Afp Business Asia

Macau on Friday will welcome a new leader who has criticised the “barbaric expansion” of the casino industry and vowed to diversify the city’s economy to align it with China’s development goals.Sam Hou-fai, 62, is set to be sworn in as Macau’s next chief executive on Friday by Chinese President Xi Jinping, after a one-horse race in October where he was chosen by a committee of 400 pro-establishment figures.His inauguration will coincide with the 25th anniversary of the former Portuguese colony being handed over to China under a “One Country, Two Systems” framework that promised autonomy and a separate legal system.Sam spent his entire post-handover career as president of Macau’s Court of Final Appeal, the city’s top court.Despite that, he has admitted to being relatively unknown in the city — which he said was proof that judges were independent.Unlike the three chief executives before him, Sam was born in mainland China and does not have a background in business. He moved to Macau in 1986 to work for the colonial administration.Beijing has for years ordered Macau to diversify its economy and grow non-gaming industries. But as of November, gaming-related taxes still make up 81 percent of government revenue.Announcing his leadership bid in August, Sam said there had been “a period of disorderly development and barbaric expansion” by the tourism and casino industries.”This situation of having one dominant industry is unfavourable to the long-term development of Macau and brings a huge negative impact,” he said at a press conference.He later dialed down his criticism and said that the gaming sector will not shrink or be shut down under his administration, adding that “healthy and orderly development” was needed.Sam, who studied law at China’s elite Peking University and later in Portugal, rose through the ranks as Macau’s last colonial government sought to localise its civil service in the late 1980s.Jorge Rangel, the ex-minister in charge of that localisation effort, recalled Sam as a “quiet type of person” who was “very young when he was appointed senior judge in Macau”.Having joined the judiciary in 1995, Sam was fast-tracked to the top post just four years later and he “accepted his position very well.””He knew that it was a very big challenge for him,” Rangel told AFP.As top judge, Sam presided over trials of corrupt Macau officials.- Dissent stifled -When neighbouring Hong Kong was rocked by huge pro-democracy protests in 2019, Beijing also clamped down on dissent in Macau — a trend reflected in the courts.”(Sam’s) judicial style is literalism: he will rule based on how the law was written,” University of Macau scholar Ieong Meng-u told AFP.But in some cases, “the authorities had already decided to do something, and they needed to find the legal grounds”, Ieong said.In 2021, Sam was widely panned for a ruling that outlawed a peaceful candlelight vigil held to commemorate the 1989 Tiananmen Square crackdown.The same year, Sam and his fellow judges ruled in favour of the Macau authorities’ decision to disqualify 21 pro-democracy candidates from running for the city’s legislature.As a policymaking novice, Sam will have to contend with an economy that has not fully recovered from the heavy blow dealt by the coronavirus pandemic and long-running livelihood concerns.Despite being a native of Zhongshan in southern China, Sam has described himself as a “being from old Macau” and dismissed criticisms that he is out of touch.On the streets of Macau, one resident told AFP that he was hopeful about Sam’s administration.”I believe that he has much better administrative and judicial experiences, unlike his predecessors,” said Lau, a retired civil servant in his seventies who only gave his surname.”He will run a tighter ship and be fairer, at least that’s my hope.”

