CBI member Heathrow Airport Limited recently
released its traffic and business commentary for July 2013, reporting Heathrow
saw 6.9 million passengers, up 5.5% compared to the previous year.
Traffic to and from the BRIC economies was up 8.7%, with notable growth from
China (+22.2%) and India (+10.8%).
Please click here
to read the full press release by Heathrow.
CBI member Marks & Spencer (M&S) recently released its interim results for the first quarter of 2013/14, reporting Group sales up 3.3% and international sales up 8.7%.
M&S's international business performed well across most of the markets it
trades in, especially in its key markets of India, China, and the Middle East.
Please click here
to read the full results for M&S.
CBI member Marks & Spencer (M&S) recently released its results for the third quarter of 2012/13, reporting international sales up 4.1%.
The U.K. retailer's key international markets in India and China continued to trade well.
Please click here for the full results from M&S.
[Image courtesy of www.hsbc.com.cn]
CBI member HSBC recently announced the signing of its first offshore receivables finance agreement denominated in RMB, which brought two Hong Kong and U.K. companies together in a deal highlighting the Chinese currency's growing role in cross-border trade.
HSBC agreed to provide Milagros China Ltd. with a US$1.5 million factoring facility that enables the Hong Kong-based manufacturer and vendor to invoice, fund, and settle sales to U.K.-based Debenhams Retail.
HSBC Global Research estimates that approximately US$2 trillion, or one-third of China's annual trade, will be settled in RMB by 2015.
Herbert Lam, Director of Milagros China, said, "Switching to an RMB facility is a win-win move for us and for Debenhams. Most of our costs are in RMB, because we manufacture in mainland China, but most of our overseas sales are currently denominated in USD. This creates exchange-rate risk we've had to account for in our prices, so now we’ve removed that risk it puts us in a stronger competitive position that will benefit our customer in turn."
Rakesh Bhatia, HSBC's Global Head of Trade and Receivables Finance, said, "As China's economy expands and the internationalisation of the RMB gathers pace, I believe we'll see many more companies following Milagros' lead. HSBC has built RMB trade capabilities in 59 markets, because the customer demand is already there. With the RMB predicted to become a top three global trade currency within the next five years, we expect that demand to grow exponentially."
Please click here to read the full press release by HSBC.
In additional news, HSBC recently launched a new RMB savings insurance plan, which is an alternative wealth management product designed to help customers diversify their investment portfolio.
HSBC's WealthSave (Renminbi) Insurance Plan provides policyholders with competitive guaranteed premium return of up to 113% and helps them to capture potential RMB appreciation.
Diana Cesar, HSBC's Head of Retail Banking and Wealth Management for Hong Kong, said, "WealthSave (Renminbi) is a competitive savings insurance plan designed for customers who are looking for an all-in-one wealth management solution that combines savings, protection, and potentially higher returns in the medium to long-term compared to pure RMB savings. As the leading life insurance services provider in Hong Kong, HSBC is committed to introducing simple and practical products and services that address customers' needs."
Ms. Cesar added, "The market sentiment for RMB products remains favourable. In view of the growing demand for RMB products among people in Hong Kong, we are launching WealthSave (Renminbi) Insurance Plan to not only provide customers with exposure to potential currency appreciation, but also help them to diversify their portfolios from a total wealth management perspective."
Please click here to read the full press release by HSBC.
HSBC also recently announced that it successfully executed the first RMB-denominated cross-border trade transaction in India for a major pharmaceuticals company. HSBC India has now joined the rapidly growing list of HSBC entities that have concluded their first trade settlement in RMB.
Sandeep Uppal, Managing Director and Head of Commercial Banking, HSBC India, said, "India-China is a very important and active trade corridor, and we see the first RMB settlement as an important milestone in the fast-growing bilateral trade between the two countries. We have a clear focus on emerging markets, and this deal showcases HSBC's capabilities in facilitating international business in the region. We are geared to provide our customers with financial solutions that can help them benefit from the vibrant and growing trade in this corridor."
Surath Sengupta, Head of Global Trade and Receivables Finance, HSBC India, said, "South-South connections are set to revolutionise the global economy in the same way that trade between the developed nations exploded in the 1950s and 1960s, and we expect the 21st century to see significant trade growth between these two emerging nations. The scale of opportunity between India and China is huge, and HSBC is well-positioned to support trade between both the countries."
Please click here to read the full press release by HSBC.
In mid-July, HSBC opened a new office in Guangzhou's central business district in southern China. HSBC Software Development (Guangdong) Ltd. (HSDC) and HSBC Electronic Data Processing (Guangdong) Ltd. (HDPG) will occupy four floors of office tower one and all of office tower two, with capacity for more than 6,400 people. The increase in capacity will enable HSBC's continued business expansion in the region.
