EMEA morning briefing: US retreat to the hammer -2-

A group of international bondholders from the China Evergrande Group have threatened to go ahead with a law enforcement plan that could potentially include the liquidation of the company’s assets, after they were unable to engage in a manner substantial with the struggling property developer for months.

The group’s advisers issued a strongly worded statement on Thursday accusing Evergrande of withholding crucial debt information and failing to engage with creditors despite recent statements by the company to the contrary. Bondholders, which include global funds, asset managers and distressed investors who hold Evergrande’s debt, are being advised by investment bank Moelis & Co. and law firm Kirkland & Ellis LLP.

   
 
 

Turkey’s Erdogan meets Salvadoran Bitcoin leader amid economic crisis

ISTANBUL-Turkish President Recep Tayyip Erdogan on Thursday met with the leader of El Salvador, the first country to make bitcoin legal tender, as Turkey’s central bank kept interest rates at a standstill, which will only probably not much to stop the country’s currency crisis.

As El Salvador planned to launch a billion-dollar bitcoin-backed bond, Turks and foreign investors watched closely to see if Erdogan’s meeting with President Nayib Bukele in Ankara would mark a game-changer in how the Turkish government views cryptocurrencies, despite last month. fall in dollar value of bitcoin.

   
 
 

Biden seeks to reassure Ukraine, promising a strong response to Russia and transferring arms

President Biden said Thursday that any movement of Russian troops into Ukraine would be considered an invasion, seeking to clear up confusion over his stance on a possible incursion as the administration gave approval for US-made weapons be transferred to Kyiv.

“I have been absolutely clear with [Russian] President [Vladimir] Putin. He has no misunderstandings,” Mr. Biden said at a White House event. “If assembled Russian units cross the Ukrainian border, it is an invasion.”

   
 
 

Rio Tinto reviews Serbia’s decision to revoke lithium project licenses

Rio Tinto PLC said on Thursday it was reviewing the legal basis and implications of a decision by the Serbian government to revoke the mining company’s lithium project licenses.

“Rio Tinto is extremely concerned by Prime Minister Ana Brnabic’s statement regarding the cancellation of the space plan and the revocation of licenses related to the Jadar project,” a company spokesperson said.

   
 
 

UK consumer confidence falls to near-year low on inflation, Omicron worries

British consumers grew more pessimistic in January as the spread of the Covid-19 Omicron variant and high inflation weighed on the economic outlook and household spending plans, according to a survey by research firm GfK.

GfK’s consumer confidence barometer fell to minus 19 in January from minus 15 December, the lowest level since February 2021. Economists polled by The Wall Street Journal had expected the confidence index to slip slightly minus 16.

   
 
 

BHP shareholders approve unification resolutions

BHP Group Ltd. said shareholders had approved a plan to end its dual listing in London.

The company still needs approval from a UK court, with a hearing scheduled for January 25, BHP said.

   
 
 

Peloton notifies staff of layoffs and production changes

The chief executive of Peloton Interactive Inc. said the company is reviewing its workforce size and resetting production levels as the company adjusts to more seasonal demand for its exercise equipment.

A memo from chief executive John Foley was sent to Peloton employees on Thursday following a report that Peloton was temporarily halting production of its connected fitness products. The report sent shares of the company down 24%.

   
 
 

Netflix shares fall as company sees slowing subscriber growth

Netflix Inc. said it plans to add a significantly smaller number of subscribers this quarter than a year ago as it adjusts to growing competition and the lasting disruptions of the coronavirus pandemic, making sharply drop the shares of the video streamer.

The company on Thursday forecast an increase of 2.5 million subscribers in the current quarter, up from four million a year earlier. It also slightly missed its subscriber estimate for the fourth quarter, adding 8.3 million subscribers instead of the expected 8.5 million.

   
 
 

Write to paul.larkins@dowjones.com

   
 
 

Major events expected for Friday

00:01/United Kingdom: January survey on consumer confidence in the United Kingdom

07:00/DEN: January Consumer Expectations

07:00/UK: Monthly UK retail sales figures for December

08:00/SPN: November Industrial Orders and Sales

09:00/POL: Dec. Average gross salaries

09:00/POL: December PPI

09:00/POL: industrial production index for December

11:00 am/IRL: December WPI

2:00 p.m. / BEL: January consumer confidence survey

15:00/EU: Jan FCCI Flash Consumer Confidence Indicator

All times in GMT. Powered by Kantar Media and Dow Jones.

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

 

(END) Dow Jones Newswire

January 21, 2022 00:41 ET (05:41 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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