BERLIN/BEIJING (Reuters) – The Chinese foreign ministry on Thursday denied that talks on an investment pact between the European Union and China had run into complications due to Chinese demands on nuclear power investment.
Negotiations have stalled at the last stretch because China is raising additional demands on nuclear energy, German magazine WirtschaftsWoche reported on Wednesday.
“As I understand, talks are goings smoothly,” Chinese foreign ministry spokesman Wang Wenbin told a news briefing on Thursday.
“The news about talks being stuck because China has put up more requests about nuclear energy is fake,” Wang said.
He did not deny or confirm that China had made fresh demands on nuclear energy investment.
The issue of nuclear power is controversial among EU countries because such investments could put sensitive infrastructure under Chinese control.
“China wants to invest in European nuclear power plants and use Chinese technology in this area,” WirtschaftsWoche cited EU sources as saying.
During the negotiations, China had indicated to its European counterparts that it viewed its own technology in this field as more advanced, the report said.
Several EU member states reject nuclear energy or have decided to withdraw from the technology within the next few years.
The EU and China aim to reach an investment accord by the end of the year that would grant European companies greater access to the Chinese market, according to German and EU officials.
The EU-China Comprehensive Agreement on Investment would put most EU companies on an equal footing in China, potentially a big step in repairing Sino-European ties after the coronavirus outbreak in China and Beijing’s crackdown on dissent in the former British colony of Hong Kong.
The deal could complicate transatlantic relations with the incoming administration of U.S. President-elect Joe Biden.
Jake Sullivan, the designated National Security Adviser in Biden’s team, tweeted earlier this week that Washington would welcome early consultations with its European partners on “our common concerns about China’s economic practices”.
China fears being isolated from the West as the United States steps up its trade war with Beijing and Brussels has taken steps to monitor Chinese investment in strategic European sectors more closely.
Other big sticking points in sealing the investment pact relate to sustainable development and human rights issues such as forced labour in China, according to Western diplomats.
Wang, the Chinese foreign ministry spokesman, vehemently denied that there is forced labour in China.
“To say there is so-called forced labour in Xinjiang is to fabricate a lie. Such rumour-mongering behaviour is despicable and should be condemned,” Wang said.
(Reporting by Michael Nienaber in Berlin and Yew Lun Tian in Beijing; Editing by Nick Macfie and Hugh Lawson)
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
