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Business News

UniCredit kicks off first tranche of share buyback for 2.34 billion euros

by Reuters April 3, 2023
By Reuters

MILAN (Reuters) – UniCredit will kick off on Monday the first tranche of a share repurchase programme which received supervisory approval last week, a key part of Chief Executive Andrea Orcel’s plans to boost the bank’s share price.

UniCredit said it had hired BNP Paribas to buy back up to 2.34 billion euros ($2.53 billion) worth of shares, equivalent to 12% of the bank’s capital, with completion expected by the end of June.

The European Central Bank last week gave UniCredit a green light to buy back 3.34 billion euros of its own shares, following a 2.58 billion euro buyback completed last year.

UniCredit trades at a discount to its book value, and Orcel has repeatedly said his goal is to lift the share price to trade in line with the book value.

The gap between the two is set to narrow on a per share basis once the repurchased shares are cancelled, due to the fact that they are being bought at a discount.

Buybacks also increase earnings per share since there are fewer shares in circulation.

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UniCredit’s shares were trading almost 2% higher by 0721 GMT, comfortably outperforming a 0.7% rise in Italy’s banking index.

($1 = 0.9247 euros)

(Reporting by Valentina Za; Editing by Kirsten Donovan)

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US and World News

Violent US storms kill at least 32 people

by Reuters April 3, 2023
By Reuters

(Reuters) – The death toll from a violent storm that whipped up tornadoes in the southern and midwestern regions of the United States rose to at least 32 over the weekend, according to officials and media reports.

In Memphis, Tennessee, two children and an adult were found dead on Saturday after the storm’s heavy winds knocked trees onto several houses, according to the Memphis Police Department.

In Tennessee’s McNairy County, officials reported that an additional two people had died, having reported seven deaths earlier on Saturday, according to local media. The Tennessee Department of Health on Sunday reported that there were an additional three weather-related deaths in three more counties, but did not provide more details.

In Owen County, Indiana, the bodies of a couple were found at a campground in McCormick’s Creek State Park, according to the state’s Department of Natural Resources.

Another 15 deaths from the storm, which generated tornadoes in several areas, were earlier reported in Arkansas, Illinois, Indiana, Delaware, Mississippi and Alabama. Scores of people were injured and many buildings damaged or destroyed.

U.S. President Joe Biden declared a “major disaster” in Arkansas on Sunday, ordering federal aid to help with the recovery.

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The president said in a statement on Sunday afternoon that he and wife Jill Biden were praying for the people impacted by the weekend storms and ordered relevant federal officials “to help with immediate needs and long-term rebuilding.”

“We know families across America are mourning the loss of loved ones, desperately waiting for news of others fighting for their lives, and sorting through the rubble of their homes and businesses,” he said.

The National Storm Prediction Center warned of severe weather on Sunday in parts of north and northeast Texas around Dallas and Fort Worth, including very large hail, significant wind gusts and a “strong tornado or two.” Dallas Fort Worth International Airport was under a ground-stop order for a couple of hours on Sunday afternoon, and flights were delayed as heavy rain, hail and strong winds hit the area.

Similarly severe weather, including thunderstorms, was forecast for later this week in much of the Midwest between Chicago and Little Rock, Arkansas, the center said.

(Reporting by Jonathan Allen in New York; Additional reporting by Diane Bartz in Washington and Brad Brooks in Lubbock, Texas; Editing by Bill Berkrot and Matthew Lewis)

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Business News

Analysis-Israel’s tech sector reels from SVB collapse, proposed judicial reform

by Reuters April 3, 2023
By Reuters

By Steven Scheer

JERUSALEM (Reuters) – After weathering recession and military conflicts, Israel’s high-tech sector could be facing its biggest test yet as the collapse of Silicon Valley Bank (SVB) removes a key funding source and a proposed judicial overhaul threatens the bedrock of corporate law.

Nicknamed “Startup Nation”, Israel’s economy has ridden a wave of tech success with a sector that employs just 10% of the country’s workforce accounting for around 15% of economic output, more than half of exports and a quarter of tax income.

But proposals by Prime Minister Benjamin Netanyahu’s hard-right coalition to give the government greater say in the selection of judges while limiting the Supreme Court’s power to strike down legislation have worried current and potential investors.

“The high tech sector needs stability, needs the rules of the game to be clear, needs a certainty that…they will have the court to go to,” said Karnit Flug, a former Bank of Israel Governor who is now a vice president at the Israel Democracy Institute, adding that otherwise investors would be reluctant to commit funds.

There is also the risk of accelerating a brain drain. An estimated 100,000 Israelis already live and work in California’s Silicon Valley and many others have moved to Europe. In an industry of around 400,000 there are currently around 6,000 vacant tech jobs, according to government data.

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“This sector…would take their brains…their ideas, their entrepreneurship, and there will be a red carpet laid out for them in some countries,” Flug told the Israel Council on Foreign Relations.

Parliament has given preliminary approval to the proposed legislation, hailed by proponents as necessary to curb what they deem an activist judiciary that interferes in politics while opponents call it a threat to democracy, but final approval has been delayed for a month after widespread protests.

A number of high tech firms such as U.S.-Israeli cyber security startup Wiz have said they would pull money from Israel and keep funds from entering the country if the reforms pass, while the head of cloud-based software provider NICE said major investors were carefully watching the situation.

Meanwhile, the shekel has dropped to a three-year low versus the U.S. dollar on expectations of a drop in foreign direct investment from $15 billion last year and a record $27 billion in 2021.

According to the IVC Research Center and LeumiTech, Israeli high tech firms raised $1.7 billion in the first quarter, down 70% from the $5.8 billion in the first three months of 2022 and its lowest quarterly fundraising level in four years.

THE GO-TO BANK

Adding to the tech sector’s worries is the collapse of U.S. lender SVB, which Jon Medved, chief executive of investment firm OurCrowd, called “the go-to bank” for Israeli startups – a 7000 strong group including “unicorns” with a valuation of at least $1 billion and smaller companies with no more than 50 employees.

More than half of the country’s startups held an account with SVB, companies and venture capital investors said, in some cases their only U.S. banking facility although the amounts involved are not fully known.

Mickey Balter, chief executive of indoor navigation startup Oriient, said SVB was the firm’s only U.S. bank and it was fortunate to transfer 70% of the millions of dollars it had there back to Israel, leaving the rest at SVB.

