Month: October 2023

Bank of Japan loosens control of bond yields

Media Library

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. The Bank of Japan has taken one of its final steps to end its seven-year policy of capping long-term interest rates, setting the stage for bigger policy changes as it sharply raises its inflation outlook. The BoJ’s policy board on Tuesday made a near-unanimous decision to allow yields on the 10-year Japanese government bond to rise above 1 per cent, revising its so-called yield curve control policy for the second…

Samsung foresees end of punishing memory chip slump in 2024

Media Library

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Samsung Electronics expects the memory chip market to rebound next year, drawing a year-long supply glut to an end, after introducing production cuts to get through an industry downturn. The world’s largest producer of memory chips and smartphones forecast semiconductor prices would rise in the fourth quarter, with inventories getting quickly depleted. Samsung also said artificial intelligence applications would drive significant demand for high-end chips. “In 2024, while macroeconomic uncertainties…

US to send strongest-ever delegation to China International Import Expo amid improving ties

Media Library

Amid improving relations between Beijing and Washington, the United States is expected to send its strongest-ever delegation to next week’s China International Import Expo (CIIE), according to sources with knowledge of the issue. Jason Hafemeister, acting deputy undersecretary for trade and foreign agricultural affairs and trade counsel to the agriculture secretary at the US Department of Agriculture (USDA), will be among the federal officials attending the six-day event, which begins in Shanghai on Sunday. Hafemeister will be joined by Wade Sheppard, the USDA’s senior adviser for North Asia. It would…

China leads record central bank gold buying in first nine months of year

Media Library

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. China has spearheaded record levels of central bank purchases of gold globally in the first nine months of the year, as countries seek to hedge against inflation and reduce their reliance on the dollar. Central banks have bought 800 tonnes in the first nine months of the year, up 14 per cent year-on-year, according to a report by the World Gold Council, an industry group. The “voracious” rate of buying…

South China Sea: Beijing and Manila dispute details of latest Scarborough Shoal military encounter

Media Library

China’s military has warned off a Philippine warship in the latest of several incidents within the past month between the two countries as tensions mount in the South China Sea. The PLA Southern Theatre Command said a Philippine vessel on Monday “illegally entered” the waters around Huangyan Island, the Chinese name for Scarborough Shoal, which is also claimed by the Philippines. A statement from Southern Theatre Command spokesperson Tian Junli said the Philippine vessel had “seriously violated” China’s sovereignty. “The Southern Theatre Command of the Chinese People’s Liberation Army organised…

Differing US and Chinese objectives will limit outcomes of a Xi-Biden meeting: Kevin Rudd

Media Library

Rudd said China’s interest was in “more trade, more investment or access to capital markets” to relieve its “internal economic tension” while the US was seeking to de-risk economically from China and reduce the risk of conflict through resumed military dialogue. China was actively focused on revitalising its economy but this did not mean it had fundamentally changed its strategic calculus on Taiwan or the South China Sea, said Rudd, who was joined in the panel by ambassadors to the US from Singapore and France. 02:17 China’s Wang Yi calls…

Banks pumped more than $150bn in to companies running ‘carbon bomb’ projects in 2022

Media Library

Banks pumped more than $150bn last year into companies whose giant “carbon bomb” projects could destroy the last chance of stopping the planet heating to dangerous levels, the Guardian can reveal. The carbon bombs – 425 extraction projects that can each pump more than one gigaton of carbon dioxide into the atmosphere – cumulatively hold enough coal, oil and gas to burn through the rapidly dwindling carbon budget four times over. Between 2016 and 2022, banks mainly in the US, China and Europe gave $1.8tn in financing to the companies…

Taiwan rules on dividend ETFs will not deter investors, experts say

Media Library

Stay informed with free updates Simply sign up to the Exchange traded funds myFT Digest — delivered directly to your inbox. Latest news on ETFs Visit our ETF Hub to find out more and to explore our in-depth data and comparison tools Regulatory pressure on Taiwanese asset managers to disclose how much capital is being used to make payouts from high-dividend exchange traded funds is unlikely to dent investor enthusiasm for the products, experts say. In September, Taiwan’s regulator announced that from November 1, managers must disclose the dividend composition…

China’s factory activity contracts in blow to economic momentum

Media Library

Stay informed with free updates Simply sign up to the Chinese economy myFT Digest — delivered directly to your inbox. China’s manufacturing activity unexpectedly contracted in October, damping hopes of increasing momentum in the world’s second-largest economy. The country’s official manufacturing purchasing managers’ index came in at 49.5 this month, missing forecasts and trailing a reading of 50.2 in September. A reading below 50 marks contraction against the previous month. The contraction, which reversed last month’s return to expansion, marked a further blow for policymakers, who are under pressure to…

Why clothing makers are finding it hard to break with China’s supply chain

Media Library

From Adidas to Nike, apparel and footwear makers have been shifting their supply chains out of China, pushed by geopolitical tensions and pulled by lower manufacturing costs. But amid mounting global economic uncertainties and weakening consumer demand, many are discovering that finding alternative production hubs comes with its own challenges. Some are even upping stumps and moving back to the mainland. “That mature ecosystem, established over decades in China, not only ensures competitive price points, but also delivers stable quality at mass production that’s hard to copy,” Laura Magill, the…