Category: 3. Business

  • BBVA to start executing the nearly €1 billion share buyback announced earlier this year

    BBVA to start executing the nearly €1 billion share buyback announced earlier this year

    BBVA shares acquired will be used to reduce share capital through their cancellation. The buyback program will end no later than February 18, 2025², or earlier if the maximum monetary amount or the maximum number of shares is reached.

    Citigroup Global Markets Europe AG will be responsible for executing the buyback on the Spanish continuous market and on European trading platforms.

    BBVA accelerates shareholder distributions

    In addition to the share buyback starting today, on November 7, BBVA shareholders will receive the bank’s highest interim dividend in history (€0.32 gross per share), for a total amount of approximately €1.8 billion.

    Furthermore, given the significant excess capital over the 12 percent CET1 ratio, BBVA’s Board of Directors recently agreed to launch another significant share buyback¹, as soon as it receives authorization from the European Central Bank (ECB).

    BBVA’s share buyback track record

    This is the third time BBVA has opted to repurchase shares as part of its ordinary shareholder remuneration. The bank repurchased shares worth €422 million against 2022 earnings, and €781 million against 2023 earnings.

    In addition, BBVA has carried out two other share buybacks considered extraordinary shareholder remuneration. The first, between 2021 and 2022, amounted to €3.16 billion—one of the largest in Europe at the time—and the second, in 2023, totaled €1 billion.

    Overall, BBVA will have executed share buybacks worth more than €6.3 billion since 2021 including the upcoming program set to begin today.

    ¹Pending approval from the governing bodies and subject to mandatory regulatory approvals.
    ² The share buy back programme will not be executed on December 24 and 31, 2025.

    Continue Reading

  • ING completes share buyback and announces new distribution programme of up to €1.6 billion

    ING completes share buyback and announces new distribution programme of up to €1.6 billion

    Amsterdam,

    ING announced today that it has completed the share buyback programme announced on 2 May 2025. The total number of ordinary shares repurchased under the programme is 101,193,469 at an average price of €19.77 for a total consideration of €2,000,093,404.60.

    During the last week of the programme, up to and including 27 October 2025, in total 597,578 shares were purchased. These shares were repurchased at an average price of €20.73 for a total amount of €12,390,421.28.

    The purchases exceeded 100% of the maximum total amount of up to €2.0 billion due to performance arrangements with our executing broker for the programme. The broker repurchased shares until the performance arrangements were fulfilled. The total consideration for ING was limited to €2.0 billion and the excess purchases above this amount were funded by the executing broker. Based on the total programme period, the effective average price for ING was €19.76.

    ING also announced today a new shareholder distribution of up to €1.6 billion. The distribution consists of a share buyback programme for a maximum total amount of €1.1 billion and a cash payment of €0.5 billion. The purpose of the distribution is to converge our CET1 ratio towards our target of ~13%.

    ING Group’s CET1 ratio was 13.4% at the end of the third quarter of 2025, which is well above the fully-loaded CET1 ratio requirement of 10.95%. The distribution will have an expected pro-forma impact of approximately 48 bps on our CET1 ratio. The share buyback programme will commence on 30 October 2025 and is expected to end no later than 27 April 2026. The €0.5 billion in cash will be paid on 15 January 2026.

    The ECB has approved the distribution, and the share buyback programme will be executed in compliance with the Market Abuse Regulation and within the limitations of the existing authority to acquire a maximum of 20% of the issued shares as granted by the general meeting of shareholders on 22 April 2025. ING has entered a non-discretionary arrangement with a financial intermediary to conduct the buyback.

    For detailed information on the daily repurchased shares, individual share purchase transactions and weekly reports, see share buy back programme.

    Note for editors

    More on investor information, go to the investor relations section on this site.

    For news updates, go to the newsroom on this site or via X (@ING_news feed).

    For ING photos such as board members, buildings, go to Flickr.

    ING PROFILE

    ING is a global financial institution with a strong European base, offering banking services through its operating company ING Bank. The purpose of ING Bank is: empowering people to stay a step ahead in life and in business. ING Bank’s more than 60,000 employees offer retail and wholesale banking services to customers in over 100 countries.

    ING Group shares are listed on the exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N).

    ING aims to put sustainability at the heart of what we do. Our policies and actions are assessed by independent research and ratings providers, which give updates on them annually. ING’s ESG rating by MSCI was reconfirmed by MSCI as ‘AA’ in August 2024 for the fifth year. As of December 2023, in Sustainalytics’ view, ING’s management of ESG material risk is ‘Strong’. Our current ESG Risk Rating, is 17.2 (Low Risk). ING Group shares are also included in major sustainability and ESG index products of leading providers. Here are some examples: Euronext, STOXX, Morningstar and FTSE Russell. Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. Follow our progress on ing.com/climate.

    Important legal information

    Elements of this press release contain or may contain information about ING Groep N.V. and/ or ING Bank N.V. within the meaning of Article 7(1) to (4) of EU Regulation No 596/2014 (‘Market Abuse Regulation’).

    ING Group’s annual accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS- EU’). In preparing the financial information in this document, except as described otherwise, the same accounting principles are applied as in the 2024 ING Group consolidated annual accounts. All figures in this document are unaudited. Small differences are possible in the tables due to rounding.

    Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to a number of factors, including, without limitation: (1) changes in general economic conditions and customer behaviour, in particular economic conditions in ING’s core markets, including changes affecting currency exchange rates and the regional and global economic impact of the invasion of Russia into Ukraine and related international response measures (2) changes affecting interest rate levels (3) any default of a major market participant and related market disruption (4) changes in performance of financial markets, including in Europe and developing markets (5) fiscal uncertainty in Europe and the United States (6) discontinuation of or changes in ‘benchmark’ indices (7) inflation and deflation in our principal markets (8) changes in conditions in the credit and capital markets generally, including changes in borrower and counterparty creditworthiness (9) failures of banks falling under the scope of state compensation schemes (10) non- compliance with or changes in laws and regulations, including those concerning financial services, financial economic crimes and tax laws, and the interpretation and application thereof (11) geopolitical risks, political instabilities and policies and actions of governmental and regulatory authorities, including in connection with the invasion of Russia into Ukraine and the related international response measures (12) legal and regulatory risks in certain countries with less developed legal and regulatory frameworks (13) prudential supervision and regulations, including in relation to stress tests and regulatory restrictions on dividends and distributions (also among members of the group) (14) ING’s ability to meet minimum capital and other prudential regulatory requirements (15) changes in regulation of US commodities and derivatives businesses of ING and its customers (16) application of bank recovery and resolution regimes, including write down and conversion powers in relation to our securities (17) outcome of current and future litigation, enforcement proceedings, investigations or other regulatory actions, including claims by customers or stakeholders who feel misled or treated unfairly, and other conduct issues (18) changes in tax laws and regulations and risks of non-compliance or investigation in connection with tax laws, including FATCA (19) operational and IT risks, such as system disruptions or failures, breaches of security, cyber-attacks, human error, changes in operational practices or inadequate controls including in respect of third parties with which we do business and including any risks as a result of incomplete, inaccurate, or otherwise flawed outputs from the algorithms and data sets utilized in artificial intelligence (20) risks and challenges related to cybercrime including the effects of cyberattacks and changes in legislation and regulation related to cybersecurity and data privacy, including such risks and challenges as a consequence of the use of emerging technologies, such as advanced forms of artificial intelligence and quantum computing (21) changes in general competitive factors, including ability to increase or maintain market share (22) inability to protect our intellectual property and infringement claims by third parties (23) inability of counterparties to meet financial obligations or ability to enforce rights against such counterparties (24) changes in credit ratings (25) business, operational, regulatory, reputation, transition and other risks and challenges in connection with climate change, diversity, equity and inclusion and other ESG-related matters, including data gathering and reporting and also including managing the conflicting laws and requirements of governments, regulators and authorities with respect to these topics (26) inability to attract and retain key personnel (27) future liabilities under defined benefit retirement plans (28) failure to manage business risks, including in connection with use of models, use of derivatives, or maintaining appropriate policies and guidelines (29) changes in capital and credit markets, including interbank funding, as well as customer deposits, which provide the liquidity and capital required to fund our operations, and (30) the other risks and uncertainties detailed in the most recent annual report of ING Groep N.V. (including the Risk Factors contained therein) and ING’s more recent disclosures, including press releases, which are available on www.ING.com.

    This document may contain ESG-related material that has been prepared by ING on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. ING has not sought to independently verify information obtained from public and third-party sources and makes no representations or warranties as to accuracy, completeness, reasonableness or reliability of such information. This document may also discuss one or more specific transactions and/or contain general statements about ING’s ESG approach. The approach and criteria referred to in this document are intended to be applied in accordance with applicable law. Due to the fact that there may be different or even conflicting laws, the approach, criteria or the application thereof, could be different.

    Materiality, as used in the context of ESG, is distinct from, and should not be confused with, such term as defined in the Market Abuse Regulation or as defined for Securities and Exchange Commission (‘SEC’) reporting purposes. Any issues identified as material for purposes of ESG in this document are therefore not necessarily material as defined in the Market Abuse Regulation or for SEC reporting purposes. In addition, there is currently no single, globally recognized set of accepted definitions in assessing whether activities are “green” or “sustainable.” Without limiting any of the statements contained herein, we make no representation or warranty as to whether any of our securities constitutes a green or sustainable security or conforms to present or future investor expectations or objectives for green or sustainable investing. For information on characteristics of a security, use of proceeds, a description of applicable project(s) and/or any other relevant information, please reference the offering documents for such security.

    This document may contain inactive textual addresses to internet websites operated by us and third parties. Reference to such websites is made for information purposes only, and information found at such websites is not incorporated by reference into this document. ING does not make any representation or warranty with respect to the accuracy or completeness of, or take any responsibility for, any information found at any websites operated by third parties. ING specifically disclaims any liability with respect to any information found at websites operated by third parties. ING cannot guarantee that websites operated by third parties remain available following the publication of this document, or that any information found at such websites will not change following the filing of this document. Many of those factors are beyond ING’s control.

    Any forward-looking statements made by or on behalf of ING speak only as of the date they are made, and ING assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason.

    This document does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities in the United States or any other jurisdiction.


    Continue Reading

  • Palmar Forensics uses CLEAR for vendor fraud protection

    Palmar Forensics uses CLEAR for vendor fraud protection

    Why Thomson Reuters Risk & Fraud Solutions?

    After a comprehensive process evaluating alternative solutions, Palmar Forensics selected Thomson Reuters CLEAR as the backbone of its investigative and vendor credentialing workflows for several reasons.

    The first was comprehensiveness and navigability; full reports are thorough yet easier to navigate than alternatives. Their prior tool generated 200 to 300-page reports with lots of noise; CLEAR’s reports contain less irrelevant information, are structured, and searchable. As Joseph Palmar, CEO of Palmar Forensics puts it, “CLEAR is more effective and efficient. The CLEAR report is still 60 or 70 pages long, but it’s simple to navigate. It’s just so much easier to find out what you need to know. And it’s complete and accurate — it’s so comprehensive.”

    CLEAR’s algorithms and logic were also praised. Particularly the strong relationship and ownership discovery that uncovers shell or sister companies and bid-rigging; targeted modules like CLEAR Risk Inform, CLEAR ID Confirm, and seamless alerts for continuous monitoring. These features gave CLEAR a competitive advantage.

    Lastly, Palmar called out the credibility of Thomson Reuters and CLEAR within the industry, making it easy for him to trust.

    “The Thomson Reuters CLEAR solution is the gold standard of fraud investigations. Law enforcement and the federal government both use it. I’ve lost count of how many meetings I’ve walked into where we’ve mentioned that we use CLEAR and they instantly realize we know what we’re talking about,” he says.

    The value of CLEAR

    Since 2012, Palmar Forensics has been using CLEAR — which provides comprehensive, up-to-date information from public records, sanctions databases, and media coverage. It also performs ID validation through CLEAR ID Confirm and subject-risk analytics through CLEAR Risk Inform.

    When onboarding new vendors, Palmar Forensics uses CLEAR as the backbone of its proprietary vendor credentialing tool, VETTED®, to verify that the suppliers its clients want to work with are legitimate and independent businesses — and that their officers and or directors are “clean.” CLEAR does so by researching areas such as current and previous addresses, business relationships, criminal records, and creditworthiness. Then, they can be onboarded with greater certainty.

    “We make sure clients are dealing with reputable organizations that aren’t shell companies, that aren’t linked to other similar businesses for bid-rigging purposes, and that the company’s officers aren’t criminals or have a nefarious history. In our world, that’s not an unusual situation — it’s an everyday occurrence,” says Palmar.

    Uncovering hidden insights

    If clients have suspicions about an existing vendor, Palmar Forensics uses CLEAR as part of an automated tool called VETTED to do a deeper dive to check for undisclosed relationships with other organizations, criminal links or backgrounds, or any lawsuits, liens or judgements. In one recent example, an investigation into a list of vendors provided by a client uncovered a conflict of interest in the awarding of contracts — several “separate” vendors were owned by the same people. In another example, one company owner was unaware that their business partner of 20 years had been charged with assault with a deadly weapon.