Initially, Balter thought the remaining 30% was lost but he regained access once regulators took over. “It would have been very painful,” he said. “Before (the regulators took over) I foresaw a scenario where we lost most of our operating cash.”

Israel’s Bank Leumi said it was able to move $1 billion back to local accounts before U.S. regulators took control, about half the amount estimated to have been returned, according to the investors.

Tech companies and investors alike said SVB was a rarity in the banking industry, familiar with Israel’s tech ecosystem and offering loan terms unmatched by other banks.

“These guys were very professional and lovely to work with…Banks today can be a pain…These guys weren’t,” said Medved.

Citing the judicial reforms, Adam Fisher, a partner at investment firm Bessemer Venture Partners, said fewer American banks may be willing to lend to Israeli companies, which means less competition and more onerous terms.

“Locals will step in to a certain extent but they can’t grow their loan books overnight,” he said.

A top executive at an Israeli bank also said that while he saw an opportunity to boost lending to startups, local banks alone would not be able to fill the vacuum left by SVB.

“We don’t have the ambition of billions of dollars but we certainly have the ambition to double or triple the portfolio,” he said.

Israel’s tech companies are therefore likely to flock to register as U.S. companies, while keeping R&D back home, said Yaron Samid, managing partner of the TechAviv Founder Partners fund.

A handful of large U.S. banks have offered deposit accounts to those affected by SVB’s failure, Samid said, while fintech firm Brex said it had too. Others have offered emergency liquidity but at higher rates.

“No doubt there’s a bunch of companies that only survived because of SVB’s credit facilities,” Samid said. “There’s going to be some pruning. It was already happening because of the macro dynamics and private equity markets, but this is only going to accelerate it.”

Declining to name specific companies at their own requests, Samid said some Israeli startup founders had been in the “advanced stages” of negotiating investments, only for potential funders to pull out or ask for more time due to the proposed reforms.

“Good companies are going to survive,” he added. “But companies that are not as healthy are not going to survive.”

(Reporting by Steven Scheer; Editing by Kirsten Donovan)

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China’s central bank calls for stronger defences against financial crisis

by Reuters April 3, 2023
By Reuters

BEIJING (Reuters) – China should accelerate legislation of the Financial Stability Law and improve other legal arrangements designed to prevent and dispose of financial risks, three officials from the People’s Bank of China (PBOC) wrote in China Finance, a publication affiliated to the central bank.

Financial authorities should strengthen supervision of financial institutions’ date accuracy to prevent risks, the article said, saying if any enlightment should be drawn from the Silican Valley Bank crisis.

    China should also let the insurance deposit system play its full role, allowing the mechanism to deal with problematic banks in a swift and orderly manner, so as to effectively prevent systematic risks, said the authors, who are from PBOC’s Financial Stability Bureau and the Deposit Insurance Corp. 

China’s commercial banks as a whole are sound and stable, the article said.

The authors said China should consolidate the capital reserves for dealing with financial risks to ensure that there are sufficient resources to dispose risks in a timely manner.

(Reporting by Sophie Yu, Brenda Goh; Editing by Raissa Kasolowsky)

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China Renaissance delays results, halts trade citing star dealmaker’s disappearance 

by Reuters April 3, 2023
By Reuters

By Xie Yu

HONG KONG (Reuters) – Boutique investment bank China Renaissance Holdings said it would delay its audited annual results and suspend its stock trading from Monday, after mainland authorities took away its chairman, Bao Fan, to co-operate with an investigation.

In a filing to the Hong Kong stock exchange, the bank said auditors told it they were unable to complete their audit and sign off on the earnings report until Bao, as controlling shareholder, becomes generally available for contact.

“While the company has used its best efforts to facilitate the requests of the auditors”, those requests are not matters within the control of China Renaissance, the bank said in the filing, adding that the board “was not able to reasonably estimate when it would meet to approve” the 2022 annual results.

Bao, who is also CEO, started the bank in 2005 with a two-person team, seeking to match capital-hungry startups with venture capitalist and private equity investors.

He is known to be well connected in the corporate world and was involved in a string of high-profile tech mergers including the tie-up of ride-hailing firms Didi and Kuaidi, and food delivery giants Meituan and Dianping.

The bank had an unaudited loss of 563.8 million yuan ($81.8 million) for 2022, compared with 1.6 billion yuan worth of net income for the year earlier, Sunday’s filing showed.

Late in February, the bank said in an exchange filing that Bao Fan, its star dealmaker, was co-operating with authorities in their investigation.

Bao’s disappearance in February sent shares in China Renaissance down as much as 50%. The shares remain about 10% down this year.

The bank said the resumption of trade in its shares would depend on the publication of its audited annual results.

Authorities have not issued any official statement regarding Bao’s whereabouts.

The bank said in its filing the board was also considering splitting the roles of chairman and CEO at an appropriate time.

($1=6.8915 yuan)

(Reporting by Xie Yu; Editing by Clarence Fernandez)

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Japan manufacturers’ mood sours on global slowdown, service sector bounce cushions blow

by Reuters April 3, 2023
By Reuters

By Leika Kihara and Tetsushi Kajimoto

TOKYO (Reuters) – Japanese manufacturers’ sentiment soured in the first quarter to its worst level in more than two years, eclipsing an uptick in service-sector mood, a central bank survey showed, reinforcing views a strong post-COVID economic recovery is some time away.

Corporate inflation expectations hit a fresh high with firms projecting inflation to stay above the Bank of Japan’s 2% target five years ahead, the “tankan” showed on Monday.

The outcome underscores the tricky task awaiting incoming Bank of Japan (BOJ) Governor Kazuo Ueda in deciding how soon to phase out his predecessor’s massive stimulus programme.

While steady wage growth and an end to COVID-19 curbs may keep the economy on a solid footing, slowing global growth could derail the export-reliant recovery, analysts say.

“External factors will continue to weigh on business morale in coming months” as the global economy slows under the weight of U.S. and European monetary tightening, said Takeshi Minami, chief economist at Norinchukin Research Institute.

“Given the fragile nature of Japan’s recovery, the BOJ is not in a situation where it can normalise monetary policy anytime soon,” he said.

The headline index measuring big manufacturers’ sentiment fell to plus 1 in March from plus 7 in December, the tankan showed, worse than a median market forecast for a reading of plus 3. It was the fifth straight quarter of deterioration and the worst level hit since December 2020.