Wall Street stocks rebounded Thursday from sharp losses over the prospect of fewer US rate cuts next year despite the looming threat of a government shutdown.The plunge in New York after the Federal Reserve signalled Wednesday fewer cuts to US interest rates next year dragged down equities in Asia and Europe.The dollar initially rallied on the Fed’s move, with the yen also under pressure Thursday after the Bank of Japan kept borrowing costs unchanged, but it later gave up those gains against the euro and pound.The Bank of England held its key interest rate steady due to UK inflation rising again, and it did not commit to when or by how much it will cut rates in 2025.While that decision was widely expected, more BoE policymakers voted for a cut, which sent the pound falling against the dollar and the euro.The split suggests “members may be more nervous about the state of the economy than originally thought”, said Daniela Sabin Hathorn, senior market analyst at Capital.com.Wall Street’s main indices rose at the start of trading on Thursday, and managed to hold onto their gains in morning trading. “It is a textbook reaction to a large selloff, but like yesterday, how the market opens isn’t as important as how it finishes,” said Briefing.com analyst Patrick O’Hare.All three main indices in New York were sent spinning lower on Wednesday — led by a rout of high-flying tech titans.”In brief, the stark reality hit that the policy rate won’t be coming down as much as previously hoped (key word) and that interest rates are apt to remain higher for longer as policy makers contemplate a future that could involve sticky inflation due to ongoing growth, the wealth effect, possible trade wars, and the deportation of illegal immigrants,” said O’Hare.The rate decisions by Britain’s and Japan’s central bank were the last of the year.”With the major risk events of the week behind us, the question remains: will the traditional Santa rally take hold, or will 2024 mark a departure from the norm?” asked City Index and FOREX.com analyst Fawad Razaqzada.Markets often drift higher at the end of the year when small investors influenced by the holidays dominate trading in what is often called a Santa rally.A possible US government shutdown could spoil a Santa rally, but investors appeared unfazed on Thursday.US President-elect Donald Trump and tech billionaire Elon Musk urged Republican lawmakers on Wednesday to scupper a cross-party deal to avert a halt in non-essential government operations in the early hours of Saturday.- Key figures around 1630 GMT -New York – Dow: UP 0.6 percent at 42,588.39 pointsNew York – S&P 500: UP 0.7 percent at 5,912.00New York – Nasdaq Composite: UP 0.9 percent at 19,556.94 London – FTSE 100: DOWN 1.1 percent at 8,105.32 (close) Paris – CAC 40: DOWN 1.2 percent at 7,294.37 (close)Frankfurt – DAX: DOWN 1.4 percent at 19,969.86 (close)Tokyo – Nikkei 225: DOWN 0.7 percent at 38,813.58 (close)Hong Kong – Hang Seng Index: DOWN 0.6 percent at 19,752.51 (close)Shanghai – Composite: DOWN 0.4 percent at 3,370.03 (close)Euro/dollar: UP at $1.0384 from $1.0365 Pound/dollar: DOWN at $1.2560 from $1.2581Dollar/yen: UP at 157.67 yen from 154.73 yen Euro/pound: UP at 82.68 pence from 82.38 penceBrent North Sea Crude: DOWN 0.9 percent at $72.75 per barrelWest Texas Intermediate: DOWN 0.9 percent at $69.39 per barrelburs-rl/ju/sbk

Major US weapons manufacturers including Boeing and Lockheed Martin, along with Europe’s Airbus and Chinese firms, put their wares on show at an arms fair in Hanoi Thursday as Vietnam looks to diversify its defence supplies away from Russia.A US Air Force A-10 Thunderbolt attack aircraft and a C-130 Super Hercules transport were on the tarmac at Hanoi’s Gia Lam military airfield for the event.Thousands of people attended including hundreds of uniformed Vietnamese soldiers, some of whom posed for selfies with US troops ahead of next year’s 50th anniversary of the end of the Vietnam War.The defence expo featured Chinese firms for the first time, including major state-owned defence conglomerate Norinco, or China North Industries Corporation.Successive Vietnamese governments have been heavily reliant on arms supplied by Russia for decades.The country accounted for more than 80 percent of Vietnam’s arms imports between 1995 and 2023, according to data from the Stockholm International Peace Research Institute (SIPRI). But imports from Russia have dropped off in recent years amid international sanctions over its invasion of Ukraine.”The war in Ukraine has exposed the vulnerabilities of relying too heavily on Russian arms,” said Nguyen Khac Giang, a visiting fellow at the ISEAS–Yusof Ishak Institute in Singapore.”Diversification isn’t just a necessity, it’s an opportunity for Vietnam to upgrade to more advanced systems while reducing dependence on any single partner,” Giang said.”The expo is Vietnam’s way of signalling it’s open to new partnerships.”Boeing and Lockheed Martin were among 14 American companies at the fair, while two exhibitors were Chinese and others were from Germany, Iran, Israel and Ukraine, as well as Russia.As well as aircraft, they put on display tanks, missiles, drones, firearms and radar systems, including by several Vietnamese firms.Speaking on the sidelines of the fair, US Ambassador to Vietnam Marc Knapper said US and Vietnamese companies could potentially work together in areas such as joint production and technology transfers.”Our goal is to ensure that Vietnam has what it needs to defend its interests, at sea, in the air, on the ground and in cyberspace,” he said.Both Washington and Hanoi share concerns about Beijing’s moves to assert its presence in the contested South China Sea, where Vietnam and other Southeast Asian nations have competing claims with China.At the opening ceremony, Vietnamese Prime Minister Pham Minh Chinh described the expo as “delivering a message of peace, cooperation, and shared development”.

