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>>> China’s deflationary spiral is now entering dangerous new stage
Bloomberg News
Sep 9, 2024
https://finance.yahoo.com/news/china-deflationary-spiral-now-entering-103006274.html
(Bloomberg) — Deflation stalking China since last year is now showing signs of spiraling, threatening to worsen the outlook for the world’s second-largest economy and raising calls for immediate policy action.
Data released Monday confirmed that apart from food costs, consumer price growth barely registered in large swathes of the economy at a time when incomes are sagging.
A broader measure of economy-wide prices known as the gross domestic product deflator will likely extend its current five-quarter drop into 2025, according to Bloomberg Economics and analysts at banks including BNP Paribas SA. That would amount to China’s longest streak of deflation since data began in 1993.
“We are definitely in deflation and probably going through the second stage of deflation,” said Robin Xing, chief China economist at Morgan Stanley, citing evidence from wage decreases. “Experience from Japan suggests that the longer deflation drags on, the more stimulus China will eventually need to break the debt-deflation challenge.”
The danger for China is deflation could snowball by encouraging households reeling from falling paychecks to cut back on spending, or delay purchases because they expect prices to fall further. Corporate revenues will suffer, stifling investment and leading to further salary cuts and layoffs, bankrupting families and firms.
Private surveys show that’s already starting to happen. In sectors of the economy favored by the government — such as electric vehicle-manufacturing and renewables — entry-level salaries declined by almost 10% in August from a peak in 2022, according to findings by Caixin Insight Group and Business Big Data Co.
A survey of 300 company executives by the Cheung Kong Graduate School of Business showed growth in labor costs last month was the weakest since April 2020, when China’s initial Covid lockdowns began to ease.
Separate data from Zhaopin Ltd. shows average hiring salaries in 38 major cities barely changed in the second quarter, in contrast to the 5% growth seen in the two years before the pandemic.
It’s a cycle the world has seen before in Japan starting in the 1990s during a period that came to be known as its “lost decades” — when a grinding stagnation followed a burst bubble in real estate and financial markets.
While Chinese officials have sought to stifle discussion about deflation, warning analysts to avoid using the term, it’s beginning to enter public dialogue. Former central bank Governor Yi Gang last week said rooting out deflation has to take priority for policymakers, a rare admission by a prominent figure in China that falling prices are threatening the outlook.
Yi called for “proactive fiscal policy and accommodative monetary policy” and said officials “should focus on fighting deflationary pressure,” at a panel discussion at the Bund Summit in Shanghai on Friday. China’s immediate goal should be to turn its GDP deflator positive in the coming quarters, he said.
So far, officials have given no sign of any significant shift from their cure-all of encouraging production rather than addressing weak demand with steps such as greater government spending on public services and consumer subsidies.
In a sign price pressures are becoming even more subdued, China’s core inflation — which strips out volatile items such as food and energy — cooled in August to the weakest in more than three years. Expectations for deflation are spilling into markets, stoking a bond rally that’s sent yields to record lows and stoked official concerns that banks have become too exposed to interest-rate risks.
The weak price pressures are evident in the growth pace of China’s nominal GDP, which expanded just 4% in the second quarter — well under the nation’s real economic growth goal of around 5% this year.
At times of weak price gains, nominal expansion is a more useful indicator because it better reflects changes in wages, profits and government revenue, Luo Zhiheng, chief economist at Yuekai Securities Co., wrote in a note earlier this month.
For Jack Liu, a 37-year-old sales engineer of aluminum products in southern China, the impact hit home after realizing he no longer ordered extra eggs at breakfasts.
Plummeting market demand forced his company to cut prices and sell at a loss last year. That slashed his income to less than a 10th of what once exceeded 1 million yuan ($141,000), making mortgage payments a struggle.
“The country doesn’t admit there’s deflation,” said Liu, who lives in Foshan in Guangdong province. He has a modest following of 1,100 people on the Instagram-like Xiaohongshu, where he warns regularly about the danger of deflation.
The speed of the deterioration in China’s price outlook has taken the market by surprise.
Inflation was weaker than forecast in three of the past four months, growing just 0.6% in August — an increase due largely to a 2.8% pickup in food prices. Core inflation last month rose just 0.3% to remain below 1% for an 18th month.
Underscoring the drag on inflation, producer prices have been falling since late 2022. Manufacturers’ raw material and selling prices both contracted for the second month in August, official data shows, while charges by services and construction companies shrank at the fastest pace since April 2020.
The dilemma is that even monetary expansion in China could be deflationary by being mainly directed at the supply side of the economy, Michael Pettis, a senior fellow at the Carnegie Endowment for International Peace, wrote in an article last month.
Meanwhile, the deflationary mindset is starting to take hold. Consumer confidence is hovering at a record low, and households report a growing willingness to save instead of spending or buying homes.
For Liu, the aluminum industry worker, as the pain deepens, the solution lies with policymakers in Beijing. “The government needs to at least take some concrete measures,” he said, “to lift consumption and improve people’s expectations.”
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>>> RELX PLC (RELX), together with its subsidiaries, provides information-based analytics and decision tools for professional and business customers in North America, Europe, and internationally. It operates through four segments: Risk; Scientific, Technical & Medical; Legal; and Exhibitions. The Risk segment offers information-based analytics and decision tools that combine public and industry specific content with technology and algorithms to assist clients in evaluating and predicting risk. The Scientific, Technical & Medical segment provides information and data sets that help researchers and healthcare professionals to advance science and health outcomes. The Legal segment provides legal, regulatory, and business information and analytics that help customers in decision-making, as well as increases the productivity. The Exhibitions segment is involved in the business that combines face-to-face with data and digital tools to help customers learn about markets, source products, and complete transactions. The company was formerly known as Reed Elsevier PLC and changed its name to RELX PLC in July 2015. RELX PLC was incorporated in 1903 and is headquartered in London, the United Kingdom.