HSBC's new office was pre-approved for Leadership in Energy and Environmental Design (LEED) Gold pre-certified ratings from the U.S. Green Building Council (USGBC), an international standard for environmentally-friendly construction.
Sean O’Sullivan, HSBC's Group Chief Operating Officer, said, "Starting with a Group Service Centre (GSC) in 1996, HSBC currently employs around 10,000 staff in HSDC and three GSCs under HDPG in Guangdong, providing seamless services to the Bank's customers across the globe. The launch of the new office is another milestone of the Group's presence in the province."
Helen Wong, HSBC China Chief Executive Officer, said, "This investment demonstrates once again the Group's commitment to the China market. More importantly, it will further enhance our capability to serve customers and join them up to HSBC's global network as the Bank continues to expand its network and grow business in China."
Please click here to read the full press release by HSBC.
[Image courtesy of www.philips.com]
CBI member Philips recently released its results for the second quarter, reporting comparable sales growth up 5% to €5.9 billion.
Philips' Healthcare division opened its imaging systems manufacturing facilities in Pune in India and Suzhou in China, which will help enhance the company's innovation capabilities in growth geographies and drive competitiveness of its product offering in key growth market segments.
In addition, Philips' Lighting division will deliver the largest-ever solar road-lighting installation in Nanyang. Philips will also provide lighting products for over 800 new Sinopec and about 80 Shell petrol stations in China.
Please click here to read the full results for Philips.
[Image courtesy of www.marksandspencer.com]
CBI member Marks & Spencer (M&S) recently released its results for the year ended 31 March 2012, reporting international sales up 5.8%. The U.K. retailer's key priority markets of India, China, and Hong Kong saw strong growth, driven by good like-for-like growth and new space.
In China, its Shanghai stores continued to perform strongly, and M&S currently has seven stores in the city, having opened three new ones this year. Its Hong Kong stores also continued to perform well, and the retailer opened one new store in the city.
Please click here to read the full annual results for M&S.
[Image courtesy of www.cbi.org.uk]
As the UK's premier business lobbying organisation, the CBI operates around the world to help our companies do business. Our offices in the UK, China, India, mainland Europe, and the U.S. actively promote Britain's business interests overseas, offering information, lobbying, and networking.
Please click here to read more about the CBI's international offering.
[Image courtesy of www.thisismoney.co.uk]
On 14 April, Chinese President Hu Jintao will meet with top leaders from Brazil, Russia, India and South Africa on the southern Chinese island-province of Hainan.
Discussions will cover economic, financial and security concerns. The summit is the third "BRIC" summit and the very first to include South Africa. Pleae read more here.
According to a short statement released by China's Ministry of Commerce, "The BRICS leaders will exchange views on international developments and economic, financial and development issues, and will also plan future cooperation among the BRICS countries."
India's Prime Minister Manmohan Singh is travelling to China today on an official visit as the two countries aim to deepen their economic ties. Mr. Singh will also attend the BRICS summit on 14 April. Please read more here.
In December 2010, China and India agreed to nearly double bilateral trade to $100 billion (£66 billion) by 2015, up from $60 billion in 2010, during Chinese Premier Wen Jiabao's visit to India. Mr. Wen traveled to India with a delegation of 400 Chinese business leaders, and $16 billion worth of business deals were signed.
With China and India accounting for 36.7% of the world's population and 10.4% of global trade, bilateral ties between the two countries hold significant implications for the rest of the world, especially given the fact that both have been playing a crucial role in driving the global economic recovery.
In 2010, India grew by 9.7% and China by 10.5%, significantly outpacing the rest of the world which grew by 4%. Read more here.
However, regional political tensions between China and India, including border disputes and China's perceived close relationship with Pakistan, are a potential barrier to the deepening of bilateral economic ties.
The CBI has maintained a presence in India since 2008. To contact our New Delhi office please e-mail Mr.Mark Runacres at: [email protected]
China Direct would like to thank Policy Analyst Ben Cooper for preparing this report.
[Image courtesy of www.uniosil.org]
New UN report on the global economy
The UN released part of a new report last week titled, "World Economic Situation and Prospects 2011," which warned that global growth over the next two years will not be enough to restore the 30 million jobs lost between 2007 and 2009.
The UN projects that the world economy will expand by 3.1% in 2011 and 3.5% in 2012.
The US, Japan and major economies in the eurozone stand at risk of falling into a new recession while the global recovery will continue to be driven by developing economies, especially China, India, Russia and Brazil. However, the growth of the emerging economic powers is expected to moderate.
The Chinese and Indian economies are expected to expand at 8.9% and 8.2%, respectively, next year.
The full report will be available in mid-January. Read more here and here.
