AFP

China Evergrande to get $818 mn for scrapping stadium deal

Embattled Chinese property giant Evergrande has cancelled a contract to build a football stadium in a southern city in return for 5.52 billion yuan ($818 million), it said in a filing.

The real estate behemoth has been involved in restructuring negotiations after racking up $300 billion in liabilities in the wake of  Beijing’s crackdown on excessive debt and rampant speculation in the property sector.

Last week, the company failed to meet a self-imposed deadline to publish a preliminary restructuring proposal, although it said it has made positive progress.

In a filing to the Hong Kong stock exchange late Thursday, Evergrande said “the group’s liquidity issue has adversely affected the development of and construction on the land” in Guangzhou.

Evergrande entered a contract with the city’s authorities in 2020 for use of the land, designated for sports and industrial purposes.

The contract allowed for commercial and sports uses of the land for 40 years, as well as other business uses for 50 years, the filing said.

Evergrande had started construction, including the building of the Guangzhou Evergrande Football Stadium, which was set to have at least 80,000 seats, it said.

The latest refund will enter a project escrow account designated by the government and will be used to settle debts relating to the deal, Evergrande said.

“It is expected that the group will record a loss of approximately 1.255 billion” yuan over the total book value of the land along with buildings, structures and other items at the site after deducting the refund, Evergrande said.

Evergrande, one of China’s biggest developers, has scrambled to offload assets in recent months, with chairman Hui Ka Yan paying off some of its debts using his personal wealth.

It has also found a potential buyer for its Hong Kong headquarters, according to earlier media reports.

Its troubles are emblematic of the problems rippling across China’s massive property sector, with smaller companies also defaulting on loans and others struggling to raise cash.

Cash-strapped developers have increasingly struggled to deliver projects on time, sparking mortgage boycotts from angry homebuyers in many cities.

China Evergrande to get $818 mn for scrapping stadium deal

Embattled Chinese property giant Evergrande has cancelled a contract to build a football stadium in a southern city in return for 5.52 billion yuan ($818 million), it said in a filing.

The real estate behemoth has been involved in restructuring negotiations after racking up $300 billion in liabilities in the wake of  Beijing’s crackdown on excessive debt and rampant speculation in the property sector.

Last week, the company failed to meet a self-imposed deadline to publish a preliminary restructuring proposal, although it said it has made positive progress.

In a filing to the Hong Kong stock exchange late Thursday, Evergrande said “the group’s liquidity issue has adversely affected the development of and construction on the land” in Guangzhou.

Evergrande entered a contract with the city’s authorities in 2020 for use of the land, designated for sports and industrial purposes.

The contract allowed for commercial and sports uses of the land for 40 years, as well as other business uses for 50 years, the filing said.

Evergrande had started construction, including the building of the Guangzhou Evergrande Football Stadium, which was set to have at least 80,000 seats, it said.

The latest refund will enter a project escrow account designated by the government and will be used to settle debts relating to the deal, Evergrande said.

“It is expected that the group will record a loss of approximately 1.255 billion” yuan over the total book value of the land along with buildings, structures and other items at the site after deducting the refund, Evergrande said.

Evergrande, one of China’s biggest developers, has scrambled to offload assets in recent months, with chairman Hui Ka Yan paying off some of its debts using his personal wealth.

It has also found a potential buyer for its Hong Kong headquarters, according to earlier media reports.

Its troubles are emblematic of the problems rippling across China’s massive property sector, with smaller companies also defaulting on loans and others struggling to raise cash.

Cash-strapped developers have increasingly struggled to deliver projects on time, sparking mortgage boycotts from angry homebuyers in many cities.

Taiwan condemns 'evil neighbour' China over war drills

Taiwan blasted its “evil neighbour next door” on Friday after China encircled the island with a series of huge military drills that were condemned by the United States and other Western allies.

During Thursday’s military exercises, which continued Friday, China fired ballistic missiles and deployed both fighter jets and warships around Taiwan.

The People’s Liberation Army declared multiple no-go danger zones around Taiwan, straddling some of the busiest shipping lanes in the world and at some points coming within 20 kilometres (12 miles) of the island’s shores.

Beijing has said the exercises will continue until midday Sunday, and Taipei reported that Chinese fighter jets and ships crossed the “median line” that runs down the Taiwan Strait on Friday morning.