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>>> Everything China is Doing to Rescue Its Battered Stock Market
Bloomberg News
Feb 7, 2024
https://finance.yahoo.com/news/everything-china-doing-rescue-battered-083645073.html
(Bloomberg) -- Chinese stocks have staged a nascent recovery from a $7 trillion rout, thanks to intensifying rescue efforts as authorities seek to prevent the market from slumping for a fourth straight year.
The benchmark CSI 300 Index has gained 5.2% so far this week. The rebound came after a quickening drumbeat of policy support, which included replacing the market regulator and wider trading curbs as well as state buying of major bank stocks. News that regulators planned to brief President Xi Jinping on markets also fueled optimism.
Chinese leaders are under mounting pressure to act more resolutely to end a stock-market meltdown that risks undermining financial and social stability, at a time when the economy is mired in worsening housing woes and persistent deflationary pressures. Authorities also appear keen to prevent a weak market from further dampening already anemic consumption as China enters the Lunar New Year holiday week.
Here’s a list of measures that have either been announced or reported on to start the year as China seeks to aid the economy and calm investors.
Feb. 7:
In a surprise move after markets had closed for the day, Beijing replaced the head of its securities regulator. Wu Qing, a banking and regulation veteran who earned the reputation as “the broker butcher” when he led a crackdown on traders in the mid-2000s, is replacing Yi Huiman as chairman and party chief of the China Securities Regulatory Commission, according to the official Xinhua News Agency.
Feb. 6:
Funding Support for Developers
China’s financial regulator calls for further, prompt implementation of a financing coordination mechanism to support developers at a meeting, according to a statement.
Regulators Plan to Brief Xi
Regulators plan to brief President Xi Jinping on the market as soon as Tuesday, Bloomberg News reported. While it’s unclear whether any new support measures will come out of the Xi meeting, traders are hoping this time will be different.
Sovereign Wealth Fund Pledges Support
Central Huijin Investment Ltd., the unit that holds Chinese government stakes in big financial institutions, said it will buy more exchange-traded funds. The securities regulator vowed in a follow-up comment to maintain stable market operations, adding that authorities will continue to guide various institutional investors and funds to enter the market with greater efforts.
M&A and Restructuring Support
China will strongly support listed companies to enhance their investment value through mergers, acquisitions and restructuring, the China Securities Regulatory Commission said in a statement.
‘National Team’ Buying Shares
The so-called national team has bought roughly 70 billion yuan ($9.7 billion) of onshore Chinese shares in the past month, according to estimates by Goldman Sachs, adding that 200 billion yuan or ~0.8% of free float market capitalization is needed to stabilize the market.
The national team refers to a group of Chinese state funds tasked to support markets. Meantime, overseas investors, which may include offshore proxies for such state funds, bought another 1.7 billion yuan of mainland stocks via trading links with Hong Kong Wednesday, marking the seventh consecutive session of inflows.
Read more: China’s Small-Cap Crash Shows What Happens Without Market Rescue
Restricting Sales
China is tightening trading restrictions on domestic institutional investors as well as some offshore units as authorities fight to stem a deepening stock rout, according to people familiar with the matter.
Officials this week imposed caps on some brokerages’ cross-border total return swaps with clients, limiting a channel that can be used by China-based investors to short Hong Kong stocks, said the people, asking not to be identified discussing a private matter. At the same time, some Chinese brokers that use the channel to buy mainland shares for their offshore units were told not to reduce their positions, the people said.
Read more: China Widens Stock Trading Curbs on Quants, Offshore Units
Feb. 5:
Monetary Stimulus
Beijing added about 1 trillion yuan into markets Monday with the previously announced cut to banks’ reserve requirement ratio taking effect. That has helped keep cash ample, with money markets showing few signs of stress.
Regulators Check in With Listed Firms
China’s regulatory officials visited listed companies in 20 provinces and municipalities from Jan. 29-Feb. 4, according to a statement from China Securities Regulatory Commission. Regulators are accelerating their process to solve issues raised by listed companies on taxation policy, financing, land, imports and exports, as well as intellectual property right protection.
Help for Home Builders
Cash-strapped Chinese property developers said a range of their housing projects have been listed as eligible for funding under the latest program to support the ailing sector. The flurry of activity comes just three weeks after Beijing urged local authorities to draft a list of projects eligible for funding. Policymakers want risk-averse banks to step up lending to the real estate sector, which saw credit growth slow to the weakest in more than a year last quarter, undermining developers’ ability to complete homes.
Promise to Deal with Margin Call Risks
China stock traders are unwinding their margin debt rapidly, underscoring how a prolonged selloff may be leading to some forced share liquidation. In response, the securities regulator said it will guide brokerages to adjust their margin call levels and maintain “flexible” liquidation lines in an effort to reduce pressure from forced selling of pledged shares.
Feb. 4:
Regulator Vows to Prevent ‘Abnormal Fluctuations’
The China Securities Regulatory Commission vowed on Sunday to prevent abnormal fluctuations, saying it would guide more medium- and long-term funds into the market and crack down on illegal activities including malicious short selling and insider trading.
Feb. 1:
PBOC Supports Housing and Infrastructure
The People’s Bank of China provided 150 billion yuan worth of low-cost funds for lending to housing and infrastructure projects last month, stepping up support for the economy.
Share Buybacks
Firms listed in mainland China and Hong Kong spent 14 billion yuan and HK$21 billion ($2.6 billion) repurchasing shares last month, respectively, each marking a record since 2021 when Bloomberg began compiling the data.
Jan. 28: Securities Lending Restriction
Securities regulators said they will halt the lending of certain shares for short selling, the latest attempt to put a floor under the stock market rout. Strategic investors, which typically refers to holders with restricted shares, won’t be allowed to lend out the stock during agreed lock-up periods.
