Chinese Business

Asian markets rose Thursday after China unveiled fresh measures to boost its economy, while investors awaited a speech by the Fed chair that may hold clues about future rate hikes.

Central bankers are meeting in Jackson Hole in the US state of Wyoming, and all eyes are on Federal Reserve boss Jerome Powell’s Friday speech for clues about its plans to tame inflation.

Market sentiment was also boosted by the Chinese government’s Wednesday announcement of new policies to help sustain the recovery in the world’s second-largest economy.

Asian traders on Thursday followed a positive lead from Wall Street, where the Dow, Nasdaq and S&P 500 all closed higher.

Tokyo, Sydney, Shanghai and Singapore were up in morning trade. Taipei and Seoul also rose.

Hong Kong markets will hold a shortened session starting at 1 pm (0500 GMT), the city’s stock exchange announced, after Typhoon Ma-On forced a delay.

There are concerns that the Fed’s fight against soaring inflation could lead to a recession in the United States, which could, in turn, hit a global economy still recovering from the Covid-19 pandemic.

“A slower global growth environment is not going away anytime soon and now we are clearly seeing broader signs of weakness for the US economy,” OANDA’s Edward Moya said in a note.

“Powell’s fight against inflation might send the US economy into a recession late next year, but for now he needs to stick to the hawkish script and leave all options of tightening on the table.”

– China stimulus –

Central banks around the world are trying to find a delicate balance between curbing inflation and avoiding recessions.

The challenge has been compounded this year by Russia’s invasion of Ukraine, which has sent energy and food prices skyrocketing.

Traders are also keeping an eye on how China will repair the economic damage from its strict Covid controls, a crisis in its property sector and power shortages caused by a record-breaking heatwave.

Fresh measures to shore up the economy were announced by China’s State Council on Wednesday, including steps to encourage lending, consumption and investment, according to the official Xinhua news agency.

They also included support for electricity producers and agriculture, two sectors hit especially hard by the heatwave, though Xinhua’s readout of the State Council meeting did not mention the extreme weather.

Crude traded higher Thursday with concerns building about global supplies after key exporter Saudi Arabia teased the possibility of production cuts and with talks ongoing about the resurrection of the Iran nuclear deal.

– Key figures at 0300 GMT –

Tokyo – Nikkei 225: UP 0.6 percent at 28,471.61

Hong Kong – Hang Seng Index: Shortened session to begin at 0500 GMT

Shanghai – Composite: UP 0.1 percent at 3,218.19

Euro/dollar: UP at 0.9984 from 0.9967 on Wednesday

Pound/dollar: UP at 1.1817 from 1.1797

Euro/pound: UP at 84.50 pence from 84.49 pence

Dollar/yen: DOWN at 136.81 yen from 137.06 yen

West Texas Intermediate: UP 0.6 percent at $5.45 per barrel

Brent North Sea crude: UP 0.7 percent at $101.93

New York – Dow: UP 0.2 percent at 32,969.23 points (close)

London – FTSE 100: DOWN 0.2 percent at 7,471.51 (close) 

European and US equities mostly advanced on Wednesday as investors awaited signals on coming Federal Reserve interest rate hikes.

With the Jackson Hole meeting of central bankers this week, focus is on what US Federal Reserve chief Jerome Powell will say Friday about the ongoing campaign to tackle high prices.

Many fear higher borrowing costs amid its battle to rein in inflation could send the world’s biggest economy into recession.

The euro sunk close to a two-decade low against the dollar before rebounding, and the greenback struck a two-year peak against China’s yuan.

European gas prices soared to more than 300 euros per megawatt hour just as equity markets closed, as another temporary cut off of Russian deliveries via pipeline to Germany approached.

US natural gas prices also continued to rise to post-2008 highs.

“European markets have traded in a lackluster manner today as higher gas prices serve to contain any attempt to push strongly higher,” said market analyst Michael Hewson at CMC Markets UK.

– ‘A lot of tightening’ –

On Wall Street, shares ended a three-day skid, with the broad-based S&P 500 rising percent, but expectations have been building ahead of Powell’s speech.

Oanda analyst Edward Moya said the “Fed still has a lot of tightening to do.”

“Today’s rebound is small and on light volume, which means most traders are playing the waiting game until Fed Chair Powell’s Jackson Hole Symposium speech,” he said.