European and Asian stock markets slid Thursday following sharp losses on Wall Street as the Federal Reserve signalled fewer cuts to US interest rates next year.In a busy week for rate decisions, the Fed on Wednesday trimmed borrowing costs by a quarter point but halved the number of similar cuts it expects to carry out in 2025.The dollar initially rallied on the outlook, while the yen was pressured Thursday also after the Bank of Japan kept borrowing costs unchanged.The Bank of England as widely expected held its key interest rate steady due to UK inflation rising again, and it did not commit to when or by how much it will cut rates in 2025.While that decision was widely expected, more BoE policymakers voted for a cut, which sent the pound trimming its gains against the dollar and falling against the euro.The split suggests “members may be more nervous about the state of the economy than originally thought,” said Daniela Sabin Hathorn, senior market analyst at Capital.com.All three main indices in New York were sent spinning lower on Wednesday — led by a rout of high-flying tech titans.”Investors were blindsided as the Federal Reserve halved the expected pace of interest rate cuts for next year,” noted Richard Hunter, head of markets at Interactive Investor.The Fed said it expected to cut just twice next year, down from a forecast of four quarter-point reductions signalled in September.While inflation has “eased significantly”, the level remains “somewhat elevated” compared to the Fed’s long-term target of two percent, Fed chair Jerome Powell told reporters.Powell said he remained “very optimistic” about the state of the US economy, adding that the Fed was now “significantly closer” to the end of its current easing cycle.The Fed’s revision came as a surprise even if investors had speculated about how the US central bank would position itself as President-elect Donald Trump prepares to take office.Analysts said Trump’s plans to cut taxes, slash regulations and impose tariffs on China risked reigniting inflation.Jack McIntyre, a portfolio manager at Brandywine Global, said although the latest Fed rate-reduction had been priced in by markets, “when you include the forward guidance components, it was a hawkish cut”.”Stronger expected growth married with higher anticipated inflation — it’s no wonder the Fed reduced the number of expected rate cuts in 2025.”- Key figures around 1230 GMT -London – FTSE 100: DOWN 1.2 percent at 8,101.55 pointsParis – CAC 40: DOWN 1.2 percent at 7,299.54 Frankfurt – DAX: DOWN 0.9 percent at 20,053.63Tokyo – Nikkei 225: DOWN 0.7 percent at 38,813.58 (close)Hong Kong – Hang Seng Index: DOWN 0.6 percent at 19,752.51 (close)Shanghai – Composite: DOWN 0.4 percent at 3,370.03 (close)New York – Dow: DOWN 2.6 percent at 42,326.87 (close)Euro/dollar: UP at $1.0400 from $1.0365 Pound/dollar: UP at $1.2601 from $1.2581Dollar/yen: UP at 156.91 yen from 154.73 yen Euro/pound: UP at 82.57 pence from 82.38 penceBrent North Sea Crude: DOWN 0.5 percent at $73.05 per barrelWest Texas Intermediate: DOWN 0.5 percent at $69.70 per barrelburs-rl/rlp

Equity markets sank Thursday following a severe sell-off on Wall Street that came after the Federal Reserve halved its rates outlook, while the yen weakened as the Bank of Japan decided against a hike.All three main indexes in New York were sent spinning Wednesday — led by a rout in high-flying tech titans — after the Fed delivered what was described as a “hawkish cut” in rates.Some suggested the retreat may have also been fuelled by president-elect Donald Trump’s opposition to a spending package aimed at averting a fast-approaching US government shutdown.While the reduction had been widely expected, its closely watched “dot plot” of projections for further moves suggested the bank will cut rates just twice next year, as opposed to the four previously forecast.Investors had already been speculating about how the Fed would position itself as Trump prepares to take office amid warnings that his plans to cut taxes, slash regulations and impose tariffs on China could reignite inflation.That was followed by Powell’s comments in which he indicated that the battle against inflation was key because it has remained stubbornly above the bank’s two percent target.”We need to see progress on inflation,” he said in a news conference. “We moved quickly to get to here, but moving forward we are moving slower.”While the Fed lifted its economic growth outlook, the prospect of