Bilateral commerce smashed a record high last year
China wants to boost bilateral trade to $250 billion a year. The goal was voiced by Chinese President Xi Jinping during a meeting with Russian President Vladimir Putin, according to Kremlin spokesman Dmitry Peskov.
“For China, this is not so much, but for [Russia] it is a very ambitious goal,” Peskov said, adding that the task is quite achievable. He pointed out that the trade turnover between the two countries hit a historic high of $140 billion in 2021.
Russian and Chinese leaders had previously set a target of doubling the volume of trade from $100 billion (reached in 2018) a year to $200 billion by 2024.
China has been the main importer from Russia of non-primary, non-energy goods since 2016. According to the Russian Export Center (REC), deliveries of those have been growing for seven consecutive years, and the trend has continued through 2021. Copper, aluminum, fertilizers, lumber, oilseeds, paper, and cardboard were among the products most purchased by China, the REC said.
Mercedes-Benz to pay millions and fix rigged pollution-mitigation devices to comply with law in South Korea
The Korea Fair Trade Commission (KFTC) on Sunday demanded that major luxury car maker Mercedes-Benz pay $16.87 million in fines for providing falsified information on gas emissions from its diesel cars, Yonhap news agency reported.
The South Korean antitrust regulator discovered that the vehicle producer had installed illegal software on pollution-mitigation devices in some of its cars. The software allowed the devices to perform at lower levels in driving conditions than during certification tests. The vehicles therefore failed to meet the legally allowed emission levels, but the automaker was found to have covered up related facts in signs attached to its cars between April 2012 and November 2018, according to the KFTC.
The automaker also advertised that the cars’ nitrogen oxide emissions were at a minimum level and they fully met the Euro 6 emission standards. The inadequate ads were on 15 Mercedes-Benz models.
“Though Mercedes-Benz claimed that it only used typical phrases about well-known performances of the emission mitigation devices, concealing the intentional implementation of illegal software and claiming its vehicles perform the best are beyond simple exaggeration and deception,” the regulator stated, adding that “such practices will or are feared to hurt fair market order by preventing consumers from making a reasonable decision” when purchasing a car.
Apart from the fine, the KFTC also ordered the carmaker to fix the devices and install qualified software.
In 2021, the South Korean regulator slapped a number of other carmakers with fines or correction orders, including Audi-Volkswagen Korea, Nissan Motor, Stellantis Korea, and Porsche AG for similar emissions-tampering practices.
Despite the official figure of $30 trillion, actual US debt may be multiple times larger
US national debt topped $30 trillion for the first time in history last month, spurred on by high borrowing during the Covid-19 pandemic, according to data from the Treasury Department. However, Jim Rogers, legendary investor and co-founder of the Quantum Fund alongside George Soros, says the actual debt amount is likely to be much higher than Washington admits.
“That is just what they admit. It is the on-balance sheet debt, but there’s dozens of trillions more debt off-balance sheet,” Rogers said, in a note to RT. The actual debt volume is difficult to calculate, especially since the start of the Covid-19 pandemic and all the pressures it brought about. Still, the investor “once figured it out as over $200 trillion,” nearly seven times more than the officially recognized sum.
According to Rogers, the US has no chance of climbing out of the current debt hole, and the strategy that’s being implemented is to sit and wait until the younger generation has to deal with the problem.
“The endgame is to keep hoping because they hope it will be someone else’s problem someday. It is not a good time to be a young American,” he stressed.
The US owes a wide variety of creditors, and the debt is roughly divided into public debt and intragovernmental debt. The latter is owed by US Treasury to other federal agencies. The public debt represents funds owed to foreign governments (Japan being the largest holder), US banks and investors, the Federal Reserve, state and local governments, pension funds, insurance companies, and savings bonds. Most economists agree that national debt at a certain level is necessary to push the country’s economic growth. However, if it becomes too large it can result in cuts to government programs, to tax and interest-rate hikes, which in turn would propel prices and trigger an economic crisis.
The firm is yet to decide whether it would be willing to accept any offers
Tech giant Amazon and sportswear brand Nike are considering making separate bids for the struggling American home workout brand, Peloton, according to reports in the Financial Times and Wall Street Journal on Friday. The brand has seen sales dwindle and its share price collapse in the past 12 months.
The New York-based firm, whose sales of exercise bikes and treadmills soared during Covid lockdowns, is unsure whether it would accept any offers.
Amazon decline to confirm if a bid for Peloton was being considered. “We don’t comment on rumours and speculation,” a spokesperson told the BBC on Monday. Neither Pelton or Nike have commented on the speculation.
Peloton’s fortunes have changed for the worst over the last 12 months after a promising 2020 when people were confined to their homes for months on end and gyms were closed due to the pandemic.
With appetite for its bikes and treadmills dwindling, Peloton’s market value collapsed from nearly $50 billion 12 months ago to less than $8 billion last week.
In August the firm reported that its losses had widened as revenue growth slowed. It also announced that it would be cutting the price of its flagship bike by 20% to $1,495 (£1,105).
That same month, the US Department of Justice and the Department of Homeland Security announced an investigation into the firm, after a child was pulled under one of its treadmills and was killed.
Pelton warned in November that it expected revenue growth to slow further into 2022. “The primary drivers of our reduced forecast are a more pronounced tapering of demand related to the ongoing opening of the economy, and a richer than anticipated mix of sales to our original bike,” it said in a recent letter to shareholders.
The brand endured a turbulent winter as Mr. Big, a character from HBOs ‘Sex and the City’ and its sequel series ‘And Just Like That,’ was killed off after a Peloton workout, sending shares plunging. Peloton responded with an advert, featuring Mr. Big actor, Chris Noth, in which it emerged that he had not died, but run off with a mistress.
The advert was later pulled following two claims of historic sexual assault made against Noth.
Peloton’s share price jumped in after-hours trading on Friday following reports that bids may be incoming.
The French president’s trip to Moscow and rising oil prices have given a boost to the Russian currency
The Russian ruble strengthened 0.3% on Monday, climbing to 75.60 against the US dollar and by 0.6% to 86.43 against the euro, hitting its strongest level against the greenback since January 13.
The currency is recovering after sinking to a nearly 15-month low of 80.41 per US dollar last month amid US accusations that Russia was planning to invade neighboring Ukraine and face harsh sanctions as a consequence.
This shot in the arm came ahead of a meeting between the Russian and French presidents in Moscow. Ahead of his trip to the capital, Emmanuel Macron expressed optimism that he could secure a “de-escalation” of tensions surrounding Ukraine, arguing that Russia is not interested in invading its neighbor – something Moscow has been saying all along. Ahead of talks with President Putin, Macron spoke to US President Joe Biden on Sunday in a coordination move.
Another factor contributing to the strengthening of the ruble is the high price of oil, Russia’s main export. Brent crude – a major benchmark for the price of Russian crude – has climbed around 20% since the start of this year. On Monday it traded near $94 per barrel, its highest level since October 2014. The rise comes as global consumption remains strong, but oil stockpiles have plummeted since last year as many major producers struggle to pump more.
The Central Bank of Russia is also expected to raise its key interest rate from 8.5% on Friday as it works to control inflation. Higher rates make investment into ruble-denominated assets more attractive, strengthening the Russian currency.
