World Street | Troubled Chinese markets, Red Sea rampage by Houthis, chip on America’s shoulders, Holcim’s big bet

World Street offers a sneak peek into the world of business and economy.

The Chinese securities markets continue to see troubled waters ahead, with the regulator halting the lending of restricted shares. The Red Sea rampage spells good news for crude prices, but traders grapple with the crisis. Lockheed Martin might slash a portion of its workforce for a stronger bottomline. All this and more in this edition of World Street...

Clamping Down

The Chinese securities regulator said it will fully suspend the lending of restricted shares effective from Monday, in policymakers' latest attempt to stabilise the country's stock markets following recent sharp falls, reports Reuters. A string of supportive policies by Beijing, including a deep cut to bank reserves helped lift Chinese stocks off five-year lows early last week but they retreated again on Friday, reflecting deep investor pessimism over the outlook for markets and the shaky economy.

Geopolitical Watch

A British warship, the HMS Diamond, repelled a drone attack on Saturday from Yemen's Houthi group in the Red Sea, British officials said. "Deploying her Sea Viper missile system, Diamond destroyed a drone targeting her with no injuries or damage sustained to Diamond or her crew," the Ministry of Defence said in a statement on Sunday. "These intolerable and illegal attacks are completely unacceptable and it is our duty to protect the freedom of navigation in the Red Sea," it added.

Farmville

The French government is considering further help for the country's farmers, Prime Minister Gabriel Attal said that as their nationwide protests to demand better pay and living conditions showed no sign of abating. Farmers in France, the European Union's biggest agricultural producer, complain they face unfair competition from rivals in more lightly regulated countries. They have set up roadblocks on major roads over the last week.

Chip Wars

The US is expected to award billions of dollars in subsidies in coming weeks to top semiconductor companies, including Intel and Taiwan Semiconductor Manufacturing Co, to help build new factories in the US, the Wall Street Journal reported. The forthcoming announcements aim to kick-start manufacturing of advanced semiconductors that power smartphones, artificial intelligence, and weapons systems, the WSJ reported.

Job Cuts

Lockheed Martin will cut 1 percent of its jobs over the course of the year in a bid to cut costs and streamline operations, reports Reuters. The reductions will impact positions across all of its business and enterprise operations, a company spokesperson said, adding that the cost-cutting actions will include hiring freezes and voluntary separations. The Maryland-based defence contractor employs 122,000 people worldwide, according to its website.

Oil Surges

Concerns about fuel supply propelled oil prices up by 1 percent, triggered by a missile hitting a fuel tanker operated by Trafigura in the Red Sea. The outlook for Russian refined products exports is grim, as several refineries are undergoing repairs following drone attacks. "With oil tankers linked to the U.S. and UK now under threat of attack, the market is likely to reprice the risk of disruptions,” said ANZ analysts.

Building New Beginnings

The building materials giant Holcim revealed plans to separate its entire North American operations through a New York flotation, potentially assessing the business at $30 billion. The company also introduced a new chief executive. "We're going to do a full capital market separation of our North American business, so we will list 100 percent of the business on the New York Stock Exchange," said the CEO.

Currency Woes

Anticipating a potential 4 percent decline by June, Moody's Investors Service predicts that the Bangladesh Taka may weaken if restrictions on the currency are relaxed. This move is seen as a potential boost to the nation's depleting foreign-exchange reserves. The Bangladesh Bank announced it might consider implementing a crawling peg system to maintain stability in the local currency. This would mark a progression towards a more flexible exchange-rate regime.