Tag Archives: REOP

Pro-Western, retired general Pavel sweeps Czech presidential vote

  • Pavel wins in runaway vote over ex-PM Babis
  • Pavel gives clear support backing Ukraine, West
  • Pledges to end divisions brought by Babis, incumbent Zeman
  • Voter turnout record high in presidential election

PRAGUE, Jan 28 (Reuters) – Former army chief and high NATO official Petr Pavel won the Czech Republic’s presidential election on Saturday with a pledge to keep the country firmly anchored in the West and bridge society’s political differences.

Pavel, a 61-year-old retired general running for office for the first time, won 58.3% of the vote with all voting districts reporting final results, defeating billionaire ex-premier Andrej Babis, a dominant but polarising force in Czech politics for a decade.

Pavel, a social liberal who had campaigned as an independent and gained the backing of the centre-right government, conveyed a message of unity when addressing his supporters and journalists at a Prague concert venue on Saturday as results showed he had won.

“Values such as truth, dignity, respect and humility won,” he said.

“I am convinced that these values are shared by the vast majority of us, it is worth us trying to make them part of our lives and also return them to the Prague Castle and our politics.”

Pavel has also fully backed continued support for Ukraine in its defence against Russia’s invasion.

Czech presidents do not have many day-to-day duties but they pick prime ministers and central bank heads, have a say in foreign policy, are powerful opinion makers, and can push the government on policies.

Pavel will take office in March, replacing outgoing Milos Zeman, a divisive figure himself during his two terms in office over the past decade who had backed Babis as his successor.

Zeman had pushed for closer ties with Beijing and also with Moscow until Russia invaded Ukraine, and Pavel’s election will mark a sharp shift.

Turnout in the runoff vote that ended on Saturday was a record high 70.2%.

The result of the election will only become official when published in a legal journal on Tuesday, but the outcome of the poll was already clear on Saturday.

Babis, 68, a combative business magnate who heads the biggest opposition party in parliament, had attacked Pavel as the government’s candidate. He sought to attract voters struggling with soaring prices by vowing to push the government do more to help them.

Babis and Prime Minister Petr Fiala congratulated Pavel on his victory. Slovakia’s liberal President Zuzana Caputova appeared at Pavel’s headquarters to congratulate him, a demonstration of their close political positions.

Ukrainian President Volodymyr Zelenskiy congratulated Pavel on his election on Twitter and said he looked forward to close cooperation.

Reuters Graphics

EU AND NATO TIES

Pavel has backed keeping the central European country of 10.5 million firmly in the European Union and NATO military alliance, and supports the government’s continued aid to Ukraine.

He supports adopting the euro, a topic that successive governments have kept on the back burner, and supports same-sex marriage and other progressive policies.

A career soldier, Pavel joined the army in Communist times, was decorated with a French military cross for valour during peacekeeping in former Yugoslavia in the 1990s, and later rose to lead the Czech general staff and become chairman of NATO’s military committee for three years before retiring in 2018.

“I voted for Mr. Pavel because he is a decent and reasonable man and I think that the young generation has a future with him,” said Abdulai Diop, 60, after voting in Prague on Saturday.

Babis had campaigned on fears of the war in Ukraine spreading, and sought to offer to broker peace talks while suggesting Pavel, as a former soldier, could drag the Czechs into a war, a claim Pavel rejected.

Reporting by Robert Muller, Jason Hovet and Jan Lopatka; Additional reporting by Jiri Skacel and Fedja Grulovic; Editing by Hugh Lawson, David Holmes and Helen Popper

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Factbox: FACTBOX Georgia on his mind: Donald Trump troubled by more legal woes

Jan 25 (Reuters) – Donald Trump could learn soon whether he or any associates will be charged or cleared of wrongdoing in a Georgia probe into his efforts to overturn his 2020 election defeat, one of a series of legal threats looming over the Republican former U.S. president:

GEORGIA ELECTION TAMPERING PROBE

On Tuesday, the prosecutor in the state of Georgia spoke to a judge on behalf of a special grand jury empanelled in May to investigate Trump’s alleged efforts to influence that state’s 2020 election results.

Fani Willis, the Fulton County district attorney and a Democrat who will ultimately decide whether to pursue charges against Trump or anyone else, said the grand jury had completed its task and decisions were “imminent.”

The investigation focuses in part on a phone call Trump made to Georgia Secretary of State Brad Raffensperger, a Republican, on Jan. 2, 2021. Trump asked Raffensperger to “find” enough votes needed to overturn Trump’s election loss in Georgia.

