Live news updates: Evergrande vows to ‘vigorously’ oppose liquidation petition

Crypto Exchange Voyager Issues Default Notice to Three Arrows Capital

Singapore-based cryptocurrency hedge fund Three Arrows Capital received a default notice on Monday as the industry’s biggest companies reel from an episode of market volatility and corporate meltdowns.

Cryptocurrency exchange Voyager Digital said it had issued the notice after the fund defaulted on payments on a loan worth 15,250 bitcoins and $350 million worth of USD Coin, a stablecoin pegged to the US dollar. Total liabilities amount to more than $650 million.

Shares of Voyager Digital plunged more than 60 percent last Wednesday after the crypto broker disclosed its loan to Three Arrows.

The prominent cryptocurrency hedge fund was thrown into crisis after it failed to meet lenders’ demands to amass additional funds as its digital currency bets soured. Their problems arise when a credit crisis grips the industry.

Voyager added that it was able to continue operating thanks to a $75 million loan from crypto market trading firm Alameda Research.

“We are working diligently and quickly to strengthen our balance sheet and look at options so that we can continue to meet customer demands for liquidity,” said Stephen Ehrlich, CEO of Voyager.

China Evergrande vows to “strongly” oppose liquidation petition

China Evergrande Group’s Life in Venice real estate and tourism development in Qidong, Jiangsu province © Qilai Shen/Bloomberg

China Evergrande, the world’s most indebted property developer, said it would “strongly” oppose a liquidation petition filed by one of its creditors on Tuesday, the latest sign of investor pressure on the group since it was formally declared in default. in December. .

The petition was filed in the Hong Kong High Court by Top Shine Global, an investment holding company, and relates to an obligation worth HK$862.5mn (US$109.9mn), Evergrande said.

Evergrande said it did not expect the request to affect its restructuring plan or timetable, which it plans to publish by the end of next month.

Investors have closely watched signs of progress in Evergrande’s protracted restructuring and default process, with international groups making various moves to recoup their debts, including property seizures and threats of legal action.

The liquidation petition, the first such petition disclosed by Evergrande, is the latest sign of pressure from the company’s creditors.

The company added that, if the petition is successful, any disposition of ownership, transfer of shares or changes in the status of the members of the company made after the filing of the petition on Friday of last week will be without effect.

What to see in Asia today

Australia-Malaysia: Australian Foreign Minister Penny Wong will visit Malaysia to meet with her counterpart Saifuddin Abdullah, Defense Minister Hishammuddin Hussein and Trade and Industry Minister Azmin Ali.

NATO: Officials will meet in Madrid on Tuesday for three days of discussions, including NATO expansion following Russia’s invasion of Ukraine. One issue on the agenda is whether the group should respond to China’s growing global influence.

Markets: US stocks fell on Monday after Asia-Pacific stocks posted strong gains boosted by Shanghai’s declaration of victory over the coronavirus outbreak and easing of concerns about the risk of aggressive interest rate hikes. Investors in Chinese markets will be watching for any signs of how long the country’s zero-Covid policy might last, after an allegedly erroneous report that Beijing would continue to carry out mass testing of its population for the next five years. Monday. Australian and Japanese stocks rose on Tuesday morning, but futures in Hong Kong pointed lower.

The G7 is ready to explore caps on energy prices to curb Russia’s income

Ukrainian President Volodymyr Zelenskyy speaks via video link to the G7 leaders meeting in Germany

Ukrainian President Volodymyr Zelenskyy speaks via video link at the G7 leaders’ meeting in Germany © Christian Bruna/EPA/Getty Images

G7 members will explore ways to cut energy costs, including through possible oil and gas price caps, at a summit that has been overshadowed by fears of a recession induced by rising inflation. .

On Monday night, officials agreed to the summit’s conclusions that seek to develop solutions to reduce Russia’s hydrocarbon revenues and minimize the negative impacts of high energy prices, the officials said.

According to a draft text seen by the Financial Times, leaders will explore the “feasibility” of introducing temporary caps on energy import prices, a reference to a US-led push for an oil price cap. Russian. A G7 official earlier said capitals agreed it was a good idea, but there was “a huge amount of work” to be done to make it a reality.

G7 leaders were meeting four months after a war in Ukraine has pushed up food and fuel prices, sparking fears of a global recession. The summit, hosted by Germany in the Bavarian Alps, will conclude on Tuesday.

The move on Russian oil price ceilings comes alongside a French proposal for more global oil production, an idea that came as G7 leaders sought ways to ease the looming energy crisis and relieve pressure on importing economies. of energy.

Read more about the G7 meeting here

France pushes higher oil production

French President Emmanuel Macron

French President Emmanuel Macron speaks on the phone during the G7 leaders’ summit in the Bavarian resort of Schloss Elmau © Lukas Barth/Reuters

Emmanuel Macron called for more oil production around the world as the French president sought ways to lower the cost of energy and ease pressure on energy-importing economies.

Macron made his proposal to other G7 leaders as they seek to work out the details of a price cap on Russian oil that is aimed at lowering costs and curbing rising inflation.

The French president said the price ceiling should apply to all producers in the world, and not just Russia, but did not explain how it would work, according to officials familiar with the discussions.

A French official later said the idea was “not a global price cap” but a way to moderate prices through higher oil production. In particular, France wants to explore ways to bring production from Venezuela and Iran, both subject to US sanctions, back onto the market.

US President Joe Biden has already courted the authoritarian regime of Nicolás Maduro in Venezuela in an attempt to cool down the oil market.

France’s interventions underscore the deep alarm among G7 leaders about the economic toll on their economies. They have spent their summit at Schloss Elmau debating ways to cut energy costs, with the dialogue focusing on US pressure for a ceiling on the price of Russian oil.

Officials are still working out the details of the discussed price cap on Russian crude, which would be enforced through limits on the availability of European services, including insurance for Russian oil shipments.

Additional reporting by David Sheppard in London

Nike Announces New Buyback Program After Quarter That Beat Forecasts

An illuminated Nike logo in Beijing

Nike’s revenue for its fiscal fourth quarter fell 1% to $12.2 billion, while net income fell 5% to $1.4 billion. © Tingshu Wang/Reuters

Nike beat Wall Street expectations for its most recent quarter, posting smaller-than-anticipated declines in revenue and profit, and launched a new share buyback program on continued demand for the shoe giant’s products.

The world’s largest sportswear maker by revenue said its direct-to-consumer sales rose 7 percent for the three months ended May 31 as wholesale revenue fell by the same margin, a continuation of the Nike’s multi-year efforts to shift its business online and stop selling through department stores.

Compared to the same period a year ago, Nike’s revenue for its fiscal fourth quarter fell 1 percent to $12.2 billion, while net income fell 5 percent to $1.4 billion. Analysts surveyed by S&P Capital IQ anticipated revenue of $12.1 billion and net income of $1.3 billion.

The company said its direct-to-consumer sales were strongest in the Europe, Middle East and Africa, Asia-Pacific and Latin America and North America region, although such sales fell in China. Chief Executive John Donahoe said the results indicated “our strategy is working.”

Nike’s board of directors has authorized a new four-year, $18 billion share buyback program to replace an existing $15 billion scheme set to end in the next fiscal year. Shares of Nike initially rose as much as 2 percent in after-hours trading, but pulled back and held slightly above their closing price of $110.50 on Monday.

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