rates staying higher than anticipated for longer dealt a hefty blow to markets, with the S&P 500 losing three percent and the tech-heavy Nasdaq more still.The dollar also cruised higher against its peers and was sitting around a two-year high against the euro.Asian markets all fell, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Mumbai, Taipei, Bangkok, Singapore, Wellington, Manila and Jakarta all well down.London was down at the start of trading Thursday, as were Paris and Frankfurt. Jack McIntyre, a portfolio manager at Brandywine Global, said the rate cut had already been priced in by markets but “when you include the forward guidance components, it was a hawkish cut”.”Stronger expected growth married with higher anticipated inflation — it’s no wonder the Fed reduced the number of expected rate cuts in 2025.”The results of this meeting raise the question: if the market wasn’t expecting a rate cut today, would the Fed actually have delivered one? I suspect not. “The Fed has entered a new phase of monetary policy, the pause phase. The longer it persists, the more likely the markets will have to equally price a rate hike versus a rate cut. Policy uncertainty will make for more volatile financial markets in 2025.”The yen weakened to as much as 156.77 per dollar — from around 153.57 earlier in the day — after the Bank of Japan’s decision not to hike rates for a third time this year. The announcement did help the Nikkei 225 stock index pare earlier losses, though.While officials said in policy statement that “Japan’s economy has recovered moderately” and “is likely to keep growing”, they also pointed to risks ahead.These include “developments in overseas economic activity and prices, developments in commodity prices, and domestic firms’ wage- and price-setting behaviour”.Observers said there would be a renewed focus on the yen as it weakens, with the possibility that Japanese authorities could step in to support the currency if it weakens too far too quickly.SPI Asset Management’s Stephen Innes said “There’s an elevated risk that USDJPY could trend higher soon but could be met with a barrage of verbal intervention on quick moves or even increased odds of a more substantial rate hike from the Bank of Japan early in the New Year.”- Key figures around 0910 GMT -Tokyo – Nikkei 225: DOWN 0.7 percent at 38,813.58 (close)Hong Kong – Hang Seng Index: DOWN 0.6 percent at 19,752.51 (close)Shanghai – Composite: DOWN 0.4 percent at 3,370.03 (close)London – FTSE 100: DOWN 1.1 percent at 8.110,03Euro/dollar: UP at $1.0400 from $1.0365 Pound/dollar: UP at $1.2610 from $1.2581Dollar/yen: UP at 156.46 yen from 154.73 yen Euro/pound: UP at 82.43 pence from 82.38 penceWest Texas Intermediate: DOWN 0.6 percent at $70.15 per barrelBrent North Sea Crude: DOWN 0.6 percent at $72.96 per barrelNew York – Dow: DOWN 2.6 percent at 42,326.87 (close)

Japanese electronics titan Sony said Thursday it had paid more than $300 million for a 10 percent stake in the media conglomerate behind the smash-hit game ‘Elden Ring’.Kadokawa, which is known for producing anime and publishing books including manga comics, said last month that Sony had made an approach to the firm, sending the media firm’s stocks soaring.On Thursday they said in a joint statement they had signed a “strategic capital and business alliance agreement”.The new deal will see Sony pay 50 billion yen ($320 million) for 12 million new Kadokawa shares, making it the company’s biggest shareholder.The transfer to Sony, which has already held a stake in Kadokawa since 2021, is due to take effect on January 7.The move will expand Sony’s games and cartoons portfolio, after its 2021 purchase of Crunchyroll, a once semi-legal US-based sharing site that is now a streaming giant for Japanese anime.Kadokawa and Sony “historically have collaborated on various projects, and through this capital and business alliance, intend to further strengthen our collaboration to maximise both companies’ IP value globally”, the statement said. Kadokawa also owns Tokyo-based FromSoftware, the creator of the dark fantasy role-playing adventure game “Elden Ring”, which was developed with help from “Game of Thrones” author George R.R. Martin.Sony said last month that its net profit jumped in the second quarter thanks to stronger sales in gaming, music and imaging sensors. Its PlayStation 5 Pro console hit shelves in November, but its price tag — 799.99 euros ($847) in Europe — has raised eyebrows among gamers.

