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Equities fell Friday while the dollar maintained gains against its peers as investors assessed the fallout from the Federal Reserve’s revised outlook for interest rate cuts and prepared for a second Donald Trump presidency.Data showing Japanese inflation rose more than expected last month did little to help the yen, which took a hefty hit from the US central bank’s more hawkish tilt and the Bank of Japan’s refusal to tighten monetary policy.Traders are now awaiting the release later in the day of data on US personal consumption expenditure — the Fed’s preferred gauge of inflation and the last major piece of data for the year.Wall Street provided a meek lead, having squandered an early bounce from Wednesday’s plunge that was sparked by the Fed’s changed rate forecast, with sentiment weighed by a jump in Treasury yields to their highest level since May.Asia also failed to recover from the previous day’s losses.Hong Kong, Tokyo, Shanghai, Sydney, Singapore, Seoul, Taipei, Mumbai and Bangkok all fell, though Wellington, Jakarta and Manila edged up.London, Paris and Frankfurt all opened lower.US monetary policymakers on Wednesday cut rates as expected, but their closely watched “dot pot” guidance on future moves showed they saw two reductions next year, compared with four previously targeted.Data showing a forecast-topping rise in US economic growth and consumer spending did little to ease concerns that the Fed will keep borrowing costs higher for longer.Meanwhile, swaps markets are pricing in less than two for all of 2025.Fed boss Jerome Powell acknowledged Wednesday that Trump’s economic plans, including tariff hikes, tax cuts and mass deportations, have been a consideration as policymakers weigh their rate cut estimates.Economists at Bank of America Global Research said in a commentary: “We stick with our forecast for two more rate cuts next year, but the risks have clearly shifted in the direction of fewer (no) cuts. The onus is now on the data to justify additional cuts.”The dramatic reaction in markets clearly indicates that an extended pause is now on the table.”They added that if the jobs market ran into severe trouble in the next few months “the Fed would turn more dovish, and (Wednesday’s) meeting will feel like a bump in the road, rather than a paradigm shift, a few months down the line”.Investors are keeping a watch on developments in Washington after the House of Representatives rejected a Republican-led funding bill to avert a government shutdown, with federal agencies due to run out of cash on Friday night and cease operations starting this weekend.The legislation would have kept the government open through March and suspended the borrowing limit for president-elect Donald Trump’s first two years in office.But it was sunk by Republican debt hawks, dealing a blow to their leader and his incoming “efficiency czar” Elon Musk, who had put the package forward after sabotaging a bipartisan one amid complaints about items in the text allegedly ballooning its overall cost.The dollar held on to its latest gains against its major peers, briefly hitting a five-month high near 158 yen before easing slightly after the government warned Friday against speculators and hinted it could step in to support the currency.Finance Minister Katsunobu Kato said: “The government’s deeply concerned about recent currency moves, including those driven by speculators.”We will take appropriate action if there are excessive moves in the currency market.”The greenback was also near two-year highs against the euro, while bitcoin tanked to around $97,000 — having earlier in the week hit a new record of more than $108,000.- Key figures around 0810 GMT -Tokyo – Nikkei 225: DOWN 0.3 percent at 38,701.90 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 19,720.70 (close)Shanghai – Composite: DOWN 0.1 percent at 3,368.07 (close)London – FTSE 100: DOWN 0.3 percent at 8,083.12Euro/dollar: UP at $1.0381 from $1.0364 on ThursdayPound/dollar: UP at $1.2500 from $1.2496Dollar/yen: DOWN at 156.90 yen from 157.35 yen Euro/pound: UP at 83.04 pence from 82.91 penceWest Texas Intermediate: DOWN 0.5 percent at $69.01 per barrelBrent North Sea Crude: DOWN 0.5 percent at $72.49 per barrelNew York – Dow: UP less than 0.1 percent at 42,342.24 (close)