“Powell’s fight against inflation might send the US economy into a recession late next year, but for now he needs to stick to the hawkish script.”

Central banks face a delicate balancing act between battling inflation — with Russia’s war in Ukraine sending energy prices soaring — and avoiding recession.

Yet concerns are growing that spiking energy costs could still prompt a worldwide downturn.

Key markets in Asia slid on Wednesday.

In Europe, London shed 0.2 percent but both Frankfurt and Paris posted modest gains.

– Rollercoaster ride –

The foreign exchange market has faced a rollercoaster ride so far this week.

The euro tumbled on Tuesday to $0.9901 — a new two-decade low — but later clawed back losses as the greenback was hit by tepid US economic data.

The dollar had strengthened this week ahead of Powell’s speech, amid prospects the Fed will continue to tighten its monetary policy.

Higher interest rates boost the American currency as they make dollar-denominated debt more attractive to investors.

But the euro also has been weighed down by a gloomy outlook for the eurozone economy, amid fears of a halt to Russia’s gas deliveries.

Oil prices wobbled following recent gains on talk of an OPEC output cut, with Brent crude pushing back above $100 a barrel.

Oil prices had dropped below $100 this month on worries of a global economic slowdown and the possibility of Iran reaching a deal on its nuclear program that would end international sanctions on its crude exports and boost global supply.

– Key figures at around 2000 GMT –

New York – Dow: UP 0.2 percent at 32,969.23 points (close)

New York – S&P 500: UP 0.3 percent at 4,140.77 (close)

New York – Nasdaq: UP 0.4 percent at 12,431.53 (close)

EURO STOXX 50: UP 0.3 percent at 3,667.46

London – FTSE 100: DOWN 0.2 percent at 7,471.51 (close) 

Frankfurt – DAX: UP 0.2 percent at 13,220.06 (close) 

Paris – CAC 40: UP 0.4 percent at 6,386.76 (close)

Tokyo – Nikkei 225: DOWN 0.5 percent at 28,313.47 (close)

Hong Kong – Hang Seng Index: DOWN 1.2 percent at 19,268.74 (close)

Shanghai – Composite: DOWN 1.9 percent at 3,215.20 (close)

Euro/dollar: UP at 0.9967 from 0.9970 on Tuesday

Pound/dollar: DOWN at 1.1797 from 1.1836

Euro/pound: UP at 84.49 pence from 84.23 pence

Dollar/yen: UP at 137.06 yen from 136.36 yen

West Texas Intermediate: UP 1.2 percent at $94.89 per barrel

Brent North Sea crude: UP 1.0 percent at $101.22

European and US equities mostly advanced on Wednesday as investors awaited signals on the next US interest rate hikes.

With the Jackson Hole meeting of central bankers this week, focus is on what US Federal Reserve chief Jerome Powell will say Friday about plans to tackle high prices.

Many fear higher borrowing costs could send the world’s biggest economy into recession in its battle to rein in inflation.

The euro fell close to a two-decade low against the dollar before rebounding to parity, and the greenback struck a two-year peak against China’s yuan.

European gas prices soared to more than 300 euros per megawatt hour just as equity markets closed, as another temporary cut off of Russian deliveries via pipeline to Germany approached.

– Losing momentum –

“European markets have traded in a lacklustre manner today as higher gas prices serve to contain any attempt to push strongly higher,” said market analyst Michael Hewson at CMC Markets UK.

“Markets seem to have lost their momentum,” noted AJ Bell investment director Russ Mould.

“Investors have become nervous once again, with all eyes on Powell and what he says this coming Friday.” 

Expectations have been building ahead of Powell’s speech.

“Those expectations range from fear of a resolutely hawkish speech to hope of a tempered rate-hike outlook,” said analyst Patrick O’Hare at Briefing.com.

Central banks face a delicate balancing act between battling inflation — with Russia’s war in Ukraine sending energy prices soaring — and avoiding recession.

Yet concerns are growing that spiking energy costs could still prompt a worldwide downturn.

Key markets in Asia slid on Wednesday.

In Europe, London shed 0.2 percent but both Frankfurt and Paris posted modest gains.

On Wall Street, the Dow added 0.4 percent in late morning trading.