    “Using Thomson Reuters Risk & Fraud Solutions as the backbone of VETTED gives us insights we wouldn’t otherwise have, so clients can understand who they’re doing business with,” explains Palmar. “CLEAR allows us to identify whether there’s anything in a company or individual’s background that’s fraudulent or in any way problematic. We have a suite of tools that we use, but the backbone of everything is CLEAR from Thomson Reuters.”

    CLEAR alerts are incredibly useful, according to Palmar. By setting up alerts on certain entities and officers, it is notified about any potential reputational or financial hit to its clients, after the initial onboarding verification process. For Palmar Forensics, this continuous monitoring adds another important layer to the solution’s capabilities.

    When considering the value of CLEAR, Palmar says decision-makers need to think beyond strict return on investment (ROI) metrics. That’s because vendor fraud does not usually happen at volume. But when it does occur, the damage can be incalculable. So, while only a small fraction of vendors commit fraud or have criminal associations, organizations must do everything they can to root them out. CLEAR enables them to do that — and that’s where its true value lies.

    He cites the example of a charitable foundation where seven of its 500 vendors — accounting for 1% of its vendor base — stole $3 million over the course of five years. In addition to the direct financial loss, this raised the risk that donors would no longer donate money to that organization. Similarly, in the health care sector, if fraud is uncovered in the Medicaid or Medicare space, companies may find their government funding is suspended or withheld, which could have significant implications for business continuity beyond the loss itself.

    “You need to spend money to prevent fraudulent expenditures and protect your reputation,” Palmar says. “If you have a massive fraud, your stock price may be affected but there may be even bigger problems to deal with. You can’t measure reputational harm, but one mistake can destroy the reputation you’ve worked so hard to develop.”

    “To my mind, it’s better to do the preemptive work to protect the organization. At least if you’ve done your checks, that’s something you can say to the media, or to the board, as opposed to saying no, we didn’t do that because there was no ROI for doing so.”

    Continue Reading

  • deals, dollars, deposits and Donald

    deals, dollars, deposits and Donald

    Unlock the Editor’s Digest for free

    Europe’s investment banks were already fighting an uphill battle to catch up with their Wall Street rivals, which dwarf them in both size and valuation terms. The return of Donald Trump to the White House has created a medley of additional challenges, laid bare in quarterly earnings this week.

    The first problem: deals. In the US, Trump’s deregulatory agenda has encouraged a flurry of mergers and new listings at home. Yet his unpredictable foreign policy is eliciting caution abroad. So while takeovers of US companies jumped 25 per cent in the first nine months of this year to $1.4tn, according to LSEG data, European deals were up just 11 per cent to $554bn. Similarly, new listings in the US have raised more than twice as much as IPOs in Europe, according to Dealogic.

    The result is that the high-margin fees that banks mint from corporate activity are harder to come by. Lars Machenil, chief financial officer at BNP Paribas, told analysts that European companies are in “wait and see” mode. 

    Despite this, BNP’s US business is growing at a similar rate to Wall Street rivals, Machenil claims. But then comes the second — less intentional — impact of Trump: the dollar. Even after a recent rebound, the currency’s value against major trade partners is down almost 9 per cent year to date. That means European banks’ US earnings are no longer worth as much once translated into their own currency. 

    Line chart of Euro/US Dollar FX Spot rate (inverted) showing Dollar decline

    At BNP, foreign exchange moves were a big reason it missed third-quarter revenue forecasts. For Deutsche Bank, currency movements were the difference between expanding its loan book and shrinking it. At UBS, the particularly sharp rally in the Swiss franc earlier in the year unfavourably pumped up the bank’s leverage ratios, making its balance sheet more tricky to manage. 

    The other D making some European bankers jealous: deposits. Between geopolitical uncertainty, White House efforts to encourage US investment, and higher interest rates, large companies are moving more of their cash to US accounts. Deposits in Bank of America’s global banking unit, for example, jumped 15 per cent year on year in the third quarter, while JPMorgan’s rose 12 per cent. At Deutsche Bank, in contrast, corporate deposits fell, despite enthusiastic talk of a wave of defence-related investment in the continent.

    That’s inconvenient because, as Crisil Coalition Greenwich has highlighted, these sorts of corporate deposits boost the US banks several times over: they earn interest on the deposits themselves, make further money from cash management and payments businesses, and gain sticky funding for other parts of the group. 

    An optimistic take on this would be that maybe Europe’s banks aren’t as far behind Wall Street as they look: strip out some currency and other drags and both sides are growing at similar rates. Europeans will benefit proportionally more if the local deal pipeline unclogs. Even then, though Americans will rule the roost. Closing that gap is yet another D: doubtful.

    nicholas.megaw@ft.com

    Continue Reading

  • Quantum technology is coming to the real world

    Quantum technology is coming to the real world

    Unlock the Editor’s Digest for free

    The writer is senior vice-president for research, labs, technology and society at Google-Alphabet

    Quantum computing able to harness the subatomic world may seem like a distant prospect to some people. This misapprehension persists despite recent research breakthroughs, many built on the foundational research of 2025 Nobel laureates John Clarke, Michel Devoret, and John Martinis. But quantum computers are already being used for scientific research and real-world applications appear likely to emerge in the near future, even before we get to the goal of large-scale, error-corrected computing systems.

    Estimates of how long it will be before we can use quantum computing in ways that will affect most people’s lives vary from a few years to decades. Rather than a single light-switch moment when we shift all at once from not having a quantum computer to having one, it’s more likely that we will follow a more gradual quantum continuum as the systems increasingly become useful.

    A helpful way to think about this stage of quantum development is something akin to artificial intelligence in 2010, when neural networks were on the cusp of becoming useful but before advances like protein structure predictor AlphaFold or generative AI chatbots.

    Quantum technology holds the promise of solving difficult problems, helping us to learn the structure of quantum systems, from molecules to magnets to black holes.

    Similar to early neural networks, quantum computing is already proving useful as a platform for research and experimentation. For example, researchers such as Misha Lukin at Harvard have used them to uncover new phenomena like many-body quantum scars, which reveal order embedded within quantum chaos.

    We are also starting to see the potential for real-world applications with quantum advantage (ie problems that quantum computing can solve that are beyond the reach of classical supercomputers), which can advance areas like drug discovery and material science.

    We are making progress on quantum computing itself: Google’s quantum processor ran in minutes a benchmark algorithm that would take today’s fastest supercomputers 10 septillion years (a period of time that vastly exceeds the age of the universe). More significant was the demonstration of “below threshold” error correction — a long-standing challenge in the field. Last week, we published the first algorithm with verifiable quantum advantage on hardware and in proof-of-principle experiments with the University of California, Berkeley, found it could be used to understand molecular structure when combined with a common chemistry technique.

