Chinese real estate's problems are far from over
China's property market giant, Country Garden, has seen its debt problems intensify following the suspension of its onshore bonds. This has resulted in its shares tumbling to a record low on Monday.
Country Garden shares fell 16.3% by midday, leading to a 3.9% drop in the Hang Seng Mainland Properties Index (.HSMPI). The stock has lost nearly 50% this month alone.
Shares of Country Garden's property management unit, Country Garden Services, have also fallen more than 10%.
The failures of Country Garden, which was once considered a financially sound developer, are adding to concerns in a real estate market that is already facing weak buyer demand. The situation also adds pressure on policymakers, as a growing number of private real estate companies are on the verge of collapsing if they do not receive financial support soon.
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China's property market giant, Country Garden, has seen its debt problems intensify following the suspension of its onshore bonds. This has resulted in its shares tumbling to a record low on Monday.
Country Garden shares fell 16.3% by midday, leading to a 3.9% drop in the Hang Seng Mainland Properties Index (.HSMPI). The stock has lost nearly 50% this month alone.
Shares of Country Garden's property management unit, Country Garden Services, have also fallen more than 10%.
The failures of Country Garden, which was once considered a financially sound developer, are adding to concerns in a real estate market that is already facing weak buyer demand. The situation also adds pressure on policymakers, as a growing number of private real estate companies are on the verge of collapsing if they do not receive financial support soon.
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Ruble sinks to 100 per dollar, yet officials feel optimistic
The ruble weakened beyond the psychologically important level of 100 rubles per dollar for the first time since last March.
The currency fell 1.5%, losing for a fifth day in a row, even after Russia's central bank tried to stem the fall by halting domestic foreign currency purchases until the end of 2023. Its exchange rate has weakened 26% this year, the third worst among emerging markets.
But officials seem to be monitoring the situation and made some optimistic statements today.
Andrey Klishas, a senior Russian lawmaker, pointed out that “the exchange rate is not only an economic indicator” but also “has a significant impact on the social rights of our citizens.”
In this light, Maxim Oreshkin, an aide to Russian President Vladimir Putin, hinted that the situation would soon improve.
"Russia needs a strong ruble, since a weak currency complicates the structural transformation of the economy and negatively impacts real incomes of the population,” he said. “The current exchange rate has deviated significantly from fundamental levels, and its normalization is expected in the near future.”
In the meantime, since Russia receives export payments in foreign currency, and exports are now exceeding imports, the weakening of the ruble provides the country's budget with some additional funds.
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The ruble weakened beyond the psychologically important level of 100 rubles per dollar for the first time since last March.
The currency fell 1.5%, losing for a fifth day in a row, even after Russia's central bank tried to stem the fall by halting domestic foreign currency purchases until the end of 2023. Its exchange rate has weakened 26% this year, the third worst among emerging markets.
But officials seem to be monitoring the situation and made some optimistic statements today.
Andrey Klishas, a senior Russian lawmaker, pointed out that “the exchange rate is not only an economic indicator” but also “has a significant impact on the social rights of our citizens.”
In this light, Maxim Oreshkin, an aide to Russian President Vladimir Putin, hinted that the situation would soon improve.
"Russia needs a strong ruble, since a weak currency complicates the structural transformation of the economy and negatively impacts real incomes of the population,” he said. “The current exchange rate has deviated significantly from fundamental levels, and its normalization is expected in the near future.”
In the meantime, since Russia receives export payments in foreign currency, and exports are now exceeding imports, the weakening of the ruble provides the country's budget with some additional funds.
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Singapore could face “structural decline” without migrant workers
Singapore's declining birth rate and aging population require a steady but well-timed influx of migrant workers, says Deputy Prime Minister Lawrence Wong.
“If we are not able to bring in immigrants to top up the population then we are in structural decline, and eventually the population will decline, the workforce will decline and Singapore will decline,” Wong said at the conference in Singapore on Monday.
As a small open economy, Singapore relies on foreign workers to meet its labor needs.
However, immigration rules have tightened in recent years as the government needs to strike a balance between protecting local jobs and ensuring sufficient resources to meet the needs of a growing number of migrants amid slowing economic growth.