Sentiment soured for a broad sector of manufacturers with many firms complaining of the impact of rising raw material and fuel costs, as well as slowing overseas growth and slumping chip demand, a BOJ official told a briefing.

By contrast, big non-manufacturers’ index rose for a fourth quarter to plus 20 from plus 19 in December, as hopes of a rebound in tourism and service demand brightened morale among retailers and hotels.

But service-sector firms expect business conditions to worsen three months ahead, the tankan showed, as rising raw material and labour costs cloud the outlook.

The survey will be among key data the BOJ will scrutinise in producing fresh quarterly growth and inflation estimates at its April 27-28 meeting – the first one to be chaired by Ueda.

Japan’s economy narrowly averted a recession in the final three months of 2022 and analysts expect any rebound in the January-March quarter to have been modest, as slow wage growth and rising living costs hurt consumption.

Many big firms promised hefty pay rises in spring wage talks with unions, offering policymakers hope that consumption will recover and take up the slack from an expected slump in exports.

The tankan showed big firms plan to raise capital expenditure by 3.2% in the fiscal year that began in April, which analysts see as bullish given it follows a hefty 16.4% gain in the previous year.

The strength of the economy, as well as wage and inflation outlook, will be key to how soon the BOJ could tweak or end its bond yield control policy that has been criticised as distorting market pricing and hurting financial institutions’ margin.

Companies expect inflation to hit 2.8% a year from now, 2.3% three years from now and 2.1% five years from now, the survey showed in a sign firms are bracing for inflation to remain above the central bank’s 2% target for years to come.

(Reporting by Leika Kihara and Tetsushi Kajimoto; Editing by Sam Holmes & Shri Navaratnam)

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Bomb kills Russian war blogger in St Petersburg cafe

by Reuters April 3, 2023
By Reuters

By Mark Trevelyan and Felix Light

(Reuters) – Well-known Russian military blogger Vladlen Tatarsky was killed by a bomb blast in a St Petersburg cafe on Sunday in what appeared to be the second assassination on Russian soil of a figure closely associated with the war in Ukraine.

Russia’s state Investigative Committee said it had opened a murder investigation. St Petersburg’s governor said that 25 people were wounded and 19 of them were being treated in hospital.

It was not immediately known who was behind the killing. The head of Russia’s Wagner mercenary group, Yevgeny Prigozhin, said on Sunday he would “not blame the Kyiv regime” for it.

But another leading Russian official pointed the finger at Ukraine, without providing evidence. A Ukrainian presidential adviser said “domestic terrorism” was breaking out in Russia.

Russia’s Foreign Ministry made no accusations of involvement in the attack, but said silence in Western capitals exposed hypocrisy over expressions of concern for journalists.

Tatarsky, whose real name was Maxim Fomin, had more than 560,000 followers on Telegram and was one of the most prominent of the military bloggers who have championed Russia’s war effort in Ukraine while often criticising the army top brass.

“We’ll defeat everyone, we’ll kill everyone, we’ll rob everyone we need to. Everything will be as we like it,” he was shown saying in a video last September at a Kremlin ceremony in which President Vladimir Putin claimed four partly occupied regions of Ukraine as Russian territory – a move rejected as illegal by most countries.

TASS news agency quoted an unnamed source as saying the bomb was hidden in a miniature statue that was handed to Tatarsky as he addressed a group of people in the cafe.

Mash, a Telegram channel with links to Russian law enforcement, posted a video that appeared to show Tatarsky, microphone in hand, being presented with a statuette of a helmeted soldier. It said the explosion happened minutes later.

Prigozhin said that the cafe previously belonged to him, but he has since given it to “patriotic” activists who have been holding meetings there.

Reuters was not able to independently confirm that.

Denis Pushilin, the Moscow-installed leader of the part of Ukraine’s Donetsk province that is occupied by Russia, suggested publicly that Ukraine was to blame.

“He was killed vilely. Terrorists cannot do otherwise. The Kyiv regime is a terrorist regime. It needs to be destroyed, there’s no other way to stop it,” he said.

Russian Foreign Ministry spokesperson Maria Zakharova said the absence of reaction in Washington, London and Paris “speaks for itself given their ostensible concern for the well-being of journalists and freedom of expression.

“The reaction in Kyiv is striking where those who receive Western grants are in no way concealing their delight at what has happened,” she wrote on the ministry’s website.

‘RIPE ABSCESS’

Mykhailo Podolyak, a Ukrainian presidential adviser, wrote on Twitter that it had only been a matter of time – “like the bursting of a ripe abscess” – before Russia would be consumed by what he called domestic terrorism.

“The spiders are eating each other in a jar,” he said.

Tatarsky’s death followed the killing last August of Darya Dugina, the daughter of a prominent ultra-nationalist, in a car-bomb attack near Moscow.

Russia’s Federal Security Service accused Ukraine’s secret services of carrying out that attack, which Putin called “evil”. Ukraine denied involvement.

Prigozhin said on Sunday that both killings were likely the work of “a group of radicals hardly related to the government,” but not of Ukraine.

Russia’s war bloggers, an assortment of military correspondents and freelance commentators with army backgrounds, have enjoyed broad freedom from the Kremlin to publish hard-hitting views on the war, now in its 14th month. Putin even made one of them a member of his human rights council last year.

They reacted with shock to the news of Tatarsky’s death.

“He was in the hottest spots of the special military operation and he always came out alive. But the war found him in a Petersburg cafe,” said Semyon Pegov, who blogs under the name War Gonzo.

(Additional reporting by Ron Popeski and Jake Cordell; Writing by Mark Trevelyan; Editing by Bill Berkrot and Stephen Coates)

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Julius Baer CEO eyes gains from Credit Suisse’s fall -media

by Reuters April 3, 2023
By Reuters

ZURICH (Reuters) – Julius Baer is having “constructive discussions” with Credit Suisse staff who are looking to leave following their bank’s takeover by UBS, the Swiss private bank’s Chief Executive said in an interview on Monday.

Philipp Rickenbacher also told the Financial Times he was seeing a “movement of clients to quality” in Switzerland as wealthy account holders pulled back from UBS and Credit Suisse, whose business models include riskier investment banking activities.

The takeover, engineered by Swiss authorities last month, would be difficult, he told the newspaper. “An integration of that order of magnitude in Switzerland is going to take a lot of resources and effort, and a lot of complexity.”

