Latest news with #US-China
The Star
7 hours ago
- Business
- The Star
Top Morgan Stanley Asia banker targets US$10bil
LAST month, as the US-China trade war heated up, Morgan Stanley's co-president Dan Simkowitz made a discreet visit to Beijing. It was the first time a senior US executive from the bank had stepped foot in China in five years, and came days after a rare board meeting in Tokyo near the Imperial Palace. The low-key events underscore the focus the Wall Street giant is putting on Asia under recently installed chief executive officer (CEO) Ted Pick. After several tough years sparked by a slump in China that hammered global banks, Morgan Stanley is regaining traction in the region. Led by one of the deepest and longest-tenured teams of any of its rivals, Morgan Stanley posted record Asia revenue of US$7.64bil last year, topping arch-rival Goldman Sachs Group Inc for the third-straight time. The bank is now eyeing US$10bil in revenue within five years, its Asia chief Gokul Laroia said in a rare interview from his Hong Kong office. 'If you're diversified by geography and you're diversified by product, you have inherent hedges in your business,' said Laroia, who joined Simkowitz on the Beijing trip to meet with He Lifeng, the vice-premier who is also leading US trade talks. 'A combination of familiarity and confidence in the team over here is super helpful, particularly when times are tough.' The bank is counting on a widening array of investment banking and trading initiatives across the region. A growing presence in Japan and India will likely add to a China business that's slowly recovering even as trade wars rage. Still, the goal will be challenging. Despite investing billions, global banks have struggled to make meaningful profits on the Chinese mainland, squeezed by a sluggish economy and powerful local rivals. At the same time, the bank faces fierce competition in Japan, where many global firms saw sliding revenue last year. In India, fees are generally low and the regulatory landscape is hard to navigate. Laroia, a 30-year veteran of Morgan Stanley and co-head of global equities, is in charge of executing the Asia strategy. He joins a long list of top executives at the New York bank who cut their teeth in the region. At the top is Pick, a New Yorker who worked in South Korea for about six months early in his career. At a town hall last year after becoming CEO, Pick joked that the two people he's travelled most with in his life are his wife and Laroia. In the past two decades, Pick has made more than 60 trips to Asia. Simkowitz, who oversees the global institutional securities business, worked in Tokyo and Hong Kong in the 1990s, while Mo Assomull, co-head of investment banking, grew up in Hong Kong where he first joined the bank. Laroia is part of the bank's 12-member top executive body. His close ties to the top have been instrumental in helping the firm's bankers in Asia secure swift approvals and push key deals across the line, according to sources. He's led businesses across investment banking and sales and trading, making him one of the most well-rounded regional CEOs among global banks in Asia. During the bank's April earnings call, Pick gave a rare shout-out to Laroia, pointing to Asia's equities performance and its contribution to global results. Backbone of Asia Like its biggest US rivals, Morgan Stanley's stocks division is the backbone of Asia, and its momentum is pushing Greater China's share to about half of regional revenue. Overall, Japan delivers 20% to 25%, while India makes up roughly 10%. In the first quarter, the bank's revenue from Asia topped Goldman's by 27%, public filings showed. Morgan Stanley declined to comment on contributions by geography. While activity is picking up, Wall Street firms have gone through tough years following China's financial opening at the start of the decade. Since late 2022, Morgan Stanley has slashed more than 120 Asia investment banking jobs – many of then China-focused – as overall Asia revenue fell before rebounding in 2024, according to sources. Now, fresh China-US tension has again fuelled investor caution, imperiling growth prospects for most investment banks. 'The geopolitical dynamic is a complicated one,' said Laroia. 'Our role is to make sure that the business that we're doing in China is the risk that we're comfortable managing.' To confront the challenges in China, Laroia draws on challenges from navigating five major economic meltdowns, including the Asian financial turmoil and dotCom bust, severe acute respiratory syndrome, the global financial crisis and the Covid-19 pandemic. He tapped that experience earlier this year as US President Donald Trump's tariff shock caused Chinese stocks to plummet. Laroia kept in close phone contact with a leading hedge fund in London. He advised sticking with China, but to cut long-dated investments and avoid complex positions to preserve liquidity, according to the US$10bil portfolio manager, who asked not to be identified. Better access The long-time client said that the bank has generally provided better access to borrowable Chinese shares, citing one instance when its prime brokerage unit offered twice as many as rivals for short bets. This allows the bank to charge premiums in illiquid markets, the hedge fund manager said. Morgan Stanley has made a deliberate push to broaden its product suite across businesses in China to counter the deals slump. Its onshore units have secured multiple licences from derivatives to principal trading and research in the last few years. 'The sales and trading business continues to grow because there's a very broad cross section of global investors and increasingly a rapidly growing pool of local capital that is trading these markets more actively than they've traded in the past,' Laroia said. — Bloomberg Cathy Chan writes for Bloomberg. The views expressed here are the writer's own.
