China’s cabinet has slowed the accumulation of debt in 12 regions
China’s cabinet has restricted the amount of new debt local governments can take on and the projects they can start with state funding in 12 highly indebted regions. Only specific projects, including those endorsed by the national government, will be permitted, while other projects like power plants and train terminals will not be approved. The…
Automaker aims to invest on electric by 2025
GM has surpassed Q3 revenue and profit projections but removed 2023 projections due to labor strike uncertainty. CFO Paul Jacobson said the automaker was withdrawing its profit projection of $12 billion to $14 billion in EBIT and $9.3 billion to $10.7 billion in net income attributable to stockholders. GM’s top-line revenue for Q3 was $44.13…
Oil prices stable due to dismal economic data
Oil prices remained flat on Tuesday due to dismal economic data from Germany, the euro zone, and Britain. Eurozone economic activity fell unexpectedly, predicting a recession. German figures indicated a recession, while Britain’s firms reported another drop in activity. The International Energy Agency predicted a peak in fossil fuel use by 2030. Negotiations to resolve…
China new finance minister focus on boosting fiscal stimulus
China has nominated Lan Foan as finance minister, a technocrat with limited central government experience, to boost fiscal stimulus and resuscitate the economy. Lan, who previously led Shanxi’s party, joined the finance ministry in 2016 and became party chief in December 2022. China’s upper parliament approved a fourth-quarter issue of 1 trillion yuan ($137 billion)…
Microsoft invested $10 billion in OpenAI
Wall Street will scrutinize Microsoft’s Q2 earnings to gauge the impact of its AI investments on its Azure cloud computing sector. Analysts predict revenue to reach $54.5 billion, a 9% increase from Q4 2023. Microsoft invested $10 billion in OpenAI and released Copilot apps for Outlook, Windows 11, and Microsoft 365. Analysts predict $18.3 billion…
Long-term Treasuries remain attractive to bond investors
Vanguard is optimistic about longer-dated Treasuries, anticipating the Federal Reserve will end raising rates and the economy will decelerate next year. The world’s second-largest asset manager believes long-term bonds remain attractive despite a “cruel summer” for bond investors. The Fed’s decision to decrease borrowing costs could lower the price of shorter-term Treasuries, which are more…
Chevron and Hess merger to get higher shareholder returns
The merger between Chevron and Hess for $53 billion in shares demonstrates the US energy companies’ pursuit of lower-risk fossil sources and higher shareholder returns. The deal increases competition between Chevron and Exxon, and makes them partners in Guyana’s burgeoning oilfields, estimated to produce 1.2 million barrels per day by 2027. The deal follows Exxon’s…
China and the Philippines boats clashed and causing a collision
Chinese vessels blocked Philippine boats in the South China Sea, causing a collision. The incident occurred around the Spratly Islands’ Second Thomas Shoal. China’s coastguard often blocks resupply operations to troops. Manila denounced China’s dangerous blocking manoeuvres and claimed it violated Philippine sovereignty. The US supports the Philippines and denounces China’s disruption of a legal…