China has lifted a ban on imports of Australian live rock lobsters, Canberra said Friday, demolishing the final barrier in a broader, multibillion-dollar trade war between the countries.Beijing has banned or slapped retaliatory tariffs on more than US$12 billion worth of Australian exports, from wine to timber, during years of soured ties with Canberra.The lobster trade, worth US$500,000 a year, was the last of a number of major Australian exports to remain under sanctions after months of Australian diplomatic efforts.”China has confirmed that our live rock lobster exports can recommence into China,” Agriculture Minister Julie Collins told reporters.”This is great news for our live rock lobster producers and fishers here in Australia, and importantly, it means that they can now apply for import permits to go back into this market.”Lobsters were the “last of those trade impediments” imposed by China, she added.China introduced a de facto ban on live rock lobster in 2020 while denying the move — and a raft of other punitive tariffs — were linked to the worst crisis in relations in decades.Beijing was enraged by Canberra’s crackdown on Chinese foreign influence operations, the decision to block tech giant Huawei from running Australia’s 5G network, and a call for an investigation into the origins of the Covid-19 pandemic.Australian Prime Minister Anthony Albanese said in October that Beijing would let the lobsters back in after a meeting with Chinese Premier Li Qiang in Laos.Albanese said the confirmation of that reopening was the result of his government’s “calm and consistent” approach with China since his Labor Party came to power in May 2022.- End of trade ‘impediments -At the low point in relations, Australian exporters faced impediments on exporting wine, barley, coal, cotton, timber logs, oaten hay, copper ores and concentrates and red meat, the government said.”The removal of restrictions on lobster marks the resolution of all outstanding impediments to trade from that period,” it said in a statement.The reopening to lobster may also give Albanese a political boon.The prime minister must call an election in the first half of 2025, and many lobster producers come from Western Australia, a key battleground state. The centre-left leader has spent much of his time in office trying to improve the trade relationship with China, Australia’s biggest trade partner.At the same time, Australia is part of a loose US-led alliance that has aggressively pushed back against China’s bid for primacy in the Pacific region.Before the ban, an estimated 97.7 percent of Australia’s rock lobster exports were sold to China, more than 1,600 tonnes a year.Some Australian producers have since found new markets in the United States, Europe, Asia and the Middle East.Many more skirted sanctions by creating a “grey market” of exports to China via Hong Kong, Hanoi and other Asian cities.The volume of exports to Hong Kong alone shot up more than 6,100 percent after the ban, according to researchers at the University of Technology Sydney.Exporters are hoping they can resume exports in time for Chinese New Year, when delicacies such as rock lobster are in hot demand.   

Chinese President Xi Jinping on Friday inaugurated a new Macau leader and called for the gambling hub to diversify its economy as the former colony marked 25 years since being returned to China.When the former Portuguese colony reverted to Chinese rule on December 20, 1999, Beijing promised that the city’s “capitalist system and way of life” would remain unchanged for 50 years.The city is now regarded by Beijing as a shining example of its “One Country, Two Systems” model — in contrast with neighbouring Hong Kong, which was rocked by sometimes violent pro-democracy protests until a Beijing-imposed national security law in 2020.Xi on Friday touted Macau’s accomplishments under Chinese rule, including its international appeal and a per capita GDP that ranks among the world’s highest.”Macau’s splendid achievements since its return to the motherland is proof to the world that ‘One Country, Two Systems’ has a clear systemic advantage and strong vitality,” Xi said in a speech at the inauguration.That framework “must be adhered to over the long term,” he said.Following its handover, Macau grew into the world’s casino capital by gaming revenue and a popular destination for Chinese tourists.But it is now under orders from Beijing to diversify its economy — and the city’s leaders have suggested industries such as financial services, technology and Chinese medicine as new sources of growth.But as of November, gaming-related taxes still made up 81 percent of government revenue and experts say Macau is years away from weaning itself off casino wealth.