– Rollercoaster ride –

The foreign exchange market has faced a rollercoaster ride so far this week.

The euro tumbled on Tuesday to $0.9901 — a new two-decade low — but later clawed back losses as the greenback was hit by poor US economic data.

The dollar had strengthened this week ahead of Powell’s speech, as markets speculate that the Fed will continue to tighten its monetary policy.

Higher interest rates boost the American currency as they make dollar-denominated debt more attractive to investors.

But the euro also has been weighed down by a gloomy outlook for the eurozone economy, amid fears of a halt to Russia’s gas deliveries.

Oil prices wobbled following recent gains on talk of an OPEC output cut, with Brent crude hovering just below $100 per barrel.

“While this may simply be a case of Saudi Arabia talking up the price, for now, the prospect of the group taking such action effectively removes two of the biggest downside risks for prices,” said OANDA analyst Craig Erlam.

Oil prices fell back under $100 per barrel this month on worries of a global economic slowdown and the possibility of Iran reaching a deal on its nuclear programme that would end international sanctions on its crude exports.

– Key figures at around 1530 GMT –

New York – Dow: UP 0.4 percent at 33,051.10 points

EURO STOXX 50: UP 0.3 percent at 3,669.85

London – FTSE 100: DOWN 0.2 percent at 7,471.51 (close) 

Frankfurt – DAX: UP 0.2 percent at 13,220.06 (close) 

Paris – CAC 40: UP 0.4 percent at 6,386.76 (close)

Tokyo – Nikkei 225: DOWN 0.5 percent at 28,313.47 (close)

Hong Kong – Hang Seng Index: DOWN 1.2 percent at 19,268.74 (close)

Shanghai – Composite: DOWN 1.9 percent at 3,215.20 (close)

Euro/dollar: UP at 0.9975 from 0.9970 on Tuesday

Pound/dollar: DOWN at 1.1804 from 1.1836

Euro/pound: UP at 84.48 pence from 84.23 pence

Dollar/yen: UP at 136.85 yen from 136.36 yen

West Texas Intermediate: DOWN 0.7 percent at $93.11 per barrel

Brent North Sea crude: DOWN 0.9 percent at $99.35

A strike over pay at Britain’s largest container port threatens to spark fresh delays and rising costs for companies and consumers alike, but logistics experts say there should be no product shortages.

Workers at Felixstowe port in southeastern England on Sunday began an eight-day strike, the first in 30 years, as decades-high inflation intensifies a cost-of-living crisis.

UK workers are striking in vast numbers as runaway inflation erodes wages at a record pace and is set to plunge the economy into recession.

“The strikes at Felixstowe are set to send some British businesses into a spin,” said Ed Winterschladen, executive vice president at Proxima, a logistics consultancy.

“The port is not just Britain’s largest, it is the largest by quite some margin as the port of entry for almost half of ocean freight into the UK,” he said, warning that delays “will have a sustained pricing impact in an already inflationary market”.

The dockers’ walkout mirrors similar action at the UK activities of US online giant Amazon and British postal operator Royal Mail. 

Those three strikes will together have a £1-billion ($1.2-billion) impact on trade and cause severe delays, according to delivery firm ParcelHero.

“The triple whammy of industrial actions at ports, postal networks and e-commerce giants means serious disruption,” said David Jinks, ParcelHero head of consumer research.

“Home deliveries will be affected, as will retailers waiting for new stock and manufacturers needing key components.

“Someone will have to foot the bill for all these increased transport costs and history tells us that it is usually the consumer.”

Felixstowe takes daily deliveries from nations such as China and Japan, with containers transporting everything from bicycles and frozen food to household appliances like fridges and washing machines.

They also carry key parts for manufacturers, so any major hold-ups could potentially worsen the nation’s post-Brexit supply-chain crunch.

– ‘Enough stock’ –

However, industry body the British International Freight Association (BIFA) insisted that it was “too early” to assess the impact of the port strike.

Some companies are far more flexible after increasing inventory levels in the face of supply-chain problems sparked by the pandemic.

However, BIFA conceded that past Felixstowe disruption has had a knock-on impact on freight transport and international supply chains.

Jonathan Owens, logistics expert at the University of Salford, gave an upbeat assessment barring any escalation in the dispute.

