Latest news with #tariffwar
Yahoo
35 minutes ago
- Business
- Yahoo
Exclusive-China Galaxy, CICC plan over $1 billion investment funds in Southeast Asia
By Yantoultra Ngui and Rae Wee SINGAPORE (Reuters) -State-backed investment banks China International Capital Corp and China Galaxy Securities plan to launch funds worth a total of more than $1 billion in Southeast Asia, seeking to grab a slice of a lucrative market amid a U.S. tariff war. The move heralds a shift in investment focus for the banks, typically focused on the domestic market, and comes as Beijing encourages its financial champions to support outbound investment and deepen regional economic ties. Units of CICC and China Galaxy expect to launch the investment funds over the next 1-1/2 years, a top executive and a person with knowledge of the matter told Reuters. "As the tariff wars continue and Chinese corporates accelerate their 'China plus N' strategy, they seek local expertise in Southeast Asia," said Carol Fong, chief executive of CGS International, a unit of China Galaxy Securities. Such regional knowledge will aid efforts to expand in areas such as supply chain and distribution, she added. 'China plus N' refers to Chinese companies' diversification strategy to expand supply chains and operations beyond their home country to mitigate geopolitical risk. CGS is looking to launch next year a private equity fund of up to $1 billion that aims to facilitate investments and capital flows between China and Southeast Asia, Fong added. The fund will target high-growth sectors such as healthcare, AI, advanced manufacturing, renewable energy and consumer, offering investors exposure to emerging opportunities across both China and Southeast Asia, she said. The banks' push into Southeast Asia also underscores Beijing's efforts to boost regional ties since U.S. President Donald Trump unveiled hefty import tariffs in his global trade war that targeted China with even heavier levies. China and the United States agreed in May to pause some tariffs, but the region of 11 countries with a population of more than half a billion is increasingly becoming a target for Chinese companies seeking growth overseas. "Southeast Asia's huge market and growth potential presents a big opportunity for Chinese firms," Fong said. LARGEST TRADING PARTNER CICC Capital, the private equity investment arm of CICC, is partnering with government agency Malaysia Digital Economy Corp to set up a fund of size targeted at $100 million, an official of the country's digital ministry told Reuters. It will invest in Malaysia's gaming industry, the official added. Separately, CGS International is teaming up with Fullgoal Asset Management Hong Kong and Bursa Malaysia to ease the listing of foreign-underlying ETFs in Malaysia, particularly those offering China exposure. The first such listings are expected within 12 to 18 months, pending regulatory clearance, Fong said. China is Southeast Asia's largest trading partner, with annual two-way trade rising 12% to $982 billion in 2024, Chinese customs data shows. Malaysia has secured 2.97 billion ringgit ($702 million) in confirmed investments from leading Chinese technology companies, Reuters reported on Wednesday, citing its digital ministry. The funds will go to develop artificial intelligence capabilities and next-generation digital infrastructure, and create 6,800 high-value digital jobs, the ministry added.
Yahoo
an hour ago
- Business
- Yahoo
Exclusive-China Galaxy, CICC plan over $1 billion investment funds in Southeast Asia
By Yantoultra Ngui and Rae Wee SINGAPORE (Reuters) -State-backed investment banks China International Capital Corp and China Galaxy Securities plan to launch funds worth a total of more than $1 billion in Southeast Asia, seeking to grab a slice of a lucrative market amid a U.S. tariff war. The move heralds a shift in investment focus for the banks, typically focused on the domestic market, and comes as Beijing encourages its financial champions to support outbound investment and deepen regional economic ties. Units of CICC and China Galaxy expect to launch the investment funds over the next 1-1/2 years, a top executive and a person with knowledge of the matter told Reuters. "As the tariff wars continue and Chinese corporates accelerate their 'China plus N' strategy, they seek local expertise in Southeast Asia," said Carol Fong, chief executive of CGS International, a unit of China Galaxy Securities. Such regional knowledge will aid efforts to expand in areas such as supply chain and distribution, she added. 