New Straits Times
7 hours ago
- Automotive
- New Straits Times
Tax expansion poses limited direct impact on auto sector
KUALA LUMPUR: The upcoming expansion of the service tax scope, effective next month, will have a limited direct impact on Malaysia's automotive sector, according to CIMB Securities Sdn Bhd. The firm said this is because vehicle sales are already subject to a 10 per cent sales tax, while maintenance and repair services incur an eight per cent service tax. "That said, there may be a slight increase in dealership and showroom rental costs due to the measure, although we believe the impact will be minimal. "Indirectly, however, weaker consumer sentiment could weigh on new vehicle sales in the second half of 2025 (2H25)," it added. CIMB Securities also highlighted that the Malaysian Automotive Association has forecast a 4.5 per cent year-on-year (YoY) decline in total industry volume (TIV) to 780,000 units in 2025. This is attributed to demand normalisation and a reduced industry order backlog. The firm said MAA also flagged global economic uncertainty, exacerbated by US-China trade tensions, as a risk to Malaysia's economic outlook. In addition, the government has postponed the implementation of the revised open market value (OMV) calculation from January 2025 to January 2026. CIMB Securities views this delay as a short-term positive for the sector, as the new OMV formula could raise the average selling price of locally assembled vehicles by 10–30 per cent, based on MAA estimates. The firm also expects a sharper seven per cent YoY decline in TIV to 760,000 units, mainly due to potential headwinds such as the planned removal of the RON95 petrol subsidy in 2H25. "Despite this, we expect demand in the sub-RM100,000 segment to remain resilient, supported by national brands and selected entry-level Japanese models. "The government's plan, outlined in Budget 2025, to retain subsidies for at least 85 per cent of RON95 users should help cushion the impact and support affordability in the mass-market segment. "Consequently, we project national brands to retain a dominant 64.5 per cent market share in 2025, with non-national marques accounting for the remaining 35.5 per cent," it said. Furthermore, CIMB Securities believes the removal of fuel subsidies could further accelerate battery electric vehicle adoption. The firm also expects a potential spike in electric vehicle (EV) demand in the fourth quarter of 2025 as buyers rush to benefit from tax savings. Full duty exemptions for imported EVs are set to expire by the end of 2025, and the government is unlikely to extend them beyond the December 31, 2025 deadline. "Within our coverage, Sime Darby Bhd is well-positioned to ride this wave, supported by its expanding EV line-up across brands like BMW, Mini, Porsche, BYD, and Volvo," it said. Overall, CIMB Securities has maintained a "Neutral" rating on the auto sector due to a subdued growth outlook amid intensifying market competition. It noted that Sime Darby remains its top sector pick, supported by earnings recovery in the Australian mining sector, a broad EV portfolio, its stake in Malaysia's auto market leader Perodua, and the potential monetisation of non-core and land bank assets. Moving forward, the firm said key catalysts for the sector include the strengthening of the ringgit against the US dollar and Japanese yen, a reduction in interest rates, and favourable government policies aimed at reviving domestic demand. Key downside risks to its call include depreciation of the ringgit, interest rate hikes, and weaker consumer sentiment stemming from the potential subsidy rationalisation programme and new taxes.
