Daily Brief - 5 Mar 2024

China aims for 5% growth amid economic challenges

China has set an ambitious target for its annual economic growth at around 5%, echoing last year's goal despite facing tougher conditions. This decision puts pressure on the country's leadership to introduce more supportive measures amidst a struggling property market and persistent deflation. Premier Li Qiang, addressing the National People's Congress, admitted that achieving this target won't be straightforward, requiring concerted policy support across various sectors. To aid this goal, China plans to issue ultra-long special central government bonds worth 1 trillion yuan. Despite these efforts, experts like BNP Paribas SA's chief China economist, Jacqueline Rong, remain sceptical about reaching the 5% growth target, forecasting a slightly lower expansion rate.

AMD faces US export hurdles over AI chip for China

Advanced Micro Devices (AMD) encountered a significant obstacle from the US government in its attempt to sell a specially designed artificial intelligence (AI) chip to the Chinese market. This move is part of a broader US effort to restrict China's access to advanced semiconductor technologies due to national security concerns. Despite AMD's intention to comply with US export controls by creating a less powerful version of its AI processor for Chinese customers, the Commerce Department determined that the chip still exceeded permissible performance levels, requiring AMD to seek a special license.

JPMorgan shakes up French payment scene with Cartes Bancaires partnership

JPMorgan Chase & Co. is set to enhance its payment offerings in France by partnering with Cartes Bancaires CB, positioning itself as a formidable competitor against international giants Visa and Mastercard. As the first US bank to join as a principal member, JPMorgan aims to roll out services for French merchants by the year's end, promising more cost-effective transaction fees. The partnership responds to merchant demands for cheaper alternatives to traditional card networks. Cartes Bancaires, a major player since 1984, processes over 15 billion transactions annually, representing a significant portion of France's consumption. This move is part of JPMorgan's broader strategy to expand its footprint in European payment networks, amid a growing push for dominance in the lucrative payments sector across Europe.