Read More: China Tightens Securities Lending Rule to Support Stock Market
Jan. 27: Real Estate Easing
Guangzhou, one of China’s biggest cities, further loosened home-buying curbs in a bid to stem falling prices. Beijing, Shanghai and Shenzhen have lowered down-payment requirements since November.
Read More: China’s Guangzhou Eases Property Curbs Further as Prices Fall
Jan. 26: Aid for Developers
The Ministry of Housing and Urban-Rural Development said it will provide a list of housing projects eligible for funding support by the end of the month, the latest attempt to boost lending for real estate to slow the sector’s slump.
Read More: China to List Property Projects Eligible for Funding
The same day, the National Financial Regulatory Administration urged banks to support requests by qualified developers including extending existing loans and adjusting repayment arrangements.
Read More: China Property Developers Rise After Guangzhou Easing, Supports
Jan. 24: RRR Cut, Property Loans, More
People’s Bank of China Governor Pan Gongsheng said the central bank will lower the reserve requirement ratio — the amount of cash lenders must keep in reserve — by 0.5 percentage points on Feb. 5 to release 1 trillion yuan ($139 billion) in long-term liquidity to the market. The announcement, coming after official data showed the nation’s economy was still grappling with major challenges, marked the biggest RRR cut since 2021.
Read More: China Ramps Up Stimulus, Market Rescue With Sudden RRR Cut
Hours later, regulators unveiled more measures, including broadening the use of commercial property loans for developers to help them repay other debt.
Read More: China Adds Support for Developer Funding By Easing Loan Uses
The same day, authorities in China and Hong Kong announced steps to deepen financial ties, including facilitating real estate purchases and expanding a program that allows for personal investments in the Greater Bay Area, a region of 70 million people that includes Hong Kong and megacities in the southern mainland such as Shenzhen and Guangzhou.
Read More: China and Hong Kong Broaden Investment and Financing Links
Jan. 23: Stock Rescue Package
Policymakers are considering using about 2 trillion yuan, mainly from the offshore accounts of Chinese state-owned enterprises, as part of a stabilization fund to buy shares onshore through the Hong Kong exchange link, Bloomberg reported. They have also earmarked at least 300 billion yuan of local funds to invest in onshore shares through China Securities Finance Corp. or Central Huijin Investment Ltd. A day earlier, Premier Li Qiang asked authorities to take more “forceful” measures to stabilize the stock market and investor confidence. His request came after the CSI 300 Index touched a five-year low.
Read More: China Eyes Stock Rescue Package Backed by $278 Billion
Jan. 19: Signs of State Buying
The aggregate turnover in some of the country’s top exchange-traded funds — commonly watched for signs of state-led buying — reached the third-largest weekly total ever. It was the most since July 2015, when the so-called “national team” tried to offset selling momentum amid an epic bubble bursting.
Read More: Record Turnover in China ETFs Fuels State Buying Speculation
Jan. 16: Special Bonds
China is considering 1 trillion yuan of new debt issuance under a so-called special sovereign bond plan, Bloomberg News reported. The proposal discussed by senior policymakers would involve the sale of ultra-long sovereign bonds to fund projects related to food, energy, supply chains and urbanization.
Read More: China Weighs More Stimulus With $139 Billion of Special Bonds
Jan. 5: Rental Housing
The PBOC and the NFRA published guidelines on financial support for the development of the market for rental housing. That included a policy to encourage banks to provide loans for developers, industrial zones, certain rural organizations and companies to build new homes for long-term renting or renovating existing facilities for that purpose.
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>>> 6 Roman Emperors that Shaped the History of Rome
Many emperors led Rome throughout its long history but only a few left a profound mark, shaping the Empire’s course. Here are the six most influential Roman emperors.
The Collector
Aug 30, 2021
By Vedran Bileta, MA in Late Antique, Byzantine, and Early Modern History, BA in History
https://www.thecollector.com/roman-emperors-history-roman-empire/
The Roman Empire left an indelible imprint on the history of mankind. At its apex, this vast Empire spanned continents and included over 65 million people, who spoke one language and used one coinage. This vast empire was protected by the mighty Roman legions stationed along the frontier — from the forests of Britain to the sands of North Africa, along the great European rivers of the Danube to the Rhine to the Persian Gulf. Even today, ruling over such a complex and enormous state would be a monumental task, not to mention the threats from external and internal rivals. Many Roman emperors managed to fulfill their duty while some failed, losing their life. However, a few managed not only to achieve greatness but to change the state’s structure and direction, reshaping history itself. This is their story.
Augustus: First of the Roman Emperors
When Gaius Octavian was born in 63 BCE, few could have predicted this boy would become ruler of Rome, reshaping its history and laying the foundations of a world superpower. Octavian emerged on Rome’s political stage following the assassination of his uncle Julius Caesar. In his will, Caesar adopted the boy, making him his heir. The civil wars that followed Caesar’s death ended in 30 BCE when Octavian eliminated Mark Antony and Cleopatra. He was now in control of the wealth of Egypt and the entirety of the Mediterranean. Most importantly, Octavian was the sole ruler of the Roman Republic.
The ruins of the Republic would soon transform into something greater. With the help of his loyal friend, Marcus Vipsanius Agrippa, Octavian convinced the Senate to give him unprecedented power. From 27 BCE until his death in 14 CE, Octavian, now known as Augustus, seized control of the government and the army. He was a principal source of law, controlling state finances, foreign policy, and religion. Augustus also had monopoly over the legions. The Roman military was now a standing army, with regular salaries and pensions. To avoid further civil wars and curb the political ambitions of military commanders, Augustus transferred the legions to the frontier. To protect himself, he established the Praetorian Guard.
Although he wisely avoided abusing power and co-operated with the Senate, acting as the princeps (first among equals), Augustus remained in control — he was the first of the Roman emperors. From Augustus onwards, one man would rule over the entire Empire, and his descendants would form the first imperial Roman bloodline — the Julio-Claudian dynasty.