The problem of negative population growth has been acute in Asian countries for a long time, which constantly creates a lot of challenges for their economic prospects. The situation is especially critical in Japan, South Korea and Hong Kong.
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Singapore's declining birth rate and aging population require a steady but well-timed influx of migrant workers, says Deputy Prime Minister Lawrence Wong.
“If we are not able to bring in immigrants to top up the population then we are in structural decline, and eventually the population will decline, the workforce will decline and Singapore will decline,” Wong said at the conference in Singapore on Monday.
As a small open economy, Singapore relies on foreign workers to meet its labor needs.
However, immigration rules have tightened in recent years as the government needs to strike a balance between protecting local jobs and ensuring sufficient resources to meet the needs of a growing number of migrants amid slowing economic growth.
The problem of negative population growth has been acute in Asian countries for a long time, which constantly creates a lot of challenges for their economic prospects. The situation is especially critical in Japan, South Korea and Hong Kong.
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Multipolar Market
PayPal launches PYUSD stablecoin PayPal launched a new stablecoin called PayPal USD (PYUSD) on August 7. The US dollar-linked Stablecoin will be issued by Paxos Trust Co. and will be fully backed by dollar deposits, short-term Treasury bills and similar…
Stablecoin is not enough: PayPal goes crypto-crazy
PayPal is launching a new service called Cryptocurrencies Hub. This platform will allow users to hold and conduct transactions with Bitcoin and other cryptocurrencies directly through their PayPal accounts.
The updated terms of use state that users will not only be able to store cryptocurrencies but also buy and sell them, as well as pay for goods and services using these currencies.
There is also the possibility of converting between the new PayPal coin, PYUSD, and other crypto assets. However, there is a nuance: this is a custodial service - you will not be able to keep the cryptocurrency yourself - you will only see a "display" of the amounts PayPal keeping for you.
PayPal will provide access to the Cryptocurrencies Hub selectively, based on the status of the user's balance, the identification information provided and the device from which the user logs in. For example, residents of Hawaii will not be able to create their own Cryptocurrencies Hub yet.
Good for adoption, bad for Satoshi's ideas
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PayPal is launching a new service called Cryptocurrencies Hub. This platform will allow users to hold and conduct transactions with Bitcoin and other cryptocurrencies directly through their PayPal accounts.
The updated terms of use state that users will not only be able to store cryptocurrencies but also buy and sell them, as well as pay for goods and services using these currencies.
There is also the possibility of converting between the new PayPal coin, PYUSD, and other crypto assets. However, there is a nuance: this is a custodial service - you will not be able to keep the cryptocurrency yourself - you will only see a "display" of the amounts PayPal keeping for you.
PayPal will provide access to the Cryptocurrencies Hub selectively, based on the status of the user's balance, the identification information provided and the device from which the user logs in. For example, residents of Hawaii will not be able to create their own Cryptocurrencies Hub yet.
Good for adoption, bad for Satoshi's ideas
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Multipolar Market
Ruble sinks to 100 per dollar, yet officials feel optimistic The ruble weakened beyond the psychologically important level of 100 rubles per dollar for the first time since last March. The currency fell 1.5%, losing for a fifth day in a row, even after Russia's…
Ruble turnes back
MM admins: decide to post news about Russian economy.
Russian economy a few minutes later: hold my vodka, tovarish'.
Russia's central bank announced an emergency meeting on a key rate tomorrow amid falling Ruble.
And, it's like the almighty Elvira Nabiullina, the CB's head, in just a few words forced the currency to reverse it's course.
If European and US news sometimes are clown, then Russians are tumblers. The whole world is a circus.
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MM admins: decide to post news about Russian economy.
Russian economy a few minutes later: hold my vodka, tovarish'.
Russia's central bank announced an emergency meeting on a key rate tomorrow amid falling Ruble.
And, it's like the almighty Elvira Nabiullina, the CB's head, in just a few words forced the currency to reverse it's course.
If European and US news sometimes are clown, then Russians are tumblers. The whole world is a circus.
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Argentina devalues peso by 18%
Argentina to devalue the official peso exchange rate to 350 per dollar, about 18% weaker from Friday’s closing price, a central bank official said Monday.
The central bank will also raise its key interest rate to 118% from the current 97%, the official added.
