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China’s economists debate deficit monetisation

china’s economists debate deficit monetisation

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NO ONE WOULD ever describe the Chinese central bank as Germanic. After all, China’s broad money supply has tripled over the past decade alone, the kind of expansion that would send shivers through Germany’s inflation hawks. But listen closely and Teutonic inflections can be heard in Beijing. A ruckus about how to finance this year’s yawning fiscal deficit has brought out China’s own inflation hawks. They warn that moves by the People’s Bank of China (PBOC) to purchase government bonds directly, as dovish economists have recommended, could spell trouble. And their conservatism seems to be prevailing—in theory, if not entirely in practice.The question of deficit financing has arisen because of the sheer amount of public spending needed in China, much as in other countries hit by the covid-19 pandemic. On May 22nd the finance ministry announced that the central and provincial governments would collectively issue 8.5trn yuan ($1.2trn) in new bonds in 2020, nearly twice as much as last year and equivalent to about 8% of GDP. That, however, threatens to push bond yields higher, raising the cost of financing just as the central bank is trying to keep it down.Liu Shangxi, the head …

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Finance CEOs worry markets are too optimistic about economy

finance ceos worry markets are too optimistic about economy

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Leaders of the biggest financial companies are getting more optimistic about an economic rebound as the pandemic lockdown eases, but say recent stock gains might have overshot reality.“The market is assuming that we’re not going to see a severe second wave or third wave” of COVID-19, and that treatments will become available to cushion the impact of new outbreaks, BlackRock Chief Executive Officer Larry Fink said Wednesday at a virtual industry conference. “I do believe jobs are going to be slower coming back than other people believe.”

“I do believe jobs are going to be slower coming back than other people believe,” said BlackRock CEO Larry Fink. Bloomberg

Stock-market optimism was particularly pronounced this week, with some of the best performers, including Carnival and United Airlines Holdings, among those hurt most by the pandemic. The S&P 500 has increased 36% since reaching its lowest in almost 3 1/2 years on March 23.Signs that economies are starting to come to life and prospects for a vaccine helped fuel the gains, as did upbeat comments from policy makers and business leaders. JPMorgan Chase Chairman and CEO Jamie Dimon said some borrowers who requested forbearance are still making payments, and banks could be done …

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Suryoday Small Finance Bank raises Rs 62 crore to fund growth

suryoday small finance bank raises rs 62 crore to fund growth

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Kolkata: Suryoday Small Finance Bank has raised Rs 62 crore from Gaja Capital, Kotak Life, Lok Capital and three other existing investors through a private placement of shares, making it possibly the first capital infusion in a microfinance lender after India imposed lockdown to fight against the spread of Covid-19.
The International Finance Corporation (IFC)-backed Suryoday said that the size of capital raising could have been higher but for the market condition.
“We keep raising smaller rounds of capital without pursuing aggressive valuations to benefit our stakeholders,” Suryoday managing director R Baskar Babu told ET.
The capital will help the bank fund its growth. The bank has a loan portfolio of Rs 3,700 crore with a deposit base of Rs 2,800 crore.

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Hong Kong could see a ‘gradual erosion’ as a financial hub over the next five years: Analyst

hong kong could see a ‘gradual erosion’ as a financial hub over the next five years: analyst

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Protesters march during a pro-democracy rally against a proposed national security law in Hong Kong on May 24, 2020.Anthony Wallace | AFP | Getty ImagesHong Kong could see a “gradual erosion” of its status as a financial hub in the next five years, according to Orient Capital Research’s Andrew Collier.A cloud of uncertainty hangs over the city after China’s national security proposal sparked a fresh wave of protests in the embattled territory,”I’m very concerned,” Collier, who is managing director at the firm and based in Hong Kong, told CNBC’s “Street Signs” on Thursday before the proposal was approved. “I’ve been here for 12 years and I’m probably gonna be here for another 10 and I’m getting very nervous about the whole situation.””I think Hong Kong is a very risky place to do business,” he said. “Clearly, if the mainland authorities come in and have to have draconian methods for stopping the protests, that’s gonna be very bad optics globally for Hong Kong and investors are not going to be comfortable in that situation.”I’m getting very nervous about the whole situation.”Andrew Colliermanaging director, Orient Capital ResearchThat comes as the “nuclear option has been pulled” by both the U.S. and China, …

