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Emerging Markets Daily - October 7
Chinese Tech Co's Biggest 2021 IPO Losers, US Batters Huawei, Iraq Seeks Major Crude Boost, Biden-Xi Virtual Summit Announced, Peru Leftist PM Sacked
The Top 5 Stories Shaping Emerging Markets from Global Media - October 7
Chinese Tech Co’s Among Biggest IPO Losers for 2021
“The three biggest money losers among large listings in 2021 are all Chinese, thanks to the country’s widening tech crackdown.”
“Investors who bought Kuaishou Technology after the TikTok rival went public in Hong Kong have notched the widest peak-to-trough slump among global initial public offerings this year.”
“The Chinese video app is down more than 80% since it hit a Feb. 17 peak less than two weeks after it raised $5.4 billion in Hong Kong’s largest float in 2021. That is the largest plunge from a high among the 36 companies that raised more than $1.5 billion worldwide in 2021 from IPOs, Bloomberg data show.”
“Kuaishou’s slump illustrates the fizzling appetite for offshore-listed China shares since Beijing began clamping down on a wide swath of private firms. The two other top money-losers are also Chinese: New York-listed DiDi Global Inc., which was hit by a data security probe in July, has fallen 55% while video-app firm Bilibili Inc. is down by half from peaks touched this year.”
“Meanwhile, Robinhood Markets Inc., the popular trading app that listed just over two months ago, ranks seventh, having tumbled 40% from its August peak.” Filipe Pacheco reports.
US Set Out to Hobble Huawei; It Worked
Wall Street Journal
“When she was detained in Canada nearly three years ago, Meng Wanzhou was crisscrossing the globe as finance chief of all-conquering Chinese tech giant Huawei Technologies Co.”
“She arrived back home in late September to a very different company, one forced into retreat by American sanctions that have left it fighting for its future.”
“Huawei is in the midst of a deep slump. As recently as the start of last year, the world’s largest maker of telecommunications equipment was increasing market share in 5G rollouts and surging toward the top of the global smartphone market, shrugging off a year of export restrictions imposed by the Trump administration.”
“Now, its revenue has dropped for three straight quarters. The company has fallen to No. 9 in smartphone sales, with buyers evaporating from Europe to China. Its global telecom market share is shrinking as it loses out in key markets, a result of U.S. pressure designed to halt the spread of Huawei’s 5G technology plus concerns by some customers over its ability to remain technologically competitive.” Dan Strumpf reports.
Iraq Seeks Crude Output Boost to 8 Million B/D By 2027
“Iraq, Opec’s second-largest producer, is in talks with the international oil majors operating in the country to help boost its crude production capacity to about 8 million barrels per day, the country’s oil minister said on Wednesday.”
“Ihsan Ismail also said Baghdad considered oil trading between $75-$80 per barrel range as a ‘fair price for both producers and consumers’. Eighty-five per cent of Iraq's revenue is dependent on hydrocarbons and it currently has a production capacity of 5 million bpd.”
“‘The country has three oil output scenarios: high, medium and low, and we agreed in Iraq to go with the medium scenario, which speaks about 8 million bpd’, Mr Ismail told an online panel at the Energy Intelligence Forum.”
“Iraq is engaged in discussions with international oil companies including Shell, BP, Exxon Mobil, Lukoil and Italy's Eni that operate in the country to help it boost its crude output, he said.” Sarmad Khan reports.
Biden-Xi Virtual Summit By End of the Year
New York Times
“President Biden will meet President Xi Jinping of China for their first summit by the end of this year — but virtually, not in person, a concession to a pandemic era and a recognition of the dangers of going an entire year into a new presidential term without a formal meeting between the leaders of the world’s largest and second-largest economies.”
“The announcement on Wednesday from American officials came after a six-hour meeting between Jake Sullivan, the national security adviser, and his closest Chinese counterpart, Yang Jiechi, Beijing’s top diplomat.”
“American officials had sought an in-person meeting. But Mr. Xi has not left Chinese territory for such meetings in nearly two years, and will not be at the Group of 20 summit in Rome this month, which the Chinese leader usually attends. Mr. Sullivan’s meeting came after a Sept. 9 telephone call between Mr. Biden and Mr. Xi in which the two leaders agreed that there was too little communication between their governments.”
“But by the time Mr. Sullivan arrived in Zurich for Wednesday’s meeting, China’s air force had been entering Taiwan’s air defense identification zone, a clear warning to the island. And the United States had announced a new deal to provide nuclear-powered submarines to Australia, capable of popping up anywhere along the Chinese coast or running through disputed areas of the South China Sea.” David Sanger reports.
Peru President Sacks Far-Left Prime Minister
“Peru's President Pedro Castillo Terrones has suffered his first ministerial reshuffle Wednesday following the resignation of Prime Minister Guido Bellido.”
“Just hours after announcing Peru's Second Agrarian Reform, Castillo needed to appear before Congress to announce that ‘today we accept the resignation of the president of the Council of Ministers Guido Bellido Ugarte, whom I thank for the services rendered.’”
“Castillo said he had decided to ‘make some decisions in favour of governability’ and insisted on his plea to economic, political and social sectors for ‘broader unity to achieve common goals’, such as the reactivation of the Peruvian economy. ‘It's a time to put Peru above all ideology and party positions.’”
“Bellido made it clear that he had left the government at Castillo's request. ‘We don't know what the reasons were. Today the president asked me to submit my resignation letter, and I immediately complied with that request.’” MercoPress reports.
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