EUR/USD 1.11721
0.158%
Gold 4190.13
0.446%
Oil 91.684
-0.745%
USD/JPY 158.273
-0.211%
GBP/USD 1.32184
0.082%
GBP/JPY 209.216
-0.127%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The USD-IRB forward premium fell after the Reserve Bank of India expanded its hedging restrictions.On October 13th, the International Monetary Fund (IMF) stated that more global banks would be pushed to the brink of danger under a "doomsday scenario" compared to a year ago. The IMF indicated that even if bank profits soar, AI-related challenges could jeopardize banks. The IMFs latest stress test examined how banks would cope with an AI collapse, soaring government bond yields, and an economic slowdown. Under this scenario, 22% of global banking assets would be held by 110 "weak" banks, whose core capital adequacy ratios would fall below 7%, or lower than the higher threshold applicable to the worlds most complex banks. In last years test, 18% of banking assets were concentrated in 88 "weak" banks under the stress scenario. IMF Atsanacios Wamwakidis stated that each years scenario reflects the risks considered relevant at the time and is based on the same methodology. This year, the risks facing the global economy have been amplified by energy supply disruptions, concerns about an AI bubble, and rising yields.On October 13th, a senior official from the International Monetary Fund (IMF) stated that soaring government bond yields are becoming the biggest emerging risk facing the global financial system. Asanasios Vavankidis, Deputy Director of the IMFs Capital Markets Department, said that the rise in bond yields is "clearly" the biggest change in the risk outlook since the IMF released its last assessment report in April. He noted that other risks and vulnerabilities have also intensified, including a potential correction in artificial intelligence (AI) related markets, triggering broader ripple effects. However, by comparison, the risk posed by the sharp rise in sovereign bond yields is considered a more immediate and pressing threat. With the US war on Iran pushing up inflation and central banks responding by raising interest rates, borrowing costs for the US, European, and Japanese governments have climbed to multi-decade highs. Investors are concerned that the combination of historically high debt burdens and rising debt refinancing costs will further exacerbate the fiscal pressure on governments.Bank of England Monetary Policy Committee member Green: The turning point in global bond market tolerance for government borrowing is difficult to predict, and I will be closely monitoring this.The International Monetary Fund (IMF) says adjustments to AI-related investments could have “global” implications.

Foxconn Is Expected to Shortly Be Fined For Unapproved China Investment

Skylar Williams

Dec 19, 2022 12:12

15.png


Foxconn, the world's largest contract electronics manufacturer, is likely to be penalized by Taiwan's government for an unauthorized investment in a Chinese chip manufacturer, a source with direct knowledge of the case said Monday.


Taiwan, which Beijing claims as sovereign Chinese territory, keeps a cautious eye on China's ambitions to expand its semiconductor sector and is tightening regulations to prevent China from stealing its chip technology, as it sees it.


Foxconn, a key Apple Inc. (NASDAQ:AAPL) supplier and iPhone manufacturer, reported in July that it was a stakeholder in troubled Chinese semiconductor firm Tsinghua Unigroup, but said late Friday that it will sell the stock. Saturday, Taiwan said it will penalize Foxconn for the investment.


The acquisition had not been approved by Taiwan's government, which must authorize all overseas investments. Taipei also prevents corporations from constructing their most advanced semiconductor foundries in China, ensuring that they do not export their most advanced technologies.


Monday, the Economy Ministry will call Foxconn to confirm the share transaction, a source familiar with the matter told Reuters.


"Even if the investment was subsequently withdrawn, it has been established that they invested first, and they will be penalised," a person who was not authorized to talk to the media said.


"It shouldn't take too long for Hon Hai to be penalized," the insider continued, referring to the formal name of the corporation, Hon Hai Precision Industry Co Ltd.


Reuters earlier reported that the corporation might face a punishment of up to T$25 million (about $813,749)


Foxconn declined to comment.


Tsinghua Unigroup has not provided a response to a request for comment on the withdrawn investment.


According to Taiwanese legislation, the government may restrict investments in China based on "national security and industrial development considerations." Repeatedly fining lawbreakers until adjustments are made is a possibility.


Foxconn has been pursuing the acquisition of global chip manufacturing facilities in response to a global chip shortage that has shaken the automotive and electronics industries. As it develops into the electric car sector, it is eager to manufacture auto chips in particular.

Suggestion