Julius Baer is Switzerland’s largest private bank. It works on behalf of wealthy individuals and does not speculate with its own capital or run its own in-house asset management business.

“Our model . . . has worked very well for us,” Rickenbacher said.

“We have hiring opportunities in Latin America, we have hiring opportunities in Asia …and … in Europe and in Switzerland,” he said.

He raised concerns about an ongoing crisis of confidence in the banking sector overall, highlighting recent interest rate hikes by central banks and the stresses they were creating.

“Things will remain very complicated — everything that was there a month ago will not go away,” Rickenbacher said.

“There’s still some room for policy mistakes at the highest levels when it comes to interest rates . . . Everyone’s senses are sharpened right now.”

(Reporting by John Revill; editing by John Stonestreet)

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China new home sales rise sharply in March – survey

by Reuters April 3, 2023
By Reuters

BEIJING (Reuters) – China’s new home sales rose sharply in March, as a slew of support policies boosted a pickup in demand across the board in 14 surveyed cities, a private survey showed on Monday.

The sales of new homes rose 55.7% month-on-month, up from growth of 31.9% in February, according to data from the China Index Academy — one of the country’s largest independent real estate researchers.

Tier-one cities — including the nation’s capital Beijing and the commercial hub of Shanghai — rose the fastest, jumping 73% last month. Sales in tier-two cities and tier-three cities grew 54.7% and 28.6%, respectively.

The data will be welcome news for the sector, once the pillar of China’s economic growth, but which was crushed by several crises since mid-2021, including developers’ debt defaults and stalled construction of pre-sold housing projects.

Policymakers in the country had introduced a comprehensive bailout package at the end of last year to propel sales and enable project completions, which helped improve the sentiment.

Real estate developers gained 2.4% on Monday.

The industry has also seen some gradual recovery in recent weeks, as homebuyers look to make a return after Beijing abandoned its stringent “zero-COVID” policy in December.

Local governments, too, continued to ease property curbs or roll out stimulus polices to improve buyers’ sentiment. The southeastern city of Xiamen relaxed home-buying curbs, allowing more residents to purchase properties.

Prices of new homes in 100 Chinese cities rose at the fastest pace in nine months in March, a separate survey by the researcher showed on Saturday.

(Reporting by Liangping Gao and Ryan Woo; editing by Uttaresh Venkateshwaran)

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Indonesia lowers VAT on electric vehicles to 1%

by Reuters April 3, 2023
By Reuters

JAKARTA (Reuters) – Indonesia has lowered its value-add tax on battery-based electric vehicle sales to 1% from 11% to encourage the adoption of EVs, a government ministry said on Monday, amid efforts to attract investment into domestic production,

The incentive came into effect this month and will remain in place until the end of the year, the Coordinating Ministry of Maritime and Investment Affairs said in a statement.

A VAT cut was also applied to some electric buses, it said.

Indonesia is stepping up efforts to lure investment into domestic production of EV batteries and EVs to utilise its rich reserves of nickel, which is processed for battery production.

Officials have been trying to attract investment from electric car makers such as Tesla and China’s BYD Auto.

South Korea’s LG and Hyundai have already started constructing plants to assemble batteries and EVs in the Southeast Asian country.

Indonesia said last month it would allocate 7 trillion rupiah ($466.70 million) in state funds to subsidise electric motorcycle sales through 2024.

($1 = 14,999.0000 rupiah)

(Reporting by Fransiska Nangoy; Editing by Ed Davies)

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Marketmind: Oil spike a black mark for inflation, consumer demand

by Reuters April 3, 2023
By Reuters

By Wayne Cole

(Reuters) – A look at the day ahead in European and global markets from Wayne Cole.

Oil prices have stolen the show in Asia on Monday, and not in a good way if you care about global inflation and consumer spending power.

The Organization of the Petroleum Exporting Countries and their allies including Russia (OPEC+), stunned markets by announcing production cuts of about 1.16 million barrels per day, preempting a meeting of ministers due later on Monday.

Brent and U.S. crude futures both jumped more than 5%, though they were off the early peaks. Analysts assumed OPEC+ was trying to put a floor under prices, around $80 a barrel for Brent and $75 for the U.S. flavour of oil, and Goldman Sachs quickly raised its forecast to $95 a barrel for year end.

Then again, some thought it might also suggest producers were worried that demand was missing bullish forecasts given physical cargoes are arranged months in advance of delivery.

If the price increase sticks, it will be bad news for headline inflation and will leave a sour taste after Friday’s core U.S. Personal Consumption Expenditures data seemed to bode well for a cooling of cost pressures.

The market responded by pushing bond yields and the dollar higher, while paring expectations for how much the Federal Reserve may cut rates later in the year. Futures have around 38 basis points of easing priced in by December, compared to more than 100 basis points during the banking crisis of mid-March.

Yet, higher petrol prices are also a tax on consumers and have a close correlation to consumer sentiment, especially in the United States. It’s also unlikely to be taken well by the White House given the political pain of higher gas prices.

Concerns about consumer demand were not helped by the Caixin/S&P survey of Chinese manufacturing in March that badly missed forecasts at 50.0, largely due to a weakness in export orders.

This survey concentrates on smaller firms and exporters and suggests foreign demand is a headwind for China even as the domestic service sector roars back.

Export-reliant Japan and South Korea also saw manufacturing activity contract in March. Both are major importers of energy, so they will not welcome the spike in oil.

Key developments that could influence markets on Monday:

– The Joint Ministerial Monitoring Committee (JMMC) of the OPEC and non-OPEC countries meets via videoconference

– March PMIs for Europe, while the U.S. ISM survey of manufacturing is seen easing a touch to 47.5. Auto sales for March will offer an early read on consumer demand

– Federal Reserve Board Governor Lisa Cook speaks on the U.S. economic outlook and monetary policy

(Editing by Jamie Freed)

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Architects of Northern Ireland peace see hope beyond Brexit deadlock

by Reuters April 3, 2023
By Reuters

By Padraic Halpin and Kate Holton

DUBLIN/LONDON (Reuters) – A quarter of a century after unpalatable compromises ended decades of bloodshed in Northern Ireland, some of the architects of the Good Friday Agreement hope that deal can help inspire a route out of the region’s near-permanent political crisis.

In April 1998, British Prime Minister Tony Blair and his Irish counterpart Bertie Ahern helped Irish nationalists and British unionists craft an intricate powersharing deal that paved the way for militants on both sides to lay down arms.

