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☆ Fitch says Alibaba’s new structure will not impact credit profile
▼ + stars: | 2023-04-04 | by ( ) www.reuters.com time to read: +1 min

April 4 (Reuters) - Fitch Ratings on Tuesday said that it doesn't expect Alibaba Group Holding Limited's (9988.HK) new structure to bring about an immediate change in its credit profile. The credit rating agency said that it expected the group's new governance structure to enhance its ability to respond rapidly to changes in the market and competition, improve management accountability and increase transparency to regulatory authorities. Alibaba previously said it was planning to split into six units and explore fundraisings or listings for most of them, in a major revamp as China vows to ease a sweeping regulatory crackdown and support its private enterprises. Fitch also said that the structural subordination of Alibaba's current debt will not pose a significant credit risk, and that the company could unlock value through spin-offs or IPOs. Reporting by Kanjyik Ghosh in Bengaluru; Editing by Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

☆ Here's who qualifies for the home office deduction this year, tax pros say
▼ + stars: | 2023-04-04 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Eva-katalin | E+ | Getty ImagesIf you're one of the millions of Americans who worked remotely — fully or partially — in 2022, you may be wondering about the home office deduction on your taxes. However, many of those workers can't claim the home office deduction, said Brad Sprong, national tax leader of KPMG Private Enterprise. You won't qualify for the home office deduction with Form W-2 income. And the IRS expects it to be the principal place for your business, used regularly. Calculate the home office deductionThere are two ways to calculate the home office deduction: the "simplified option" and the "regular method," according to the IRS.

The flow may be signalling a shift in sentiment among foreign investors who have been notably absent while China's markets and economy roared back to life after Beijing abruptly lifted its stringent zero-COVID policy in December. Alibaba's shares (9988.HK) are up more than 14% in the five days since the company's announcement and some 11.7 billion yuan ($1.7 billion) in foreign cash has flowed into China's markets. That's already more than the net 9.2 billion yuan in inflows in February and drove March flows to 35.4 billion yuan and the quarter's inflow to a record of 186 billion yuan. Premier Li Qiang assured foreign investors that China would unswervingly adhere to reform and opening up, expanding market access and optimising the business environment. Ernest Yeung, a portfolio manager at U.S. asset manager T. Rowe Price, anticipated "a gradual process of stabilisation" of private enterprises and the internet sector.

☆ China's Alibaba to break up empire into six units as Jack Ma returns home
▼ + stars: | 2023-03-29 | by ( Josh Horwitz | ) www.reuters.com time to read: +5 min

Alibaba said the biggest restructuring in its 24-year history would see it split into six units - Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group. Zhang will continue as chairman and CEO of Alibaba Group, which will follow a holding company management model, and also serve as CEO of Cloud Intelligence Group. The exception would be Taobao Tmall Commerce Group that handles China commerce businesses and will remain a wholly owned unit of Alibaba Group. Investors said the split signals the clearing of regulatory worries and allays concerns that Alibaba had lost the potential to grow. [1/2] The logo of Alibaba Group is seen at its office in Beijing, China January 5, 2021.

☆ Jack Ma returned to China to visit a private school he founded, 2 years after he first vanished from public view amid Beijing's tech crackdown
▼ + stars: | 2023-03-28 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

On Monday, Alibaba co-founder Jack Ma visited a private school he founded in Hangzhou, China. Ma first vanished from public view after angering authorities in 2020 amid Beijing's tech crackdown. The private school caters to students from kindergarten to high school. Ma returned to China amid signals that Beijing may be taking a friendlier stance toward private enterprises after more than two years of a widespread tech crackdown. His visit follows a top Chinese central banker's comments in January that Beijing's tech crackdown was coming to a close.

☆ China to crack down on malicious online comments damaging reputation of businesses
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: 1 min

BEIJING, March 28 (Reuters) - China plans to clamp down on malicious online comments that damage the reputation of businesses and entrepreneurs, said a Cyberspace Administration official on Tuesday. "False information against enterprises and entrepreneurs, especially private enterprises and private entrepreneurs, appear from time to time, damaging the brand image of enterprises," said Shen Yue, an official with the Cyberspace Administration of China, when answering a question at a news briefing. Shen said it also affects the normal production and operation of enterprises, resulting in economic losses. Reporting by Beijing newsroom; Editing by Christopher CushingOur Standards: The Thomson Reuters Trust Principles.