'China plus N' refers to Chinese companies' diversification strategy to expand supply chains and operations beyond their home country to mitigate geopolitical risk. CGS is looking to launch next year a private equity fund of up to $1 billion that aims to facilitate investments and capital flows between China and Southeast Asia, Fong added. The fund will target high-growth sectors such as healthcare, AI, advanced manufacturing, renewable energy and consumer, offering investors exposure to emerging opportunities across both China and Southeast Asia, she said. The banks' push into Southeast Asia also underscores Beijing's efforts to boost regional ties since U.S. President Donald Trump unveiled hefty import tariffs in his global trade war that targeted China with even heavier levies. China and the United States agreed in May to pause some tariffs, but the region of 11 countries with a population of more than half a billion is increasingly becoming a target for Chinese companies seeking growth overseas. "Southeast Asia's huge market and growth potential presents a big opportunity for Chinese firms," Fong said. LARGEST TRADING PARTNER CICC Capital, the private equity investment arm of CICC, is partnering with government agency Malaysia Digital Economy Corp to set up a fund of size targeted at $100 million, an official of the country's digital ministry told Reuters. It will invest in Malaysia's gaming industry, the official added. Separately, CGS International is teaming up with Fullgoal Asset Management Hong Kong and Bursa Malaysia to ease the listing of foreign-underlying ETFs in Malaysia, particularly those offering China exposure. The first such listings are expected within 12 to 18 months, pending regulatory clearance, Fong said. China is Southeast Asia's largest trading partner, with annual two-way trade rising 12% to $982 billion in 2024, Chinese customs data shows. Malaysia has secured 2.97 billion ringgit ($702 million) in confirmed investments from leading Chinese technology companies, Reuters reported on Wednesday, citing its digital ministry. The funds will go to develop artificial intelligence capabilities and next-generation digital infrastructure, and create 6,800 high-value digital jobs, the ministry added. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 hours ago
- Business
- Bloomberg
Standard Chartered Announces Fresh Share Buyback as Profit Beats
Standard Chartered Plc announced a fresh $1.3 billion share buyback as it reported second-quarter earnings that beat expectations amid the tumult caused by US President Donald Trump's tariff war. The London-headquartered bank said Thursday that it would repurchase $1.3 billion of its own stock as part of a plan to return at least $8 billion to shareholders between 2024 and 2026. It earlier announced a $1.5 billion buyback in February.
The Verge
17 hours ago
- Business
- The Verge
Will online safety laws become the next tariff bargaining chip?
President Donald Trump and other Republicans have railed for years against foreign regulation of US tech companies, including online safety laws. As the US fights a global tariff war, it may bring those rules under fire — just as some of them are growing teeth. Over the past weeks, Trump has touted a blitz of trade deals, seeking concessions from countries in exchange for lower tariffs. This has coincided with the rollout of new child safety measures in the European Union and United Kingdom, most recently a new phase of the UK's Online Safety Act (OSA), which effectively age-gates porn, bullying, and self-harm promotion, as well as other categories of content considered harmful to kids. Several major tech platforms have willingly implemented age verification systems or limited access to forums that might contain adult content. But they've lobbied against such measures in the US, and they've generally opposed foreign laws that might disproportionately impact US firms. Information Technology and Innovation Foundation, a tech-funded nonprofit, has referred to Europe's key competition and content moderation rules as 'non-tariff attacks' and complained they unfairly target American businesses and 'extract exorbitant fines.' During tariff negotiations, Trump has been open about pushing countries to drop laws that he dislikes. The EU's Digital Markets Act (DMA) and Digital Services Act (DSA) have arguably taken the brunt of the ire so far, as have digital services taxes, which Canada removed under pressure from Trump last month. But the OSA came up recently in the context of Trump's own online platform, Truth Social, which could plausibly be subject to the law. 'If they censor me, you're making a mistake' At a July 28th press conference with Trump and British Prime Minister Keir Starmer, a reporter asked about 'new powers' that could be used to censor sites like Truth Social. Starmer said the UK was not trying to censor people online, simply protect kids from harmful content, but Trump made a subtle threat in a lighthearted tone. 'I cannot imagine him censoring Truth Social,' Trump said. 'I only say good things about him and his country, so if they censor me, you're making a mistake.' Trump quickly touted his own online content regulation bill, the Take It Down Act, which has been similarly criticized as a potential vehicle for censorship. Tech companies' objection to age verification and other child safety rules have been more muted than their criticism of the DMA and DSA in general. They may not see an existential threat in implementing age verification processes, compared with a potential antitrust investigation and breakup or the DSA's huge fines for not addressing harmful content. But the US hasn't landed on a clear vision for internet safety regulation, creating a mismatch between its laws and those abroad. Mariana Olaizola Rosenblat, a policy advisor on technology and law at the NYU Stern Center for Business and Human Rights, says that in the 'vacuum' of a US legislative standstill and trivial self-regulation, 'foreign jurisdictions have