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Shocked chief executives from Mumbai to Denver woke up on Friday to face tough decisions over how to respond to Britain&#39;s vote to leave the European Union. 
 
In Britain itself, businesses as diverse as engineering group Rolls-Royce, drugs giant AstraZeneca, housebuilders and makers of Scotch whisky were braced for disruption in the short and long term as the pound plunged to its lowest level since 1985. 
 
Big business - with a very few exceptions - has been strongly in favour of remaining in the world&#39;s biggest trading bloc, primarily because of ease of access to 500 million European consumers. 
 
&quot;The weeks and months ahead are going to be a nervy time for business leaders,&quot; Simon Walker, director general of British business lobby the Institute of Directors, said on Friday. 
 
Jaguar Land Rover, Britain&#39;s biggest carmaker, has estimated its annual profit could shrink by $1.4 billion by 2020 if Britain returns to World Trade Organization rules for trade with Europe. 
 
Shares in the company&#39;s owner, India&#39;s Tata Motors, slumped more than 10 per cent. 
 
Makers of Scotch whisky, who export about 90 per cent of what they produce, have stressed the importance of the EU, which swallows about a third of those exports, but also the clout EU membership gives in negotiations with fast-growing markets such as India, which has a 150 per cent tariff on imported spirits. 
 
Some investors warned of a coming British or even global recession as sterling collapsed to hit its lowest since 1985, while FTSE futures fell 8 per cent. 
 
The president of Japan&#39;s Nippon Steel &amp; Sumitomo Metal, the world&#39;s second-largest steelmaker, said the vote was extremely disappointing. &quot;We are greatly concerned for the negative impact this will have, not only on Britain and the EU but also on the global economy,&quot; said Kosei Shindo. 
 
Martin Sorrell, the boss of the world&#39;s biggest advertising group WPP, said: &quot;This decision will create tremendous uncertainty, which will slow economic activity and decision making.&quot; 
 
Sterling headache 
Big swings in sterling will be a headache for some international companies, with a fall in the currency hitting profits earned in Britain. 
 
International companies with sizeable sterling exposure include Denver-based Molson Coors, owner of Carling beer, which is heavily reliant on the UK. 
 
Aside from market access, streamlining of regulations within the EU has made life simpler. 
 
Pharmaceutical companies, for example, enjoy a one-stop shop in the form of the European Medicines Agency - based in London - which approves new drugs for all EU countries, while the EU&#39;s open airspace deals have fostered a surge in air travel and common policies on agriculture and food safety have allowed for smoother supply chains and richer eating. 
 
Companies in those sectors have fretted that Britain outside the bloc would disrupt the regulatory landscape. 
 
&quot;This creates immediate challenges for future investment, research and jobs in our industry in the UK,&quot; said Mike Thompson, CEO of the Association of the British Pharmaceutical Industry. 
 
AstraZeneca said it was concerned for the competitiveness of the British life sciences industry and would work to ensure patient access to medicines, amid worries that leaving the EU could delay drug approvals. 
 
Access to workers is another important factor for companies. Automotive industry executives, who are heavily reliant on exports, ranked tapping a skilled workforce a close second to accessing EU markets in a survey on reasons to remain in March. 
 
Ahead of the vote, some British-based multinationals such as Diageo, Unilever and Rolls-Royce had expressed their support for &quot;Remain&quot; directly to employees, although most stopped short of this. 
 
Government figures show 12.6 per cent of Britain&#39;s economic output is linked to exports to the EU&#39;s 27 other members, for whom only 3.1 per cent of output is linked to exports to Britain. And 80 per cent of British businesses trading overseas do so with the EU. 
 
The Confederation of British Industry has estimated there could be between 550,000 and 950,000 fewer jobs by 2020 in the event of Brexit. 
 
For banks, a huge concern has been the threat that financial institutions based in London could lose their EU &quot;passports&quot;, or the automatic right to sell services across the bloc under single low-cost system. That has made bank shares particularly volatile in the run-up to the referendum. 
 
Brexit uncertainty has also helped push British merger and acquisition activity this year at its lowest as a proportion of global activity since records began in 1980. 
 
(Reuters)

Big business wanted to remain in the world's biggest trading bloc because of ease of access to 500 million European consumers

Shocked chief executives from Mumbai to Denver woke up on Friday to face tough decisions over how to respond to Britain's vote to leave the European Union. In Britain itself, businesses as diverse as engineering group Rolls-Royce, drugs giant AstraZeneca, housebuilders and makers of Scotch whisky were braced for disruption in the short and long term as the pound plunged to its lowest level since 1985. Big business - with a very few exceptions - has been strongly in favour of remaining in the world's biggest trading bloc, primarily because of ease of access to 500 million European consumers. "The weeks and months ahead are going to be a nervy time for business leaders," Simon Walker, director general of British business lobby the Institute of Directors, said on Friday. Jaguar Land Rover, Britain's biggest carmaker, has estimated its annual profit could shrink by $1.4 billion by 2020 if Britain returns to World Trade Organization rules for trade with Europe. Shares in the company's owner, India's Tata Motors, slumped more than 10 per cent. Makers of Scotch whisky, who export about 90 per cent of what they produce, have stressed the importance of the EU, which swallows about a third of those exports, but also the clout EU membership gives in negotiations with fast-growing markets such as India, which has a 150 per cent tariff on imported spirits. Some investors warned of a coming British or even global recession as sterling collapsed to hit its lowest since 1985, while FTSE futures fell 8 per cent. The president of Japan's Nippon Steel & Sumitomo Metal, the world's second-largest steelmaker, said the vote was extremely disappointing. "We are greatly concerned for the negative impact this will have, not only on Britain and the EU but also on the global economy," said Kosei Shindo. Martin Sorrell, the boss of the world's biggest advertising group WPP, said: "This decision will create tremendous uncertainty, which will slow economic activity and decision making." Sterling headache Big swings in sterling will be a headache for some international companies, with a fall in the currency hitting profits earned in Britain. International companies with sizeable sterling exposure include Denver-based Molson Coors, owner of Carling beer, which is heavily reliant on the UK. Aside from market access, streamlining of regulations within the EU has made life simpler. Pharmaceutical companies, for example, enjoy a one-stop shop in the form of the European Medicines Agency - based in London - which approves new drugs for all EU countries, while the EU's open airspace deals have fostered a surge in air travel and common policies on agriculture and food safety have allowed for smoother supply chains and richer eating. Companies in those sectors have fretted that Britain outside the bloc would disrupt the regulatory landscape. "This creates immediate challenges for future investment, research and jobs in our industry in the UK," said Mike Thompson, CEO of the Association of the British Pharmaceutical Industry. AstraZeneca said it was concerned for the competitiveness of the British life sciences industry and would work to ensure patient access to medicines, amid worries that leaving the EU could delay drug approvals. Access to workers is another important factor for companies. Automotive industry executives, who are heavily reliant on exports, ranked tapping a skilled workforce a close second to accessing EU markets in a survey on reasons to remain in March. Ahead of the vote, some British-based multinationals such as Diageo, Unilever and Rolls-Royce had expressed their support for "Remain" directly to employees, although most stopped short of this. Government figures show 12.6 per cent of Britain's economic output is linked to exports to the EU's 27 other members, for whom only 3.1 per cent of output is linked to exports to Britain. And 80 per cent of British businesses trading overseas do so with the EU. The Confederation of British Industry has estimated there could be between 550,000 and 950,000 fewer jobs by 2020 in the event of Brexit. For banks, a huge concern has been the threat that financial institutions based in London could lose their EU "passports", or the automatic right to sell services across the bloc under single low-cost system. That has made bank shares particularly volatile in the run-up to the referendum. Brexit uncertainty has also helped push British merger and acquisition activity this year at its lowest as a proportion of global activity since records began in 1980. (Reuters)

From beer to drugs to cars: Global business laments EU vote

Traders said central banks of India and Korea sold dollars to curb fall of their currencies

At least two Asian central banks were suspected of intervening in their currency markets on Friday, according to traders, as global financial markets went into a tailspin after Britain voted to leave the European Union in a historic vote. Multiple traders said the Bank of Korea was thought to have sold dollars to curb the won's fall as the local currency dropped, while the Reserve Bank of India likely sold dollars through state-owned banks to prevent the rupee from falling further. An official at the Bank of Korea declined to comment, but South Korea's Vice Finance Minister Choi Sang-Mok said the government will make all efforts to minimize the impact from Brexit. "Regarding foreign exchange trade, we will use all usable options to stabilize markets, including launching smoothing operations,” he said. A senior policymaker aware of the Reserve Bank of India's plans for Brexit-related market management said that the central bank is "prepared to deal with any volatility." Separately, Japan's finance minister Taro Aso said he is carefully monitoring market developments and will respond as and when needed in the currency markets. A statement from the G7 group of leading industrial economies was expected on Friday. The question will be whether there is any coordinated intervention to ease monetary policy by global central banks, though room for maneuver is modest. "The ECB has few additional options left, yet it could announce more targeted purchases of peripheral sovereign bonds in the case investors start betting against the euro again,” said Markus Schomer, chief economist at Pinebridge Investments. The yen surging to its strongest levels against the dollar in two-and-a-half years, briefly breaking through the 100-yen-to-the-dollar level. Sterling suffered its biggest one-day fall of more than 9 percent against the dollar, hitting its lowest level in three decades. Japanese stocks sank, pushing the Nikkei 225 index down more than 8 percent to its lowest since October 2014, and a similar decline in the Nikkei futures triggered circuit breakers. Money markets were volatile. Fed fund futures effectively moved to pricing in a tiny U.S. rate cut from a rate increase in July. Japan's Deputy Chief Cabinet Secretary Hiroshige Seko told reporters the government was worried about market moves, saying sudden shifts because of the British vote were undesirable. The yen's strength due to its safe-haven status has been a frustration for Japanese authorities, who want a weaker currency to support exports and the economy. But they have been unable to garner support for intervention to weaken it from other major economies, most notably the United States. The 100-yen-per-dollar level has been seen as a pivotal point to test the patience of Japan's monetary officials on intervention. Morgan Stanley expects the dollar to fall to 90 yen as investors seek the Japanese currency out as a relative safe haven, and a further 15-20 percent downside for European equities from current levels. The Australian dollar, often sold off in times of heightened market stress, fell heavily against the dollar and the yen. Traditional stress markers such as interbank dollar funding rates in Singapore and Hong Kong were broadly steady, but treasury bill and front end government bond yields fell. "Because of this matter, we have made preparation in many aspects. We have reserved sufficient liquidity and we are able to handle in different situations," Hong Kong Financial Secretary John Tsang told reporters in the airport on Friday morning before he flew out to Beijing. The Hong Kong Monetary Authority has asked banks to maintain ample cash conditions with them. No unscheduled monetary liquidity injection operations have been taken so far, according to an HKMA spokeswoman. The Singapore stock exchange played its part in trying to reduce volatility by raising margins on Nikkei futures traded on its exchange. The People's Bank of China injected 170 billion yuan ($25.9 billion) on Friday, taking the net injection for the week to 340 billion yuan, the biggest in two months. But that was seen more about averting a cash squeeze at the end of the half year next week, as has happened previously, rather than responding to the Brexit vote. Still, the yuan fell to its weakest level against the U.S. dollar since January 2011 while its offshore counterpart slipped to its weakest level in more than four months. The Philippines' central bank said on Friday it was closely monitoring the foreign exchange market and remains prepared to act to ensure orderly transactions and smooth volatility. (Reuters)

Asian central banks, policymakers wade in to calm markets after Brexit vote

Britain is expected to submit an application to leave the European Union (EU) following Thursday&#39;s referendum, after which it would have two years to negotiate an exit. Below are possible consequences for Britain and the EU of a Brexit. 
 
ECONOMY 
 
Britain would no longer be subject to EU budget rules, which limit a government&#39;s budget deficit to 3 per cent of Gross Domestic Product (GDP) and public debt to 60 per cent of GDP.&nbsp;It could therefore run whatever budget shortfall it wants without admonishment from the European Commission and other EU ministers. It would also be free from the Commission&#39;s monitoring and advice on future actions. 
 
FINANCE 
 
Financial services firms based in Britain, from banks to clearing houses and funds, could lose their money-spinning EU &quot;passports&quot;, which allows them to sell services across the 28-nation bloc with low costs and a single set of rules. 
 
The passporting system has contributed to making London one of the world&#39;s most important financial centres. UK has been a gateway to European financial market for Non-EU banks based in UK.&nbsp;Some American, Japanese and other non-European banks that have European headquarters in London have said they would consider moving parts of their business inside the European Union, in the event of a BREXIT. 
 
Capital Requirement regulations is legislated through Financial Conduct Authority Handbook and Prudential Regulation Authority Handbook. BREXIT would not likely cause any immediate change in these requirements, however, a certain divergence might be expected in the future. 
 
Individuals and Corporates are covered under EU&#39;s insolvency regulations. This is relevant to banks in their dealings with their borrowers with operations in Member States of EU. Unless replaced by an alternative agreement with the EU or individual EU Member State, banks lending to such borrowers who take enforcement proceedings and/or institute insolvency proceedings in the UK, may find themselves exposed to the risk of competing insolvency proceedings being commenced in one or more other jurisdictions and of not being able to rely on the primacy of the UK proceedings. 
 
Market volatility has caused concerns among borrowers for being exposed to lending risks. 
 
BREXIT would have an impact on capital market instruments.&nbsp;The bond instruments issued in UK, may be amended by borrowers given the conditions in UK post BREXIT. Amendments in syndicate agreements would be costly and ineffective as decisions would be delayed and inadequate. 
 
TRADE 
 
The rest of the EU has a trade surplus in goods of about 100 billion Euros ($110 billion) with Britain, while Britain exports some 20 billion Euros in services than it imports, principally due to financial services. 
 
BREXIT campaigners say if would be in the EU&#39;s interest to agree a free trade deal with Britain even if it leaves the bloc. 
 
However, there tends to be more of a focus on goods than services in free trade deals. Switzerland, where financial services are a larger share of GDP than in Britain, has no general access to EU financial service markets and runs a financial services trade deficit with the bloc. 
 
COMPETITION 
 
British companies acquiring EU peers would still need approval from the UK competition watchdog and the European Commission, resulting in more legal costs and the risk that each delivers a different ruling. 
 
Britain will have a free hand to aid ailing companies or industries without fear of EU action but it will also not be able to oppose subsidies granted by EU governments to their own national champions. 
 
ENERGY 
 
Leaving the EU could make UK energy infrastructure investment costlier and delay new projects at a time when the country needs to plug a looming electricity supply gap. 
 
The uncertainty after BREXIT could make energy investors demand higher returns for the risk of less favourable conditions. Oil and gas majors, BP and Shell are among energy companies who warned about the potential downside. 
 
CLIMATE 
 
Britain is the second-largest emitter of greenhouse gases in Europe and its utilities are among the largest buyers of carbon permits in the EU Emission Trading System (ETS). 
 
Although most analysts believe Britain will remain in the cap-and-trade scheme, the vote is viewed as bearish for the market as Britain would no longer be able to drive tough reforms to drive up the price. 
 
BREXIT would also disrupt the bloc&#39;s plans to share out the burden of its Paris climate change pledge. 
 
The environmentally minded also worry that EU climate targets would be less ambitious without British leadership to balance against more reluctant member states such as coal-dependent Poland. 
 
AVIATION 
 
A BREXIT could call into question EU agreements on open airspace that have granted the region&#39;s airlines unlimited access to the skies of fellow member states, benefiting both UK and EU airlines. 
 