Vespasian: A Roman Emperor by Law (and Might)
The Julio-Claudian dynasty met a bloody end with the violent death of Emperor Nero. His death was the end of one illustrious bloodline and the beginning of a period of chaos that plunged the Empire into a bloody civil war, also known as the “Year Of the Four Emperors”. After three of these Roman emperors died, one man emerged victorious. In 70 CE, at the head of his legions, Titus Flavius Vespasian arrived in Rome and proclaimed himself emperor.
Vespasian had strong military support (always a good thing in Rome) but he could not lay claim to the dynasty, having no blood relation. To resolve the issue, a law was passed before his arrival to Rome, conferring imperial powers on him (the Lex de imperio Vespasiani), which allowed Vespasian to take the diadem and establish his own Flavian dynasty of Roman emperors.
Vespasian began a propaganda campaign to further legitimize his rule, distributing coinage across the Empire, praising the emperor’s restoration of peace, and strengthening the legions. The emperor also stabilized finances, paying particular attention to the provinces, while in Rome, he reshaped the city’s skyline with monumental structures like the Colosseum.
Augustus laid the foundation for the Roman Empire and established the first imperial dynasty but Vespasian took it to a new level, establishing a law which allowed him and all Roman emperors to legitimize their claim.
Hadrian: Establishing The Empire’s Frontier
During the reign of Emperor Trajan, one of the most powerful Roman emperors, the Roman Empire reached its greatest extent. His achievements were recorded in stone, in monuments erected across the Empire, including the famous Trajan’s Column. One of the men who followed Trajan on his campaigns was Publius Aelius Hadrianus or Hadrian. Marked as Trajan’s successor, Hadrian took the throne in 117 CE. His reign was marked by a period of peace and consolidation. The only exception was a revolt in Judaea in 132 CE.
Hadrian was fond of Hellenistic culture. He was also a traveler, who spent most of his reign roaming all over the vast empire. Hadrian looked after the imperial army, and subsequently the soldiers adored their commander-in-chief. Thus, it is not surprising that the emperor who personally inspected the entire length of the border also established the Empire’s frontiers. Halting expansion, Hadrian focused on strengthening his defenses. In Africa, he built fortified roads. On the Rhine and Danube, palisade walls, watchtowers, and forts defined Roman-controlled territory. Hadrian’s most famous work still stands in northern England — a stone wall spanning from coast to coast, bearing the emperor’s name.
Unlike his predecessors who pushed the Empire’s borders forward, Hadrian knew when to stop. His defensive works separated the Roman territory from the barbaricum, and solidified the image of the Empire and its borders, which, apart from a few minor adjustments, Hadrian’s successors continued to keep in place.
Marcus Aurelius: An All-Inclusive Roman Emperor
Marble bust of cuirassed Marcus Aurelius, ca. 175 CE, Saint-Raymond Archaeological Museum
Unlike the violent collapse of the Julio-Claudians, the power transfer between the next two successor dynasties was smooth and peaceful. Hadrian chose Marcus Aurelius, still a child, to be his successor. Thus, Hadrian’s successor, Emperor Antoninus Pius, groomed Aurelius for his future role.
The training served Marcus Aurelius well. Upon his succession in 161 CE, the new emperor had to deal with several crises on the Empire’s frontiers. Rome’s eternal nemesis, Persia, threatened the eastern front, while the breakdown of the Danubian Limes exposed the imperial heartland of Italy to barbarian attack. Initially, Marcus Aurelius had the support of his co-ruler, Lucius Verus. But after Verus’ death from the plague, the emperor had to deal with the crises alone. Marcus Aurelius spent the rest of his reign on the Danube, where he died in 180 CE.
Perhaps due to the emperor’s constant involvement in warfare and the need for efficient crisis management, Marcus Aurelius began promoting both army officers and civilian administrators on the basis of merit and ability, rather than birth and class. The process started under Hadrian but intensified under Aurelius. To avoid displeasing the Senate, the promoted men would be elevated in their rank too. The consequence of this policy was greater social mobility. More importantly, Aurelius’ reforms broadened the base for army recruitment, which allowed for greater flexibility in the future.
Septimius Severus: Militarizing and Sacralizing the Imperial Family
The assassination of Commodus in 192 CE brought the Antonine dynasty to an end. What followed was a bloody civil war. Eventually, Lucius Septimius Severus, a North African aristocrat and general, emerged as the victor, taking the throne in 197 CE. Severus tolerated the Senate but made it clear that the army was the basis of his power. A generous salary rise, the first in more than a century, further solidified the army’s support. More importantly, it tied the military not only to Severus but to his children and the emerging Severan dynasty.
But Severus did not stop there. Besides the militarization of the new dynasty, he also made the first moves to detach the imperial household from the populace. Severus made himself and his family sacrosanct, setting a precedent that would become a fourth-century trend. Inscriptions and monuments presented the domus divina—the imperial family—as a sacrosanct and unassailable entity.
Severus’ reforms, however, failed to protect his dynasty. The soldiers were powerful backers, but only for Roman emperors who proved to be competent commanders. The violent death of the last Severan emperor, Severus Alexander, at the hands of his own troops, kickstarted a chaotic period, which required a military man on the throne, who more often than not lost his life in internal or external conflicts. The Empire, however, endured, and when Diocletian took the reins at the end of the 3rd century, he established an autocratic and absolutist rule—the dominate—following Severus’ model.
Constantine the Great: First of the Christian Roman Emperors
Diocletian’s solution for the Empire’s stability was the Tetrarchy — a system that allowed for the rule of four Roman emperors (two senior Augusti and two junior Caesares). The plan was to satisfy the powerful generals’ political ambitions by allowing each of them to rule over a quarter of the Roman world. Unsurprisingly, the system backfired not long after Diocletian’s voluntary abdication. Instead of bringing cohesion and peace to the Empire, it created new rivalries, sparking further civil wars. The winner of those wars would make one of the most crucial changes to the imperial system and he would change the course of the Empire for centuries to come.
