FirstFT: Citi expands into China

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Citigroup plans to deepen its involvement in China’s financial markets by launching an investment banking arm there, just as competitors there are growing wary.

A major U.S. bank plans to launch a wholly owned subsidiary based in China by the end of the year, according to people familiar with the matter. The venture will expand Citi’s China operations, which already include corporate lending and other banking services.

Citi’s China expansion plans come amid the company’s biggest restructuring in more than a decade under CEO Jane Fraser. Citi is expected to reveal details of the reorganization when it releases its financial results next week. Here’s what we know about Citi’s China plans.

And here’s what I’m monitoring today and over the weekend:

• Economic data: The governments of the United States and Canada release their latest labor market statistics. We also have data from the Institute for Supply Management on the US service sector and US factory orders for November.

• result: Corona’s owner, Constellation Brands, announced the results today.

• Financial policy: Richmond Fed President Thomas Barkin speaks at the Maryland Bankers Association’s First Friday Economic Outlook Forum.

• Joe Biden: The US president speaks in Pennsylvania to commemorate the anniversary of the January 6, 2021, riot in which Donald Trump’s supporters stormed the Capitol.

• election: Voting begins in Bangladesh on Sunday, marking the beginning of a historic year for democracy. But critics say the South Asian country is heading toward de facto one-party rule as Prime Minister Sheikh Hasina seeks a historic fifth term.

Feel more financially confident this year by signing up to a new six-part newsletter series from Claer Barrett, the FT’s consumer editor. Claer guides you through managing your budget, buying a home, investing, and saving for retirement. join us here.

5 more top articles

1. Israel’s defense minister said there should be no “Israeli civilian presence” in Gaza after the war with Hamas ends. Yoav Gallant said yesterday that Israel should retain “operational freedom of action” in the enclave and take all necessary actions to “ensure that Gaza does not pose a threat to Israel.” . But once the fighting ends, civilian control of the territory should be left in the hands of the Palestinians, he said.

• Iranian explosion: IIS claimed responsibility for two bombings that killed nearly 100 people in the Islamic Republic’s deadliest attack in decades.

• Red Sea: Yesterday, Houthi militants detonated a one-way unmanned surface vessel in the Red Sea, marking a defiant escalation by the Iranian-backed rebels, a day after the US signaled a military response to such attacks. Ta.

• Iraq: The U.S. military has killed a senior commander of an Iranian-backed militia in Iraq after it carried out an attack on Americans.

2. Eurozone inflation rose to 2.9% last month. Reversing six months of consecutive declines, there are questions about how soon the European Central Bank will start cutting interest rates. The annual rate of increase in consumer prices in the 20 euro member countries rose in December from November’s 2.4%, the lowest in more than two years. The reasons behind the price hike are as follows.

3. Funding by U.S. venture capital firms reached a six-year low last year. Sales fell 60% to $67 billion. The sharp decline from 2022 will add to the pressure on startups that have endured a lack of funding over the past 18 months. This is why VCs are struggling to raise new funding.

4. New York City sues 17 bus companies for bringing thousands of migrants into New York City from the Mexican border By order of Texas Governor Greg Abbott. In a lawsuit filed yesterday, New York City Mayor Eric Adams’ office announced that it is seeking $708 million in damages from both companies. Read more about the lawsuit, which alleges both companies acted in “malice.”

5. A record number of large healthcare companies filed for bankruptcy in the United States last year. This highlights the industry’s struggle with rising costs, declining patient numbers and increasing regulation. Eighteen companies with debts of more than $100 million, including radiation therapy, medical staffing services and community hospitals, have filed for Chapter 11 bankruptcy protection. Read more about why bankruptcies in the healthcare sector increased almost five times last year compared to his 2022.

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detailed news

For some, the decline of central São Paulo is similar to that of New York in the 1970s and 1980s. Once a commercial hub, the Centro district is now largely off-limits due to soaring crime and crumbling infrastructure. Like his predecessor, current São Paulo Mayor Ricardo Nunez has plans. But unlike them, he has the resources to back it up. Can the city center be revived?

I’m also reading. . .

• Global inequality: The convergence of fortunes between rich and poor countries in the 2000s may have been the exception rather than the new rule, writes Soumaya Keynes.

• War in Ukraine: Eastern Europe expert Timothy Garton Ash writes that the choices the democracies make in supporting Kiev will determine the outcome of this ongoing war.

• Hassan Nasrallah: The pragmatism shown so far by Hezbollah leaders is being tested by the killing of a Hamas ally in the Lebanese militant group’s stronghold.

chart of the day

China spent $5.5 million on real estate owned by Donald Trump during his presidency, according to a report released by Congressional Democrats yesterday. Beijing spent by far the most on Trump’s hotels and apartments among 20 foreign governments, including Saudi Arabia, Congo and Malaysia. Other key findings from the 156-page report include:

Take a break from the news

A blend of technology, citizen science, and common sense has helped nutrition service Zoe achieve cult status among its 130,000 users. Providing personalized health advice, like a social media feed, rather than off-the-shelf health advice offers a glimpse into the future of healthcare. Henry Mance spoke to co-founder Tim Spector.

Additional reporting by Tee Zhuo and emily goldberg