- New leader -Anniversary celebrations kicked off Friday morning with a flag-raising ceremony at the city’s Lotus Square, with incoming leader Sam Hou-fai, Macau government ministers and some visiting Chinese officials in attendance.Sam served as president of Macau’s apex court since handover and was the sole candidate in October’s leadership race, receiving 99 percent of votes from a 400-person committee of Beijing loyalists.The 62-year-old is Macau’s first post-handover leader to be born on the mainland and not to have a background in business.He replaces Ho Iat-seng, who took office in 2019 and spent much of his tenure managing Macau’s response to the coronavirus pandemic and its economic fallout.The Chinese president on Friday emphasised the need for a diversified economy as he laid out “four hopes” for Sam’s administration.Macau must “improve its planning for industrial development, and step up policy support and financial investment to cultivate internationally competitive new industries,” Xi said.He highlighted the importance of Hengqin Island, a landmass adjacent to Macau and three times its size, which was partly leased by Beijing to Macau to boost its land supply for non-gaming development.”The central government decided to develop Hengqin with the goal of fostering Macau’s development of a diversified economy and to facilitate the living and employment of Macau residents,” Xi said.”There can be no development of industries and projects that do not align with this positioning.”He also urged Macau to bring in talents to improve local governance, expand international ties and to “steadfastly uphold national security and Macau’s stability”.Following the end of 442 years of Portuguese rule, Macau’s fortunes have risen in lockstep with China’s economic growth.It is the only place in China where casino gambling is permitted and has long surpassed Las Vegas as the world’s top casino hub, fuelled by two decades of Chinese visitor spending.Macau, with a resident population of 687,000, saw just over 29 million visitor arrivals in the first 10 months of the year.Its GDP has soared from $6.4 billion in 1999 to more than $47 billion last year, and its population is the richest in China on a per capita basis.

Equities fluctuated Friday and the dollar maintained its gains against its peers as investors assessed the fallout from the Federal Reserve’s outlook for interest rate cuts and possible impact of Donald Trump’s presidency on the economy.Data showing Japanese inflation rose more than expected last month did little to help the yen, which took a hefty hit from the US central bank’s more hawkish tilt and the Bank of Japan’s refusal to tighten monetary policy.Traders are now awaiting the release later in the day of data on US personal consumption expenditure — the Fed’s preferred gauge of inflation and the last major piece of data for the year.Wall Street provided a meek lead, having squandered an early bounce from Wednesday’s plunge that was sparked by the Fed’s changed rate forecast, with sentiment weighed by a jump in Treasury yields to their highest level since May.Asia also struggled to recover from the previous day’s losses.Tokyo, Shanghai, Manila and Jakarta edged up, but Hong Kong, Sydney, Singapore, Seoul, Wellington and Taipei sank.US monetary policymakers on Wednesday cut rates as expected, but their closely watched “dot pot” guidance on future moves showed they saw two reductions next year, compared with four previously targeted.Data showing a forecast-topping rise in US economic growth and consumer spending did little to ease concerns that the Fed will keep borrowing costs higher for longer.Meanwhile, swaps markets are pricing in less than two for all of 2025.Fed boss Jerome Powell acknowledged Wednesday that Trump’s economic plans, including tariff hikes, tax cuts and mass deportations, have been a consideration as policymakers weigh their rate cut estimates.”Some did identify policy uncertainty as one of the reasons for their writing down more uncertainty around inflation,” he said after the Fed’s announcement Wednesday. Investors are keeping a watch on developments in Washington after the House of Representatives rejected a Republican-led funding bill to avert a government shutdown, with federal agencies due to run out of cash on Friday night and cease operations starting this weekend.The legislation would have kept the government open through March and suspended the borrowing limit for president-elect Donald Trump’s first two years in office.But it was sunk by Republican debt hawks, dealing a blow to their leader and his incoming “efficiency czar” Elon Musk, who had put the package forward after sabotaging a bipartisan one amid complaints about items in the text allegedly ballooning its overall cost.The dollar held on to its latest gains against its major peers, sitting at a five-month high near 158 yen, with some observers suggesting Japanese officials could be eyeing a possible intervention in currency markets.The greenback was also at a two-year high against the euro.- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 0.2 percent at 38,889.95 (break)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 19,709.82Shanghai – Composite: UP 0.1 percent at 3,372.82Euro/dollar: UP at $1.0365 from $1.0364 on ThursdayPound/dollar: DOWN at $1.2493 from $1.2496Dollar/yen: UP at 157.40 yen from 157.35 yen Euro/pound: UP at 82.97 pence from 82.91 penceWest Texas Intermediate: DOWN 0.3 percent at $69.15 per barrelBrent North Sea Crude: DOWN 0.4 percent at $72.60 per barrelNew York – Dow: UP less than 0.1 percent at 42,342.24 (close)London – FTSE 100: DOWN 1.1 percent at 8,105.32 (close) 

