DIRS.INFO The most relevant business & tech news

☆ Protests leave China facing a terrible trilemma
▼ + stars: | 2022-11-28 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +5 min

Such behaviour undermines arguments that abandoning Xi’s zero-Covid policy will instantly stimulate economic activity. Even before factoring in Beijing’s response to the unrest, the International Monetary Fund expects a measly 3.2% GDP growth for China this year. Covid-19 cases began spiking in China in early November following a week-long public holiday. The government reported 40,347 new infections for Nov. 27 in an update issued Nov. 28. Beijing announced 20 relaxations of the country’s pandemic policy on Nov. 11, including shorter quarantine periods and more narrowly targeted lockdowns.

☆ Breakingviews: Protests leave China facing a terrible trilemma
▼ + stars: | 2022-11-28 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +5 min

HONG KONG, Nov 28 (Reuters Breakingviews) - Officials’ muddled response to spiking Covid cases has set off three consecutive days of demonstrations spanning cities and social classes. Such behaviour undermines arguments that abandoning Xi’s zero-Covid policy will instantly stimulate economic activity. Covid-19 cases began spiking in China in early November following a week-long public holiday. The government reported 40,347 new infections for Nov. 27 in an update issued Nov. 28. Beijing announced 20 relaxations of the country’s pandemic policy on Nov. 11, including shorter quarantine periods and more narrowly targeted lockdowns.

ATHENS, Nov 28 (Reuters Breakingviews) - There will be no joy if countries get help for climate damage from a fund promised at COP27, but the planet still fries. Call this a country’s “above average emissions“. When you run the numbers from 1992 to 2019, America is the biggest polluter, responsible for 44% of all the “above average emissions”. DYNAMIC FORMULAIt seems fair to look at above average emissions to date when judging who should pay for a current climate disaster, such as the flooding in Pakistan. If one froze the formula on the basis of above average emissions up to now, countries wouldn’t have an incentive to cut their pollution.

HONG KONG, Nov 23 (Reuters Breakingviews) - A Hong Kong stock market debut puts Jakarta at the centre of China’s electric-car boom. Lygend Resources & Technology (2245.HK), a Chinese nickel trader, is looking to raise up to $594 million in an initial public offering to expand in Indonesia. Lygend both trades and produces nickel products, essential for stainless steel and batteries. Around a fifth of the world’s nickel resources are located in the country, which accounted for nearly 40% of ore unearthed last year, according to the company’s prospectus. Hong Kong CATL is the largest cornerstone investor, according to the prospectus.

That puts Hong Kong in a league of its own. The competitive tension between Hong Kong and Singapore is greater than ever. The danger is that Hong Kong’s new embrace of virtual assets will set up a regulatory race to the bottom, even if FTX’s collapse means it might happen at a slower pace. The policy statement notes that retail investors in other markets have been granted exposure to virtual assets including through exchange-traded products. Column by Thomas Shum in Hong Kong, Pranav Kiran in Bengaluru.

☆ COP27 deal is a blessing in a very good disguise
▼ + stars: | 2022-11-21 | by ( George Hay | ) www.reuters.com time to read: +4 min

SHARM EL-SHEIKH, Egypt, Nov 21 (Reuters Breakingviews) - The world’s premier forum for combatting climate change concluded in Egypt’s Sharm El-Sheikh on Sunday with an inadequate agreement to reduce global greenhouse gas emissions. At Glasgow’s COP26 a year ago, the world’s nearly 200 nations promised to update their decarbonisation plans in 2022. Pessimists will accurately stress that a newly agreed loss and damage fund to pay off affected countries is just an empty bucket – the details will be determined later. At COP26 it was obvious a perceived lack of generosity from richer nations was holding back efforts to mitigate and adapt to climate change. The commitment to establish a dedicated “loss and damage” fund left many of the most controversial decisions on how it might work until next year, including who should pay into it.