Legal experts said Trump may have violated at least three Georgia criminal election laws: conspiracy to commit election fraud, criminal solicitation to commit election fraud and intentional interference with performance of election duties.

Trump could argue that his discussions were constitutionally protected free speech.

U.S. CAPITOL ATTACK

The U.S. Justice Department has investigations under way into both Trump’s actions in the 2020 election and his retention of highly classified documents after departing the White House in 2021.

Both investigations involving Trump are being overseen by Jack Smith, a war crimes prosecutor and political independent. Trump has accused the FBI, without evidence, of launching the probes as political retribution.

A special House of Representatives committee investigating the deadly Jan. 6, 2021, assault by Trump supporters on the U.S. Capitol urged the Justice Department to charge Trump with corruption of an official proceeding, conspiracy to defraud the United States, conspiracy to make a false statement and inciting or aiding an insurrection.

The request is non-binding. Only the Justice Department can decide whether to charge Trump, who has called the Democratic-led panel’s investigation a politically motivated sham.

MISSING GOVERNMENT RECORDS

U.S. Attorney General Merrick Garland appointed Smith to investigate whether Trump improperly retained classified records at his Florida estate after he left office in 2021 and then tried to obstruct a federal investigation.

Garland also appointed former U.S. Attorney Robert Hur for Maryland to investigate the removal of classified records in President Joe Biden’s possession dating to his time as vice president.

It is unlawful to willfully remove or retain classified material.

In Trump’s case, the FBI seized 11,000 documents from the former president’s Mar-a-Lago Florida estate in a court-approved Aug. 8 search. About 100 documents were marked classified; some were designated top secret, the highest level of classification.

Trump has accused the Justice Department of engaging in a partisan witch hunt.

NEW YORK ATTORNEY GENERAL CIVIL LAWSUIT

New York Attorney General Letitia James said in a civil lawsuit filed in September that her office uncovered more than 200 examples of misleading asset valuations by Trump and the Trump Organization business between 2011 and 2021.

Former U.S. President Donald Trump speaks during a rally in Commerce, Georgia, U.S. March 26, 2022. REUTERS/Alyssa Pointer/File Photo

A Democrat, James accused Trump of inflating his net worth by billions of dollars to obtain lower interest rates on loans and get better insurance coverage.

A New York judge ordered that an independent monitor be appointed to oversee the Trump Organization before the case goes to trial in October 2023.

James seeks to permanently bar Trump and his children Donald Jr., Eric and Ivanka Trump from running companies in New York state, and to prevent them and his company from buying new properties and taking out new loans in the state for five years.

James also wants the defendants to hand over about $250 million that she says was obtained through fraud.

Trump has called the attorney general’s lawsuit a witch hunt. A lawyer for Trump has called James’ claims meritless.

James said her probe also uncovered evidence of criminal wrongdoing, which she referred to federal prosecutors and the Internal Revenue Service for investigation.

DEFAMATION CASE

E. Jean Carroll, a former Elle magazine writer, has filed two lawsuits accusing Trump of having defamed her when he denied her allegation that he raped her in New York’s Bergdorf Goodman department store dressing room in late 1995 or early 1996.

Trump accuses her of lying to drum up sales for a book.

Carroll first sued Trump after he denied the accusation in June 2019 and told a reporter at the White House that he did not know Carroll, that “she’s not my type,” and that she concocted the claim to sell her new memoir.

The second lawsuit arose from an October 2022 social media post where Trump called the rape claim a “hoax,” “lie,” “con job” and “complete scam,” and said “this can only happen to ‘Trump’!”

That lawsuit includes a battery claim under the Adult Survivors Act, which starting last Nov. 24 gave adults a one-year window to sue their alleged attackers even if statutes of limitations have expired.

A U.S. judge on Jan. 13 rejected as “absurd” Trump’s effort to dismiss the second lawsuit.

Trump and Carroll are awaiting a decision from a Washington, D.C., appeals court on whether, under local law, Trump should be immune from Carroll’s first lawsuit over his June 2019 comments.

That lawsuit would likely be dismissed if the court decided that Trump spoke within his role as president, and continue if Trump spoke in his personal capacity as Carroll argues.

Any decision would have no effect on Carroll’s second defamation and battery lawsuit. A trial in the first lawsuit is scheduled for April 10.

NEW YORK CRIMINAL PROBE

Although Trump was not charged with wrongdoing, his real estate company was found guilty on Dec. 6 of tax fraud in New York state. A judge this month sentenced Trump’s namesake real estate company to pay a $1.6 million criminal penalty, the maximum the judge could impose.

