World Street | 'Inevitable' reunification of Taiwan; China realty revives; Saudi PIF spends zoom; US battery rules

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

Taking stock of the latest global developments that occurred on the very first day of the year, Chinese President Xi Jinping reaffirmed reunification plans with Taiwan. In a move that will frighten the world’s top banking execs, Switzerland wants the ability to take back bankers’ bonuses on underperformance. EV models in America lose their charm as they become ineligible for tax credits. All this and more on the January 2 edition of World Street.

Charged Up

Chinese carmaker Geely Automobile Holdings Ltd has set its sales volume target at 1.9 million units for 2024, up 13 percent from its total sales last year, according to a Hong Kong stock exchange filing. The company also said it increased its sales volume target for new energy vehicles by more than 66 percent, compared with the total sales volume achieved in 2023, without giving a figure.

Home Alone

China's new home prices rose for the fourth straight month in December, a private survey showed on Monday, buoyed by a slew of government support measures. Prices rose 0.1 percent on average in December from the previous month after rising 0.05 percent in November. China’s property sector has stumbled from one crisis to another in recent years in a major blow to consumer and investor confidence.

Desert Storm

Saudi Arabia's Public Investment Fund (PIF) accounted for about a quarter of the almost $124 billion spent by sovereign wealth funds worldwide last year. PIF's whopping $31.5-billion spend in 2023 compared with $123.8 billion for all sovereign wealth funds, based on a preliminary annual report from industry specialist Global SWF.

Claw Back

Switzerland's financial regulator wants to discuss the ability to claw back bonuses from bankers as part of stronger powers following the fall of Credit Suisse and sale to UBS. "The question is on the table and must be discussed now," FINMA chairperson Marlene Amstad told newspaper Schweiz am Wochenende, when asked about the right to demand bonuses be repaid.

Geopolitical Tensions

China's "reunification" with Taiwan is inevitable, President Xi Jinping said in his New Year's address, striking a stronger tone than he did last year with less than two weeks to go before the island elects a new leader. The January 13 presidential and parliamentary elections are happening at a time of fraught relations between Beijing and Taipei.

Losing Its Spark

Over half the electric vehicle models sold lost the eligibility for tax credits following the new battery sourcing rules coming into effect in America. The US Treasury outlined new requirements on battery sourcing, in an attempt to move suppliers away from China. The number of EV models qualified for tax credits up to $7,500 fell from 43 to 19, Reuters reported.

Wrong Formula

A recall has been initiated for 675,000 cans of baby formula, due to concerns of potential bacterial contamination. Reckitt and Mead Johnson Nutrition have issued a voluntary recall for cans of Nutramigen Hypoallergenic Infant Formula Powder, a specialized formula designed for infants diagnosed with a cow's milk allergy.