The changes come after libertarian candidate Javier Milei won a key primary election on Sunday.
Milei advocates abandoning the national currency peso in favor of the dollar and considers it necessary to abolish the Central Bank altogether in order to successfully fight inflation.
And in 2021, the oppositionist claimed that he "would not trade" with China, but only with the "civilized part" of the world, i.e. the West.
He also in favor of loosening restrictions on the purchase of guns, privatizing public companies, charging fees at public hospitals, and cutting pensions.
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Argentina to devalue the official peso exchange rate to 350 per dollar, about 18% weaker from Friday’s closing price, a central bank official said Monday.
The central bank will also raise its key interest rate to 118% from the current 97%, the official added.
The changes come after libertarian candidate Javier Milei won a key primary election on Sunday.
Milei advocates abandoning the national currency peso in favor of the dollar and considers it necessary to abolish the Central Bank altogether in order to successfully fight inflation.
And in 2021, the oppositionist claimed that he "would not trade" with China, but only with the "civilized part" of the world, i.e. the West.
He also in favor of loosening restrictions on the purchase of guns, privatizing public companies, charging fees at public hospitals, and cutting pensions.
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China eases rules and taxes, desperate for foreign investments
Chinese authorities plan to give foreign investors a variety of preferences to support a weakening economy. China's State Council unveiled the measures in a 24-point new ambitious plan.
Beijing intends to simplify visa and residence permit applications for employees of foreign companies. For businesses, it intends to increase tax support and relax rules for data transfer abroad.
China also will seek to encourage foreign companies to set up research and development centers in the country, the document says. The plan should help speed up work on overseas projects in the biopharmaceutical industry and increase testing space for telecommunications services.
The measures come as foreign direct investment (FDI) hit its lowest quarterly level in 25 years and US investment in China has been significantly curbed by US President Joe Biden.
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Chinese authorities plan to give foreign investors a variety of preferences to support a weakening economy. China's State Council unveiled the measures in a 24-point new ambitious plan.
Beijing intends to simplify visa and residence permit applications for employees of foreign companies. For businesses, it intends to increase tax support and relax rules for data transfer abroad.
China also will seek to encourage foreign companies to set up research and development centers in the country, the document says. The plan should help speed up work on overseas projects in the biopharmaceutical industry and increase testing space for telecommunications services.
The measures come as foreign direct investment (FDI) hit its lowest quarterly level in 25 years and US investment in China has been significantly curbed by US President Joe Biden.
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Multipolar Market
Feds drop campaign finance charge against Sam Bankman-Fried Former crypto mogul and head of the failed FTX exchange Sam Bankman-Fried will not be charged with sponsoring the US Democratic Party, federal prosecutors said. Quite a surprise, isn't it? "The…
Campaign finance charges against Bankman-Fried are back on the table
The infamous FTX CEO Sam Bankman-Fried used stolen customer funds to make more than $100 million in campaign contributions ahead of the 2022 US midterm elections, federal prosecutors said Monday in a new indictment filed against him.
The new indictment charges the former billionaire with seven counts of conspiracy and fraud over the collapse of the exchange. He has previously pleaded not guilty.
Amid a boom in the value of cryptocurrencies, Bankman-Fried made $26 billion and became an influential donor to candidates and organizations mostly owned by Democrats.
The US Attorney's Office in Manhattan initially charged him with violating US campaign finance laws, but dropped those charges in late July.
In a letter last week to US District Judge prosecutors indicated they would soon file a new indictment that "will make clear that Mr. Bankman-Fried remains charged with conducting an illegal campaign finance scheme as part of the fraud and money laundering schemes originally charged.”
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The infamous FTX CEO Sam Bankman-Fried used stolen customer funds to make more than $100 million in campaign contributions ahead of the 2022 US midterm elections, federal prosecutors said Monday in a new indictment filed against him.
The new indictment charges the former billionaire with seven counts of conspiracy and fraud over the collapse of the exchange. He has previously pleaded not guilty.
Amid a boom in the value of cryptocurrencies, Bankman-Fried made $26 billion and became an influential donor to candidates and organizations mostly owned by Democrats.
The US Attorney's Office in Manhattan initially charged him with violating US campaign finance laws, but dropped those charges in late July.