Jurors convicted the Trump Organization, which operates hotels, golf courses and other real estate around the world, of paying personal expenses for top executives including former chief financial officer Allen Weisselberg, and issuing bonus checks to them as if they were independent contractors.

Weisselberg, the company’s former chief financial officer, pleaded guilty and was required to testify against the Trump Organization as part of his plea agreement. He is also a defendant in James’ civil lawsuit.

Reporting by Joseph Ax, Luc Cohen, Karen Freifeld, Sarah N. Lynch, Jonathan Stempel and Jacqueline Thomsen; Editing by Howard Goller

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Trump executive Weisselberg prepares for jail on Rikers Island

NEW YORK, Jan 10 (Reuters) – A longtime executive for Donald Trump is expected to be sent to New York’s notorious Rikers Island jail after being sentenced on Tuesday for helping engineer a 15-year tax fraud scheme at the former president’s real estate company.

Allen Weisselberg, the Trump Organization’s former chief financial officer, pleaded guilty in August, admitting that from 2005 to 2017 he and other executives received bonuses and perks that saved the company and themselves money.

Weisselberg is expected to be sentenced to five months behind bars, after paying nearly $2 million in taxes, penalties and interest and testifying at the criminal trial of the Trump Organization, which was convicted on all counts it faced.

The sentence will be imposed by Justice Juan Merchan, who oversaw the trial in a New York state court in Manhattan. Weisselberg would likely serve 100 days with time off for good behavior.

Those days will probably not be easy for Weisselberg, 75, at a jail known for violence, drugs and corruption. Nineteen inmates there died last year.

“You’re going into a byzantine black hole,” said Craig Rothfeld, a prison consultant helping Weisselberg prepare for lockup.

50-YEAR RELATIONSHIP

Many convicts in New York City facing one year or less behind bars head to Rikers Island, which lies between the New York City boroughs of Queens and the Bronx and houses more than 5,900 inmates.

Rothfeld spent more than five weeks at Rikers in 2015 and 2016 as part of an 18-month sentence for defrauding investors and tax authorities when he was chief executive of the now-defunct WJB Capital Group Inc.

He now runs Inside Outside Ltd, which advises people facing incarceration. Another client is Harvey Weinstein, the former Hollywood movie producer convicted twice of rape.

After being sentenced, Weisselberg will likely be driven to Rikers and trade his street clothes for a uniform and sneakers with velcro straps.

Rothfeld said he hopes Weisselberg will be segregated from the general population, and not placed in a dorm with inmates who may not know him but will know his boss, who is seeking the presidency in 2024.

“Certainly Mr. Weisselberg’s 50-year relationship with the former president is on all our minds,” Rothfeld said.

A spokesman for the city’s Department of Correction said the agency’s mission is “to create a safe and supportive environment for everyone who enters our custody.”

Rikers is scheduled to close in 2027.

STAR WITNESS

Weisselberg was the star government witness against his employer.

He told jurors that Trump signed bonus and tuition checks, and other documents at the heart of prosecutors’ case, but was not in on the tax fraud scheme.

Though no longer CFO, Weisselberg remains on paid leave from the Trump Organization. He testified in November that he hoped to get a $500,000 bonus this month.

Weisselberg testified that the company is paying his lawyers. It is paying Rothfeld as well, a person familiar with the matter said. Rothfeld declined to comment.

Trump was not charged and has denied wrongdoing. The Manhattan District Attorney’s office is still investigating his business practices.

Merchan will also sentence the Trump Organization on Friday. Penalties are limited to $1.6 million.

Weisselberg remains a defendant in New York Attorney General Letitia James’ $250 million civil lawsuit alleging that Trump and his company inflated asset values and Trump’s net worth.

Rothfeld said he advised Weisselberg not to go outside at Rikers because of the risk of violence in courtyards, and not to interject himself into conversations between other inmates.

“The goal is to keep to yourself,” Rothfeld said.

Reporting by Karen Freifeld; Editing by Richard Chang

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Trump Organization found guilty of tax fraud scheme

NEW YORK, Dec 6 (Reuters) – Donald Trump’s real estate company was convicted on Tuesday of carrying out a 15-year-long criminal scheme to defraud tax authorities, adding to the legal woes facing the former U.S. president as he campaigns for the office again in 2024.

The Trump Organization – which operates hotels, golf courses, and other real estate around the world – was found guilty of paying personal expenses for top executives including former chief financial officer Allen Weisselberg, and issuing bonus checks to them as if they were independent contractors.

