Connect with us

World

U.S.-China relations are ‘still deteriorating,’ says Max Baucus

Published

on

U.S.-China relations are getting worse and have not “reset” under President Joe Biden in the way that many had previously expected, said Max Baucus, a former American ambassador to China.

“The situation unfortunately is generally still deteriorating,” Baucus told CNBC’s “Squawk Box Asia” on Friday.

“I think a lot of people thought with the election of Joe Biden, that might end the free fall, that might be the bottom and things would slowly come back to normal — but that has not really happened,” he added.

Tensions between the U.S. and China grew rapidly under former U.S. President Donald Trump, who slapped higher tariffs on Chinese goods and placed some Chinese companies on a blacklist that limit their business dealings in the U.S.  

I don’t think Xi Jinping wants war, he knows that if he tries to militarily invade Taiwan there’s a big risk the United States will retaliate.

Max Baucus

former U.S. ambassador to China

U.S.-China clash over Taiwan

One area where U.S.-China tensions are playing out is Taiwan, a democratic and self-ruled island in North Asia.

The Chinese Communist Party government in Beijing claims Taiwan as a runaway province that must one day be reunited with the mainland — using force if necessary. The CCP has never ruled Taiwan.

Read more about China from CNBC Pro

Trump broke with decades of American foreign policy by moving the U.S. closer to Taiwan during his term. The Biden administration has continued on that trajectory, with the State Department issuing new guidelines in April to enable U.S. officials to meet more freely with their Taiwanese counterparts.

Such moves anger Beijing because the CCP views Taiwan as having no rights to conduct diplomacy of its own.

Baucus said the risk of a U.S.-China military clash over Taiwan is increasing but he doesn’t think the two sides would go to war.

“I don’t think Xi Jinping wants war, he knows that if he tries to militarily invade Taiwan there’s a big risk the United States will retaliate,” said the former ambassador, referring to China’s president.

“I think frankly, the risk, the likelihood is higher that the U.S. will retaliate now than it might have been a couple or three years ago because tensions between the two countries, the U.S. and China, (are) just so great,” Baucus added.

Source link

World

Gen X workers may face the biggest unemployment crisis: Generation

Published

on

Gen X workers, who are-, may be bearing the brunt of a global unemployment crisis as the pandemic adds to existing challenges for older workers, according to a new report.

Rapid digital adoption during the pandemic has accelerated the automation of jobs and worsened underlying ageism, making it harder for mid-career workers to secure roles, according to the report from Generation, a non-profit employment organization.

In a global study entitled “Meeting the world’s midcareer challenge,” the firm found that entry-level and intermediate workers between the age of 45 and 60 face increased barriers due to biases among hiring managers, as well as reluctance among workers to learn new skills.

Generation’s CEO said the report had, for the first time, “put a number on ageism.”

It’s very clear that once you reach a certain age, it just becomes much harder to access a job opportunity.

Dr Mona Mourshed

CEO, Generation

“This is a demographic that is absolutely in need and it’s very clear that once you reach a certain age, it just becomes much harder to access a job opportunity,” Mona Mourshed told CNBC Make It.

Ageist misconceptions prevail

The study, which was conducted between March and May 2021, surveyed 3,800 employed and unemployed people from 18 to 60 years old and 1,404 hiring managers across seven countries.

Despite the varied international jobs landscape — from the U.S. to the U.K. and India to Italy — the findings were broadly the same: 45- to 60-year-olds are the most overlooked employee bracket. Indeed, for the past six years, mid-career individuals have made up a consistently high percentage of the long-term unemployed.

Most notably, the research found that hiring managers across the board considered those who are 45-years-old and above to be the worst cohort in terms of application readiness, fitness and previous experience.

Among their top concerns were a perceived reluctance among older workers to try new technologies (38%), an inability to learn new skills (27%), and difficulty in working with other generations (21%).

It comes in spite of evidence that older workers often outperform their younger peers. Indeed, almost nine in 10 (87%) hiring managers said their hires who are 45 years and above have been as good as — or better — than younger employees.

Mourshed said the findings highlight underlying biases at play in the workplace.

“It is often the case that like identifies with like when it comes to ‘isms,'” she said.

For instance, she explained, there is a tendency among hiring managers to opt for hires in their age group. Meanwhile, C.V.-based interviews can make it hard for candidates to demonstrate their skills, she added.

Re-engaging a lost workforce

Training could provide one solution to the issue. Still, the report also highlighted a reluctance to pursue training among jobseekers who are 45 years and above.

More than half (57%) of entry-level and intermediate-level job seekers expressed a resistance to reskilling, while just 1% said training increased their confidence when looking for work. Often, that is due to negative experiences of education, conflicting personal duties, and lack of available programs and financial support for mid-career workers, said Mourshed.

Given that it is 2021, intergenerational workforces must be a reality.

Dr Mona Mourshed

CEO, Generation

Source link

Continue Reading

World

More money chases Indian tech start-ups as investors shun Chinese names

Published

on

Zomato food delivery partners is seen on a road in Kolkata , India.

