Reuters

Which pension funds are involved?

Why copy Canada and Australia?

Why is bigger supposed to be better?

Does everyone agree with the idea?

Stay informed with free updates

Simply sign up to the Chinese business & finance myFT Digest — delivered directly to your inbox.

China has borrowed almost as cheaply as the US after returning to the global dollar bond market for the first time in three years.

Investors placed nearly $40bn of orders to buy $2bn of bonds issued by China’s finance ministry on Thursday at yields only marginally above equivalent US Treasuries.

The sale took place in Saudi Arabia — a break with a tradition of issuing bonds in Hong Kong — in a sign of Beijing’s push for closer financial links with the oil-rich kingdom. Chinese, US and other global banks arranged the sale.

The issuance “illustrat[es] the confidence of market-oriented investors in Chinese sovereign credit”, said Zhang Xing, head of fixed income in the investment banking department at China International Capital Corp — one of the bookrunning banks.

Zhang added that bidders for the issuance included 400 international investors including “central banks, sovereign wealth funds, insurance companies, asset managers, funds and banks”.

The $1.25bn of three-year debt was sold at 4.274 per cent — just 0.01 percentage points higher than Treasury equivalents. Yields on the $750mn of five-year bonds were 0.03 points higher than Treasuries. These represent the tightest spreads for any Chinese sovereign dollar issuance in the past 30 years, according to Bloomberg data.

Yields on the debt fell further, to around 0.25 percentage points below US borrowing costs, as the new bonds began to be traded on Thursday.

“Such negative spreads could be due to particularly strong demand for high-quality USD credits but limited supply from high-grade China issuers,” said Xiaojia Zhi, head of Asia research at Crédit Agricole — another bookrunner.

Beijing’s older US dollar bonds have already traded below US Treasuries this year, partly due to demand from Chinese investors looking to park dollars they hold offshore. Chinese investors enjoy tax-free interest payments on the country’s government bonds.

“There is a huge demand imbalance [for investment grade sovereign dollar bonds],” said Ju Wang, head of FX and rates for greater China at BNP Paribas, who said historically much of the demand for Chinese sovereign dollar bonds came from domestic investors.

Given the gap in interest rates between the US and China, reflected in lower yields in China’s domestic bond market, Chinese companies “choose to keep money in dollars”, added Wang.

A yield roughly in line with Treasuries, which are considered the international risk-free rate, may also help other Chinese dollar bond issuers that rely on the country’s sovereigns as a benchmark.

At close to 20 times the amount on offer, demand for the Chinese bonds was far ahead of typical emerging market US dollar debt sales, reflecting the relative rarity of international issues by Beijing, a top-rated issuer.

South Africa, for example, was 2.5 times subscribed on a $3.5bn sale this week.

However, some analysts cautioned that $2bn was not a major bond issuance for the world’s second-largest economy.

“This is a symbolic issuance, as the majority of dollar issuance happens in Hong Kong,” said Peiqian Liu, Asia economist in Fidelity’s global macro and strategic asset allocation team, who said the deal “sends more of a signal of their broadening of the scope of financial co-operation globally”.

Beijing does not raise much dollar-denominated sovereign debt and its trillions of dollars of foreign exchange reserves and deep domestic bond market mean that it is not a large part of its government funding.

However, international bond issuances are an important way of providing access to global investors to buy the country’s sovereign debt, as well as setting a benchmark for other issuers.

Mortgage Mayhem: Jessica Simpson and Eric Johnson’s $22M Loans Amid Money Troubles and Rumored Split

Jessica Simpson and her husband, former NFL star Eric Johnson, have taken out over $22 million in loans on their opulent Hidden Hills mansion, raising questions about the couple’s finances and sparking rumors of a potential split after a decade of marriage. Despite the whispers of financial struggles and relationship troubles, the two have not publicly confirmed any separation or filed for divorce.

jessicasimpson – Instagram

Property records reveal a complex series of financial maneuvers on the home, which Simpson purchased in 2013 from Ozzy and Sharon Osbourne for $11.5 million under her “Dixie Trail Trust.” Initially, in 2015, Simpson and Johnson took out a $7.3 million mortgage on the property with JPMorgan Chase, followed by an $8 million loan in 2017. Additional loans with other lenders — $3.65 million with Platinum Loan Servicing Inc. and $3.04 million with the Bank of Southern California — brought the total loan amount to over $22 million. Although they have continued to meet these loan obligations, the sheer scale of the debt has fueled speculation about the couple’s financial standing.