The company faces up to $1.6 million in fines after being convicted on all charges, including scheming to defraud tax authorities, conspiracy and falsifying business records. Trump was not charged in the case.

Justice Juan Merchan, who presided over the trial in state court in New York, set a sentencing date for Jan. 13.

While the fine is not expected to be material for a company of the Trump Organization’s size, the conviction could complicate its ability to do business.

Weisselberg, 75, testified as the government’s star witness as part of a plea deal that calls for a sentence of five months in jail.

Manhattan District Attorney Alvin Bragg, whose office prosecuted the case, called the verdict “very just.”

“The former president’s companies now stand convicted of crimes,” Bragg said in the New York courthouse after the verdict, speaking of the Trump Corporation and Trump Payroll Corporation, the two units of the Trump Organization which were convicted.

Asked if he regretted not charging Trump in the case, Bragg did not respond.

He has said that the office’s investigation into Trump is continuing.

APPEAL

Alan Futerfas, a lawyer for the Trump Organization, said the company would appeal and that the criminal law governing corporate liability was vague.

“It was central to the case,” he told reporters after the verdict.

The jury deliberated for about 12 hours over two days.

The case centered on charges that the company paid personal expenses like free rent and car leases for executives including Weisselberg without reporting the income, and gave them bonuses as non-employee compensation from other Trump entities like the Mar-a-lago Club, without deducting taxes.

According to testimony during the four-week trial, Trump himself signed the bonus checks annually, paid private school tuition for Weisselberg’s grandchildren, authorized the lease for his luxury Manhattan apartment and approved a salary deduction for another executive.

“The whole narrative that Donald Trump was blissfully ignorant is just not real, prosecutor Joshua Steinglass told jurors during his closing argument on Friday.

He said the “smorgasbord of benefits” was designed to keep top executives “happy and loyal.”

Republican Trump, who on Nov. 15 announced his third campaign for the presidency, said in a statement he was “disappointed” by the verdict but called the case a “Manhattan witch hunt.” Both Bragg and his predecessor who brought the charges, Cyrus Vance, are Democrats.

SEPARATE LAWSUIT

The Trump Organization separately faces a fraud lawsuit brought by New York state Attorney General Letitia James.

Trump himself is being investigated by the U.S. Department of Justice over his handling of sensitive government documents after he left office in January 2021 and attempts to overturn the November 2020 election, which he lost to Democrat Joe Biden.

Lawyers for the Trump Organization argued that Weisselberg carried out the scheme to benefit himself, not the company. They tried to paint him as a rogue employee. Weisselberg is currently on paid leave and testified that he hopes to get another $500,000 bonus in January

Trump wrote on his Truth Social platform on Nov. 19. that his family got “no economic gain from the acts done by the executive.”

Weisselberg, who pleaded guilty in August to concealing $1.76 million in income from tax authorities, testified that although Trump signed checks involved, he did not conspire with him.

He said that the company saved money by paying for his rent, utilities, Mercedes-Benz car leases for him and his wife and other personal expenses rather than raising his salary, because a wage hike would have had to account for taxes.

He said Trump’s two sons – who took over the company’s operations in 2017 – gave him a raise after they knew about his tax dodge scheme.

By then, Trump was president, and the company was preparing for greater scrutiny.

“We were going through an entire cleanup process of the company to make sure that since Mr. Trump is now president everything was being done properly,” Weisselberg testified.

Reporting by Luc Cohen and Karen Freifeld in New York; additional reporting by Andrew Hofstetter in New York; Editing by Noeleen Walder and Grant McCool

Our Standards: The Thomson Reuters Trust Principles.

Luc Cohen

Thomson Reuters

Reports on the New York federal courts. Previously worked as a correspondent in Venezuela and Argentina.

Read original article here

Trump rebuffed by judge in New York fraud lawsuit, trial date set

NEW YORK, Nov 22 (Reuters) – A New York judge has scheduled an October 2023 trial for former U.S. President Donald Trump, three of his adult children and the Trump Organization in a lawsuit brought by New York Attorney General Letitia James accusing them of fraudulently overvaluing the real estate company’s assets and Trump’s net worth.

Justice Arthur Engoron of the state Supreme Court in Manhattan set the trial date during a contentious hearing on Tuesday following motions by the Trumps the night before to have the civil lawsuit dismissed.

“I ruled on all these issues. It seems to me the facts are the same. The law is the same. Parties are the same,” Engoron told Alina Habba, Trump’s lawyer. “You can’t keep making the same argument after you’ve already lost.”

