Connect with us

World

Credit Suisse earnings Q1 2021

Published

on

A Credit Suisse logo in the window of a Credit Suisse Group AG bank branch in Zurich, Switzerland.

Bloomberg | Bloomberg | Getty Images

LONDON — Credit Suisse reported Thursday a net loss of 252 million Swiss francs ($295 million) at a time of increased pressure on the bank.

The bank said the loss reflected a “significant charge with respect to the US-based hedge fund matter in 1Q21, offsetting positive performance across wealth management and investment banking.”

The Swiss lender warned of heavy losses earlier this month after a scandal involving Archegos Capital, a U.S. based hedge fund, which collapsed after taking on too much risk. Credit Suisse said it took a hit of 4.4 billion Swiss francs as a result.

In addition, investment bank CEO Brian Chin and chief risk and compliance officer, Lara Warner, both stepped down. The executive board decided to waive bonuses for the 2020 year, and also cut the proposed dividend.

Regulators in the U.S. and Switzerland have asked Credit Suisse for more information on the collapse of Archegos, according to the Wall Street Journal.

In March, Credit Suisse also adjusted its asset management business and suspended bonuses after the collapse of Greensill Capital, a British supply chain finance firm.

This is a developing news story and will be updated shortly.

Source link

World

China travel bookings soar during May Labor Day holiday as Covid eases

Published

on

Visitors walk along the Badaling section of the Great Wall in Beijing, China, on Tuesday, May 4, 2021.

Yan Cong | Bloomberg | Getty Images

BEIJING — Millions of Chinese rushed to travel during the five-day Labor Day holiday, in yet another sign of gradual recovery in domestic consumption.

May 1 to 5 marked the “hottest” public holiday for leisure travel since the coronavirus pandemic, Chinese travel booking site Trip.com said in a statement Wednesday translated by CNBC. The reemergence of Covid-19 on the outskirts of Beijing earlier this year prompted local authorities to restrict travel during the Spring Festival in February.

Labor Day holiday bookings for hotels, car rentals and other travel more than tripled from the same period a year ago, and rose more than 30% from 2019, Trip.com said, without disclosing dollar amounts. Shanghai Disney Resort was among the top 10 destinations, including for those 21 years old and younger, according to Trip.com.

Chinese consumers also spent 1.67 billion yuan ($260 million) at the movies during the holiday, primarily on domestic films, according to ticketing site Maoyan.

Overall, a record 230 million trips were taken within the country during that period, an increase of nearly 18% from 2019 levels, according to figures from China’s Ministry of Culture and Tourism.

However, total spending of 113.23 billion yuan ($17.48 billion) fell short of 2019’s expenditure by about 4 billion yuan, the data showed.

At that level, spending per capita during the holiday was about 75% of what it was in 2019, said Zhiwei Zhang, chief economist at Pinpoint Asset Management. “Overall the economic trend continues to improve, but part of the service sector (is) not yet back to the pre-Covid level.”

Spending by individual consumers has lagged the recovery in China’s economy since Covid-19 temporarily forced more than half the country to shut down in early 2020. Retail sales fell last year despite overall GDP growth, before surging in the first quarter of 2021.

International travelers turn to Hainan

The rush to travel domestically comes as quarantine requirements and travel bans keep most Chinese from venturing overseas.

Chinese international travel plunged 87% last year and will not likely return to pre-pandemic levels until the second quarter of 2023, consultancy Oliver Wyman said in a report last week.

That means billions of dollars not spent overseas can potentially be spent at home or saved for future purchases, the report said, pointing out that Chinese consumers spent $245 billion abroad in 2019.

The analysis found that nearly 60% of those travelers are turning to the southern tropical island province of Hainan, which has expanded its duty-free shopping centers in the last few years.

For high-end luxury brands, Hainan will become much more attractive to them if in the future they can open their own stores instead of through a duty-free operator.

Imke Wouters

Partner at Oliver Wyman

Duty-free sales in Hainan topped 700 million yuan from May 1 to 4, according to state media, citing the latest available figures from the local customs agency. For comparison, an eight-day holiday in October recorded 1.04 billion yuan in Hainan’s duty-free sales.

“May is seen as the first (moment when) you can really see the true potential of Hainan, without any travel restrictions,” Oliver Wyman partner Imke Wouters said in a phone interview Thursday.

However, she pointed out that right now brands need to work with duty-free centers in Hainan. As a result, profitability could be up to 50% less than it would be through their own stores on the mainland.

“For high-end luxury brands, Hainan will become much more attractive to them if in the future they can open their own stores instead of through a duty-free operator,” Wouters said, noting government policy is moving toward individual store ownership.