It would also affect transatlantic routes because of the EU-U.S. Open Skies agreement, which gives British airlines unlimited flying rights to the United States. 
 
FOREIGN POLICY 
 
Along with France, Britain is the leading foreign policy power in the EU, boasting a large military and close ties with the United States. After a BREXIT, Washington has made clear it will be less interested in London as an ally because of a perceived loss of influence. 
 
Britain would no longer be bound by joint EU positions, for instance on economic sanctions against Russia. Britain would remain a member of NATO. 
 
JUSTICE AND HOME AFFAIRS 
 
Britain has multiple exemptions from justice and home affairs policies, notably not being part of bloc&#39;s Schengen zone of free travel. 
 
It is not clear what restrictions Britain might place on foreign arrivals. The EU has vowed to respond in kind. 
 
Britain currently recognises other EU members&#39; arrest warrants, exchanges police information, including personal data, and is a member of the bloc&#39;s police agency Europol.&nbsp;Its future involvement, including access to EU databases, could diminish, meaning less cooperation on policing and fighting crime. 
 
DEMANDS BY STAKEHOLDERS 
 
With the impact of BREXIT on several sectors of UK, Britain&#39;s biggest banks have put forward their list of demands to the politicians. 
 
1. Exit from the EU should be made smoothly over time, so there is no change over time 
 
2. UK should negotiate to attain a mechanism similar to the passport regime, so that UK operating firms have access to continental market 
 
3. Promote competitiveness of London financial market implying that the UK politicians should promote a level playing field in global financial regulation, throwing the UK fully into a leading role in the G20, Financial Stability Board, Basel Committee, World Bank and International Monetary Fund. It also means slashing red tape. 
 
4. Banks and finance firms are keen to ensure that the finance sector is not cut off from the international jobs market. This implies that Britain should press the case for continued access to skilled talent from the EU and the rest of the world in order to boost the UK&rsquo;s competitiveness. The banks are also lobbying for accommodating immigration rules. 
 
IMPACT OF BREXIT ON MARKET 
 
Australia lost $56 billion in a day after BREXIT result was clear. 
 
Asian stocks are dumped as Global economic conditions remain uncertain. 
 
Wall Street and British Sterling also observed a slump.&nbsp; 
 
For markets, BREXIT signals failure of monetary policy and change in political attitude that may encourage governments around the world pursue more inward-looking policies,thus, restricting free flow of trade and finance.&nbsp; 
 
(With inputs from Reuters)

With BREXIT, there would be impact on several sectors such as Economy, Finance, Trade, Aviation, Energy, Climate etc.

Britain is expected to submit an application to leave the European Union (EU) following Thursday's referendum, after which it would have two years to negotiate an exit. Below are possible consequences for Britain and the EU of a Brexit. ECONOMY Britain would no longer be subject to EU budget rules, which limit a government's budget deficit to 3 per cent of Gross Domestic Product (GDP) and public debt to 60 per cent of GDP. It could therefore run whatever budget shortfall it wants without admonishment from the European Commission and other EU ministers. It would also be free from the Commission's monitoring and advice on future actions. FINANCE Financial services firms based in Britain, from banks to clearing houses and funds, could lose their money-spinning EU "passports", which allows them to sell services across the 28-nation bloc with low costs and a single set of rules. The passporting system has contributed to making London one of the world's most important financial centres. UK has been a gateway to European financial market for Non-EU banks based in UK. Some American, Japanese and other non-European banks that have European headquarters in London have said they would consider moving parts of their business inside the European Union, in the event of a BREXIT. Capital Requirement regulations is legislated through Financial Conduct Authority Handbook and Prudential Regulation Authority Handbook. BREXIT would not likely cause any immediate change in these requirements, however, a certain divergence might be expected in the future. Individuals and Corporates are covered under EU's insolvency regulations. This is relevant to banks in their dealings with their borrowers with operations in Member States of EU. Unless replaced by an alternative agreement with the EU or individual EU Member State, banks lending to such borrowers who take enforcement proceedings and/or institute insolvency proceedings in the UK, may find themselves exposed to the risk of competing insolvency proceedings being commenced in one or more other jurisdictions and of not being able to rely on the primacy of the UK proceedings. Market volatility has caused concerns among borrowers for being exposed to lending risks. BREXIT would have an impact on capital market instruments. The bond instruments issued in UK, may be amended by borrowers given the conditions in UK post BREXIT. Amendments in syndicate agreements would be costly and ineffective as decisions would be delayed and inadequate. TRADE The rest of the EU has a trade surplus in goods of about 100 billion Euros ($110 billion) with Britain, while Britain exports some 20 billion Euros in services than it imports, principally due to financial services. BREXIT campaigners say if would be in the EU's interest to agree a free trade deal with Britain even if it leaves the bloc. However, there tends to be more of a focus on goods than services in free trade deals. Switzerland, where financial services are a larger share of GDP than in Britain, has no general access to EU financial service markets and runs a financial services trade deficit with the bloc. COMPETITION British companies acquiring EU peers would still need approval from the UK competition watchdog and the European Commission, resulting in more legal costs and the risk that each delivers a different ruling. Britain will have a free hand to aid ailing companies or industries without fear of EU action but it will also not be able to oppose subsidies granted by EU governments to their own national champions. ENERGY Leaving the EU could make UK energy infrastructure investment costlier and delay new projects at a time when the country needs to plug a looming electricity supply gap. The uncertainty after BREXIT could make energy investors demand higher returns for the risk of less favourable conditions. Oil and gas majors, BP and Shell are among energy companies who warned about the potential downside. CLIMATE Britain is the second-largest emitter of greenhouse gases in Europe and its utilities are among the largest buyers of carbon permits in the EU Emission Trading System (ETS). Although most analysts believe Britain will remain in the cap-and-trade scheme, the vote is viewed as bearish for the market as Britain would no longer be able to drive tough reforms to drive up the price. BREXIT would also disrupt the bloc's plans to share out the burden of its Paris climate change pledge. The environmentally minded also worry that EU climate targets would be less ambitious without British leadership to balance against more reluctant member states such as coal-dependent Poland. AVIATION A BREXIT could call into question EU agreements on open airspace that have granted the region's airlines unlimited access to the skies of fellow member states, benefiting both UK and EU airlines. It would also affect transatlantic routes because of the EU-U.S. Open Skies agreement, which gives British airlines unlimited flying rights to the United States. FOREIGN POLICY Along with France, Britain is the leading foreign policy power in the EU, boasting a large military and close ties with the United States. After a BREXIT, Washington has made clear it will be less interested in London as an ally because of a perceived loss of influence. Britain would no longer be bound by joint EU positions, for instance on economic sanctions against Russia. Britain would remain a member of NATO. JUSTICE AND HOME AFFAIRS Britain has multiple exemptions from justice and home affairs policies, notably not being part of bloc's Schengen zone of free travel. It is not clear what restrictions Britain might place on foreign arrivals. The EU has vowed to respond in kind. Britain currently recognises other EU members' arrest warrants, exchanges police information, including personal data, and is a member of the bloc's police agency Europol. Its future involvement, including access to EU databases, could diminish, meaning less cooperation on policing and fighting crime. DEMANDS BY STAKEHOLDERS With the impact of BREXIT on several sectors of UK, Britain's biggest banks have put forward their list of demands to the politicians. 1. Exit from the EU should be made smoothly over time, so there is no change over time 2. UK should negotiate to attain a mechanism similar to the passport regime, so that UK operating firms have access to continental market 3. Promote competitiveness of London financial market implying that the UK politicians should promote a level playing field in global financial regulation, throwing the UK fully into a leading role in the G20, Financial Stability Board, Basel Committee, World Bank and International Monetary Fund. It also means slashing red tape. 4. Banks and finance firms are keen to ensure that the finance sector is not cut off from the international jobs market. This implies that Britain should press the case for continued access to skilled talent from the EU and the rest of the world in order to boost the UK’s competitiveness. The banks are also lobbying for accommodating immigration rules. IMPACT OF BREXIT ON MARKET Australia lost $56 billion in a day after BREXIT result was clear. Asian stocks are dumped as Global economic conditions remain uncertain. Wall Street and British Sterling also observed a slump. For markets, BREXIT signals failure of monetary policy and change in political attitude that may encourage governments around the world pursue more inward-looking policies,thus, restricting free flow of trade and finance. (With inputs from Reuters)

Consequences of BREXIT

Britain&rsquo;s 2.2 million financial industry workers face years of uncertainty and the risk of thousands of job cuts after the country voted to quit the European Union, leaving question marks over London&#39;s status as Europe&#39;s premier financial centre. 
 
The &lsquo;Vote Leave&rsquo; campaign fronted by a slew of Conservative lawmakers and financial industry veterans claimed victory over its &lsquo;Britain Stronger in Europe&rsquo; rival, after 374 of a total 382 counting areas declared majority support for their plan to leave the 28-nation club by 0507 GMT. 
 
The final official result is expected around 0600 GMT.&nbsp; 
 
Bankers&rsquo; early confidence that Britain would remain within the European Union quickly evaporated after early vote counts suggested the &quot;leave&quot; camp had the upper hand, sending Sterling plummeting to a thirty-year low and heart-rates racing on trading floors from London to Hong Kong. 
 
A leave vote means the future of Britain&#39;s financial services industry is now hanging in the balance.&nbsp; 
 
All depends on the divorce between Europe and Britain, the latter&#39;s ability to retain access to the European free market, and cope with the volatility that has seen Sterling nosedive against major global currencies. 
 
Mood in the restaurants and coffee shops in the high-rise banking hub of Canary Wharf, home to JPMorgan, Citi, HSBC and Barclays, was sober and contemplative, with job security fears rising to levels unseen since the 2008 financial crisis. 
 
Major investment banks have already warned they could move thousands of jobs elsewhere if Britain opts out of the EU, while the European Central Bank has signalled it could force euro trading out of London, the world&#39;s largest foreign exchange market.&nbsp; 
Wall Street bank Morgan Stanley could move around 1,000 of its roughly 6,000 employees currently in Britain on to the Continent if the country votes to leave the EU, a person familiar with the matter has told Reuters.&nbsp; 
 
Jamie Dimon, CEO of rival JPMorgan told staffers his bank &quot;may have no choice&quot; but to overhaul its UK business model, casting a pall over its 16,000 strong workforce. 
 
But for now, sources at banks said memos emailed internally to rattled employees advised them to think about clients first. 
 
&quot;I&rsquo;ve convened a big team meeting at 0800 GMT as the juniors are freaking out. I will tell them to focus on their job and wait for the volatility to pass but the reality is much, much starker, we&#39;ll have a crash and big layoffs,&quot; a senior investment banker at a U.S. bank told Reuters.&nbsp; 
&quot;It&#39;s an act of national self-harm,&quot; he added. 
 
CARNAGE ON MARKETS 
Months of bitter campaigning has left the industry - which earned the nation 190 billion pounds in 2014 - deeply divided, with investment banks and insurers pitted against many fund managers and brokers who wanted a Brexit. 
 
&quot;This is the biggest vote in my lifetime. Black Wednesday and the impact of Lehman Brothers collapsing - these other big events don&#39;t even compare in magnitude to this,&quot; said Mark Boleat, Chairman of the City of London&rsquo;s Policy and Resources Committee. 
 
&quot;We are just beginning to think through what will have to happen legally and it is massive, absolutely massive,&quot; he told Reuters. 
 
Reflecting the uncertainty that will hit the financial services sector, Hong Kong-listed shares of HSBC and Standard Chartered fell more than 10 per cent, while other UK banks are expected to post sharp declines when they start trading in London. 
 
All the major international and British banks in London had traders either working through the night or on call. Bankers in New York were also burning the midnight oil with special numbers laid out for clients to call, foreign exchange desks fully staffed and senior management keeping a fretful eye on screens. 
 
&quot;Leave&rsquo;s victory has delivered one of the biggest market shocks of all time ... Panic may not be too strong a word,&quot; Joe Rundle, Head of Trading at ETX Capital said. 
 
Many financial firms rely on the EU&rsquo;s &lsquo;passporting&rsquo; regime to sell their services across all of the bloc while basing the majority of their staff and operations in London.&nbsp; 
 
European government officials said UK-based firms could lose these privileges in the event of a Brexit, a move that would force them to shift some of their operations to the likes of Frankfurt, Paris or Dublin if they wanted to serve EU clients. 
 
WHAT NEXT? 
The Financial Conduct Authority said it would not comment about any immediate action it might take until after the referendum result has been formally announced. The Bank of England&#39;s Prudential Regulation Authority said it had no comment for the time being.&nbsp; 
 
For investment bankers, a Brexit vote is more than just about volatile prices on a screen but also about where they may end up working and living. 
 
&quot;I will be ok because I&#39;ve had a long career and I have savings and assets,&quot; the senior banker said. 
 
&quot;People just starting out, people in much more precarious situations, will lose out from Brexit.&quot;&nbsp; 
 
But some commentators said the volatility would be temporary and would soon subside when international investors drawn by a fall in sterling began to scour financial markets for bargains. 
 
&quot;Certainly, some international investors could find the UK less attractive but history shows us others are positively attracted to economies that get a devaluation boost,&quot; said Colin McLean, Managing Director at SVM Asset Management. 
 
&quot;There may even be more takeover activity from overseas firms looking for bargains on the London stock market,&quot; he said. 
 
Disappointed supporters of the EU project on mainland Europe said Britain would struggle to keep the same market freedoms that have attracted more than 250 foreign lenders to its shores and turned financial services into Britain&#39;s biggest export. 
 
&quot;If Britain guarantees to implement all the rules, then Europe will unlikely punish London,&quot; said European Parliament member Sven Giegold, a member of the German Green Party. 
 
&quot;But the will of the citizens was exactly to get rid of that dependence. That is the irony because you can&#39;t do both. If you want to keep your market open, you have to accept all the rules. Without that, Europe would be foolish to extend privileges to the UK and the City of London,&quot; he said. 
 
