The fate of incoming Labour business and industry secretaries seems to be to launch emergency rescue packages for industries that would otherwise face imminent closure. Witness Jonathan Reynolds at last Saturday’s extraordinary parliamentary recall arguing for the legal right to take over the running of British Steel from its Chinese owner, Jingye, in order to save up to 3,500 jobs and Britain’s strategic capacity to make steel. And witness Tony Benn, in 1974, offering a financial lifeline to 3,000 workers forming a cooperative to save motorcycle manufacture at the failed…
Tag: Financial sector
‘It’s legalised robbery’: anger grows at China’s struggling shadow banks
Wang Jin felt sure that he could invest in Sichuan Trust, an institution that was part of one of what he describes as the “four pillars” of China’s financial system: banks, securities, insurance and trusts. Promised a return on his investment of 8.3%, he handed over 1.6m yuan (£178,000) in 2019. “The trust had a state licence, so we believed in its integrity,” Wang (not his real name) recalls. Unluckily for him, in May 2020, the company said that it would be unable to repay 20bn yuan of investments. Protests…
Moody’s cuts China credit outlook to negative as economy slows
China’s ability to repay its government borrowing has been downgraded by the credit rating agency Moody’s, which said the ripple effects from a crisis in the property sector would undermine efforts to revive its flagging economy. Moody’s warned that Beijing would need to bail out local and regional governments and state-owned enterprises that were struggling with rising debts, hampering efforts to boost investment and growth. The rating agency downgraded its outlook for Chinese sovereign bonds from stable to negative on Tuesday, sending a signal to potential lenders that the risk…
UK will not return to close relationship with China of Cameron era, Sunak says
Rishi Sunak has said the UK will not have a return to the close relationship with China pursued under David Cameron, as the prime minister met business leaders in an effort to drum up foreign investment. The government on Monday said £29.5bn of new investment had been earmarked for the UK, including projects by the ScottishPower owner, Iberdrola, and BioNTech, the German company which partnered with Pfizer on its Covid vaccine. Sunak met the heads of multinational firms including Goldman Sachs, Blackstone and JP Morgan at the summit in Hampton…
Banks pumped more than $150bn in to companies running ‘carbon bomb’ projects in 2022
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…
The Guardian view on the world economy: another bleak era beckons | Editorial
Remember the roaring 20s? Even as Covid gripped the world, optimists piped up that the economy would come roaring out of the pandemic, bolstering incomes and kickstarting an almighty boom. Harking back to the Spanish flu pandemic of a century earlier, they saw a decade of glorious growth ahead. Well, they were wrong. Ahead lies not roaring but snoring; no boom, but ever-deepening gloom. That is the message from the International Monetary Fund and the World Bank, which are holding their spring meetings in Washington DC this week. In its…
Could Putin be exploring cryptocurrencies to bypass western sanctions?
As many people do when discussing the complex world of cryptocurrencies, Vladimir Putin kept it simple: “Of course, we also have certain competitive advantages here, especially in the so-called mining.” After events this weekend, when Russia was hit by severe financial sanctions, the Russian president might be considering capitalising on those advantages. Putin was speaking in January, days after the country’s central bank proposed a blanket ban on cryptocurrency trading and mining. In the case of bitcoin, the cornerstone cryptocurrency, mining is the energy-intensive process by which computers verify new…