PHOTO PHOTO: Huawei logo displayed at IFA consumer technology exhibition in Berlin, Germany, September 6, 2019. REUTERS / Hannibal Hanschke
BERLIN (Reuters) – Huawei [HWT.UL] Top managers in Germany have appealed to the government not to stop building the 5G cellular network, Der Spiegel said on Friday, after Britain decided to clean Chinese company equipment from its network for security reasons.
Chancellor Angela Merkel’s government has postponed the decision on tougher certification rules until after the summer holidays, amid pressure from some lawmakers sympathizing with the US call to immediately ban Huawei.
“The government’s approach in establishing the same and strong security criteria for all is the right way to ensure a secure network,” Huawei’s representative in Germany, David Wang, told the weekly news magazine.
Three German cellular operators are all Huawei customers, who have been present in the country for 15 years. No one found evidence to support US allegations that the equipment was not safe, Wang added.
Britain this month ordered Huawei equipment to be removed from the 5G network by the end of 2027, while France had told operators to revoke Huawei’s 5G equipment by 2028 without announcing a public ban, sources said.
Deutsche Telekom, leader of the German market, began building 5G networks under existing agreements and only signed contracts with Chinese providers last month. The 5G network now covers almost half the population.
Analysts and industry sources say Deutsche Telekom, which opposes Huawei’s ban, is trying to prevent such results by launching most of the 5G network before political decisions are taken.
Spanish-controlled Telefonica Deutschland said this week it had signed a 5G reserve contract with another telecommunications vendor to cover the risk that Huawei was finally banned from the German market.
(This story corrects the context in paragraph 6 of the 5G contract between Deutsche Telekom and Huawei)
Reporting by Douglas Busvine; Editing by Edmund Blair and David Evans
SYDNEY (Reuters) – The number of Hong Kong residents applying to study at Australian universities has reached a three-year high in mid-2020, according to government data, amid fears new security laws are ushering in a more authoritarian era for China’s free era. city.
The increase in higher education applications from Hong Kong residents in the first six months of this year contrasts with the sharp decline in the number of foreign students who register to study in Australia during the coronavirus pandemic.
Data released late Thursday captured applications by Hong Kong citizens ahead of the adoption of a new security law at the end of June 30 which has exacerbated fears of freedom at the financial center.
There is an increase in applications of more than 16% of Hong Kong residents in the first six months of 2020 compared to the same period last year.
Australia is the third most popular destination for overseas students after the United States and the United Kingdom, according to the Australian International Education Association.
Australian universities expect more students from Hong Kong to apply for a study visa after the government earlier this month said Hong Kong students, graduates and workers on temporary visas would have the opportunity to stay and work for five additional years and submit applications permanent residence permit after that time.
“We have seen a sharp increase in demand from Hong Kong citizens in Australia and residents in Hong Kong after the government announcement,” Stirling’s global migration director Henry Simon De Vere told Reuters.
Education sector A $ 37 billion ($ 26.54 billion) Australia, the country’s second largest service export after tourism, has taken a huge economic blow from the pandemic with universities warning they will lose A $ 16 billion in revenue by 2023.
Much of the anticipated loss is due to declining enrollments from mainland Chinese students, which have fallen to the lowest levels recorded since 2012-13 in the first half of this year, government data show.
Australia has also effectively closed its international borders, allowing only a small number of passengers to enter every day. The university is looking for a scheme to allow foreign students to travel through other bubble countries.
Reporting by Jonathan Barrett and Renju Jose; Editing by Michael Perry
LONDON (Reuters) – The Chinese ambassador to London frankly warned Britain on Thursday that they have no future if they try to separate themselves from the communist state.
“It’s hard to imagine a ‘Global Britain’ that bypasses or excludes China, separating from China means separating from opportunities, separating from growth and separating from the future,” Chinese ambassador to London Liu Xiaoming told reporters.
He said Britain would “pay the price” if it wanted to treat China as a hostile country.
SYDNEY (Reuters) – Just a few months after the rains damaged a three-year drought that paralyzed Australia, wheat fields sprung up, raised the wheat harvest forecast and revived the agricultural sector that was hit through roaring tractor sales and increased lending.
FILE PHOTOS: Wheat is growing on the farm at sunset in the town of Forbes, Australia’s south-western central New South Wales, Australia, September 27, 2016. REUTERS / Jason Reed / Photo file
Mid-season crops in some of the country’s main grain-producing regions in the east are as fertile as those recalled by some industrial veterans, representing one of the few bright spots in the economy of a pandemic-affected country.
“I moved here 30 years ago, and I’ve never seen it this good. Extraordinary. “It’s wheat, wheat, everywhere as far as your eyes can see,” tractor dealer Roger Moylan said this week from Quirindi, the main grain growing area in the state of New South Wales (NSW).