(Reuters) 
 
 
 
 
&nbsp;

Its 2.2 million financial industry workers face years of uncertainty and the risk of thousands of job cuts

Britain’s 2.2 million financial industry workers face years of uncertainty and the risk of thousands of job cuts after the country voted to quit the European Union, leaving question marks over London's status as Europe's premier financial centre. The ‘Vote Leave’ campaign fronted by a slew of Conservative lawmakers and financial industry veterans claimed victory over its ‘Britain Stronger in Europe’ rival, after 374 of a total 382 counting areas declared majority support for their plan to leave the 28-nation club by 0507 GMT. The final official result is expected around 0600 GMT. Bankers’ early confidence that Britain would remain within the European Union quickly evaporated after early vote counts suggested the "leave" camp had the upper hand, sending Sterling plummeting to a thirty-year low and heart-rates racing on trading floors from London to Hong Kong. A leave vote means the future of Britain's financial services industry is now hanging in the balance. All depends on the divorce between Europe and Britain, the latter's ability to retain access to the European free market, and cope with the volatility that has seen Sterling nosedive against major global currencies. Mood in the restaurants and coffee shops in the high-rise banking hub of Canary Wharf, home to JPMorgan, Citi, HSBC and Barclays, was sober and contemplative, with job security fears rising to levels unseen since the 2008 financial crisis. Major investment banks have already warned they could move thousands of jobs elsewhere if Britain opts out of the EU, while the European Central Bank has signalled it could force euro trading out of London, the world's largest foreign exchange market. Wall Street bank Morgan Stanley could move around 1,000 of its roughly 6,000 employees currently in Britain on to the Continent if the country votes to leave the EU, a person familiar with the matter has told Reuters. Jamie Dimon, CEO of rival JPMorgan told staffers his bank "may have no choice" but to overhaul its UK business model, casting a pall over its 16,000 strong workforce. But for now, sources at banks said memos emailed internally to rattled employees advised them to think about clients first. "I’ve convened a big team meeting at 0800 GMT as the juniors are freaking out. I will tell them to focus on their job and wait for the volatility to pass but the reality is much, much starker, we'll have a crash and big layoffs," a senior investment banker at a U.S. bank told Reuters. "It's an act of national self-harm," he added. CARNAGE ON MARKETS Months of bitter campaigning has left the industry - which earned the nation 190 billion pounds in 2014 - deeply divided, with investment banks and insurers pitted against many fund managers and brokers who wanted a Brexit. "This is the biggest vote in my lifetime. Black Wednesday and the impact of Lehman Brothers collapsing - these other big events don't even compare in magnitude to this," said Mark Boleat, Chairman of the City of London’s Policy and Resources Committee. "We are just beginning to think through what will have to happen legally and it is massive, absolutely massive," he told Reuters. Reflecting the uncertainty that will hit the financial services sector, Hong Kong-listed shares of HSBC and Standard Chartered fell more than 10 per cent, while other UK banks are expected to post sharp declines when they start trading in London. All the major international and British banks in London had traders either working through the night or on call. Bankers in New York were also burning the midnight oil with special numbers laid out for clients to call, foreign exchange desks fully staffed and senior management keeping a fretful eye on screens. "Leave’s victory has delivered one of the biggest market shocks of all time ... Panic may not be too strong a word," Joe Rundle, Head of Trading at ETX Capital said. Many financial firms rely on the EU’s ‘passporting’ regime to sell their services across all of the bloc while basing the majority of their staff and operations in London. European government officials said UK-based firms could lose these privileges in the event of a Brexit, a move that would force them to shift some of their operations to the likes of Frankfurt, Paris or Dublin if they wanted to serve EU clients. WHAT NEXT? The Financial Conduct Authority said it would not comment about any immediate action it might take until after the referendum result has been formally announced. The Bank of England's Prudential Regulation Authority said it had no comment for the time being. For investment bankers, a Brexit vote is more than just about volatile prices on a screen but also about where they may end up working and living. "I will be ok because I've had a long career and I have savings and assets," the senior banker said. "People just starting out, people in much more precarious situations, will lose out from Brexit." But some commentators said the volatility would be temporary and would soon subside when international investors drawn by a fall in sterling began to scour financial markets for bargains. "Certainly, some international investors could find the UK less attractive but history shows us others are positively attracted to economies that get a devaluation boost," said Colin McLean, Managing Director at SVM Asset Management. "There may even be more takeover activity from overseas firms looking for bargains on the London stock market," he said. Disappointed supporters of the EU project on mainland Europe said Britain would struggle to keep the same market freedoms that have attracted more than 250 foreign lenders to its shores and turned financial services into Britain's biggest export. "If Britain guarantees to implement all the rules, then Europe will unlikely punish London," said European Parliament member Sven Giegold, a member of the German Green Party. "But the will of the citizens was exactly to get rid of that dependence. That is the irony because you can't do both. If you want to keep your market open, you have to accept all the rules. Without that, Europe would be foolish to extend privileges to the UK and the City of London," he said. (Reuters)

Britain's financial sector reels after the bombshell

Hong Kong stocks plunged more than five per cent&nbsp;on Friday&nbsp;afternoon after Britain voted to leave the EU, sparking a rout across Asian equity and currency markets. 
 
The Hang Seng Index shed 5.11 per cent, or 1,067.34 points, to 19,801.00 in the afternoon.&nbsp; 
 
(AFP)

Spark rout across Asian equity and currency markets

Hong Kong stocks plunged more than five per cent on Friday afternoon after Britain voted to leave the EU, sparking a rout across Asian equity and currency markets. The Hang Seng Index shed 5.11 per cent, or 1,067.34 points, to 19,801.00 in the afternoon. (AFP)

Hong Kong stocks plunge more than 5% after Brexit vote

The pound sinks a staggering 9 per cent, fall is even larger than during the global financial crisis

Carnage came to world markets on Friday as early voting returns suggested Britain was on the brink of leaving the European Union, threatening the existence of the entire bloc and its single currency. Risk assets were scorched as investors fled to the safety of top-rated government debt, with FTSE futures off 6 per cent and EMINI S&P 500 futures down 3.5 per cent. The British pound had collapsed no less than 15 US cents, easily the biggest fall in living memory, while the euro slid 2.8 per cent as investors feared for its very future. Sterling sank a staggering 9 per cent to $1.3550, having carved out a range of $1.3462 to $1.5022. The fall was even larger than during the global financial crisis and the currency was moving two or three cents in the blink of an eye. "Sterling is getting smackadoodled," said Tim Kelleher, Head of FX Institutional Sales New Zealand for ASB Bank in Auckland. "While we thought it was all going to be "Remain", it's quite clearly not going to be as clear cut as that." Early official results showed the margins were nail-bitingly tight but pointing to a "Leave". Betting firm BetFair estimated the probability of leaving as high as 74 per cent. Traders were particularly spooked by returns from Sunderland showing a large majority for the "Leave" camp and just a narrow win for "Remain" in Newcastle. With half of 382 counting areas declared, the Leave camp was put at 51.3 per cent against 48.7 per cent for "Remain", according to Reuters calculations. The tremors shook all asset classes and regions. The safe-haven yen sprang higher to stand at 101.00 per dollar, having been as low as 106.81 at one stage. That dragged the Nikkei down 3 per cent and prompted warnings from Japanese officials that excessive forex moves were undesirable. Indeed, traders were wary in case global central banks chose to step in to calm the volatility. Other currencies across Asia suffered badly on worries that alarmed investors could pull funds out of emerging markets. MSCI's broadest index of Asia-Pacific shares outside Japan slid 3.3 per cent, its biggest fall in 10 months, while Shanghai stocks lost 1 per cent. UK bank shares listed in Hong Kong tumbled on the prospect of a destabilising exit. HSBC fell 8 per cent while Standard Chartered sank 9 per cent. FALSE HOPES? Financial markets have been racked for months by worries about what Brexit, or a British exit from the European Union, would mean for Europe's stability. Early opinion polls had favoured the "Remain" camp and perhaps led to a false sense of complacency in markets. An Ipsos MORI poll put the lead at 8 points while a YouGov poll out just after polls closed found 52 per cent of respondents said they voted to remain in the EU while 48 per cent voted to leave. Sovereign bonds came back into favour as safe harbours against market volatility, with U.S. 10-year Treasury futures jumping 1.29 points. Yields on the cash note fell 16 basis points to 1.58 per cent, the steepest one day drop since 2011. Investors also priced in even less chance of another hike in U.S. interest rates given the Federal Reserve had cited a British exit from the EU as one reason to be cautious on tightening. "It adds weight to the camp that the Fed would be on hold. A July (hike) is definitely off the table," Mike Baele, managing director with the private client reserve group at U.S. Bank in Portland, Oregon. Commodities likewise swung lower as a Brexit would be seen as a major threat to global growth. U.S. crude shed $2.02 to $48.09 a barrel in erratic trade while Brent fell $1.91 to $49.00. Copper slipped but gold galloped more than 3 per cent higher thanks to its perceived safe haven status. (Reuters)

Sterling, stocks in free fall

India&#39;s foreign exchange reserves hit a record high of $363.83 billion as of the week ended June 17, shoring up the country&#39;s defences just as investors brace for continued volatility after Britain voted to leave the European Union. 
 
Analsyts said FX reserves rose mainly on currency valuations. 
 
The Reserve Bank of India has also been steadily building Dollars to help meet $20 billion in expected outflows in September tied to maturing Dollar deposits - or the foreign currency non-resident (bank) deposits - raised during 2013 when India was in midst of a currency crisis. 
 
The weekly data comes on a day when the Indian Rupee fell to as low as 68.22 to the Dollar, its lowest since March 1 and not far from a record low of 68.85 hit in August 2013, during the crisis. 
 
The currency however cut some of its losses to end at 67.96/97, compared with its close of 67.25 on Thursday. 
 
&quot;India&#39;s strong reserves position is an important buffer against volatility in these uncertain times,&quot; said A Prasanna, an economist at ICICI Securities Primary Dealership Ltd in Mumbai. 
 
&quot;However, reserves are likely to see some decline in coming months due to the FCNR redemptions. Over the medium term, we expect reserves to keep expanding, boosted by sustainable inflows such as FDI (foreign direct investment).&quot; 
 
RBI governor Raghuram Rajan and finance minister Arun Jaitely said on Friday India was ready to deal with the aftermath of the Brexit vote, citing its solid economy and planned government reforms. 
 
Rajan also touted the country&#39;s Forex reserves as key defence against foreign investor selling. 
 
(Reuters)

RBI governor Raghuram Rajan and finance minister Arun Jaitely said India was ready to deal with the aftermath of the Brexit vote

India's foreign exchange reserves hit a record high of $363.83 billion as of the week ended June 17, shoring up the country's defences just as investors brace for continued volatility after Britain voted to leave the European Union. Analsyts said FX reserves rose mainly on currency valuations. The Reserve Bank of India has also been steadily building Dollars to help meet $20 billion in expected outflows in September tied to maturing Dollar deposits - or the foreign currency non-resident (bank) deposits - raised during 2013 when India was in midst of a currency crisis. The weekly data comes on a day when the Indian Rupee fell to as low as 68.22 to the Dollar, its lowest since March 1 and not far from a record low of 68.85 hit in August 2013, during the crisis. The currency however cut some of its losses to end at 67.96/97, compared with its close of 67.25 on Thursday. "India's strong reserves position is an important buffer against volatility in these uncertain times," said A Prasanna, an economist at ICICI Securities Primary Dealership Ltd in Mumbai. "However, reserves are likely to see some decline in coming months due to the FCNR redemptions. Over the medium term, we expect reserves to keep expanding, boosted by sustainable inflows such as FDI (foreign direct investment)." RBI governor Raghuram Rajan and finance minister Arun Jaitely said on Friday India was ready to deal with the aftermath of the Brexit vote, citing its solid economy and planned government reforms. Rajan also touted the country's Forex reserves as key defence against foreign investor selling. (Reuters)

India's forex reserves hit record high of $363.83 billion amid market turmoil

Officially at least, Ratan Tata, patriarch of one of India&#39;s wealthiest business families, retired in late 2012.&nbsp; 
 
In reality, he has been a driving force behind Tata&rsquo;s bet on airlines and a rare public campaign to open up the booming aviation sector. 
 
The $100 billion Tata group conglomerate is a major beneficiary of the decision last week to open up aviation in India, making it easier for start-ups to fly overseas sooner. 
 
The decision is no panacea for Tata, whose airlines - Vistara and AirAsia India - have had a slow start in a competitive market dominated by IndiGo, owned by InterGlobe Aviation , and Etihad-backed Jet Airways, both of which opposed the rule change. 
 
But it marks a victory for 78-year-old Ratan Tata, and ends more than two years of airlines lobbying, of Twitter rows and of frequent public statements from the usually circumspect steel-to-salt group. 
 
&quot;This was a David-and-Goliath kind of situation,&quot; said a source close to Tata group.&nbsp; 
 
&quot;There was huge lobbying from the other side.&quot; 
 
Ultimately, sources familiar with the talks said, it was Ratan Tata, a trained pilot, who was key to sealing the deal, capitalising on his clout. 
 
In a message earlier this year, he called for &quot;a new open market economy&quot; and said airlines lobbying against a rule change was &quot;reminiscent of protectionist and monopolistic pressures by vested interests, entities who seem to fear competition.&quot; 
 
A spokesman for Tata Sons, which promotes the group, denied Ratan Tata was directly involved, saying he had &quot;nothing to do with operations or management of either of the airlines&quot; after his retirement, and that views he expressed were personal. 
 
TURBULENT BEGINNINGS 
 
Not that either of Tata&#39;s two airline ventures - a low-cost carrier owned with Malaysia&#39;s AirAsia Berhad and Vistara, a full-service carrier run with Singapore Airlines - is yet ready to fly overseas. Both have had turbulent starts. 
 
Vistara initially focused on domestic business travellers, but had to reconfigure its aircraft after a year, to replace pricier seats with cheaper ones. 
 
AirAsia underwent a management shake-up earlier this year. 
 
Vistara&rsquo;s share of India&#39;s passenger air market is rising but is still just 2.5 per cent after nearly 18 months in business. AirAsia&#39;s share after two years has stagnated at about 2 per cent, government data showed, compared with IndiGo, which has a 39 per cent share, and Jet Airways with 19 per cent.&nbsp; 
 
But flying overseas is critical. It means higher profits and margins than in India&rsquo;s cut-throat market dominated by low-cost carriers, and Vistara and AirAsia now aim to boost their fleet sizes within a year.&nbsp; 
 
A Tata Sons spokeswoman said making profit can take several years and the group had a &quot;clear road map&quot;: &quot;Aviation is a long gestation business sector.&quot; 
 
The new rules water down a requirement known as 5/20, which barred domestic airlines from flying overseas before being in operation for five years and having 20 aircraft. 
 
Now they can fly overseas as long as they deploy 20 aircraft or 20 per cent of total capacity in India, whichever is higher. Tata Sons and the two airlines said they would prefer the rules to be abolished altogether. 
 
TATA&rsquo; S RE-ENTRY 
 
Tata group, a business empire stretching from Jaguar Land Rover and steel mills in Britain to salt pans and India&#39;s cheapest car, has a long history in aviation. 
 
JRD Tata, the group chairman before Ratan Tata, became India&#39;s first qualified pilot in 1929, and set up an airline that was later nationalised as state carrier Air India. 
 
Under Ratan Tata, the group sought to snap up Air India in a privatisation process, later aborted. 
 
Instead, even as current chairman Cyrus Mistry has sought to wind up some of Tata group&rsquo;s more ambitious projects, Ratan Tata pulled the group back in with two joint ventures. 
 
&nbsp;For his critics, the intervention was too little, too late. 
 
In 2013, a year after India liberalised foreign direct investment in aviation, Tata returned, first with AirAsia and then Vistara. 
 
&quot;India&#39;s market has only just started and it could provide growth for global aviation for the next 10 or 15 years,&quot; said Kapil Kaul, New Delhi-based chief executive of the Centre for Asia Pacific Aviation (CAPA) consultancy. 
 
India is the world&#39;s fastest-growing aviation market, clocking more than 20 per cent growth last year, and CAPA expects domestic passenger travel to grow to 500 million by 2035 from 70 million in 2015.&nbsp; 
 
Tata group is moving to capitalise on the win. 
 
Vistara, which has 11 aircraft, had an original plan to scale up to 20 by June, 2018, but could speed that up. 
 
&quot;We do not rule out accelerating the deliveries or procuring more aircraft from leasing firms, manufacturers or, for that matter, from our parent Singapore Airlines also,&quot; Vistara CEO Phee Teik Yeoh said in response to a query. 
 
Yeoh said the company was reviewing its international plans. 
 
AirAsia is in the process of ramping up its aircraft to 20 from six to meet the criteria, India CEO Amar Abrol said, adding that the airline lobbied hard for the removal of the 5/20 rule. 
 