“The strike is a week and may not cause too much disruption as Felixstowe is not a ‘just-in-time’ delivery port. In general, everything arriving is scheduled in advance,” Owens told AFP.

“There should be enough stock in the supply chain to cope with key products.

“Should the strike progress go on beyond the current time or more disruption planned quickly after this strike period, then alternative inbound supply routes will be found.”

Many retailers have developed such contingency plans to reroute container ships or switch to other transportation, the British Retail Consortium (BRC) said.

Fresh food imports would not be affected because these tend to pass through the port of Dover, the BRC noted.

Nevertheless, the Felixstowe row presents a major headache for international freight.

Shipping giant Maersk said three of its ships have so far been diverted to other North European ports, before seeking to transfer cargo back to Britain.

“For affected export cargo from UK we have been offering our customers alternative ports and routings as far as possible,” a Maersk spokesman told AFP.

“It is hard for us to say whether any specific products will be missing in the supermarkets, etc.”

– Impasse –

Back in Felixstowe, discussions appear at an impasse between management and trade unions.

Nearly 2,000 unionised employees at the port in eastern England, including crane drivers, machine operators and stevedores, are involved in the first strike there since 1989.

Dockers want a 10-percent pay rise with inflation currently running at a 40-year high of 10.1 percent. 

The Port of Felixstowe described as “fair” its offer of salary increases of an average eight percent.

“The port regrets the impact this action will have on UK supply chains,” it added.

European and US equities moved sideways on Wednesday as investors awaited signals on the next US interest rate hikes.

With the Jackson Hole meeting of central bankers this week, focus is on what US Federal Reserve chief Jerome Powell will say Friday about plans to tackle high prices — with many fearing higher borrowing costs could send the world’s biggest economy into recession in its battle to rein in inflation.

The euro held close to a two-decade low against the dollar, and the greenback struck a two-year peak against China’s yuan.

European gas prices rose close to record intraday prices.

– Losing momentum –

“Markets seem to have lost their momentum,” noted AJ Bell investment director Russ Mould.

“Investors have become nervous once again, with all eyes on Powell and what he says this coming Friday.” 

Analyst Patrick O’Hare at Briefing.com said a mountain of expectations were building ahead of Powell’s speech.

“Those expectations range from fear of a resolutely hawkish speech to hope of a tempered rate-hike outlook,” he said.

Central banks face a delicate balancing act between battling inflation, with Russia’s war in Ukraine sending energy prices soaring, and avoiding recession.

Yet concerns are growing that spiking energy costs could still prompt a worldwide downturn.

“Investor anxiety is growing that a combination of central banks raising rates and higher energy prices will tip the global economy into a long recession,” said CMC Markets analyst Michael Hewson.

Key markets in Asia slid on Wednesday.

In Europe, London shed 0.5 percent but Frankfurt and Paris were broadly steady.

Wall Street opened narrowly mixed, with the Dow dipping 0.1 percent.

– Rollercoaster ride –

The foreign exchange market has faced a rollercoaster ride so far this week.

The euro tumbled on Tuesday to $0.9901 — a new two-decade low — but later clawed back losses as the greenback was hit by poor US economic data.

The dollar had strengthened this week ahead Powell’s speech, as markets speculate that the Fed will continue to tighten its monetary policy.

Higher interest rates boost the American currency as they make dollar-denominated debt more attractive to investors.

But the euro also has been weighed down by a gloomy outlook for the eurozone economy amid fears of a halt to Russia’s gas deliveries.

Oil was steady following talk of an OPEC output cut, with Brent crude hovering just above $100 per barrel.

“While this may simply be a case of Saudi Arabia talking up the price, for now, the prospect of the group taking such action effectively removes two of the biggest downside risks for prices,” said OANDA analyst Craig Erlam.

Oil prices fell back under $100 per barrel this month on worries of a global economic slowdown and the possibility of Iran reaching a deal on its nuclear programme that would end international sanctions on its crude exports.

