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China’s real estate sector is falling into dominoes. Beijing accuses companies of “mismanagement” – Executive Digest

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China's real estate sector is falling into dominoes.  Beijing accuses companies of "mismanagement" - Executive Digest

The default by the Evergrande group appears to be the first part of a Chinese real estate domino strangled by debt.

Sinic Holdings warned lenders and investors last week that it will likely not pay off the $ 250 million in offshore bonds due this Monday. So far, the regional press has not reported that such a payment has been made.

On Friday, another Chinese real estate giant, China Properties Group, announced the first round of defaults on a $ 226 million debt that expired on October 15.

Added to this list is Fantasia Holdings, which has had $ 206 million in debt since early October.

The news comes in the same week that Evergrande will officially default on it if it does not pay interest on its US dollar offshore bond maturing in September.

The company has remained silent on coupon payments on four other bond issues that have expired in recent weeks.

Last week, a number of rating agencies were forced to downgrade the ratings of several Chinese real estate companies.

The People’s Bank of China has already warned that real estate companies that have issued debt securities offshore abroad “must fulfill their obligations”, barring any support from the state.

Gov. Yi Gang stressed on Sunday that authorities will prevent Evergrande’s concerns from spreading to other real estate companies.

“The Chinese economy is doing well despite the mismanagement of some companies,” concluded the governor, quoted by Reuters.

Real estate accounts for about a quarter of China’s GDP, according to Moody’s.

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Economy

Garden of Osorio. After arguments and threats of reprimands, the banker slams the door

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Garden of Osorio.  After arguments and threats of reprimands, the banker slams the door

The Portuguese commando of the banking world slammed the door of the second largest Swiss bank. António Horta Osorio stepped down as president of Credit Suisse nine months after taking over the banking institution, following an internal investigation by the bank to determine if he violated current pandemic crisis regulations. He now explains his reasons for leaving: “I regret that some of my personal actions have caused hardship for the bank and compromised my ability to represent it inside and out,” the statement said, adding that “thus, I believe that my dismissal is in the interests of the institution and its shareholders at this critical time.”

Earlier this month, the chairman of Credit Suisse assured that the Portuguese banker would receive a formal reprimand from the board of directors after an internal investigation confirmed that Horta Osorio had violated domestic rules regarding covid-19 for the second time. It was about his entry to Switzerland at the end of November in violation of quarantine rules. A situation which he confirmed himself, claiming that it was not intentional and that the trip was reported to Swiss health authorities and the financial regulator. But this was not an unprecedented event. The same thing already happened in July when he attended the Wimbledon tennis tournament when he was supposed to be in isolation, against the country’s rules.

A Portuguese banker has been called in to lead Credit Suisse to manage the crisis caused by the Greensill Capital and Archegos Capital Management scandals, which cost the bank more than five billion dollars (more than 4.3 million euros). In fact, the fall of Greensill was the first of two major problems to emerge in 2021, soon followed by the collapse of Archegos Capital Management, which the Swiss bank funded with billions of euros.

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Thus, Credit Suisse remains in the grip of one of the most serious crises since 2008, which Horta Osorio was unable to resolve by leaving through a small door. On the day he announced his departure, the financial institution’s shares fell 2.26% to 9.33 Swiss francs (8.94 euros).

“Club” of great bankers Nicknamed El País “city samurai” or “special banker” to others, he led Llodys, considered one of Britain’s largest retail banks, for 10 years. He left the presidency in June last year – despite announcing his departure more than a year earlier – after completing a third strategic plan developed for the bank, whose main tasks were to prepare it for the digital world. From there I was ready to go to Switzerland.

In 2020, he received the New York Foreign Policy Association Award for his international career in several countries and for his contribution to spreading his knowledge of international economic and financial affairs. He also received a Visionary Award from the British REBA for Lloyd’s exemplary approach to the mental well-being of employees and society in general, and was knighted by the Kingdom of Elizabeth II for his role in rebuilding the British financial institution after the financial crisis. And he was even considered one of the 50 most influential personalities in the world according to Fortune.