(Reuters)

India is the world's fastest growing aviation market and Ratan Tata's dream of opening up the booming sector has just been realised

Officially at least, Ratan Tata, patriarch of one of India's wealthiest business families, retired in late 2012. In reality, he has been a driving force behind Tata’s bet on airlines and a rare public campaign to open up the booming aviation sector. The $100 billion Tata group conglomerate is a major beneficiary of the decision last week to open up aviation in India, making it easier for start-ups to fly overseas sooner. The decision is no panacea for Tata, whose airlines - Vistara and AirAsia India - have had a slow start in a competitive market dominated by IndiGo, owned by InterGlobe Aviation , and Etihad-backed Jet Airways, both of which opposed the rule change. But it marks a victory for 78-year-old Ratan Tata, and ends more than two years of airlines lobbying, of Twitter rows and of frequent public statements from the usually circumspect steel-to-salt group. "This was a David-and-Goliath kind of situation," said a source close to Tata group. "There was huge lobbying from the other side." Ultimately, sources familiar with the talks said, it was Ratan Tata, a trained pilot, who was key to sealing the deal, capitalising on his clout. In a message earlier this year, he called for "a new open market economy" and said airlines lobbying against a rule change was "reminiscent of protectionist and monopolistic pressures by vested interests, entities who seem to fear competition." A spokesman for Tata Sons, which promotes the group, denied Ratan Tata was directly involved, saying he had "nothing to do with operations or management of either of the airlines" after his retirement, and that views he expressed were personal. TURBULENT BEGINNINGS Not that either of Tata's two airline ventures - a low-cost carrier owned with Malaysia's AirAsia Berhad and Vistara, a full-service carrier run with Singapore Airlines - is yet ready to fly overseas. Both have had turbulent starts. Vistara initially focused on domestic business travellers, but had to reconfigure its aircraft after a year, to replace pricier seats with cheaper ones. AirAsia underwent a management shake-up earlier this year. Vistara’s share of India's passenger air market is rising but is still just 2.5 per cent after nearly 18 months in business. AirAsia's share after two years has stagnated at about 2 per cent, government data showed, compared with IndiGo, which has a 39 per cent share, and Jet Airways with 19 per cent. But flying overseas is critical. It means higher profits and margins than in India’s cut-throat market dominated by low-cost carriers, and Vistara and AirAsia now aim to boost their fleet sizes within a year. A Tata Sons spokeswoman said making profit can take several years and the group had a "clear road map": "Aviation is a long gestation business sector." The new rules water down a requirement known as 5/20, which barred domestic airlines from flying overseas before being in operation for five years and having 20 aircraft. Now they can fly overseas as long as they deploy 20 aircraft or 20 per cent of total capacity in India, whichever is higher. Tata Sons and the two airlines said they would prefer the rules to be abolished altogether. TATA’ S RE-ENTRY Tata group, a business empire stretching from Jaguar Land Rover and steel mills in Britain to salt pans and India's cheapest car, has a long history in aviation. JRD Tata, the group chairman before Ratan Tata, became India's first qualified pilot in 1929, and set up an airline that was later nationalised as state carrier Air India. Under Ratan Tata, the group sought to snap up Air India in a privatisation process, later aborted. Instead, even as current chairman Cyrus Mistry has sought to wind up some of Tata group’s more ambitious projects, Ratan Tata pulled the group back in with two joint ventures. For his critics, the intervention was too little, too late. In 2013, a year after India liberalised foreign direct investment in aviation, Tata returned, first with AirAsia and then Vistara. "India's market has only just started and it could provide growth for global aviation for the next 10 or 15 years," said Kapil Kaul, New Delhi-based chief executive of the Centre for Asia Pacific Aviation (CAPA) consultancy. India is the world's fastest-growing aviation market, clocking more than 20 per cent growth last year, and CAPA expects domestic passenger travel to grow to 500 million by 2035 from 70 million in 2015. Tata group is moving to capitalise on the win. Vistara, which has 11 aircraft, had an original plan to scale up to 20 by June, 2018, but could speed that up. "We do not rule out accelerating the deliveries or procuring more aircraft from leasing firms, manufacturers or, for that matter, from our parent Singapore Airlines also," Vistara CEO Phee Teik Yeoh said in response to a query. Yeoh said the company was reviewing its international plans. AirAsia is in the process of ramping up its aircraft to 20 from six to meet the criteria, India CEO Amar Abrol said, adding that the airline lobbied hard for the removal of the 5/20 rule. (Reuters)

Tata patriarch's aviation ambitions a step closer as India opens up

Bitcoin slid 6.1 per cent to US$573.84 on Thursday, data compiled by Bloomberg showed, just a week after the digital currency had hit a two-year high on June 18. The price has lost about 25 per cent in the five-day period. 
 
Sources suggest that the decline is a response to the increasing prospects of Britain voting to stay in the European Union, an outcome that could be made official as soon as late Thursday night in US, and Friday morning in the United Kingdom, a report by The Business Times said.&nbsp; 
 
Confidence in digital currencies has diminished since the news of a hack suffered by another cryptocurrency spread on June 18. &nbsp;According to Coindesk,&nbsp;a news site specialising in bitcoins and digital currencies,&nbsp;The&nbsp;Decentralised Autonomous Organisation, a cryptocurrency-backed venture capital fund, was hacked last week. 
 
(WION) 
 
&nbsp; 
 
 
&nbsp;

The digital currency is in a huge slump after hitting two-year high only last Friday

Bitcoin slid 6.1 per cent to US$573.84 on Thursday, data compiled by Bloomberg showed, just a week after the digital currency had hit a two-year high on June 18. The price has lost about 25 per cent in the five-day period. Sources suggest that the decline is a response to the increasing prospects of Britain voting to stay in the European Union, an outcome that could be made official as soon as late Thursday night in US, and Friday morning in the United Kingdom, a report by The Business Times said. Confidence in digital currencies has diminished since the news of a hack suffered by another cryptocurrency spread on June 18. According to Coindesk, a news site specialising in bitcoins and digital currencies, The Decentralised Autonomous Organisation, a cryptocurrency-backed venture capital fund, was hacked last week. (WION)

Bitcoin price drops below $600 as Brexit hopes falter

Singapore&#39;s headline Consumer Price Index (CPI) fell more than expected in May on a year-on-year basis, dragged down by lower accommodation costs, official data showed on Thursday. 
 
The all-items CPI fell 1.6 percent from a year earlier, after falling 0.5 percent in April. The median in a Reuters survey was for a decline of 0.8 percent in May. 
 
Singapore&#39;s core inflation gauge rose 1.0 percent in May from a year earlier, after rising 0.8 percent in April, and was below the median forecast for a 1.2 percent increase.

The fall which was more than expected was dragged down by lower accommodation cost

Singapore's headline Consumer Price Index (CPI) fell more than expected in May on a year-on-year basis, dragged down by lower accommodation costs, official data showed on Thursday. The all-items CPI fell 1.6 percent from a year earlier, after falling 0.5 percent in April. The median in a Reuters survey was for a decline of 0.8 percent in May. Singapore's core inflation gauge rose 1.0 percent in May from a year earlier, after rising 0.8 percent in April, and was below the median forecast for a 1.2 percent increase.

Singapore May CPI falls 1.6 percent

Oil prices rose in Asian trading on Thursday, shrugging off a smaller-than-expected decline in US stockpiles, as the market nervously awaited the result of Britain&#39;s &quot;Brexit&quot; vote. 
 
Trading has been choppy in the run-up to Thursday&#39;s vote on whether Britain leaves or stays in the European Union (EU), although markets appear to have largely priced in a &quot;Remain&quot; vote. 
&nbsp; 
Brent&#39;s August front-month contract was up 40 cents at $50.28 a barrel at 0217 GMT. It closed down 74 cents, or 1.5 per cent, at $49.88 a barrel on Wednesday. 
 
Prices for US oil were also higher, rising 43 cents to $49.56 a barrel. 
 
Once the Brexit vote is out of the way the oil market is likely to switch its focus to fundamentals, turning its attention to more potential supply disruptions that have sent prices higher this year. 
 
The worsening crisis in Venezuela, the country with the highest oil reserves, may be the next source of supply concern, said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo. 
 
&quot;There is a cloud hanging over the market from the Brexit vote, which is keeping prices down a bit,&quot; he said. &quot;If the vote comes off, we could go up,&quot; Nunan said, referring to a vote to remain in the EU. 
 
US crude inventories fell less than expected last week, while product inventories were up slightly, the US Energy Information Administration said on Wednesday. 
 
Crude inventories dropped 917,000 barrels in the week ended June 17, compared with expectations for a decrease of 1.7 million barrels. It was the fifth consecutive week of drawdowns for crude inventories. 
 
The Pound rose to a six-month high against the Dollar early on Thursday. 
 
The Yen, often a safe-haven currency for risk-averse investors, was down about 0.25 per cent, while the Nikkei rose by slightly more than that.

The Pound rose to a six-month high against the Dollar early on Thursday

Oil prices rose in Asian trading on Thursday, shrugging off a smaller-than-expected decline in US stockpiles, as the market nervously awaited the result of Britain's "Brexit" vote. Trading has been choppy in the run-up to Thursday's vote on whether Britain leaves or stays in the European Union (EU), although markets appear to have largely priced in a "Remain" vote. Brent's August front-month contract was up 40 cents at $50.28 a barrel at 0217 GMT. It closed down 74 cents, or 1.5 per cent, at $49.88 a barrel on Wednesday. Prices for US oil were also higher, rising 43 cents to $49.56 a barrel. Once the Brexit vote is out of the way the oil market is likely to switch its focus to fundamentals, turning its attention to more potential supply disruptions that have sent prices higher this year. The worsening crisis in Venezuela, the country with the highest oil reserves, may be the next source of supply concern, said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo. "There is a cloud hanging over the market from the Brexit vote, which is keeping prices down a bit," he said. "If the vote comes off, we could go up," Nunan said, referring to a vote to remain in the EU. US crude inventories fell less than expected last week, while product inventories were up slightly, the US Energy Information Administration said on Wednesday. Crude inventories dropped 917,000 barrels in the week ended June 17, compared with expectations for a decrease of 1.7 million barrels. It was the fifth consecutive week of drawdowns for crude inventories. The Pound rose to a six-month high against the Dollar early on Thursday. The Yen, often a safe-haven currency for risk-averse investors, was down about 0.25 per cent, while the Nikkei rose by slightly more than that.

Oil prices go up ahead of Brexit vote

India, the world&#39;s biggest cotton producer, has contracted to import 20,000 bales from Pakistan for shipment this month after Indian prices jumped because of limited supply, industry officials told Reuters. 
 
The move is a role reversal from earlier this year when Pakistan was buying cotton from India after its output had been hit by bad weather. 
 
&quot;About 20,000 bales have been imported from Pakistan. Landed cost of imported cotton is lower than local prices,&quot; Dhiren Sheth, president of the Cotton Association of India (CAI), told Reuters. 
 
Indian cotton prices have risen by 28 per cent since the start of 2015-16 season on October 1 to 40,800 rupees per 356 kg candy (77.4 cents per lb) as two years of drought took its toll on output. 
 
Pakistani supplies are available at about 70 cents per lb on a free-on-board basis, said one Mumbai-based dealer with a global trading firm. 
 
&quot;Supplies are dwindling in both countries. The sharp rally in Indian prices is making imports viable from Pakistan, but it has limited quantity for exports,&quot; the dealer said. 
 
India has so far imported about 1.2 million bales in 2015-16 and needs another 400,000 bales before the new crop starts arriving from the end of September, Sheth said. 
 
The country has exported about 6.5 million bales of cotton this season, with Pakistan accounting for nearly 2 million bales. 
 
Purchases from India have been pushing up prices in Pakistan, said Shahzad Ali Khan, chairman of Pakistan Cotton Ginner&#39;s Association. 
 
The All Pakistan Textile Mills Association has urged the Pakistan government to restrict cotton exports to India in an attempt to provide raw material for domestic textiles production. 
 
Indian industry officials, including Sheth of the CAI, said that Pakistan should not restrict exports since it imported cotton when it was in need. 
 
Global cotton prices could rally sharply in the coming months as stocks become further depleted in key producing countries, one Karachi-based dealer said. 
 
(1 bale = 170 kg) 
 
(Reuters)

Landed cost of imported cotton is lower than local prices, says chief of Cotton Association of India

India, the world's biggest cotton producer, has contracted to import 20,000 bales from Pakistan for shipment this month after Indian prices jumped because of limited supply, industry officials told Reuters. The move is a role reversal from earlier this year when Pakistan was buying cotton from India after its output had been hit by bad weather. "About 20,000 bales have been imported from Pakistan. Landed cost of imported cotton is lower than local prices," Dhiren Sheth, president of the Cotton Association of India (CAI), told Reuters. Indian cotton prices have risen by 28 per cent since the start of 2015-16 season on October 1 to 40,800 rupees per 356 kg candy (77.4 cents per lb) as two years of drought took its toll on output. Pakistani supplies are available at about 70 cents per lb on a free-on-board basis, said one Mumbai-based dealer with a global trading firm. "Supplies are dwindling in both countries. The sharp rally in Indian prices is making imports viable from Pakistan, but it has limited quantity for exports," the dealer said. India has so far imported about 1.2 million bales in 2015-16 and needs another 400,000 bales before the new crop starts arriving from the end of September, Sheth said. The country has exported about 6.5 million bales of cotton this season, with Pakistan accounting for nearly 2 million bales. Purchases from India have been pushing up prices in Pakistan, said Shahzad Ali Khan, chairman of Pakistan Cotton Ginner's Association. The All Pakistan Textile Mills Association has urged the Pakistan government to restrict cotton exports to India in an attempt to provide raw material for domestic textiles production. Indian industry officials, including Sheth of the CAI, said that Pakistan should not restrict exports since it imported cotton when it was in need. Global cotton prices could rally sharply in the coming months as stocks become further depleted in key producing countries, one Karachi-based dealer said. (1 bale = 170 kg) (Reuters)

India imports cotton from Pakistan as domestic prices climb

Consulting and outsourcing company Accenture reported an 8.6 per cent rise in quarterly net revenue, driven by higher demand from customers in North America. 
 
The net income attributable to Accenture rose to $897.2 million, or $1.41 per share, in the third quarter ended May 31, 
 
It rose&nbsp;from $793.7 million, or $1.24 per share, year on year. 
 
Net revenue, or revenue before reimbursements, rose to $8.43 billion from $7.77 billion. 
 
(Reuters)

Net revenue rose to $8.43 billion from $7.77 billion in the previous quarter

Consulting and outsourcing company Accenture reported an 8.6 per cent rise in quarterly net revenue, driven by higher demand from customers in North America. The net income attributable to Accenture rose to $897.2 million, or $1.41 per share, in the third quarter ended May 31, It rose from $793.7 million, or $1.24 per share, year on year. Net revenue, or revenue before reimbursements, rose to $8.43 billion from $7.77 billion. (Reuters)

Accenture net revenue rises by 8.6%

Asian shares edged up and Sterling stood close to its peak for the year on Thursday, as investors were cautiously optimistic that British voters would opt to remain in the European Union at a referendum later in the session.&nbsp; 
 
Two opinion polls published late on Wednesday, a few hours before voters were due to begin to cast their votes, showed the &quot;Remain&quot; camp gaining momentum in the closely divided campaign. 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan edged up 0.2 per cent in early trading, shrugging off modest overnight losses on Wall Street. 
 
Japan&#39;s Nikkei share average rose 0.3 per cent. 
 
&quot;Markets seem to have almost entirely priced in a &#39;Remain&#39; vote win, meaning that the market moves and volatility around the vote may be far less than many had been expected,&quot; wrote Angus Nicholson, market analyst at IG in Melbourne. 
 
&quot;Nonetheless, markets are still incredibly nervous and some sharp market moves are likely over the next 24 hours,&quot; he said. 
 