In a letter last week to US District Judge prosecutors indicated they would soon file a new indictment that "will make clear that Mr. Bankman-Fried remains charged with conducting an illegal campaign finance scheme as part of the fraud and money laundering schemes originally charged.”
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Russia’s CB raised interest rates to 12% at once
Analysts speculated that the Russian Central Bank would raise the rate to 10% at today's emergency meeting. However, the regulator took a more decisive step and sharply raised the rate to 12%.
But even as it did so, it failed to reverse the ruble's slide. The reason for this is that the CB did not say anything about additional measures to strengthen the ruble apart from the rate hike.
The market was expecting additional steps, such as limitations on capital export. But the Central Bank decided to stop only at the rate increase. Given the continued favorable government loans, ruble appreciation after the rate hike was not very significant. So, the rate increase allows the ruble to strengthen by only 0.15% with some time lag.
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Analysts speculated that the Russian Central Bank would raise the rate to 10% at today's emergency meeting. However, the regulator took a more decisive step and sharply raised the rate to 12%.
But even as it did so, it failed to reverse the ruble's slide. The reason for this is that the CB did not say anything about additional measures to strengthen the ruble apart from the rate hike.
The market was expecting additional steps, such as limitations on capital export. But the Central Bank decided to stop only at the rate increase. Given the continued favorable government loans, ruble appreciation after the rate hike was not very significant. So, the rate increase allows the ruble to strengthen by only 0.15% with some time lag.
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China sacrifices yuan to support struggling economy
The Bank of China unexpectedly cut the rate from 2.65% to 2.50% as desperate measures to support the slowing economy.
The yuan immediately fell 0.5%, to its lowest level since November 2022.
The country is on a fine line - it needs to ease monetary policy to the extent that it helps the economy grow, but does not lead to a fall in the yuan exchange rate due to the sharp divergence of Chinese and US rates.
Analysts say the country needs additional fiscal stimulus and further monetary easing, such as lowering the required reserve ratio for banks.
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The Bank of China unexpectedly cut the rate from 2.65% to 2.50% as desperate measures to support the slowing economy.
The yuan immediately fell 0.5%, to its lowest level since November 2022.
The country is on a fine line - it needs to ease monetary policy to the extent that it helps the economy grow, but does not lead to a fall in the yuan exchange rate due to the sharp divergence of Chinese and US rates.
Analysts say the country needs additional fiscal stimulus and further monetary easing, such as lowering the required reserve ratio for banks.
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EU launches first bitcoin ETF
The first bitcoin exchange-traded fund (ETF) has been launched in Europe today. The launch is the work of London-based Jacobi Asset Management, which announced today that it has listed the product called Jacobi FT Wilshire Bitcoin on Euronext Amsterdam exchange.
Having received authorization from the Guernsey Financial Services Commission (GFSC) in October 2021, the company had originally planned to launch its bitcoin ETF product last year. However, the launch was delayed as the timing was deemed inappropriate due to the collapse of the Terra ecosystem and the bankruptcy of crypto exchange FTX.
So now it has finally been launched and is traded under the ticker BCOIN.
“This fund has been designed to give institutional investors a simple, secure, and transparent access to Bitcoin whilst addressing their sustainability requirements," says Jacobi CEO Martin Bednall. "We believe this ETF launch will be the catalyst for institutional adoption of digital assets."
The management fee is 1.5% per annum. At the time the news was released, more than $1 million had already been contributed to the Jacobi FT Wilshire Bitcoin ETF.
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The first bitcoin exchange-traded fund (ETF) has been launched in Europe today. The launch is the work of London-based Jacobi Asset Management, which announced today that it has listed the product called Jacobi FT Wilshire Bitcoin on Euronext Amsterdam exchange.
Having received authorization from the Guernsey Financial Services Commission (GFSC) in October 2021, the company had originally planned to launch its bitcoin ETF product last year. However, the launch was delayed as the timing was deemed inappropriate due to the collapse of the Terra ecosystem and the bankruptcy of crypto exchange FTX.
So now it has finally been launched and is traded under the ticker BCOIN.
“This fund has been designed to give institutional investors a simple, secure, and transparent access to Bitcoin whilst addressing their sustainability requirements," says Jacobi CEO Martin Bednall. "We believe this ETF launch will be the catalyst for institutional adoption of digital assets."