Flavius Valerius Constantinus, or Constantine the Great, was the son of one of the tetrarchs. Upon his father’s death, Constantine was proclaimed emperor by his soldiers, plunging headfirst into the two-decade-long civil war. In 312 CE, Constantine’s troops defeated one of his rivals, Maxentius, at the Battle of Milvian Bridge outside Rome. According to a popular legend, prior to the battle, Constantine saw a cross in the sky and was told: “In this sign shall you conquer.”
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>>> The Council of Trent opens.
December 13, 1545.
By Jesús Vico and Beatriz Camino.
The Council of Trent
The Council of Trent (1545 to 1563) assembled Catholic clergy under the leadership of Pope Paul III as a response to the Protestant Reformation. Throughout three sessions, the Council reiterated the Catholic Church’s authority and denounced Protestant theology, marking the inception of the Catholic Counter-Reformation.
Background: The Protestant Reformation
The Protestant Reformation started in the Germanic regions of the Holy Roman Empire in 1517 when Martin Luther posted his 95 Theses. His intention was to invite fellow clerics to engage in a debate regarding the sale of indulgences, which were certificates promising a shorter stay in purgatory after death (lol). By objecting to their sale, he challenged the pope’s authority over souls in purgatory and criticized the apparent greed underlying the practice. In response, the Church excommunicated him in 1521, branding him a heretic. Despite this, Luther’s 95 Theses and other writings had already been published and widely disseminated.
In an attempt to reunify the Church, Charles V, Holy Roman Emperor, convened the Diet of Augsburg in June 1530. The Lutherans presented the Augsburg Confession, while the Catholics offered the Confutatio Augustana. However, neither party accepted the other’s confessions of faith, and no resolution was reached.
Efforts for reconciliation between Catholics and Protestants were made again in 1537 by Pope Paul III and Charles V. However, this meeting was never realized due to ongoing military conflicts between the latter and King Francois I of France. Charles V, motivated by the need for unity against a potential Ottoman Empire invasion, sought reconciliation among his subjects. The next reconciliation attempt was scheduled for December 13, 1545, in Trent, Northern Italy.
The First Session
Despite being labelled as an ecumenical conference, the Council of Trent excluded Protestants from meaningful participation by denying them the right to vote or voice their opinions in the proceedings. In response, Protestant clergy opted to abstain from attending. Thus, the Council of Trent transformed into a Catholic assembly with the primary objective of rectifying Church abuses, particularly the sale of indulgences, addressing alleged errors in Church teaching and practice, and reinforcing its authority.
To begin with, the Council had to first reach a unanimous consensus on the books of the Bible considered Holy Scripture. In this regard, it affirmed the Vulgate translation of Saint Jerome as the sole authoritative text. Moreover, the Council refuted Luther’s assertion that sinful humanity couldn’t fulfil the law and emphasized God’s grace available through good works.
The Council affirmed Church teachings, covering various aspects such as the impotency of human nature to justify man, the dispensation and mystery of Christ’s advent, and the description of justification and its mode in the state of grace. These canons condemned the Protestant Reformation as heresy and labelled its supporters as heretics, highlighting the Church’s position that individual interpretation of truth and scripture was unreliable due to the inherent sinfulness of human nature. The Council also underscored the importance of adhering to the Church’s traditional practices to ensure a true understanding of scripture. Subsequent sessions were interrupted by the plague, and the Council was prorogued in September 1549.
The Second & Third Sessions
The second session of the Council of Trent, which commenced in May 1551 under Pope Julius III, aimed to address theological questions surrounding the Eucharist. Certain Protestant factions asserted that the Mass was merely a commemoration of Christ’s sacrifice, rejecting the belief in the real presence of God during the consecration and the transformation of bread and wine into Christ’s body and blood. The Council condemned this view as heresy, unequivocally stating that Christ was present in the Eucharist.
Under Pope Pius IV, the Council resumed in January 1562. This session focused on reforming Church abuses, including addressing issues related to poorly educated clergy who relied on parishioners’ tithes without providing adequate spiritual guidance. The Council endorsed the establishment of additional seminaries and promoted more in-depth study for clerical candidates. Concerning the Protestant objection to the sale of indulgences, the Council resolved that indulgences would no longer be sold but could be obtained through a donation, with the process regulated.
Simultaneously, to curb the spread of Protestant ideas, the Council approved the Index Librorum Prohibitorum in 1563, which explicitly named the works of Reformers such as Luther, Zwingli, John Calvin, and others. Although detailed in its prohibitions, the Index essentially conveyed that any book condemned by the pope, Holy Office, or local authorities should be rejected by Catholics. The Index remained in effect until its suspension in 1967.
Aftermath
The resolutions, decrees, and canons of the Council of Trent served as the foundation for the Catholic Counter-Reformation, reinstating the Church’s authority through explicit rules, regulations, and definitions of Catholic identity. It essentially upheld medieval Church policies and traditions while reaffirming the Church’s central role as the sole authority in the Christian vision. Although some decrees, like the Index, have been suspended, the decisions of the Council of Trent continued to shape Catholic belief and practice until the 1960s and still partially influence the present.
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>>> Tsar Alexander I dies in unexpected circumstances - December 1, 1825.
By Jesús Vico and Beatriz Camino.
Alexander I Pavlovich (December 23, 1777 - December 1, 1825), was emperor of Russia from March 23, 1801, until his death. He also held the title of king of Poland from 1815 to 1825 and was the inaugural Grand Duke of Finland.
Early Life
Alexander was born in Saint Petersburg to Grand Duke Paul Petrovich (later Emperor Paul I) and Sophie Dorothea of Württemberg. Shortly after his birth, his grandmother, Catherine the Great, took him away from his father due to her strong aversion to him and to prevent his influence on the future emperor. This familial power struggle led to both sides attempting to manipulate Alexander, leaving him emotionally torn between his grandmother and his father.