Habba had accused the judge of bias. Trump, a Republican, has accused James, a Democrat, of suing him because she dislikes him and his politics.

In her lawsuit filed on Sept. 21, James accused Trump, his company, his children Donald Jr, Eric and Ivanka and others of inflating Trump’s assets by billions of dollars in a decade of lies to banks and insurers. James called the fraud “staggering.”

The complaint seeks $250 million in damages. It also seeks to stop the Trumps from running businesses in the state and ban Trump and his company from acquiring New York real estate for five years.

Engoron is expected to rule on the motions to dismiss by early January. Trump is already appealing Engoron’s order requiring an independent watchdog to monitor his company.

The trial, scheduled for Oct. 2, 2023, and other legal issues could complicate Trump’s campaign, announced last week, for the presidency in 2024.

The Trump Organization is now on trial in another Manhattan courtroom on criminal tax fraud charges.

In addition, U.S. Attorney General Merrick Garland last week named a special counsel to oversee two criminal investigations, one related to the FBI’s seizure of government documents from Trump’s Florida home and the other examining Trump’s role in efforts to overturn the 2020 presidential election.

Trump also faces a criminal investigation in Georgia into whether he interfered with the 2020 election results in that state.

He has called these cases and investigations politically motivated, and has labeled Engoron a “puppet judge” for James.

In seeking to dismiss the case filed by James, Trump maintained that the attorney general lacked authority to pursue a lawsuit designed to “get” him when neither the public nor the marketplace was harmed.

“Who stands to gain from this highly-politicized farse [sic], aside from the politically-compromised Attorney General of the State of New York?” Trump’s filing said.

Other defendants also urged dismissals.

Lawyers for Trump’s sons called the lawsuit a “textbook example of throwing everything at the wall to see what sticks.” Ivanka Trump’s lawyers said there were no allegations that she lied to or defrauded anyone.

The Trump Organization’s former longtime Chief Financial Officer Allen Weisselberg and its Controller Jeffrey McConney also sought dismissals of claims against them. Both testified as prosecution witnesses in the Manhattan criminal trial in which prosecutors accused the company of engaging in tax fraud spanning 15 years.

Reporting by Karen Freifeld and Jonathan Stempel in New York; Editing by Will Dunham

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

CIA boss talks nuclear weapons and prisoners with Putin’s spy chief

  • Burns to warn Russia’s spy chief not to use nuclear weapons
  • Burns also due to raise issue of U.S. prisoners
  • Kremlin confirm a U.S.-Russia meeting took place in Turkey

LONDON/WASHINGTON, Nov 14 (Reuters) – U.S. Central Intelligence Agency Director William Burns was expected to caution President Vladimir Putin’s spy chief at talks on Monday about the consequences of any use of nuclear weapons, and to raise the issue of U.S. prisoners in Russia, a White House official said.

Kremlin spokesman Dmitry Peskov confirmed to Russian news agencies that a U.S.-Russia meeting had taken place in the Turkish capital Ankara but declined to give details about the participants or the subjects discussed.

The White House spokesperson, speaking on condition of anonymity, said Burns was meeting Sergei Naryshkin, head of Russia’s SVR foreign intelligence service.

It was the first known high-level, face-to-face U.S.-Russian contact since Russia invaded Ukraine in February.

“He is not conducting negotiations of any kind. He is not discussing settlement of the war in Ukraine,” the spokesperson said.

“He is conveying a message on the consequences of the use of nuclear weapons by Russia, and the risks of escalation to strategic stability … He will also raise the cases of unjustly detained U.S. citizens.”

Burns is a former U.S. ambassador to Russia who was sent to Moscow in late 2021 by President Joe Biden to caution Putin about the troop build-up around Ukraine.

“We briefed Ukraine in advance on his trip. We firmly stick to our fundamental principle: nothing about Ukraine without Ukraine,” the spokesperson said.

Putin has repeatedly said Russia will defend its territory with all available means, including nuclear weapons, if attacked. He says the West has engaged in nuclear blackmail against Russia.

MANY OUTSTANDING ISSUES

The remarks raised particular concern in the West after Moscow declared in September that it had annexed four Ukrainian regions that its forces partly control.

The U.S.-Russian contact in Turkey was first reported by Russia’s Kommersant newspaper. The SVR did not respond to a request for comment.

Beyond the war, Russia and the United States have a host of outstanding issues to discuss, ranging from the extension of a nuclear arms reduction treaty and a Black Sea grain deal to a possible prisoner swap and the Syrian civil war.

