Bad Bank Huarong Tests China’s Financial System and Xi Jinping’s Control – Bloomberg — www.bloomberg.com
“Bailing out Huarong would reinforce the behaviour of investors who ignore risk, he said, while a default endangers financial stability if a “chaotic” repricing of the bond market ensues.”
“Huarong is “nowhere near” defaulting, the managing editor of Caixin Media wrote in an opinion piece on Saturday. Neither the Ministry of Finance nor Chinese regulators would allow it, Ling Huawei wrote.”
“We anticipate that foreign bondholders will be required to take a haircut, but it will be relatively small,” he said. “It will be designed to signal that investors should not assume government backing translates into carte blanche support.”
“How China deals with Huarong will have wide ramifications on global investors’ perception of and confidence in Chinese SOEs,” said Wu Qiong, a Hong Kong-based executive director at BOC International Holdings.”
Read more
Cars Are About to Get a Lot More Expensive Thanks to Inflation, Other Costs – Bloomberg — www.bloomberg.com
“Despite plant shutdowns, manufacturers across the globe posted blowout results in the first quarter. They’ve made fewer, arguably better, vehicles and have pushed margins higher.”
“Consider a car manufacturer with $100 billion in sales. A 10% decline in sales volume would push earnings before interest and tax down by 40%, the Boston Consulting Group has estimated.”
“If sales start slowing as prices tick up further, automakers risk not being able to make the margins they have raked in over the past few months.”
Read more.
Billionaire’s Yacht Holed Up in Fight Over London Divorce Award – Bloomberg — www.bloomberg.com
“Two years later, a London judge awarded Tatiana 41% of Farkhad’s assets. Farkhad called the 2016 divorce order illegitimate, and moved to Russia.”
“She has so far seized a single helicopter in the Isle of Man worth some 6 million pounds and is closing in on a private plane. Her chase has run into roadblocks, with assets frequently changing ownership and moved across jurisdictions.”
“While the trial was underway, much of the family’s wealth moved out of Farkhad’s name and into Liechtenstein trusts.”
“Luna, which — with its 50-member crew — has been languishing at its Dubai berth for more than two years, remains at the heart of their most intense fight.”
“Dubai’s local courts rejected its determination of a matrimonial dispute, after Farkhad argued it was incompatible with shariah law.”
“Dubai, where the Luna is stuck and slowly depreciating in value. One broker put her value as having fallen to $110 million.”
Living at AlJurf
Find Out More About Living at AlJurf
AlJurf Gardens harnesses nature’s raw beauty and combines it with refined heritage-inspired architecture and contemporary design to present a sanctuary of wellness and calm. Throughout the villa spaces, the refined and controlled raw beauty of nature is repeated in different scales, to showcase its exquisiteness across every typology of homes, gardens and courtyards.
Learn more.
Defiant Ghosn pins hopes on French probes to clear his name | Arab News — www.arabnews.com
“He said he voluntarily agreed to undergo days of questioning in Beirut next week by French magistrates investigating allegations of financial misconduct in France that led to the seizure of millions of euros of his assets. The outcome could result in preliminary charges being handed to him or in the cases being dropped.”
“Ghosn, who has French, Brazilian and Lebanese citizenship, contended he was the victim of a character assassination campaign led by Nissan with the complicity of the Japanese government, aided by accomplices in France.”
“Ghosn said he spent six months repairing his home after it was damaged in the massive explosion at a Beirut port last summer. And like other Lebanese, he said he has a substantial amount of money stuck in the banks after authorities clamped down on dollar currency withdrawals and transfers in October 2019.”
Read more.
Ethereum Closes In on Long-Sought Fix to Cut Energy Use Over 99% – Bloomberg — www.bloomberg.com
“Ethereum have been working for years to transition the blockchain to what’s known as a proof-of-stake system — which uses a totally different approach to secure the network that also eliminates the carbon emissions issue.”
“Bitcoin’s network currently uses more power per year than Pakistan or the United Arab Emirates, according to the Cambridge Bitcoin Electricity Consumption Index.”
“I’m definitely very happy that one of the biggest problems of blockchain will go away when proof of stake is complete,” said Buterin.”
Read more.
Wall Street’s ESG Gold Rush Has Conjured Up a ‘Green’ Bitcoin: Green Insight – Bloomberg — www.bloomberg.com
“One only has to look at the market for green bonds, where issuance this year is almost triple what it was a year ago.”
“There’s a market that doesn’t know it yet,” said Sheldon Bennett, chief executive officer of crypto miner DMG Blockchain Solutions Inc. His firm has had discussions with “multiple banks and financial institutions” that want to buy Bitcoins that can fulfill increasing demand for ESG compliance, he said.”
Read more.
Bank Hearing: Dimon and Other CEOs Prepared for Grilling But Got Squabbling – Bloomberg — www.bloomberg.com
“It was the first time that the top bankers all appeared before the Senate Banking Committee since the 2008 financial crisis — a rare opportunity for elected leaders to publicly address some of the country’s most influential business leaders.”
“As my fellow Bloomberg Opinion columnist Nir Kaissar pointed out a month ago, evidence suggests stakeholder capitalism is little more than a buzzword so far because companies over the past 10 years have boosted earnings largely by prioritizing profits.”
“Senator Sherrod Brown of Ohio, a Democrat who chairs the banking committee, set the tone from the start. “No one can deny that this nation has been good to the financial industry,” he said. “But your banks haven’t held up your end of the deal …”
Read more.