The peace has utterly transformed the region, largely ending three decades of bitter violence that killed 3,600.

But the devolved powersharing government was struggling even before Britain’s vote to leave the European Union altered the delicate political balance on the island of Ireland, and some fear the current boycott by the region’s once-dominant Democratic Unionist Party (DUP) could prove fatal.

Those who remember the repeated false dawns of 25 years ago are more sanguine.

“Nothing’s ever irresolvable” said Blair, summing up the stubborn optimism many developed working in Northern Ireland at the turn of the millennium.

“Today… it’s still very fraught but I think there’s a depth to the process. There are roots that have been put down that I don’t think anyone on the island of Ireland really wants to disturb,” he told Reuters in an interview. “People realise that to go back to the past would be a complete disaster.”

PRINCIPLE OF CONSENT

One source of the current political crisis is the sense that Brexit and its fallout have upset some of the balance of the 1998 deal – specifically the principle of cross-community consent embodied in a requirement for major legislation to be supported by a majority of both nationalists and unionists in the devolved assembly.

Nationalists, who are mostly Catholic, say Northern Ireland was wrenched from the EU in a UK-wide vote even though its smallest region voted 56% to 44% to remain.

Unionists, who are mainly Protestant and largely backed Brexit, say the imposition of trade barriers with the rest of the United Kingdom in a bid to avoid a hard border with EU-member Ireland was done without their consent.

That prompted the DUP to collapse powersharing a year ago, a position it has doubled down on in recent weeks in the wake of a reworking of post-Brexit trade rules under a compromise known as the Windsor Framework brokered by Prime Minister Rishi Sunak.

With the DUP saying it won’t return until major changes are made to the deal, and London and Brussels ruling that out, there appears no room for compromise. One DUP lawmaker said the EU-UK deal had effectively “ripped up” the 1998 accord.

The DUP was the only major party not to participate in the 1998 negotiations, but it later joined the powersharing government and went on to supplant the more moderate Ulster Unionists as the main voice of Protestant voters.

“There is an exhaustion and frustration,” at the DUP’s repeated objections, said Ahern, Irish prime minister from 1997-2008.

“But I’ve always looked on this in a pragmatic way that if there’s a problem, try to fix it and I think we have to try and fix it. It’s doable. It’s bordering on the ridiculous, but let’s try and do it.”

STALEMATE

Many have identified the compulsory coalition that gives the largest party on either side of the sectarian divide the power to pull down powersharing as a key stumbling block to progress.

That, coupled with the rise of the Alliance party, which identifies as neither nationalist or unionist, has sparked calls for an overhaul of a political architecture premised on a society divided in two.

“There’s no such thing as status quo. You’re either going forwards or backwards,” said Ahern, who believes a review is needed. “If you stand still, what happens is eventually you fall over.”

The rules around devolution have already been changed in 2006 to overcome an earlier suspension.

But Blair said all sides must “proceed really carefully” with any reform and that the Brexit row has to be solved first.

‘NEW ARCHITECTURE’

Gerry Adams, another key player in the 1998 talks as head of the political wing of the Irish Republican Army, said he would be “very, very dilatory about making changes to the Good Friday Agreement”.

But he said if the DUP, the key rival of his Sinn Fein party, does not re-enter government, other options would have to be considered.

“If they are not going to do so, then let them tell us that and then we’ll all move forward into a different architecture because there can be no going back to what’s described as direct (British) rule,” Adams told Reuters.

Adams, who has always denied membership of the IRA, is also optimistic, but for a different reason: his party has said it expects the British government to call a referendum on Northern Ireland breaking away from British rule within a decade.

The 1998 agreement requires London to call such a vote if it seems likely a majority would back Irish unity.

“Sands are shifting,” said Adams.

Despite the current crisis, “a space has been opened up where people can moderate our differences politically”, the former Sinn Fein leader said.

“We have been able to develop a pathway to change which will lead to greater change, I believe, in the time ahead.”

(Additional reporting by Amanda Ferguson in Belfast; Writing by Conor Humphries; Editing by Alex Richardson)

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April 3, 2023 0 comments
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Business News

Shipbuilder Austal sinks on former U.S. executives’ indictment for financial fraud

by Reuters April 3, 2023
By Reuters

(Reuters) – Australian shipbuilder Austal Ltd sank as much as 8.4% to its lowest level in more than four years on Monday after the United States Department of Justice indicted three of its former U.S. employees on manipulating financial information.

Austal, which builds ships for the U.S. Navy and is working on parts of the Virginia class submarines, plunged to its lowest level since October 25, 2018, and marked its worst intraday drop since January 17.

The U.S. Department of Justice (DOJ) charged three former employees for “allegedly making or causing to be made false and misleading statements about Austal USA’s performance and financial condition between 2012 and 2016”, the company said.

The U.S. Securities and Exchange Commission (SEC) has also filed civil charges against the three individuals, Austal said.

The SEC and DOJ alleged that the individuals artificially reduced and suppressed an accounting metric, called estimate at completion (EAC), in relation to multiple littoral combat ships that Austal was building for the U.S. Navy.

The company since then has announced a write-back to adjust its revenue and profit, settled an investigation by Australia’s securities regulator, and conducted its own investigation into the matter, which resulted in the resignation of the president of Austal USA.

About 1.2 million shares changed hands, compared with the monthly average of around 791,900 shares.

Austal is down 17% so far this year, as of last close, compared with a 2.1% increase in the ASX All Ordinaries index.

(Reporting by Sameer Manekar in Bengaluru; Editing by Sonia Cheema)

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April 3, 2023 0 comments
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Breaking NewsNew York City NewsNew York NewsPolice Blotter

16-year-old reported missing in Staten Island

by Adam Devine April 3, 2023
By Adam Devine

NEW YORK, NY – Detectives with the NYPD’s 121st Precinct in Staten Island have issued an alert for a missing 16-year-old girl.

Police said 16-year-old Priscilla Hanley was last seen Sunday after midnight in front of her Lamped Loop home at around 12:40. Her family said she never returned home that night.

She is described as a white female, 5’0″ in height, with a heavy build, hazel eyes, and dark colored hair. The missing was last seen wearing a gray sweatsuit.