The fact that he publicly admitted that he suffered from burnout did not weaken him, on the contrary, since this discussion on this topic was never openly held among top managers.

Married with three children, he is known for his passion for sushi, diving, tennis and skiing. The banker holds a degree in business management and administration from Católica, having started his career at Citibank. While still working, he received an MBA from Insead, after which he was hired by Goldman Sachs. He develops his activities in New York and London related to corporate finance in Portugal. From there to joining Santander was a leap. At the age of 39, he became the youngest president of a bank in Portugal and managed to turn it into one of the largest national banks after he managed to buy Totta and Crédito Predial, thus stamping his passport into the club of the great Portuguese bankers. . He later dropped the bomb, saying he was going to leave the country.

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However, he was always attentive to the problems of the Portuguese economy. Horta Osorio spoke on several occasions about the problem of the country’s lack of ambition, and even moved to an “alarming” level of bad debts in Portuguese banks.

He recently stated that “it’s amazing that in Portugal you earn an average of a thousand euros a month”, while “in Ireland you earn twice as much” and “in Spain you earn 50% more”. And he went even further, asking the question: “Are we satisfied with the level of wealth that we have? Are we satisfied with a country that is not growing? Shouldn’t we have big ambitions?

Other disputes This is not the first time that Horta Osorio has been involved in controversy. Behind the scandal with the payment of personal expenses with bank money, when he was in Singapore to attend the International Monetary Conference. The information was disseminated by The Sun newspaper and pointed to accounts of about four thousand euros. In addition to the “party”, expenses were to be made with the help of consultant friend Tony Blair, with whom the banker was photographed walking in Singapore. There were rumors at the time that it was an extramarital affair. The story has taken on a broader scope since three years ago the banker himself introduced a code of conduct for all employees of the financial institution. One of the points was about the image that bank employees should create: behave moderately and take into account how family members and friends will perceive it.

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The Lord Who Follows Axel Lehamn has been chosen by Credit Suisse to replace the Portuguese banker where he has worked since October last year. “Lehmann is ideally placed to lead the bank’s strategic transformation,” Credit Suisse vice president Severin Schwan said the same day the Portuguese manager’s resignation was announced.

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EDP ​​puts forward proposal for conversion of Pego plant – Energia

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EDP ​​puts forward proposal for conversion of Pego plant - Energia

EDP ​​is one of the candidates for assignment of the point of connection to the electrical network of the Pego power plant. A few hours before the closing of the open tender, which ends this Monday at 23:59, and in response to a question from Negosios, the electric company confirms that it has put forward a proposal, however, without providing further details on its content.

A the hypothesis has already been put forward Miguel Stilwell, CEO of EDP and EDP Renováveis, last November. “We are looking into Pego’s options. But we haven’t decided yet,” the official said.

“If we think we can bring a competitive offer to the table, we will obviously move forward,” he added. Responding to the same question about the content of the proposal, Stilwell said it would “definitely include a renewable energy component” and “may include a hydrogen component.”

The Pego plant stopped coal production at the end of November last year. Public auctions for the location of the point of connection to the power grid began in September, and about two dozen applicants will take part in them. A 630 MWh grid entry point considered “valuable” is at stake.

A preliminary report with the results of the tender will be published within 15 working days by the Directorate General of Energy and Geology (DGEG). It is expected that the final verdict after hearing the interested parties will be delivered within a month.

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Horta Osorio: between success in bank restructuring and the devastating impact of the pandemic

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Horta Osorio: between success in bank restructuring and the devastating impact of the pandemic

António Horta-Osorio took over as non-executive president of Credit Suisse in May 2021 and stepped down eight months later. The bank released a statement this Monday thanking Orta-Osorio for his work and immediately announcing his successor: Axel P. Lehmann. A short job in a Swiss bank is another chapter, now short, in a long career in banking for a Portuguese manager who has always been in the spotlight.

This time it wasn’t burn out (exhaustion), but the Swiss bank launched an investigation and concluded that Horta-Osorio had violated deconfinement. It is not known whether the imposition of a fine imposed by the Swiss authorities on the banker is under consideration.