An Oasis of Luxury in Hidden Hills

Simpson and Johnson’s estate in the celebrity-favored, gated community of Hidden Hills is a stunning example of luxury California real estate. This 13,274-square-foot home, nestled on 2.25 acres of land, boasts an impressive eight bedrooms and 13 bathrooms. Blending Cape Cod-inspired design with contemporary elegance, the home is secluded at the end of a cul-de-sac, offering both privacy and sweeping views of the city and nearby mountains.

The house is built for both entertaining and family life, featuring a grand spiral staircase that makes a memorable first impression. A large family room is warmed by a reclaimed brick fireplace and framed by oversized sliding barn doors, giving the space a rustic, yet refined look. Floor-to-ceiling windows flood the space with natural light, creating a sense of openness and connection to the outdoors.

jessicasimpson – Instagram

The kitchen is truly a chef’s dream, with high-end Wolf appliances, a spacious center island, a walk-in pantry, and a charming breakfast nook where Simpson has shared glimpses of cozy family mornings with her children, Maxwell, Ace, and Birdie. The master suite is a luxurious retreat within the home, complete with a fireplace, a wood-paneled walk-in closet, and an adjacent office for quiet moments or remote work. Outdoor spaces add to the estate’s allure, with expansive lawns, a spa, a shallow pool, and numerous seating areas designed for lounging, socializing, and relaxation. A separate guesthouse provides additional living space, suitable for an office or gym, and a four-car garage adds a practical touch.

Financial Struggles and the Fight to Save Her Brand

Simpson’s financial challenges have become public knowledge over the years, with the singer and entrepreneur candidly discussing her journey to reclaim control of the Jessica Simpson Collection, the billion-dollar brand she co-founded with her mother, Tina, in 2005. The business grew rapidly, becoming a household name and a major force in fashion retail. However, in 2015, Sequential Brands Group acquired a controlling stake in the business, leaving Simpson with a 37.5% ownership share.

In 2021, when Sequential Brands filed for bankruptcy, Simpson was forced to make a difficult decision. Determined to regain full control of her company, she and her mother placed a $65 million bid, a move funded by a mix of loans and family contributions. “I drained everything to buy it back,” Simpson revealed in an interview, explaining the extent of her financial commitment to the business. Her decision meant taking on significant personal financial risk, even to the point of not having a working credit card at one point. “I went to Taco Bell the other day and my card got denied,” she admitted on The Real, highlighting her willingness to prioritize her brand’s future over her own financial comfort.

For Simpson, the choice to regain control of her brand was deeply personal. “With money, there’s just so much fear attached to it,” she said, acknowledging the anxiety that can come with financial instability. Despite these struggles, Simpson has remained resolute, regularly showcasing pieces from her collection on social media and discussing her plans to expand the brand further.

jessicasimpson – Instagram

Rumors of a Rocky Marriage and Separate Lives

Alongside these financial hurdles, Jessica and Eric’s relationship has faced scrutiny, with rumors circulating that the couple may be living separate lives. The two celebrated their 10-year wedding anniversary this year, but Simpson’s failure to acknowledge the milestone on social media fueled speculation about the state of their marriage. Observers noted that she has been spotted without her wedding ring in recent months, and Eric has been noticeably absent from her social media posts. Even during recent family gatherings, such as Easter, the couple appeared together with their children but did not pose side-by-side.

Jessica’s recent post from her Nashville music room, where she announced new music, further hinted at personal challenges. She wrote, “This comeback is personal, it’s an apology to myself for putting up with everything I did not deserve,” a statement that many fans interpreted as a veiled reference to her marriage. Her return to music seems to be both a professional and personal endeavor, a chance for Simpson to reconnect with her passions and redefine herself after years of business and family commitments.

Looking to the Future with Resilience and Renewal

Though Jessica and Eric put their Hidden Hills mansion on the market for $22 million in September 2023, they later removed the listing in August 2024. This move leaves questions about their future — will they remain in Los Angeles, or could they be considering a more permanent move to Nashville, where Simpson has been spending more time and working on new music?