Anyone with information in regard to this incident is asked to call the NYPD’s Crime Stoppers Hotline at 1-800-577-TIPS (8477) or for Spanish, 1-888-57-PISTA (74782). The public can also submit their tips by logging onto the CrimeStoppers website at https://crimestoppers.nypdonline.org/ or on Twitter @NYPDTips.

April 3, 2023 0 comments
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Business News

E-commerce firm Boxed Inc files for bankruptcy, eyes software unit sale

by Reuters April 2, 2023
By Reuters

(Reuters) – Boxed Inc filed for Chapter 11 bankruptcy protection and was pursuing sale of its software business, the e-commerce grocery platform said on Sunday, adding that it will also wind down its retail operations in the coming weeks.

The plan to sell Spresso, its Software-as-a-Service business, chimes with the company’s announcement last month to explore options to raise capital.

“This was an incredibly difficult decision, and one that we reached only after carefully evaluating and exhausting all available options,” Chief Executive Officer and co-founder Chieh Huang said in a statement.

The company intends to fund its near-term operations and cover administrative expenses through access to its cash collateral as it winds down, Boxed said.

Spresso business will be sold to first lien lenders, and customers would not face service disruptions during the process, the online platform said.

The bankruptcy filing comes weeks after Boxed said it held a majority of its cash deposits and other liquid assets in accounts at the collapsed Silicon Valley Bank.

(Reporting By Jyoti Narayan; Editing by Sherry Jacob-Phillips)

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April 2, 2023 0 comments
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Breaking NewsBusiness NewsCommunity NewsFeatured NewsJackson Township NewsOcean County News

Adventure Crossing responds to former town official calling tornado destruction karma

by Phil Stilton April 2, 2023
By Phil Stilton

JACKSON TOWNSHIP, NJ – Adventure Crossing USA, a project that promised to bring sports and entertainment-related jobs and tourism to Ocean County and Jackson Township, has announced it will be closed for the foreseeable future.

That news comes after the inflatable dome at the site’s indoor Top Golf driving range, restaurant and arcade center was destroyed as a result of Saturday night’s passing storm and possibly a tornado.

Denise Garner, a former township appointed member of the Jackson Township Environmental Commission, now a resident of Delaware, cheered on the news of the dome’s collapse with others who supported the project.

Garner, a self-described environmentalist who protested the construction of the sports and entertainment center, suggested the dome be built out of hemp-based concrete in the future but said the destruction of the dome and loss of jobs at the center was ‘karma’.

Adventure Crossing responded to the Delaware resident’s comments.

“Since most folks get their breaking news on social media we announced the closure of Adventure Golf & Entertainment early this morning, on all platforms. It seems almost as if you are gleeful that hundreds of people will be unable to enjoy our facilities for the foreseeable future and that hundreds more had no job to report to today. What a sad commentary,” the company said on Facebook today. “For our part we are grateful that no injuries have been reported in our beloved Jackson Township and as we deal with the impact of last night’s storm and what it means for so many, rest assured that Adventure Crossing USA will rise to the challenge and that our facilities will reopen just as quickly as is possible.”

Garner, a self-described environmentalist who protested the construction of the sports and entertainment center, suggested the dome be built out of hemp-based concrete in the future but said the destruction of the dome and loss of jobs at the center was ‘karma’.

“Maybe you should look into having your dome built with hempcrete. It can withstand winds up to 200 miles an hour. Plus, it can take care of all of that negative co2 being released by all of those trucks and other traffic going in and out of that area. Ahh to think outside of the rubber dome. Karma,” the Delaware resident replied.

It’s not sure when the dome and the facility will reopen, but the company said it will work toward that goal.

April 2, 2023 0 comments
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Business News

Nomura names Rudolf Hitsch North Asia head of wealth management

by Reuters April 2, 2023
By Reuters

HONG KONG (Reuters) – Japanese investment bank Nomura Holdings Inc on Monday said it has appointed Dr. Rudolf Hitsch as head of North Asia for its international wealth management business.

Hitsch, former head of North Asia at Citi Private Bank, will be based in Hong Kong and run client relationship management teams covering North Asia in the newly created post. He will report to Ravi Raju, head of the wealth unit, Nomura said.

Nomura has hired around 50 private bankers for the unit over the past two-and-a-half years as it focuses on its core markets of Greater China, South and Southeast Asia, and the Middle East, it said.

(Reporting by Xie Yu; Editing by Christopher Cushing)

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Business News

McDonald’s temporarily shuts US offices, prepares layoff notices -WSJ

by Reuters April 2, 2023
By Reuters

(Reuters) – Burger chain McDonald’s Corp is temporarily closing its U.S. offices this week as it prepares to inform corporate employees about its layoffs as part of a broader company restructuring, the Wall Street Journal reported on Sunday.

In an internal email last week to U.S. employees and some international staff, McDonald’s asked them to work from home from Monday through Wednesday so it can deliver staffing decisions virtually, the report said. It is unclear how many employees will be laid off.

“During the week of April 3, we will communicate key decisions related to roles and staffing levels across the organization,” the Chicago-based company said in the message viewed by the Journal.

McDonald’s also asked employees to cancel all in-person meetings with vendors and other outside parties at its headquarters, the report added.

McDonald’s did not immediately respond to Reuters’ request for a comment.

The fast-food chain said in January that it would review corporate staffing levels as part of an updated business strategy, which could lead to layoffs in some areas and expansion in others.

McDonald’s is expected to begin announcing key decisions by Monday.

(Reporting by Maria Ponnezhath in Bengaluru; Editing by Josie Kao)

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US and World News

Japan’s foreign minister urges China to release detained national

by Reuters April 2, 2023
By Reuters

By Laurie Chen, Kiyoshi Takenaka and Sakura Murakami

BEIJING/TOKYO (Reuters) – Japanese Foreign Minister Yoshimasa Hayashi met his Chinese counterpart on Sunday and urged Beijing to promptly release a detained Japanese national.

Hayashi’s meeting with Qin Gang was the first visit to Beijing for a Japanese foreign minister in over three years, as the two rival Asian powers seek common ground amid rising regional tension.

An employee of Astellas Pharma Inc was detained in China for unknown reasons, a company spokesperson said a week ago. Five Japanese nationals are currently detained in China, two of whom have already been tried and found guilty, according to Japan’s foreign ministry.

“I made a protest against the recent detention of a Japanese person in Beijing, and made a strong point of our position on the matter, including the early release of this national,” Hayashi told reporters.