    Researchers and mathematicians have highlighted at least 70 algorithms — from mathematics and data science to simulation and machine learning — that could allow quantum computers to solve problems much faster than classical ones in a wide range of useful areas. One that has captured public attention since its discovery in the 1990s is Shor’s algorithm, which is expected to be capable of cracking much of the encryption used by today’s most advanced communications systems and digital networks.

    While not imminent, here too we are closer than public perception might acknowledge. This year there was a 20-fold decrease in the estimated size of the quantum computer needed to run Shor’s algorithm and crack the widely used RSA-2048 encryption. This shortened timeline underscores the importance of migrating to new, post-quantum cryptography standards, such as those released by the US National Institute of Standards and Technology last year. 

    Within five years we are likely to start to see real-world applications become possible, even before we get to a large-scale error corrected quantum computer. In order to be prepared to capitalise on these developments, different sectors have the opportunity to lay the groundwork now.

    For governments, that might look like investments in quantum infrastructure such as cryogenic cooling systems, specialised electronics and quantum-ready networks. For businesses, it may be determining how the technology might be useful to their respective industries, for example accurate simulation of molecules in the creation of batteries for electric carmakers, or fusion power for the energy industry.

    Individuals should consider how quantum might influence their own careers. We’ll need more specialised engineers (including electrical, mechanical, systems and software engineers), technicians, and applications developers. For anyone thinking about the jobs of the future, these are the fields that could be areas of potential opportunity.

    Continue Reading

  • Hyundai Motor Group Advances Hydrogen Vision in Dialogue at APEC CEO Summit Korea 2025

    GYEONGJU, October 30, 2025 – Hyundai Motor Group (the Group) today held a high-level dialogue on hydrogen strategy at the Asia-Pacific Economic Cooperation (APEC) CEO Summit Korea 2025. Hyundai Motor Group Vice Chair and Hydrogen Council Co-Chair, Jaehoon Chang, joined Hydrogen Council CEO, Ivana Jemelkova, to discuss the current state of the hydrogen industry and its role in sustainable growth across the Asia-Pacific region.

    Under the theme “Bridge, Business and Beyond,” the APEC CEO Summit brought together global leaders to address challenges such as regional integration, digital transformation, and sustainability. In the session titled “Hydrogen, Beyond Mobility, New Energy for Society” led by the Group, Vice Chair Chang emphasized hydrogen’s role in achieving carbon neutrality and energy resilience, and called for coordinated efforts to accelerate adoption.

    “Hydrogen accelerates carbon neutrality by addressing the intermittency of renewables and enhancing energy resilience,” said Jaehoon Chang, Vice Chair of Hyundai Motor Group. “Hydrogen also stands out as a strategic energy carrier, enabling localized generation and distribution systems—such as off-grid and microgrid ecosystems—that reduce reliance on centralized grids and strengthen communities’ self-sufficiency.”

    During the session, Vice Chair Chang and Hydrogen Council CEO, Ivana Jemelkova, shared insights on the Global Hydrogen Compass 2025, which outlines a pivotal moment for the industry—shifting from ambition to delivery with USD 110 billion of committed capital across 510 projects past financial investment decision globally.

    Vice Chair Chang also emphasized that long-term collaboration between governments and industry is essential to transform early efforts and innovations into meaningful, scalable outcomes across the hydrogen value chain.

    “Since 2020, global capital commitments to clean hydrogen have grown ten times―a remarkable trajectory,” said Ivana Jemelkova, CEO of Hydrogen Council. “Our next big test is demand which requires clear, practical and stable policies and strong public-private collaboration. At the Hydrogen Council, the largest and only CEO-led global business initiative on clean hydrogen, we are proud to work closely with Hyundai Motor Group in their capacity of Council Co-chair to mobilize key players at this pivotal moment and keep moving hydrogen forward.”

    Building on the insights shared during the session, the Group outlined how it is translating global momentum into action—by leading efforts to both drive demand and ensure supply across the hydrogen value chain.

    To scale up hydrogen generation, the Group is investing in Waste-to-Hydrogen and polymer electrolyte membrane (PEM) electrolysis technologies. For PEM electrolysis, 1MW-class projects are underway in Buan and Boryeong, and a 5MW-class system is being prepared in Jeju. The Jeju project aims to establish a complete green hydrogen ecosystem—from developing mass-production technology for PEM electrolysis to expanding hydrogen mobility applications.

    Since PEM electrolysis operates on the reverse principle of fuel cell technology, the Group is leveraging its extensive expertise to accelerate the hydrogen ecosystem and reinforce Korea’s leadership in clean energy.

    Earlier today, the Group’s Hyundai Motor Company held a groundbreaking ceremony for a new fuel cell production plant in Ulsan. The facility will further drive localized key components and strengthen Korea’s hydrogen manufacturing base.

    In addition, the Group is advancing demand creation through hydrogen-powered logistics operations in Ulsan and Pyeongtaek, Korea, and has deployed hydrogen mobility at Incheon International Airport in Korea.

    Globally, it has deployed port and logistics decarbonization initiatives such as the NorCAL ZERO Project in California and HTWO Logistics in the state of Georgia, supporting clean logistics at Hyundai Motor Group Metaplant America. The Group is also expanding hydrogen infrastructure in Australia, collaborating with the New South Wales government to build hydrogen refueling stations and deploy its XCIENT fuel cell trucks, the world’s first mass-produced and leading heavy duty fuel cell truck.

    “We believe creating demand and securing supply must go hand in hand. That’s why Hyundai is taking bold steps to lead on both fronts,” said Vice Chair Chang. “Building a hydrogen ecosystem is something no single company can do alone—it requires collective effort.”

    The Group has been a pioneer and leader in hydrogen mobility for nearly three decades, achieving many industry firsts and bests, including the world’s first mass-produced hydrogen fuel cell heavy-duty truck and world’s best-selling hydrogen fuel cell passenger vehicle, NEXO. The Group’s vision extends beyond mobility, encompassing the full hydrogen value chain—from production and storage to transportation and utilization.