Despite the rumors and financial strains, Simpson’s determination remains clear. She’s shown a fierce commitment to her brand, her family, and her own personal growth. Reflecting on her drive and resilience, she once shared, “I’ll put it all out there if it’s me that’s driving the show, because I believe in myself… And I know that nothing will stop me, and if you try to stop me, I’ll try harder.”

jessicasimpson – Instagram

Advertisement

Her journey has been anything but conventional, marked by financial gambles, a high-profile marriage, and a struggle to maintain her footing in a demanding industry. Simpson’s story is one of both public and private battles, of a woman unafraid to push her limits in pursuit of a vision that’s entirely her own. As she embarks on her latest “personal comeback,” fans and critics alike are watching closely, anticipating what the next chapter holds for the multi-talented star.

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Meta has been fined nearly €800mn by Brussels after regulators accused Facebook’s parent company of stifling competition by “tying” its free Marketplace services with the social network.

Margrethe Vestager, the EU’s outgoing competition chief, said on Thursday that by linking Facebook with its classified ads service Meta had “imposed unfair trading conditions” on other providers.

She added: “It did so to benefit its own service Facebook Marketplace, thereby giving it advantages that [others] could not match. This is illegal.”

Meta said it would appeal against the €797.72mn fine levied by regulators. “We built Marketplace in response to consumer demand — this decision ignores the market realities, and will only serve to protect incumbent marketplaces from competition.”

It added: “The European Commission’s decision provides no evidence of competitive harm to rivals or any harm to consumers.”

The EU’s long-running antitrust probe into Meta was launched in 2019 following accusations from rivals that the tech giant was abusing its dominant position by offering free services while profiting from data it collects on the platform.

In December 2022, the European Commission issued initial charges against Facebook for allegedly using the data it gathered for free — mostly from businesses — to then sell ads to users.

It also marks one of the final investigations overseen by Vestager, who is set to leave the commission in the next few weeks after a decade of antitrust enforcement against Big Tech.

During her tenure, Vestager has repeatedly targeted the world’s biggest tech companies, with some of the toughest actions against tech giants such as Apple, Google and Microsoft.

The EU Commission on Thursday said Meta is “dominant in the market for personal social networks (…) as well as in the national markets for online display advertising on social media”.

Facebook Marketplace, launched in 2016, is a popular platform to buy and sell second-hand goods, especially household items such as furniture.

Meta has argued that it operates in a highly competitive environment. In a post published on Thursday, the tech giant said marketplaces in Europe continue “to grow and dominate in the EU”, pointing to platforms such as eBay, Leboncoin in France, and Marktplaats in the Netherlands, as “formidable competitors”.

Meta’s fine comes at a period of political transition both in the EU and the US.

Brussels officials have been aggressive both in their rhetoric and their antitrust probes against Big Tech giants as they sought to open markets for local start-ups.

In the past five years, EU regulators have also passed a landmark piece of legislation — the Digital Markets Act — with the aim to slow down dominant tech players and boost the local tech industry. 

However, some observers expect the new commission, which is set to start a new 5-year term in weeks, to strike a more conciliatory tone over fears of retaliation from the incoming Trump administration.

AJ Bell has reduced ongoing charges across its multi-asset income range, including flagship funds.

The charges for the VT AJ Bell Income Fund and VT AJ Bell Income & Growth Fund have been reduced by 15 basis points.

The reduction from 0.65% to 0.50% came into effect on 1 November.

AJ Bell said its multi-asset income range has delivered strong performance with a five-year total return of 22.51% and 27.58% respectively.

The funds, which were launched in 2019, will now offer a smoothed income profile, with 11 equal monthly income payments and a final balance distribution in month 12.

The wealth manager said the multi-asset income range, alongside its Managed Portfolio Service (MPS), Growth and Responsible investing funds, has formed an important part of its investments business.

The investments business has grown to assets under management of £6.8 bn as of 30 September 2024, up 45% in the year and with inflows of £1.5 bn.

AJ Bell said today’s announcement further evidences its commitment to delivering exceptional value for customers and follows charge reductions on its Investcentre adviser platform earlier this year, with fees cut to between 0.2% and 0.075% and capped on accounts over £2m.

Ryan Hughes, AJ Bell Investments managing director, said: “After another strong year for our investments business, we are very happy to announce a reduction in charges for our range of income funds. We remain committed to passing on economies of scale to our customers as we continue to grow, ensuring we are delivering excellent value investment solutions alongside strong investment returns.

“At the same time, the move to a ‘smoothed income’ approach helps customers using our income funds manage their investment income. As more investors look to rely on investment income in retirement, this approach will make life easier, with a consistent, reliable income enabling better budgeting and cashflow planning.”