March 29 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. An interest rate decision in Thailand and Australian inflation top a light Asian calendar on Wednesday, with broader risk appetite likely to be tempered by a further rebound in U.S. bond yields. But this relief is running up what looks like a renewed spike higher in bond yields and borrowing costs, which is dampening risk appetite. One curiosity is the dollar, weakening again on Tuesday despite the rise in U.S. bond yields. Indeed it mostly struggled to catch a safe-haven bid when the banking stresses were most acute and is now struggling even when U.S. yields are rising.

☆ Alibaba founder Jack Ma back in China after months abroad in sign Beijing may be warming to tech
▼ + stars: | 2023-03-27 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +3 min

Alibaba founder Jack Ma has been seen in public in China after the first time in several months. The billionaire's reapprance may suggest Beijing is softening its stance toward the technology sector after an 18-month crackdown. Alibaba founder Jack Ma has been spotted in China after spending months abroad in a potential sign that Beijing is warming to technology giants again after a roughly 18-month crackdown on the sector. Ma has been traveling outside of China over the past few months and has been spotted in Spain, Japan and Thailand. "In so doing, the government intends to signal its warmth towards private sector and investors—if even Jack Ma is perceived as having been pardoned, everyone else should feel safe and welcome," Sun said.

☆ Wall Street investment firms are thirsty for the West's vanishing water
▼ + stars: | 2023-03-22 | by ( Lucy Kafanov | ) edition.cnn.com time to read: +10 min

And it comes at a time when Arizona’s allocation of Colorado River water is being slashed amid a decadeslong megadrought. “In the face of record shortages on the Colorado River, we have voluntarily answered urgent and repeated calls to conserve water. Water Asset Management owns at least 3,000 acres in Western Colorado’s Grand Valley, where Mueller works to protect Colorado’s share of the river. “Water Asset Management has engaged in a number of different purchase methods to keep their transactions unknown to many of the local jurisdictions,” Mueller said. The Colorado River in Eagle County, Colorado.

☆ Li Qiang: China's new premier tries to reassure private sector amid widespread concerns about future
▼ + stars: | 2023-03-13 | by ( Laura He | ) edition.cnn.com time to read: +5 min

Hong Kong CNN —China’s new premier has tried to reassure the private sector in his debut press conference, as concerns grew about the country’s future policy direction with the introduction of a new cabinet loyal to leader Xi Jinping. Li Qiang, a long-time aide to Xi, officially succeeded Li Keqiang as premier over the weekend. Li Qiang speaks during his first press conference as premier at the Great Hall of the People in Beijing on March 13, 2023. As a group of Xi’s close associates stepped into office, some Western-educated, reform-minded officials departed – including former Premier Li Keqiang and former Vice Premier Liu He. Analysts are worried that Xi’s preference for personal loyalty over technocratic competence signals a more ideology-driven policy direction that could further dent private sector growth and worsen Beijing’s ties with Washington.

Now overseas demand is slumping amidst a local credit crunch and a corruption crackdown. A trade agreement and warmer relations with Washington spared its manufacturers from tariffs and sanctions applied to its northern neighbour. Now overseas demand is stuttering. Vietnam's exports of goods and services have been slowingFollow @KatrinaHamlin on TwitterCONTEXT NEWSVietnam's economy grew 8.02% in 2022, the fastest annual pace since 1997, according to data released by the country’s General Statistics Office on Dec. 29. Vietnamese exports were flat in February and fell 23.4% in January compared to a year earlier, according to Refinitiv data released on March 9.

☆ Venture Capital Investors Are Trying to Take Over Pandemic Response
▼ + stars: | 2023-03-12 | by ( Adam Rogers | ) www.businessinsider.com time to read: +19 min

Private capital has been eyeing public health for years. Several founders and investors told me that the failure of Kleiner's fund made Silicon Valley wary of investing in pandemic preparedness. Venture investors love that kind of thing. Public health and private industryWhen COVID hit, Charity Dean was the assistant director of the California Department of Public Health. In the end, almost every pandemic-related product created by Silicon Valley will ultimately require the government as a primary customer.

☆ China consumer inflation slowest in a year; producer deflation deepens
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +2 min

Summary Feb consumer inflation slowedFeb producer deflation deepenedBEIJING, March 9 (Reuters) - China's annual consumer inflation slowed down in February as consumers remained cautious despite the abandonment of strong pandemic controls late last year, official data showed on Thursday. The CPI, which is seasonally adjusted, fell 0.5% from a month earlier, missing the forecast of 0.2% gain. Annual producer deflation deepened last month. Economists say China will nonetheless see upward pressure on consumer prices in coming months, mostly thanks to the end of efforts to suppress COVID-19. Core annual inflation, which excludes volatile food and energy prices, was 0.6% in February, compared with January's 1.0%, reflecting persistently weak domestic demand.

