Live News: China cuts interest rates to revive economy post-Covid

What to see in Asia today

Hong Kong beverage maker Vitasoy releases fourth-quarter earnings © Nelson Singh/Bloomberg

China: The People’s Bank of China is scheduled to release its latest policy rates. Analysts polled by Reuters expect lending to slow for the first time in 10 months as the post-Covid recovery accelerates. Last week the central bank unexpectedly cut a key short-term rate and announced tax breaks for businesses. The seven-day reverse repo rate was cut by 10 basis points to 1.9 percent. Nomura analysts expect two more rounds of rate cuts of 10bp each this year.

Economic data: Japan releases industrial production numbers for April Hong Kong releases consumer price index for May. New Zealand releases second quarter consumer sentiment figures.

Events: Japanese Foreign Minister Yoshimasa Hayashi left Tokyo for a visit to England and France. The IMD Global Competitiveness Center publishes its annual country rankings. Indonesia’s central bank kicks off a three-day governors’ meeting.

Company Results: Hong Kong beverage maker Vitasoy publishes fourth quarter earnings.

EU ministers have stalled on reforms to the electricity market

EU countries have failed to approve a crucial change in the bloc’s energy market, with France and Germany at odds over state aid for power producers.

Energy ministers meeting in Luxembourg on Monday will find a common position on reform of the market to boost clean energy and curb price volatility.

But Paris and Berlin must apply state-backed contracts to existing operators that ensure power producers charge only a fixed price for power — a move that would allow France to more easily subsidize nuclear power.

Read more about EU energy market.

Airbus has set a record to sell 500 aircraft to India’s IndiGo

From left, IndiGo CEO Peter Elbers, airline co-founder Rahul Bhatia, Airbus CEO Guillaume Faurie and Airbus Chief Commercial Officer Christian Scherer celebrate the deal.

From left, IndiGo chief executive Pieter Elbers, airline co-founder Rahul Bhatia, Airbus chief executive Guillaume Faury and Airbus chief commercial officer Christian Scherer celebrate the deal © Christophe Petit-Tesson/EPA-EFE/Shutterstock

Airbus has secured its largest aircraft order in history after sealing a multi-billion dollar deal to sell 500 short-body aircraft to India’s IndiGo.

The contract for Airbus’ A320 family jets is the largest in number of aircraft and outstrips rival Air India’s orders for 470 Airbus and Boeing aircraft in February. This is bigger than IndiGo’s current fleet of 300 aircraft.

The world’s largest aircraft maker did not disclose financial details of the deal, announced on the first day of the biennial Paris air show, which is meeting for the first time after a four-year hiatus amid renewed passenger demand.

Read more about the Indigo deal.

UK warns against 'over-reliance’ on Chinese EV batteries

Britain must avoid an „over-reliance” on Chinese battery technology for electric vehicles, Business Secretary Chemie Patenock said on Monday.

It is the second significant UK factory for electric car batteries, with the government set to develop an expected deal between China’s Envision and Jaguar Land Rover owner Tata Motors in Somerset.

The deal with India’s Tata, expected within weeks, could provide a major boost to the UK’s car industry, which has struggled to attract investment from battery makers, but the sector will rely heavily on Envision.

Read more about UK and battery technology.

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