Time of India
13 hours ago
- Business
- Time of India
'Chinese threat' that made Donald Trump make deal with China is now worrying TV, speaker, smartwatch and other electronics makers in India
China's control over critical minerals, also called Rare earth metals/minerals, is reportedly a powerful bargaining chip in trade talks, as seen in recent US-China discussions. By easing export restrictions, China can secure concessions, such as tariff relief or relaxed visa policies, as hinted in negotiations where Trump claimed progress on access to Chinese magnets and minerals The America's reliance on China for these minerals is seen as a strategic vulnerability. In April, China reportedly restricted rare earth mineral exports in response to Trump's tariff increases. The export restrictions on rare earth minerals is said to have made President Donald Trump furious. On June 11, Trump announced on Truth Social that China agreed to supply the U.S. with these minerals as part of a trade deal, calling it 'done'. Rare Metal worries 'come to India' Similar worries about rare earth metals has reportedly come closer home. China's export controls on rare earth metals, particularly Terbium and Dysprosium used in Neodymium-iron-boron (NdFeB) magnets, is reportedly creating panic among speakers, wearables, and television and some other consumer electronic manufacturers in India. According to a report in Economic Times, China's export control licensing of rare earth metals is worrying electronics companies who are sitting on thin supplies of permanent magnets with the threat of production coming to a standstill looming large, industry executives and associations said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Memperdagangkan CFD Emas dengan salah satu spread terendah? IC Markets Mendaftar Undo Among the seven rare earth metals facing restricted exports, Terbium and Dysprosium are critical components in Neodymium-Iron-Boron (NdFeB) magnets, or permanent magnets, which is the preferred choice for high-performance, portable and compact audio products. These magnets are said to be vital for high-performance audio products, constitute 5-7% of the bill of materials, with India importing nearly 100% from China, per ELCINA 's whitepaper. ELCINA warned that the inability to procure NdFeB magnets could halt speaker production in Noida, Chennai, and Pune, potentially forcing OEMs to import finished speakers, undermining the "Make in India" initiative. Chinese port delays, requiring end-use declarations, are further disrupting speaker assembly units, delaying supplies to domestic TV and audio brands. According to the report, the industry body has claimed that shipments of magnets and even finished products with embedded magnets are being stopped at Chinese ports, pending end-use declarations. This is leading to production disruptions of speaker assembly units in India, delaying supplies to customers including domestic TV and audio brands. Indian manufacturers and importers are seeking government-issued end-use certificates to meet Chinese export requirements. IESA president Ashok Chandak attributed the crisis partly to India's lack of local processing capabilities and overreliance on imports, despite having critical mineral reserves. He told ET that the current situation can be partially blamed on Indian manufacturers who ignored the risk back in 2020. Since China's April export control announcement, magnet prices have risen 15%, with costs doubling when sourced from Japan, Vietnam, or recycled Indian suppliers, per ELCINA's analysis. What are '17 Elements' called Rare Earth Minerals Rare earth minerals are a group of 17 elements, including Scandium, Yttrium, and the 15 Lanthanides, found in the Earth's crust. Despite their name, they are relatively abundant, but extracting and processing them is complex, costly, and environmentally damaging. These minerals are critical for high-tech industries, powering everything from smartphone screens and electric vehicle motors to defense systems and medical devices. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
16 hours ago
- Business
- Time of India
Want to study in the U.S.? The government might scroll your Instagram first — here's what the new 2025 visa rule means for foreign students
New US visa rules require foreign students to make social media profiles public for security screening- Foreign students applying for US student and exchange visas must now unlock their social media profiles for inspection as part of stricter US visa rules, the State Department has announced. This move is aimed at boosting national security through detailed online presence reviews of applicants seeking F, M, and J category visas, which cover academic programs, vocational training, and cultural exchanges. The directive, issued on Wednesday, asks US consular officers worldwide to conduct social media vetting to check for signs of anti-American sentiment or any links to activities considered threatening to the United States. According to Politico, diplomats have been instructed to look for "hostility toward the citizens, culture, government, institutions, or founding principles of the United States", and to flag any support for foreign terrorist groups, antisemitic violence, or other national security concerns. Why are social media profiles being reviewed under US visa rules? The US government now expects foreign student visa applicants to adjust privacy settings across all social media platforms and make their accounts public for official review. This requirement applies to all F (academic), M (vocational), and J (exchange) visa categories. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Indonesia: New Container Houses (Prices May Surprise You) Container House | Search Ads Search Now Undo The State Department emphasized that these checks aim to "ensure we are properly screening every single person attempting to visit our country." The vetting process includes identifying any posts, affiliations, or behaviors that may suggest a risk to national security or show hostility toward US values. A senior official added that this change reflects "an expectation from American citizens that their government will make every effort to make our country safer." Live Events Who will be affected by these social media checks? The new social media disclosure rules target international students and exchange visitors, particularly those from countries that the US considers high-risk or sensitive. The State Department has also been keeping a close watch on Chinese students, especially in the context of tense US-China relations, trade disputes, and