An hour ago
Minister says South Korea is ‘pursuing various policy measures’ to boost VC sector
South Korea’s Ministry of Small and Medium Enterprises and Startups is taking some steps to boost the country’s declining venture capital sector.
In an exclusive interview with CNBC, Lee Young, South Korea’s minister for SMEs and startups, said that includes injecting 1 trillion Korean won ($748.43 million) into the government-owned fund, which it estimates will lead to 2 trillion won in venture capital investments. .
Venture capital investment in South Korea fell 60.3% in the first quarter from a year ago, according to ministry data. This decline was attributed to factors such as the sluggish economy and high interest rates that resulted in expensive capital.
“Second, we will provide comprehensive support for innovative startups to raise funds. And we will provide a lot of incentive programs for private capital to move actively in this difficult environment,” Lee told CNBC’s Cheri Kang.
“Finally, we have continued to try to create a joint global fund. For example, President Yun went to New York last year to discuss the creation of a joint fund. Now we are talking with the government of Saudi Arabia. And I’m sure we will announce this soon,” Lee said.
Saudi Arabia has been making series of investments in South Korean companies such as Kako and Petrochemicals.
– Sheila Chiang
2 hours ago
Australian Trade and Industry says Australia needs to focus on looming deficits
According to Australian Trade and Industry chief executive Andrew McKellar, the Australian government should not rest on its laurels and work to improve the structural position of the budget over the medium term.
“If you look at what’s projected right now: Within two years, we’re expected to be back to a $35 billion deficit a year, so that needs to be addressed further,” ACCI Chief Executive McKellar said in an interview with CNBC on Wednesday.
Late on Tuesday, Treasurer Jim Chalmers announced billions in cost-of-living relief aimed at reducing energy bills and consumer prices, along with defense and ties with neighboring Pacific nations, as Australia looks to counter China’s growing strategic influence in the region, Reuters reported.
In various interviews with Australian media on Wednesday morning, Chalmers and Prime Minister Anthony Albanese dismissed concerns that the budget would worsen inflation.
Chalmers expects domestic growth to slow to just 1.25% in 2023/24 from 3.25% this fiscal year, largely due to a 375-basis-point rate hike by the Reserve Bank of Australia.
“Our assessment is that it is time to pause,” ACCI chief executive McKellar said. “The real test of the Budget’s success: Will the RBI look at the risk of inflation. If we see more interest rate hikes in the coming months, we could see monetary and fiscal policy pushing against each other. A scenario we want to avoid.”
— Clement Don
4 hours ago
Korean Air CEO expects full recovery in third quarter
Korean Air CEO Walter Cho expects a full recovery in the third quarter. He told CNBC’s “Squawk Box Asia” that the airline doubled its operating profit compared to 2019.
Passenger demand is “very strong now” and the airline has reached about 90% capacity in passenger traffic, Cho added.
Cho said Korean Air is seeing “very strong” demand from China, but it is currently only at 30% capacity. Cho said the airline expects to fully reopen in the second half of the third quarter.
Japan has shown strong traffic from the fourth quarter of last year and the first quarter of this year, which the airline expects to continue “throughout this year,” Cho said.
– Audrey Vaughan
3 hours before
Mitsubishi posts first-quarter profit, announces 300 billion yen share buyback
The 1.18 trillion yen figure was a 25.94% increase compared to fiscal 2021, when it posted a net profit of 937.5 billion yen. Natural gas, industrial products and real estate sectors posted gains.
However, the company said net income for the current fiscal year will come in at less than ¥920 billion due to high market prices for resources.
Mitsubishi announced that it will buy back 200 billion yen of additional shares in its 2022 fiscal year, bringing its total buyback amount to 370 billion yen. The company estimates it will buy back 100 billion yen in shares in its current fiscal year.
Shares of Mitsubishi rose 4.04% on Wednesday and were the top gainers on the index points basis.
6 hours ago
McConnell joined Democrats in rejecting the US debt default after the White House meeting
President Joe Biden and Democratic leaders and Republican Senate Majority Leader Mitch McConnell vowed after a high-stakes meeting at the White House that the U.S. would not default on its debt.
“I made it clear during the meeting that default is not an option,” Biden told a hastily called press conference.
“America has never paid back its debt and it never will,” McConnell said, flanked by GOP House Speaker Kevin McCarthy, of Calif., Democratic Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, both of New York. .
McCarthy was the only person present at the meeting, and Schumer said he did not pay back the loan. “We openly asked Speaker McCarthy if he would take default off the table. He refused,” Schumer said.
For his part, McCarthy told reporters he did not see “any new movement” in the negotiating positions. “Everybody in this meeting reiterated their positions,” he said.
Despite little progress, leaders will meet again on Friday. In the interim, Biden said his aides will meet every day.
– Christina Vicky
6 hours ago
Airbnb falls 11% on soft guidance
Airbnb shares lost 11% in extended trading after sharing softer guidance for the current quarter.
Despite the hourly losses, Airbnb reported a strong first quarter revenue It beat analyst estimates on both the top and bottom lines.
Looking ahead, the company warned of tougher comparables in the second quarter. Last year, following the Omicron surge, the company benefited from a lackluster position for travel.
For the current period, Airbnb said it expects growth in bookings and a decline in average daily rates from a year ago.
Check out the chart…
Airbnb falls in a disappointing direction
– Samantha Subin, Ashley Cabot
7 hours ago
Twilio, confirm in after-hours moving stocks
Here are some of the names making the biggest moves after the hour:
Twilio – Shares of Twilio fell nearly 14% after delivering a weaker-than-expected forecast for the current quarter. The company took a slight hit on earnings.
Rivian – Electric vehicle shares gained more than 5% in extended trade. Rivian reported a smaller-than-expected loss and revenue beat Wall Street’s expectations. The company also reaffirmed its EV production target.
Confirm — Shares of the buy-now payment company fell more than 9% despite better-than-expected earnings. Losses for the quarter tripled from last year, but were lower than expected.
– Samantha Subin
7 hours ago