☆ Messy money manager merger goes from bad to worse
▼ + stars: | 2022-11-21 | by ( ) www.reuters.com time to read: +2 min

MELBOURNE, Nov 21 (Reuters Breakingviews) - Rob Adams must be wishing he could turn the clock back eight months. That’s when the boss of Australian fund management icon Perpetual (PPT.AX) was readying his first tilt for rival Pendal (PDL.AX). Whatever lies behind Paul Skamvougeras’ decision to quit as Perpetual’s Head of Equities, losing a key executive right on the eve of a merger is awkward. And shareholders remain unconvinced the Pendal deal is a certainty as its stock trades 11% below the offer price. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Investors ignore China Covid spike at their peril
▼ + stars: | 2022-11-18 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +4 min

HONG KONG, Nov 18 (Reuters Breakingviews) - The blistering relief rally underway in Chinese equities is understandable. Most of China’s trading partners have moved on to living with the virus, but Xi still aspires to keep it out. New cases have officially multiplied from roughly 1,000 per day in October to 25,353 on Thursday. In the second, Covid-19 finally runs wild in China, killing the unvaccinated elderly as it did in Hong Kong earlier this year. The Hang Seng China Enterprises Index in Hong Kong has risen nearly 30% in the past 14 trading days, Refinitiv data show, while the onshore benchmark CSI300 index gained 9%.

☆ Nio speeds then sputters on path to profitability
▼ + stars: | 2022-11-11 | by ( ) www.reuters.com time to read: +2 min

Yet costs accelerated at breakneck speed, causing its net loss to increase nearly five times from a year earlier to nearly $600 million, William Li’s $17 billion company reported on Thursday. Li told analysts he expects the automaker’s core business to break even in the fourth quarter of 2023, without offering detail. His optimism is undermined, however, by signs the company has lost control of costs. Nio can’t be blamed for rising battery costs or China’s zero-Covid campaign, as they are out of Li’s control. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Japan lives at the bleeding edge of good enough
▼ + stars: | 2022-11-11 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +6 min

Prime Minister Fumio Kishida says he will put innovation and scientific research at the “centre” of his policy push. That has meant pushing the $1.3 trillion Government Pension Investment Fund to get involved funding startups while removing policy bottlenecks. In the United States nearly a third of venture capital came from pensions whereas in Japan it is only 3%, according to a Nikkei report. However, the blunting of Japan is due more to its failure to deploy existing tools and best practices than invent new ones. Investing in the future makes for riveting speeches, but Japan Inc will get more from reinventing itself than inventing new things.

☆ Cathay’s outgoing boss can flash half-decent card
▼ + stars: | 2022-11-09 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Nov 9 (Reuters Breakingviews) - Cathay Pacific’s (0293.HK) new boss has reason for optimism. The outgoing chief executive can flash a half-decent report card. He navigated the Air China- (601111.SS) and Swire Pacific-backed (0019.HK) company through backlash from Beijing after employees took part in the 2019 Hong Kong protests. The $6 billion airline has seen a modest rebound of travellers since Hong Kong dropped hotel quarantine requirements. Since Tang’s appointment in August 2019, Cathay has logged a negative total return of 16%.

HONG KONG, Nov 9 (Reuters Breakingviews) - As automakers hesitate to invest in legacy motors, China’s Geely and France’s Renault (RENA.PA) are teaming up to supply gas guzzlers and more to rivals. Founder Li Shufu wants new-energy vehicles to account for 50% of Hong Kong-listed Geely Automobile’s (0175.HK) sales next year. Renault boss Luca de Meo says European car sales at the company he leads will be 100% electric by 2030. By hitching itself to Renault, Geely can shift gears faster to make the most of the window of opportunity. Together, they sold nearly 5 million cars last year, most of which were internal combustion engines.