Raised in the intellectually stimulating environment of Catherine's court, Alexander absorbed the principles of Rousseau's humanitarian philosophy, while learning the traditions of Russian autocracy. Moreover, Alexander's father instilled in him a paradoxical blend of a theoretical love for humanity coupled with a practical contempt for individuals. These conflicting influences shaped Alexander's dualistic approach in his political decisions.
The death of Catherine in November 1796 brought his father, Paul I, to the throne, whose reform attempts faced opposition from Alexander and several close advisers. The tensions culminated in his murder in March 1801. Following this, Alexander ascended to the throne on March 23, 1801, and was officially crowned in the Kremlin on September 15 of the same year.
His Reign
One of Alexander’s initial actions was the establishment of the "Committee of Public Safety". This committee, comprising Alexander's young and enthusiastic associates was tasked with formulating a plan for internal reform, with the aim of establishing a constitutional monarchy. The emperor intended to draft a constitution and grant political liberties influenced by the ideals of the Age of Enlightenment. Additionally, he sought to address the issue of serfdom in Russia, though this goal was only realized in 1861 during the reign of his grandson, Alexander II.
Still, notable reforms were taken, including granting freedom to publishing houses, winding down intelligence service activities, and prohibiting torture. However, legal reforms, including the codification of laws initiated in 1801, faced obstacles and were not fully implemented during his reign. The constitution remained unsigned, and the status of peasants saw little improvement.
In terms of foreign policy, Alexander's political decisions were marked by shifts and complexities. Initially, he was enamoured with the idea of a European confederation and influenced by Enlightenment ideals. Consequently, he reversed his father's policy, denouncing the League of Neutrals and making peace with the UK. He also had a brief admiration of Napoleon, entertaining thoughts of an alliance. However, events such as the murder of the Duc d'Enghien altered his perception and set the stage for his opposition to the French leader during the Napoleonic Wars.
This conflict showcased Alexander's complex role in European politics. In this regard, he articulated an idealistic vision, aiming for the triumph of "the sacred rights of humanity" and proposing a general treaty to establish rules among European states. However, the practical application of these principles faced challenges, and Alexander's alliance with Napoleon eventually soured. The campaign of 1812 marked a significant turning point in their relationship. The occupation of Moscow by French forces and the desecration of the Kremlin fueled his passionate hatred for Napoleon.
Later in his reign, Alexander began to distance himself from liberal ideals and moved towards a more conservative stance, particularly after events like the revolutionary conspiracy among officers and the plot to kidnap him. Moreover, he faced the dilemma of Greek independence, which made Alexander torn between his dream of a confederation of Europe and his role as a leader of the Orthodox crusade against the Ottoman Empire.
Death
In the autumn of 1825, Alexander contracted typhus while undertaking a voyage to the south of Russia. He eventually succumbed to the illness in the Russian city of Taganrog on December 1, 1825, and was interred at the Saint Peter and Paul Cathedral in Saint Petersburg on March 13, 1826.
The circumstances surrounding Alexander's death gave rise to rumours and conspiracy theories. Some speculated that his death and funeral were staged, and there were claims that he renounced the crown and lived out his life in solitude. Others even suggested that a substitute was buried as Alexander or that the grave was empty.
The confusion extended to matters of succession. Constantine Pavlovich, the heir presumptive, had renounced his rights of succession in 1822, a fact not publicly known at the time of Alexander's death. Consequently, the population initially swore allegiance to Constantine. The revelation of the true order of succession later identified Nicholas I as the rightful heir.
The aftermath also witnessed the Decembrist revolt, an attempt by liberal-minded officers to defend Constantine's supposed rights to the throne. However, Nicholas I ruthlessly suppressed the rebellion, sending its leaders to the gallows or Siberia.
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>>> Charlie Munger Raves About Warren Buffett's Rare Japanese Investment Opportunity Of A Century — 'It Was Like Having God Just Opening A Chest And Just Pouring Money Into It' — High Rewards For A Low Risk
Benzinga
by Jeannine Mancini
November 1, 2023
https://finance.yahoo.com/news/charlie-munger-raves-warren-buffetts-164102631.html
Warren Buffett’s unexpected decision to invest in Japan during the 2020 pandemic seems to have paid off, and no one appears more pleased than Berkshire Hathaway Inc. Vice Chairman Charlie Munger.
The strategy was a departure from the company’s well-known preference for American enterprises like Apple Inc., the Coca-Cola Co., Bank of America Corp. and American Express Co. The company’s portfolio has often been a testament to its confidence in the U.S. market. Speaking on the Acquired podcast in October, however, Munger pointed out that the Japanese investment was a distinctive and lucrative opportunity that couldn't be passed up.
"If you're as smart as Warren Buffett, maybe two, three times a century, you get an idea like that," Munger said on the podcast. He cited Japan's low interest rate environment as a key factor, saying, "The interest rates in Japan were 0.5% a year for 10 years, and these trading companies were really entrenched old companies."
Berkshire Hathaway's strategy involved borrowing money in Japan at a mere 0.5% interest and investing in companies there that offered a 5% dividend yield.
"It was like having God just opening a chest and just pouring money into it," Munger said.
Initially, Berkshire Hathaway declared a $6 billion investment across five Japanese trading houses — Itochu International Inc., Marubeni Corp., Mitsubishi Corp., Mitsui & Co. Ltd. and Sumitomo Corp. Group — in August 2020. That investment has grown substantially and is now valued at approximately $17 billion, thanks in part to both additional share purchases and soaring stock prices of the companies involved.
Munger provided more detail on the mechanics of the investment, indicating it wasn't an overnight success but rather a result of patient, incremental actions.
"The only way you could get it was to be very patient and just pick away at little pieces at a time. It took forever to get $10 billion invested, but it was awfully easy money," Munger said.