Moylan, from North West Farm Machinery, said sales of tractors and augers, which are used to move grain from trucks to silos, are booming.
“If auger sales pass through the roof, that tells you one thing – there will be wheat everywhere,” he said.
Australia was one of four global wheat exporters before the incessant drought began to cut production.
The country’s main commodity forecaster recently raised its forecast for wheat production for 2020-21 to 26.7 million tons, more than 75% above the previous year’s level and the highest since Australia’s record of 35.13 million tons in 2016-17.
Australia’s 10-year average is only more than 24 million tons.
(GRAPHICS – Australians stare at the ‘extraordinary’ wheat crop after the rains that end in drought: here)
Production this year could rise to 30 million tons if export-focused Western Australia receives drenched in the next two months, said a Singapore-based trader at an international trading company that supplies Australian wheat to Asia.
Since most farmers will not start harvesting until the earliest October, there is still uncertainty over crop production, especially in Western Australia which currently does not have a high level of NSW soil moisture.
Western Australia and NSW are the two best wheat producing countries in the country.
Lyndon Mickel, who owns a 6,000 hectare farm near Esperance in Western Australia’s southern wheat belt, told Reuters that the recent rains had been uplifting after the start of a dry season.
“We sat at the tip of the knife,” he said.
“If we can get a decent decline across the states next month we can get a decent result.”
(GRAPHIC – Estimated level of soil moisture and wheat production in Australia: here)
Wv1 benchmark wheat prices earlier this year reached 18-month highs amid concerns about global supply. While that fear has subsided, prices continue to linger near these highs.
Australian wheat exports this season are estimated to nearly double from last year, the Australian Bureau of Agriculture and Economics and Resources and Agricultural Sciences said in June.
But deteriorating diplomatic relations between Canberra and Beijing have also created a stumbling block for some grain farmers, after China effectively banned imports of Australian wheat in May at an 80.5% tariff.
China accounts for more than a fifth of agricultural exports from Australia, taking almost double its production as the second largest destination, Japan.
“Australia may need to diversify its trading partners especially into the Southeast Asian economy, where the population is growing rapidly,” wrote Natixis economist Alicia Garcia-Harrero in a note.
AUSTRALIA, SMALL CITY
The long-awaited economic activity emerging in many small towns is a boon to the rural sector which is still recovering from one of Australia’s worst drought crops and forcing some communities to transport drinking water in the east of the country.
Grant Cairns, head of agribusiness at the Commonwealth Bank of Australia (CBA.AX), told Reuters demand for equipment financing jumped 27% in June from last year while demand for land purchases was also strong.
“Our customers have been trying to sow crops and replenish the animals they must have because of the drought,” Cairns said.
NSW farmers have significantly expanded the size of the area they are sowing to push the total winter crop area of the country above the long-term average, the government plant report said.
PHOTO FILE: Water flows over Kentucky Creek Dam following rain near the drought-affected city of Uralla, New South Wales, Australia, February 19, 2020. REUTERS / Loren Elliott / Photo File
Tractor sales broke the 2,000 mark in June, according to the Australian Tractors and Engine Association, the first time since 1981.
“This shows how resilient and how quickly farmers returned to the saddles and started buying equipment,” said the association’s executive director, Gary Northover.
“Many dealers even talk about increasing employment – not many industries do that in a pandemic.”
Reporting by Jonathan Barrett and Swati Pandey; additional reporting by Colin Packham and Naveen Thukral; Editing by Raju Gopalakrishnan
LONDON, July 27 (Reuters) – The benchmark 10-year German bond yield slumped Monday as a sign that jitters in world markets over rising US / China tensions pushed investors into safe haven assets.
China took over the place of the US consulate in the southwestern city of Chengdu on Monday, after ordering the facility to be vacated in retaliation for last week’s dismissal from its consulate in Houston, Texas.
Worsening relations between the two biggest economies in the world pushed safe havens such as gold and government bonds, allowing German debt to recover from price losses on Friday triggered by stronger-than-expected purchasing manager data (PMI).
Yields on German 10-year bonds were last down about 1.5 basis points at -0.456%, after rising 4 bps on Friday.
“Risk assets are struggling … while for the Bunds the textbook reaction to the PMI combined with another failed test of the -0.50% level leaves 10-year results in the middle of the range,” said Commerzbank pricing strategist Michael Leister.
Italian bond yields are slightly lower, with sentiment towards the periphery supported by increasing confidence that aggressive fiscal and monetary stimulus in the euro area will help dampen its economy from coronavirus attacks.