Asian markets sank Thursday following a severe sell-off on Wall Street that came after the Federal Reserve halved its rates outlook, while the yen weakened as the Bank of Japan decided against a hike.All three main indexes in New York were sent spinning Wednesday — led by a rout in high-flying tech titans — after the Fed delivered what was described as a “hawkish cut” in rates.Some suggested the retreat may have also been fuelled by president-elect Donald Trump’s opposition to a spending package aimed at averting a fast-approaching US government shutdown.While the reduction had been widely expected, its closely watched “dot plot” of projections for further moves suggested the bank will cut rates just twice next year, as opposed to the four previously forecast.Investors had already been speculating about how the Fed would position itself as Trump prepares to take office amid warnings that his plans to cut taxes, slash regulations and impose tariffs on China could reignite inflation.That was followed by Powell’s comments in which he indicated that the battle against inflation was key because it has remained stubbornly above the bank’s two percent target.”We need to see progress on inflation,” he said in a news conference. “We moved quickly to get to here, but moving forward we are moving slower.”While the Fed lifted its economic growth outlook, the prospect of rates staying higher than anticipated for longer dealt a hefty blow to markets, with the S&P 500 losing three percent and the tech-heavy Nasdaq more still.The dollar also cruised higher against its peers and was sitting around a two-year high against the euro.Asian markets all fell, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Taipei, Bangkok, Singapore, Wellington, Manila and Jakarta all well down.Jack McIntyre, a portfolio manager at Brandywine Global, said the rate cut had already been priced in by markets but “when you include the forward guidance components, it was a hawkish cut”.”Stronger expected growth married with higher anticipated inflation — it’s no wonder the Fed reduced the number of expected rate cuts in 2025.”The results of this meeting raise the question: if the market wasn’t expecting a rate cut today, would the Fed actually have delivered one? I suspect not. “The Fed has entered a new phase of monetary policy, the pause phase. The longer it persists, the more likely the markets will have to equally price a rate hike versus a rate cut. Policy uncertainty will make for more volatile financial markets in 2025.”The yen weakened to as much as 155.44 per dollar — from around 153.57 earlier in the day — after the Bank of Japan’s decision not to hike rates for a third time this year. The announcement did help the Nikkei 225 stock index pare earlier losses, though.While officials said in policy statement that “Japan’s economy has recovered moderately” and “is likely to keep growing”, they also pointed to risks ahead.These include “developments in overseas economic activity and prices, developments in commodity prices, and domestic firms’ wage- and price-setting behaviour”.- Key figures around 0340 GMT -Tokyo – Nikkei 225: DOWN 0.6 percent at 38,847.86Hong Kong – Hang Seng Index: DOWN 1.0 percent at 19,662.89Shanghai – Composite: DOWN 0.7 percent at 3,357.82 (break)Euro/dollar: UP at $1.0380 from $1.0365 Pound/dollar: UP at $1.2589 from $1.2581Dollar/yen: UP at 155.30 yen from 154.73 yen Euro/pound: UP at 82.46 pence from 82.38 penceWest Texas Intermediate: DOWN 0.6 percent at $70.19 per barrelBrent North Sea Crude: DOWN 0.4 percent at $73.08 per barrelNew York – Dow: DOWN 2.6 percent at 42,326.87 (close)London – FTSE 100: UP 0.1 percent at 8,199.11 (close)

The yen weakened against the dollar Thursday after the Bank of Japan kept borrowing costs unchanged, extending a retreat for the currency that came after the Federal Reserve forecast fewer rate cuts.The BoJ said after a two-day policy meeting that it would hold rates at around 0.25 percent, pushing the yen cheaper than 155 per dollar, compared with 153.66 on Wednesday.Although the bank said in its policy statement that “Japan’s economy has recovered moderately” and “is likely to keep growing”, it also pointed to risks ahead.These include “developments in overseas economic activity and prices, developments in commodity prices, and domestic firms’ wage- and price-setting behaviour”.The Fed on Wednesday cut interest rates by a quarter point, its third straight reduction.But it signalled a slower pace of cuts ahead as inflation remained sticky and uncertainty surrounds President-elect Donald Trump’s economic plans.Japanese businesses are also