Sterling rose to $1.4847, its highest against the dollar in 2016, and was last up 0.6 per cent at $1.4798. 
 
The perceived safe-haven Yen also slipped on receding fears of the market turmoil that would likely follow if Britain were to pull out of the EU. 
 
The dollar added 0.2 per cent to 104.69 Yen , while the euro gained 0.5 percent to 118.54 yen . 
 
The euro rose 0.2 per cent to $1.1322 , while the dollar index, which tracks the greenback against a basket of six rival currencies, slipped 0.1 per cent to 93.582. 
 
On the US data front, home resales rose to a more than nine-year high last month against a backdrop of historically low mortgage rates, adding to recent upbeat second quarter data. 
 
Crude oil prices rose after settling down more than 1 per cent on Wednesday after the U.S. government reported a smaller-than-expected inventory drawdown. 
 
Brent added 0.7 per cent to $50.23 a barrel after shedding 1.5 per cent on Wednesday, while U.S. crude was up 0.8 per cent at $49.53 after giving up 1.4 per cent in the previous session. 
 
Spot gold plumbed a two-week low of $1,260.36 an ounce and was last down 0.4 per cent at $1,261.24. 
 
(Reuters) 
&nbsp;

Sterling rose to its highest against Dollar in 2016 and Yen slipped on diminishing fears of a market turmoil that would follow if Britain were to pull out of EU

Asian shares edged up and Sterling stood close to its peak for the year on Thursday, as investors were cautiously optimistic that British voters would opt to remain in the European Union at a referendum later in the session. Two opinion polls published late on Wednesday, a few hours before voters were due to begin to cast their votes, showed the "Remain" camp gaining momentum in the closely divided campaign. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2 per cent in early trading, shrugging off modest overnight losses on Wall Street. Japan's Nikkei share average rose 0.3 per cent. "Markets seem to have almost entirely priced in a 'Remain' vote win, meaning that the market moves and volatility around the vote may be far less than many had been expected," wrote Angus Nicholson, market analyst at IG in Melbourne. "Nonetheless, markets are still incredibly nervous and some sharp market moves are likely over the next 24 hours," he said. Sterling rose to $1.4847, its highest against the dollar in 2016, and was last up 0.6 per cent at $1.4798. The perceived safe-haven Yen also slipped on receding fears of the market turmoil that would likely follow if Britain were to pull out of the EU. The dollar added 0.2 per cent to 104.69 Yen , while the euro gained 0.5 percent to 118.54 yen . The euro rose 0.2 per cent to $1.1322 , while the dollar index, which tracks the greenback against a basket of six rival currencies, slipped 0.1 per cent to 93.582. On the US data front, home resales rose to a more than nine-year high last month against a backdrop of historically low mortgage rates, adding to recent upbeat second quarter data. Crude oil prices rose after settling down more than 1 per cent on Wednesday after the U.S. government reported a smaller-than-expected inventory drawdown. Brent added 0.7 per cent to $50.23 a barrel after shedding 1.5 per cent on Wednesday, while U.S. crude was up 0.8 per cent at $49.53 after giving up 1.4 per cent in the previous session. Spot gold plumbed a two-week low of $1,260.36 an ounce and was last down 0.4 per cent at $1,261.24. (Reuters)

Asia stocks, Sterling rise as Brexit anxiety abates

One of India&#39;s largest drugmakers, Sun Pharmaceutical Industries, is banking on the launch of newer and more complex products to offset rising competition in its lucrative US dermatology business, its US chief said. 
 
The world&#39;s fifth-largest maker of generic drugs was the first among its Indian peers to enter the roughly $5-billion US dermatology space by acquiring a controlling stake in Israel&#39;s Taro Pharmaceutical Industries Ltd in 2010. 
 
That marked a major effort by Sun to scale up its niche and specialty drugs pipeline, as the market for plain-vanilla generics - most large Indian drugmakers&#39; bread and butter until then - started to get increasingly crowded with smaller players. 
 
But as competition has heated up in the last few years, many companies have also sought niche markets, and dermatology has attracted quite a few. India&#39;s Lupin bought US firm Gavis to expand in dermatology, and Glenmark Pharmaceuticals is scaling up its pipeline too. 
 
Mid-sized drugmakers such as Torrent Pharmaceuticals and Alembic Pharmaceuticals are working on skin treatments, and many small US firms are increasingly challenging Sun&#39;s share in the market, analysts say. 
 
Kal Sundaram, who heads Sun&#39;s operations in the United States, its largest market, said the company would lose some share in dermatology in the short-term, but was confident of its pipeline of new products driving growth. 
 
&quot;While the competitive intensity will increase, it is not going to be like atorvastatin (Lipitor), where you have 10 or 15 manufacturers,&quot; Sundaram told Reuters. &quot;(In dermatology), maybe from three (manufacturers) it would go to about five.&quot; 
 
Sun has high hopes for tildrakizumab, an experimental psoriasis drug that recently completed late-stage trials, full results of which are due out soon. 
 
Most dermatology drugs require clinical studies for approval, which Kal said cost between $7 million and $10 million, on average, &quot;and there is no guarantee if they will be successful&quot;, thus limiting competition. 
 
Nimish Mehta, founder and director of ResearchDelta Advisors, said he expected Taro&#39;s sales to rise 18 per cent this fiscal year based on approvals for new dermatology products. 
 
Price hikes have largely helped Sun grow its dermatology business over the years, but they are harder to make, after a recent wave of consolidation between US drug distributors. 
 
Sundaram said the company expects pressure on prices in the short term, but it is betting on expanding volumes. 
 
(Reuters)

Sun has high hopes for tildrakizumab, an experimental psoriasis drug, that completed its late-stage trials recently

One of India's largest drugmakers, Sun Pharmaceutical Industries, is banking on the launch of newer and more complex products to offset rising competition in its lucrative US dermatology business, its US chief said. The world's fifth-largest maker of generic drugs was the first among its Indian peers to enter the roughly $5-billion US dermatology space by acquiring a controlling stake in Israel's Taro Pharmaceutical Industries Ltd in 2010. That marked a major effort by Sun to scale up its niche and specialty drugs pipeline, as the market for plain-vanilla generics - most large Indian drugmakers' bread and butter until then - started to get increasingly crowded with smaller players. But as competition has heated up in the last few years, many companies have also sought niche markets, and dermatology has attracted quite a few. India's Lupin bought US firm Gavis to expand in dermatology, and Glenmark Pharmaceuticals is scaling up its pipeline too. Mid-sized drugmakers such as Torrent Pharmaceuticals and Alembic Pharmaceuticals are working on skin treatments, and many small US firms are increasingly challenging Sun's share in the market, analysts say. Kal Sundaram, who heads Sun's operations in the United States, its largest market, said the company would lose some share in dermatology in the short-term, but was confident of its pipeline of new products driving growth. "While the competitive intensity will increase, it is not going to be like atorvastatin (Lipitor), where you have 10 or 15 manufacturers," Sundaram told Reuters. "(In dermatology), maybe from three (manufacturers) it would go to about five." Sun has high hopes for tildrakizumab, an experimental psoriasis drug that recently completed late-stage trials, full results of which are due out soon. Most dermatology drugs require clinical studies for approval, which Kal said cost between $7 million and $10 million, on average, "and there is no guarantee if they will be successful", thus limiting competition. Nimish Mehta, founder and director of ResearchDelta Advisors, said he expected Taro's sales to rise 18 per cent this fiscal year based on approvals for new dermatology products. Price hikes have largely helped Sun grow its dermatology business over the years, but they are harder to make, after a recent wave of consolidation between US drug distributors. Sundaram said the company expects pressure on prices in the short term, but it is betting on expanding volumes. (Reuters)

Sun Pharma bets on new products to boost US skincare products growth

Telecom giant Bharti Airtel today said it has completed the sale of its subsidiary in Burkina Faso to Orange. 
 
In January, Bharti Airtel had said it will sell its operations in Burkina Faso and Sierra Leone to France-based Orange. 
 
&quot;Orange has completed the acquisition of 100 per cent of the operations of Airtel in Burkina Faso via its subsidiaries. We shall update the exchange regarding the process for Sierra Leone as and when it is completed,&quot; it said in a filing to Bombay Stock Exchange. 
 
Airtel, in July last year, had announced that it is entering an agreement with Orange to sell its four subsidiaries in Burkina Faso, Chad, Congo Brazzaville and Sierra Leone in Africa. 
 
The agreements for the remaining two countries have lapsed. 
 
According to the agreement, Orange will acquire 100 per cent of the companies&#39; share capital. The consolidated revenue of the two companies is around 275 million Euro. 
 
These acquisitions will be implemented in partnership with Orange&#39;s subsidiaries in the Cote d&#39;Ivoire and Senegal. 
 
Airtel had said outlay for Orange for these transactions will be based on the financial of its two subsidiaries for the year ended March 31, 2016, and will represent the equivalent of 7.9 times Airtel&#39;s EBITDA in these two countries at this time. 
 
Through this deal, Orange will reinforce its presence in Africa with two additional countries, adding almost 5.5 million users to its mobile 
customer base. 
 
(PTI)

According to the agreement, Orange will acquire 100 per cent of the company's share capital

Telecom giant Bharti Airtel today said it has completed the sale of its subsidiary in Burkina Faso to Orange. In January, Bharti Airtel had said it will sell its operations in Burkina Faso and Sierra Leone to France-based Orange. "Orange has completed the acquisition of 100 per cent of the operations of Airtel in Burkina Faso via its subsidiaries. We shall update the exchange regarding the process for Sierra Leone as and when it is completed," it said in a filing to Bombay Stock Exchange. Airtel, in July last year, had announced that it is entering an agreement with Orange to sell its four subsidiaries in Burkina Faso, Chad, Congo Brazzaville and Sierra Leone in Africa. The agreements for the remaining two countries have lapsed. According to the agreement, Orange will acquire 100 per cent of the companies' share capital. The consolidated revenue of the two companies is around 275 million Euro. These acquisitions will be implemented in partnership with Orange's subsidiaries in the Cote d'Ivoire and Senegal. Airtel had said outlay for Orange for these transactions will be based on the financial of its two subsidiaries for the year ended March 31, 2016, and will represent the equivalent of 7.9 times Airtel's EBITDA in these two countries at this time. Through this deal, Orange will reinforce its presence in Africa with two additional countries, adding almost 5.5 million users to its mobile customer base. (PTI)

Airtel sells Burkina Faso subsidiary to Orange

The boss of German auto giant Volkswagen, on Wednesday, issued an apology to angry shareholders over the emissions cheating scandal that has plunged the group into an unprecedented crisis. 
 
Facing an annual general meeting for the first time since the scandal erupted in September, Matthias Mueller said: &quot;On behalf of the Volkswagen Group and everyone who works here, I apologise to you shareholders for your trust in Volkswagen being betrayed. 
 
&quot;This misconduct goes against everything that Volkswagen stands for,&quot; he added nine months after the start of the &quot;Dieselgate&quot; affair, when it emerged VW had installed emissions-cheating software into 11 million diesel engines worldwide. 
 
Volkswagen is still far from drawing a line under the scandal, with the costs of the affair still incalculable, while it remains unclear if VW&#39;s own internal investigation will pinpoint the major culprits behind the scam. 
 
The auto giant, which owns 12 brands ranging from Volkswagen and Porsche to Audi and SEAT, still faces a myriad of regulatory fines and lawsuits from customers and shareholders. 
 
Shareholders are expected to use the annual general meeting in the northern city of Hanover to let off steam at the way management has handled the affair. 
 
Two days ahead of the meeting, prosecutors provided more fodder to the irate shareholders when they said they were investigating former VW boss Martin Winterkorn for having allegedly manipulated the market by holding back information about emissions cheating at the car giant. 
 
A second former member of the board was also under probe, prosecutors said, without giving the individual&#39;s name, but a Volkswagen spokesman told AFP that the suspect was Herbert Diess -- who is in charge of the VW brand. 
 
Listed companies are required to disclose information that could affect market prices immediately. 
 
But VW complied with its disclosure obligation only on September 22, 2015, prosecutors said, four days after US regulators went public that they were charging the company for emissions cheating. 
 
Crisis has opened doors 
 
The allegations struck at the heart of shareholders&#39; misgivings, as they have since early on in the scandal also accused management of dragging their feet in informing them about the scam, which led to a stunning 40-percent drop in the company&#39;s share price last autumn. 
 
The stock has since recovered somewhat, but is still 26 per cent below the levels before the scandal broke last September, and the company&#39;s finances also remain weak. 
 
After it was forced to set aside 16 billion Euros ($18 billion) in provisions to cover the costs of the affair so far, it sank to a net loss of 1.6 billion Euros, its first loss in two decades. 
 
Giving an update of the company&#39;s internal investigation into the affair, chairman Hans Dieter Poetsch said some 550 interviews had been carried out by the US consultants charged with the probe, Jones Day. 
 
Nevertheless, a number of shareholder lobby groups are demanding special enquiries into who should be held responsible for the affair, arguing that Jones Day is not sufficiently independent. 
 
Seeking to reassure shareholders of management&#39;s commitment to regain their trust, Mueller said the crisis could eventually prove to be &quot;beneficial&quot;. 
 
&quot;The crisis has also opened doors. It forced us to strengthen and speed up overdue changes, and to set new priorities. To turn this crisis into an opportunity has been my goal from the beginning,&quot; he said. 
 
Mueller hinted in a newspaper interview on Tuesday that the car giant could abandon diesel engine technology in the wake of the scandal. 
 
&quot;We have to ask ourselves whether... we want to spend more money on the further development of diesel,&quot; Mueller told the business daily Handelsblatt, promising that VW would take a &quot;fundamental&quot; look at the issue. 
 
The move appeared to be in line with the group&#39;s plans to reposition itself as a leading player in environmentally sustainable modes of transport, with more than 30 all-electric models to be unveiled by 2025. 
 
Regardless of any doubts, small shareholders may have over VW&#39;s path forward, the power they wield remains limited. 
 
They hold just 11 per cent of the voting rights in VW, while the founding families Porsche and Piech hold 52 per cent, the regional state of Lower Saxony 20 per cent and the state of Qatar 17 per cent. 
 
