What Businesses Can Learn from Antony Blinken’s China Trip

Hope but little details

Stocks and U.S. futures fell Tuesday morning on concerns over China’s economic recovery, even though China’s supreme leader Xi Jinping and Secretary of State Anthony Brinken were scheduled to meet in Beijing on Monday.

The debate raised hopes that the world’s two largest economies might stabilize relations, but the market reaction presents a more serious challenge for policymakers and businesses.

Mood music was positive. Xi said the two countries had made “progress,” while President Biden told reporters in California that Mr. Blinken had done an “amazing job.” But the fact that just talking can generate such excitement is a sign of how strained the relationship is. There were no agreements or details on the most controversial issue, namely limiting China’s access to advanced technology. Accusations that the United States and its allies want to contain Beijing’s ambitions. Taiwan; war in Ukraine;

‘Distrust remains high’ Noah Birkin, a China relations expert at research firm Rhodium Group, said: “For foreign investors, this is not enough to trigger any rethinking regarding the Chinese market.” He said the Biden administration will continue to review strategic investments in China, and the Chinese government has shown no signs of easing pressure on foreign companies doing business in the country.

Business is derisking, not decoupling. RaytheonCEO Greg Hayes said it was “impossible” to exit China entirely given the complexity of its supply chains and the level of trade with the United States. AstraZeneca The company is reportedly considering a spin-off of its China unit, according to the Financial Times.

China also has major concerns at home. The country’s central bank cut its prime lending rate today and Goldman Sachs cut its growth outlook for the country over the weekend. “For business, the issue is not Sino-US relations per se, but rather the very worrying state of the Chinese economy right now. It’s been one of the main issues that has created a China that shows only a few compromises,” said Kelly Brown, Professor of Chinese Studies at King’s College London. Former British diplomat in Beijing.

Yu Jie, a China expert at British think tank Chatham House, added that Xi “expects Western companies to be part of the plan to create much-needed growth and jobs.” .

what to watch next? Chinese Premier Li Qiang arrived in Germany this week to begin his European tour, his first overseas trip since becoming China’s second senior leader earlier this year. China is Germany’s biggest trading partner and, along with France, which Mr. Li visits later this week, is also an ally of the United States seeking other avenues for relations with China and the United States.

And Indian Prime Minister Narendra Modi is scheduled to visit Washington as a state guest this week to find out how the Biden administration is trying to persuade its allies to take on China.

Other Chinese news says:

• Alibaba’s Hong Kong-listed shares closed 1.5% lower after the e-commerce giant announced that Daniel Zhang would step down as chief executive officer and chairman. The company announced earlier this year that it would split into six divisions.

• Reportedly, Beijing planning to build a military training facility A possible Chinese military presence 160 miles off the coast of Florida has alarmed Washington, according to The Wall Street Journal.

what is going on here

More light has been shed on Jeffrey Epstein’s relationship with Jess Staley and JPMorgan Chase. The 22-page document is a compilation of emails between the convicted sex offender and Staley, a former JP Morgan executive who was his primary contact at the bank, and said Epstein was accused by Chinese authorities of It shows how he advised Mr. Staley on many issues such as meeting and dealing with people. . JPMorgan has said Staley is responsible for maintaining the relationship with Epstein.

Adobe’s proposed $20 billion acquisition of Figma is reportedly facing EU scrutiny. European antitrust regulators are preparing to: launch a formal investigation According to the Financial Times, he participated in the deal. (Figma is Adobe’s rival in cloud-based design software.) The deal has already met with skepticism from US and UK regulators.

Lazard is said to have discussed a sale with the Abu Dhabi sovereign wealth fund. investment bank Had a meeting with ADQ earlier this yearis a state-funded instrument, reports the Financial Times. The talks, which are no longer taking place, reflect the ambitions of wealthy Middle Eastern investors to diversify their economies beyond oil.

Berkshire Hathaway doubles in Japan. Warren Buffett’s conglomerate said Monday it had bought more shares Among Japan’s five major trading companiessuggested that further progress could be made. The Nikkei-listed stock has outperformed the S&P 500 and most other major indexes this year, thanks to investor enthusiasm for Japan’s economic recovery.

Dangers of underwater rescue operations

Rescue teams continue to search for the missing submarine near the wreckage of the Titanic on Sunday, and are racing against time to find it in the vast ocean.

The submarine’s disappearance is a reminder of the risks involved in the extreme tourism business, especially with space exploration companies such as Virgin Galactic and Jeff Bezos’ Blue Origin flying.

