Daily Picks Friday: At Last, Some Greek Relief
June 22, 2018
5 Min Read
At last - some Greek relief
- Greece will be able to borrow from financial markets again when it ends its bailout programme in August, after euro zone finance ministers agreed to some initial debt relief and an extra cash injection.
- The IMF welcomed the deal but has expressed reservations about Greece's future, raising questions about whether it can sustain its debt mountain over the long term.
Airbus says no-deal Brexit would force it to reconsider UK presence
- The plane builder which makes wings for its passenger jets in the UK, said that leaving both the EU's single market and customs union immediately without any transition agreed would lead to severe disruption of UK production.
- "Put simply, a no-deal scenario directly threatens Airbus' future in the UK," Tom Williams, CEO of Airbus Commercial Aircraft.
- He said Airbus is accelerating measures to reduce risks, but did not elaborate.
- Siemens also made similar claims earlier this week, saying they need immediate details on how its operations would need to be organised.
- Analysts say Airbus would be unlikely to pull out of the UK abruptly due to long lead times and waiting lists for its planes, but could consider moving wings for the next generation of single-aisle jets, sometime in the middle of next decade.
- Germany, Spain or emerging suppliers such as South Korea are possible candidates to take work from the UK.
Nearly 1,200 Chinese Companies Caught Falsifying Financials in 2018
- 1,195 companies and 2,775 investment projects falsified their books by overstating their earnings or hiding losses.
- At a time when Beijing is attempting to control debt risks and ensure transparency in its financial system, the figures illuminate an unsettling issue: the possibility of endemic cheating among Chinese businesses.
- Nearly 80% of the scrutinised records were found to contain falsities.
- Local statistics agencies, which are charged with ensuring the accuracy of companies' books, were also found to err in their audits. Lost data, duplicated reports, and inflated financial figures to fulfil projected estimates, snowballing into years of false accounting.
- As a result of financial fraud, earlier this year, Tianjin's Binhai New District, where the Lingang Economic Zone is located, adjusted its 2016 regional GDP to 665.4 billion yuan ($102.8 billion), from previously reported 1,000.2 billion yuan.
- Chinese firms continues to raise suspicion with U.S. investors as Chinese entities were repeatedly found to overstate profit and revenue, and to bypass the complex process of going public in New York by forming reverse mergers with public shell companies.