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Huawei revenue rises 39% despite US pressure on 5G
Chinese group says it shipped 70,000 5G base stations and 59m smartphones in first quarter
23 2019 | Viewed: 23 | Foreign experience | Read full
UK financial services? It's a family affair: report
Nearly half of all people working in Britains financial services industry have followed their parents into the sector, more than three times the national average, research from consultants KPMG showed
22 2019 | Viewed: 21 | Foreign experience | Read full
Perpetual Motion: Chinese State Companies Fine-Tune Their Financial Engineering
Chinas leadership is battling with lower-ranking officials and corporate bosses over perpetual bonds
22 2019 | Viewed: 18 | Foreign experience | Read full
In nod to debt concerns, China Belt and Road summit to urge sustainable financing
World leaders meeting in Beijing this week for a summit on Chinas Belt and Road initiative will agree to project financing that respects global debt goals and promotes green growth, according to a draft communique seen by Reuters
22 2019 | Viewed: 40 | Analytics | Read full
Full 5G rollout planned in Japan for spring 2020
The Internal Affairs and Communications Ministry has approved the allocation of frequency bands for fifth-generation (5G) telecommunication services to four mobile network operators, a major step toward the spring 2020 launch of full-scale services that can send huge amounts of data 100 times faster than the current 4G technology
22 2019 | Viewed: 21 | News / Theme of day | Read full
Jet Airways cancels all flights as it fails to get funding
India carrier third to go bust in less than decade, succumbing to fierce competition
18 2019 | Viewed: 24 | Foreign experience | Read full
First Japan-Built Airliner in 50 Years Takes on Boeing and Airbus
A new, long-delayed 88-passenger jet from Japan may finally be the right plane at the right time
18 2019 | Viewed: 20 | Foreign experience | Read full
Amazon says will not operate China marketplace site from July 18
Amazon.com Inc on Thursday said it is notifying sellers that it will no longer operate a marketplace nor provide seller services on its Chinese website, Amazon.cn, from July 18
18 2019 | Viewed: 21 | Foreign experience | Read full
Top economic planner bullish on reaching annual growth target
China's economy, despite headwinds, has enjoyed a good start in the first quarter of 2019, and the country has the confidence to achieve the annual projected growth goal, said the country's top economic planner
18 2019 | Viewed: 20 | Foreign experience | Read full
Turkey props up reserves with short-term borrowing
Use of swaps to boost coffers heightens fears over ability to defend lira
18 2019 | Viewed: 23 | News / Review of Mass Media | Read full
Huawei promises a $600 5G smartphone
Chinese group throws down challenge to rivals with cut-price handset
18 2019 | Viewed: 23 | News / Theme of day | Read full
China GDP grows faster than expected in first quarter
Expansion of 6.4% follows stimulus efforts and US backdown on threat to escalate trade war
17 2019 | Viewed: 28 | News / Theme of day | Read full
Fitch Ratings: CIS Banking Risks Remain despite Authorities' Actions
Link to Fitch Ratings' Report(s): Key Materialized CIS Banking Risks

Fitch Ratings-Moscow-15 April 2019: Fitch Ratings says key risks have materalised in different CIS banking markets and, in some cases, remain sources of vulnerability. This, together with authorities' responses to the crystallisation of such risks including provision of support or, in some cases, imposition of losses on third-party creditors, is one of the themes in a presentation published by Fitch.

CIS banking systems have experienced various stresses over the last 12 years, with some significant common causes. Chief among these is mismanagement of foreign currency (FC) risks, such as FC lending to weakly hedged borrowers, an over-reliance on external FC debt and generally high dollarisation of liabilities, and sometimes maintenance of large short open currency positions. When in 2014-2015 many regional currencies depreciated sharply, banks in Ukraine, Kazakhstan and Azerbaijan experienced significant worsening of credit losses associated with these exposures, and some failed as a result. This risk is still present, with FC lending particularly high in Azerbaijan (40%), Ukraine (48%), Belarus (49%), Uzbekistan (55%), Georgia (56%) and Armenia (58%).

Another common source of problems has been poor corporate governance, coupled with weak supervision, which resulted in sizable amounts of state money being required to resolve failed banks in Russia and Kazakhstan, where clean-ups are still ongoing. In Russia we estimate total clean-up costs to date at about USD80 billion, and we believe the Central Bank of Russia (CBR) could spend about another USD10 billion in the next two-to-three years, as it finalises the clean-up. Positively, as a result of the clean-up the CBR has managed to effectively stop capital outflows via doubtful transactions.

In certain cases (eg BTA in Kazakhstan, Privatbank in Ukraine and International Bank of Azerbaijan) authorities have decided to share the burden of supporting the banks with foreign creditors, who as a result incurred significant losses. For example, we estimate that in BTA alone foreign creditors lost about USD13 billion. As a result our bank ratings in Kazakhstan and Azerbaijan factor in no or only limited state support, although in Ukraine we believe the propensity to support state-owned banks remains high.

Retail overheating is another major risk, which already materialised in Russia in 2014-2015 when credit losses on high-margin consumer loans reached 25%, compared with an annual rate of 5%-8% previously. Russian banks subsequently tightened their approval rates, but from 2017 began to lend more actively again, which may lead to further overheating in two to three years. The CBR has so far sought - with limited success - to suppress growth through higher risk-weights, but may soon implement more radical measures (specifically, payment-to-income and debt-to-income limits), which, we believe, could be more effective. Retail lending growth in Kazakhstan is also quite high, exceeding that of nominal incomes, which could be a source of growing risks, while the local regulator has not yet taken decisive steps to curtail it.

Overall, we see some tightening of supervision across CIS markets, which is a positive development. However, given the significant issues in some countries it may take some time to address them, while some risks, such as dollarisaiton of balance sheets, will be very difficult to reduce or mitigate.

17 2019 | Viewed: 21 | Press Releases | Read full
Does economic growth depend on population size?
New research suggests that, in the very long run, size is a great advantage
17 2019 | Viewed: 22 | Analytics | Read full
James Murdoch set to invest $1bn in media companies
Options for billionaire investor could include a liberal-leaning news outlet
17 2019 | Viewed: 20 | Foreign experience | Read full
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Interview

Interview with Sholpan Kozhamkulova

Sholpan Kozhamkulova
Sholpan Kozhamkulova, Ph.D., Assistant Professor, Chair, Department of Journalism and Mass Communication, KIMEP, Almaty

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