Broad China Selloff Drags Down Alibaba, European Gas Prices Down, Goldman Sachs Aim To Increase Investment In China, Race For Next U.K PM
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Summary:
- Alibaba stock tanks on Monday.
- Warmer weather prospects driving NGAS down.
- Goldman Sachs has established a new joint venture in China.
- Rishi Sunak on track to become the next U.K Prime Minister.
Markets reacted to President Xi Jinping’s re-election
As markets reacted to President Xi Jinping consolidating power following his historic confirmation to a third term as head of the second-largest economy in the world, shares of Chinese corporations were falling on Monday. Alibaba (ticker: BABA) lost 12% in premarket trade in the United States. Investors are spooked by President Xi Jinping's increasing control over China's ruling party as he begins a record-setting third term with no apparent successor.
In addition, the 14th edition of the 11.11 Global Shopping Festival ("11.11" or "Festival"), which will feature more than 290,000 brands, was formally launched today by Alibaba Group Holding Limited.
âš ï¸BREAKING:
— Investing.com (@Investingcom) October 24, 2022
*ALIBABA STOCK PLUNGES 11% IN HONG KONG AMID BROAD CHINA SELLOFF$BABA 🇨🇳ðŸ‡ðŸ‡° pic.twitter.com/qd0XErYE4B
European gas prices fall as supply prospects improve
Following predictions of warmer-than-usual weather for the majority of the continent over the coming week, European natural gas futures fell once again during the opening hours of trading on Monday.
Weather predictions that continental Europe will see temperatures this week that are between 4 and 8 degrees Celsius warmer than the seasonal norm, predicting reduced demand and enabling importers to continue injecting excess gas into storage, served as the primary impetus for the decision.
​​In order to relieve the pressure brought on by Russia's effective supply suspension, Europe has been able to fill its storage facilities ahead of schedule thanks to a mild start to the winter heating season and aggressive buying of liquefied natural gas on spot markets.
EU storage facilities were 93.4% full as of Sunday, with the two largest markets on the continent, Germany and Italy, posting even higher levels.
âš ï¸BREAKING:
— Investing.com (@Investingcom) October 24, 2022
*EUROPEAN GAS PRICES TUMBLE TO LOWEST SINCE JULY ON EASING SUPPLY FEARS
🇪🇺🇪🇺 pic.twitter.com/nGg49xSG1T
Goldman Sachs’ new joint venture
In an effort to increase investment in Chinese logistics and infrastructure real estate assets, Goldman Sachs has established a joint venture in China with local logistics firm Sunjade, the U.S. bank announced on Monday.
According to a company release, the bank is creating the new subsidiary through its investment arm Goldman Sachs Asset Management, which has made more than $50 billion in real estate-related investments worldwide. The stock structure or the amount of money committed to the platform were not disclosed.
The joint venture has invested in a 240,000 square meter project with four institutional-grade warehouse assets in Shanghai and the surrounding region. The joint venture focuses on projects in China's first-tier cities and neighboring areas.
The new platform, according to the U.S. bank, will profit from China's growing demand for brand-new, high-quality infrastructure assets, particularly institutional-quality storage space driven by e-commerce and the diversification of industrial requirements supported by government policies.
Goldman Sachs launches Chinese infrastructure real estate joint venture https://t.co/HdGJm9ExlH pic.twitter.com/mmj53hkACz
— Reuters Business (@ReutersBiz) October 24, 2022
Rishi Sunak on track to be next U.K PM
After Boris Johnson withdrew from the race on Sunday night and the markets breathed a sigh of relief, Rishi Sunak, a former chancellor, was on track to become the new prime minister of Britain on Monday.
After the likelihood of further imminent political and economic unrest decreased, the value of the pound increased on Monday. Johnson, who was having trouble gaining support, acknowledged that due to divisions among Tory MPs, even if he had won, he could not have governed "effectively."
If Penny Mordaunt, the leader of the Commons and his sole remaining competitor, is unable to secure the necessary 100 nominations from Tory MPs, Sunak will take over as the party's leader at 2 p.m. on Monday.
Rishi Sunak’s priority should be to restore stability and the UK’s reputation https://t.co/WLKJCGg49X
— Financial Times (@FT) October 24, 2022
Sources: finance.yahoo.com, ft.com, twitter.com