Debarchan Chatterjee | NurPhoto | Getty Images

At a time when investors are selling Chinese technology stocks, more money is chasing Indian start-ups.

Shares of food delivery app Zomato soared as much as 82% in their debut Friday on the National Stock Exchange of India. The initial public offering was priced at 76 rupees per share, or a little more than $1 per share. The stock opened more than 50% higher, valuing the company at about 910 billion rupees or $12.2 billion.

Jayasankar Venkataraman, head of equity capital markets at Kotak Investment Banking, said before trading started that the IPO was oversubscribed for institutional and retail investors.

“I think Zomato’s successful IPO might open the floodgates,” said Anirudh Suri, founding partner of the India Internet Fund. Suri has invested in 20 start-ups across India.

Tech giant Uber sold its India food delivery business to Zomato last year in an all-stock transaction that gave the U.S. company a stake. Zomato’s other prominent backers include Indian internet company Info Edge, Alibaba-affiliate Ant Group and Singapore state investor Temasek.

Sources told CNBC that after listing in India, Zomato has plans to make its debut in the U.S.

As to which companies will be next to go public, Suri said he’s betting on Paytm, which claims among its backers Japan’s SoftBank, Ant Group and Berkshire Hathaway.

India payments company Paytm recently filed its IPO paperwork with a goal of raising $2.2 billion in its public debut this November.

Overall, Indian start-ups raised $12.1 billion in funding in the first six months of the year, compared with the $5.3 billion raised during the same period last year, according to Venture Intelligence.

What’s behind the recent pivot to India?

Somesh Dash, general partner at venture capital firm IVP, said that investors are waking up to the idea that China no longer has the best growth story in town.

“China doesn’t have a lot of young people. India does. What the Indian economy presents is a growing middle class and a dynamic workforce: one of the largest populations in the world. It’s very attractive from a longer-term perspective,” Dash said.

Stock picks and investing trends from CNBC Pro:

Amit Anand, co-founder of exchange-traded fund company NextFins, expects Indian tech IPOs to price at a premium multiple compared with Chinese companies, citing growth in internet penetration.

“Investors recognize the long runway for internet penetration. E-commerce penetration in India is 7% versus 25% in China. Smartphone penetration in India is about 30%, less than half of China’s 60%,” said Anand, who formerly worked for Axial Capital.

Anand and his partners at NextFins launched the Nifty India Financials ETF on the belief that investors will want more exposure to India’s secular growth story, especially as internet and smartphone penetration continue to rise. INDF’s assets have tripled since the beginning of the year and are up 50% since June.

“Investors are betting that as these people enter the workforce, they will consume more and need financial products like credit cards, mortgages and auto loans. That’s why e-commerce and fintech companies have been the primary recipients of venture capital investment in India,” noted Anand. With more tech companies going public in India, he now has plans to launch an ETF focused on Indian tech stocks.

“The tech indices in India currently track the large outsourcing companies; there is no way for investors in either India or the U.S. to target faster-growing internet companies,” he said.

Some of the country’s unicorns, those companies worth $1 billion or more, continue to raise additional rounds, capitalizing on the strong interest in India tech. Hotel start-up Oyo, backed by SoftBank, raised an additional $660 million. E-commerce platform Flipkart raised $3.6 billion at a mega-high valuation of $37.6 billion, the largest fundraise for an Indian company. Key investors include the Canada Pension Plan Investment Board and Walmart.

Like China, data privacy issues do exist in India. Last week, Indian regulators banned Mastercard from issuing new credit cards to customers in the country after not complying with data privacy rules. Key question venture investors are trying to answer are whether India’s government will carve out its own path or follow China’s lead on the topics related to regulation and overseas listings.

Source link

Continue Reading

World

Asia-Pacific stocks set for mixed start after Wall Street record close

Published

on

SINGAPORE — Shares in Asia-Pacific looked set for a mixed start after the major indexes on Wall Street sailed to record closing highs last week.

Futures pointed to a higher open for Japanese stocks. The Nikkei futures contract in Chicago was at 28,230 while its counterpart in Osaka was at 27,910. That compared against the Nikkei 225’s last close at 27,548.

Australian stocks, on the other hand, looked poised to open lower. The SPI futures contract sat at 7,335.0, against the S&P/ASX 200’s last close at 7,394.40.

On the economic data front, Singapore’s industrial production figures for June are set to be out at 1:00 p.m. HK/SIN.

Stock picks and investing trends from CNBC Pro:

On Friday, the Dow Jones Industrial Averaged closed above 35,000 for the first time ever while the S&P 500 jumped 1.01% to 4,411.79 and the Nasdaq Composite gained 1.04% to 14,836.99. Friday’s moves upward saw all three major indexes stateside at new closing highs.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.885 following a recent bounce from below 92.8.

The Japanese yen traded at 110.53 per dollar, weaker than levels below 110 seen against the greenback last week. The Australian dollar changed hands at $0.7368, above levels below $0.732 seen last week.

Here’s a look at what’s on tap:

  • Singapore: Industrial production for June

Source link

Continue Reading

Trending