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News Briefs (23-05-2020)

May 23, 2020 00:00:00

Indian shares end lower

Indian shares slid on Friday, as banks fell after the central bank decided to cut policy rates and extend a relief period for loan repayments in an effort to contain the economic fallout of the COVID-19 pandemic. The Reserve Bank of India extended a moratorium on loan repayments by a further three months, as many borrowers are out of jobs due to the weeks-long lockdown that has threatened to push Asia's third-largest economy into recession. While some analysts saw it as a much-needed relief for the economy, banking stocks slid as investors fretted over the impact of the moratorium on banks' already huge pile of non-performing loans (NPLs). Analysts said the moratorium could result in banks delaying the recognition of defaults and NPLs, and that investors were disappointed over the lack of any announcements on a one-time restructuring of bank loans. — Reuters

Nissan considering 20,000 job cuts

Nissan Motor Co is considering cutting 20,000 jobs from its global workforce, focusing on Europe and developing countries, Kyodo news reported on Friday, as the Japanese automaker struggles to recover from plunging car sales. The possible cuts come as Nissan prepares to announce its updated mid-term strategy next week. Profits at the automaker have been floundering for the past three years, and the coronavirus pandemic has only piled on urgency and pressure to renew efforts to down size and turnaround the company. Nissan declined to comment on the Kyodo report. The automaker said in July last year it would cut 12,500 employees, nearly 10 per cent of its of 140,000-strong workforce. If Nissan raises that to the higher figure, it would rival the 20,000 jobs it shed during the global financial crisis in 2009. — Reuters

NetEase, JD.com set dates for $5.0b Hong Kong listings

Chinese technology company NetEase plans to carry out a secondary listing on the Hong Kong Stock Exchange on June 11, which will be followed one week later by web retailer JD.com, four sources with direct knowledge of the matter said. The two transactions could raise a combined $5 billion, separate sources said, and the deals would be the largest for Hong Kong's equity capital markets so far this year. The sources could not be named because the information has not yet been made public.

— Reuters

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