Speaking for Qatar, Hessa Al Jaber said she believes that VW&#39;s management &quot;genuinely wants to turn the company around.&quot; 
 
(AFP)

The auto giant, which owns 12 brands ranging from Volkswagen and Porsche to Audi and SEAT, faces a myriad of regulatory fines and lawsuits

The boss of German auto giant Volkswagen, on Wednesday, issued an apology to angry shareholders over the emissions cheating scandal that has plunged the group into an unprecedented crisis. Facing an annual general meeting for the first time since the scandal erupted in September, Matthias Mueller said: "On behalf of the Volkswagen Group and everyone who works here, I apologise to you shareholders for your trust in Volkswagen being betrayed. "This misconduct goes against everything that Volkswagen stands for," he added nine months after the start of the "Dieselgate" affair, when it emerged VW had installed emissions-cheating software into 11 million diesel engines worldwide. Volkswagen is still far from drawing a line under the scandal, with the costs of the affair still incalculable, while it remains unclear if VW's own internal investigation will pinpoint the major culprits behind the scam. The auto giant, which owns 12 brands ranging from Volkswagen and Porsche to Audi and SEAT, still faces a myriad of regulatory fines and lawsuits from customers and shareholders. Shareholders are expected to use the annual general meeting in the northern city of Hanover to let off steam at the way management has handled the affair. Two days ahead of the meeting, prosecutors provided more fodder to the irate shareholders when they said they were investigating former VW boss Martin Winterkorn for having allegedly manipulated the market by holding back information about emissions cheating at the car giant. A second former member of the board was also under probe, prosecutors said, without giving the individual's name, but a Volkswagen spokesman told AFP that the suspect was Herbert Diess -- who is in charge of the VW brand. Listed companies are required to disclose information that could affect market prices immediately. But VW complied with its disclosure obligation only on September 22, 2015, prosecutors said, four days after US regulators went public that they were charging the company for emissions cheating. Crisis has opened doors The allegations struck at the heart of shareholders' misgivings, as they have since early on in the scandal also accused management of dragging their feet in informing them about the scam, which led to a stunning 40-percent drop in the company's share price last autumn. The stock has since recovered somewhat, but is still 26 per cent below the levels before the scandal broke last September, and the company's finances also remain weak. After it was forced to set aside 16 billion Euros ($18 billion) in provisions to cover the costs of the affair so far, it sank to a net loss of 1.6 billion Euros, its first loss in two decades. Giving an update of the company's internal investigation into the affair, chairman Hans Dieter Poetsch said some 550 interviews had been carried out by the US consultants charged with the probe, Jones Day. Nevertheless, a number of shareholder lobby groups are demanding special enquiries into who should be held responsible for the affair, arguing that Jones Day is not sufficiently independent. Seeking to reassure shareholders of management's commitment to regain their trust, Mueller said the crisis could eventually prove to be "beneficial". "The crisis has also opened doors. It forced us to strengthen and speed up overdue changes, and to set new priorities. To turn this crisis into an opportunity has been my goal from the beginning," he said. Mueller hinted in a newspaper interview on Tuesday that the car giant could abandon diesel engine technology in the wake of the scandal. "We have to ask ourselves whether... we want to spend more money on the further development of diesel," Mueller told the business daily Handelsblatt, promising that VW would take a "fundamental" look at the issue. The move appeared to be in line with the group's plans to reposition itself as a leading player in environmentally sustainable modes of transport, with more than 30 all-electric models to be unveiled by 2025. Regardless of any doubts, small shareholders may have over VW's path forward, the power they wield remains limited. They hold just 11 per cent of the voting rights in VW, while the founding families Porsche and Piech hold 52 per cent, the regional state of Lower Saxony 20 per cent and the state of Qatar 17 per cent. Speaking for Qatar, Hessa Al Jaber said she believes that VW's management "genuinely wants to turn the company around." (AFP)

VW chief apologises to shareholders for emissions scandal

China&#39;s biggest gaming group Tencent Holdings Ltd is to buy a majority stake in Finland&#39;s Supercell, which makes the &#39;Clash of the Clans&#39; mobile game, from SoftBank Group Corp, in a deal valued at roughly $8.6 billion. 
 
The purchase will expand Tencent&#39;s interests overseas, as the Chinese video game and social network group still relies mainly on its home market even though it has stakes in various foreign studios like Epic Games and Riot Games. 
 
Tencent will acquire about 84.3 per cent of Supercell via a wholly-owned consortium, including all of SoftBank&#39;s 72.2 per cent stake, it said on Tuesday. The sale is the biggest ever deal in gaming merger and acquisitions. 
 
The consortium will open up to co-investors, though Tencent expects to maintain a 50 per cent voting interest, it said. 
 
Supercell, also creator of Boom Beach and Hay Day, has a handful of successful games and gets a significant amount of revenue from in-game purchases, helping it to avoid the problems faced by the likes of rival Rovio Entertainment, which has failed to create a new hit game since its 2009 launch of Angry Birds. 
 
The Finnish company will now receive Tencent&#39;s backing as it pushes more aggressively into China&#39;s large online gaming market. 
 
With just 180 employees, Supercell had pre-tax profit of 880 million Euros with sales of 2.1 billion Euros ($2.38 billion) last year, putting the six-year-old firm into the list of largest Finnish companies measured by earnings. 
 
Clash of Clans, the world&#39;s number one grossing mobile game last year, is a war strategy game in which players build fortresses, form clans and battle it out with other clans in a Medieval-style fantasy world. 
 
Supercell&#39;s current management will keep their operational independence and the company will remain in Finland, Tencent&#39;s statement said. 
 
For SoftBank, the Tencent deal will mark its third major asset reshuffle in the past month. Softbank is seeking to bolster its finances following its 2013 acquisition of a majority stake in struggling US wireless carrier Sprint Corp. 
 
SoftBank said the latest sale would yield a return of around 2.9 times its original investment. It expects to book a 600-billion Yen ($5.74 billion) pre-tax profit this financial year from the sale. 
 
The Japanese media and telecoms company this month said it would sell $10 billion worth of shares in Chinese e-commerce giant Alibaba Group Holding Ltd to cut debt, as well as a decision to sell its stake in GungHo Online Entertainment Inc back to the mobile game maker for 73 billion Yen. 
 
In a surprise move, SoftBank said on Tuesday, President Nikesh Arora would resign as of its Wednesday shareholder meeting, less than two years since he joined the group. 
 
Tencent said it expected the Supercell deal to close in the third quarter of 2016. The Chinese company made 32 billion Yuan ($4.86 billion) revenues in the first three months of 2016, of which over half came from gaming. 
 
(Reuters)

The maker of hit games Boom Beach and Hay Day now has Tencent's backing as it pushes into China's large gaming market

China's biggest gaming group Tencent Holdings Ltd is to buy a majority stake in Finland's Supercell, which makes the 'Clash of the Clans' mobile game, from SoftBank Group Corp, in a deal valued at roughly $8.6 billion. The purchase will expand Tencent's interests overseas, as the Chinese video game and social network group still relies mainly on its home market even though it has stakes in various foreign studios like Epic Games and Riot Games. Tencent will acquire about 84.3 per cent of Supercell via a wholly-owned consortium, including all of SoftBank's 72.2 per cent stake, it said on Tuesday. The sale is the biggest ever deal in gaming merger and acquisitions. The consortium will open up to co-investors, though Tencent expects to maintain a 50 per cent voting interest, it said. Supercell, also creator of Boom Beach and Hay Day, has a handful of successful games and gets a significant amount of revenue from in-game purchases, helping it to avoid the problems faced by the likes of rival Rovio Entertainment, which has failed to create a new hit game since its 2009 launch of Angry Birds. The Finnish company will now receive Tencent's backing as it pushes more aggressively into China's large online gaming market. With just 180 employees, Supercell had pre-tax profit of 880 million Euros with sales of 2.1 billion Euros ($2.38 billion) last year, putting the six-year-old firm into the list of largest Finnish companies measured by earnings. Clash of Clans, the world's number one grossing mobile game last year, is a war strategy game in which players build fortresses, form clans and battle it out with other clans in a Medieval-style fantasy world. Supercell's current management will keep their operational independence and the company will remain in Finland, Tencent's statement said. For SoftBank, the Tencent deal will mark its third major asset reshuffle in the past month. Softbank is seeking to bolster its finances following its 2013 acquisition of a majority stake in struggling US wireless carrier Sprint Corp. SoftBank said the latest sale would yield a return of around 2.9 times its original investment. It expects to book a 600-billion Yen ($5.74 billion) pre-tax profit this financial year from the sale. The Japanese media and telecoms company this month said it would sell $10 billion worth of shares in Chinese e-commerce giant Alibaba Group Holding Ltd to cut debt, as well as a decision to sell its stake in GungHo Online Entertainment Inc back to the mobile game maker for 73 billion Yen. In a surprise move, SoftBank said on Tuesday, President Nikesh Arora would resign as of its Wednesday shareholder meeting, less than two years since he joined the group. Tencent said it expected the Supercell deal to close in the third quarter of 2016. The Chinese company made 32 billion Yuan ($4.86 billion) revenues in the first three months of 2016, of which over half came from gaming. (Reuters)

China's Tencent buys Finland's Supercell for $8.6 billion in the biggest ever deal in gaming merger and acquisitions

SoftBank Group Corp said today that Ken Miyauchi, head of the group&#39;s Japanese telecommunications operations, would become president and chief operating officer to replace Nikesh Arora. 
 
Arora, the former Google executive handpicked by the SoftBank founder Masayoshi Son as his successor, has abruptly quit as president after it became clear that Son wanted to remain at the helm longer than first planned. 
 
(Reuters)

Ken Miyauchi will replace Nikesh Arora as the chief operating officer and President. Arora was chosen as founder Masayoshi Son's successor

SoftBank Group Corp said today that Ken Miyauchi, head of the group's Japanese telecommunications operations, would become president and chief operating officer to replace Nikesh Arora. Arora, the former Google executive handpicked by the SoftBank founder Masayoshi Son as his successor, has abruptly quit as president after it became clear that Son wanted to remain at the helm longer than first planned. (Reuters)

SoftBank names its Japan telecom chief Miyauchi as president

Walt Disney Co has taken three Chinese firms to court over concerns local animation The Autobots&nbsp;copied elements from Disney&#39;s own hit movie Cars, as the US firm looks to protect its drive into the world&#39;s second-largest economy. 
 
A court in Shanghai held a hearing on Tuesday, a Disney spokeswoman confirmed to Reuters. The dispute was over &quot;copyright infringement&quot; and &quot;unfair competition&quot;, according to a notice on the Shanghai Pudong New Area People&#39;s Court website. 
 
Disney is making a major push into China with the recent opening of a $5.5 billion theme park in Shanghai, its first on the mainland, while its animated movies including Zootopia&nbsp;and Big Hero 6&nbsp;have been big box office hits in the country. 
 
The iconic US firm, however, faces tough competition in the market from local theme park developers, popular Chinese animations as well as counterfeits from merchandise to fake Disney hotels. Chinese authorities have promised to give Disney &quot;special&quot; trademark protection. 
 
The Autobots&nbsp;drew ire from netizens in China when it was released last year, with some pointing out similarities with Disney&#39;s 2006 film Cars starring Owen Wilson and its sequel in 2011. Cars 3 is pencilled in to be released next year. 
 
Zuo Jianlong, the director of The Autobots for production company Blue MTV, told Reuters in an interview on Wednesday he was &quot;relaxed&quot; about a potential ruling. 
 
&quot;Lots of people online have talked about plagiarism, but it seems from the legal side that the matter is quite clear - at root there is no plagiaristic behaviour,&quot; he said. 
 
&quot;If you put the two films side-by-side to compare them, then you will know they are completely different.&quot; 
 
Disney declined to comment further on the case. 
 
The Chinese film is about animated racing cars including main heroes K1 and K2, while Disney&#39;s offering follows the story of legendary racing car Lightning McQueen. 
 
The three Chinese firms involved in the suit are production company Blue MTV, media company Beijing G-Point, and online content platform PPLive Inc. 
 
An official for Beijing G-Point, who gave her name only as Ms Cheng, said the firms had hoped to reach a settlement, but Disney had been opposed to this. She added G-Point was not involved in production, but rather in the film&#39;s distribution. 
 
Reuters could not immediately reach PPLive for comment. 
 
China&#39;s box office hit around $6.8 billion last year, and is growing fast, a lure for overseas studios to tap into the market despite a cap on imported films, censorship concerns and a rising challenge from locally made movies. 
 
(Reuters)

Chinese authorities have promised Disney 'special' trademark protection as it faces competition from local theme park developers

Walt Disney Co has taken three Chinese firms to court over concerns local animation The Autobots copied elements from Disney's own hit movie Cars, as the US firm looks to protect its drive into the world's second-largest economy. A court in Shanghai held a hearing on Tuesday, a Disney spokeswoman confirmed to Reuters. The dispute was over "copyright infringement" and "unfair competition", according to a notice on the Shanghai Pudong New Area People's Court website. Disney is making a major push into China with the recent opening of a $5.5 billion theme park in Shanghai, its first on the mainland, while its animated movies including Zootopia and Big Hero 6 have been big box office hits in the country. The iconic US firm, however, faces tough competition in the market from local theme park developers, popular Chinese animations as well as counterfeits from merchandise to fake Disney hotels. Chinese authorities have promised to give Disney "special" trademark protection. The Autobots drew ire from netizens in China when it was released last year, with some pointing out similarities with Disney's 2006 film Cars starring Owen Wilson and its sequel in 2011. Cars 3 is pencilled in to be released next year. Zuo Jianlong, the director of The Autobots for production company Blue MTV, told Reuters in an interview on Wednesday he was "relaxed" about a potential ruling. "Lots of people online have talked about plagiarism, but it seems from the legal side that the matter is quite clear - at root there is no plagiaristic behaviour," he said. "If you put the two films side-by-side to compare them, then you will know they are completely different." Disney declined to comment further on the case. The Chinese film is about animated racing cars including main heroes K1 and K2, while Disney's offering follows the story of legendary racing car Lightning McQueen. The three Chinese firms involved in the suit are production company Blue MTV, media company Beijing G-Point, and online content platform PPLive Inc. An official for Beijing G-Point, who gave her name only as Ms Cheng, said the firms had hoped to reach a settlement, but Disney had been opposed to this. She added G-Point was not involved in production, but rather in the film's distribution. Reuters could not immediately reach PPLive for comment. China's box office hit around $6.8 billion last year, and is growing fast, a lure for overseas studios to tap into the market despite a cap on imported films, censorship concerns and a rising challenge from locally made movies. (Reuters)

Cars vs Autobots: Disney sues China firms in copyright dispute

McDonald&#39;s Corp has received more than half a dozen bids for its planned sale of China and Hong Kong stores, including offers from Beijing Tourism Group, Sanpower and ChemChina in a deal worth about $3 billion, people familiar with the matter told Reuters. 
 
McDonald&#39;s is offering a 20-year master franchise agreement to buyers as part of the deal, but has placed restrictions which has discouraged some private equity firms from participating in the process, the people added. 
 
Still, some global buyout firms including Bain Capital, TPG Capital and Carlyle Group have entered the auction with a view to team up with some of the Chinese strategic bidders, the people added. 
 
Other bidders who were preparing to place first-round bids ahead of Monday&#39;s deadline include Beijing Capital Agribusiness Group, McDonald&#39;s China partner, and GreenTree Hospitality, the people added. It was not immediately clear if the last two suitors proceeded with the bids. 
 
Oak Brook, Illinois-based McDonald&#39;s has hired Morgan Stanley to run the sale of about 2,800 restaurants in China, Hong Kong and South Korea, Reuters previously reported. The sale in South Korea is being run separately and it was not known if the same parties have expressed interest in the South Korean sale, the people added. 
 
The China and Hong Kong business had about $200 million in earnings before interest, depreciation and amortisation, and could be sold for about 15-16 times its core earnings, taking the deal value to about $3 billion, one of the people said. 
 
ChemChina and Sanpower officials were not available to comment immediately, while Beijing Tourism Group said it did not know about the matter. An official at Beijing Capital Agribusiness Group said the company did not participate in the bidding. A spokeswoman for GreenTree said the company was not bidding currently. 
 
Bain, Carlyle and TPG declined to comment. Sources declined to be identified as the sale process is confidential. 
 
&quot;We are making progress as we look for long-term strategic partners with local relevance who have complementary skills and expertise coupled with a strong understanding of McDonald&#39;s Brand and who share our values and vision with a dedicated focus on accelerating growth initiatives,&quot; a company spokeswoman said. 
 
&quot;As no decisions have been made, it would be premature to speculate further,&quot; she told Reuters in an email. 
 
McDonald&#39;s does not break out country-by-country revenue details but industry data shows it is China&#39;s number two fast food chain behind YUM Brands Inc, which operates the KFC and Pizza Hut chains. 
 
