China’s largest government interventions on property sector
Chinese authorities have reportedly urged Ping An Insurance Group to take a controlling interest in ailing Country Garden, the country’s largest private property developer. The State Council, led by Premier Li Qiang, has ordered the local government of Guangdong province to help Ping An save the company. Ping An’s Hong Kong-listed shares fell 5.4%, wiping…
Oil prices touch lowest level for almost a month
Crude oil prices have fallen to their lowest in three months, lowering inflation forecasts and bond yields. The fall is attributed to global demand uncertainties, record US output, and easing Gaza war supply concerns. Softer energy prices, a cooling job market, and rising credit card delinquencies have lowered bond market two-year inflation expectations to 2.2%,…
Bank funding became a reason on bank net income
Fineco, an Italian online bank, is expected to see a drop in its 2024 net financial income due to increased competition for bank funding. The bank’s government bond portfolio and lending-deposit rate differential are key profit measures. Deposit outflows in 2023 have forced Fineco to lower its full-year net interest income forecast. However, investment services…
Huawei AI chips ready to supply Baidu
Baidu, a leading Chinese AI firm, has purchased Huawei artificial intelligence chips, indicating US pressure is pushing China to adopt Huawei’s products over Nvidia’s. The order was placed in August ahead of new US government rules tightening chip and chip tool exports to China in October. Baidu bought 1,600 of Huawei Technologies’ 910B Ascend AI…
Europe’s economy slipped due to weak demand
Eurozone business activity increased last month due to weakening demand in the dominant services industry, signaling a recession in the 20-country currency union. Official figures showed the economy contracted 0.1% in the third quarter, and the final Composite Purchasing Managers’ Index (PMI) for October showed the union entered the last quarter of 2023 on the…
Tesla made a new breakthrough on electric car
Tesla is set to construct a 25,000-euro ($26,838) electric car at its Berlin facility, a significant breakthrough for the company, which aims for widespread adoption. The production start date is yet to be specified. High borrowing rates and high electric car prices are causing slow adoption in Europe and the US. Tesla must expand into…
Putin will run on presidential election in March
Russian President Vladimir Putin is set to run in the March presidential election, keeping him in power until 2030. This comes after Wagner’s armed rebellion and increased defense, armaments, and budget spending in regions. Putin’s advisers are preparing for his presence, and a coordinated hint is expected in a few weeks. Despite expectations from diplomats…
China depend on government bonds to stimulate economy
China’s new finance minister, Lan Foan, has announced plans to issue and use government bonds faster, focusing on improving efficiency and leveraging special bonds to boost the economy. The ministry will also release early 2024 local government debt quotas to meet local financial needs. The appointment comes as the central government relies on debt and…