Connect with us

Economic

FirstFT: “I’m ready to talk” to Putin about ending the Ukraine war, says Biden

Avatar

Published

on

good morning. This article is an in situ version of our website FirstFT the news. Subscribe to our site AsiaAnd the Europe/Africa or The Americas A release to send straight to your inbox every weekday morning

US President Joe Biden said he was “ready to talk to” Vladimir Putin about the war in Ukraine if the Russian leader showed interest in him. to end the nine-month conflict.

“I’m willing to talk to Mr. Putin if there really is an interest in him deciding he’s looking for a way to end the war,” Biden said, adding that he would only do so after consulting NATO allies.

The remarks, made at a press conference in Washington, D.C., during a bilateral summit with Emmanuel Macron, the president of France, are the furthest Biden has gone in expressing his openness to discussing the war with Putin.

The US president said he had “no immediate plans” to contact the Russian leader, adding that he had not seen any indications from Putin that he was ready to end the war.

Advertisement

“He hasn’t done it yet. If that is the case, and in consultation with my French and NATO friends, I would be happy to sit down with Putin and see what he has in mind,” Biden said.

1. Blackstone limits withdrawals on a $125 billion real estate fund US Private Equity Group has Limited withdrawals from its REIT after an increase in redemption requests and with growing concerns about the long-term health of the commercial real estate market. Blackstone approved just 43 percent of the fund’s redemption requests last month.

2. Ramaphosa’s presidency is under threat South African Cyril Ramaphosa under Pressure to resign mounted After a parliamentary report concluded that he had abused his office in the fallout from the theft of more than $500,000 from his game farm. A spokesman for Ramaphosa said yesterday evening that Ramaphosa would not “rush” into a decision.

3. Inflation overwhelms food banks in Europe Across Europe, the use of food banks is rising as the highest inflation rate in a generation hits the region’s poorest countries. But with millions more struggling to make ends meet, many organizations have had to They closed their doors to new applicants.

A volunteer sorts food into boxes in Bochum, Germany
A volunteer sorts food into boxes in Bochum, Germany. More than a third of the country’s food banks have stopped accepting new members. © Ina Fassbender / AFP via Getty Images

4. Visa executives receive bonuses despite not meeting the growth target Company executives have received the card Millions of dollars in bonuses This year despite missing the “transactional growth” target the board said could have been achieved had it not been for the war in Ukraine. CEO Alfred Kelly received a $6.2 million bonus for 2022.

5. Defense firm Anduril raises nearly $1.5 billion Founded five years ago by Oculus co-founder Palmer Luckey, Anduril It raised nearly $1.5 billion in the second-largest venture capital round of the year in the US, marking a milestone for young technology companies trying to break into the notoriously difficult field of defensive procurement.

Advertisement

How good is it to keep up with the news this week? Take our test.

Coming days

Economic data and earnings Germany publishes trade balance figures for October and UK-based training consultancy Mindgame releases first-half results today.

Prince William and Kate to meet Joe Biden The Prince and Princess of Wales are in Boston today for the Earthshot Award Gala. They are He is expected to meet US President Joe Biden In the John F. Kennedy Presidential Library. (CBS)

OPEC+ meeting The oil ministers and their allies will meet virtually on Sunday, one day before European embargo on seaborne Russian crude oil enter into force. Premium subscribers can read more about the dilemma facing OPEC+ this week Energy Source Newsletter.

Join the Financial Times’ top journalists in conversation with leaders in business and government, including the President of Argentina, the Secretary General of NATO, the Deputy US Attorney General and many more at the Global Boardroom on December 7-9. Register for free to get your digital card today.

Advertisement

What else do we read

Simon Schama: Art vs. Tyrants With the streets of China and lately Iran “alive with angry and reluctant crowds, weary of institutional deceit,” the historian ponders how words, images, and music can be charged with poetry. They are deployed as Unbearable Weapons. “Culture can do this,” he writes, “because it can communicate human habits, needs and intuitions in ways that reveal the dehumanizing void of official propaganda.”

Simon Schama watching a movie
Simon Schama views Picasso’s powerful anti-war painting Guernica © BBC / Oxford Films / Eddie Knox

Inside the ‘iPhone City’ Covid Revolution Managers at the world’s largest iPhone factory in Zhengzhou, China, breathed a sigh of relief when local officials lifted a five-day lockdown across much of the city this week. But the The problems are not over yet to Apple contract manufacturer Foxconn, which is struggling to staff assembly lines for the pre-holiday peak season.

Incendiary claims about the UK census ‘do not reflect reality’ The latest slice of data from the 2021 UK Census, which includes figures on race and ethnicity, was immediately met with a barrage of incendiary reactions. But almost all of these claims are untrue. Writes our chief data correspondent, John Byrne Murdoch.