In contrast, U.S. interest rates have escalated to over 5% since last spring, adding another layer of context to the wisdom of this Japanese trade.
"We could do that, nobody else could," said Munger, highlighting that Berkshire's strong credit rating gave them access to such favorable borrowing terms in Japan.
In the Acquired podcast interview, the host pointed out a paradox: While Berkshire Hathaway's excellent credit allows it access to low-interest loans, the company's enormous scale makes it challenging to invest sufficiently large sums. In response, Munger agreed, stating, "That's true, but why shouldn't it be hard to make money? Why should it be easy?"
Before the podcast, at Berkshire Hathaway's annual shareholders meeting in May, Buffett shared insights into these investments, noting that the selected companies were "ridiculously" cheap and compatible with Berkshire's long-term vision.
Andrew McCagg of Nomura Asset Management UK Ltd. also offered his perspective on the investment.
"Improving shareholder returns were likely a bigger factor in Buffett's decision to buy Japanese trading houses than some of the other factors," he told Insider via email.
Berkshire Hathaway's Japanese investments, as described by Munger, represent a special kind of opportunity: high rewards for low risk. The investment appears to be a case study in successful financial strategy, blending patient capital allocation with keen market observation.
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>>> Japanese trading houses rise as Warren Buffett raises stakes and says he may buy more
CNBC
APR 11 2023
https://www.cnbc.com/2023/04/11/berkshire-japan.html
KEY POINTS
Warren Buffett told Nikkei he is considering additional investment in Japan’s five major trading houses.
Berkshire Hathaway has raised its stakes in all five trading houses to 7.4%.
Shares of Mitsubishi Corp. rose 2.1% in Japan’s afternoon trade, Mitsui & Co. gained 2.7% and Itochu Corp climbed 3%.
Shares of Japanese trading houses rose on Tuesday after Warren Buffett, chairman and CEO of Berkshire Hathaway, raised his stakes in the firms and said he may increase his holdings even further.
In an interview with Nikkei, Buffett said he is considering additional investment in five major Japanese trading houses, adding that he was “very proud” of his existing investments in them.
Shares of Mitsubishi Corp. rose 2.08% in Japan’s afternoon trade, Mitsui & Co. gained 2.66%, Itochu Corp climbed 2.98% and Marubeni Corp. advanced 4.55%. Sumitomo Corp. also rose 3.19%.
Berkshire Hathaway has raised its stakes in all five trading houses to 7.4%, according to CNBC’s Becky Quick. That’s up from positions of 6.6% in Mitsubishi Corp., 6.6% in Mitsui & Co., 6.2% in Itochu Corp., 6.8% in Marubeni Corp. and 6.6% in Sumitomo Corp, according to November filings.
Buffett told Nikkei that he is planning to meet with the companies later in the week “to really just have a discussion around their businesses and emphasize our support,” according to the report.
Japan’s five largest trading companies — known as sogo shosha — are conglomerates that import everything from energy and metals to food and textiles into resource-scarce Japan. They also provide services to manufacturers. The trading houses have helped grow the Japanese economy and contributed to the globalization of its business.
Late last year, Berkshire Hathaway increased its positions in the five leading trading houses in Japan by at least 1 percentage point to more than 6% each — after its initial purchase in August, when Buffett acquired stakes worth more than $6 billion in total on his 90th birthday.
Nikkei separately reported that Buffett’s Berkshire Hathaway is preparing another issuance of yen-denominated bonds, which was seen as a signal the conglomerate would increase its investments in Japan.
Buffett will be live from Japan on CNBC’s U.S. “Squawk Box” on Wednesday to discuss his investments in the country.
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>>> L'Oréal S.A. (LRLCY), through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company operates through four divisions: Consumer Products, L'oréal Luxe, Professional Products, and Active Cosmetics. It offers shampoos, hair care products, shower gels, skin care products, cleansers, hair colors, styling products, deodorants, sun care products, make-up, perfumes, etc. The company provides its products under the L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Essie, Niely, Dark and Lovely, Lancôme, Yves Saint Laurent Beauté, Giorgio Armani Beauty, Kiehl's, Urban Decay, Biotherm, Ralph Lauren, IT Cosmetics, L'Oréal Professionnel, Kérastase, Redken, Matrix, Biolage, Pureology, Decléor, Carita, Vichy, La Roche-Posay, SkinCeuticals, Roger&Gallet, CeraVe, Stylenanda, Mixa, Magic Mask, Prada, Helena Rubinstein, Valentino, Mugler, Shu Uemura, Viktor&Rolf, Azzaro, Diesel, Atelier Cologne, Cacharel, and Yue Sai brands. It sells its products through distribution channels, such as hair salons, mass-market retail channels, perfumeries, department stores, pharmacies, drugstores, medispas, branded retail, travel retail, and e-commerce. L'Oréal S.A. was founded in 1909 and is headquartered in Clichy, France.
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>>> Arch Capital Group Ltd. (ACGL), together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; collateral protection, debt cancellation, and service contract reimbursement products; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products. It also provides property, energy, marine, and aviation insurance; travel insurance; accident, disability, and medical plan insurance coverages; captive insurance programs; employer's liability; and contract and commercial surety coverages. This segment markets its products through a group of licensed independent retail and wholesale brokers. Its Reinsurance segment provides casualty reinsurance for third party liability and workers' compensation exposures; marine and aviation; surety, accident and health, workers' compensation catastrophe, agriculture, trade credit, and political risk products; reinsurance protection for catastrophic losses, and personal lines and commercial property exposures; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers. The company's Mortgage segment offers direct mortgage insurance and mortgage reinsurance. The company was incorporated in 1995 and is based in Pembroke, Bermuda.