– Key figures at around 1330 GMT –

London – FTSE 100: DOWN 0.5 percent at 7,454.51 points

Frankfurt – DAX: DOWN 0.1 percent at 13,179.98 

Paris – CAC 40: UP less than 0.1 percent at 6,364.87

EURO STOXX 50: UP less than 0.1 percent at 3,654.51

New York – Dow: DOWN 0.1 percent at 32,867.49

Tokyo – Nikkei 225: DOWN 0.5 percent at 28,313.47 (close)

Hong Kong – Hang Seng Index: DOWN 1.2 percent at 19,268.74 (close)

Shanghai – Composite: DOWN 1.9 percent at 3,215.20 (close)

Euro/dollar: DOWN at 0.9925 from 0.9970 on Tuesday

Pound/dollar: DOWN at 1.1763 from 1.1836

Euro/pound: UP at 84.38 pence from 84.23 pence

Dollar/yen: UP at 137.04 yen from 136.36 yen

West Texas Intermediate: UP less than 0.1 percent at $93.80 per barrel

Brent North Sea crude: UP less than 0.1 percent at $100.26

China’s autumn harvest is under “severe threat” from high temperatures and drought, authorities have warned, promising Wednesday fresh steps to protect crops in the face of the country’s hottest summer on record.

The world’s second-largest economy has been hit by record heat, flash floods and droughts this summer — phenomena that scientists say are becoming more frequent and intense due to climate change.

Southern China has recorded its longest continuous period of high temperatures since records began more than 60 years ago, the agriculture ministry said.

Four government departments urged the conservation of “every unit of water” to protect crops.

“The rapid development of drought superimposed with high temperatures and heat damage has caused a severe threat to autumn crop production,” a statement said Tuesday.

China produces more than 95 percent of the rice, wheat and maize it consumes, but a reduced harvest could mean increased demand for imports in the world’s most populous country — putting further pressure on global supplies already strained by the conflict in Ukraine.

State media reported Wednesday evening that the government had pledged 10 billion yuan ($1.45 billion) to help ensure good rice harvests this autumn.

A meeting of Beijing’s State Council, presided over by Premier Li Keqiang, had agreed the government should “do an even better job in fighting and reducing drought”, broadcaster CCTV said.

Officials also called for “a combination of measures to increase water sources to fight drought, first ensure drinking water for the people, ensure water for agricultural irrigation, and guide farmers to fight drought and protect autumn grain”, it added.

Temperatures as high as 45 degrees Celsius (113 Fahrenheit) have led multiple Chinese provinces to impose power cuts, as cities struggle to cope with a surge in demand for electricity partly driven by people cranking up the air conditioning.

The heat broke records in Sichuan, where a temperature of 43.9 degrees Celsius (111 Fahrenheit) was recorded Wednesday afternoon, the province’s Meteorological Service Centre said in a statement.

The megacities of Shanghai and Chongqing have turned off outdoor decorative lighting, while authorities in Sichuan have imposed industrial power cuts after water levels dropped at key hydroelectric plants.

The searing heat is also drying up the critical Yangtze River, with water flow on its main trunk about 50 percent lower than the average over the last five years, state media outlet China News Service reported last week.

– ‘Worst heatwave ever’ –

In Chongqing, where more than 1,500 people were evacuated from areas hit by multiple wildfires, locals were struggling.

“I feel too hot to sleep every night, and I’m awakened by the heat every morning,” Xu Jinxin, a 20-year-old student, told AFP.

“Because of the electricity shortage, we don’t leave the air conditioner on all day but rather turn it off once it’s cooled down a bit.”

The national meteorological service renewed warnings for drought and high temperatures on Tuesday, calling on 11 provincial governments to activate emergency responses.

Authorities have turned to cloud seeding — a method to induce rainfall — in parts of the country. 

CCTV published footage this month showing meteorological workers shooting catalyst rockets into the sky and firefighters transporting water to farmers in need.

It also broadcast images Wednesday of water trucks supplying people in villages in Sichuan and around Chongqing in a bid to counter shortages.

“The people with water supply difficulties in rural areas of Chongqing are mainly concentrated in mountain towns and relatively remote areas,” CCTV said.

“This is the worst heatwave ever recorded,” climate and energy expert Liu Junyan of Greenpeace East Asia told AFP.

“Climate science shows extreme heat is becoming exponentially worse,” she said.

“So it’s more likely that next year will have record-breaking heat.”

The extreme weather is raising public awareness of climate change in China, with state media “now coming around to covering climate impacts” with unprecedented urgency, Liu said.

