WORLDWIDE : HEADLINES
Hong Kong financial firms step up compliance hiring amid U.S. sanctions, security law
HONG KONG – Financial firms in Hong Kong are scrambling to fortify their compliance operations following U.S. sanctions and China’s new national security law, even as the sector pushes to cut costs amid the coronavirus pandemic.
This underscores the growing challenges for firms operating in the Asian financial hub, which was roiled last year by often-violent pro-democracy, anti-China protests and is now in the crosshairs of mounting Sino-U.S. tensions.
International asset managers and Asian banks have stepped up compliance hiring, while some are training existing staff and buying new technology to offset a talent crunch as candidates are unwilling to relocate amid the health crisis and the uncertainty in Hong Kong, bankers, lawyers and headhunters said.
Demand for compliance staff has risen by as much as a third from a few months earlier, two headhunters said.
Full coverage: REUTERS
Amazon Japan submits improvement plan to regulators: Asahi
TOKYO – Amazon Japan has submitted a plan to the country’s fair trade regulator on how it will improve practices suspected of violating anti-trust rules, the Asahi Shimbun reported on Friday.
The unit of Amazon.com Inc (AMZN.O) was raided by the Japan Fair Trade Commission in 2018 on suspicion of demanding suppliers shoulder part of the cost incurred from selling their products at a discount on the e-commerce giant’s site.
The improvement plan includes a plan to refund suppliers who were pressured to pay this “cooperation money,” the newspaper said.
“Amazon continues to hold collaborative and constructive discussions with the Fair Trade Commission,” the company said in an emailed statement on Friday in response to the report.
Full coverage: REUTERS
WORLDWIDE : FINANCE / ECONOMY / STOCK MARKET
Sterling to weaken by end-year before regaining lost ground
LONDON – Sterling will lose some of its recent gains against a weaker dollar as year-end approaches, hurt by Brexit uncertainty and fears surrounding the coronavirus pandemic, a Reuters poll showed on Friday.
The pound GBP= hit an eight-month high against the greenback on Tuesday of over $1.34 but has since drifted lower after Bank of England policymakers warned that Britain’s economy could suffer more damage than anticipated.
Britain has suffered the highest number of deaths from COVID-19 in Europe and lockdown measures imposed to try to stop the virus spreading further meant the economy contracted a record 20.4% in the last quarter.
The level of Britain’s economic output would permanently be about 1.5 percentage points lower than it would have been without the pandemic, BoE Deputy Governor Dave Ramsden said on Wednesday and he warned the number could be higher.
Full coverage: REUTERS
Dollar hunkers down before key U.S. jobs report
TOKYO – The dollar steadied against major currencies on Friday as traders awaited key U.S. jobs data that may cast doubt on the strength of economic recovery from the coronavirus outbreak.
The Australian dollar clawed back early losses and stabilised after the country’s retail sales accelerated in July, easing concern about the economy.
The greenback has managed to halt its recent slide, but analysts warn sentiment remains weak due to concern about the strength of U.S. economic growth and speculation that the Federal Reserve will keep rates low for a very long time.
“The dollar has rebounded against the euro and could continue to rise a little further,” said Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo.
Full coverage: REUTERS
Asian stocks drop after Wall Street’s tech rally stumbles
SINGAPORE/NEW YORK – Asia’s stock markets slipped on Friday, following the steepest Wall Street selloff since June, while safer bonds and the dollar found support as investors sought shelter.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6%. Japan’s Nikkei dropped 1.3% while markets in Sydney and Seoul fell 2%.
The moves are more muted than the 5% plunge on the tech-heavy Nasdaq overnight, or the S&P 500’s 3.5% drop, which traders said was overdue given recent frothy gains.
But investors are worried the fall might turn into a deeper rout, with a crucial U.S. payrolls report due later on Friday seen as possible selling trigger if it disappoints.
After-hours trade in U.S. tech companies pointed to further pressure and futures dropped, with S&P 500 futures down 0.4% early in Asia and Nasdaq 100 futures down 1.2%.
Full coverage: REUTERS
Oil set to post weekly drop on lacklustre demand
SINGAPORE – Oil prices slipped on Friday, on track for a weekly loss, as investors’ focus shifted to lacklustre demand and ample fuel supplies, offsetting support from a weak dollar.
Brent crude LCOc1 fell 19 cents, or 0.4%, to $43.88 a barrel by 0034 GMT, heading for its biggest weekly loss since June. U.S. West Texas Intermediate was at $41.17 a barrel, down 20 cents, or 0.5%, set to post its first weekly drop in five weeks.
The volume of crude arriving in China, the world’s largest crude importer, is set to slow in September after rising for five straight months as its refiners gradually digest bloated inventories, according to data on Refinitiv Eikon.
In the United States, refiners awashed in diesel inventory are unlikely to boost output soon.
Full coverage: REUTERS