Time is running out. Coast Guard officials estimated that the Titan submarine, which disappeared Sunday morning, theoretically had between 70 and 96 hours of airtime as of late yesterday afternoon. (That is, if the hull is intact.) Among the five people on board were wealthy British adventurer and airline executive Hamish Harding and French Titanic expert Paul-Henry Narjolet. includes Mr.

American and Canadian aircraft and merchant ships searched Titan while sonar buoys were deployed. But how difficult it is to find the vehicle and rescue its occupants is well explained here.

The business of exploring extremes is booming. Oceangate Expeditions, which operates the Titan, is charging up to $250,000 per seat for Titanic Undersea Ruins tours starting in 2021.

Wealthy vacationers have long taken glamorous risks, such as climbing Mount Everest or swimming with great white sharks, but the richest are increasingly flocking to the frontiers that space travel offers. rice field. Richard Branson’s Virgin Galactic (not to be confused with the failed Virgin Orbit) sells tickets for suborbital flights. $450,000 per carOn the other hand, one ticket for last year’s Blue Origin flight was sold for $1.25 million. (Harding has previously flown on a Blue Origin rocket.)

UTA Makes Bigger Sports Betting

United Talent Agency, which has A-list clients ranging from actor Timothée Chalamet to singers Post Malone and Lizzo, has acquired James & Co., a focused executive search firm, for an undisclosed amount. By doing so, we are looking to further expand into media and sports. First reported by Lauren Hirsch of DealBook.

Entertainment agencies are getting into sports, It reflects a move by tech giants to pour money into one of the few sectors still in the spotlight for live TV. Last year, the creative artists agency representing Dwyane Wade, Steven Spielberg and Zendaya acquired rival ICM with the aim of further expanding into sports. CAA’s customers include football star Aaron Rodgers, basketball star Chris Paul and Portuguese soccer player Cristiano Ronaldo.

UTA acquires majority stake in Crutch Sports Group in 2019, is a player who represents LeBron James in the NBA. UTA this year Named Chief Operating Officer Andrew Tau will join Clutch founder Rich Paul as head of the sports division.

UTA and its rivals are looking to scale up to give them more bargaining power with streaming giants Amazon, Netflix and Apple. UTA acquired literary agency Fletcher & Company in January after acquiring London-based Curtis Brown last year. These deals have strengthened the roster of contemporary novelists and non-fiction authors, with even more intellectual property available for film and television series.

James & Co. was founded in 2002 By Michelle James, former chief talent scout at Time Warner, and Roysi Elves, partner at executive search firm Korn Ferry. They will co-lead the company as a division within UTA.

“I see a lot of people driving Porsches, Mercedes and BMWs in parking lots.

— Bob GilmanAn executive career consultant, he spoke about why wealthy Americans shop for bargains at Dollar General and other discount chains.

next week

The calendar may look light this week with shorter holidays, but there’s a lot on the agenda, including the week-long Paris Air Show that kicked off on Monday.

Tuesday: The release of data on building permits and housing starts will bring attention to the US housing market. FedEx reports quarterly results after the closing bell.

Wednesday: Fed Chair Jay Powell will be on the hill for two days of testimony, starting with the House Financial Services Committee. Inflation data for May are due in Britain, where food prices have hit multi-decade highs.

Thursday: Powell will testify before the Senate Banking Committee. Other Fed officials, including Christopher Waller and Michelle Bowman, Cleveland Fed’s Loretta Mester and Richmond Fed’s Thomas Birkin, will also speak at various events.

Elsewhere, this day is the Bank of England interest rate decision day. And in France, world leaders, including President Emmanuel Macron and Saudi Arabia’s Mohammed bin Salman, 2 days summit Global Debt, Climate Change Policy, and the Role of the World Bank and IMF

speed reading

Information of sale

• Investors, including companies associated with Bill Gates and venture capital giant Andreessen Horowitz, Bet on Kobold, is a start-up focused on mining metals such as lithium. (WSJ)

• UBS reportedly stands to inherit hundreds of millions of regulatory fines It ties in with Credit Suisse’s role in the fall of Archegos. (FT)

• silver lake Reached ceasefire agreement with Bain Capital over their dueling takeover bid for German software maker Software AG. (Silver Lake)

policy

best of the rest

• Inflation has just passed 100% in Argentina, but the restaurant industry is booming. (New York Times)

• Cape Cod, Massachusetts, is experiencing an overabundance of summer vacation rentals and a market reversal. stunned real estate agent. (Boston Globe)

• Brands like Nike wanted to cut stores and sell directly to consumers. reverse course. (WSJ)

• “He chased a cryptocurrency company, and someone followed him.” (New York Times)

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