Hong Kong authorities seek answers over Cathay Pacific flight cancellation issue
Hong Kong’s government said on Tuesday it would seek an explanation from Cathay Pacific Airways after the flagship airline canceled dozens of flights due to a pilot shortage.
“We are very concerned,” Hong Kong Chief Executive John Lee said. “We will continue to liaise with stakeholders in the aviation industry, particularly Cathay Pacific, to ensure that aviation capacity is rebuilt as soon as possible.”
Cathay canceled about 21 flights on Tuesday and reduced its flight schedule for next month’s Lunar New Year busy period as many pilots reached their legal flight time limits and some contracted seasonal influenza. .
The airline aims to restore pre-pandemic operating capacity by the end of this year.
What to see in Europe today
event: Japanese Foreign Minister Yoko Kamikawa visited Helsinki and met with President Sauli Niinistö and Foreign Minister Elina Valtonen. Singapore’s Foreign Minister Vivian Balakrishnan has concluded an official visit to Portugal and Denmark.
Central Bank: Bank of England Managing Director Nathanael Benjamin has appeared before the Treasury Select Committee over his appointment to the Monetary Policy Committee. Francois Villeroy de Galhau, Governor of the Banque de France, gave his New Year’s greetings to the country’s financial sector.
Economic indicators: The OECD releases its economic survey for Denmark, and the EU Statistics Office releases the euro area unemployment rate for November. Switzerland’s unemployment rate statistics for December are released. German industrial production and French trade statistics for November will also be released.
Company updates: British companies reporting quarterly results include Nottingham-based miniatures maker Games Workshop Group and Leicester-based retailer Shoe Zone.
UK, US express concern over arrests of rebels in Bangladesh
Britain and the United States have condemned election interference in Bangladesh after authorities arrested thousands of members of the main opposition party ahead of Sunday’s vote.
Britain’s Foreign Office said it condemned “acts of intimidation and violence” during the election campaign. “Such acts have no place in political life.”
A US State Department spokesperson said on Monday that the elections that won Prime Minister Sheikh Hasina her fifth term were “neither free nor fair.”
Hasina’s Awami League won 223 of the 300 seats contested in the election.
Carta shuts down parts of its platform after claims it sold shares without consent
Carta, a $7.4 billion software company used by startups to track investors, is working to limit the fallout from allegations that it tried to trade its customers’ stocks without their consent, and is shutting down some of its businesses. Department is closed.
Carta is winding down its private equity trading platform, which the company’s investors, including venture capital firm Andreessen Horowitz and private equity group Silver Lake, once hoped would become the company’s main source of revenue.
The company’s chief executive, Henry Ward, said in a blog post announcing the decision Monday night that the trading platform’s failure was “my biggest failure and disappointment.”
Asian stocks rise in early trade
Asian stocks rose on Tuesday, following strong gains in US stock markets the previous day.
Hong Kong’s Hang Seng index rose 1%, China’s CSI300 index rose 0.4%, Japan’s TOPIX rose 0.8% and South Korea’s Kospi rose 0.3%.
U.S. markets on Monday posted their best session since mid-November, led by gains in large-cap tech stocks. The S&P 500 rose 1.4%, approaching a record high, while the tech-heavy Nasdaq Composite Index rose 2.2%.
Pakistan Supreme Court lifts lifetime election ban for convicted politicians
Pakistan’s Supreme Court has overturned a lifetime ban on convicts from contesting elections, paving the way for Nawaz Sharif to run for prime minister for a fourth time in elections scheduled for next month.
Mr Sharif returned from exile in the UK in October last year after being removed from office by the Supreme Court in 2017 on charges of “misconduct” related to the purchase of luxury real estate in London.
Some analysts believe that Mr. Sharif’s return and re-candidacy could be linked to Mr. Sharif’s bitterest rival, former Prime Minister Imran Khan, who was himself imprisoned on corruption charges and fell out with Pakistan’s powerful military. We see this as an effort to ensure that someone will be able to replace him.
Taiwan presidential candidate criticizes China’s election interference
Taiwan’s vice president on Tuesday accused China of what it called the “most serious” interference in Taiwan’s elections ever recorded as it seeks to install a “Beijing-friendly” government.
Lai Ching-de, presidential candidate for Taiwan’s ruling Democratic Progressive Party, criticized the Chinese government’s stance that elections are a choice between peace and war.