The graph shows that second generation immigrants to Britain show clear evidence of assimilation into majority culture

What to expect from the Wirecard experience On Thursday, a German criminal court will impose Start dissecting the meltdown Shameful payments company Wirecard. Three former top managers, including CEO Marcus Braun, face fraud, embezzlement, accounting and market manipulation charges in a trial that is expected to run until at least 2024.

Football’s VAR is a lesson in flawed technology The use of video assistive technology in the World Cup Provides an interesting case study About how difficult it is to achieve optimal product-market fit in a highly pressured environment that interests millions of die-hard followers in a big way, writes John Thornhill.

Eid gifts

Yinka Ilori, Brendon Babenzien, Tata Harper, Jody Williams, Rita Sodi, and others participate Secrets of buying the best gifts For fashion, beauty and home this holiday season.

New York-based designer Hilary Taymor
New York-based designer Hilary Taymor often gives her own brand clothes as gifts © Tonje Thilesen

Thank you for reading and remembering that you can Add FirstFT to myFT. You can also choose to receive a FirstFT push notification every morning on the app. Send your recommendations and feedback to firstft@ft.com

Climate chart: an explanation – Learn about the most important weather data for the week. Participation over here

Advertisement

Long story short – The biggest and best-read stories in one smart email. Participation over here


Source link

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Economic

We need to pay more attention to skewed economic signals

Avatar

Published

on

By

The writer is chair of Queen’s College, Cambridge and advisor to Allianz and Gramercy

Inflation was the dominant economic and financial issue of 2022 for most countries around the world, especially for advanced economies that have a consequential impact on the global economy and markets.

The effects have been seen in declining living standards, increasing inequality, increasing borrowing costs, stock and bond market losses, and occasional financial mishaps (fortunately small and so far contained).

In this new year, recession, both actual and feared, has joined inflation in the driving seat of the global economy and is likely to replace it. It’s a development that makes the global economy and investment portfolios subject to a wide range of possible outcomes — something that a growing number of bond investors seem to be aware of more than their equity counterparts.

Advertisement



International Monetary Fund iYou will likely review soon Her economic growth forecasts again, predicting that “a third of the world will be hit by recession this year”. What is particularly notable to me about these worsening global prospects is not only that the world’s three major economic regions – China, the European Union and the United States – are slowing down together, but also that this is happening for different reasons.

In China, a chaotic exit from the wrong Covid-19 policy is undermining demand and causing more supply disruptions. Such headwinds to domestic and global economic well-being will continue as long as China fails to improve the coverage and effectiveness of its vaccination efforts. The strength and sustainability of the subsequent recovery will also require that the country more vigorously renew a growth model that can no longer rely on greater globalization.

The European Union continues to deal with energy supply disruptions as the Russian invasion of Ukraine continues. Strengthening inventory management and reorientation of energy supplies is well advanced in many countries. However, it is not yet sufficient to lift immediate constraints on growth, let alone resolve long-term structural headwinds.

The United States has the least problematic view. The headwinds to growth are due to the Fed’s struggle to contain inflation after mischaracterizing rate increases as fleeting and then initially being too timid to adjust monetary policy.

The Fed’s shift to an aggressive front-load of interest rate hikes came too late to prevent the spread of inflation in the services sector and wages. As such, inflation is likely to remain stubborn at around 4 percent, be less sensitive to interest rate policies and expose the economy to greater risk for accidents from additional policy errors that undermine growth.

Advertisement



The uncertainties facing each of these three economic areas suggest that analysts should be more careful in reassuring us that recessionary pressures will be “short and shallow”. They need to be open, if only to avoid repeating the mistake of prematurely dismissing inflation as transient.

This is especially important because these diverse drivers of recessionary risk make financial fragility more threatening and policy shifts more difficult, including potentially Japan. Get out of interest rate control Policy. The range of possible outcomes is extraordinarily large.

On the one hand, a better policy response, including improving the supply response and protecting the most vulnerable populations, can counteract the global economic slowdown and, in the case of the United States, avert a recession.

On the other hand, additional policy errors and market turmoil can lead to self-reinforcing vicious cycles with rising inflation and rising interest rates, weakening credit and compressed earnings, and stressing market performance.

Judging by market prices, more bond investors are better understanding this, including by refusing to follow the Fed’s interest rate guidance this year. Instead of a sustainable path to higher rates for 2023, they believe recessionary pressures will lead to cuts later this year. If true, government bonds would provide the yield and potential for badly missed portfolio risk mitigation in 2022.

Advertisement



However, parts of the stock market is still weakly bearish pricing. Reconciling these different scenarios is more important than investors. Without better alignment within markets and with policy signals, the positive economic and financial outcomes we all desire will be no less likely. They will also be challenged by the risk of more unpleasant outcomes at a time of less economic and human resilience.

