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On Thursday, the front page of French national newspapers generally focused on the domestic topic, with different focuses: the 40th anniversary of the abolition of the death penalty in France, the “Liberation” focused on an exclusive interview with the then Minister of Justice Robert Badaindale, who actively promoted France in the past. The former minister who passed the abolition of the death penalty is still thinking about it at the age of 93, and is working tirelessly to abolish the death penalty in more countries and ultimately achieve the goal of abolishing the death penalty globally. “Wind energy or nuclear energy?” Le Figaro is concerned about environmental issues entering the 2022 presidential campaign. “Humanitarian” reflects on France’s role in NATO and analyzes that Australia’s cancellation of the century order for French submarines once again confirms that NATO, which is under the guidance of the United States, has come to a dead end. The Catholic “La Croix” is concerned about the impact of online social platforms on young people. Faced with problems such as the constant spread of online violence, it has proposed policies to control and even prohibit young people from using online social platforms.
Fumio Kishida was elected President of the Liberal Democratic Party of Japan. Next month, he will succeed Yoshihide Suga, who has expressed his willingness, as the 100th Prime Minister of Japan. Many newspapers today reported on this. A report in The Cross said that Japan is not advocating revolution. In the country, the election of Fumio Kishida shows that the Liberal Democratic Party has chosen political continuity. The report quoted the French Strategic Research Foundation (FRS) Japan expert Valérie Niquet as analyzing that the representatives of the Liberal Democratic Party voted for stability and security. She does not expect too many major changes in Japan during Kishida’s tenure in the next few years. According to the report, Fumio Kishida, who was born in Hiroshima’s political family and served as Japan’s foreign minister from 2012 to 2017, usually gives people the impression of security. He actively advocated nuclear disarmament and pushed Obama’s historic visit to Hiroshima in 2016. On the economic front, the former banker promised to launch a new fiscal stimulus plan to accelerate Japan’s economic recovery after the new crown epidemic. At the same time, he also defended the consolidation of public finances. In 2020, Japan’s debt will reach a peak of 256% of GDP. He is very conservative in social issues. Unlike his rivals, Fumio Kishida opposes same-sex marriage and has reservations on the sensitive issue of whether married women can continue to use their maiden names. In particular, the report mentioned that he had posted a photo of himself and his wife on Twitter in order to show his image as an “ordinary” Japanese citizen during the campaign. In the photo, he was preparing to eat while his wife was standing in a kitchen apron. On the one hand, it has aroused public resentment, and the report said that this also reflects the huge gap between Japan’s conservative political elite and the younger generation who have long no longer trusted them.
“The Evergrande crisis, the Central Bank of China took action to keep the financial market calm”, an economic newspaper “Echo” reported that the debt crisis of China’s real estate giant Evergrande currently has limited impact on the financial market, mainly due to the People’s Bank of China, the Central Bank of China Inject liquidity support into the market to avoid panic. And it still has a lot of room for action in buffering the shock caused by the burst of the real estate bubble. According to reports, Evergrande Group, which is faltering with a huge debt of 260 billion euros, is facing increasing pressure. After failing to pay an interest in US dollars due last week, another interest in US dollars due to be repaid on Wednesday failed to be paid. And its recent sale of its shares in a Chinese bank at a price of US$1.55 billion could not even begin its rescue, because the sale proceeds will be used directly to repay its debt in this bank. Fitch’s credit rating on Evergrande has been downgraded from “CC” to “C”, which is the last level before debt defaults.
Although Evergrande faces huge debts and complex links with China’s financial system, China’s financial markets have yet to show signs of panic. Of course, interest rates on high-yield bonds have risen sharply, especially in the real estate sector, but the current tensions are limited to the riskiest bonds. The report said that compared with the sharp volatility of the stock market, the relative calm of the financial market is attributable to the Central Bank of China. On Wednesday, the central bank once again injected 100 billion yuan into China’s financial system through reverse repurchase. In addition, the central bank proposed at the end of the last monetary policy meeting to “maintain the healthy development of the real estate market and protect the rights and interests of home buyers.” Since September 17, the People’s Bank of China has injected a total of 750 billion yuan. Due to ample liquidity, the inter-bank market overnight lending rate fell below 1.5% for the first time since May. The analysis pointed out that in addition to injecting capital flows into the market, the central bank is likely to need more means to contain the possible shock waves of Evergrande’s restructuring. Chinese experts do not rule out reducing the deposit reserve ratio in the next few weeks to support the economy.
According to reports, the Evergrande crisis triggered a hedge by foreign investors, and the largest retirement investment fund, GPIF, Japan, has decided not to invest in Chinese government bonds. Gilles Moëc, chief economist of AXA Investment Management, said that even if this practice develops in a snowball style, China’s financial system has enough resources to deal with it and can use its huge foreign exchange reserves. At the same time, the People’s Bank of China can also intervene in the upcoming reorganization of Evergrande. Although the Chinese authorities have been silent about Evergrande’s handling intentions so far, many analysts predict that local governments will be encouraged to take over Evergrande’s real estate projects. In addition to providing liquidity support to the market, the People’s Bank of China can provide more financial support to banks that purchase local government bonds.
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