Business

On June 21, 2024, Hong Kong Exchanges and Clearing celebrated its 24th listing anniversary, amid growing optimism about the future of the city’s IPO market. In an interview with CNBC, George Chan, global head of IPOs at EY, expressed confidence that the Hong Kong initial public offering (IPO) market is set to see substantial improvement over the next five years, starting in the second half of this year. Chan noted that while it may take a few years to reach the peak levels seen in 2021, the trend is clearly positive. “I see light at the end of the tunnel,” he said. Over the past three years, factors such as high interest rates in the United States, increased regulatory scrutiny, slowing economic growth, and geopolitical tensions between the United States and China have dampened IPO activi...

Federal Reserve Chairman Jerome Powell on Tuesday expressed satisfaction with the progress made over the past year in tackling inflation, but stressed that more confidence was needed before considering a rate cut. "We've made quite a bit of progress in getting inflation back to our objective," Powell told a central bank forum in Sintra, Portugal. "The latest inflation readings, and to a lesser extent the previous one, suggest that we're returning to a disinflationary path. We want to be more confident that inflation is moving sustainably toward 2% before we begin the process of reducing or easing policy." Powell spoke alongside European Central Bank (ECB) President Christine Lagarde and Brazilian central bank governor Roberto Campos Neto at an event hosted by the ECB and moderated by CNBC...

A key economic measure from the Federal Reserve revealed Friday that May's inflation rate was the lowest in three years. A report from the Commerce Department indicated that the Personal Consumption Expenditures (PCE) price index rose by a seasonally adjusted 0.1% for the month and by 2.6% year over year. This annual figure was a slight decline from the April level. Both numbers met Dow Jones expectations. May saw the lowest annual inflation rate since March 2021, marking the first time this economic cycle that inflation has fallen below the Fed’s 2% target. Including food and energy prices, headline inflation remained stable on a monthly basis and increased by 2.6 percent from a year earlier, in line with expectations. "This is further evidence that monetary policy is working and that in...

Starbucks locations across the country are rolling out new measures to streamline drink ordering and reduce wait times. The revamp comes as the coffee chain anticipates a surge in mobile app orders. At the heart of this initiative is Starbucks’ “siren craft system,” a set of procedures designed to make baristas’ jobs easier and speed up service. More than 10 percent of Starbucks’ 10,000 locations have already adopted the system, which reorganizes the production sequence for hot and cold beverages. The company aims to roll it out across North America by the end of July. Starbucks executives believe these changes are crucial, especially after a disappointing second quarter in April, when U.S. same-store sales fell 3% and foot traffic fell 7%. As a result, the company lowered its 2024 foreca...

Shares of Chinese electric car makers started the new year on a downtrend, facing stiff competition and ongoing price wars that are eroding automakers’ profitability amid weak overall market sentiment. Hong Kong-listed shares of Nio and Xpeng have fallen more than 18% and 16%, respectively, while Li Auto has fallen 12% so far this year. BYD and Zhejiang Leapmotor have fallen nearly 2.5% and 12%, respectively, in 2024. Bernstein analysts noted in a recent report on China's electric vehicle industry: "We expect competition within the domestic market to remain intense, putting pressure on pricing and profitability." Morgan Stanley also highlighted these concerns about competition in its note on Wednesday: "Investors remain cautious as the Chinese auto market has had a volatile start to the y...

Wan Gang, the visionary behind China’s electric vehicle wave, sees European collaboration as a promising way forward. HEFEI, China — Wan Gang, widely recognized as the architect of China’s electric vehicle (EV) strategy, suggested Wednesday that Chinese investment in Europe’s EV industry could benefit both regions amid ongoing trade disputes. “I think the governments of China and the European Union are now considering how, through negotiations, they can combine investment with commodity trade,” said Wan Gang, currently president of the China Association for Science and Technology. Wan made the remarks via an official English translation during a panel at the World Economic Forum’s “Summer Davos” meeting in Dalian, China. Representatives from China’s Foreign Ministry and the European Commi...

Cars are parked in the parking lot of a Chevrolet dealership in Chicago, Illinois, on June 20, 2024. A cyber attack on CDK Global, a software provider that assists dealers in managing sales and service, disrupted operations of approximately 15,000 dealerships in the United States and Canada. DETROIT – U.S. auto sales are expected to increase 2.9% in the first half of this year compared to the previous year. However, there are concerns that the auto industry may struggle to maintain its momentum in the final six months of the year. Cox Automotive reports that vehicle inventory levels are rising, incentives are increasing, and uncertainties surrounding the economy, interest rates and the U.S. presidential election are growing in the second half of the year. The automotive data and...

General view of the Bank of England building in London. LONDON – The Bank of England announced its decision to keep interest rates stable at its June meeting, but described the choice as “finely balanced” after the UK reached its 2% inflation target. Money market prices pointed to a near 50% chance of a rate cut in August as investors interpreted a subtly dovish message. The central bank's key rate stands at 5.25%, its highest level in 16 years, and has been held since August. Seven members of the monetary policy committee voted in favor of maintaining the rate, while two favored a 25 basis point cut, mirroring the outcome of the May meeting. One basis point represents one hundredth of a percentage point. In its statement, the MPC stressed that inflation had reached the central ...

A recent survey by a Chinese business group in the United States shows that Chinese companies are still interested in doing business in the United States, despite the difficult times. Most of the companies surveyed (nearly 60%) want to continue investing the same amount of money in the United States, and some (30%) even want to invest more. The survey also found that many Chinese companies are concerned about the relationship between the United States and China and the overall health of the U.S. economy. More than 60 percent of respondents believe the economic environment in the United States is getting worse. There is also much more concern (93 percent compared to 81 percent last year) that the United States and China are unable to work well together. The US government has been making it...

General view of the Bank of England building in London. LONDON – The Bank of England announced its decision to keep interest rates stable at its June meeting, but described the choice as “finely balanced” after the UK reached its 2% inflation target. Money market prices pointed to a near 50% chance of a rate cut in August as investors interpreted a subtly dovish message. The central bank's reference rate is 5.25%, the highest level in the last 16 years, maintained since August. Seven members of the monetary policy committee voted in favor of maintaining the rate, while two favored a 25 basis point cut, mirroring the outcome of the May meeting. One basis point represents one hundredth of a percentage point. In its statement, the MPC stressed that inflation had reached the central bank's ta...