U.N. Secretary General Antonio Guterres, asked at a summit of the Group of 20 (G20) leading economies in Indonesia about the meeting in Turkey, said the United Nations was not involved.

Biden said this month he hoped Putin would be willing to discuss seriously a swap to secure the release of U.S. basketball star Brittney Griner, who has been sentenced to nine years in a Russian penal colony on drugs charges.

Former U.S. Marine Paul Whelan, who holds American, British, Canadian and Irish passports, was sentenced in 2020 to 16 years in a Russian jail after being convicted of spying, a charge he denied.

Viktor Bout, a Russian arms dealer jailed in the United States, has been mentioned as a person who could be swapped for Griner and Whelan in any prisoner exchange.

Reporting by Reuters; Additional reporting by Jonathan Spicer in Turkey; Editing by Gareth Jones

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

China stocks notch trillion-dollar gain on hopes of reopening, better U.S. ties

  • Hang Seng surges to best week since 2011
  • Tech, property stocks lead gains
  • Yuan, commodities, China-sensitive luxury stocks rise

SINGAPORE, Nov 4 (Reuters) – Chinese markets soared and the yuan rose on Friday, with about a trillion dollars added to the value of Chinese stocks in week, as rumours and news reports fed hopes for twin relief in U.S.-China tension and China’s tough COVID rules.

The Hang Seng (.HSI) surged 5.3% and notched its biggest weekly gain in 11 years. The Shanghai Composite (.SSEC) rose 2.4% for a 5.3% weekly gain, the largest in more than two years and China-sensitive assets around the world rose sharply.

Bloomberg News reported initial U.S. inspections of audit papers at U.S.-listed Chinese companies – a long-running point of regulatory tension and risk – finished ahead of time, raising hopes that the U.S. officials were satisfied.

Unsubstantiated social media posts flagging an aim to relax COVID rules in March have also driven optimism all week and seemed to get new momentum on Friday.

A former Chinese senior disease control official told a closed-door conference that substantial changes to the country’s zero-COVID policy were set to take place in the next five to six months, according to a recording of the session heard by Reuters.

“Any indication that some rules could be relaxed would be an immediate dose of grease in the jarring cogs of China’s economy,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.

Focus was now on a press conference from China health authorities on Nov. 5.

Gains were broad, overshadowing a downbeat mood in global markets on the prospect of U.S. interest rates rising further than previously expected. Property and tech shares led the way.

Shares in online giants Alibaba (9988.HK) and JD.com (9618.HK) each rose more than 10% and the Hang Seng Tech index (.HSTECH) rose 7.5%. Property manager Country Garden Services rose 15% and an index of mainland developers (.HSMPI) rose 9%.

Hedge fund manager Lei Ming said the re-opening rumour is just the trigger for a rebound in an oversold market.

“The main reason for the market jump is that selling pressure had been exhausted after the market fell so much.”

Gains in value, across Hong Kong, Shenzhen and Shanghai over the week are approximately $1 trillion. However the Hang Seng remains down 30% this year against a 24% fall in world stocks (.MIWD00000PUS). The Shanghai Composite is down 15% this year.

A view of a giant display of stock indexes, following the coronavirus disease (COVID-19) outbreak, in Shanghai, China October 24, 2022. REUTERS/Aly Song/File Photo

The rally extended to commodities markets with iron ore futures surging on Friday, and China-sensitive stocks listed in London and Europe.

Miners such as Rio Tinto (RIO.L) and Anglo American (AAL.L) rose sharply along with luxury retails like LVMH (LVMH.PA) and Swiss jeweller Richemont (CFR.S).

U.S.-listed China stocks surged in premarket trading, with KraneShares CSI China Internet ETF and iShares MSCI China ETF (MCHI.O) set for weekly gains after sharp declines in October.

Strategists at TD Securities continue to expect a gradual easing of zero-COVID restrictions, warning that markets could be in for some disappointment if investors are expecting something more rapid.

China stocks market cap

BUY THE RUMOUR

Changes to COVID policies have not been officially flagged. A foreign ministry spokesman said on Tuesday he was not aware of the situation, when asked about rumours on social media that China was planning a reopening from strict COVID curbs in March.

Bloomberg News also reported on Friday, citing unnamed people familiar with the matter, that China was working towards relaxing rules that penalise airlines for carrying COVID-positive passengers.

A foreign ministry spokesman later said he was not aware of the report and that China’s COVID policies were consistent and clear.

An early conclusion to audit checks has also not been confirmed by either Chinese or U.S. officials. Yet markets have desperate reasons to rally after the Hang Seng hit a 13-year low last month in the wake of China’s Communist Party Congress.