    Continue Reading

  • L-citrulline protects testicular Sertoli cell function by mitigating DNA damage via the gut-testis axis of sheep fed a high-concentrate diet

    L-citrulline protects testicular Sertoli cell function by mitigating DNA damage via the gut-testis axis of sheep fed a high-concentrate diet

    Animals

    Three-month-old sheep were housed in controlled environmental conditions and divided into two groups. One group of ten sheep were fed control feed (1050 kcal); the other group were fed high-concentrate feed (2010 kcal). The mouse was kept in controlled environmental conditions that were free from specific pathogens and divided into two categories of dietary conditions. One group were fed a standard control diet (4.37 kcal); The other group were fed a high-concentrate diet (16.45 kcal). The animals were euthanized by CO₂ inhalation. During the procedure, CO₂ gas was introduced into the euthanasia chamber at a rate of 10% of the chamber volume per minute (corresponding to a flow rate of 5.8 L/min). The gas flow rate was precisely controlled by adjusting the flow control valve to minimize stress in animals prior to loss of consciousness. CO₂ gas was continuously supplied until the animals completely stopped moving, ceased spontaneous breathing, and exhibited dilated pupils. Once these signs were confirmed, the CO₂ gas supply was turned off, and the animals were observed for an additional 2–3 min to ensure death. All animal experiments were conducted in accordance with the ethical policies and procedures approved by the Inner Mongolia University Animal Care and Use Committee (IMU-MOUSE-2023-013, IACUC Issue No. IMU-SHEEP-2021-011), Inner Mongolia University, China.

    Single-cell library and sequencing

    Testicular tissues were dissected into small fragments and digested with collagenase IV (1 mg/ml, 37 °C, 15 min). After filtration through a 40 μm cell strainer (BD Falcon, USA, 352340), the resulting single-cell suspension was assessed for viability (>90%) and concentration (>1000 cells/μl). Single-cell libraries were prepared using the Chromium Single Cell 3’ Kit v3 (10 × Genomics, USA) and sequenced (PE150) on an Illumina NovaSeq 6000 platform following the manufacturer’s protocol. The sheep reference genome was processed using cellranger mkgtf and cellranger mkref, and raw data were aligned using cellranger count. Subsequent analysis was performed in Seurat, including data normalization, integration, and differential gene expression analysis (FindAllMarkers, thresholds: |log2FC| ≥ 0.25, P < 0.05). Functional enrichment was conducted using g: Profiler based on Gene Ontology (GO) terms.

    Metabolome detection and analysis

    Metabolomic profiling was performed on sterilely collected small intestinal contents using a Waters Acquity I-Class PLUS UPLC system coupled with a Xevo G2-XS QTof high-resolution mass spectrometer (Waters). Separation was achieved on an Acquity UPLC HSS T3 column (1.8 μm, 2.1 × 100 mm). Raw data were normalized prior to statistical analysis. Differential metabolites were identified based on significance thresholds of P < 0.05 (Student’s *t*-test), |log₂FC| ≥ 1, and VIP (Variable Importance in Projection) > 1 (derived from multivariate cross-validation). Metabolite enrichment analysis was conducted using MetaboAnalyst 5.0, and visualization was performed in R Studio (v4.2).

    16S rDNA amplicon sequencing and analysis

    After collecting small intestinal contents under sterile conditions, genomic DNA was extracted and purified using the QIAGEN kit. Subsequently, the samples were sequenced using the Illumina platform.

    Subsequent data analysis was conducted utilizing R Studio (v4.2) in conjunction with other relevant software tools. Initially, the data underwent alpha diversity and beta diversity analysis using QIIME2. Subsequently, Metastats (v2020.6) was employed to conduct a t-test on the species abundance data between the groups. Differential species were identified using a stringent dual-filter criterion: unadjusted P value < 0.05 and Q value < 0.05. Species with a p-value less than 0.05 were deemed significantly different. To assess the correlation between genera exhibiting distinct abundances, Spearman correlation analysis was performed, and correlation values with a significance level of P value < 0.05 were retained. Following this, the resulting correlation network was visualized using Cytoscape (v3.9.0). The functional prediction of differential genera is carried out using the Linear discriminant analysis Effect Size (LEfSe) method and the PICRUSt2 tool.

    Hematoxylin–eosin (H&E) staining

    The testis was placed in Bouin’s solution (Sigma, HT10132, Germany) at 4 °C overnight after the dehydration and embedding of tissue blocks. For this study, serial sections with a thickness of 5 μm were utilized. Following drying at 37 °C, the samples were stained using Lillie-Mayer hematoxylin (Solarbio, G1080, China) and eosin (Zsbio, ZLI-9613, China). The tissue sections were subsequently dehydrated with alcohol and sealed with Neutral Balsam Mounting Medium (ZSGB-BIO, 96949-21-2, China). Finally, the samples were left to dry naturally, facilitating easy observation and statistical analysis.

    Immunohistochemistry

    The testis was placed in Bouin’s solution (Sigma, HT10132, Germany) at 4 °C overnight after the dehydration and embedding of tissue blocks. The tissue sections were dewaxed and incubated in a blocking solution (3% BSA, 10% normal donkey serum in TBST) for 30 min. The primary antibody (Table S1) was incubated overnight at 4 °C. Subsequently, the corresponding secondary antibody was applied, followed by color development using DAB (ZSGB-BIO, ZLI-9013, China). Finally, counterstaining was performed using Lillie-Mayer hematoxylin (Solarbio, G1080, China), and the samples were dehydrated and sealed for further analysis.

    Immunofluorescence

    The testis was placed in 4% paraformaldehyde solution at 4 °C overnight after the dehydration and embedding of tissue blocks. The experimental procedures for dewaxing, blocking, and the application of primary and secondary antibodies followed the standard protocols for immunohistochemistry (Immunohistochemistry). Following the completion of the secondary antibody incubation, the nuclei were stained with DAPI. Finally, the samples were sealed using Fluoromount™ Aqueous (Sigma, F4680, Germany) Mounting Medium for further analysis.

    RNA extraction and RT-qPCR

    Total RNA from testicular tissue and mouse TM4 Sertoli cell line was extracted using the EasyPure RNA kit (TRANS, ER101-01, China). Subsequently, cDNA was synthesized through reverse transcription using an RNA reverse transcription kit. RT-qPCR was performed on a Roche Light Cycler 480II System (Roche, Germany) using TB Green Premix Ex TaqII (Takara, RR820A, China). The primer sequences for this study were provided in Table S2.

    Fecal microbiota transplantation

    Use 3-week-old male ICR mice as recipients for fecal microbiota transplantation. Prepare a solution by mixing 1 g of sheep small intestinal contents with 1 ml of sterile glycerol (20%) and diluting it with normal saline to a concentration of 0.05 g/ml. Mice are treated with a combination of antibiotics, including vancomycin (0.5 g/L), neomycin sulfate (1 g/L), metronidazole (1 g/L), and ampicillin (1 g/L), for two consecutive weeks prior to microbiota transplantation. After the antibiotic treatment, fecal transplantation experiments were conducted daily for a duration of eight weeks.

    Cells culture and treatment

    Mice TM4 Sertoli cell line were cultured in DMEM medium containing 10% fetal bovine serum (Gibco, 10099-141, Australia) and 1% penicillin-streptomycin (HyClone, SV30010, China). The cells were cultured in a cell incubator at 37 °C and 5% CO2, and the medium was changed every 24 h. Cells were passaged when the cell density reached 80–90%, and cells were treated 24 h later (5 mM L-Citrulline (MCE, HY-N0391, China); 35 μM Sucrose; 35 μM Sucrose + 5 mM L-Citrulline).