Both firms are facing increasing competition from cheaper domestic rivals, particularly in China where they are both trying to recover from food safety scares. 
 
Yum is also in the process of spinning off its 6,900 China restaurants, and is in talks with buyouts firms including KKR and Hopu Investments to sell up to a 20 per cent stake after battling sliding sales over the past few quarters. 
 
Bruised by food safety scandals and changing tastes, McDonald&#39;s is also selling a big stake in its Japanese arm. 
 
(Reuters)

The corporation is offering a 20-year master franchise agreement to buyers in a deal worth about $3 billion

McDonald's Corp has received more than half a dozen bids for its planned sale of China and Hong Kong stores, including offers from Beijing Tourism Group, Sanpower and ChemChina in a deal worth about $3 billion, people familiar with the matter told Reuters. McDonald's is offering a 20-year master franchise agreement to buyers as part of the deal, but has placed restrictions which has discouraged some private equity firms from participating in the process, the people added. Still, some global buyout firms including Bain Capital, TPG Capital and Carlyle Group have entered the auction with a view to team up with some of the Chinese strategic bidders, the people added. Other bidders who were preparing to place first-round bids ahead of Monday's deadline include Beijing Capital Agribusiness Group, McDonald's China partner, and GreenTree Hospitality, the people added. It was not immediately clear if the last two suitors proceeded with the bids. Oak Brook, Illinois-based McDonald's has hired Morgan Stanley to run the sale of about 2,800 restaurants in China, Hong Kong and South Korea, Reuters previously reported. The sale in South Korea is being run separately and it was not known if the same parties have expressed interest in the South Korean sale, the people added. The China and Hong Kong business had about $200 million in earnings before interest, depreciation and amortisation, and could be sold for about 15-16 times its core earnings, taking the deal value to about $3 billion, one of the people said. ChemChina and Sanpower officials were not available to comment immediately, while Beijing Tourism Group said it did not know about the matter. An official at Beijing Capital Agribusiness Group said the company did not participate in the bidding. A spokeswoman for GreenTree said the company was not bidding currently. Bain, Carlyle and TPG declined to comment. Sources declined to be identified as the sale process is confidential. "We are making progress as we look for long-term strategic partners with local relevance who have complementary skills and expertise coupled with a strong understanding of McDonald's Brand and who share our values and vision with a dedicated focus on accelerating growth initiatives," a company spokeswoman said. "As no decisions have been made, it would be premature to speculate further," she told Reuters in an email. McDonald's does not break out country-by-country revenue details but industry data shows it is China's number two fast food chain behind YUM Brands Inc, which operates the KFC and Pizza Hut chains. Both firms are facing increasing competition from cheaper domestic rivals, particularly in China where they are both trying to recover from food safety scares. Yum is also in the process of spinning off its 6,900 China restaurants, and is in talks with buyouts firms including KKR and Hopu Investments to sell up to a 20 per cent stake after battling sliding sales over the past few quarters. Bruised by food safety scandals and changing tastes, McDonald's is also selling a big stake in its Japanese arm. (Reuters)

McDonald's to sell China and Hong Kong stores

China wants to boost its domestic capacity to produce cutting-edge energy technologies in the next decade to challenge international energy majors in areas like offshore oil and gas exploration and building state-of-the-art thermal power plants. 
 
China lags behind competitors like Anglo-American oil majors or Japanese and German power turbine makers in the most advanced technologies for deepwater oil and gas production and the most efficient electric generation. But, as the world&#39;s biggest energy consumer, the country yearns to be at the forefront of these technologies to meet internal energy needs and to shift its export economy from less high-tech industries. 
 
A new catalogue, released this week by three ministries including the National Development and Reform Commission (NDRC), proposes increasing China&#39;s energy independence by 2025. The report also seeks export opportunities in technical areas such as deepwater drilling for oil and natural gas, highly efficient so-called ultra-super-critical thermal power plants, as well as renewable electric generation and storage technology. 
 
&quot;Our self-designed capacity is comparably weak, and the core technologies are not in our hands,&quot; said the plan. 
 
The report, led by the National Energy Administration, did not specify which companies would lead this development. But, in the oil and gas sector, China&#39;s state-owned companies including China National Petroleum Corporation (CNPC) and its listed subsidiary PetroChina, Sinopec Group, and China National Offshore Oil Corp will likely take leading roles. 
 
China Petroleum Technology and Development Corp, an equipment provider affiliated to CNPC, already has exports worth US$ 3.7 billion per year. 
 
&quot;In offshore oil drilling we&#39;d like to cut the reliance on imports by improving the self-sufficiency,&quot; said Yang Shuangquan, General Secretary of the China Petroleum and Petrochemical Equipment Industrial Association (CPEIA). 
 
&quot;(The plan) draws up... major development projects for the oil industries in exploiting natural gas, shale gas and offshore oil. The latter two will remain as China&#39;s strategic moves to ensure energy supply,&quot; he added. 
 
In renewables, Goldwind is the leading Chinese wind turbine maker and likely to play a role. The biggest investors in thermal and gas power generation are the state-owned China Huaneng Group, China Datang Corporation, along with its listed renewable subsidiary, China Guodian Corp, China Huadian Group Corp, and China Power Investment Corp. 
 
Yang said that no specified investment figures had yet been published, but that the ministry of finance would come up with follow-up strategies for implementation soon, without mentioning a specific time-frame. 
 
To make breakthroughs in these key technologies, the government wants to showcase live projects by 2020, leading to the formation of new, internationally competitive production chains by 2025. 
 
The plan also bolsters government efforts to shift away from less technologically advanced industries such as coal and steel and into more complex sectors. 
 
This includes increasing renewable technology usage, but also employing ultra-super-critical coal power generators, modern natural gas turbines, and large nuclear power plants. 
 
For renewables, China wants to build offshore wind turbines that can produce 10 megawatts (MW) of electricity, beyond the current technology at 7 MW, and modern solar cells. 
(Reuters)

As the world's biggest energy consumer, China yearns to be at the forefront of energy-sector technologies to meet internal needs

China wants to boost its domestic capacity to produce cutting-edge energy technologies in the next decade to challenge international energy majors in areas like offshore oil and gas exploration and building state-of-the-art thermal power plants. China lags behind competitors like Anglo-American oil majors or Japanese and German power turbine makers in the most advanced technologies for deepwater oil and gas production and the most efficient electric generation. But, as the world's biggest energy consumer, the country yearns to be at the forefront of these technologies to meet internal energy needs and to shift its export economy from less high-tech industries. A new catalogue, released this week by three ministries including the National Development and Reform Commission (NDRC), proposes increasing China's energy independence by 2025. The report also seeks export opportunities in technical areas such as deepwater drilling for oil and natural gas, highly efficient so-called ultra-super-critical thermal power plants, as well as renewable electric generation and storage technology. "Our self-designed capacity is comparably weak, and the core technologies are not in our hands," said the plan. The report, led by the National Energy Administration, did not specify which companies would lead this development. But, in the oil and gas sector, China's state-owned companies including China National Petroleum Corporation (CNPC) and its listed subsidiary PetroChina, Sinopec Group, and China National Offshore Oil Corp will likely take leading roles. China Petroleum Technology and Development Corp, an equipment provider affiliated to CNPC, already has exports worth US$ 3.7 billion per year. "In offshore oil drilling we'd like to cut the reliance on imports by improving the self-sufficiency," said Yang Shuangquan, General Secretary of the China Petroleum and Petrochemical Equipment Industrial Association (CPEIA). "(The plan) draws up... major development projects for the oil industries in exploiting natural gas, shale gas and offshore oil. The latter two will remain as China's strategic moves to ensure energy supply," he added. In renewables, Goldwind is the leading Chinese wind turbine maker and likely to play a role. The biggest investors in thermal and gas power generation are the state-owned China Huaneng Group, China Datang Corporation, along with its listed renewable subsidiary, China Guodian Corp, China Huadian Group Corp, and China Power Investment Corp. Yang said that no specified investment figures had yet been published, but that the ministry of finance would come up with follow-up strategies for implementation soon, without mentioning a specific time-frame. To make breakthroughs in these key technologies, the government wants to showcase live projects by 2020, leading to the formation of new, internationally competitive production chains by 2025. The plan also bolsters government efforts to shift away from less technologically advanced industries such as coal and steel and into more complex sectors. This includes increasing renewable technology usage, but also employing ultra-super-critical coal power generators, modern natural gas turbines, and large nuclear power plants. For renewables, China wants to build offshore wind turbines that can produce 10 megawatts (MW) of electricity, beyond the current technology at 7 MW, and modern solar cells. (Reuters)

China plans to boost energy-sector technology capacity over next decade

George Soros, the billionaire who earned fame by betting against the Pound in 1992, said that a British vote on Thursday to leave the European Union (EU) would trigger a bigger and more disruptive sterling devaluation than the fall on Black Wednesday. 
 
Soros used Quantum Fund in 1992 to bet successfully that sterling was overvalued against the Deutsche Mark, forcing then-Prime Minister John Major to pull the Pound out of the European Exchange Rate Mechanism (ERM). 
 
Soros, in an opinion piece in the Guardian newspaper, said that in the event of a BREXIT, the Pound would fall by at least 15 per cent, and possibly more than 20 per cent, to below $1.15 from its current level of around $1.46. 
 
&quot;The value of the Pound would decline precipitously. It would also have an immediate and dramatic impact on financial markets, investment, prices and jobs,&quot; Soros, who is 85, said in the Guardian. 
 
&quot;I would expect this devaluation to be bigger and also more disruptive than the 15 per cent devaluation that occurred in September 1992, when I was fortunate enough to make a substantial profit for my hedge fund investors.&quot; 
 
Soros, ranked as the world&#39;s 23rd richest person by Forbes magazine with a fortune of $24.9 billion, said the Bank of England would not cut rates after a BREXIT and that there would be few monetary policy tools left to ease a recession or a fall in British house prices. 
 
He also pointed to the &quot;very large&quot; current account deficit in the United Kingdom and said a post-BREXIT devaluation would be unlikely to improve manufacturing as trading conditions would be too uncertain to undertake new investments or hire workers. 
 
Hungarian-born Soros said the scale of the sterling devaluation would compare with 1967, when then-Prime Minister Harold Wilson devalued the pound to $2.40 from $2.80. 
 
Speculators, Soros said, would be eager to exploit a BREXIT situation to profit. 
 
&quot;Today, there are speculative forces in the markets much bigger and more powerful. And they will be eager to exploit any miscalculations by the British government or British voters,&quot; Soros said. 
 
&quot;BREXIT would make some people very rich &ndash; but most voters considerably poorer,&quot; Soros said. 
 
BREXIT WORRY 
 
Members of Britain&#39;s Leave campaign say some bankers, big companies and politicians are trying to scare British voters with overblown warnings about the financial and economic impact of a BREXIT. 
 
Justice Secretary Michael Gove, one of the leading members of the Vote Leave campaign, dismissed Soros&#39;s warning, saying that the billionaire had advocated British membership of the euro zone. 
 
&quot;The truth is that economic forecasters like George Soros have got things wrong in the past. They were the people who argued that we should join the single currency, the single currency as you know has brought economic misery,&quot; Gove told BBC radio. 
 
Opponents of EU membership say Britain could prosper if it cut itself free from what they portray as a doomed German-dominated project in excessive debt-funded welfare spending. 
 
The world&#39;s biggest banks including Citi and Goldman Sachs will draft in senior traders to work through the night following Britain&#39;s referendum on EU membership, set to be among the most volatile 24 hours for markets in a quarter of a century. 
 
A vote to leave the EU on June 23 would spook investors by undermining post-World War II attempts at European integration and placing a question mark over the future of the United Kingdom and its $2.9 trillion economy. 
 
Citi, Deutsche Bank, JPMorgan, Goldman Sachs, HSBC, Barclays, Royal Bank of Scotland and Lloyds are among those banks planning to have senior staff and traders working or on call in London as results start to dribble in after polls close at 2100 GMT, according to sources. 
 
&quot;British voters are now grossly underestimating the true costs of Brexit,&quot; Soros said. &quot;Too many believe that a vote to leave the EU will have no effect on their personal financial position. This is wishful thinking.&quot; 
 
(Reuters)

Soros, world's 23rd richest man who earned fame and fortune by betting against the Pound in 1992, says Brexit will make most voters 'poorer'

George Soros, the billionaire who earned fame by betting against the Pound in 1992, said that a British vote on Thursday to leave the European Union (EU) would trigger a bigger and more disruptive sterling devaluation than the fall on Black Wednesday. Soros used Quantum Fund in 1992 to bet successfully that sterling was overvalued against the Deutsche Mark, forcing then-Prime Minister John Major to pull the Pound out of the European Exchange Rate Mechanism (ERM). Soros, in an opinion piece in the Guardian newspaper, said that in the event of a BREXIT, the Pound would fall by at least 15 per cent, and possibly more than 20 per cent, to below $1.15 from its current level of around $1.46. "The value of the Pound would decline precipitously. It would also have an immediate and dramatic impact on financial markets, investment, prices and jobs," Soros, who is 85, said in the Guardian. "I would expect this devaluation to be bigger and also more disruptive than the 15 per cent devaluation that occurred in September 1992, when I was fortunate enough to make a substantial profit for my hedge fund investors." Soros, ranked as the world's 23rd richest person by Forbes magazine with a fortune of $24.9 billion, said the Bank of England would not cut rates after a BREXIT and that there would be few monetary policy tools left to ease a recession or a fall in British house prices. He also pointed to the "very large" current account deficit in the United Kingdom and said a post-BREXIT devaluation would be unlikely to improve manufacturing as trading conditions would be too uncertain to undertake new investments or hire workers. Hungarian-born Soros said the scale of the sterling devaluation would compare with 1967, when then-Prime Minister Harold Wilson devalued the pound to $2.40 from $2.80. Speculators, Soros said, would be eager to exploit a BREXIT situation to profit. "Today, there are speculative forces in the markets much bigger and more powerful. And they will be eager to exploit any miscalculations by the British government or British voters," Soros said. "BREXIT would make some people very rich – but most voters considerably poorer," Soros said. BREXIT WORRY Members of Britain's Leave campaign say some bankers, big companies and politicians are trying to scare British voters with overblown warnings about the financial and economic impact of a BREXIT. Justice Secretary Michael Gove, one of the leading members of the Vote Leave campaign, dismissed Soros's warning, saying that the billionaire had advocated British membership of the euro zone. "The truth is that economic forecasters like George Soros have got things wrong in the past. They were the people who argued that we should join the single currency, the single currency as you know has brought economic misery," Gove told BBC radio. Opponents of EU membership say Britain could prosper if it cut itself free from what they portray as a doomed German-dominated project in excessive debt-funded welfare spending. The world's biggest banks including Citi and Goldman Sachs will draft in senior traders to work through the night following Britain's referendum on EU membership, set to be among the most volatile 24 hours for markets in a quarter of a century. A vote to leave the EU on June 23 would spook investors by undermining post-World War II attempts at European integration and placing a question mark over the future of the United Kingdom and its $2.9 trillion economy. Citi, Deutsche Bank, JPMorgan, Goldman Sachs, HSBC, Barclays, Royal Bank of Scotland and Lloyds are among those banks planning to have senior staff and traders working or on call in London as results start to dribble in after polls close at 2100 GMT, according to sources. "British voters are now grossly underestimating the true costs of Brexit," Soros said. "Too many believe that a vote to leave the EU will have no effect on their personal financial position. This is wishful thinking." (Reuters)

British Pound fall after Brexit would be bigger, more disruptive than 'Black Wednesday', says Soros

Trailing its rivals after misplaced bets on wireless technology standards, Samsung Electronics Co Ltd aims to become a global top-three player in 5G mobile networks by moving quickly in markets like the United States, an executive said. 
 