In a major shake-up, China will set up the new regulatory body, the National Financial Regulatory Administration (NFRA), according to a proposal that the State Council, or cabinet, presented to parliament on Tuesday. The watchdog, which will oversee all aspects of China's $57 trillion financial sector apart from the securities market, should help reduce regulatory overlap especially at the level of local government, analysts say. There are also plans, sources have said, for the revival of another high-level financial watchdog which is expected to be directly under central party leadership. 'ENHANCING CENTRALISATION'In its reform proposals presented in parliament, the State Council said the changes were meant to "deepen reforming local financial regulatory systems" by "enhancing centralised management of financial affairs". Some investors, however, are concerned that the regulatory power reshuffle means tighter government control, which may bring more interference or crackdowns on financial activity, particularly in the private sector.

☆ China to set up new financial regulator in sweeping reform
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +6 min

The new financial regulator will replace the China Banking and Insurance Regulatory Commission (CBIRC) and bring supervision of the industry, excluding the securities sector, into a body directly under the State Council, or cabinet. The proposal for setting up the new regulator, the National Financial Regulatory Administration, was presented to China's parliament during its annual meeting on Tuesday. China's financial sector is overseen by the People's Bank of China (PBOC), the CBIRC, and the China Securities Regulatory Commission (CSRC), with the cabinet's Financial Stability and Development Committee having overall responsibility. The setting up of the new financial regulatory body comes as Beijing seeks to rein in large corporate and financial institutions that may bring systemic risks via regulatory arbitrage among multiple authorities. 'STRENGTHEN SUPERVISION'The new administration will "strengthen institutional supervision, supervision of behaviours and supervision of functions", according to the plan.

☆ NPC 2023: Xi Jinping hits out at US as he urges China's private firms to 'fight' alongside Communist Party
▼ + stars: | 2023-03-07 | by ( Laura He | ) edition.cnn.com time to read: +5 min

“The private sector is an important force for our party to govern in the long term,” Xi said. Business confidence has plummeted following an unprecedented regulatory crackdown on the private sector and increasing uncertainties about China’s future path. Major contributorThe private sector, despite being dwarfed in size by the state sector, contributes more than 60% to China’s GDP and over 80% of employment, according to official statistics. It’s also necessary to protect the property rights of private companies and entrepreneurs and treat state firms and private companies equally, so as to “boost market expectations and confidence,” he said. “[We should] let private companies play an important role in stabilizing employment and increasing [government] income,” he said.

☆ China to restructure sci-tech ministry to achieve self-reliance faster
▼ + stars: | 2023-03-07 | by ( Eduardo Baptista | ) www.reuters.com time to read: +3 min

BEIJING, March 7 (Reuters) - China will restructure its science and technology ministry to channel more resources to achieving important breakthroughs, with the goal of moving faster towards self-reliance, according to a State Council plan submitted to parliament on Tuesday. The restructuring of the central government ministry was included in a reform plan of state institutions that the State Council, China's cabinet, submitted to the National People's Congress (NPC), which is meeting this week. The institutional changes revealed on Tuesday will reduce the scope of the science and technology ministry as previous responsibilities, such as building high-tech industrial development zones and driving technological progress in rural areas, will be re-distributed across several ministries. "Strengthen the Ministry of Science and Technology's strategic planning ... optimise the whole-process management of scientific and technological innovation," the cabinet said in the plan. Reporting by Eduardo Baptista; Editing by Andrew Heavens, Robert BirselOur Standards: The Thomson Reuters Trust Principles.

☆ JPMorgan Chase CEO Jamie Dimon says Ukraine invasion is a top economic concern
▼ + stars: | 2023-03-06 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +3 min

New York CNN —The war in Ukraine and US-China relations are two of JPMorgan Chase CEO Jamie Dimon’s largest economic concerns, he said Monday. “The thing I worry the most about is Ukraine,” he told Bloomberg Television in an interview Monday morning. “This is the most serious geopolitical thing we’ve had to deal with since World War II,” Dimon said Monday, also highlighting the war’s impact on relations with China. Dimon said JPMorgan Chase is taking an active role in improving the relationship between the United States and China by advising and engaging with both governments on keeping cordial relations. Dimon added that he believes the war in Ukraine could continue for years to come.

