Midday European briefing: the struggle of equities as -2-

PARIS-French prosecutors have opened investigations into the role played by consultancy firms in the 2017 and 2022 French presidential elections, expanding an existing probe into consultancy firm McKinsey & Co.

Earlier this year, French financial prosecutors opened a tax evasion and money laundering investigation against McKinsey.

   
 
 
   
 
 

WORLD NEWS

China cuts bank reserve requirement ratio

BEIJING — China’s central bank said on Friday it would reduce the amount of deposits banks must set aside, freeing up 500 billion yuan ($69.91 billion) of liquidity in an economy struggling with its worst coronavirus outbreak. Covid-19 since 2020.

The People’s Bank of China announced that it would cut the reserve requirement ratio for banks by 0.25 percentage points, bringing the weighted average level of RRR for the entire banking system to 7.8%.

   
 
 

Black Friday crowds are back but this year they face inflation

Black Friday is back, although many door-to-door deals aren’t.

Millions of Americans are expected to visit brick-and-mortar stores on the Friday after Thanksgiving as the Covid-19 pandemic recedes and people return to their pre-pandemic habits. It’s a reversal from the past two years, when they were largely stuck at home and shopping more online. This year, however, many household budgets are being squeezed by high gas and grocery prices.

   
 
 

Mega-corporations have blighted the American job market. They start over.

Part of what has made the US job market so tight is that big, publicly traded companies have been hiring like crazy after the pandemic hit. Now that many are backtracking, it looks like a wave of unemployment is underway.

The parent meta-platforms of Amazon.com, Disney and Facebook are all suddenly acknowledging that they have overhired and laid off workers. For those affected, the job losses are horrific. But when it comes to the labor market, rather than viewing these layoffs as a sign that things are collapsing, they could be an indication that it might be better balanced.

   
 
 

China’s Xinjiang region has been on lockdown for months, casting a shadow over zero-Covid easing

As Covid-19 cases trigger a new wave of lockdowns in major Chinese cities, residents of towns in the remote western region of Xinjiang say they have endured a lockdown that has lasted months and that local authorities are remained largely silent.

Local authorities began ordering residents to stay home after Covid clusters began spreading across Xinjiang in early August. Major towns in the region have shut down transport, trapping some summer tourists until the onset of winter. Restrictions remain in many parts of the region as officials struggle to implement orders from Beijing to be more precise in enforcing Covid controls.

   
 
 

Chinese banks’ $178 billion ‘medicine’ for developers won’t cure all ills

HONG KONG-CHINA’s state-owned banks are flooding the country’s property developers with loans and other pledges of financial support, moves that will prevent the beleaguered industry from descending into widespread crisis following a wave of defaults .

However, this generous aid is unlikely to quickly solve a fundamental problem plaguing many Chinese developers: a deep drop in new home sales.

   
 
 

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This article is a text version of a Wall Street Journal newsletter published earlier today.

 

(END) Dow Jones Newswire

November 25, 2022 06:12 ET (11:12 GMT)

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