The management fee is 1.5% per annum. At the time the news was released, more than $1 million had already been contributed to the Jacobi FT Wilshire Bitcoin ETF.
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How Russia sells oil over the G7 cap
Russia uses to its advantage a loophole in the oil cap when higher oil transportation costs allow it to make more money, FT reported.
Russian producers have been selling their crude oil to India at prices below the G7 price cap of $60 per barrel. However, since shipping costs are not included in this price ceiling, Russia has been overcharging for freight costs and getting more revenue from oil trade.
The findings suggest that the overcharging for shipping costs, along with the fees for Russia-linked tankers, may have boosted Russia’s oil trade revenues by a combined $1.2 billion in May, June, and July.
At the same time an International Energy Agency's (IEA) report revealed that Russia's export earnings, which totaled $15.3 billion in July, were up $2.5 billion from June's figures.
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Russia uses to its advantage a loophole in the oil cap when higher oil transportation costs allow it to make more money, FT reported.
Russian producers have been selling their crude oil to India at prices below the G7 price cap of $60 per barrel. However, since shipping costs are not included in this price ceiling, Russia has been overcharging for freight costs and getting more revenue from oil trade.
The findings suggest that the overcharging for shipping costs, along with the fees for Russia-linked tankers, may have boosted Russia’s oil trade revenues by a combined $1.2 billion in May, June, and July.
At the same time an International Energy Agency's (IEA) report revealed that Russia's export earnings, which totaled $15.3 billion in July, were up $2.5 billion from June's figures.
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Ukraine may cede territory to Russia to gain NATO membership, says alliance's top official
NATO's director private office of the secretary general Stian Jenssen suggested that Ukraine could gain NATO membership in exchange for ceding some territory to Russia, and that this could be part of ending the Ukrainian conflict. His words are quoted by the Norwegian media VG.
He also said that it should be up to Ukraine to decide when and on what terms they want to negotiate.
Earlier we reported on twitter that Olaf Scholz also emphasized the importance of diplomatic efforts to resolve the conflict.
Now that's new, that seems awfully like common sense
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NATO's director private office of the secretary general Stian Jenssen suggested that Ukraine could gain NATO membership in exchange for ceding some territory to Russia, and that this could be part of ending the Ukrainian conflict. His words are quoted by the Norwegian media VG.
He also said that it should be up to Ukraine to decide when and on what terms they want to negotiate.
Earlier we reported on twitter that Olaf Scholz also emphasized the importance of diplomatic efforts to resolve the conflict.
Now that's new, that seems awfully like common sense
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🇦🇪🛢🇮🇳 UAE and India made oil settlement in the local currencies
Abu Dhabi National Oil Company and the Indian oil and gas company, Indian Oil Corporation Limited, have completed the first crude oil sale under the local currency payment system. This was announced by the Indian Embassy in the UAE.
The transaction involved the sale of approximately 1 million barrels of crude oil. Both Indian rupees and UAE dirhams were used for the transaction.
This is India's first-ever local currency settlement with the UAE. Such transactions are expected to reduce transactional costs and the time required for transfers. The parties also hope that such settlements will increase the role of local currencies.
The Indian embassy also noted that, under the deal, traders can choose the currency of each payment by mutual agreement.
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Abu Dhabi National Oil Company and the Indian oil and gas company, Indian Oil Corporation Limited, have completed the first crude oil sale under the local currency payment system. This was announced by the Indian Embassy in the UAE.
The transaction involved the sale of approximately 1 million barrels of crude oil. Both Indian rupees and UAE dirhams were used for the transaction.
This is India's first-ever local currency settlement with the UAE. Such transactions are expected to reduce transactional costs and the time required for transfers. The parties also hope that such settlements will increase the role of local currencies.
The Indian embassy also noted that, under the deal, traders can choose the currency of each payment by mutual agreement.
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Short seller Hindenburg accused Freedom Holding of helping to evade sanctions
Short seller Hindenburg Research announced Tuesday that its latest target was Kazakhstan-based Freedom Holding.
Freedom's units are involved in retail securities brokerage, market making and investment banking services. According to the SEC filing, it also owns a bank and two insurance firms operating in Kazakhstan.
