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China has received a wave of requests for debt relief from crisis-affected countries included in the “Belt and Road Initiative” as coronavirus affects the world’s largest development agenda.
Chinese political advisers and bankers told the Financial Times that Beijing was considering a series of responses, including suspending interest payments on loans from the country’s financial institutions. But they also warned against expectations that China would forgive debts entirely.
“We understand that many countries are seeking to renegotiate the terms of the loans,” said a researcher with the China Development Bank, a Chinese “policy bank” that, along with the China Export-Import Bank, heads hundreds of thousands of millions of dollars in loans. to BRI projects around the world.
“But it takes time to reach a new agreement and we can’t even travel abroad at this time. BRI loans are not foreign aid. We need to at least recover the capital and a moderate interest, “said the researcher, who did not want to be identified. (FOOT)
Coronavirus Digest
Academics are investigating the links between the coronavirus and toxic air pollution. Follow our outbreak tracker and live coverage here.
In the news
US stocks rebound despite jobless claims US stocks are on the verge of their biggest monthly recovery since 1987, even as more than 3.8 million Americans filed new claims for unemployment benefits last week. States are struggling to keep up with claims as the total of six weeks since the blockades began exceeds 30m. (FT, Wall Street Journal)
Reliance launches India’s biggest rights issue Reliance Industries announced India’s biggest rights issue in a $ 7 billion fundraising campaign that is designed to reduce its huge debt as demand for its oil and chemical staples collapses. (FOOT)
The ECB will lend to banks at very low rates The European Central Bank has expanded its loans to banks at very low rates after data released on Thursday showed that the eurozone economy slowed at the fastest rate recorded in the first quarter. (FOOT)
Profit winners Amazon reported record sales in the first quarter, but warned it could spend $ 4 billion on Covid-19 expenses in the next quarter. With demand for comfort food amid blockages, Kraft Heinz revealed its biggest increase in quarterly sales. Microsoft’s cloud business sustained revenue growth of 15 percent as Silicon Valley survives the advertising collapse of the pandemic. (FOOT)
Profit losers Shell became the first oil “super major” to cut its dividends, as profits fell nearly 50 percent compared to the same period in 2019. BP saw a two-thirds drop. SoftBank warned of an amortization of more than $ 9.6 billion in investments held outside its Vision Fund. (FOOT)
Australia’s largest pension fund expects large withdrawals AustralianSuper expects an emergency cash withdrawal of $ 4 billion ($ 2.6 billion) from members to help them overcome the coronavirus crisis, but its executive vice president argues that neither he nor the industry at large will face problems in meeting those redemptions. (FOOT)
Norway to reduce oil production by 13% Norway will cut its oil production for the first time in 18 years, as Western Europe’s largest oil producer moves to respond to falling demand for fuel related to the coronavirus. (FOOT)
Weak support for Goldman Sachs salary vote Goldman Sachs’ decision to reward CEO David Solomon with a 20 percent salary increase during his first full year at the helm sparked a strong reprimand from shareholders frustrated with years of underperformance and worried about an impending recession. (FOOT)
Which world leader welcomed a new family member this week? Jair Bolsonaro? Mette Frederiksen? Boris Johnson? Take our exam.
The days to come
Berkshire Hathaway shareholders’ meeting Warren Buffett, Berkshire president and chief executive, has been remarkably quiet about the pandemic, but will join Greg Abel, a Berkshire vice president, to answer questions from shareholders on Saturday. (Reuters)
Earnings report America’s top oil producers, ExxonMobil and Chevron, reported Friday. Among pharmaceutical companies, AbbVie’s acquisition of Allergan, which is nearing completion, will also be in focus. (FOOT)
What else are we reading?
India’s next crisis: hunger Life has never been easy for India’s vast army of poor workers. But an estimated 140 million have lost their jobs under strict anti-coronavirus measures, and temporary community kitchens are creating queues that evoke the Great Depression. (FOOT)
Satya Nadella calls for a coordinated digital response The challenges we face require an unprecedented partnership between business and government, writes Microsoft’s chief executive. We need rebels, but we also need more coordinated combinations of government and industry that respond and innovate. (FOOT)
How the coronavirus disrupted America’s health system The United States spends far more on health care than any other country: $ 3.6bn a year. But as the coronavirus spread across the country, it also devastated its health system, exposing profound disparities and leaving hospitals short of cash. (FOOT)
Choose which restaurants to check The food should be good, as should the wine list, but above all, Nicholas Lander likes restaurants with character and charm. But for now, many of us stay home cooking while the outside world falls apart. (FT, The New Republic)
Jared Kushner’s Golden Age George W. Bush declared mission accomplished in Iraq just before the war fell off a cliff. Jared Kushner, Donald Trump’s son-in-law, just played the same game with the coronavirus, writes Edward Luce. By the time we get over the current crisis, Martin Sandbu offers ideas on how to rebuild better job markets at the start of a three-part series on Free Lunch. (FOOT)
From the future of Big Tech. . Margrethe Vestager, the EU’s chief competition officer, often disagrees with tech giants like Google and Apple. But as Silicon Valley emerges as a powerful resource for contact tracing, Vestager is cautiously optimistic. (New Yorker)
. . . towards the future of books The pandemic has accelerated change in the industry. The closure era tells the story of postponed book launches, canceled events, and disappearing sales figures, but also one of growth in the industry’s digital revolution. (FOOT)
Say “Yes” in ZoomWith many couples having to postpone their big day, New York Governor Andrew Cuomo has authorized virtual weddings. Dress code: “Formal zoom, pants optional”. Read more stories of lives locked up in our coronavirus journal series, the latest featuring an art director and kart-track operator. (BuzzFeed News, FT)
FT Digital Dialogues: The Global Boardroom
The FT, in partnership with TNW, will bring together leading global decision makers and leaders in politics, business, technology and finance from May 12 to 14 during three days of online conversations with leading FT journalists to discuss the economic impact of the pandemic and what is required for recovery.
Speakers include Andrew Bailey, Governor of the Bank of England; Kristalina Georgieva, Managing Director of the IMF; Soumya SwaminathanWHO chief scientist; David Miliband, President and CEO of the International Rescue Committee; David Rubenstein, Founder of Carlyle and Executive Co-President and Editor of FT Roula Khalaf .
The event is free to join. Sign up at globalboardroom.ft.com.
Video of the day
Coronavirus webcamsThe FT takes you on a world tour from sunrise to sunset in a single day, using trained webcams at tourist spots, construction sites, traffic crossings, and the natural world. (FOOT)