“As of 11am, multiple batches of Chinese warplanes and warships conducted exercises around the Taiwan Strait and crossed the median line of the strait,” Taipei’s defence ministry said in a statement. 

The median line is an unofficial but once largely adhered-to border that runs down the middle of the Taiwan Strait, which separates Taiwan and China.

Chinese incursions have become more common since Beijing declared in 2020 that the unofficial border no longer existed.

Beijing has called its war games a “necessary” response to a visit to the self-ruled, democratic island by US House Speaker Nancy Pelosi, but Washington countered that China’s leaders had “chosen to overreact”.

Pelosi defended her visit Friday, saying Washington will “not allow” China to isolate Taiwan.

“We have said from the start that our representation here is not about changing the status quo here in Asia, changing the status quo in Taiwan,” she told reporters in Tokyo on the final leg of an Asia tour.

Taiwan’s premier Su Tseng-chang, meanwhile, called for allies to push for de-escalation.

“(We) didn’t expect that the evil neighbour next door would show off its power at our door and arbitrarily jeopardise the busiest waterways in the world with its military exercises,” he told reporters.

– Missiles over Taiwan –

China’s drills involved a “conventional missile firepower assault” in waters to the east of Taiwan, the Chinese military said. 

The state-run Xinhua news agency said the Chinese army “flew more than 100 warplanes including fighters and bombers” during the exercises, as well as “over 10 destroyers and frigates”.

State broadcaster CCTV reported that Chinese missiles had flown directly over Taiwan.

Japan also claimed that of the nine missiles it had detected, four were “believed to have flown over Taiwan’s main island”.

Taipei’s military said it would not confirm missile flight paths, in a bid to protect its intelligence capabilities and not allow China “to intimidate us”.

– ‘Temperature’s pretty high’ –

China’s ruling Communist Party views Taiwan as part of its territory and has vowed to one day take it, by force if necessary.

But the scale and intensity of the drills have triggered outrage in the United States and other democracies.

“China has chosen to overreact and use the speaker’s visit as a pretext to increase provocative military activity in and around the Taiwan Strait,” John Kirby, a White House spokesman, told reporters.

“The temperature’s pretty high,” but tensions “can come down very easily by just having the Chinese stop these very aggressive military drills”, he added.

Japan lodged a formal diplomatic complaint against Beijing, with five of the missiles believed to have landed in its exclusive economic zone.

Prime Minister Fumio Kishida called China’s exercises a “serious problem that impacts our national security and the safety of our citizens” and called for an “immediate cancellation of the military drills”.

But Chinese Foreign Minister Wang Yi said the “flagrant provocation” by the United States had set an “egregious precedent”.

– Trading places – 

The manoeuvres are taking place along some of the busiest shipping routes on the planet, used to supply vital semiconductors and electronic equipment produced in East Asian factory hubs to global markets.

Taiwan’s Maritime and Port Bureau has warned ships to avoid the areas being used for the Chinese drills.

“The shutting down of these transport routes — even temporarily — has consequences not only for Taiwan, but also trade flows tied to Japan and South Korea,” Nick Marro, the Economist Intelligence Unit’s lead analyst for global trade, wrote in a note.

Taiwan said the drills would disrupt 18 international routes passing through its flight information region while several international airlines told AFP they would divert flights.

But markets in Taipei appeared to shrug off the tensions, with the Taiwan Taiex Shipping and Transportation Index, which tracks major shipping and airline stocks, up 2.3 percent early Friday.

And analysts broadly agree that despite all its aggressive posturing, Beijing does not want an active military conflict against the United States and its allies over Taiwan — just yet.

“The last thing Xi wants is an accidental war ignited,” Titus Chen, an associate professor of political science at the National Sun Yat-Sen University in Taiwan, told AFP.

Blue Origin sends first Egyptian and Portuguese nationals to space

Jeff Bezos’ Blue Origin on Thursday launched six people to space, including the first from Egypt and Portugal, on the company’s sixth crewed flight. 

Mission “N-22” saw the New Shepard suborbital rocket blast off around 8:58 am local time (1358 GMT) from Blue’s base in the west Texas desert.

The autonomous, re-usable vehicle sent its crew capsule soaring above the Karman line, the internationally recognized space boundary, 62 miles (100 kilometers) above sea level. 