“China intervenes every time an election is held in Taiwan, but this time it’s the most serious we’ve ever seen. Whether it’s propaganda, military threats, cognitive warfare or fake news, they is taking advantage of everything,” Rai said.
“If this intervention is successful, Taiwan will elect a chief executive instead of a president,” he added. “We’re going to end up like Hong Kong.”
Samsung’s operating profit falls as analysts predict chip recovery
Samsung Electronics estimated on Tuesday that its operating profit had fallen by about 35% as it faced oversupply and high inflation.
The world’s largest memory chip maker’s operating profit fell to about 2.8 trillion won ($2.1 billion) in the October-December period, worse than the 3.7 trillion won forecast by LSEG Smart Estimate.
Sales decreased by 4.9% from the previous year to approximately 67 trillion won.
The industry suffered its worst downturn in decades last year as high inflation dented consumer demand for high-tech gadgets.
However, chip prices rose in the fourth quarter, helped by production cuts by memory chip makers. Analysts expect rising demand for high-performance chips to fuel the recovery this year.
What to see in Asia today
event: Indonesian President Joko Widodo visited the Philippines for a three-day official visit with Foreign Minister Retno Marsudi. Parliamentary elections will be held in Bhutan.
Economic indicators: Japan releases consumer price index for December and household spending data for November. Australia releases retail sales data for November.
Company updates: Samsung Electronics announces earnings forecast for the fourth quarter. Japanese retailer Izumi, kitchen equipment maker Maruzen, and exam coaching group Ideal Education also reported third-quarter earnings. Nakakita Seisakusho, a valve manufacturer based in Osaka, reports its second quarter financial results.
S&P 500 nears record high as tech stocks soar
U.S. stocks posted their best trading day since mid-November on Monday as the S&P 500 index neared record highs.
The benchmark index accelerated late in the session, ending 1.4% higher. The index is 0.7% away from breaking its all-time high set in January 2022.
The tech-heavy Nasdaq Composite Index rose 2.2%, its best day since mid-November, with all tech stocks in the Magnificent Seven rising. Nvidia led the pack with his 6.4% increase.
The rise in stock prices led traders to buy U.S. Treasuries, and yields on two-year and 10-year Treasuries fell slightly.
Tronchetti Provera increases investment in tire manufacturer Pirelli
Long-time Pirelli boss Marco Tronchetti Provera’s investment vehicle is set to take a stake in the Milan-based tire maker, months after the Italian government restricted the rights of its largest shareholder, China-based Sinochem. The ratio is increasing.
MTP plans to increase its stake from 14% to 20% following Tronchetti Provera’s financial concerns and a two-step transaction with Camfin, the holding company of Pirelli’s Italian investors, the statement said.
Tronchetti-Provera stepped down as Pirelli’s chief executive last year after a 30-year term, but the company is now headed by close aide Andrea Casalucci, who maintains tight control over the company. He currently serves as Executive Vice Chairman of Pirelli.
read more here.
United Airlines finds loose bolts on grounded 737 Max planes
United Airlines said it has discovered bolts that need to be tightened in the doors of some of its 737 Max planes, which have been grounded since the plane exploded in mid-air three days ago.
The Chicago-based airline was inspecting its 737 Max 9, a variant of the single-aisle jet, and found “some areas where there appeared to be problems with the installation of the door plugs, such as bolts that needed further tightening. I discovered that.” It has more seats than the popular Max 8.
The airline said its technical operations team would resolve the issue “to safely return the aircraft to service.”
Rise in Big Tech stocks puts Nasdaq on course for best session since November
Tech stocks soared Monday, rebounding after blue-chip stocks fell last week, ending a nine-week bull market.
On Monday afternoon, the tech-heavy Nasdaq Composite Index rose 2%, with chipmaker Nvidia up 5.5% to lead the Magnificent Seven Group of tech stocks, heading for its best day since mid-November. The benchmark S&P 500 rose 1.2%.
Brent crude, the international oil benchmark, fell 3.3% to settle at $76.12 a barrel after Saudi Arabia cut export prices, citing weak fuel demand. West Texas Intermediate, the U.S. benchmark, fell 4.1% to $70.77 a barrel, its steepest decline since Nov. 16.