also flagged uncertainties related to the country, which is a top market for both. Beijing abandoned its zero-Covid policy in December and scrapped longstanding quarantine requirements for international arrivals in January, ending restrictions that had isolated its economy. The welcomed, if abrupt, policy U-turn led to hopes that China could help propel global growth as it had before the pandemic. The idea was that as soon as the zero-Covid policy would be over, the Chinese households and consumers would just go berserk. Starbucks warned last Tuesday that sales growth in China was starting to cool — and likely would continue that trajectory over the next six months.

☆ HSBC: the global bank faces off with divided shareholders
▼ + stars: | 2023-05-05 | by ( Michelle Toh | ) edition.cnn.com time to read: +5 min

Hong Kong CNN —HSBC shareholders are expected to vote Friday on demands for a radical overhaul of the bank. Canvassing for supportBut Ken Lui, an activist shareholder in Hong Kong spearheading the resolution, told CNN he was confident his proposal would pass. Ken Lui canvassing for votes in Hong Kong in April. Courtesy Ken LuiThese shareholders have been unhappy with the bank previously scrapping its dividend in 2020, at the request of British regulators. HSBC shares were down about half a percent in Hong Kong afternoon Friday.

☆ Washington says Chinese airlines can increase flights to America
▼ + stars: | 2023-05-04 | by ( Michelle Toh | ) edition.cnn.com time to read: +3 min

The US Department of Transportation confirmed to CNN that it had issued an order permitting Chinese airlines to increase their number of weekly round-trip flights to 12. That’s up from the eight weekly round-trip flights currently allowed for Chinese carriers. Currently, three US airlines American Airlines (AAL), Delta Air Lines (DAL) and United Airlines (UAL) fly routes between the two countries. Chinese operators Air China, China Southern Airlines, China Eastern Airlines and Xiamen Airlines also serve the two markets. Chinese carriers have not been subject to the restrictions, as the relationship between Moscow and Beijing remains intact, leading to calls in the United States and Britain for bans on Chinese flights that use Russian airspace.

☆ PDD, Shein, Binance: These hugely successful companies were born in China. They don't want you to know that
▼ + stars: | 2023-05-04 | by ( Michelle Toh | ) edition.cnn.com time to read: +10 min

Hong Kong CNN —Binance, the world’s largest cryptocurrency exchange, doesn’t want to be called a Chinese company. “Our opposition in the West bends over backward to paint us as a ‘Chinese company,’” he wrote in a blog post last September. Zhao has been vocal about how he feels his firm is misrepresented as a "Chinese company." The same concern could, in theory, apply to any Chinese company. TikTok CEO Shou Chew testifying before US Congress in March.

☆ Jack Ma takes up visiting professorship in Japan
▼ + stars: | 2023-05-02 | by ( Michelle Toh | ) edition.cnn.com time to read: +2 min

Hong Kong CNN —Jack Ma has a new job: visiting professor in Japan. The Chinese billionaire has joined Tokyo College, under the University of Tokyo, according to a Monday statement on its website. In his role, Ma will work with researchers, serve as an adviser to the college and participate in seminars. In March, he visited a school funded by the Chinese tech giant in his hometown of Hangzhou, where he was seen meeting with students and teachers. Ma relinquished control of Ant Group in January as part of a shakeup of its shareholding structure.

☆ HSBC stock jumps as Q1 profits triple and and it announces share buyback
▼ + stars: | 2023-05-02 | by ( Michelle Toh | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —HSBC announced it had tripled its quarterly profit Tuesday, blowing past expectations as it benefited from high interest rates around the world. Europe’s biggest bank recorded a whopping $12.9 billion in pre-tax profit for the quarter ended March. That was up 207% from a year earlier, and significantly higher than the $8.6 billion average predicted by a poll of 17 analysts compiled by HSBC. The bank’s revenue also surged to $20.2 billion, compared with $12.5 billion for the same period the previous year. HSBC (HSBC) attributed the jump in profits partly to a provisional sum of $1.5 billion it expects to gain from buying the UK unit of failed US lender, Silicon Valley Bank (SVB).

☆ US Chamber of Commerce warns of major increase in risks for businesses in China
▼ + stars: | 2023-05-01 | by ( Michelle Toh | ) edition.cnn.com time to read: +2 min

Hong Kong CNN —The United States Chamber of Commerce has warned that rising scrutiny of American firms in China “dramatically increases” the uncertainties and risks of doing business in the country. “The services these firms provide are fundamental to establishing investor confidence in any market, including China,” the chamber said in a statement, without naming either company. Suzanne Clark, president and chief executive officer of the US Chamber of Commerce, speaking during an event in Ottawa, Canada, in April. The news came a month after Chinese authorities closed the Beijing offices of Mintz, detaining five of its local staff. The news about Bain has spooked the US business community in China, the American Chamber of Commerce in China told CNN last week.

The case for investing in India — a nation of 1.4 billion — is clear, and only bolstered by recent geopolitical shifts. As Western leaders look to boost economic cooperation with countries that share similar values, India, the world’s largest democracy, stands to gain. Arun Sankar/AFP/Getty ImagesIndia’s so-called “demographic dividend,” the potential economic growth arising from a large working-age population, represents a major opportunity. A recent Air India order for more than 200 Boeing planes could support more than 1 million American jobs. One consistent with our democratic values, and another not.”‘Economic miracle?’Beyond geopolitics, India’s economic and demographic fundamentals are driving business interest.

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