“I do not see anything new that has changed the Hong Kong and China investment environment,” said Frank Benzimra, head of Asia equity strategy at Societe Generale in Hong Kong.

“The only explanation I have is that the sell-off has been excessive post-Congress, valuation on some offshore names has been very distressed, and there is some bottom-fishing.”

The currency joined in the rally, jumping more than 0.5% to touch a one-week high of 7.2340 per dollar.

Reporting by Medha Singh in Bengaluru, additional reporting by Summer Zhen in Hong Kong. Writing by Tom Westbrook. Editing by Sam Holmes and Saumyadeb Chakrabarty

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Vietnam’s Vinfast to build $2 bln electric vehicle factory in U.S.

HANOI/SAN FRANCISCO, March 29 (Reuters) – Vietnam’s automaker VinFast said on Tuesday it has signed a preliminary deal to initially invest $2 billion to build a factory in North Carolinato make electric buses, sport utility vehicles (SUVs) along with batteries for EVs.

The unit of Vietnam’s biggest conglomerate Vingroup (VIC.HM), said it plans to have a total investment of $4 billion in its first U.S. factory complex.

Construction should begin this year as soon as the company gets necessary permits, and is expected to finish by July 2024. The plant’s initial capacity will be 150,000 units per year, Vinfast said.

Register now for FREE unlimited access to Reuters.com

Register

“With a manufacturing facility right in the U.S. market, VinFast can stabilize prices and shorten product delivery time, making our EVs more accessible to customers,” said Nguyen Thi Thu Thuy, Vingroup vice chair and VinFast Global CEO.

VinFast has begun taking pre-orders globally for two electric SUVs with a goal to begin delivering them in the fourth quarter.

U.S. President Joe Biden said the VinFast investment, which will create more than 7,000 jobs, is “the latest example of my economic strategy at work.”

“It builds on recent announcements from companies like GM, Ford, and Siemens to invest in America again and create jobs, said Biden, who set an ambitious goal for half of new car sales to be electric by 2030.

This will be North Carolina’s first car plant and it is the largest economic development announcement in the state’s history, the governor’s office said in a statement.

VinFast said prices for its VF8 sport SUV started from $41,000 in the United States. By comparison, a Tesla SUV sells for around $63,000. VinFast is targeting global electric vehicle sales of 42,000 this year.

PRODUCTION IS HARD

VinFast is betting big on the U.S. market, where it hopes to compete with legacy automakers and startups with affordable electric SUVs and a battery leasing model.

Other electric vehicle startups like Rivian and Lucid have slashed their production targets this year due to supply chain disruptions caused by coronavirus, which hit their share prices. read more

Tesla CEO Elon Musk said last year, “It’s insanely difficult to reach volume production at affordable unit cost.”

VinFast, which became Vietnam’s first fully fledged domestic car manufacturer in 2019, plans to transition to all-electric vehicle production from late 2022.

Outside of North America, the company is looking for a plant in Germany, it said in January.

Register now for FREE unlimited access to Reuters.com

Register

Reporting by Phuong Nguyen in Vietnam and Hyunjoo Jin in San Francisco; Editing by Chizu Nomiyama and David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Trading in China Evergrande shares, onshore bonds halted pending announcement

The China Evergrande Centre building sign is seen in Hong Kong, China December 7, 2021. REUTERS/Tyrone Siu

Register now for FREE unlimited access to Reuters.com

Register

HONG KONG, March 21 (Reuters) – Shares of embattled property developer China Evergrande Group (3333.HK) and onshore bonds issued by its flagship unit Hengda Real Estate Group were suspended from trading on Monday, pending an announcement by the company.

Trading was also halted in shares of its property services unit, Evergrande Property Services Group Ltd (6666.HK), and electric vehicle unit, China Evergrande New Energy Vehicle Group Ltd (0708.HK), exchange filings showed.

The filings gave no further details.

Register now for FREE unlimited access to Reuters.com

Register

Evergrande, the world’s most indebted developer with over $300 billion in liabilities, has been struggling to repay its suppliers and creditors and complete projects and homes.

Hengda secured approval from its onshore bondholders over the weekend to delay a coupon payment due last September to September 2022, according to a filing by the company’s lawyer to the Shenzhen Stock Exchange on Sunday.

Hengda held a meeting with creditors of the 4 billion yuan ($629 million) 2025 bond on March 18-19 to approve the payment of interests incurred between September 2020 to September 2021 to be made in September 2023. read more

Evergrande has so far avoided technical bond defaults onshore, though it has missed payments on some offshore bonds.