Government climate expert Zhou Bing warned over the weekend of mass displacement caused by climate change, describing extreme weather as nature’s “revenge” on humanity.

China has experienced three other episodes of intense heat so far this century — in 2003, 2013 and 2017.

The gap between heatwaves is “significantly shortening”, according to Zhou.

For those living through the sweltering summer, “life goes on with some endurance”, said Xu, the Chongqing student.

Asian and European equities fell Wednesday as investors awaited news on the next US interest rate hikes.

With the Jackson Hole meeting of central bankers this week, focus is on what US Federal Reserve chief Jerome Powell will say about plans to tackle high prices — with many fearing higher borrowing costs could send the world’s biggest economy into recession in its battle to rein in inflation.

The euro held close to a two-decade low against the dollar, and the greenback struck a two-year peak against China’s yuan.

Oil extended gains on hopes of an OPEC output cut, while gas prices remain elevated on Russian supply tensions.

– Losing momentum –

“Markets seem to have lost their momentum,” noted AJ Bell investment director Russ Mould.

“Investors have become nervous once again, with all eyes on Powell and what he says this coming Friday.” 

Central banks face a delicate balancing act between battling inflation, with Russia’s war in Ukraine sending energy prices soaring, and avoiding recession.

Yet concerns are growing that spiking energy costs could still prompt a worldwide downturn.

“Investor anxiety is growing that a combination of central banks raising rates and higher energy prices will tip the global economy into a long recession,” said CMC Markets analyst Michael Hewson.

Wall Street ended mostly lower Tuesday, and key markets in Asia followed suit Wednesday.

– Rollercoaster ride –

The foreign exchange market has faced a rollercoaster ride so far this week.

The euro tumbled on Tuesday to $0.9901 — a new two-decade low — but later clawed back losses as the greenback was hit by poor US economic data.

The dollar had strengthened this week ahead Powell’s speech, as markets speculate that the Fed will continue to tighten its monetary policy.

Higher interest rates boost the American currency as they make dollar-denominated debt more attractive to investors.

But the euro also has been weighed down by a gloomy outlook for the eurozone economy amid fears of a halt to Russia’s gas deliveries.

– Key figures at around 1030 GMT –

London – FTSE 100: DOWN 0.3 percent at 7,463.45 points

Frankfurt – DAX: DOWN 0.2 percent at 13,168.54 

Paris – CAC 40: DOWN 0.1 percent at 6,358.94

EURO STOXX 50: FLAT at 3,652.24

Tokyo – Nikkei 225: DOWN 0.5 percent at 28,313.47 (close)

Hong Kong – Hang Seng Index: DOWN 1.2 percent at 19,268.74 (close)

Shanghai – Composite: DOWN 1.9 percent at 3,215.20 (close)

New York – Dow: DOWN 0.5 percent at 32,909.59 points (close)

Euro/dollar: DOWN at 0.9940 from 0.9970 on Tuesday

Pound/dollar: DOWN at 1.1784 from 1.1836

Euro/pound: UP at 84.37 pence from 84.23 pence

Dollar/yen: UP at 136.58 yen from 136.36 yen

West Texas Intermediate: UP 0.8 percent at $94.45 per barrel

Brent North Sea crude: UP 0.6 percent at $100.80

An Indian billionaire close to Prime Minister Narendra Modi is trying to buy a broadcaster seen as the last major critical voice on television, stoking fears about media freedom in the world’s largest democracy.

Under Modi, India has slipped 10 places in the Reporters Without Borders press freedom ranking to 150 out of 180, with critical reporters often finding themselves behind bars and hounded on social media by supporters of the ruling BJP.

Gautam Adani — Asia’s richest person, with interests ranging from Australian coal mines to India’s busiest ports — announced late Tuesday that his firm had indirectly acquired a 29-percent stake in NDTV and was bidding for a further 26 percent.

NDTV said that the move came “without any discussion” with the broadcaster, “or the consent of the NDTV founders”, journalist Radhika Roy and economist Prannoy Roy.

Its two channels, one in Hindi and one in English, stand out among India’s myriad rolling news broadcasters for inviting on critics of the government as well as their hard-hitting reporting.

It has already been hit by a slew of legal cases that its owners said were a result of its reporting.