The world&#39;s top smartphone maker ranks well behind peers such as Nokia Corp, Huawei Technologies Co Ltd and Ericsson in the networks business, after backing CDMA and WiMax wireless technologies that never caught on globally. 
 
The South Korean giant now sees an opportunity to catch up by moving fast and early on 5G, the wireless technology that telecom equipment makers are rushing to develop as the next-generation standard. 
 
&quot;We plan to move quickly and want to be at least among the top three with 5G,&quot; Kim Young-ky, Samsung&#39;s network business chief, told Reuters in an interview. 
 
&quot;It&#39;s important to get in early.&quot; 
 
5G wireless networks could offer data speeds ten times faster than 4G technology, enabling futuristic products such as self-driving cars and smart-gadgets that tech firms expect to become ubiquitous in the homes of tomorrow. 
 
Major network firms are targeting the United States as it moves rapidly ahead with plans to open spectrum for 5G wireless applications. Some U.S. officials expect to see the first large-scale commercial deployments by 2020. 
 
South Korea and Japan are also racing to deploy 5G hoping the next-generation standard will boost economic activity. South Korean carrier KT Corp aims to offer trial 5G services during the 2018 Winter Olympics in Pyeongchang. 
 
LOFTY AMBITIONS 
 
Samsung is targetting more than 10 trillion Won (US$ 8.6 billion) in annual sales of 5G equipment by 2022, a spokeswoman said. 
 
This would be a big step up for a networks business that generated less than 3 trillion Won in revenue last year, compared with 100.5 trillion Won in mobile device sales. 
 
Crucial to its plans is a partnership with New York-based Verizon Communications Inc to commercialise the technology. Other firms working with Verizon on 5G include Nokia, Ericsson, Qualcomm and Intel Corp. 
 
Verizon conducts field tests this year and aims to begin deploying 5G trials on home broadband services in 2017 in the United States, likely the first 5G application commercially available before a broader mobile network standard is agreed. 
 
As the industry is yet to decide on a 5G mobile standard, Samsung plans to start by selling equipment such as base transceiver stations and home receivers for fixed wireless broadband access. 
 
&quot;Even in Manhattan there are many areas in which it&#39;s difficult to get access to wireline broadband services,&quot; Kim said. 
 
The fixed wireless broadband market alone could be worth tens of billions of dollars, he said. 
 
Yet some analysts said it could be difficult for Samsung to convince carriers to increase orders at the expense of more established players. 
 
&quot;The network equipment business is a B2B business where the barrier to entry is high,&quot; Alpha Asset Management fund manager C.J. Heo said. 
 
(Reuters)&nbsp; 
 
($1 = 1,161.0000 Won) 
 
&nbsp;

It ranks well behind its peers in the networks business, having backed CDMA and WiMax wireless technologies that never caught on globally

Trailing its rivals after misplaced bets on wireless technology standards, Samsung Electronics Co Ltd aims to become a global top-three player in 5G mobile networks by moving quickly in markets like the United States, an executive said. The world's top smartphone maker ranks well behind peers such as Nokia Corp, Huawei Technologies Co Ltd and Ericsson in the networks business, after backing CDMA and WiMax wireless technologies that never caught on globally. The South Korean giant now sees an opportunity to catch up by moving fast and early on 5G, the wireless technology that telecom equipment makers are rushing to develop as the next-generation standard. "We plan to move quickly and want to be at least among the top three with 5G," Kim Young-ky, Samsung's network business chief, told Reuters in an interview. "It's important to get in early." 5G wireless networks could offer data speeds ten times faster than 4G technology, enabling futuristic products such as self-driving cars and smart-gadgets that tech firms expect to become ubiquitous in the homes of tomorrow. Major network firms are targeting the United States as it moves rapidly ahead with plans to open spectrum for 5G wireless applications. Some U.S. officials expect to see the first large-scale commercial deployments by 2020. South Korea and Japan are also racing to deploy 5G hoping the next-generation standard will boost economic activity. South Korean carrier KT Corp aims to offer trial 5G services during the 2018 Winter Olympics in Pyeongchang. LOFTY AMBITIONS Samsung is targetting more than 10 trillion Won (US$ 8.6 billion) in annual sales of 5G equipment by 2022, a spokeswoman said. This would be a big step up for a networks business that generated less than 3 trillion Won in revenue last year, compared with 100.5 trillion Won in mobile device sales. Crucial to its plans is a partnership with New York-based Verizon Communications Inc to commercialise the technology. Other firms working with Verizon on 5G include Nokia, Ericsson, Qualcomm and Intel Corp. Verizon conducts field tests this year and aims to begin deploying 5G trials on home broadband services in 2017 in the United States, likely the first 5G application commercially available before a broader mobile network standard is agreed. As the industry is yet to decide on a 5G mobile standard, Samsung plans to start by selling equipment such as base transceiver stations and home receivers for fixed wireless broadband access. "Even in Manhattan there are many areas in which it's difficult to get access to wireline broadband services," Kim said. The fixed wireless broadband market alone could be worth tens of billions of dollars, he said. Yet some analysts said it could be difficult for Samsung to convince carriers to increase orders at the expense of more established players. "The network equipment business is a B2B business where the barrier to entry is high," Alpha Asset Management fund manager C.J. Heo said. (Reuters) ($1 = 1,161.0000 Won)

Samsung aims for top-three spot in 5G mobile networks

Asian shares rose after a tentative start on Tuesday, cautiously extending a rally triggered by growing expectations that British voters will opt to remain in the European Union (EU) in this week&#39;s referendum. 
 
Morgan Stanley Capital Investment&#39;s broadest index of Asia-Pacific shares outside Japan was up by 0.2 per cent. 
 
Investors remain wary ahead of Thursday&#39;s British vote, as well as Federal Reserve chief Janet Yellen&#39;s two-day testimony before Congress starting later on Tuesday, as she might offer clues on the timing of the next US interest rate increase. 
 
&quot;With Yellen&#39;s congressional testimony and the UK referendum on our doorstep, markets all around are exercising caution,&quot; said Andrew Meredith, co-managing director at Tyton Capital Advisors in Tokyo. 
 
Bookmakers&#39; odds have also shown &quot;Remain&quot; gaining traction in Britain&#39;s referendum, with Betfair putting the implied probability of such an outcome at 72 per cent on Monday, up from 60-67 per cent on Friday. 
 
Two of the latest polls showed the &quot;Remain&quot; camp in the lead, reversing a recent rise in support for pulling out and prompting a rally in global equities and the pound. 
 
&quot;The polls were not supposed to influence as much as they have, but overnight we have seen a rampant position adjustment and an unwind of Brexit hedges,&quot; wrote Chris Weston, chief market strategist at IG in Melbourne. 
 
Japan&#39;s Nikkei stock index reversed early losses and added 1 per cent. 
 
A Reuters poll showed that confidence at Japanese manufacturers inched up in June from the prior month&#39;s three-year low and is seen rising only slightly ahead, reflecting worries about the yen&#39;s rise as Britain decides whether or not to leave the EU. 
 
Minutes of the Bank of Japan&#39;s April meeting released on Tuesday showed policymakers believe overseas economies continue to pose downside risks to Japan&#39;s economy and prices. 
 
The Pound was steady on the day at $1.4660 after it rose as high as $1.4721 on Monday, extending a recovery from last Thursday&#39;s more than two-month trough of $1.4013. 
 
The Dollar added 0.2 percent to 104.13 Yen, moving away from Thursday&#39;s nearly two-year low of 103.55 that was hit after the Bank of Japan held policy steady, disappointing investors hoping for more stimulus. 
 
Finance Minister Taro Aso said on Tuesday that Japan would respond to rapid currency moves, although he said the country would not intervene in the market so &quot;easily.&quot; 
 
The Euro gained 0.2 per cent to $1.1331. 
 
Later in the session, Germany&#39;s constitutional court will rule on the emergency bond-buying plan devised by the European Central Bank (ECB) during the financial crisis. An outright rejection of the programme is viewed as unlikely, but the ruling could potentially upset the ECB&#39;s current programme and roil markets. 
 
Crude oil futures gave back some of their gains after surging 3 per cent on Monday as Brexit fears waned. 
 
Brent crude shed 0.5 per cent to $50.41 a barrel, while US crude was down 0.4 per cent at $49.18. 
 
Spot gold also inched lower, down 0.2 per cent to $1,286.11 an ounce.

Two of the latest polls show the 'Remain' camp in the lead and prompting a rally in global equities and the Pound

Asian shares rose after a tentative start on Tuesday, cautiously extending a rally triggered by growing expectations that British voters will opt to remain in the European Union (EU) in this week's referendum. Morgan Stanley Capital Investment's broadest index of Asia-Pacific shares outside Japan was up by 0.2 per cent. Investors remain wary ahead of Thursday's British vote, as well as Federal Reserve chief Janet Yellen's two-day testimony before Congress starting later on Tuesday, as she might offer clues on the timing of the next US interest rate increase. "With Yellen's congressional testimony and the UK referendum on our doorstep, markets all around are exercising caution," said Andrew Meredith, co-managing director at Tyton Capital Advisors in Tokyo. Bookmakers' odds have also shown "Remain" gaining traction in Britain's referendum, with Betfair putting the implied probability of such an outcome at 72 per cent on Monday, up from 60-67 per cent on Friday. Two of the latest polls showed the "Remain" camp in the lead, reversing a recent rise in support for pulling out and prompting a rally in global equities and the pound. "The polls were not supposed to influence as much as they have, but overnight we have seen a rampant position adjustment and an unwind of Brexit hedges," wrote Chris Weston, chief market strategist at IG in Melbourne. Japan's Nikkei stock index reversed early losses and added 1 per cent. A Reuters poll showed that confidence at Japanese manufacturers inched up in June from the prior month's three-year low and is seen rising only slightly ahead, reflecting worries about the yen's rise as Britain decides whether or not to leave the EU. Minutes of the Bank of Japan's April meeting released on Tuesday showed policymakers believe overseas economies continue to pose downside risks to Japan's economy and prices. The Pound was steady on the day at $1.4660 after it rose as high as $1.4721 on Monday, extending a recovery from last Thursday's more than two-month trough of $1.4013. The Dollar added 0.2 percent to 104.13 Yen, moving away from Thursday's nearly two-year low of 103.55 that was hit after the Bank of Japan held policy steady, disappointing investors hoping for more stimulus. Finance Minister Taro Aso said on Tuesday that Japan would respond to rapid currency moves, although he said the country would not intervene in the market so "easily." The Euro gained 0.2 per cent to $1.1331. Later in the session, Germany's constitutional court will rule on the emergency bond-buying plan devised by the European Central Bank (ECB) during the financial crisis. An outright rejection of the programme is viewed as unlikely, but the ruling could potentially upset the ECB's current programme and roil markets. Crude oil futures gave back some of their gains after surging 3 per cent on Monday as Brexit fears waned. Brent crude shed 0.5 per cent to $50.41 a barrel, while US crude was down 0.4 per cent at $49.18. Spot gold also inched lower, down 0.2 per cent to $1,286.11 an ounce.

Asian shares rise as Britain expected to stay in EU

Wal-Mart Stores Inc said on Monday it plans to sell its Chinese e-commerce business Yihaodian to Chinese online retailer JD.com Inc for a 5 per cent equity stake in JD.com, a strategic alliance that aims to expand WalMart&#39;s reach in China. 
 
Under the deal, JD.com will issue about 145 million new class A shares to Wal-Mart, worth about $1.5 billion at JD.com&#39;s current valuation. 
 
Shares of Wal-Mart rose 26 cents, or 0.4 per cent, to $71.21 in afternoon New York Stock Exchange trading. JD.com&#39;s ADRs were up nearly 8 per cent, or $1.56, at $21.58 
 
Wal-Mart took a stake in Yihaodian, which has focussed on online grocery sales and caters to affluent female customers, in 2011 before taking full ownership last July. 
 
That deal combined Yihaodian&#39;s local expertise with Wal-Mart&#39;s global sourcing and supply chain capabilities, but growth was hindered when Wal-Mart narrowed the number of sellers on the site, according to a note from Barclays issued on Monday. 
 
In the latest agreement, JD.Com, China&#39;s second-largest online retailer, will control the Yihaodian brand and website, while Walmart will continue to operate the Yihaodian direct sales business and will sell on the Yihaodian marketplace. 
 
The deal will give Walmart access to JD.Com&#39;s online traffic and expand its reach into the Chinese market. Sam&#39;s Club China will open a flagship store on JD.Com and utilise its delivery network, the companies said. Walmart&rsquo;s China stores will be listed as a preferred retailer on JD.com&rsquo;s crowd-sourced platform, O2O JV Dada. 
 
Brian Yarbrough, an analyst with Edward Jones, said the deal with JD.com was a more cost-effective way for Wal-Mart to get its products and name in the marketplace by partnering with a large, experienced player. 
 
&quot;It doesn&#39;t mean that they&#39;ve pulled away, but to me it tells me they are trying to make smarter investments,&quot; said Yarbrough. 
 
Walmart&rsquo;s financial adviser on the deal was Morgan Stanley &amp; Co. LLC and its legal advisor was Morrison &amp; Foerster LLP. JD.com&rsquo;s legal advisors were Orrick Herrington Sutcliffe LLP and Han Kun Law Offices. 
 
(Reuters)

The deal will give Walmart access to JD.Com's online traffic and expand its reach into the Chinese market

Wal-Mart Stores Inc said on Monday it plans to sell its Chinese e-commerce business Yihaodian to Chinese online retailer JD.com Inc for a 5 per cent equity stake in JD.com, a strategic alliance that aims to expand WalMart's reach in China. Under the deal, JD.com will issue about 145 million new class A shares to Wal-Mart, worth about $1.5 billion at JD.com's current valuation. Shares of Wal-Mart rose 26 cents, or 0.4 per cent, to $71.21 in afternoon New York Stock Exchange trading. JD.com's ADRs were up nearly 8 per cent, or $1.56, at $21.58 Wal-Mart took a stake in Yihaodian, which has focussed on online grocery sales and caters to affluent female customers, in 2011 before taking full ownership last July. That deal combined Yihaodian's local expertise with Wal-Mart's global sourcing and supply chain capabilities, but growth was hindered when Wal-Mart narrowed the number of sellers on the site, according to a note from Barclays issued on Monday. In the latest agreement, JD.Com, China's second-largest online retailer, will control the Yihaodian brand and website, while Walmart will continue to operate the Yihaodian direct sales business and will sell on the Yihaodian marketplace. The deal will give Walmart access to JD.Com's online traffic and expand its reach into the Chinese market. Sam's Club China will open a flagship store on JD.Com and utilise its delivery network, the companies said. Walmart’s China stores will be listed as a preferred retailer on JD.com’s crowd-sourced platform, O2O JV Dada. Brian Yarbrough, an analyst with Edward Jones, said the deal with JD.com was a more cost-effective way for Wal-Mart to get its products and name in the marketplace by partnering with a large, experienced player. "It doesn't mean that they've pulled away, but to me it tells me they are trying to make smarter investments," said Yarbrough. Walmart’s financial adviser on the deal was Morgan Stanley & Co. LLC and its legal advisor was Morrison & Foerster LLP. JD.com’s legal advisors were Orrick Herrington Sutcliffe LLP and Han Kun Law Offices. (Reuters)

Wal-Mart to sell its China e-biz to JD.com for 5% stake