Category: Finance

Office markets come rain or shine, multinational companies like longcheng Business District

Spark global limited reports:

Office markets in the Kuala Lumpur CENTRAL Business District/city centre, Kuala Lumpur suburbs and other areas such as Selangor have been negatively impacted since operational controls were imposed on March 18 last year to contain the COVID-19 outbreak in Malaysia. Down.
However, as the epidemic began to be brought under control, the government announced that the Malaysian epidemic advanced from the epidemic phase to the end of October, further relaxing various controls, plus allowing Malaysians who had completed vaccination across the country and went abroad on the 11th of this month, etc. Many businesses and economic activities have resumed and the Malaysian economy is rebooting. Has the office market also experienced a turnaround?

On the other hand, why are many companies still operating in downtown Kuala Lumpur or the central Business District (CBD), where rents are highest, when the pandemic has hit the economy so hard?
The growing imbalance between supply and demand for office space in the Klang Valley, especially in the Kuala Lumpur metropolitan area, will exacerbate the already fierce competition in the market.


Facebook’s leakers are full-time employees Increase internal dissent

Spark global limited reports:

Zuckerberg famously dropped out of a congressional hearing last April. Some say that the technical level of the committee members is not high. (Ap)
San Francisco, Nov. 2) CNBC reported that the Edge posted a recording of a Facebook staff meeting in July that brought people to talk to Zuckerberg after tech news site The Verge revealed it. What Zuckerberg really thinks about many topics is understandable, but what’s more shocking than Zuckerberg’s candid comments is that so much of it was recorded and leaked to the media.
The leaks show that more and more people are taking a different view of Facebook.

Facebook is a company that provides transparency to its employees. Several people familiar with the matter previously told CNBC that the company will hold an all-hands meeting with senior executives every Friday afternoon, allowing employees access to most parts of the company.
Employees also post messages on Workplace, the company’s internal social network, to update their colleagues’ status, according to sources.
However, Facebook does not tolerate outside leaks. For example, companies often warn employees not to talk to the media, and communications teams sometimes refer to specific journalists. Once the source of the leak is discovered, the employee involved can be fired. Facebook has a team dedicated to investigating scandals and tracking down leakers.

At the time of the energy crisis, why didn’t the oil giants expand production?

Spark Global Limited reports:

At present, many large energy companies around the world have created the largest cash flow in many years. However, in the face of energy shortages this winter, it is best not to expect these companies to spend money on increasing the supply of oil and natural gas in response to the crisis.

  Exxon Mobil (XOM.US), Royal Dutch Shell (RDS.A.US) and Chevron (CVX.US) confirmed last week that they plan to spend most of their profits on stock repurchases and dividends. Although these companies will increase capital expenditures next year, this is based on an unusually low base in 2021 and within the framework established before the recent surge in fossil fuel prices.

  This is quite a change from the situation in the past when energy prices rose. For example, in the early 2010s, the rise of the US shale oil market and concerns about the shortage of fossil fuels prompted a significant increase in capital expenditures by energy companies. However, due to overproduction and lack of cost control, this boom ended in pain.

  And this time, when company shareholders are tired of the low returns of the past 10 years and worry about the major climate risks the company faces, large energy companies seem to be more willing to return cash to shareholders.

  Stewart Glickman, an analyst at CFRA Research in New York, said: “Not long ago, these companies were hit by the plunge in prices, so it’s no surprise that they were a little bit shy about capital expenditures. In addition, at the moment, these companies seem to be Trapped between two extreme groups-ESG and cash flow-hungry shareholders.”

  For producers, as long as they do not increase spending on fossil fuels, these two groups can be satisfied, but this is a bad sign for consumers who desperately need more supplies. Currently, Europe and Asia are competing for natural gas, which has pushed prices up to record levels, while the United States and India are asking OPEC+ to increase production.


The legacy of the oil price shock

Spark Global Limited reports:

Matthew Lynn says after the recent surge in gas prices, we can expect slower growth, industrial decline, and a newly confident Russia. Anyone looking at their heating bills in the coming months will be painfully aware that gas prices have soared. Over the course of 2021, that number has increased more than fourfold. In frenzied trading last week, gold rose by more than 20 per cent a day. Why is that? Renewables are an important part of the energy mix, but they are not generating as much electricity as expected, while the massive stimulus package and post-pandemic rebound have led to a surge in demand.
Energy markets have not seen such a sharp rise in prices since the “oil shock” of the 1970s. That was when Opec, the oil producers’ cartel, discovered it could hold the developed world to ransom by switching supplies on and off. The result was an era of “stagflation”, in which prices rose rapidly, economic growth stagnated and power shifted to the Middle East. The turmoil it unleashed destroyed governments on both sides of the Atlantic.

It’s not the ’70s anymore, but energy is still important
This one is unlikely to be so dramatic. We use much less energy as a percentage of GDP than we did 50 years ago. It now accounts for 4% of GDP, compared with a peak of 11% in the 1970s. Services are far more important than they used to be, we are far more energy efficient, and all the investment in green energy means we at least have alternatives that are increasingly important, even if they are not yet a substitute for natural gas. But that does not mean that big increases in energy prices are irrelevant. In fact, they will affect the economy in three important ways.
First, they slow economic growth. Rising energy prices will eat into demand in all major economies. There is little difference between higher industrial costs and higher consumer prices. Either way, people will have less money to spend. It is true that some of this money will be recycled, because energy exporters will be able to buy more energy. But early commodity cycles show that the process is rarely smooth. A lot of demand would be lost and all the major economies would be in trouble. Worst of all, this will happen when they are just beginning to recover from the pandemic.
Second, industrial decline is expected. Soaring energy prices are a pain for consumers, but they can largely be absorbed by cutting some costs elsewhere. However, it could be disastrous for many industries that use a lot of electricity. If costs can’t be passed on to consumers — and often they can’t if the product is made with a substitute, or if it’s not essential — the company may really be in trouble. Industries such as chemicals, building materials, paper, glass and food production are likely to be shut down.