Source link

Continue Reading

World

Nio plans to start delivering cars to Norway in September

Published

on

Bin Li, CEO of Chinese electric vehicle start-up NIO Inc., celebrates after ringing a bell as NIO stock begins trading on the floor of the New York Stock Exchange (NYSE) during the company’s initial public offering (IPO) at the NYSE in New York, September 12, 2018.

Brendan McDermid | Reuters

BEIJING — Chinese electric car start-up Nio announced Thursday it plans to begin deliveries in Norway in September, for the company’s first entry into a market outside China.

Nio plans to first launch its ES8 SUV to the new market this year, followed by its ET7 sedan in 2022. The company anticipates expanding its local staff of 15 people to 50 by the end of the year.

The Norway venture will begin with a flagship “Nio House” store in Oslo that’s slated to open in the third quarter. Four smaller showrooms are set to open in other parts of Norway next year.

More than half the new cars sold in Norway last year were battery-powered electric vehicles, according to the Norwegian Road Federation. The 54.3% proportion marked a rapid increase from 42% the prior year.

Chinese EV startup Nio aims to become the Tesla of China

Electric vehicles have dominated new passenger car sales in Norway for the last three years, with Volkswagen‘s Audi e-tron leading last year, Tesla‘s Model 3 in 2019 and Nissan‘s Leaf in 2018, according to the federation.

Other Chinese electric car makers are already selling to Norway. U.S.-listed Xpeng delivered 100 units of its G3 electric SUV in December.

Later this year, Xpeng hopes to see how customers in northern Europe respond to its P7 electric sedan, Chairman and CEO He Xiaopeng said on the sidelines of the the Shanghai auto show last month. He is recruiting new staff and plans to set up a company in the region, before looking at western and eastern Europe.

Source link

Continue Reading

World

Cases, fatalities rise as oxygen shortage persists

Published

on

A Covid-19 coronavirus patient breathes with the help of oxygen provided by a Gurdwara, a place of worship for Sikhs, under a tent installed along the roadside in Ghaziabad on May 6, 2021.

Prakash Singh | AFP | Getty Images

India once again reported a record number of cases and fatalities on Thursday as it faces a devastating second wave of Covid-19 infections that has pushed its health-care system to the brink of collapse.

Health ministry data showed there were 412,262 new reported cases of infections over a 24-hour period, pushing the total tally to over 21 million — days after crossing the 20 million mark on Tuesday.

India also reported its highest daily death toll, with 3,980 fatalities. But media reports suggest that the death rate is being underreported.

Prime Minister Narendra Modi’s government is facing criticism for allowing large crowds to gather for election rallies and religious festivals earlier this year as well as for failing to anticipate or prepare for a second wave.

India’s oxygen crisis

“That means essentially the requirement for oxygen (is) also moving up,” he said Tuesday on CNBC’s “Street Signs Asia.

“Typically an ICU requires two-and-a-half to three times the amount of oxygen a ward or a patient in a bed requires. So, as criticality moves up, as mortality moves up, you are going to see the requirement of oxygen also move up,” he said.

Soi explained that Max Healthcare conducts about 4,000 RT-PCR tests in the Delhi area per day and about a week ago, those Covid-19 tests had a positivity rate of over 50%, which has since come down to about 31%.

“So what you are going to see right now is people who were infected about seven, eight days ago, coming into hospitals,” he said, adding these patients need a host of medicines and support, including oxygen.

Courts step in

On Wednesday, India’s Supreme Court ordered the central government to present a comprehensive plan by Thursday outlining steps it will take to meet medical oxygen requirements for hospitals in Delhi, including sources of supply and transport provisions. The country’s top court also stayed a contempt notice issued by the High Court of Delhi on May 4 to the central government for not complying with its orders to supply sufficient oxygen to hospitals in Delhi.

Delhi high court justices Vipin Sanghi and Rekha Palli noted on Tuesday that hospitals and nursing homes have had to reduce the number of beds offered because they are unable to service their existing capacities due to a shortage of medical oxygen.

The National Capital Territory of Delhi, which includes India’s capital New Delhi, is one of several areas that saw a rapid surge in cases, forcing the local government to step up restrictions to try and break the chain of transmission.

Logistics issue

India has sufficient oxygen available, but the main issue lies around logistics, according to Siddharth Jain, director of Inox Air Products, one of India’s prominent industrial and medical gases manufacturers.

Jain told CNBC’s “Street Signs Asia” on Wednesday that the country’s oxygen manufacturers have stepped up production by more than 30% in recent weeks. He said over 9,000 tons of oxygen is available in India per day while consumption of medical oxygen is slightly higher than 7,500 tons.

Source link

Continue Reading

Trending