FirstFT: US bank chiefs warn against China exit if Taiwan comes under attack

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Hello. The leaders of JPMorgan Chase, Bank of America and Citigroup have pledged to comply with any request from the US government to withdraw from China if Beijing were to attack Taiwan.

The chief executives of the three largest U.S. banks by assets made the commitments Wednesday during a hearing of the Financial Services Committee in the House of Representatives.

They responded to a question from Blaine Luetkemeyer, a Republican congressman from Missouri, about whether they were prepared to withdraw their investments from China in the event of a military assault on Taiwan.

“We will follow the guidelines of the government, which has been working with China for decades. If they change their position, we will change it immediately, just like we did in Russia,” said Brian Moynihan, chief executive of BofA.

His comments were echoed by Jane Fraser and Jamie Dimon, chief executives of Citi and JPMorgan, respectively. Dimon evoked a sense of patriotism in his response.

“We applaud and follow absolutely everything the US government has said, which is all of you, what you want us to do,” he told the committee.

  • Learn more about US-China relations: Top U.S. lawmakers are urging the Biden administration to blacklist Chinese semiconductor company Yangtze Memory Technologies Co for allegedly violating export controls by supplying Huawei.

Thanks for reading FirstFT Asia. Here’s the rest of today’s news — Emily

1. Putin is mobilizing reserves to support the invasion of Ukraine Vladimir Putin ordered the mobilization of army reservists to support Moscow’s struggling campaign in Ukraine and warned that he would use Russia’s nuclear arsenal if its “territorial integrity” was “threatened”. Western officials, however, appeared to ignore Putin’s nuclear ‘bluff’ and vowed to maintain Ukraine’s support.

2. Powell refuses to rule out US recession after third rate hike of 0.75% The downbeat comment on the economy from US Federal Reserve Chairman Jay Powell came as the Federal Open Market Committee raised its benchmark interest rate to a new target range of 3% to 3.25% and has signaled its intention to maintain tight monetary policy as it struggles. galloping inflation.

3. Seven dead in Iranian protests against the hijab At least seven people have been killed in protests across Iran, officials have said, as thousands have taken to the streets in recent days angry at the death of a young woman arrested for her alleged no – observance of the Islamic dress code.

4. South Korea denies imminent swap deal with US as gain falls The Bank of Korea has denied it will announce a currency swap deal with the US Federal Reserve this week, as the Korean won continues to fall against the dollar to the lowest levels since March 2009. The won fell 15% against the dollar. since the beginning of the year.

5. The Trump business empire swept away by a fraud trial in New York New York Attorney General Letitia James yesterday sued Donald Trump and three of his adult children over what she called an ‘astonishing’ fraud aimed at wrongly inflating the value of assets held by their family business, the Trump Organization, for their own financial gain.

The day ahead

Bank of Japan rate setting decision The Bank of Japan is expected to maintain its ultra-loose monetary policy as market participants wonder whether the authorities will intervene directly to stem the yen’s slide to a new 24-year low.

Bank of England rate setting meeting Financial traders are betting that the Monetary Policy Committee will act even more aggressively today in response to high inflation than it did in August, when interest rates were raised by 0.5 percentage points at 1.75%.

Pakistani court expected to indict former prime minister Imran Khan should be charged with contempt of court. He has also been charged with terrorism offences, which Khan supporters say is an attempt by current Prime Minister Shehbaz Sharif to silence him.

What else we read

Why Vladimir Putin is upping the ante in the war in Ukraine The “partial mobilization” of 300,000 reservists by the Russian president is a bet that underlines his reduced room for maneuver on the battlefield in Ukraine and domestically in Russia. It’s a decision unlikely to bear fruit, experts say.

Negotiating your way out of a ransomware attack Nearly 60% of organizations targeted by cyber ransomware attacks in the past year have paid to restore their data. Find out if you can protect your business from hackers and avoid crippling payment in our interactive game.

© An image to illustrate ransomware

Tencent chooses health over wealth The company’s first game approval in China in over a year? health defense, a tame educational affair that hasn’t garnered much excitement from investors or gamers. But the approval represented a gradual thaw for the industry after games licensing was frozen as part of a campaign to remake Chinese society around Communist Party ideals.

Where are the women in asset management? The image of the industry that handles our money is still incredibly masculine. Helen Thomas examines why this sector, which embraces the value of diversity for better decision-making, has failed to make greater progress.

The economic consequences of Liz Truss The Liz Truss government will set an annual growth target of 2.5% in a much-anticipated statement on Friday. Should we take this seriously? No and yes, writes Martin Wolf. No, because the idea that the government of a market economy can achieve a growth objective is ridiculous. Yes, because it will guide the policy. The question is whether this will guide him for good or ill.

Science

Denmark’s Novo Nordisk Foundation is to spend $200 million to develop what it says will be the first practical quantum computer for life science research. The nonprofit foundation joins a crowded group of universities and tech companies seeking to convert the theoretical superpowers of quantum computing into useful devices.

troubled times — Document the changes in business and the economy between Covid and conflict. Register here

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