On Wednesday morning an employee at NDTV told AFP that there was a “general sense of shock and disbelief” in the newsroom following the announcement.

“We only found out from other news agency flashes and channels about the takeover and then all hell broke loose,” the employee said, asking to remain anonymous.

“People are still trying to figure out what has happened and what will happen. There is a sense of uncertainty since it is only a matter of time till the new management comes in.”

Geeta Seshu, founder of the Free Speech Collective, an independent organisation that advocates press freedom, said that “the space for independent journalism has shrunk alarmingly over the last few years.”

“The few brave journalists who continue to put out information are also battling court cases, are lodged in jail for long periods without bail, attacked or silenced permanently,” Seshu told AFP.

– Self-made billionaire –

Seshu said that while NDTV has been “struggling” commercially for some time, “the manner of this takeover is shocking, given the naked display of economic and political muscle”.

The Adani group’s closeness to the government was “hardly a secret”, she added. 

Self-made billionaire Adani, 60, this year overtook fellow Indian Mukesh Ambani to become Asia’s richest man, with a net worth of $139 billion according to Forbes, behind Jeff Bezos and ahead of Bill Gates.

Modi and Adani both come from the western state of Gujarat, and the latter’s conglomerate has expanded aggressively in recent years, including into new areas like airports and renewable energy.

But this growth into capital-intensive businesses has raised alarms, with Fitch Group’s CreditSights warning on Tuesday that the group was “deeply overleveraged”.

Ambani’s wealth and influence have also grown under Modi — he now owns more than 70 media outlets that are followed by at least 800 million Indians, according to Reporters Without Borders.

This includes a majority stake in Network18, one of the biggest media conglomerates in the country, which owns several leading broadcasters.

– ‘Oligarchs’ –

NDTV’s integrity has been a bright spot in a media landscape compromised by increasing corporate control, said P Sainath, the founder and editor of the grassroots reporting network People’s Archive of Rural India. 

“Under the circumstances and under the pressure they’ve worked in, they really stand out,” he said.

Hartosh Singh Bal, journalist at Caravan magazine — a rare critical voice among print media — said the takeover could bring the curtain down on “the only channel left that could be called partly independent”.

“The government influence on the media is growing. The control of what I call oligarchs — the Adanis and the Ambanis — is also growing and it will keep on growing,” he told AFP.

“This (takeover) means there is almost no independent media left and that shrinking space is extremely dangerous.”

Asian markets were mostly lower on Wednesday as investors await news on the next US interest rate hikes.

With the Jackson Hole meeting of central bankers this week, focus is on what US Federal Reserve chief Jerome Powell will say about plans to tackle high prices — with many fearing officials could send the economy into recession in its battle to rein in inflation.

The Fed “is probably going to use this weekend to reiterate the fact that rates have more room to climb because they really want to bring inflation down,” Kelvin Tay, Asia-Pacific chief investment officer at UBS Global Wealth Management, told Bloomberg TV.

Central banks face a delicate balancing act between battling inflation, with Russia’s war in Ukraine sending energy prices soaring, and avoiding recession.

“With European gas prices continuing to trade at record highs, investor anxiety is growing that a combination of central banks raising rates and higher energy prices will tip the global economy into a long recession,” said CMC Markets analyst Michael Hewson.

Wall Street ended mostly lower, and key markets in Asia followed suit.

Tokyo started in positive territory but the upward drive was short-lived.

“Lingering worries over US rate hike plans weighed on the market,” said Hiromi Kanamaru, senior strategist at Daiwa Securities.

Tokyo closed down 0.5 percent and Hong Kong, Shanghai and Taipei also fell while Seoul, Sydney and Wellington rose.

The decline continued in Europe, with London down 0.4 percent in opening deals while Frankfurt and Paris were both off 0.2 percent.

“Asian markets have turned risk-averse ahead of the Jackson Hole meeting,” Natixis economist Gary Ng said.

“Hong Kong and China stock markets continue to perform weaker than Asian peers as they face higher uncertainties.” 

– Euro hits new 20-year low –

The euro tumbled to $0.9901 — a new two-decade low — on Tuesday but later clawed back losses as the greenback was hit by poor US economic data.