“I’m floating!” a crew mate could be heard saying on a livestream, as the capsule coasted to its highest point and the passengers experienced a few minutes of weightlessness. 

Both the rocket and capsule separately returned to the base — the latter using giant parachutes — completing the mission around 11 minutes after lift-off.

The crew included Egyptian engineer Sara Sabry, and Portuguese entrepreneur Mario Ferreira, both the first people of their countries to leave Earth.

It also included Coby Cotton, one of five co-founders of the YouTube sports and comedy channel Dude Perfect, which boasts more than 57 million followers.

A Blue Origin spokeswoman confirmed all six crew were paying passengers — though Sabry’s seat was sponsored by nonprofit Space for Humanity.

Blue Origin has not revealed its ticket prices. 

Past flights have included celebrity guests who have flown for free, including Star Trek legend William Shatner. 

Blue Origin sends first Egyptian and Portuguese nationals to space

Jeff Bezos’ Blue Origin on Thursday launched six people to space, including the first from Egypt and Portugal, on the company’s sixth crewed flight. 

Mission “N-22” saw the New Shepard suborbital rocket blast off around 8:58 am local time (1358 GMT) from Blue’s base in the west Texas desert.

The autonomous, re-usable vehicle sent its crew capsule soaring above the Karman line, the internationally recognized space boundary, 62 miles (100 kilometers) above sea level. 

“I’m floating!” a crew mate could be heard saying on a livestream, as the capsule coasted to its highest point and the passengers experienced a few minutes of weightlessness. 

Both the rocket and capsule separately returned to the base — the latter using giant parachutes — completing the mission around 11 minutes after lift-off.

The crew included Egyptian engineer Sara Sabry, and Portuguese entrepreneur Mario Ferreira, both the first people of their countries to leave Earth.

It also included Coby Cotton, one of five co-founders of the YouTube sports and comedy channel Dude Perfect, which boasts more than 57 million followers.

A Blue Origin spokeswoman confirmed all six crew were paying passengers — though Sabry’s seat was sponsored by nonprofit Space for Humanity.

Blue Origin has not revealed its ticket prices. 

Past flights have included celebrity guests who have flown for free, including Star Trek legend William Shatner. 

Chinese missiles flew over Taiwan during drills: state media

Chinese missiles flew over Taiwan during Beijing’s latest military drills, state media reported Friday, as the country pressed ahead with exercises encircling the island following a visit by US House Speaker Nancy Pelosi.

Pelosi was the highest-profile US official to head to Taiwan in years, defying stark threats from Beijing, which views the self-ruled island as its territory.

China launched a series of exercises in multiple zones around Taiwan in response, straddling some of the busiest shipping lanes in the world. 

Beijing is yet to formally confirm whether missiles overflew the islands during the drills, while Taipei has refused to confirm or deny the flight paths, citing intelligence concerns.

But Japan’s defence ministry said of the nine missiles it had detected, four were “believed to have flown over Taiwan’s main island”.

And on Friday, a hashtag shared by state media asking “what does it mean for the People’s Liberation Army’s conventional missiles to pass over Taiwan island?” attracted some 43.7 million views on China’s Twitter-like Weibo.

“Our exercises this time included live-firing tests, and it was the first time they crossed Taiwan island,” Meng Xiangqing, a professor at China’s military-affiliated National Defence University, told state broadcaster CCTV, lauding the accuracy of Beijing’s capabilities. 

He added that they passed through an airspace where Patriot missiles — a highly mobile surface-to-air missile system that would be a crucial defence against Chinese warplanes — are densely deployed.

The latest drills also represented the PLA’s closest-ever exercises to the island, its first encirclement and the first time it set up a shooting range east of Taiwan, Meng said. 

China’s official Xinhua news agency reported that the military “flew more than 100 warplanes including fighters and bombers” during the exercises, as well as “over 10 destroyers and frigates.”

The latest drills are expected to continue until midday Sunday, and have sparked outrage from the United States, Japan and the European Union, as well as Taipei.

White House spokesman John Kirby called it an overreaction by China and a “pretext” to increase military activity around the Taiwan Strait.

China defends the drills as just countermeasures in the face of provocations by the United States and its allies in Taiwan.

