World Street | China’s market in turmoil, the Houthis’ rampage in the Red Sea, the burden on America’s shoulders, and Holcim’s big bet

China’s securities market continues to struggle, with regulators suspending restricted stock lending. The Red Sea’s raging waters are good news for oil prices, but traders are bracing for a crisis. Lockheed Martin may cut some of its workforce to boost profits. In this edition of World Street, we include all of these…

control

China’s securities regulator has announced a total suspension of restricted stock lending starting Monday, the latest attempt by policymakers to stabilize the country’s stock market following a recent selloff. Reuters. A series of support measures from the Chinese government, including a sharp cut in bank reserves, lifted Chinese stocks from a five-year low early last week, reflecting investors’ deep-rooted pessimism about the market outlook and a volatile economy. However, it fell again on Friday.

geopolitics watch

The British warship Diamond repelled a drone attack by Yemen’s Houthis in the Red Sea on Saturday, British officials said. “Diamond deployed a Sea Viper missile system and destroyed the drone that targeted Diamond, but there was no injury or damage to Diamond or her crew,” the Defense Ministry said in a statement on Sunday. . He added: “These intolerable and illegal attacks are completely unacceptable and it is our duty to protect freedom of navigation in the Red Sea.”

farmville

Prime Minister Gabriel Attal said the French government was considering further support for the country’s farmers, as nationwide protests by farmers demanding better wages and living conditions show no signs of abating. Farmers in France, the European Union’s biggest agricultural producer, complain that they face unfair competition from rivals in countries with looser regulations. They set up barricades on major roads last week.

chip wars

The United States is expected to give billions of dollars in subsidies to top semiconductor companies such as Intel and Taiwan Semiconductor Manufacturing Co. in the coming weeks to help build new factories in the United States. wall street journal report. The upcoming announcement is aimed at starting production of advanced semiconductors that power smartphones, artificial intelligence, and weapons systems. WSJ report.

Staff reduction

Lockheed Martin reportedly plans to cut its workforce by 1% this year to cut costs and streamline operations. Reuters. A company spokesperson said the cuts will impact positions across the business and operations, adding that cost-cutting measures also include hiring freezes and voluntary redundancies. The Maryland-based defense contractor employs 122,000 people worldwide, according to its website.

oil surge

Oil prices rose 1% on fuel supply concerns after a missile hit a fuel tanker operated by Trafigura in the Red Sea. The outlook for Russia’s exports of refined products is bleak as several refineries undergo repairs following drone attacks. “With oil tankers connected to the US and UK under threat of attack, markets are likely to reassess the risk of disruption,” analysts at ANZ said.

build a new beginning

Building materials giant Holcim has revealed plans to spin off its entire North American business through a New York flotation that could value the business at $30 billion. The company also introduced a new chief executive officer. “We will completely separate our North American business from the capital markets and list 100% of our business on the New York Stock Exchange,” the CEO said.

currency issue

Moody’s Investors Service forecasts that the Bangladesh taka could weaken if currency restrictions are eased, forecasting a possible 4% depreciation by June. The move is seen as potentially boosting the country’s depleting foreign exchange reserves. Bangladesh Bank has announced that it may consider introducing a crawling peg system to maintain local currency stability. This would signal progress toward a more flexible exchange rate regime.