The dollar had strengthened this week ahead of a speech Friday by Powell, as markets speculate that the Fed will continue to tighten its monetary policy.

Higher interest rates boost the American currency as they make dollar-denominated debt more attractive to investors.

But the euro also has been weighed down by a gloomy outlook for the eurozone economy with energy prices soaring.

– Key figures at around 0830 GMT –

Tokyo – Nikkei 225: DOWN 0.5 percent at 28,313.47 (close)

Hong Kong – Hang Seng Index: DOWN 1.2 percent at 19,268.74 (close)

Shanghai – Composite: DOWN 1.9 percent at 3,215.20 (close)

London – FTSE 100: DOWN 0.5 percent at 7,446.95 

Euro/dollar: DOWN at 0.9947 from 0.9951 

Pound/dollar: UP at 1.1824 from 1.1813

Euro/pound: DOWN at 84.12 pence from 84.23 pence

Dollar/yen: DOWN at 136.49 yen from 136.79 yen

West Texas Intermediate: UP 1.16 percent at $94.82 per barrel

Brent North Sea crude: UP 1.37 percent at $101.49

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China’s autumn harvest is under “severe threat” from high temperatures and drought, authorities have warned, urging action to protect crops in the face of the country’s hottest summer on record.

The world’s second-largest economy has been hit by record temperatures, flash floods and droughts this summer — phenomena that scientists have warned are becoming more frequent and intense due to climate change.

Southern China has recorded its longest sustained period of high temperatures and sparse rain since records began more than 60 years ago, the agriculture ministry said.

Four government departments issued a notice on Tuesday urging the conservation of “every unit of water” to protect crops.

“The rapid development of drought superimposed with high temperatures and heat damage has caused a severe threat to autumn crop production,” the statement said.

China produces more than 95 percent of the rice, wheat and maize it consumes, but a reduced harvest could mean increased demand for imports in the world’s most populous country — putting further pressure on global supplies already strained by the conflict in Ukraine.

Temperatures as high as 45 degrees Celsius (113 degrees Fahrenheit) have led multiple Chinese provinces to impose power cuts, as cities struggle to cope with a surge in demand for electricity that is partly driven by people cranking up the air conditioning.

The heat broke records in the province of Sichuan, where a temperature of 43.9 degrees Celsius (111 degrees Fahrenheit) was recorded on Wednesday afternoon, the province’s Meteorological Service Centre said in a statement.

The megacities of Shanghai and Chongqing have turned off outdoor decorative lighting, while authorities in Sichuan have imposed industrial power cuts after water levels dropped at key hydroelectric plants.

The searing heat is also drying up the critical Yangtze River, with water flow on its main trunk about 50 percent lower than the average over the last five years, state media outlet China News Service reported last week.

– ‘Worst heatwave ever’ –

In Chongqing, where more than 1,500 people were evacuated after hot and dry conditions sparked multiple wildfires, locals were struggling.

“I feel too hot to sleep every night, and I’m awakened by the heat every morning,” Xu Jinxin, a 20-year-old student, told AFP.

“Because of the electricity shortage, we don’t leave the air conditioner on all day but rather turn it off once it’s cooled down a bit.”

The national meteorological service renewed its warnings for drought and high temperatures on Tuesday, calling for 11 provincial governments to activate emergency responses.

Authorities have already turned to cloud seeding — a method to induce rainfall — in parts of the country. 

State broadcaster CCTV published footage this month showing meteorological staff shooting catalyst rockets into the sky and firefighters transporting water to farmers in need.

“This is the worst heatwave ever recorded,” climate and energy expert Liu Junyan of Greenpeace East Asia told AFP.

“Climate science shows extreme heat is becoming exponentially worse,” she said.

“So it’s more likely that next year will have record-breaking heat.”

This year’s extreme weather is raising public awareness of climate change in China, with state media “now coming around to covering climate impacts” with unprecedented urgency, Liu said.

Government climate expert Zhou Bing warned over the weekend of mass displacement caused by climate change, describing extreme weather as nature’s “revenge” on humanity.

China has experienced three other episodes of intense heat so far this century — in 2003, 2013, 2017.

The gap between heatwaves is “significantly shortening”, according to Zhou.

For those living through the sweltering summer, “life goes on with some endurance”, said Xu, the Chongqing resident.