European stocks rose after Wall Street hit new highs

Spark global limited reports:

European stocks rose Tuesday morning, following Wall Street’s record late Monday, as continued strength in oil prices boosted investor confidence.
In London, the FTSE 100 was up 0.3 percent at the start of trading, extending this week’s gains. The CAC index in Paris rose 0.1 percent and the DAX in Frankfurt rose 0.4 percent.
Traders will be looking ahead to the UK’s autumn budget on Wednesday, however, many of the announcements by Rishi Sunak, finance minister, have already been reported, including lifting the public sector pay freeze and raising the minimum wage.

In Europe, German exports were hit by shortages last month. The Ifo Institute’s export expectations index fell to 13.0 points from 20.5 in September, its lowest level since February.
Read more:2021 Budget Preview: What to expect from Finance Minister Rishi Sunak
Across the Atlantic, STANDARD & Poor’s 500 index futures (ES=F) rose 0.3 percent, Dow Jones index futures (YM=F) rose 0.1 percent and Nasdaq futures (NQ=F) rose 0.5 percent as European trading began.

Tesla’s market capitalization soared to $1tn for the first time, sending the S&P 500 and Dow Jones to new highs last night. Elon Musk’s electric car maker has secured an order for 100,000 vehicles from rental company Hertz.
Meanwhile, Asian markets were mixed on Tuesday after another property developer defaulted, adding to worries about the property sector stemming from the Evergrande Group’s (3333. HK) debt crisis.
Hyundai Land (1107. HK) said it had missed a debt payment due to “unexpected liquidity issues”. The move comes after Fantasia Holdings Group (1777. HK) defaulted on a DOLLAR bond due in early October.
The Nikkei closed higher, Tokyo rose 1.8%, Hong Kong’s Hang Seng fell 0.6% and the Shanghai Composite fell 0.3%.
Elsewhere, oil prices remained near records after Brent crude hit a three-year high of $86.5 a barrel on Monday. Oil prices have more than doubled from about $40 a barrel a year ago as demand for energy suddenly rose in the wake of the pandemic and supplies remained tight.

Legal Issues Concerning the Disposal of Non-performing Assets in Banking Finance

Spark Global Limited Reports:

The increasing rate of bad debts in banks reduces the ability of banks to respond to risks and harms the sound operation of China’s financial system. Moreover, the non-performing assets formed by bank bad debts are the largest financial non-performing assets. Properly disposing of non-performing banking assets can not only give play to the residual value of non-performing financial assets, but also improve the operating environment of China’s financial system. The disposal of non-performing financial assets is inseparable from the support of laws and regulations. At present, China’s relevant laws on the disposal of non-performing financial assets have some problems in applicability, statute of limitations, transfer of claims, notification methods, litigation jurisdiction, etc., which have seriously affected China’s finances. The efficiency of disposal of non-performing assets.

1. Introduction to the causes and disposal methods of non-performing financial assets

(1) Causes of non-performing financial assets

Due to the special status of China’s commercial banks, their business methods and business philosophy are different from those of ordinary enterprises. In the traditional planned economy system, the state-owned nature of banks makes their business philosophy rigid. There is no concept of independent operation and self-financing, leading to banks Difficulty in transition after restructuring. Secondly, the bank’s loan business evaluation system is not perfect, the evaluation work is not deep enough, the loan management system is not sound enough, and the lack of a risk early warning mechanism has all led to the generation of financial non-performing assets. 

(2) Disposal of non-performing financial assets

Regarding the disposal of bank financial non-performing assets, China has a complete set of disposal methods, which mainly include the following methods: direct collection, using appropriate means within the effective statute of limitations for collection work; negotiated disposal, through agreement mediation between the debtor and the creditor , Using mortgages, pledges and auctions to solve the problem of financial non-performing assets; borrowing new debts to repay old debts, by converting non-performing financial assets into new debts, deferring the repayment of the principal and re-borrowing to repay old debts to eliminate financial non-performing assets or Change the form of financial non-performing assets.

2. Legal issues concerning the disposal of non-performing financial assets

(1) Issues concerning the application of laws and regulations

Regarding the disposal of non-performing financial assets, China has multiple levels of laws and regulations, such as the “Commercial Bank Law”, “Regulations on Financial Asset Management Companies”, and the notice issued by the Ministry of Finance on the issue of the “Guiding Opinions on Liquidation of Non-performing Assets of State-owned Enterprises” Etc., 

(2) Legal issues concerning the ownership of litigation rights

According to the “Civil Procedure Law of the People’s Republic of China”, the jurisdiction over litigation issues related to financial non-performing assets should be strictly in accordance with the law, that is, the right of litigation should be vested in accordance with the location of the bank where the actual debt belongs and the actual location of the debt company.