Yields on Italian 10-year bonds dipped to 1.06%, holding close to the lowest level of 4-1 / 2 months last week. The gap over the 10-year benchmark German Bund yields briefly narrowed to around 148 bps, the most stringent in five months.
European Union leaders last week reached an agreement on a 750 billion euro ($ 878 billion) COVID-19 recovery fund, agreeing to raise billions of euros on the capital market on behalf of all 27 countries, in an act of unprecedented solidarity.
“We think that (the spread of Italian / German bond yields) can tighten 15-20 bps from here, the amount becomes less important than the direction,” said Jorge Garayo, senior level strategist at Societe Generale. “This recovery fund is important because it marks a very important step towards something that was previously taboo – fiscal transfers.”
$ 1 = 0.8542 euros Reporting by Dhara Ranasinghe Editing by David Holmes
* Australia witnessed the biggest daily surge in virus deaths over the weekend
* Lynas Corp jumped 12% based on contracts with the Pentagon
* Gold shares rise as gold gains due to US-Chinese tensions
With an arpit
27 July (Reuters) – Australian stocks edged higher on Monday as gold shares rose as rising Sino-US tensions and positive comments from central bank officials allayed concerns about the economic downturn from the second wave of corona virus infection.
A senior Reserve Bank of Australia said he was ready to buy government bonds to support the economy affected by the country’s virus if market conditions deteriorated significantly.
Australia recorded the biggest jump in COVID-19 deaths on Sunday when a second wave of infections spread throughout Victoria, the most populous country next to New South Wales.
The S & P / ASX 200 index was up 0.2% at 6,037.4, at 0105 GMT. The benchmark closed 1.16% lower on Friday.
However, broader sentiment was subdued as a diplomatic upheaval between the two biggest economies which heated up after Beijing ordered the United States to close its consulate in Chengdu last weekend. The move came in direct response to Washington’s closure of the Chinese consulate in Houston.
Gold stocks posted gains as gold prices were set to hit record highs on solid safe-haven demand amid rising Sino-US tensions, helping metals and mining sub-indices trade in positive territory.
AngloGold Ashanti shares registered in Australia rose by 8.4%, while Newcrest Mining added 2.8%.
Lynas Corp jumped 12% after rare earths miners said it signed a contract with the US Department of Defense to begin initial design work at a separation facility in Texas.
Woodside Petroleum and Santos led the decline in the energy index, which dropped 1.5%.
The financial sector rose 0.4% lower, with Insurance Australia Group extending losses from last week after recording a 70% decrease in cash income for 2020.
New Zealand’s S & P / NZX 50 benchmark index rose 0.1% lower to 11,620.79.
Local Australian shares and the New Zealand Banking Group fell 0.6%, while Milk fell 1.1%.
Reporting by Arpit Nayak in Bengaluru, Editing by Sherry Jacob-Phillips
BEIJING (Reuters) – China’s soybean imports in June from Brazil’s main supplier surged to record highs, according to customs data released on Sunday, driven by increased soybean demand as a herd of Chinese pigs recovered after a deadly outbreak of African swine fever.
PHOTO FILE: Imported soybeans are transported at the port in Nantong, Jiangsu province, China August 6, 2018. REUTERS / Stringer / Photo File
The world’s top soybean buyers brought in 10.51 million tons of oil seeds from the South American country in June, up 91% from 5.5 million tons a year earlier, data from the Customs Administration General showed. June’s figure also rose 18.6% from May’s imports from Brazil at 8.86 million tons.
China’s overall soybean imports in June were a record 11.16 million tons because Chinese processors also made most of Brazil’s prices lower because better weather facilitated exports.
China brought 267,553 tons of soybeans from the United States in June, down 56.5% from 614,805 tons in the previous year. Imports fell 45.6% from 491,697 tons in May.
China has increased purchases of US agricultural products including soybeans, and will need to increase purchases dramatically to fulfill its promises under a phase 1 trade agreement signed by both parties in January.
Some Chinese destroyers in the south are struggling with glaring supplies due to the arrival of seeds, while heavy rains and flooding in recent weeks have held back demand from the animal husbandry sector.
Destroying crops in the north has improved thanks to requests from recovered pig herds, according to importers.
Inventories are expected to remain high in the coming months because shipments from Brazil remain large.
China’s weekly national soybean inventory reached 7.39 million tons on July 21, the highest since November 2018, and more than double the record low at the end of March, when soybean arrivals from Brazil fell after bad weather slowed exports.
National soymeal stock also rose to more than 1 million tons earlier this month, up from a record low of 139,000 tons in April.
Reporting by Hallie Gu, Pei Li and Dominique Patton, Writing by Shivani Singh; Editing by William Mallard
MILAN (Reuters) – TCI Fund Management, an investor in the Italian infrastructure group Atlantia (ATL.MI), accusing Rome of being an “illegal takeover” of the Atlantia Autostrade highway unit per l’Italia.