Freedom Holding was initially based in Moscow and shifted to Kazakhstan last year, transferring its Russian business to an employee for $140 million, but its CEO Timur Turlov still secretly controls the Russian business, Hindenburg alleges.
Hindenburg said its research into the company had revealed "hallmark signs of fake revenue" and evidence it "brazenly skirts sanctions".
Freedom was also displaying signs of market manipulation in both its investments and its own stock, Hindenburg added.
The short seller said Freedom had "openly admitted" in a disclosure last month to providing services to individuals sanctioned by OFAC (Office of Foreign Assets Control), the EU and the UK.
The report sent shares of Nasdaq-listed FRHC tanking nearly 15% to $64.7 in premarket trading. The stock has now recovered some of its losses and is trading at just above $73.
Freedom Holdings has already called the investigation speculation and "a set of unsubstantiated facts."
Hindenburg Research has been at the forefront of short-seller attacks this year, which have rocked several high-profile companies. Its campaigns led to a rout in shares of Indian conglomerate Adani Group's companies and investment firm Icahn Enterprises.
Hindenburg's investigations usually end with either a plunge in the victim company's stock or its complete collapse.
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Short seller Hindenburg Research announced Tuesday that its latest target was Kazakhstan-based Freedom Holding.
Freedom's units are involved in retail securities brokerage, market making and investment banking services. According to the SEC filing, it also owns a bank and two insurance firms operating in Kazakhstan.
Freedom Holding was initially based in Moscow and shifted to Kazakhstan last year, transferring its Russian business to an employee for $140 million, but its CEO Timur Turlov still secretly controls the Russian business, Hindenburg alleges.
Hindenburg said its research into the company had revealed "hallmark signs of fake revenue" and evidence it "brazenly skirts sanctions".
Freedom was also displaying signs of market manipulation in both its investments and its own stock, Hindenburg added.
The short seller said Freedom had "openly admitted" in a disclosure last month to providing services to individuals sanctioned by OFAC (Office of Foreign Assets Control), the EU and the UK.
The report sent shares of Nasdaq-listed FRHC tanking nearly 15% to $64.7 in premarket trading. The stock has now recovered some of its losses and is trading at just above $73.
Freedom Holdings has already called the investigation speculation and "a set of unsubstantiated facts."
Hindenburg Research has been at the forefront of short-seller attacks this year, which have rocked several high-profile companies. Its campaigns led to a rout in shares of Indian conglomerate Adani Group's companies and investment firm Icahn Enterprises.
Hindenburg's investigations usually end with either a plunge in the victim company's stock or its complete collapse.
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Multipolar Market
EU launches first bitcoin ETF The first bitcoin exchange-traded fund (ETF) has been launched in Europe today. The launch is the work of London-based Jacobi Asset Management, which announced today that it has listed the product called Jacobi FT Wilshire Bitcoin…
How long can the SEC delay approval of Bitcoin ETFs?
The US Securities and Exchange Commission (SEC) may be getting closer to giving the green light to a spot cryptocurrency exchange-traded fund (ETF) after several years of reviewing applications.
And yet, under SEC guidelines, the federal regulator has the authority to delay ETF applications for up to 240 days — by opening them to public comment or otherwise — from the first filing in the Federal Register.
At the time of publication, major asset management firms with applications under review by the SEC include BlackRock, ARK Invest, Bitwise Asset Management, and others.
ARK Invest, led by Cathie Wood, filed to list its ARK 21Shares spot Bitcoin ETF in May 2023 and received a new delay from the SEC on Aug. 11, pushing the deadline back another 21 days.
Thus, with the maximum 240-day extension window available to the SEC, the final deadline for ARK’s Bitcoin ETF is in January 2024, while approval or disapproval of all the other firms’ offerings could come as late as March 2024.
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The US Securities and Exchange Commission (SEC) may be getting closer to giving the green light to a spot cryptocurrency exchange-traded fund (ETF) after several years of reviewing applications.
And yet, under SEC guidelines, the federal regulator has the authority to delay ETF applications for up to 240 days — by opening them to public comment or otherwise — from the first filing in the Federal Register.