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Momo Announces Unaudited Financial Results for the First Quarter of 2020

momo announces unaudited financial results for the first quarter of 2020

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BEIJING, May 28, 2020 /PRNewswire/ — Momo Inc. (NASDAQ: MOMO) (“Momo” or the “Company”), a leading mobile social networking platform in China, today announced its unaudited financial results for the first quarter of 2020.
First Quarter of 2020 Highlights

Net revenues decreased by 3.5% year over year to RMB3,594.1 million (US$507.6 million*) in the first quarter of 2020.
Net income attributable to Momo Inc. increased to RMB538.9 million (US$76.1 million) in the first quarter of 2020 from RMB289.3 million in the same period of 2019.
Non-GAAP net income attributable to Momo Inc. (note 1) decreased to RMB736.3 million (US$104.0 million) in the first quarter of 2020, from RMB910.3 million in the same period of 2019.
Diluted net income per American Depositary Share (“ADS”) was RMB2.46 (US$0.35) in the first quarter of 2020, compared to RMB1.36 in the same period of 2019.
Non-GAAP diluted net income per ADS (note 1) was RMB3.34 (US$0.47) in the first quarter of 2020, compared to RMB4.15 in the same period of 2019.
Monthly Active Users (“MAU”) on Momo application were 108.0 million in March 2020, compared to 114.4 million in March 2019.
Total paying users of our live video service and value-added service, without double counting the overlap and including 4.2 million paying users of Tantan Limited (“Tantan”), were 12.8 million for the first quarter of 2020, compared …

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Birmingham’s Cicely Jones, Financial Advisor, Offers Sage Advice During COVID-19

birmingham’s cicely jones, financial advisor, offers sage advice during covid-19

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By Jasmine ShawFor the Birmingham Times
With the COVID-19 pandemic having a major impact on both the financial markets and the personal assets of many, Cicely Jones, CEO and founder of MPA Financials, remains on a mission to equip the Birmingham community with tools to attain financial freedom and establish generational wealth.
Though she prefers to meet with clients on a personal level, due to social distancing, “Zoom conference meetings now take the place of in-person meetings,” Jones said.
“Also, having a secure portal through which clients can upload their personal and business financial information allows them to know that their information is safe,” explained the 41-year-old Mobile, Alabama, native, who strives to provide a stress-free experience to earn the trust and confidence of each client.
Jones said, “MPA stands for ‘My Personal Accountant.’ My goal is to service clients in all things accounting and be a personal confidant.”
Via her website and social media pages, Jones educates the community about matters like the extended July 15 tax deadline, as well as how to properly apply for economic injury relief payments, stimulus packages, and Small Business Alliance (SBA) loans and grants.
“This pandemic has placed an immediate change on the economy, …

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Pressure on Hong Kong finance, Boeing’s resumes 737 Max production, EU’s €750bn plan

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Boeing said it will resume production of the troubled 737 Max, just hours after announcing plans to dismiss more than 12,000 US workers. Meanwhile, Brussels has unveiled a plan to borrow €750bn to bankroll recovery efforts after the coronavirus crisis. Now it faces a critical few weeks for corralling member states to back the plan. Plus, the US will no longer consider Hong Kong autonomous from China. The FT’s US managing editor, Peter Spiegel, explains what this could mean for the global financial hub. To get free access to the FT’s Coronavirus Business Update newsletter for 30 days, visit ft.com/newsbriefingcovid or go to https://www.ft.com/newsletter-signup/coronavirus?segmentId=9f398053-342f-c623-b5b3-1506d651696f. See acast.com/privacy for privacy and opt-out information.
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Orion Mine Finance Announces Closing of Nomad Royalty’s Reverse Take-Over Transaction and Related Acquisition of Nomad Royalty Common Shares

orion mine finance announces closing of nomad royalty’s reverse take-over transaction and related acquisition of nomad royalty common shares