Blue Origin sends first Egyptian and Portuguese nationals to space

Jeff Bezos’ Blue Origin on Thursday launched six people to space, including the first from Egypt and Portugal, on the company’s sixth crewed flight. 

Mission “N-22” saw the New Shepard suborbital rocket blast off around 8:58 am local time (1358 GMT) from Blue’s base in the west Texas desert.

The autonomous, re-usable vehicle sent its crew capsule soaring above the Karman line, the internationally recognized space boundary, 62 miles (100 kilometers) above sea level. 

“I’m floating!” a crew mate could be heard saying on a livestream, as the capsule coasted to its highest point and the passengers experienced a few minutes of weightlessness. 

Both the rocket and capsule separately returned to the base — the latter using giant parachutes — completing the mission around 11 minutes after lift-off.

The crew included Egyptian engineer Sara Sabry, and Portuguese entrepreneur Mario Ferreira, both the first people of their countries to leave Earth.

It also included Coby Cotton, one of five co-founders of the YouTube sports and comedy channel Dude Perfect, which boasts more than 57 million followers.

A Blue Origin spokeswoman confirmed all six crew were paying passengers — though Sabry’s seat was sponsored by nonprofit Space for Humanity.

Blue Origin has not revealed its ticket prices. 

Past flights have included celebrity guests who have flown for free, including Star Trek legend William Shatner. 

Blue Origin sends first Egyptian and Portuguese nationals to space

Jeff Bezos’ Blue Origin on Thursday launched six people to space, including the first from Egypt and Portugal, on the company’s sixth crewed flight. 

Mission “N-22” saw the New Shepard suborbital rocket blast off around 8:58 am local time (1358 GMT) from Blue’s base in the west Texas desert.

The autonomous, re-usable vehicle sent its crew capsule soaring above the Karman line, the internationally recognized space boundary, 62 miles (100 kilometers) above sea level. 

“I’m floating!” a crew mate could be heard saying on a livestream, as the capsule coasted to its highest point and the passengers experienced a few minutes of weightlessness. 

Both the rocket and capsule separately returned to the base — the latter using giant parachutes — completing the mission around 11 minutes after lift-off.

The crew included Egyptian engineer Sara Sabry, and Portuguese entrepreneur Mario Ferreira, both the first people of their countries to leave Earth.

It also included Coby Cotton, one of five co-founders of the YouTube sports and comedy channel Dude Perfect, which boasts more than 57 million followers.

A Blue Origin spokeswoman confirmed all six crew were paying passengers — though Sabry’s seat was sponsored by nonprofit Space for Humanity.

Blue Origin has not revealed its ticket prices. 

Past flights have included celebrity guests who have flown for free, including Star Trek legend William Shatner. 

Health fears over Beluga whale spotted in France's Seine river

A beluga whale that swam up France’s Seine river appears to be underweight and officials are worried about its health, regional authorities said Thursday.

The protected species, usually found in cold Arctic waters, had made its way up the waterway and reached a lock some 70 kilometres (44 miles) from Paris.

The whale was first spotted Tuesday in the river that flows through the French capital to the English Channel, and follows the rare appearance of a killer whale in the Seine just over two months ago.

French rescue services as well as firefighters and biodiversity officials mobilised swiftly and kept a close eye on the whale throughout the day to evaluate the “worrying” health of the mammal, the local prefecture said.

It added the whale seemed to have “skin changes and to be underweight”.

It is “currently between the Poses dam and that of Saint-Pierre-la-Garenne”, around 70 kilometres (43 miles) northwest of Paris.

Gerard Mauger, deputy head of French Marine Mammal Research Group GEEC, said the mammal spent “very little time on the surface” and appeared to have “good” lung capacity.

But Mauger said rescuers were struggling to guide the whale to the mouth of the Seine.

Officials did not specify the size, but an adult beluga can reach up to four metres (13 feet) in length.

Authorities in Normandy’s Eure department urged people to keep their distance to avoid distressing the animal.

Lamya Essemlali, head of the non-profit marine conservation organisation Sea Shepherd, said some of her team would arrive with drones in the evening to locate the whale more easily.

“The environment is not very welcoming for the beluga, the Seine is very polluted and cetaceans are extremely sensitive to noise,” she said, adding that the Seine was “very noisy”.

In late May, the killer whale — also known as an orca, but technically part of the dolphin family — was found dead in the Seine between Le Havre and Rouen.

