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China Gauge Shows Expansion in Factory Activity

Global Insolvency - Mon, 2024-04-01 12:11

China Gauge Shows Expansion in Factory Activity global.abi.org Mon, 04/01/2024 - 12:11 A private gauge showed China’s factory activity expanded in March, marking a fifth successive monthly improvement in the country’s manufacturing sector and reaching its highest level since February 2023, the Wall Street Journal reported. The China Caixin manufacturing purchasing managers index rose to 51.1 in March from 50.9 in February, according to data released Monday by Caixin Media Co. and S&P Global. A reading above 50 indicates that the manufacturing sector grew, while a reading below 50 indicates contraction. Monday’s upbeat data comes as both supply and demand grew at a faster pace in March, as expansion in manufacturers’ output reached a 10-month high and growth in total new orders accelerated. Improving external demand also helped push the subindex for new export orders to its highest level since February 2023 as the global economy recovers. However, manufacturers were still reluctant to hire more workers on cost concerns, with the barometer for the labor market remaining in contraction for the seventh straight month. Meanwhile, average input costs fell for the first time since July 2023, though dropping raw material prices could provide leeway for manufacturers to lower product prices amid fierce competition, Caixin said. Read more. (Subscription required.) Location China

China Home Sales Drought Persists in March

Global Insolvency - Mon, 2024-04-01 12:10

China Home Sales Drought Persists in March global.abi.org Mon, 04/01/2024 - 12:10 China’s home sales slump dragged on in March, signaling a much-hoped turnaround for the sector isn’t in sight yet, Bloomberg News reported. The value of new-home sales from the 100 biggest real estate companies slid about 46% from a year earlier to 358 billion yuan ($49.6 billion), following a 60% decline in February, according to preliminary data from China Real Estate Information Corp. China’s protracted property sales drought has weighed on many of the nation’s biggest builders and eroded the balance sheets of the largest state-owned banks as their bad loans swell. Beijing has tasked banks with helping pump up the domestic economy as well as supporting debt-laden developers. Country Garden Holdings Co., once a powerhouse in the residential space, made a surprise announcement late Thursday that it will miss a deadline for reporting annual results. China Vanke Co., at one time the largest listed developer, said net income tumbled 46% last year, sliding more than analysts expected. March is traditionally a quick period for home sales, surging 93% from February, but sales were still weaker than the monthly average in the third and fourth quarters of last year, according to CRIC. Separate figures released Monday showed a mixed picture for home prices in China. Prices of new homes gained 0.27% in March, accelerating from 0.14% in February, China Index Holdings data showed. From a year earlier, they climbed 0.82%. Read more. Location China

Lira Surges as Erdogan Gives Turkey’s Economy Plan More Time

Global Insolvency - Mon, 2024-04-01 11:49

Lira Surges as Erdogan Gives Turkey’s Economy Plan More Time global.abi.org Mon, 04/01/2024 - 11:49 Turkey’s lira reversed earlier losses and surged against the dollar on Monday as President Recep Tayyip Erdogan indicated he’ll give his economic team more time to produce results despite facing an unprecedented rout at local elections over the weekend, Bloomberg News reported. Erdogan’s ruling Justice and Development Party suffered a defeat on Sunday, ceding control of many of Turkey’s cities, including Istanbul and Ankara, to the opposition. The president conceded defeat quickly in a speech at half past midnight, saying lessons should be learned from it, while also saying that he expected to see positive results from an economic turnaround program in the second half of the year. The lira climbed as much as 2.2% against the dollar, amid thin trading due to the Easter holiday across many European markets. The Turkish currency was being quoted 1.3% stronger at 31.9615 per dollar as of 3:45 p.m. in Istanbul, and was by far the best performing emerging-market currency on the day. Erdogan’s comments following the vote helped ease pressure on other risk indicators for the country as well, with credit default swaps and 10-year bond yields both falling on Monday. The cost to insure Turkish debt against default for five years dropped six basis points to the lowest level since March 4, and the yield on 10-year lira government bonds fell 41 basis points to 26.4%. Read more. Location Turkey

Cerberus Mulls Bigger Intrum Partnership as Company Tackles Debt

Global Insolvency - Mon, 2024-04-01 11:49

Cerberus Mulls Bigger Intrum Partnership as Company Tackles Debt global.abi.org Mon, 04/01/2024 - 11:49 Cerberus Capital Management LP and Intrum AB are considering a more extensive partnership as the Swedish debt collector explores options to address its borrowings, Bloomberg News reported. The U.S. alternative investor is looking at further ways to invest in Intrum and its assets after buying a portfolio from the company earlier this year, said people familiar with the matter. Talks are preliminary and might not yield any outcome, said the people, who asked not to be identified as the details are private. Intrum raised net proceeds of 8.2 billion kroner ($769 million) when Cerberus agreed in January to pay 98% of book value for a third of its non-performing loan portfolio. Intrum has been considering alternatives to deal with looming maturities, as its high leverage and business challenges have cut access to debt capital markets. The company owes €5.4 billion ($5.8 billion) with some borrowings due as soon as July. Read more. Location Sweden United States