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TORONTO, May 27, 2020 /CNW/ – Orion Mine Finance announced today that Nomad Royalty Company Ltd. (“Nomad”) has closed its previously announced reverse take-over transaction (the “RTO”). The RTO involved the acquisition by Nomad (currently a company listed on the TSX Venture Exchange) of a portfolio of stream and gold loan assets from Orion Mine Finance pursuant to an acquisition agreement entered into on February 23, 2020 (the “Acquisition Agreement”) among Nomad, Orion Mine Finance Fund II LP (“Fund II”), a limited partnership managed by Orion Mine Finance Management II Limited (“Orion Mine Finance II”), Orion Mine Finance Fund III LP (“Fund III”), a limited partnership managed by Orion Mine Finance Management III LLC (“Orion Mine Finance III”), and OMF Fund II (Li) LP, a limited partnership managed by Orion Mine Finance II, for total consideration of approximately US$268 million in exchange for 396,455,965 common shares of Nomad (“Common Shares”) at a price of C$0.90 per Common Share (the “Orion Transaction”). Fund II, Fund III, Orion Mine Finance II and Orion Mine Finance III are collectively referred to in this press release as “Orion”.
On February 23, 2020, Nomad also entered into a royalty and contingent payment purchase agreement with Yamana Gold Inc. (“Yamana”) and an affiliate …

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Legislature to get update on COVID-19 impact from state finance commissioner | Lewiston Sun Journal

legislature to get update on covid-19 impact from state finance commissioner | lewiston sun journal

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How Maine will use $1.25 billion in federal aid will be among the topics of discussion Friday when the Legislature’s budget-writing committee gets its first update on how the COVID-19 pandemic is affecting the state’s economy and tax collections.
Administrative and Financial Services Commissioner Kirsten Figueroa, seen last year, will field questions Friday from the Legislature’s budget-writing committee. Joe Phelan/Kennebec Journal
The meeting will be the first for the Appropriations and Financial Affairs Committee since the Legislature adjourned abruptly in early March, as the first cases of COVID-19 began to appear in Maine.
It will also be the first formal opportunity for lawmakers to ask questions and seek information from the state’s top financial official, Kristen Figueroa, commissioner of the Department of Administration and Financial Services. Committee members will also start to discuss how to keep the state’s 2-year, $8-billion budget in balance, as required by the state constitution.
Gov. Janet Mills has balked at spending any of the $1.25 billion in federal CARES Act funding, saying she wants more detailed guidance from Congress or the Trump Administration on authorized uses of the money.
The governor has promised to work with the budget-writing committee in the …

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IndoStar Capital Finance raises Rs 1,225 crore

indostar capital finance raises rs 1,225 crore

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New Delhi: Non-banking financial player IndoStar Capital Finance on Wednesday said it has raised Rs 1,225 crore equity capital from Brookfield, an alternative asset manager.
The investment by Brookfield in the retail-focussed NBFC is a combination of primary investment in equity shares and compulsorily convertible preference shares (CCPS).
With this investment, Brookfield will become a co-promoter with 24.6 per cent stake, along with IndoStar Capital Mauritius having 45.2 per cent holding at present.
“This investment is a strong endorsement of IndoStar’s business model, management capability and quality of its franchise. This investment not only provides equity funding but also access to new debt financing via Brookfield’s relationships with financial institutions,” Indostar’s executive vice-chairman and CEO, R Sridhar, said in a release.
Brookfield will also invest Rs 225 crore through secondary purchase of shares from IndoStar Capital Mauritius.
Post this infusion, IndoStar’s capital adequacy ratio has improved to almost 40 per cent compared with 27 per cent before this equity infusion, the release said.
This is the first private equity deal by Brookfield in the financial services space in the country.
IndoStar has assets under management of around Rs 10,200 crore and has nearly 70,000 customers.

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