Qin responded that China “will handle (the case) according to the law”, according to a readout from the Chinese foreign ministry.

Hayashi said Japan is seeking transparency over the legal process regarding detentions and has asked for China to secure a fair and safe business environment. He did not elaborate on China’s reaction.

“This happened when the Chinese government is trying to promote Japanese investment to China, and we see a discrepancy there,” deputy press secretary of Japan’s Foreign Ministry Yukiko Okano said to reporters on Sunday, adding that this point was raised by Hayashi during his meetings in Beijing.

The Japanese minister also conveyed Tokyo’s grave concerns over an increase of China’s military activity, including its collaboration with Russia and its maritime presence in the East China Sea, he said.

“We both affirmed the importance of continuing to have a dialogue on issues including national security,” Hayashi said.

Hayashi said he spoke to Qin about the “importance of ensuring peace and stability in the Taiwan strait”. Beijing said Qin warned Japan “not to interfere in the Taiwan issue or undermine China’s sovereignty in any form”, stressing that Taiwan is “the core of China’s core interests”.

“Japan’s position has not changed, not with this remark, and not in recent years,” Okano said when asked for comment on Beijing’s account.

Tension has been rising over Taiwan, which Beijing claims as its own territory. China has never renounced the use of force to bring Taiwan under its control. The democratically elected government in Taipei rejects Beijing’s claims and says only its people can decide its future.

Japan also lodged a diplomatic complaint in August after five ballistic missiles launched by the Chinese military fell into Japan’s exclusive economic zone, near disputed islands known as the Senkaku in Japan and the Diaoyu in China.

After Tokyo on Friday announced export restrictions on semiconductor manufacturing equipment, following the U.S., Qin warned his counterpart “not to play accomplice to an evildoer”.

The curbs are aligned with similar measures from the U.S. and the Netherlands, aimed at restricting China’s ability to make advanced chips.

Hayashi told reporters the restrictions “are not aimed at any specific country”.

Despite their differences, China and Japan agreed to restart trilateral talks with South Korea, Hayashi said, calling the agreement “an important achievement” from his meeting with Qin.

“We agreed to continue communicating closely on various levels, including the foreign ministerial and leadership levels,” Hayashi added.

Japanese Prime Minister Fumio Kishida and Chinese President Xi Jinping met on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in November, the first bilateral summit in almost three years.

(Reporting by Sakura Murakami and Kiyoshi Takenaka in Tokyo, and Laurie Chen in Beijing; Editing by Christopher Cushing and William Mallard)

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April 2, 2023 0 comments
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Breaking NewsD.C. NewsPolice Blotter

Police arrest homeless man for knife attack in D.C.

by Leo Canega April 2, 2023
By Leo Canega

WASHINGTON, D.C – Detectives from the Metropolitan Police Department’s Fourth District have announced the arrest of a suspect in connection with a knife attack that occurred on Wednesday in the 4000 block of Georgia Avenue, Northwest.

At around 5:15 pm, the suspect and victim became involved in a physical altercation, during which the suspect stabbed the victim with a knife. Responding officers apprehended the suspect, and the victim was transported to a local hospital for treatment of non-life-threatening injuries.

A knife was recovered at the scene.

On Wednesday, 31-year-old James Moore, of no fixed address, was arrested and charged with Assault with a Dangerous Weapon (Knife). The Metropolitan Police Department continues investigating the incident and encourages anyone with information to contact the police at 202-727-9099 or text a tip to 50411.

April 2, 2023 0 comments
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Breaking NewsD.C. NewsPolice Blotter

Suspect arrested in D.C. shooting

by Leo Canega April 2, 2023
By Leo Canega

WASHINGTON, D.C – Detectives from the Metropolitan Police Department’s Seventh District have announced the arrest of a suspect in connection with a shooting that occurred on Tuesday in the 3400 block of 13th Street, Southeast.

At around 12:30 am, the suspects forcibly entered an apartment, assaulted and shot the victim, then fled the scene. The victim was taken to a local hospital with life-threatening injuries.

On Wednesday, 41-year-old Tiaquana Chandler of Southeast, DC, was arrested and charged with Assault with Intent to Kill and Burglary.

Further investigation revealed that the suspect and victim were known to each other. The case remains under investigation, and anyone with information is encouraged to call the police at 202-727-9099 or text a tip to 50411.

April 2, 2023 0 comments
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Breaking NewsD.C. News

Police searching for suspect in D.C. strong-armed robbery

by Leo Canega April 2, 2023
By Leo Canega

WASHINGTON, D.C – Detectives from the Metropolitan Police Department’s Third District are seeking the public’s assistance in identifying and locating a suspect involved in a Robbery (Force and Violence) offense that took place on Tuesday, in the 3000 block of 16th Street, Northwest. At approximately 4:19 am, the suspects exited a vehicle driven by another suspect and approached the victim. One of the suspects pinned the victim against a wall and demanded their property. The suspects took the victim’s belongings and fled the scene in the vehicle.

The Metropolitan Police Department is actively investigating the incident and requests the public’s help in identifying the suspects. Anyone with information about this case is encouraged to call the police at 202-727-9099 or text a tip to 50411. Crime Solvers of Washington, DC is offering a reward of up to $1,000 for information that leads to the arrest and indictment of the person or persons responsible for the crime.

Police searching for suspect in D.C. strong-armed robbery
April 2, 2023 0 comments
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US and World News

Finland’s PM Marin concedes defeat as right-wing NCP wins election

by Reuters April 2, 2023
By Reuters

By Anne Kauranen and Essi Lehto

HELSINKI (Reuters) – Finland’s left-wing Prime Minister Sanna Marin conceded defeat on Sunday in the Nordic country’s parliamentary election as the opposition right-wing National Coalition Party (NCP) claimed victory in a tightly fought contest.

The pro-business NCP was expected to win 48 of the 200 seats in parliament, narrowly ahead of the nationalist Finns Party with 46 seats and Marin’s Social Democrats on 43 seats, justice ministry election data showed with all ballots counted.

“We got the biggest mandate,” NCP leader Petteri Orpo said in a speech to followers, vowing to “fix Finland” and its economy.

He will get the first chance at forming a coalition to obtain majority in parliament as Marin’s era as prime minister was expected to end.

“We have gained support, we have gained more seats (in parliament). That’s an excellent achievement, even if we did not finish first today,” the prime minister said in a speech to party members.

