COMPANY NEWS IN BRIEF

Hong Kong economy to grow 2.5%-3.5% in Q1, financial chief says



REUTERS



Hong Kong's gross domestic product (GDP) is expected to grow between 2.5% and 3.5% for the first quarter, maintaining moderate growth for a fifth consecutive quarter, the city's finance chief said on Sunday.

January-March GDP, scheduled to be released on Thursday, is expected to be "within the range of the full-year economic growth forecast", Financial Secretary Paul Chan said in his blog, without elaborating.



Chan in February forecast full-year growth for the Asia financial hub of 2.5% to 3.5% after a 3.2% expansion in 2023.

As Hong Kong seeks new sources of growth points, mega events such as fireworks will be held to lure more tourists, Chan said, adding that 800,000 visitors are expected to visit for China's labour day holiday on Wednesday.



BHP considering improved proposal for Anglo American after bid rejected, source says



BHP Group is considering making an improved offer for Anglo American after its US$39 billion initial proposal was rejected by the London-listed miner, a source familiar with the matter told Reuters.

BHP is in discussions on a revised bid for Anglo American to be made in coming weeks, the source said. The deliberations are ongoing and the group has not yet made a decision on the size and structure of the new proposal, the source added.



BHP said it does not comment on what it called "rumour and speculation", while Anglo American did not immediately respond to a Reuters request for comment.

Anglo American rejected BHP's US$39 billion takeover offer on Friday, saying it significantly undervalued the miner and its future prospects.



Dubai ruler approves new US$35 billion airport terminal



REUTERS



Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum on Sunday approved a new passenger terminal in Al Maktoum International airport worth 128 billion AED ($34.85 billion), he said in a post on X.

The Al Maktoum International Airport will be the largest in the world with a capacity of up to 260 million passengers, and five times the size of Dubai International Airport, he added, saying that all operations at Dubai airport would be transferred to Al Maktoum in the coming years.



Chinese brokerage CICC cutting dealmakers' base pay by 25%, sources say



REUTERS



China International Capital Corp (CICC) is cutting the base pay of onshore investment bankers by as much as 25%, three sources said, in a major effort to reduce costs amid volatile markets and Beijing's austerity drive.

Some of the impacted dealmakers were notified on Friday about the cuts, said the sources, who have knowledge of the pay reductions but declined to be named as they are not authorised to speak to the media.



The cuts will take immediate effect, two of the sources said. CICC didn't immediately respond to Reuters' request for comment on Sunday.

The salary cuts will affect more than 2 000 bankers, and come after one of the largest investment banks in China by headcount trimmed bankers' bonuses last year by up to 40%, as Reuters reported in April last year.

The rare move by the top investment bank to reduce base pay by as much as a quarter underscores the challenges Chinese financial firms face amid a slowing economy and sluggish IPOs in the main listing destinations in China and Hong Kong.



Investment bankers are typically subject to volatile bonus payments based on performance but drastic reductions in base salary are less common. Last year rival CITIC Securities lowered pay across its investment banking division by up to 15%, Reuters reported in June, citing sources.

Money raised via IPOs by Chinese companies, from both onshore and offshore bourses, plunged 80% to US$2.9 billion in the first quarter compared to a year earlier, according to LSEG data.



X tells Brazil court 'operational faults' allowed blocked users to remain active



REUTERS



Lawyers representing X in Brazil told the Supreme Court on Friday that "operational faults" have allowed users who were ordered blocked to stay active on the social media platform.

Supreme Court Justice Alexandre de Moraes last week had asked the social media giant to explain why it allegedly did not fully comply with earlier rulings ordering the company, owned by billionaire Elon Musk, to block certain accounts.



In a 20-page legal document, X's lawyers said the owners of the accounts had sought to circumvent court-ordered restrictions to continue using the platform by making new accounts. It added it has not reactivated any of these users.

A report by Brazil's federal police seen by Reuters last week showed accounts on X that top courts had ordered blocked were still active on the platform by early April, being able to gain new followers and to live-stream videos.



X said on Friday that the police report had tracked six accounts, from a total of over 200 accounts Brazilian top courts have ordered it to block since 2022.

The company added these users were owned by people who have a history "of incessantly trying to break imposed security measures", saying they took advantage of "operational faults" and "systemic vulnerabilities" within the platform to keep using it.