☆ China's economy, government revamp in focus as parliament set to open
▼ + stars: | 2023-03-04 | by ( Tony Munroe | ) www.reuters.com time to read: +3 min

REUTERS/Thomas PeterBEIJING, March 5 (Reuters) - China opens its annual parliamentary session on Sunday, with the National People's Congress (NPC) set to implement the biggest government shakeup in a decade as Beijing confronts a host of challenges and looks to revive its COVID-battered economy. During the NPC, former Shanghai party chief Li Qiang, a longtime Xi ally, is expected to be confirmed as premier. "We might see institutional changes that indicate an elevated importance of, and more party control over, the financial regulatory system," Goldman Sachs analysts wrote. On the opening day of the NPC, China is also likely to announce its central and military spending budgets. Reporting by Tony Munroe; Editing by Himani SarkarOur Standards: The Thomson Reuters Trust Principles.

[1/7] Farmer Wang Zhanling sits next to his wife in their house in Quansheng village, Heilongjiang Province, China, February 8, 2023. The state-run Chinese Academy of Sciences sees the pension system running out of money by 2035. "If the pension system does not change, this is unsustainable," said Xiujian Peng, senior research fellow in the Centre of Policy Studies at Victoria University in Australia. The province has the lowest birth rate in China, with just over 100,000 births in 2021 and 460,000 deaths. Many experts, including Macquarie's chief China economist Larry Hu, suggest implementing a unified national pension system, backstopped by the more resourceful central government rather than cash-strapped local administrations.

Warburg has approached a number of Chinese investors including local government-backed entities and state-backed financial institutions for the new yuan fund, the people with knowledge of the matter said. The U.S. private equity (PE) firm plans to primarily focus on the healthcare and industrial technology sectors in China with the yuan fund, one of the people said. "RMB (yuan) funds are relatively independent and self-sustainable," he said. Sensitive sectors will remain closed to global private equity groups even if they raise yuan funds, she added. Emerging markets-focused Affirma Capital is also targeting a 2 billion yuan raising in its debut fund and reached first close at 1.5 billion yuan by end-2022, a person close to the situation said.

Hidalgo, just outside Mexico City, is hundreds of miles from the border yet land and labor costs are lower. The United States and Canada have formally entered a trade dispute over Mexico's energy policy. It remains unclear exactly what Tesla's investment in Mexico will look like and what the company plans to produce in the country. Yet Mexico's capacity for a nearshoring boom has been held back by Lopez Obrador, particularly his energy policies, analysts said. Reporting by Diego Ore and Daina Beth Solomonin Mexico City Additional reporting by Kylie Madry in Mexico City Editing by Stephen Eisenhammer and Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

☆ Singapore drops pre-departure requirements for travelers, further eases mask rules
▼ + stars: | 2023-02-09 | by ( Goh Chiew Tong | ) www.cnbc.com time to read: +3 min

Changes to travelAll travelers entering Singapore via air or sea must still to submit a health declaration before or on arrival, said the ministry. In addition to removing the need to show proof of a negative pre-departure test, short-term visitors will also not be required to buy Covid travel insurance. Previously, non-fully vaccinated visitors were required to test negative for Covid within 2 days prior to their departure for Singapore. Singapore opened vaccinated travel lanes in April 2022 to facilitate safe resumption of international travel. Further Covid measures were eased at the end of August, as authorities removed indoor mask requirements and allowed non-fully vaccinated travelers to skip quarantine on arrival.

☆ Walter Mosley Thinks America Is Getting Dumber
▼ + stars: | 2023-02-06 | by ( David Marchese | ) www.nytimes.com time to read: +17 min

Mamadi Doumbouya for The New York Times Talk Walter Mosley Thinks America Is Getting DumberWalter Mosley is best known as one of contemporary literature’s pre-eminent crime novelists, but he’s actually four or five different writers rolled into one. You have to tell stories about real people experiencing it and not real people with a Ph.D. People who are not stupid but ignorant, who don’t know things about the world. There are people who don’t know how to spell, they don’t know how to think. You have these people coming out into the world, and they don’t know what to do. That’s going to happen.

☆ More than 13,000 Nigerian residents take Shell to court over oil spills
▼ + stars: | 2023-02-02 | by ( Sam Meredith | ) www.cnbc.com time to read: +3 min

Residents fetch water from a well contaminated by oil pollution at Ogale Town, Eleme in southeast Nigeria, on June 13, 2015. Afp Contributor | Afp | Getty ImagesOver 13,000 residents from two Nigerian communities are seeking damages from Shell in the High Court in London, calling for the energy giant to clean up residual oil and compensate devastating environmental damage. Shell, which reported its highest-ever annual profit of nearly $40 billion on Thursday, argues that the communities have no legal standing to enforce clean-up of the oil spills. Shell said in 2021 that it plans to leave the Niger Delta and sell its onshore oilfields and assets after 80 years of operations. "It appears that Shell is seeking to leave the Niger Delta free of any legal obligation to address the environmental devastation caused by oil spills from its infrastructure over many decades," Leader said.

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