☆ Japan baulks at U.S. car credits
▼ + stars: | 2022-11-07 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Nov 7 (Reuters Breakingviews) - Japanese carmakers don’t offer much in the way of new technology. Nonetheless, Tokyo is sounding the alarm on U.S. President Joe Biden’s plan, via his Inflation Reduction Act, to offer credits for electric vehicles, officially noting it threatens Japanese carmakers in America, and will discourage investment. A new three-page comment from the government on the credits mentions the word “allies” nine times and reminds Biden that Japanese car makers have been investing in the United States for more than 40 years. After Tokyo stood firm behind the United States in slapping financial sanctions against Russia this year, Washington highlighted the pair’s alignment. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Geely’s pricey cars can hope for some premium spin
▼ + stars: | 2022-11-01 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Nov 1 (Reuters Breakingviews) - Geely Automobile (0175.HK) is hiving off its young electric vehicle brand, Zeekr. The Hong Kong-listed group’s chairman and founder Li Shufu has a lot riding on how the deal is positioned as the valuations of its homegrown rivals crash. Parent Zhejiang Geely’s extensive experience building battery-powered models and the Volvo Car (VOLCARb.ST) owner’s track record overseas suggests the upstart can scale rapidly. So far so good: Zeekr, which launched only last year, sold nearly 40,000 premium cars in the first nine months. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

HONG KONG, Oct 27 (Reuters Breakingviews) - Tesla’s (TSLA.O) China price cut is a double-edged sword. China is increasingly important for Tesla and its investors, accounting for around a quarter of the electric-car maker’s top line in the first nine months of 2022. If sales reach nearly $120 billion next year as forecast by Refinitiv, a 9% cut would equate to around $2.5 billion in revenue. Chinese drivers, though, are starting to snub international badges in favour of home-grown alternatives, especially for electric and premium models. The company posted the price cuts on its China website on Oct. 24.

HONG KONG, Oct 24 (Reuters Breakingviews) - One day into President Xi Jinping’s precedent-breaking new term as leader of the ruling Communist Party, China’s financial markets are already in turmoil. Investors largely ignored rosier-than-expected GDP data to wipe almost 10% off the value of internet giants like Alibaba (9988.HK) and JD.com (9618.HK), amid a broader selloff. The government on Monday released a slew of delayed economic indicators after the Party Congress concluded on Sunday. They looked upbeat at first glance: GDP expanded 3.9% in the third quarter, up from the previous quarter’s 0.4%. Instead, he filled it with his own protégés including Beijing Party Chief Cai Qi and Shanghai Party Chief Li Qiang.

☆ BreakingViews: Xi’s contract with China needs more signatures
▼ + stars: | 2022-10-23 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +4 min

HONG KONG, Oct 23 (Reuters Breakingviews) - Xi Jinping has effectively secured a third presidential term at the just-concluded Chinese Communist Party conclave. His prize: a $16 trillion economy in a vulnerable state, dependent on American technology and facing a demographic crisis. China’s so-called chairman of everything has the power to relieve his people, but it’s unclear whether he has the will. The focus on weaning China from foreign software and semiconductors entails a vast duplication of effort. Follow @petesweeneypro on TwitterloadingCONTEXT NEWSChina’s Communist Party has elected President Xi Jinping as general secretary on Oct. 23, his third five-year term, according to Chinese state media.

☆ Casinos reap unexpected rewards in Singapore
▼ + stars: | 2022-10-21 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Oct 21 (Reuters Breakingviews) - Las Vegas Sands’(LVS.N) main Macau operations are ailing as China doubles down on zero-Covid. Yet Sands’ New York shares rose nearly 6% on Thursday after results revealed it is having better luck in Singapore. The Lion City now accounts for three quarters of Sands’ top line, up from 22% in 2019. By contrast, in Macau, formerly the world’s largest gaming hub, Sands suffered a loss of $152 million, as gaming revenue sunk to around 10% of 2019 levels. Singapore’s resurgence is surprising, given volumes at Changi airport were still only around half 2019 levels in July and August.

HONG KONG, Oct 20 (Reuters Breakingviews) - Automakers are hitting China’s growth limit. The industry achieved four consecutive months of double-digit growth in September when deliveries reached 2.3 million, 33% higher than a year earlier, per the China Association of Auto Manufacturers. Register now for FREE unlimited access to Reuters.com RegisterAs incentives expire, cars could follow a similar route to China’s commercial vehicles. Truck tales: A boom in China's sales of commercial vehicles proved to be short-livedBattery powered: China's strong EV sales mask slower deliveries of traditional motorsFollow @KatrinaHamlin on Twitter(The author is a Reuters Breakingviews columnist. CONTEXT NEWSChina's passenger car retail sales rose 33.2% in September from a year earlier to 2.3 million, according to data released by the China Association of Auto Manufacturers on Oct. 11.

