Headlines

The European Union was closing in Tuesday on approval for a plan to ramp up semiconductor production as it seeks to wean itself off reliance on Asia for the tiny computer chips that control everything from cars to washing machines, the Associated Press reported. The European Parliament and the bloc's 27 member states struck an informal agreement for the 43 billion-euro ($47 billion) Chips Act, which pools public and private funds and allows for state aid to kick-start massive investments for chipmaking facilities.

More companies in England and Wales entered insolvency during March than at any point since monthly records started three years ago, according to official data on Tuesday that showed a 16% increase on a year ago, Reuters reported. The Insolvency Service Agency reported 2,457 corporate insolvencies last month, up from 1,784 in February. The rate of companies falling into insolvency fell sharply with the onset of the COVID-19 pandemic, thanks to government support programmes and lockdowns slowing the progress of courts handling insolvency cases.

The European Commission (EC) has opened a detailed investigation to assess whether certain support measures taken by Romania in favour of Blue Air Aviation, specifically the guarantees for a EUR 34 mln rescue loan extended in August 2020 and its renewal, comply with EU state aid rules, G4media.ro reported. Specifically, such a detailed investigation assesses whether the troubled company is likely to become viable after the restructuring plan as notified to the Commission.

The director of an insolvent cash-for-visa business listed a golf clubhouse as his address on company documents and has not yet furnished the firm’s books and records to its liquidator despite being directed to do so by a judge, the Irish Times reported. More than €66 million has been transferred out of the company over its lifetime to other connected entities, including in excess of €1 million to Chinese businessman Kai Dai himself, the court heard on Monday before it confirmed the appointment of insolvency practitioner Declan DeLacy as liquidator to Huawen.

Canadian Pacific Railway Ltd. has emerged as an unlikely target for a few distressed-debt investors. It wasn’t because of the railroad operator’s creditworthiness, but rather because rising interest rates pummeled the value of some of its bonds in recent months ahead of its roughly $30 billion acquisition of U.S. rival Kansas City Southern, according to a WSJ Pro Bankruptcy commentary. Canadian Pacific sold bonds in December 2021 to finance the acquisition, including $2.4 billion in notes due 2031 and 2041, with coupons of 2.45% and 3%, respectively.

Canada’s recent moves to impose stricter rules on crypto companies show that US regulators have allies in cracking down on the asset class after last year’s turmoil, Bloomberg News reported. Canadian securities regulators in February gave a 30-day deadline for unregistered crypto trading platforms operating in the country to commit to a so-called pre-registration undertaking. Firms are required to follow tougher regulations on segregating customer assets and prohibited from offering margin or leverage to users in Canada.

There may need to be limits initially on the use of major stablecoins for payments, and they should also be backed by high quality and liquid assets to protect consumers, Bank of England Deputy Governor Jon Cunliffe said on Monday, Reuters reported. Britain is due to adopt rules for regulating stablecoins, a form of cryptocurrency backed by an asset or fiat currency, which consumers could use to make payments digitally. "Systemic stablecoins will need to be backed with high quality and liquid assets," Cunliffe told a conference held by Innovate Finance, a UK fintech industry body.

China’s economy rebounded in the first three months of the year after Beijing dismantled its heavy-handed Covid-19 controls, teeing up a revival in growth that is expected to buoy the global economy as the U.S. and European economies slow, the Wall Street Journal reported. China’s economy expanded 4.5% in the first quarter of the year compared with the same three months a year earlier, China’s National Bureau of Statistics said Tuesday.

Brazil's government is working on additional revenue measures to be announced in the second half of this year, said Revenue Chief Robinson Barreirinhas on Monday, highlighting confidence that this set of actions will improve public accounts, Reuters reported. Speaking at a news conference on the 2024 budget bill, Barreirinhas stated that the measures would be additional to those already announced by Finance Minister Fernando Haddad and that "strategic issues" are involved in the timing of their disclosure.

Brazilian Finance Minister Fernando Haddad said on Monday the government is going to announce this week measures to improve credit conditions in the country, including one regarding revolving credit card rates, Reuters reported. Revolving credit card rates are the interest consumers must pay when they cannot pay their credit card bills in full, pushing unpaid amounts into future installments. Talking to reporters ahead of a meeting with the Brazilian banking federation, Haddad said that the ministry will launch 14 measures to improve the credit environment.