Key Takeaway: Moody's downgraded Southern Water to junk status , citing financial and operational underperformance, compounding the broader issues facing the UK water sector. Southern Water Ltd’s credit rating was downgraded to junk by Moody’s , with a warning of potential further cuts due to its weak performance history and financial challenges. This downgrade impacts the company’s ability to raise the £4 billion in new debt and £650 million in equity required for its capital plans. The UK water industry is facing heightened scrutiny due to concerns over chronic leaks, sewage spills, and high-interest rates. Southern Water, which supplies over two million people in England, could face severe penalties from the regulator Ofwat , which may limit funds for essential upgrades. Following the downgrade, Southern Water’s 2026 bonds dropped 2.7 pence to around 85 pence on the pound. Despite the rating cut, Southern Water assured customers that services would continue unaffected, hig
Key Takeaway: With Trump’s return raising prospects of a renewed trade conflict, China’s top economic and trade leaders are prepared to defend its interests, focusing on stability and strategic response.
As US-China trade tensions escalate under Donald Trump’s incoming administration, China’s key economic players are set to lead negotiations. Here’s a look at the figures likely to shape China’s response:
- He Lifeng, Vice PremierA close confidante of Xi Jinping, He oversees US-China economic affairs and brings insights from his previous role at China’s top economic planning agency. He is now Beijing’s main strategist for dealing with the US.
- Wang Wentao, Commerce MinisterLeading trade relations, Wang defends China’s position in key sectors like electric vehicles, emphasizing innovation and competition rather than overcapacity. He has worked to attract foreign investment amid geopolitical tensions.
- Wang Shouwen, Vice Commerce MinisterFluent in English, Wang was part of China’s negotiation team during Trump’s first term. Known for his assertive stance, he co-chairs the trade working group with US Under Secretary of Commerce Marisa Lago, where he’s voiced concerns over US semiconductor restrictions.
- Pan Gongsheng, PBOC GovernorTasked with steering China’s financial stability, Pan could influence the debate over managing the yuan’s value, balancing export growth with broader economic stability.
- Liao Min, Vice Finance MinisterExperienced in trade-war negotiations, Liao has been active in recent US-China economic dialogues, addressing tariff and sanction concerns.
Other potential negotiators include Zhao Chenxin from the National Development and Reform Commission and Ma Zhaoxu from the Foreign Ministry. With these seasoned figures, China is positioned for a strategic approach in defending its economic interests amidst evolving US-China dynamics.
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