☆ BYD catches investors at distracted driving
▼ + stars: | 2022-10-18 | by ( ) www.reuters.com time to read: +2 min

Investors drove the $93 billion company’s shares up around 5% on Tuesday after the company estimated its net profit nearly quadrupled in the quarter ending September compared to the same period last year. Its global market share overtook Tesla (TSLA.O) in the first eight months of the year, according to Bernstein analysts. Tuesday’s recovery suggests at least some investors now believe that was overdone. BYD is driving into new markets overseas and moving its once budget brand up-market. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Nissan wants to reduce Renault’s 43% holding to 15%, on par with Nissan’s stake in the French group, Reuters reports. Free cash flow will turn positive to the tune of 388 billion yen ($2.7 billion) by 2024, Morningstar estimates. He could, for example, ask shareholders to buy some of Renault’s Nissan stock. Or he could consider borrowing more; even after buying back a chunk from Renault, Nissan’s debt-to-EBITDA multiple could manage it. Nissan’s Renault reshuffle will drive a capital raise; he just needs to pick a route.

HONG KONG, Oct 10 (Reuters Breakingviews) - China’s lackluster Golden Week holiday this year casts a dark cloud over the economy. Domestic tourism sales during the country’s annual spend-and-travel blitz fell to $40 billion, less than half of pre-pandemic levels. Before the pandemic, domestic tourists splurged some 650 billion yuan ($91 billion) during the 2019 Golden Week – over a quarter more than during the Chinese New Year festival. Overall, domestic trips were just 422 million during Golden Week, down 18% from last year. China’s Golden Week has lost its shine.

☆ Pension fund blowup faces brutal second act
▼ + stars: | 2022-10-06 | by ( Aimee Donnellan | ) www.reuters.com time to read: +5 min

The Bank of England announced a 65 billion pound gilt-buying scheme to stabilise markets and rescue pension funds. Bailey’s move may have been too late to stop some pension funds from having to close out their hedges, like interest rate swaps or futures. The rate at which retirement payments are discounted will also fall, pushing up the pension fund’s future liabilities, but without a corresponding asset gain. Meanwhile, investors like Goldman Sachs are hoovering up cut-price stakes in private equity vehicles, which LDI funds are selling. They also held 78 billion pounds and 317 billion pounds in property and equities respectively.

☆ China battery maker debut is weaker than it looks
▼ + stars: | 2022-10-06 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Oct 6 (Reuters Breakingviews) - Shares of China’s CALB (3931.HK), which makes lithium batteries for electric cars, debuted flat following its $1.3 billion initial public offering. After pricing at the bottom of the range, cornerstone investors ended up with half of CALB’s total offering. One of the company’s suppliers, Tianqi Lithium (002466.SZ), bought into the deal too, reciprocating CALB’s investment in its own Hong Kong listing back in July. (By Katrina Hamlin)Register now for FREE unlimited access to Reuters.com RegisterFollow @Breakingviews on Twitter(The author is a Reuters Breakingviews columnist. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Singapore air cargo deal elevates its hub status
▼ + stars: | 2022-09-29 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, Sept 29 (Reuters Breakingviews) - Singapore is boosting its hub status as global recession fears loom. Aviation services group SATS (SATS.SI) is acquiring the world’s largest air cargo logistics provider for $2.2 billion from U.S. buyout firm Cerberus. The deal could ultimately lift trade flows through Singapore where aviation contributes more than 5% of GDP. SATS is part of the city-state’s industry trinity that includes its former parent Singapore Airlines (SIAL.SI) and Changi Airport. As global cargo activity nears pre-pandemic levels, Singapore is providing a strategic home to an asset that’s passed through multiple financial owners.

Search resuls for: "Katrina Hamlin"

25 mentions found