FILE PHOTOS: Atlantia Group logo seen outside their headquarters in Rome, Italy 31 August 2018. REUTERS / Alessandro Bianchi
In a letter sent to the Italian Ministry of Finance on July 20 and seen by Reuters, activist investors said the government had violated the principles of legal certainty and proportionality in its handling.
The letter came after the government ordered Atlantia to sell its stake in Autostrade, surrendering control to state lender Cassa Depositi e Prestiti and allied investors after the collapse of the 2018 toll road bridge operated in the northern city of Genoa.
After the bridge disaster, which claimed 43 lives, the government repeatedly threatened Atlantia that it would revoke the favorable Autostrade toll road concession towards the end of 2038.
“Atlantia was forced to choose between selling Autostrade shares to Cassa Depositi e Prestiti (CDP) and other investors or withdrawing unlawful concessions, which would result in the need for lengthy and uncertain litigation to oppose this move,” TCI head of chief Christopher Hohn said in a letter. that.
This requires that unit sales be carried out “transparently, in accordance with market standards” and calls for market-oriented corporate governance at Autostrade which ensures efficient oversight of company management.
Hohn also said the government must act quickly to restore market confidence in the country’s legal system.
“Any action that results in an illegal de facto takeover or … violation of EU principles will in any case be challenged before governmental and judicial bodies, including the European Commission and European Courts,” he said.
According to a report published earlier Thursday in the Italian daily La Repubblica, TCI asked the government to launch a competitive auction to sell Autostrade or, as an alternative, to bring it up and register it to create conditions for Atlantia to sell controlling shares on the toll road. units to CDP at “reasonable” prices.
An initial agreement reached last week between Atlantia and the government will be ratified by the end of July, sources told Reuters.
Reporting by Francesca Landini; editing by James Mackenzie and Philippa Fletcher
KYIV (Reuters) – Tourists from Australia, New Zealand and several Arab countries will no longer need visas to visit Ukraine from August 1, according to a decree signed by President Volodymyr Zelenskiy and published on his website.
In June, Zelenskiy said Ukraine was considering canceling visa requirements for tourists from several countries, including China, to attract more visitors once the lockdown was put in place due to the coronavirus pandemic easing.
The new visa-free regime will take effect if tourist visits in Ukraine do not exceed 90 days.
Last year, Ukraine introduced an electronic visa for citizens from 52 countries, including China and Australia. A single 30-day visa costs $ 85. European Union citizens can enter for short trips without a visa.
Reporting by Pavel Polityuk; Editing by Alex Richardson
A miner holds a lump of iron ore in a mine located in the Pilbara region, Western Australia, 2 December 2013. REUTERS / David Gray
HONG KONG (Reuters Breakingviews) – Australia and China face each other despite diplomatic tensions. Supply disruptions in Brazil and weak global demand have made the two trading partners more interdependent with each other, which makes BHP miners and Rio Tinto receive Beijing infrastructure stimulus.
BHP, the world’s biggest miner, said on Tuesday that iron ore production, the main ingredient in steel making, rose 11% in the three months ended June from the previous quarter. That shows demand from the People’s Republic, BHP’s main customer, is increasing rapidly as Beijing tries to build its way out of recession. The $ 127 billion company said if China could avoid the second Covid-19 wave, annual steel production in the country would rise this year, while steel production around the world would “contract by double-digit percentages”.
His colleague, Rio, said something similar last week. As the world’s top steelmaker, China buys about three-quarters of iron ore shipments worldwide, according to Jefferies, with the majority coming from Down Under. It preserves minerals, not tourism or education, in the Sino-Australian trade center. Last year, China imported around 665 million tons from Australia, equivalent to nearly two-thirds of total iron ore imports, according to the S&P Global Market Intelligence. Official figures show that it has generated revenues of A $ 79 billion ($ 55.6 billion) for Australian exporters.
Co-dependency persists even when diplomatic relations between Canberra and Beijing explore new lows. Beijing targets Australian barley products and warns citizens not to travel or study in the country. Australia, for its part, only suspended the extradition treaty with Hong Kong after Beijing cracked down on the former British colony.
But Vale Brazil, another major mineral exporter, is still recovering from last year’s tailings dam disaster and a worsening pandemic. That makes BHP and Rio increasingly irreplaceable. Beijing’s efforts to reduce its dependence on Australia by investing in regions such as Africa will take years, if not decades, to fruition. For now, poisonous politics cannot change facts underground.
Reuters Breakingviews is the world’s leading source of insight into financial agenda setting. As a Reuters brand for financial commentary, we dissect big business and economic stories as they spread throughout the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.