Evergrande shares traded at HK$1.65 before the suspension. They have gained 3.8% this year after plunging 89% in 2021.

Register now for FREE unlimited access to Reuters.com

Register

Reporting by Clare Jim and Donny Kwok in Hong Kong, Beijing newsroom; Editing by Himani Sarkar

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Allianz, Swiss Re join other financial firms in turning from Russia

  • Allianz says stopped insuring new business in Russia
  • Swiss Re says not renewing business with Russian clients
  • Europe’s securities regulator says ensuring orderly markets
  • Deutsche changes position late on Friday
  • FTSE Russell ejects four UK-listed, Russia-focused stocks

FRANKFURT/LONDON/ZURICH, March 14 (Reuters) – Allianz (ALVG.DE) and Swiss Re (SRENH.S) said on Monday they were cutting back on Russian business as European financial institutions turn their backs on Russia.

The German insurer and Swiss reinsurer join banks Deutsche (DBKGn.DE), Goldman Sachs (GS.N) and JPMorgan Chase (JPM.N) which have exited Russia following its Feb. 24 invasion of Ukraine and subsequent Western government sanctions.

The moves will pile pressure on others to follow.

Register now for FREE unlimited access to Reuters.com

Register

Allianz said it had put a stop to insuring new business in Russia and was no longer investing in Russia for its own portfolio. read more

Swiss Re said it was not taking on new business with Russian and Belarusian clients and was not renewing existing business with Russian clients. In a statement sent via email, Swiss Re said it was reviewing its current business relationships in Russia and Belarus. read more

The decisions follow similar action by other major European insurers and reinsurers, which provide cover for large projects such as energy installations.

Insurer Zurich (ZURN.S) no longer takes on new domestic customers in Russia and will not renew existing local business, a spokesperson told Reuters on Monday.

Hannover Re (HNRGn.DE) said last week that new business and renewals for customers in Russia and Belarus were on hold, while Italian insurer Generali (GASI.MI) said earlier this month it would pull out of Russia. read more

Insurance broker Willis Towers Watson (WTY.F) also said on Sunday it would withdraw from Russia, following similar moves by rivals Marsh (MMC.N) and Aon (AON.N).

Asset managers have said they will not make new investments in Russia and many Russian-focused funds have frozen because they are unable to trade following the sanctions and counter-measures taken by Russia. read more

The European Union’s markets watchdog ESMA said on Monday it was coordinating the bloc’s regulatory response to the Ukraine conflict to ensure markets continued to function in an orderly manner.

Britain’s pensions regulator said the sector had little direct exposure to Russia, but that there were practical difficulties in selling Russian assets. read more

Ukraine said on Monday it had begun “hard” talks with Russia on a ceasefire, immediate withdrawal of troops and security guarantees after both sides reported rare progress in negotiations at the weekend, despite Russian bombardments. read more

Russia calls its actions in Ukraine a “special operation”.

WINDING DOWN

Deutsche, which had faced stinging criticism from some investors and politicians for its ongoing ties to Russia, announced late on Friday that it would wind down its business there. read more

It was a surprise reversal by the Frankfurt-based lender, which had previously argued that it needed to support multinational firms doing business in Russia.

Britain’s London Stock Exchange Group also said late on Friday it was suspending all products and services for all customers in Russia, days after suspending the distribution of news and commentary in the country following new laws in Moscow. read more

Index provider FTSE Russell said on Monday it would delete four UK-listed, Russia-focused companies including Roman Abramovich’s Evraz (EVRE.L) after many brokers refused to trade their shares.

Evraz, along with Polymetal International (POLYP.L), Petropavlovsk (POG.L) and Raven Property Group (RAV.L), would be deleted from all FTSE’s indexes during the March review, it said in a statement.

FTSE Russell said it had received feedback from its External Advisory Committees and market participants that trading in the shares was “severely restricted” as brokers refused to handle the securities, hitting market liquidity. read more

JPMorgan says the majority of forecast risk for European banks from the Russia shock will come from commodity and economic spillover effects, with the sector plunging since the end of February.

European banking stocks (.SX7P) have come off their lows in recent days, however, and rose 3.8% on Monday.

Register now for FREE unlimited access to Reuters.com

Register

Additional reporting by Marc Jones, Iain Withers and Joao Manuel Mauricio, Writing by Carolyn Cohn, Editing by Catherine Evans

Our Standards: The Thomson Reuters Trust Principles.

Read original article here