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>>> Linde Inaugurates World's First Hydrogen Refueling System for Passenger Trains
Accesswire
Linde plc
August 24, 2022
https://finance.yahoo.com/news/linde-inaugurates-worlds-first-hydrogen-085000823.html
WOKING, UK / ACCESSWIRE / August 24, 2022 / Linde (NYSE: LIN; FWB: LIN) today announced it has inaugurated the world's first hydrogen refueling system for passenger trains in Bremervörde, Germany.
Linde's hydrogen refueling system, which it built, owns and operates, will refuel 14 hydrogen-powered passenger trains, enabling each train to run for 1,000 km emission-free on a single refueling. It has a total capacity of around 1,600 kg of hydrogen per day, making it one of the largest hydrogen refueling systems ever built. Linde's future-ready hydrogen refueling system has been designed and constructed with the ability to integrate future on-site green hydrogen generation. The new hydrogen trains will replace existing diesel-powered trains.
"Linde is committed to making a significant contribution towards decarbonizing transport in Europe," said Veerle Slenders, President Region Europe West, Linde. "We are proud that Linde's innovative technology plays a key role in supporting this project and establishing a blueprint for cleaner public transport systems around the world."
"The world's first hydrogen train, the Coradia iLint, demonstrates a clear commitment to green mobility combined with the latest technology," said Müslüm Yakisan, President of Alstom in Germany, Austria and Switzerland. "We are very proud to see the first series operation in action together with our partners Linde, LNVG and evb."
Linde is a global leader in the production, processing, storage and distribution of hydrogen. It has the largest liquid hydrogen capacity and distribution system in the world. The company operates the world's first high-purity hydrogen storage cavern plus pipeline networks totaling approximately 1,000 kilometers globally, to reliably supply its customers. Linde is at the forefront in the transition to clean hydrogen and has installed over 200 hydrogen fueling stations and 80 hydrogen electrolysis plants worldwide. The company offers the latest hydrogen technologies through its world class engineering organization, key alliances and partnerships.
About Linde
Linde is a leading global industrial gases and engineering company with 2021 sales of $31 billion (€26 billion). We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain and protect our planet.
The company serves a variety of end markets including chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde's industrial gases are used in countless applications, from life-saving oxygen for hospitals to high-purity & specialty gases for electronics manufacturing, hydrogen for clean fuels and much more. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions.
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>>> Nestle Eyed Biggest-Ever Deal in Aborted Move for GSK Unit
Bloomberg
by Aaron Kirchfeld, Ruth David and Dinesh Nair
May 26, 2022
https://finance.yahoo.com/news/nestle-eyed-biggest-ever-deal-165347419.html
(Bloomberg) -- For a fleeting moment, Nestle SA explored what would have been its biggest-ever deal in a move that underscores the consumer giant’s ambition to grow through large acquisitions.
The Swiss company floated the idea in recent months of acquiring GSK Plc’s consumer health arm, people with knowledge of the matter said. It made informal overtures to express interest in the GSK unit around the same time as Unilever Plc’s £50 billion ($63 billion) bid for the business that failed in January, the people said.
As part of its deliberations about a deal, Nestle was considering teaming up with Reckitt Benckiser Group Plc or a similar strategic partner to split up the unit, the people said. However, Nestle quickly dropped its pursuit due to the complexities of a deal and GSK management’s preference for a separate listing of the operations, according to the people.
The revelation comes as GSK pursues one of the largest corporate spinoffs ever attempted in the UK. The unit, now known as Haleon, owns a sprawling portfolio of brands from Advil painkillers to Sensodyne toothpaste. Its plans for a listing come at a time when equity markets globally have been declining amid the war in Ukraine, while new stock offerings have nearly dried up as investors’ risk appetite falls.
Activist Pressure
“Haleon is an attractive consumer asset, which should ultimately be reflected in its independent valuation,” analysts at Jefferies Financial Group Inc. wrote in a note Thursday, citing the potential takeover interest.
The report “suggests” GSK is committed to the spinoff as a tax-free way of crystallizing value for shareholders while also providing £7 billion to pursue pipeline deals, without the potential delays from a sale, according to Jefferies.
Unilever in January abandoned its bid for the GSK business after the UK drugmaker rejected its approaches and it encountered opposition from its own shareholders. GSK Chief Executive Officer Emma Walmsley has consistently argued that the public markets are the best home for Haleon. She’s been seeking to boost performance amid pressure from activist shareholder Elliott Investment Management.
Mega Listing
GSK has made clear it’s keen on creating a large independent firm and achieving long-term growth, compared with the short-term profit from a sale, the people said. Nestle’s interest was seen as an exploratory idea not backed by committed financing, so GSK never had to seriously evaluate it, the people said.
The British company remains focused on the spinoff, and there aren’t any active negotiations between the two parties, the people said. Nestle is still monitoring the situation, and it could revisit its interest depending on how Haleon trades after its stock market debut, they said.
Haleon is in the process of hiring corporate brokers ahead of the planned UK listing, the people said, asking not to be identified discussing confidential information. That move raises the prospect that some large investment banks could switch allegiances in order to represent Haleon, which is expected to immediately become one of the London market’s biggest companies.
Representatives for Nestle, Reckitt and GSK declined to comment.
Portfolio Pruning
Since taking the helm at Nestle in 2017, CEO Mark Schneider has made targeted acquisitions and sold off several underperforming units. Nestle, Europe’s biggest listed company by market value, has been expanding its presence in faster-growing health and wellness products by snapping up firms like nutritional supplement provider Bountiful Co. and hydration-tablet maker Nuun & Co.
Schneider said in February the company was more interested in small and mid-sized deals, though it wouldn’t rule out larger purchases.
Reckitt, the maker of Lysol disinfectants and Durex condoms, has also been revamping its portfolio by offloading businesses seen as less profitable. It has divested its Chinese baby formula unit and has been considering a sale of its remaining infant nutrition operations globally, Bloomberg News reported.
Slough, England-based Reckitt considered buying a portion of Pfizer Inc.’s consumer business in 2018. It eventually backed out of the race, a move applauded by investors at the time.
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