been left with little choice but to act.' That leaves room for tension, depending particularly on how heavily UK regulator Ofcom enforces the OSA — in other words, how much trouble it causes tech companies. Posts from this author will be added to your daily email digest and your homepage feed. See All by Lauren Feiner Posts from this topic will be added to your daily email digest and your homepage feed. See All Analysis Posts from this topic will be added to your daily email digest and your homepage feed. See All Features Posts from this topic will be added to your daily email digest and your homepage feed. See All Law Posts from this topic will be added to your daily email digest and your homepage feed. See All Policy Posts from this topic will be added to your daily email digest and your homepage feed. See All Politics Posts from this topic will be added to your daily email digest and your homepage feed. See All Regulation Posts from this topic will be added to your daily email digest and your homepage feed. See All Speech
CTV News
7 days ago
- Business
- CTV News
Canada's economy to see negative growth amid Trump tariffs: CFIB
The Canadian Federation of Independent Business expects to see negative growth in Canada's economy. THE CANADIAN PRESS/Nathan Denette The Canadian Federation of Independent Business (CFIB) expects to see negative growth in Canada's economy as businesses face low confidence driven by U.S. President Donald Trump's tariff war and its impact on supply chains. The advocacy group, representing Canadian owners of small and mid-size businesses, released a report Thursday, based on responses from 719 CFIB members. 'While we forecast a contraction in the economy, at the same time certain indicators point out that it is normalizing in some ways,' said Simon Gaudreault, CFIB's chief economist and vice-president of research, in a news release. 'Inflation remains stable which puts us in a favourable position to contemplate easier monetary policy for the second half of the year. However, with Canada seeing a 1.9 per cent inflation and unexpectedly adding jobs in June, the Bank of Canada may now decide to maintain its interest rate on July 30.' Statistics Canada's consumer price index (CPI), which measures inflation, slowed to 1.8 per cent in the second quarter and is expected to rise slightly to 1.9 per cent in the third quarter. The CFIB states the overall deceleration in prices was mainly driven by falling energy costs and lower prices for travel services, while increases in food and shelter costs provided some upward pressure. The CFIB said gross domestic product (GDP) fell by 0.8 per cent in the second quarter and is expected to decline further by another 0.8 per cent in the third quarter. It said the contraction reflects persistently low business confidence, driven by trade tensions, and weakness in manufacturing, particularly in the transportation, machinery, and oil and gas sectors. Canada–U.S. trade tensions causing high uncertainty The group highlighted a Statistics Canada report that notes 48 per cent of businesses experienced supply chain disruptions over the past three months, and 64 per cent expect conditions to worsen. The CFIB anticipates private investment will nosedive by 13.0 per cent in the second quarter and further drop by 6.9 per cent in third quarter. The national private sector job vacancy rate held steady at 2.8 per cent in the second quarter representing 397,00 unfilled positions. 'The one step forward, on step back trade situation is driving low business confidence, translating into paused or cancelled investment,' said Gaudreault. 'As trade tensions drag on, more businesses will be slowly adjusting to tariff threats and finding alternatives.' The highest vacancy rates were in personal services and construction. On a yearly basis, information, arts and recreation (-0.8), agriculture (-0.8), personal services (-0.6), and natural resources (-0.6) saw the biggest drop in their vacancy rates. Manufacturing was the only sector reporting an increase (+0.1). Retail sales slowed in the second quarter, growing by 4.6 per cent. The CFIB said many businesses and organizations wanted to place orders ahead of the tariffs' implementation. They said growth is expected to moderate to increase by 2.0 per cent in third quarter. T The organization said wholesale and manufacturing businesses reported the highest impact from Canada-U.S. border delays, at 42 per cent and 40 per cent respectively. A proportion of 39 per cent of firms in personal services also reported disruptions, largely due to delays affecting repair shops for vehicles, household and commercial goods. Significant shares of businesses operating in retail (36 per cent) and construction (35 per cent) reported border delays, showing that supply chain bottlenecks affect both distribution networks and project-based work. In contrast, service-oriented sectors reported fewer disruptions as they rely less on cross-border logistics. Facing growing tariff-related pressures at the border, the CFIB said 62 per cent of small and medium enterprises have shifted to domestic markets. Nonetheless, supply chain disruptions remain widespread, revealing that the problem is not limited to international trade, but affecting internal logistics as well.