Marin, 37, the world’s youngest prime minister when she took office in 2019, is considered by fans around the globe as a millennial role model for progressive new leaders, but at home she has faced criticism for her partying and her government’s public spending.

While she remains very popular among many Finns, particularly young moderates, she antagonised some conservatives with lavish spending on pensions and education they see as not frugal enough.

The NCP has led in polls for almost two years although its lead had melted away in recent months. It has promised to curb spending and stop the rise of public debt, which has reached just over 70% of GDP since Marin took office in 2019.

Orpo accused Marin of eroding Finland’s economic resilience at a time when Europe’s energy crisis, driven by Russia’s war in Ukraine, has hit the country hard and the cost of living has increased.

Orpo has said he will negotiate with all groups to obtain a majority in parliament, while Marin has said her Social Democrats may govern with the NCP but will not go into government with the Finns Party.

Marin called the Finns Party “openly racist” during a debate in January – an accusation the nationalist group rejected.

The Finns Party’s main goal is to reduce what leader Riikka Purra has called “harmful” immigration from developing countries outside the European Union. It also calls for austerity policies to curb deficit spending, a stance it shares with the NCP.

Most notable of Marin’s foreign policy actions has been her push, along with President Sauli Niinisto, for the country to make a watershed policy U-turn by seeking NATO membership in the wake of Russia’s invasion of Ukraine.

That process is now almost complete, with Helsinki expected to join within days after all the Western defence alliance’s 30 members approved the accession.

(Reporting by Anne Kauranen, Essi Lehto, Terje Solsvik and Attila Cser in Helsinki; Editing by Justyna Pawlak, Frances Kerry, Philippa Fletcher, David Holmes and Andrew Heavens)

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Breaking NewsFeatured NewsMonmouth County NewsNew Jersey NewsPolice Blotter

Plane loses control during storm while attempting landing at Wall airport

by Charlie Dwyer April 2, 2023
By Charlie Dwyer

WALL TOWNSHIP, NJ – A twin-engine Citation jeft skidded off the runway while making a landing at Monmouth Executive Airport Friday night as a dangerous storm was bearing down on the region.

At around 7:38 pm, Wall Township Police and Fire District 2 responded to the scene where a twin-engine Citation jet left the runway while landing.

“It lost control upon entering a grass median and came to rest on its underside off the taxiway,” the Wall Township Police Department said. “Sudden high winds from incoming thunderstorms were a contributing factor.”

Investigators revealed the aircraft was occupied by its pilot and copilot.

“Both self-extricated from the plane and were uninjured. The plane sustained significant damage. Wall Fire District 2, with assistance from Monmouth County Hazmat, was able to isolate the fuel from the aircraft. The scene was secured until morning,” the department reported.

Police continued their investigation on Sunday morning, and the plane was towed from the runaway and the site cleaned up.

It was just one of 100 calls for service police responded to during the three-hour severe thunderstorm.

The airport was closed during the initial investigation and has since reopened.

April 2, 2023 0 comments
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Business News

Chinese cash trickling back to Asia’s property markets

by Reuters April 2, 2023
By Reuters

By Tom Westbrook and Stella Qiu

SINGAPORE/SYDNEY (Reuters) – The end of China’s strict COVID-19 border controls is prompting pent-up cash to begin flowing abroad, real estate agents and property data from Australia to Singapore suggest.

Chinese demand is helping boost Singapore property prices, Chinese students are snapping up apartments in Sydney and Melbourne, and agents say Chinese interest is ticking up in Thailand.

Data on the early trickle of outflows is scarce, but the signs suggest new demand to get capital out of China, where real estate confidence is fragile and the government’s tax rules and criticism of wealth accumulation make investing abroad more attractive.

“Enquiries from regional Asia property investors have doubled since the borders opened, especially from the Chinese,” said Ian Chen, founder and chief executive of Jalin Realty, which operates in China, Australia, Malaysia and Singapore.

“Most of the investors who are buying now are those who just need to get some money out. We are not seeing a big wave, but definitely there is interest and a lot of enquiries – especially from students who are coming back to Australia.”

Rich and middle-class Chinese have long sought to move some wealth abroad to diversify their investments and keep some assets beyond the reach of authorities, just in case.

Early signs point to much smaller flows than in previous episodes, such as one in 2016 that triggered tighter controls on moving money from China. But they indicate that in the wake of the pandemic, Chinese families are looking to relocate assets, and even themselves, overseas.

The restrictions on moving money abroad will likely prevent a flood of outflows or a big impact on the world’s second-biggest economy, but the trend indicates some lack of confidence and weighs on the currency, which has struggled to advance as China relaxed its COVID rules.

MONEY TRAVELS

Australia’s property data is not broken down by nationality, but agents say recent foreign interest has helped stabilise prices and push clearance rates in Sydney to a one-year high in February.

Singapore is seeing families and money flowing in.

Joey Wang, a director at CS Corp, an accounting firm that provides migration advice in the city-state, has gained some 300 mostly Chinese clients since the pandemic. “COVID and the lockdown gave people a lot of time to think about their future,” Wang said.

Home purchases in Singapore, where Chinese are the top foreign buyers, cooled early in 2023 from last year’s torrid pace – but only slightly despite a steep rise in real estate stamp duties.

The Singapore American School has “seen significant interest from Chinese families looking to enrol,” it said in a statement responding to Reuters questions.

Canada, another real estate market popular with Chinese investors, has put a two-year ban on foreign purchasers. Agents in Thailand say sales enquiries from China are starting to pick up.

Foreign-currency deposits at China’s commercial banks fell 16.2% in the year through February, though it is unclear whether that suggests flows abroad.

One “measurement of disguised capital flight” is persistent net capital outflows through tourism but for other purposes, analysts at French bank Natixis said in a note, referring to larger capital transfers that accompany travel.

“A lot of people have been travelling to Thailand since reopening and they will look at the property market,” said Jenny Yan, marketing manager at a Shenzhen company that specialises in buying overseas properties.

“Properties in Thailand or Malaysia are pretty cheap, even cheaper than those in a third-tier Chinese city,” she said, with a luxury house costing about 2 million yuan ($300,000) and an apartment a quarter of that.

“With this many people travelling, there will be demand for buying.”

($1 = 6.8508 Chinese yuan renminbi)

(Additional reporting by Xinghui Kok, Chen Lin and Rae Wee in Singapore; Editing by William Mallard)

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