The animal had found itself stranded in the river and was unable to make its way back to the ocean despite attempts by officials to guide it.

“The urgency is to feed the whale to prevent it from suffering the same fate as the orca who died after starving to death,” Essemlali said.

The prefecture said it would assist and monitor Sea Shepherd’s efforts.

The Eure authorities said lone belugas do sometimes swim further south than usual, and are able to temporarily survive in fresh water.

While they migrate away from the Arctic in the autumn to feed as ice forms, they rarely venture so far south.

Most Asian markets up as oil drops, eyes on Taiwan and US jobs

Asian equities mostly rose Friday as a drop in oil prices to pre-Ukraine war levels stirred hopes of a slowdown in inflation and central bank interest rate hikes, while focus turns to key US jobs data later in the day.

However, while markets have enjoyed a broadly positive week, optimism remains at a premium as traders fret over issues including the conflict in Eastern Europe, China’s military drills around Taiwan and a possible global recession.

Crude edged up but expectations that economies will contract — dampening demand — have sent the commodity tumbling more than 10 percent this week, with US data indicating Americans were driving less now than in summer 2020 at the height of the pandemic.

And while analysts are beating the drum of recession, traders are taking heart from the possibility of a reprieve from central bank monetary tightening.

“The recent fall in oil prices, which are now trading below the levels immediately before Russia’s invasion of Ukraine, has contributed to the market’s perception that inflation is likely to peak soon, taking pressure off the Fed to raise rates as aggressively,” said National Australia Bank’s Rodrigo Catril. 

Traders will now be closely watching the release of a crucial US jobs report later Friday for a fresh snapshot of the world’s top economy.

The Federal Reserve has said its rate decision will be guided by data, with signs of economic weakness seen as likely to mean any increases will be light.

Officials have said the economy remains healthy despite four-decade high inflation and a sharp lift in borrowing costs, while several have suggested they are open to more big increases to get on top of prices.

And SPI Asset Management’s Stephen Innes said: “Though some high-frequency data suggest employment and inflation have softened in some parts of the economy, markets may wonder if they are soft enough to change the course for the Fed.”

In a sign of the long road ahead, the Bank of England hiked rates by the most since it was made independent in 1997, and warned inflation will likely go higher than 13 percent while Britain will suffer an extended recession.

Wall Street provided a soft lead after recent gains, but Asia was largely higher.

Tokyo, Shanghai, Sydney, Seoul, Jakarta, Wellington and Singapore rose, though Hong Kong and Manila dipped.

Taipei surged more than two percent on easing concerns over a conflict with Beijing, even as China conducts its largest-ever military exercises around Taiwan in response to US House Speaker Nancy Pelosi’s visit this week.

China launched a series of exercises in multiple zones Thursday, straddling some of the busiest shipping lanes in the world.

While Taipei did not say where the missiles landed or whether they flew over the island, Japan said that of the nine missiles it had detected, four were “believed to have flown over Taiwan’s main island”.

Geir Lode, of Federated Hermes, said: “For a world facing a whole raft of major challenges, there sure is a lot of optimism across equities right now.

“Inflation is challenging corporate earnings and weighing on consumer sentiment. Global recession appears probable as growth becomes ever more scarce. Geopolitical tensions and the growth in populism accelerate the trend towards localisation (and increase the risk of even darker futures). Climate change looms over us all.

“And yet equities this week have continued July’s strong rally.”

– Key figures at around 0300 GMT –

Tokyo – Nikkei 225: UP 0.7 percent at 28,131.87 (break)

Hong Kong – Hang Seng Index: DOWN 0.1 percent at 20,145.45

Shanghai – Composite: UP 0.1 percent at 3,191.55

Euro/dollar: DOWN at $1.0233 from $1.0248 Thursday

Pound/dollar: DOWN at $1.2139 from $1.2166

Euro/pound: UP at 84.31 pence from 84.21 pence

Dollar/yen: UP at 133.22 yen from 132.95 yen

West Texas Intermediate: UP 0.4 percent at $88.87 per barrel

Brent North Sea crude: UP 0.2 percent at $94.35 per barrel

New York – Dow: DOWN 0.3 percent at 32,726.82 (close)

London – FTSE 100: FLAT at 7,448.06 (close)

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