International financial news on 12/6/2023

The EU’s 11th package of sanctions on Russia ‘in trouble’

Accordingly, two countries Hungary and Greece have objected to Ukraine’s proposal to put some companies of these countries on the list of “war sponsors”. The two countries have said they will refuse to approve any new sanctions against Russia unless Ukraine removes their companies from the list.

On the Greek side, it said that if there is concrete evidence of a violation of sanctions, this should be investigated and evaluated by the countries concerned before considering appropriate action.

Hungary, on the other hand, said it opposes additional restrictions on European companies trading in Russian goods.

The move comes as the European Commission (EC) presented its latest draft of the 11th package of sanctions against Russia over the Ukraine conflict at a meeting of the EU’s Commission of Permanent Representatives on June 7.

The EC has softened some of the measures in the draft, and its officials are expected to continue discussing the sanctions package at a meeting on June 14.

Since the beginning of May, EU member states have begun to discuss the 11th package of sanctions against Russia since the conflict in Ukraine broke out in February last year.

According to European Commission President Ursula Von Der Leyen, the EU will implement a new mechanism to cut exports to third countries and add dozens of companies to the blacklist, including China, Iran, Kazakhstan and Uzbekistan. The EU will also stop transit through Russia for more exports to include advanced technology products and aircraft parts.

The EU considers the evasion of sanctions as the reason why previous sanctions packages aimed at Russia did not meet expectations. EU diplomats have previously acknowledged that there are not many areas left for further rounds of sanctions.

To take effect, the new sanctions package needs to be ratified by all 27 EU member states.

Chinese electric car giant BYD threatens Tesla’s market share

In the first quarter of 2023, BYD, an electric car company invested by Berkshire Hathaway Inc. of billionaire Warren Buffett has surpassed BMW AG, Renault SA and other Chinese automakers such as Zhejiang Geely Holding Group Co., Hozon New Energy Automobile Co. to become the leading “clean” car manufacturer in Brazil, Colombia, Israel and Thailand.

Not stopping there, BYD is continuing to expand into the international market at breakneck speed. In 2021, this business exported clean energy vehicles to Norway, and sold similar models from Singapore to Sweden, Mexico, Spain and the UK. In addition, the company is planning to enter Italy with a launch party in Turin, the birthplace of the Fiat car company.

Run by Chairman Wang Chuanfu, an electric car billionaire from a farming family, BYD (short for “Build Your Dreams”) was born to fulfill unfulfilled dreams. From a “empty” business in 1995, BYD recorded sales of 424 billion yuan (equivalent to 60 billion USD) in 2022.

Accordingly, BYD sold 1.86 million green energy vehicles last year, more than the previous four years combined thanks to strong overseas sales. With products sold in 53 countries and regions around the world, BYD is one of the largest global automakers.

Although the automaker has recently begun to focus more on the international market, BYD still generates more than a quarter of its domestic sales. This year, business-sharing BYD aims to sell 3.7 million all-electric and plug-in hybrid vehicles.

Before going international, data from China Automotive Technology shows that BYD had a “storm” time in the domestic market.

BYD is now the best-selling electric car company in China, a position held by Volkswagen for more than 10 years. Currently, BYD’s “green” vehicles account for 39% of new energy vehicle sales (electric or hybrid).

The products of the Chinese automaker are known more and more for their beautiful and diverse designs at reasonable prices. BYD’s latest electric hatchback, the Seagull, can go up to 300km on a single charge, with a top speed of 80mph with prices starting at $10,400. In addition, the company also has more advanced segments such as the Yangwang U8 SUV with a price of about 154,000 USD.

One of BYD’s strengths is its sales strategy. Group management believes that in order to keep product costs at a good level, BYD needs to proactively produce more components.

Therefore, the enterprise began to focus more resources on the production of electric vehicle parts. BYD currently owns its own electric vehicle batteries and semiconductors, and is also the second largest manufacturer of electric vehicle components in the world. The car company is also one of the units not affected by supply during the Covid 19 pandemic.

Before that, when it came to electric cars, Tesla was always thought of first with the position of the top global electric vehicle manufacturer. But in fact, billionaire Elon Musk’s car company has to face more “foreign” competitors than expected, even in some countries, Tesla has almost completely lost market share.

“What they have done in the past few years is impressive. Starting from zero, BYD is reaching out to become one of the major electric vehicle companies in the world. They may have surpassed Tesla in some respects,” said Steve Westly, a former Tesla executive.

BYD is increasingly sought after by governments in countries from Europe to Southeast Asia. The company is currently planning to build electric vehicle factories in France and Vietnam, and representatives of BYD have also negotiated with the leaders of these countries.

Top 5 most expensive cities for expats

Based on the costs of goods, services and rent, Hong Kong is no longer the most expensive city for expats in 2023.

New York is the most expensive city in the world.


According to Bloomberg , a recent study by ECA International shows that New York (USA) has surpassed Hong Kong to top the ranking of the 20 most expensive cities in the world for expats in 2023.

High inflation and skyrocketing cost of living are the reasons why New York ranks in this ranking. Meanwhile, Hong Kong has dropped one place from last year and is currently ranked 2nd. Other cities such as Geneva (Switzerland) and London (UK) are ranked 3rd and 4th respectively.

Singapore is the city that creates the most surprises. Last year, this place ranked in 13th place. However, now Singapore has climbed to 5th place for the first time. This is the result of rent prices here skyrocketing amid the lion island nation’s strong government. property tax.

Mr. Lee Quane, Asia director of ECA International, said the rise of the financial hub in Southeast Asia was “largely due to the sharp increase in accommodation costs”. Besides, the demand for rental housing has also increased while the supply has not kept up.

The city with the biggest increase in costs this year is Istanbul (​Türkiye). This place has increased 95 places to reach 108th place because the price of goods has increased by 80%.

In addition, the survey also shows that rent in Dubai has increased by nearly a third thanks to the influx of Russian expatriates. This has placed the city in 12th place in the ranking.

In addition, while most of Europe rose in the rankings, the cities of Norway and Sweden fell due to the weakening of the currency. French cities also no longer stand in the high position because the inflation rate here is lower than elsewhere in the European Union (EU).

Similarly, Chinese cities have also dropped in rankings due to the impact of a weakening yuan and lower inflation rates compared to other countries.

In contrast, the rankings show that all US cities have risen in the rankings thanks to a stronger dollar and high inflation. The city of San Francisco that was only 11th last year has now reached 7th place.

ECA International analyzes the cost of consumer goods and services, including rents in areas commonly inhabited by expats, to rank 207 cities in 120 countries and territories around the world.