Dollar Losing Allure for Chinese Traders Creates Runway for Yuan
The dollar's premium over the yuan, as reflected in 12-month swap points, has narrowed by 25% since the end of December. Chinese state-owned banks have gradually shifted from wanting dollars to reducing their demand for it, to offering it out, according to traders who declined to be identified as they're not authorized to speak publicly.
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Yahoo
25 minutes ago
- Yahoo
CK Hutchison ports deal deadline likely to be extended as US-China tensions weigh, sources say
By Clare Jim, Scott Murdoch and Davide Barbuscia HONG KONG (Reuters) -CK Hutchison's plan to sell most of its $22.8 billion ports business is unlikely to be finalised anytime soon, with political brinkmanship set to continue, and sources saying that a Sunday deadline for exclusive talks was likely to be extended. The Hong Kong conglomerate's plan to sell the business, which would include two ports along the strategically important Panama Canal, to a consortium led by BlackRock and Italian billionaire Gianluigi Aponte's family-run shipping company MSC, has become politicised amid an escalating China-U.S. trade war. Negotiations for the deal, which covers 43 ports in 23 countries, are on an exclusive basis between CK Hutchison, controlled by Hong Kong tycoon Li Ka-shing, and the consortium for 145 days until Sunday, as per the terms announced in March. The deal talks, however, are unlikely to collapse if the two parties do not ink a pact by Sunday, with three people close to the ports-to-telecoms conglomerate saying the parties could extend the deadline to continue exclusive negotiations. The first part of the deal - definitive documentation to sell two port operations near the Panama Canal - was also not signed by an April 2 deadline set in the sales announcement. The people declined to be named due to the sensitivity of the matter. BlackRock declined to comment. CK Hutchison and MSC Mediterranean Shipping Company, which CK Hutchison said in May was the main investor in the consortium, did not respond to requests for comment. U.S. President Donald Trump hailed the deal as "reclaiming" the Panama Canal, after his administration previously called for the removal of what it said was Chinese ownership of the ports near the canal. But in April, China's top market regulator said that it was paying close attention to CK Hutchison's planned sale and that parties to the deal should not try to avoid an antitrust review. Beijing's stance on the planned deal was made public after pro-China media launched a stinging criticism, saying China had significant national interests in the transaction and it would be a betrayal of the country. "I think at this moment it's not very optimistic that they can directly sell the ports to the consortium," said Jackson Chan, global fixed income senior manager at FSMOne Hong Kong, which has clients holding CK Hutchison bonds. "The market has already digested the news, even if it announces next week that it won't sell anymore, I don't think it'll be a shock because the market understands it wouldn't have a large impact on its operations." DEAL RISKS CK Hutchison shares, which jumped 33% the following two days after the deal was announced in early March, erased all of the gains by mid-April. But since then it regained lost ground along with the rise in the broader Hong Kong market index. The outlook for the deal has been clouded further in recent days, with a separate source telling Reuters that Chinese ports operator China Cosco Shipping Corp (COSCO) was also looking to join the consortium to buy the ports business. COSCO is requesting veto rights or equivalent power in the entity that will take over 43 ports from CK Hutchison, Bloomberg News reported this week, citing people familiar with the matter. COSCO did not respond to a request for comment. The existing consortium would likely allow COSCO into the deal, said Cathy Seifert, an analyst at CFRA Research. "The bigger risk to the deal being consummated, in my opinion, is likely the Trump administration, which is likely to block a deal that would include China," said the New Jersey-based analyst who tracks BlackRock. Ballingal Investment Advisors strategist David Blennerhassett, who publishes on the independent online research platform Smartkarma, said the addition of COSCO in the consortium was likely to enrage Trump. "Trump, who has a handful of issues already on his plate, would be incandescent," he said. 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
- Bloomberg
HSBC, Standard Chartered Tested by Geopolitical Woes as Valuations Climb
By , Justina T Lee, Harshita Swaminathan, and Reina Sasaki Save How HSBC Holdings Plc and Standard Chartered Plc have managed to cope with uncertainty on trade and interest rate trajectories will be on display in next week's earnings. Momentum in wealth management and cost savings will be key for HSBC's growth amid risks from President Donald Trump's tariffs, which threaten the bank's Asia-focused global trade business model, according to Bloomberg Intelligence. Similarly, Standard Chartered's wealth-management performance, efficiency efforts and the resilience of its cross-border network revenue to tariff and trade risks have provided support, BI said in a separate note.
Yahoo
4 hours ago
- Yahoo
TikTok Will ‘Go Dark' Soon if China Does Not Strike Deal, Commerce Secretary Says
Howard Lutnick says TikTok's algorithm must be sold for the popular app to remain active past Sept. 17 No more extensions. TikTok will 'go dark' if China does not cut a deal with the Trump administration that transfers control of the app's technology and algorithm, U.S. Commerce Secretary Howard Lutnick said on Thursday. More from TheWrap TikTok Will 'Go Dark' Soon if China Does Not Strike Deal, Commerce Secretary Says Trump Says It Is 'Not Do-able' for AI Companies to Pay for All Copyrighted Content Used in Training Models YouTube Ad Revenue Up 13% Year-Over-Year in 2nd Quarter of 2025, Hitting $9.8 Billion Oracle in Talks With Paramount-Skydance for $100 Million Cloud Deal | Report Lutnick was discussing the ongoing TikTok negotiation during an appearance on CNBC's 'Squawk on the Street.' TikTok's parent company, Beijing-based ByteDance, is currently facing a Sept. 17 deadline to offload the app's American operation or face being banned in the States. 'We've made the decision: you can't have Chinese control and have something on 100 million American phones. That's just not okay,' Lutnick said. He continued: 'So if it's in American control, and, you know, China can have a little piece, or ByteDance, the current owner, can keep a little piece. But basically, Americans will have control. Americans will own the technology, and Americans will control the algorithm.' His comments come after TikTok has received multiple extensions from the president to reach a deal on selling its U.S. app. TikTok was initially set to be banned on Jan. 19, after President Joe Biden signed a law last year requiring ByteDance to sell TikTok's American operation. The chief concern lawmakers had was that TikTok could act as a stealth spyware app for China's communist government, as ByteDance is required by Chinese law to hand over any user data the government asks for. President Trump, on his first day back in office on Jan. 20, gave TikTok a 75-day extension to make a deal, and the app's future in the U.S. has remained in limbo ever since. The president gave TikTok a second extension in April, and then another one last month, making Sept. 17 the latest deadline. In late June, White House Press Secretary Karoline Leavitt said President Trump's 'main goal' is making sure TikTok remains available in the U.S. — 'while protecting [Americans'] privacy and security.' TikTok has said it has 170 million American users. On Thursday, Lutnick said TikTok is 'not really' part of a larger trade deal being discussed with China. But he also said it is hard for the topic to not come up 'unofficially' during discussions with Chinese diplomats. You can watch part of Lutnick's CNBC appearance by clicking here. The post TikTok Will 'Go Dark' Soon if China Does Not Strike Deal, Commerce Secretary Says appeared first on TheWrap.