wary about the trade and investment environment, given Trump’s pledge to impose tariffs on imports.Tsuyoshi Ueno, senior economist at NLI Research Institute, told AFP ahead of Thursday’s decision that one reason the BoJ did not hike was that “the picture of next year’s wage increases will be clearer in January”.Political factors were another reason, according to Ueno.”As the minority government is discussing budget and tax reforms involving the opposition… it would be bad timing for the BoJ to hike its rate” as that could cool the economy, he said.The government recently passed an extra budget worth nearly 14 trillion yen ($90 billion) to help pay for a massive economic stimulus package.It includes handouts for low-income households, fuel and energy subsidies and assistance to small businesses.Prime Minister Shigeru Ishiba is hoping the funds will lift the economy but also boost his popularity after the ruling coalition’s worst election result in 15 years.Ishiba has also promised to spend 10 trillion yen through 2030 to boost Japan’s semiconductor and artificial intelligence sectors to help the nation regain its tech edge.

As the US Supreme Court considers whether to uphold a law that could get TikTok banned in the United States, here is a look at the rise of the video-snippet social app.- Genesis -In 2016, Beijing-based ByteDance launched Douyin, a short video sharing app, making it available only in China.ByteDance released TikTok for the international market the following year, shortly before buying song “lip-synching” app Musical.ly and merging it into TikTok.The social network became a hit with its algorithm serving up endless collections of short, looping, typically playful videos posted by users.- Pandemic boom -TikTok’s popularity soared during the Covid-19 pandemic declared in 2020, as people enduring lockdowns relied on the internet for diversion and entertainment.As a result, authorities began eyeing TikTok’s influence and addictive appeal.TikTok became one of the most downloaded apps in the world as officials grew increasingly wary of the potential for the Chinese government to influence ByteDance or access user data.India banned TikTok in July of 2020 due to tensions with China.- Targeted by Trump -While Donald Trump was US president in 2020, he signed executive orders to ban TikTok in the country.Trump accused TikTok, without proof, of siphoning off American users’ data to benefit Beijing and of censoring posts to please Chinese officials.Trump’s decision came against a backdrop of political tension between Washington and Beijing.During a failed bid for re-election, the Republican campaigned on an anti-China message.Between legal challenges and Trump’s loss to Joe Biden in the 2020 presidential election, the executive orders did not take effect.- Billion mark -In September 2021, TikTok announced it had 1 billion monthly users worldwide.But concerns grew about TikTok users facing risks of addiction, propaganda, and spying.In 2022, BuzzFeed reported that ByteDance employees based in China had accessed non-public information from TikTok users.ByteDance tried to cool privacy concerns by hosting user data on servers managed in the United States by Oracle.The move did not ease concerns in the United States, where TikTok was banned from devices used by the military.An array of other government agencies and academic institutes followed suit, forbidding members from using TikTok.TikTok’s Singaporean chief executive Shou Zi Chew was grilled by members of the US Congress during a 6-hour hearing in March of 2023.- Sell or go -TikTok was back in the hot seat in the United States in 2024, when President Joe Biden authorized a law requiring TikTok to be banned if ByteDance does not sell the app to a company not associated with a national security adversary.Washington’s stated aim is to cut the risk of Beijing spying on or manipulating TikTok users, particularly the 170 million US users of the app.TikTok remains adamant that it has never shared user data with the Chinese government or done its bidding at the social network.ByteDance sued the US government, arguing the law violates free speech rights.A final decision in that case is to be made by the US Supreme Court, which agreed on Tuesday to examine whether the pending ban violates the Constitution.The Supreme Court has scheduled a hearing on the matter for January 10.President-elect Donald Trump, who returns to office on January 20, has signaled he might intervene on TikTok’s behalf.Trump recently spoke of having a “soft spot” for TikTok, and this year his campaign used the app to win support from young voters.