Discomfort inside the bank after it became known that Horta-Osorio violated Swiss quarantine rules twice in connection with the Covid-19 pandemic, the latest in December when he traveled to Portugal for a few days after entering Switzerland, without complying with a minimum of 10 days of quarantine. He also skipped the lockdown in July when he traveled to London to watch the Wimbledon tennis tournament, Reuters reported.

Despite having worked at the bank for less than nine months, chairman (non-executive chairman), Horta-Osorio changed the executive team, developed a strategy for the future, which, according to the group, will be implemented. And made a global group risk analysis report.

Headquarters of Credit Suisse in Zurich. Photo: Credit Suisse

Swiss don’t forgive, source says to express, and even after resigning from his position, he may have to pay a fine. If Horta-Osorio had not resigned from his position, and if the management wanted to remove him, then there should have been a general meeting of Credit Suisse, because it was the shareholders who elected him, and it was the shareholders who fired him. .

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Ten years at Lloyds with goals achieved

After taking testimony abroad, the Portuguese banker left Santander Totta to run Abbey National, which Santander bought in the UK in 2006. To date, he has been the executive chairman of Santander in Portugal. He was replaced by Nuno Amado, but Horta-Osorio remained the same. chairman Santander in Portugal.

He served as president of Santander UK until 2010, but contrary to what many thought, he did not get a higher position in the structure of the parent company Santander. At this point, it was Ana Botin who took over the management of the bank in the United Kingdom. Coveted by Lloyd’s Bank, Horta-Osorio leaves Santander’s group to take on a new challenge: to clean up Lloyd’s Bank with the intervention of the British state. He was 46 years old and, according to Lloyd himself, at the time his salary was cut from what he was earning in Santander, UK. This will be compensated later.

The break with the Santander group, where he worked for about 17 years, was to lead the largest British retail bank and one of those in the “top 10” of the world. He took over the executive leadership in March 2011 and there were many challenges. The British state took 41% of the bank to avoid its collapse in the midst of the financial crisis and the Portuguese banker was tasked with putting the bank back on the market and returning the money to British taxpayers. Horta-Osorio managed to do it. And in June 2021, he leaves Lloyd’s Banking Group 10 years after joining it, having done what was required of him. In 2017, the institution has already returned to the private sphere. Since the beginning of the crisis in 2008, the company suffered losses, and in 2015 returned to profit.

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The bank itself, in a statement, revealed that six years after the Portuguese banker took over the executive leadership of the bank, “Lloyd has fully returned £21bn of taxpayers plus an additional £900m to the state” when Horta-Osorio announced in July 2020 that will leave the bank in 2021.

The Portuguese manager, born in 1964, had several episodes that marked his stay in London. At the end of 2011, he suffered a nervous breakdown, and excessive fatigue forced him to take a break from everyday activities. He even told the press at the time that “it was like running out of a battery.”

Chairman of Credit Suisse, recognized by Queen Elizabeth II.

In 2021, after leaving Lloyd’s, the challenge came from Switzerland. Not to be a leader chairman at Credit Suisse, a position that, while not as much pressure as executive management, allowed him to determine the strategy he should follow.

Antonio Orta-Osorio. Photo: Credit Suisse

The Portuguese banker has become the target of public recognition in His Majesty’s lands. He was awarded the title of Knight Bachelor of Nobility by Queen Elizabeth II in June 2021 among other titles for which he has been nominated.

Also in 2021, he became non-executive president of the Portuguese pharmaceutical company Bial at the invitation of Luis Portela. Among other positions, since 2011 he has been a non-executive director at the Champalimo Foundation.

Credit Suisse’s non-executive leadership began in May 2021 and ended in early January 2022, largely due to Horta-Osorio breaking Swiss lockdown rules twice during the pandemic.

His curriculum now includes not only management studies at Católica (1987), INSEAD (1991) and Harvard Business School (2003), but also a combination of various professional experiences, always in the financial field, since his two-year tenure at Goldman. Sachs (in the early 1990s), his long career in Santander (from 1993 to 2010), his successful decade at Lloyds (from 2011 to 2021) and now his shortest job in Zurich.

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