At the time of publication, major asset management firms with applications under review by the SEC include BlackRock, ARK Invest, Bitwise Asset Management, and others.
ARK Invest, led by Cathie Wood, filed to list its ARK 21Shares spot Bitcoin ETF in May 2023 and received a new delay from the SEC on Aug. 11, pushing the deadline back another 21 days.
Thus, with the maximum 240-day extension window available to the SEC, the final deadline for ARK’s Bitcoin ETF is in January 2024, while approval or disapproval of all the other firms’ offerings could come as late as March 2024.
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Indian diamond industry shattered by US threats
India's exports of polished diamonds fell 39% to $1,174 billion in July, according to the Gem & Jewellery Export Promotion Council of India, GJEPC. Rough imports also fell 43% to $1.1 billion.
Among the reasons for such a sharp reductions is the recent US threats against Indian manufacturers over the use of Russian raw materials. In particular, the US authorities have said that they might impose a ban on imports of Indian polished diamonds.
However, local jewelry manufacturers are already suffering - because of the sanctions, they have to work through intermediaries, and the shortage of rough diamonds even forces them to stop production.
About 300,000 workers in Surat, the main diamond processing center, were sent on a 20-day leave without pay. Diamond processing units have reduced work from two to one shift, and 15,000-20,000 workers have lost their jobs. And at least eight diamond workers have died by suicide because of it, The Print says.
India is one of the main buyers of rough diamonds, primarily from Russia, and is the world's largest center of polished diamond production, with 95% of the world's polished diamonds being made in this country.
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India's exports of polished diamonds fell 39% to $1,174 billion in July, according to the Gem & Jewellery Export Promotion Council of India, GJEPC. Rough imports also fell 43% to $1.1 billion.
Among the reasons for such a sharp reductions is the recent US threats against Indian manufacturers over the use of Russian raw materials. In particular, the US authorities have said that they might impose a ban on imports of Indian polished diamonds.
However, local jewelry manufacturers are already suffering - because of the sanctions, they have to work through intermediaries, and the shortage of rough diamonds even forces them to stop production.
About 300,000 workers in Surat, the main diamond processing center, were sent on a 20-day leave without pay. Diamond processing units have reduced work from two to one shift, and 15,000-20,000 workers have lost their jobs. And at least eight diamond workers have died by suicide because of it, The Print says.
India is one of the main buyers of rough diamonds, primarily from Russia, and is the world's largest center of polished diamond production, with 95% of the world's polished diamonds being made in this country.
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Intel to drop $5.4 billion deal with Tower without China approval
Intel will back out of its $5.4 billion acquisition of Israeli contract chip maker Tower Semiconductor after its contract expires later on Tuesday without regulatory approval in China, Reuters reported, citing people familiar with the matter.
Intel, which signed a deal to buy Tower in February 2022, had been going through acquisition approvals with antitrust authorities in various countries but stalled in China.
Intel does not plan to negotiate a contract extension and will instead pay Tower a $353 million break-up fee to walk away, the sources added.
Even if the companies had renewed the contract and waited for the review to be completed, it is unclear whether Chinese regulators would have approved the deal given the current tensions between Washington and Beijing.
A similar situation occurred last year. Chemical company DuPont De Nemours then pulled out of a $5.2 billion deal to buy electronics materials maker Rogers after delays in securing approval from Chinese regulators.
Looks like the US-China trade war is now expanding to corporate deal-making
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Intel will back out of its $5.4 billion acquisition of Israeli contract chip maker Tower Semiconductor after its contract expires later on Tuesday without regulatory approval in China, Reuters reported, citing people familiar with the matter.
Intel, which signed a deal to buy Tower in February 2022, had been going through acquisition approvals with antitrust authorities in various countries but stalled in China.
Intel does not plan to negotiate a contract extension and will instead pay Tower a $353 million break-up fee to walk away, the sources added.
Even if the companies had renewed the contract and waited for the review to be completed, it is unclear whether Chinese regulators would have approved the deal given the current tensions between Washington and Beijing.
A similar situation occurred last year. Chemical company DuPont De Nemours then pulled out of a $5.2 billion deal to buy electronics materials maker Rogers after delays in securing approval from Chinese regulators.
Looks like the US-China trade war is now expanding to corporate deal-making
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