Connect with us

World

ECB’s Benoit Coeure says a trade war would have ‘damaging’ consequences for the global economy

Published

on

Benoit Coeure, executive board member of the European Central Bank (ECB).

Alex Kraus | Bloomberg | Getty Images

Benoit Coeure, executive board member of the European Central Bank (ECB).

This is a breaking story, please check back later for more.

The ECB took the first step towards policy normalization in early March. The central bank dropped its easing bias — the indication that it could increase bond purchases in both duration and size, in case the economic outlook deteriorated.

The decision gave more confidence to markets that the bank is slowly putting an end to the stimulus in the region.

ECB President Mario Draghi said at the time: “Incoming information… confirms the strong and broad-based growth momentum in the euro area economy, which is projected to expand in the near-term at a somewhat faster pace than previously expected.”

The ECB said in March that it expects real gross domestic product (GDP) to hit 2.4 percent in 2018, 1.9 percent in 2019 and 1.7 percent in 2020. For now, the quantitative easing program will continue at the pace of 30 billion euros ($ 36.70 billion) per month until September.

However, recent developments on the euro could change the bank’s policy. The currency has been on an upward trend since the start of the year, raising fears it might get too strong and reduce the attractiveness of exports from the euro area.

Draghi said in March that the ECB is monitoring the exchange rate “with regard to their possible implications for the inflation outlook.”

Source link

World

U.S. reports more than 83,000 coronavirus cases, record daily total, as experts warn of difficult winter

Published

on

Continue Reading

World

Chinese fintech giant Lufax seeks up to $2.36 billion in U.S. IPO

Published

on

A logo of of Lufax website Lu.com, is seen at the company’s headquaters on May 28, 2020 in Shanghai, China.

Wu Jun | Visual China Group | Getty Images

GUANGZHOU, China — Chinese lending and wealth management firm Lufax is seeking up to $2.36 billion from a U.S. initial public offering (IPO).

Earlier this month, the Shanghai-headquartered firm, which is backed by financial giant Ping An Group, said it planned to list on the New York Stock Exchange under the ticker “LU.”

It has now released details on pricing. Lufax said it will issue 175,000,000 American depositary shares (ADS) which will be priced between $11.50 and $13.50 per share.

At the top end of the range, Lufax’s offering would be valued at $2.36 billion.

Chinese technology companies have been looking to take advantage of a rebound in stock markets to go public, including on Wall Street, despite the geopolitical tensions between the U.S. and China. 

Electric carmakers Xpeng Motors and Li Auto both went public in the U.S. earlier this year

Lufax’s New York listing comes as rising tensions between the U.S. and China threaten American-listed Chinese firms. Lawmakers in Washington are pushing for greater scrutiny of Chinese companies through proposed legislation that threatens to delist some firms in the U.S. 

Source link

Continue Reading

World

Huawei’s growth slows sharply as U.S. sanctions bite

Published

on

GUANGZHOU, China — Huawei’s revenue growth slowed sharply in the third quarter while its margin dipped as U.S. sanctions disrupt its business.

Revenue for the September quarter came in at 217.3 billion yuan ($31.91 billion), up just 3.7% from the 209.5 billion yuan recorded in the same period last year.

For the first nine months of the year, revenue totaled 671.3 billion yuan ($98.57 billion), up 9.9% from the 610.8 billion yuan reported in the same period last year. That is a significant slowdown in growth. In the first nine months of 2019, Huawei’s revenue growth was 24.4%

Meanwhile, Huawei’s net profit margin was 8% for the first nine months of the year, down from 8.7% in the same period last year.

Washington’s sanctions are clearly hurting the Chinese technology giant. Last year, Huawei was put on a U.S. export blacklist known as the Entity List. Google cut ties with Huawei meaning the Chinese firm’s smartphones could no longer use licensed Android mobile operating system software. That has hurt Huawei’s smartphone sales outside of China, while its domestic market has thrived.

Huawei did not release a breakdown of what parts of its business contributed to revenue growth. Earlier this year, Huawei said that its consumer business, which includes its smartphones, was responsible for nearly all of the $12 billion shortfall in revenue it saw in 2019 versus its own targets.

For the first three quarters of 2020, Huawei said the results “basically met expectations.”

“As the world grapples with COVID-19, Huawei’s global supply chain was put under intense pressure and its production and operations saw increasing difficulties,” the company said in a press release.

“During the release, the company stated it would do its best to find solutions, to survive and forge forward, and to fulfill its obligations to customers and suppliers.”

Huawei is now facing even greater challenges. Earlier this year, Washington slapped further sanctions on Huawei which has threatened to cut off supplies of semiconductors from its main supplier TSMC. This could cripple its smartphone business, analysts previously told CNBC. Huawei has very few options to get around these sanctions.

Source link

Continue Reading

Trending