Source link

Continue Reading

Economic

Macro hedge funds end 2022 higher, investors say, while many others take big losses By Reuters

Avatar

Published

on

By

© Reuters. FILE PHOTO: Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York City, US, January 5, 2023. REUTERS/Andrew Kelly

By Svea Herbst Baylis

NEW YORK (Reuters) – Some hedge funds betting on macroeconomic trends have boasted of double and even triple-digit gains for 2022, while other high-profile companies that have long been on technology stocks have suffered heavy losses in volatile markets, investors said.

Rokos Capital, run by Chris Rokos and one of a handful of so-called global macro companies, gained 51% last year. Fund investors this week, who asked not to be identified, said Brevan Howard Asset Management, the company where Rokos once worked, posted a gain of 20.14% and Caxton Associates returned 16.73%.

Haider Capital Management’s Haider Jupiter Fund rose 193%, an investor said.

Advertisement



Data from hedge fund research showed that many macro managers have avoided crumbling stock markets that have been rocked by rapid interest rate increases and geopolitical turmoil, including the war in Ukraine, to rank among the best performers in the hedge fund industry. The company’s macro index rose 14.2% while the general index of hedge funds fell 4.25%, its first loss since 2018.

Equity hedge funds, where the bulk of the industry’s roughly $3.7 trillion in assets are invested, fared worse with a loss of 10.4%, according to HFR data. And while that beat the broader stock market’s loss of 19.4%, some high-profile funds posted even bigger losses.

Tiger Global Management lost 56% while Whale Rock Capital Management ended the year with a 43% loss and Maverick Capital lost 23%. Coatue Management ended 2022 with a loss of 19%.

But not all companies that bet on technology stocks suffered. John Thaler JAT Capital finished the year with a 3.7% gain after fees after a 33% increase in 2021 and a 46% gain in 2020.

Sculptor Capital Management (NYSE::), where founder Dan Och is fighting the company’s current CEO in court over his salary increase, posted a 13% drop.

Advertisement



David Einhorn’s Greenlight Capital, which bet that Elon Musk would be forced to buy Twitter, ended the year up 37% while Rick Sandler’s Eminence Capital rose 7%.

A number of so-called multi-manager companies where teams of portfolio managers bet on a variety of sectors also boast positive returns and have been able to deliver on their promise that hedge funds can deliver better returns in distressed markets.

Balyasny’s Atlas Fund (NYSE: Enhanced) gained 9.7%, while Point72 Asset Management gained 10%. Millennium Management gained 12% while Carlson Capital ended the year with a 7% gain.

Representatives for the companies either did not respond to requests for comment or declined to comment.

Source link

Advertisement



Continue Reading

Economic

German automakers point to easing supply chain problems

Avatar

Published

on

By

Sales at BMW and Mercedes-Benz jumped in the final months of 2022 as the German premium auto brands indicated supply chain problems plaguing the industry were abating.

Automakers around the world have experienced parts shortages since the pandemic, especially semiconductors, leaving many of them with large fleets of incomplete vehicles that can’t be delivered to customers.

BMW and Mercedes each said their full-year vehicle deliveries fell last year by 4.8 percent and 1 percent, respectively, due to Suppliers Bottlenecks as well as lockdowns in China and the war in Ukraine.

But supply pressures eased in the last quarter of the year, as BMW recorded a 10.6 percent jump in sales, with 651,798 vehicles delivered, and Mercedes fulfilling 540,800 orders, up 17 percent from the same period in 2022.

Advertisement



BMW He said the main effects of supply chain bottlenecks and continued lockdowns were felt in the first six months of the year, adding that “sales were steadily picking up in the second half.”

Mercedes boss Ula Kallenius told the Financial Times last week that the list of problems in the auto supply chain was declining, but added that long waits for cars would continue into 2023.

“One chip is enough to be vital [ . . .] Missing, and then you can’t finish the car, even if you have everything else.

Both brands recorded strong sales growth electric car. Mercedes, which last week announced a plan to build 10,000 charging docks, said EV shipments grew 124 percent to 117,800 last year compared with its predecessor.

Similarly, BMW reported strong growth in electric vehicle sales, with deliveries of fully electric vehicles doubling last year to 215,755.

Advertisement



Analysts at Bank of America said that sales of electric vehicles, including hybrid cars, reached a historic peak last November, with 1.1 million units sold. They attributed this largely to the upcoming phase-out of customer subsidies in Germany.

Participate in Mercedes BMW and BMW prices held steady Tuesday morning as investors priced in an image of an improving showing.

Rolls-Royce, a subsidiary of BMW, announced Monday that sales have hit a 119-year record, driven by strong demand in the United States, its largest market.

The luxury brand has been largely unaffected by the semiconductor pressure, mainly because it makes relatively few compounds and therefore needs fewer chips.

Source link

Advertisement



Continue Reading
Advertisement

Trending