    Cell proliferation assay

    Cell proliferation was detected using MTT Detection kit (Beyotime, C0009, Nantong, China). After 48 h of treatment, discard the medium, add 10 μl/well of MTT working solution into a 96-well plate, and incubate at 37 °C for 4 h in the dark. Next, add 100 μl per well of the Formazan solution from the MTT kit and incubate for 1 h in the dark. Finally, the absorbance of the 96-well plates at 570 nm was measured using a Microplate Reader (Bio-Rad, iMark™, USA).

    ROS evaluation

    For TM4 cell line, ROS staining reagent (Beyotime, S0033S, China) was added to a 96-well plate. Then, the plate was incubated at 37 °C for 30 min in a dark environment. Following this, the cells were washed twice with PBS and the fluorescence intensity of each group was immediately observed using a Nikon fluorescence microscope. For tissue ROS assessment, tissue homogenates were prepared in liquid nitrogen and centrifuged to obtain the supernatant. ROS levels were measured using a mouse ROS ELISA kit (JILID, J25190, China). Following the addition of enzyme conjugate reagent, the plates were incubated at 37 °C for 60 min. After washing with the provided buffer, the wells were blotted dry and developed with substrate at 37 °C for 15 min, protected from light. Absorbance was measured at 450 nm.

    Sertoli cell isolation and culture

    Testes from 7-day-old mice were decapsulated and digested sequentially. The first digestion used 0.1% collagenase IV at 37 °C with shaking (85 rpm) for 20 min. After sedimentation, the supernatant was discarded, and the tissue was washed twice with PBS. The second digestion was with 0.1% collagenase IV and 0.1% hyaluronidase at 37 °C for 10 min, followed by centrifugation (500 rpm, 1 min) and PBS washing (x3). The third digestion involved 0.1% collagenase IV, 0.1% hyaluronidase, and 0.25% trypsin at 37 °C for 20 min. After terminating the digestion, the solution was centrifuged (1000 rpm, 3 min), and the pellet was resuspended in culture medium. The single-cell suspension was seeded onto Matrigel-coated dishes and cultured at 34 °C with 5% CO₂ for 48 h. Cells were treated with 20 mM Tris for 2.5 min, washed with DMEM/F12 (x3), and culture was resumed. Drug treatments followed the same protocol as for TM4 cells.

    Western blot

    The TM4 Sertoli cells were lysed using RIPA buffer (Beyotime, P00113B, China). Proteins were separated by SDS-PAGE and transferred onto PVDF membranes (Millipore, ISEQ00010, Germany). After blocking with 5% BSA for 1 h, the membranes were incubated overnight at 4 °C with primary antibodies (Table S1), followed by a 2 h incubation with HRP-conjugated secondary antibodies at room temperature. Protein bands were visualized and quantified using ImageJ software.

    Enzyme-linked immunosorbent assay (ELISA)

    The concentrations of L-citrulline in the small intestinal contents and testis were quantified using enzyme-linked immunosorbent assay (ELISA) kits (J43384 and J25562, Giled Biotechnology, Wuhan, China), following the manufacturer’s protocols.

    Statistical analysis

    In this study, GraphPad Prism (v 8.0) software was used for statistical analysis. Bioassay data were shown as mean ± SEM. Data analysis was performed using two-tailed Student’s t test or one-way analysis of variance (ANOVA). Significant difference was *P < 0.05, **P < 0.01, ***P < 0.0001. Two-tailed Student’s t-test was used to compare the mean differences between two independent samples. One-way ANOVA was used to compare the mean differences among four independent samples, with post-hoc analysis performed using the Tukey’s test.

    Continue Reading

  • MHI and Nippon Shokubai to Develop Ammonia Cracking System for NEDO’s “Development of Technologies for Building a Competitive Hydrogen Supply Chain” Project

    MHI and Nippon Shokubai to Develop Ammonia Cracking System for NEDO’s “Development of Technologies for Building a Competitive Hydrogen Supply Chain” Project

    Ammonia Cracking Plant (3D Rendering)

    Tokyo, October 30, 2025 – Mitsubishi Heavy Industries, Ltd. (MHI) and NIPPON SHOKUBAI CO., LTD. (Nippon Shokubai) have received approval for their jointly submitted proposal to Japan’s New Energy and Industrial Technology Development Organization (NEDO) for its “Development of Technologies for Building a Competitive Hydrogen Supply Chain” project.

    The selected project aims to develop technology for the construction of a hydrogen supply chain using ammonia as a hydrogen carrier (hydrogen storage and transport medium), promoting development of medium-scale, decentralized ammonia cracking technology near hydrogen demand sites. The project advances ammonia cracking technology using steam and exhaust gases, employing an independently developed, low-temperature, highly active and highly durable ammonia cracking catalyst without the use of noble metals typically used in conventional low-temperature active catalysts. This innovative technology will be used to verify challenges toward practical application.

    Following the project selection, the two companies will conduct the following activities during the project period through fiscal 2027, with long-term testing in mind, using a commercial-scale demonstration plant. MHI will leverage its extensive experience in ammonia plant construction and its knowledge of ammonia handling to carry out the basic design (Front End Engineering Design: FEED) of the demonstration plant. MHI will finalize the demonstration plant specifications aiming to resolve technical challenges necessary for commercialization, with support from Hokkaido Electric Power Co., Inc. (HEPCO). Nippon Shokubai will promote the development of elemental technologies focused on verifying the durability of ammonia cracking catalysts, utilizing its abundant experience and expertise in catalyst development and practical application, including process catalysts such as acrylic acid catalysts and environmental catalysts for automotive and exhaust gas treatment.

    MHI and Nippon Shokubai will promote the development of ammonia cracking systems that contribute to building hydrogen and ammonia supply chains, aiming for early establishment and social implementation of decarbonization technologies, and contributing to the realization of a sustainable carbon-neutral society.

    HEPCO, aiming to achieve carbon neutrality in Hokkaido by 2050 across the entire energy sector, is expanding the introduction of renewable energy and decarbonizing power sources, while promoting initiatives related to ammonia, hydrogen, and carbon capture utilization and storage (CCUS) in the Tomakomai region and other areas of Hokkaido.