rare-earth mineral supply chains. These rules apply to all applicants globally who are seeking visas under the F, M, or J classifications. While the policy doesn't single out any nationality in the official announcement, the implementation might vary based on country-specific diplomatic concerns. Which international students are most affected by this rule? The rule applies to all student and exchange visa applicants under categories F, M, and J . But it particularly affects those applying to elite U.S. universities —such as Ivy League schools—where foreign student populations are higher. The State Department has also prioritized interview slots for students applying to colleges with less than 15% international enrollment , leaving others scrambling for timely interview appointments. What content will US diplomats look for in social media activity? According to guidance reported by Politico , consular officers are instructed to look for: Support for foreign terrorist organizations Hostility toward US culture or government institutions Online advocacy of violence or antisemitism Any content considered a threat to US national security This level of monitoring aligns with broader government efforts already underway at US Citizenship and Immigration Services, especially around monitoring online opposition to US allies like Israel. How does this policy tie into broader US immigration and security goals? The social media screening policy was introduced during the Trump administration, which paused the issuance of new education visas in May while developing enhanced vetting protocols. The move has been publicly supported by Secretary of state Marco Rubio, who has been vocal about tightening foreign student entry to protect national interests. Officials argue that these new measures are part of modernizing the State Department's visa system to keep pace with evolving online threats. What do students need to do before their visa interview? Under the new US visa rules, applicants will be expected to: Set all their social media accounts to public visibility Be prepared for in-depth questions about past posts and affiliations Avoid hiding or deleting content, as this may raise suspicion Failure to comply could result in delays or outright denial of a visa. Officials warn that hiding activity could be interpreted as intent to deceive. Are privacy advocates concerned? Absolutely. Critics of the policy, including human rights and education groups, argue this change could chill free speech , deter international talent , and compromise student privacy . Some experts are comparing it to Cold War-era ideological screening. They also warn that applicants may start self-censoring or deleting years of personal content, further complicating the visa process. What's next for the US visa application process? With these new changes, the US has resumed scheduling interviews for educational and cultural exchange programs. However, each application will now undergo what's described as a 'comprehensive and thorough vetting' process, heavily influenced by online behavior and perceived political or social affiliations. This policy could potentially reshape how thousands of foreign students prepare their digital presence when applying for US study visas. While the stated goal is safety, critics argue that it could also silence legitimate political expression or discourage applicants who are concerned about privacy. US visa rules now require applicants to make their social media profiles public Applies to F, M, and J visa holders, including international students and exchange visitors Officials will screen for any perceived threats, including antisemitic or anti-US content Social media vetting is now part of a standard background check This policy is part of a broader push to modernize visa security measures As these new US visa rules take effect, international students are urged to be cautious, transparent, and well-informed when submitting their visa applications and preparing their online profiles. FAQs: Q1: What do the new US visa rules require from foreign students? They must set their social media profiles public for US review. Q2: Which visa categories are affected by the social media checks? The rules apply to F, M, and J visas for education and exchanges.
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Business Standard
a day ago
- Business
- Business Standard
Motilal Oswal recommends 'buy' on MCX Copper, set target at ₹915
According to Pathfinder - Copper Resurgence report from Motilal Oswal Wealth Management, MCX Copper has given a breakout above the descending trend line on the daily chart (of 18th June), confirming the resumption of the prevailing bullish trend. Price action continues to display a classic bullish structure, marked by a sequence of higher highs and higher lows. Additionally, the 14-period RSI on the daily chart is holding above the 60 level, suggesting a strengthening bullish momentum. Therefore, Motilal Oswal Wealth Management recommends buying in the range of ₹882 – ₹880, with a stop-loss below ₹855 on a closing basis and upside targets of ₹915. On the daily chart (of 18th June), LME Copper has been exhibiting a higher high and higher low price formation since May 2025, indicating a well-established bullish trend. 14 - Period RSI is also poised to move upwards and it's holding well above the midpoint mark of 50 signalling market strength. Motilal Oswal Wealth Management recommends buying LME Copper in the current range of $9,725 – $9,715 with a stop loss below $9,420 level on a sustainable basis and with upside targets at $10,080 levels. Track LIVE Stock Market Updates Navneet Damani, Group Senior VP, Head Commodities Research, Motilal Oswal Wealth Management, said 'Copper prices have been hovering in a broad range between $8900-9800 amidst mixed economic scenario and renewed optimism surrounding easing US-China trade tensions and low LME inventories. Inventory drawdowns and mine disruptions continue to support prices, while weakening Chinese imports and declining premiums may question demand strength. After the tariffs were doubled on steel and aluminium imports into the US to 50 per cent, market participants speculate copper tariffs to be announced soon. The Dollar Index has been continuously weakening, supporting base metal prices on the lower end. President Trump hinted at imposing new unilateral tariffs on trading partners within two weeks, which may be volatile for prices. Prices are expected to see an upside of 4-5 per cent supported by positive catalysts and technical conviction.' ===================================
