Weekly Market Update - 12 February 2024
Ali Buyback
Alibaba green-lit another $25 billion in stock repurchases, aiming to calm investor jitters over its plateauing growth as the company struggles to fend off new rivals such as PDD Holdings. The expansion builds on an existing buyback program that was already among China’s largest. Alibaba’s US-listed shares fell almost 6%, though, after the company reported lower-than-expected sales, dragged down by a weaker performance at its core domestic e-commerce business. The landscape for tech firms in China has been rocky since Beijing’s crackdown on the sector. Over at ByteDance, China Operations Head Kelly Zhang is stepping down, a week after CEO Liang Rubo said the firm, long hailed as the world’s most valuable startup, needs to avoid complacency and regain lost ground in the AI race.
Source: Bloomberg
Xi and Putin
Chinese President Xi Jinping told Russian counterpart Vladimir Putin in a phone call that the two nations need to work closely to defend security and oppose foreign interference. Xi said China and Russia need to have close strategic cooperation, adding that they should work together to safeguard their sovereignty, security and development interests. The two leaders have been boosting their relationship in the nearly two years since Russia launched its invasion of Ukraine. Just weeks before the war began, Xi agreed to a “no-limits” friendship with Putin during the 2022 Winter Olympics in Beijing and signed a series of long-term energy supply deals.
Source: Bloomberg
Goldman Sachs
Goldman Sachs Group is being investigated by the Commodity Futures Trading Commission on whether the bank improperly charged fees to execute some of its clients’ futures trades. The US regulator privately authorized sending subpoenas to Goldman — a probe that stems from a whistle-blower tip. Last year, Goldman agreed to pay more than $50 million to settle at least four CFTC cases, including three that were announced in the space of five weeks. While the penalties totaled less than one day of revenue for the bank, the string of settlements prompted one commissioner to publicly call out the bank as a repeat offender.
Source: Bloomberg