    Continue Reading

  • What it Means for Foreigners Working in China

    What it Means for Foreigners Working in China

    Foreigners working in China now benefit from clearer legal recognition under Judicial Interpretation II. The Supreme People’s Court expands the conditions under which foreign nationals can be confirmed as employees, including those with permanent residency, valid work permits, or other lawful procedures. It also affirms the role of representative offices in labor disputes, strengthening legal accountability. (Also see our series article: China’s New Judicial Interpretation II on Labor Disputes: Key Themes at a Glance)


    Find Business Support

    On August 1, 2025, China’s Supreme People’s Court (SPC) released the long-awaited Judicial Interpretation II on the Application of Law in Labor Dispute Cases (Fa Shi [2025] No. 12, hereinafter “Judicial Interpretation II on Labor Disputes” or “Judicial Interpretation II”), along with a set of illustrative cases. Both came into effect on September 1, 2025. These developments mark a significant update to labor adjudication standards, especially for foreign nationals working in China.

    Of particular relevance to foreign-invested enterprises (FIEs), Article 4 of Judicial Interpretation II sets out clearer criteria for recognizing employment relationships involving foreign nationals. This is the SPC’s latest response to legal ambiguities that have emerged since the partial invalidation of Judicial Interpretation I in 2021. The new rules aim to unify judicial practice and provide more predictable outcomes in labor disputes involving expatriates.

    Explore vital economic, geographic, and regulatory insights for business investors, managers, or expats to navigate China’s business landscape. Our Online Business Guides offer explainer articles, news, useful tools, and videos from on-the-ground advisors who contribute to the Doing Business in China knowledge.
    Start exploring

    Judicial confirmation of employment relationships for foreign nationals in China

    Article 4 of Judicial Interpretation II explicitly lists three qualifying scenarios and introduces a catch-all clause, which provides courts with clearer criteria and greater flexibility in adjudicating labor disputes involving foreign employees.

    Article 4 of Judicial Interpretation II

    Where a foreign national establishes an employment relationship with an employer within the territory of the People’s Republic of China, and any of the following circumstances apply, the people’s court shall, in accordance with the law, uphold the foreign national’s request to confirm the existence of a labor relationship with the employer:

    1. The foreign national has obtained permanent residence status;
    2. The foreign national has obtained a work permit and is lawfully residing or staying in China; and
    3. The foreign national has gone through relevant procedures in accordance with applicable national regulations.

    Scenario 1: Obtaining permanent residency

    Find Business Support

    Foreign nationals who have obtained permanent residency in China, formally recognized through the Foreigner’s Permanent Residence Permit, are entitled to employment rights that closely mirror those of Chinese citizens. According to the Measures on the Enjoyment of Relevant Benefits by Foreigners with Permanent Residency in China, holders of this permit are exempt from the requirement to obtain a separate employment certificate. They may also be prioritized for other talent-related documentation, such as the Foreign Expert Certificate or local talent residence permits. This legal status grants foreign residents the right to work in China without additional administrative hurdles.

    Consequently, the SPC’s inclusion of permanent residency as a qualifying condition under Article 4 of Judicial Interpretation II is not a new entitlement, but rather a formal judicial acknowledgment of existing legal norms. It provides courts with a clear basis to support the recognition of labor relationships involving permanent residents, reinforcing consistency in adjudication and reducing ambiguity in cross-border employment disputes.

    Scenario 2: Obtained a work permit and legally residing in China

    Obtaining a work permit and legally residing in China refers to a foreign national who has followed the official procedures to both work and live in China in compliance with national laws. This typically includes:

    • Obtaining a Notification Letter of Foreigner’s Work Permit (《外国人工作许可通知》) before entering China;
    • Entering China on a Z visa or R visa, which corresponds to the intended purpose of stay—namely, employment;
    • Registering accommodation with the local public security bureau within 24 hours of arrival (if not staying in a hotel);
    • Applying for a Foreigner’s Work Permit (《外国人工作许可证》) within 15 days of entry; and
    • Obtaining a residence permit from the Exit-Entry Administration of the Public Security Bureau within 30 days of entry, which serves as the legal basis for residence in China.

    Together, these steps establish both the right to work and the legal status to reside in China.

    Notably, certain categories of foreign talent may be exempt from obtaining the Notification Letter and Work Permit. These include individuals holding a Foreign Expert Certificate, a Permit for Offshore Petroleum Operations, or a Temporary Commercial Performance Permit. Such exemptions are recognized under existing regulations and reflect the flexibility built into China’s foreign employment system.

    Judicial Interpretation I vs. Judicial Interpretation II

    Under Judicial Interpretation I, the SPC adopted a narrow stance on the recognition of employment relationships involving foreign nationals. Article 33 explicitly stated that if a foreigner or stateless person had not obtained the required employment documentation, courts would not support claims of a labor relationship, even if a contract had been signed. The only exception was for individuals who held both a Foreign Expert Certificate and a Foreigner’s Work Permit, reflecting a limited and highly specific compliance pathway.

    This rigid framework excluded many foreign professionals working in China under legitimate but alternative arrangements, such as those under newer talent schemes or bilateral agreements. It also created uncertainty for employers, particularly foreign-invested enterprises (FIEs), navigating China’s evolving regulatory landscape.

    Judicial Interpretation II addresses these limitations by significantly broadening the scope of judicial recognition. Article 4 no longer restricts recognition to holders of the Foreign Expert Certificate. Instead, it supports labor relationship confirmation for any foreign national who has obtained a valid work permit and is legally residing in China. This shift reflects a more inclusive and realistic understanding of foreign employment in China and aligns judicial practice with administrative reforms introduced since 2017.

    For HR professionals and legal teams, this expansion provides clearer compliance benchmarks and reduces the risk of disputes arising from technical documentation gaps. It also signals the SPC’s intent to harmonize labor adjudication with China’s broader talent attraction and immigration policies.

    Scenario 3: Completing other procedures in accordance with national regulations

    The third scenario under Article 4 introduces a flexible clause that accommodates foreign nationals who may not fall under the standard employment categories but have nonetheless followed lawful procedures to work in China. This provision acknowledges that, in addition to permanent residency and conventional work permits, there are special employment types governed by specific national regulations.

    This catch-all clause serves as a legal safety net, allowing courts to recognize labor relationships in cases where foreign nationals have complied with alternative but legitimate employment procedures. It reflects the SPC’s intent to adapt to the evolving landscape of foreign employment in China, where new talent programs, bilateral arrangements, and industry-specific permits are increasingly common.

    For employers, especially FIEs, this provision offers greater clarity and flexibility. It ensures that lawful employment, regardless of the specific permit type, can be judicially recognized, provided the foreign national has followed the relevant national procedures.

    Judicial support is not automatic

    While Judicial Interpretation II expands the scenarios under which courts may support the recognition of employment relationships involving foreign nationals, it’s important to note that such support is not automatic. Article 4 uses the phrase “the people’s court may support in accordance with the law”, rather than “shall support”, indicating that judicial confirmation is discretionary and subject to further evaluation.

    This means that even if a foreign national meets one of the listed conditions, such as holding permanent residency or a valid work permit, the court will still assess the substantive elements of the employment relationship. These include the existence of a signed contract, the nature of the work performed, the degree of control and supervision by the employer, and other indicators of a genuine labor relationship.

    For HR professionals and legal teams, this highlights the importance of maintaining clear documentation and ensuring that employment arrangements with foreign nationals comply with both procedural and substantive legal standards. Courts will take a holistic view, and compliance with administrative requirements alone may not suffice if the underlying employment facts are unclear or inconsistent.

    Representative offices can be parties to labor disputes

    Article 5 of Judicial Interpretation II

    A duly established representative office of a foreign enterprise may serve as a party in labor dispute cases. If a party applies to add the foreign enterprise to the litigation, the people’s court shall support the application in accordance with the law.

    Article 5 of Judicial Interpretation II introduces another clarification: a duly registered representative office (RO) of a foreign enterprise in China may now be named as a party in labor dispute proceedings. This marks a significant shift from prior judicial practice, where representative offices, due to their lack of legal personhood and employer qualifications, were often excluded from direct litigation and could only participate indirectly through labor dispatch agencies.

    Find Business Support

    Under China’s legal framework, representative offices are non-profit liaison entities established by foreign companies to conduct business-related activities such as market research, coordination, and promotion. They are not permitted to engage in profit-making activities or directly hire employees. Instead, staffing must be arranged through authorized third-party labor dispatch agencies, which formally sign employment contracts with the workers.

    Despite these structural limitations, Judicial Interpretation II acknowledges the practical reality that representative offices often function as the de facto employer in daily operations. By affirming their eligibility to be named as parties in labor disputes, the SPC strengthens legal accountability and provides greater protection for employees working under such arrangements.

    Moreover, the interpretation allows courts to support applications to add the foreign parent company to the litigation, especially in cases where the representative office lacks independent assets or has been dissolved. This provision reflects a broader trend toward tightening cross-border labor compliance and preventing foreign enterprises from evading liability through corporate structuring.

    For FIEs operating representative offices in China, this development underscores the need for robust HR compliance. Even without formal employer status, representative offices must ensure that labor dispatch arrangements, workplace management, and employee rights are handled in full accordance with Chinese labor laws. Failure to do so may expose both the RO and its parent company to legal risk and reputational damage.

    Key takeaway

    Judicial Interpretation II marks a significant step forward in clarifying and expanding the legal framework for foreign nationals working in China. By broadening the scenarios under which employment relationships can be judicially recognized and affirming the role of representative offices in labor disputes, the SPC provides FIEs with clearer compliance pathways and stronger legal safeguards. HR teams must ensure that employment arrangements meet both procedural and substantive legal standards to mitigate risks and uphold labor rights.

    About Us

    China Briefing is one of five regional Asia Briefing publications. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Haikou, Zhongshan, Shenzhen, and Hong Kong in China. Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in Vietnam, Indonesia, Singapore, India, Malaysia, Mongolia, Dubai (UAE), Japan, South Korea, Nepal, The Philippines, Sri Lanka, Thailand, Italy, Germany, Bangladesh, Australia, United States, and United Kingdom and Ireland.

    For a complimentary subscription to China Briefing’s content products, please click here. For support with establishing a business in China or for assistance in analyzing and entering markets, please contact the firm at china@dezshira.com or visit our website at www.dezshira.com.

     

    Continue Reading

  • Dollar gains as Fed cut bets recede; yen on guard

    Dollar gains as Fed cut bets recede; yen on guard

    The dollar nudged higher on Thursday as traders scaled back bets of a U.S. rate cut in December following push back from Federal Reserve Chair Jerome Powell.

    Yuji Sakai | Digital Vision | Getty Images

    The dollar nudged higher on Thursday as traders scaled back bets of a U.S. rate cut in December following push back from Federal Reserve Chair Jerome Powell, pinning the yen near an eight-month low ahead of the Bank of Japan’s (BOJ) rate decision.

    The day was shaping up to be another busy one for markets with the BOJ’s policy announcement due and a highly anticipated meeting between U.S. President Donald Trump and China’s leader Xi Jinping, where the two will seek to de-escalate their trade war.

    Investors were still reeling from the aftermath of the Fed decision in the early Asian session, after the U.S. central bank lowered rates by 25 basis points as expected and said it will end its balance sheet drawdown on December 1.

    But Powell took the punch bowl away by saying a policy divide within the central bank and a lack of federal government data may put another rate cut out of reach this year.

    That sent the dollar rising broadly, with sterling last trading at $1.3195 after falling to a 5-1/2-month low in the previous session.

    The euro was nursing losses and rose 0.03% to $1.1604, after weakening 0.43% overnight.

    “Clearly, the FOMC is divided on the policy outlook from here and with the government in shutdown still, I think Powell wants to approach policy more cautiously,” said Carol Kong, a currency strategist at Commonwealth Bank of Australia (CBA).

    “We still expect a cut in December, but obviously with Powell’s cautious comments, the risk is that a rate cut is delayed to 2026.”

    The market odds of the Fed delivering another quarter-point cut in December have eased to around 68%, having been nearly fully priced before Wednesday’s decision. 

    Waiting on the BOJ

    The focus on Thursday turned to a policy decision from the BOJ. The central bank is seen keeping rates steady but is likely to reiterate its resolve to continue pushing up still-low borrowing costs.

    Ahead of the outcome, the yen was languishing near an eight-month low against a resurgent dollar and last stood at 152.59.

    It similarly held near an all-time low against the euro at 177.12.

    “I think the most interesting thing to look out for is the vote. At the last meeting, two out of nine board members were in favor of a 25-basis-point rate hike. So it will be interesting to see how many officials are calling for a hike at this meeting,” said CBA’s Kong.

    “We know that the BOJ tends to be more politically sensitive. So given the Takaichi administration has just been elected, and they are now compiling another economic package, I think the BOJ will stay cautious in the very near term.”

    Some investors are betting that the election of Sanae Takaichi as Japan’s new prime minister could complicate the BOJ rate outlook, given she is an advocate of loose monetary policy.

    Elsewhere, the Australian dollar was little changed at $0.6575, while the New Zealand dollar eased slightly to $0.5763.

    Apart from the BOJ, investors will also have their eyes on an expected meeting between Trump and Xi, as fragile trade ties between the two nations continue to keep markets on edge.

    “Given the positive remarks from both parties at the conclusion of the preliminary talks in Malaysia over the weekend, markets already expect that the ceiling for tariffs is in place as China likely backs down from its latest rare-earth controls announcement,” said Garrett Melson, a portfolio strategist at Natixis Investment Managers.

    Continue Reading