Chinese President Xi Jinping on Friday presided over the inauguration of new Macau leader Sam Hou-fai, capping off a three-day visit as the former Portuguese colony marks 25 years since being returned to China.Sam, who served as president of Macau’s apex court since the 1999 handover, was the sole candidate in October’s leadership race and received 99 percent of votes from a 400-person committee of Beijing loyalists.The 62-year-old Zhongshan, China native is Macau’s first post-handover leader to be born in mainland China and not have a background in business.When Macau reverted to Chinese rule on December 20, 1999, Beijing promised that the city’s “capitalist system and way of life” would remain unchanged for 50 years.The city is now regarded by China as a shining example of its “One Country, Two Systems” model — in contrast with neighbouring Hong Kong, which was rocked by sometimes violent pro-democracy protests until a Beijing-imposed national security law in 2020.After the handover, Macau grew into the world’s casino capital by gaming revenue and a popular destination for Chinese tourists.Celebrations kicked off Friday morning with a flag-raising ceremony at the city’s Lotus Square, with incoming leader Sam, Macau government ministers and some visiting Chinese officials in attendance.Sam replaces Ho Iat-seng, who took office in 2019 and spent much of his tenure managing Macau’s response to the coronavirus pandemic and its economic fallout.Speaking at a Thursday banquet, Xi acknowledged Ho’s efforts and said Macau “gained new achievements in appropriate economic diversification” under his leadership.The Chinese leader has lauded Macau’s “world-recognised success” in implementing the “One Country, Two Systems” framework and said the city had a bright future.”Macau is a pearl in the nation’s palm, and I have always kept in my thoughts its development and the welfare of all its people,” Xi said at the start of his visit on Wednesday.Security was tight around the city, with roadblocks set up around an event venue and authorities increasing checks on inbound visitors.- Casino hub -Following the end of 442 years of Portuguese rule, Macau’s fortunes have risen in lockstep with China’s economic growth.It is the only place in China where casino gambling is permitted and has long surpassed Las Vegas as the world’s top casino hub, fuelled by two decades of Chinese visitor spending.Macau, with a resident population of 687,000, saw just over 29 million visitor arrivals in the first 10 months of the year.Its GDP has soared from $6.4 billion in 1999 to more than $47 billion last year, and its population is the richest in China on a per capita basis.Under orders from Beijing to diversify the economy, Macau leaders have suggested industries such as financial services, technology and Chinese medicine as new economic drivers.But as of November, gaming-related taxes still made up 81 percent of government revenue and experts say Macau is years away from weaning itself off casino wealth.Xi on Thursday visited the Macau University of Science and Technology and was “briefed on the development of two state-level key laboratories” that involved Chinese medicine and planetary science, according to state news agency Xinhua.He also visited the Guangdong-Macao In-Depth Cooperation Zone on Hengqin Island, speaking to residents and people there in charge of planning, construction, management and services, Xinhua reported.Hengqin Island, a landmass adjacent to Macau and three times its size, was partly leased by Beijing to Macau to boost its land supply for non-gaming development.

Japanese inflation accelerated in November, with prices rising 2.7 percent on-year partly because of higher energy costs, government data showed Friday.The core Consumer Price Index (CPI), which excludes volatile fresh food prices, topped market expectations and was up from 2.3 percent in October.The reading remained above the Bank of Japan’s two percent inflation target, set more than a decade ago as part of efforts to boost the stagnant economy.The two percent target has been surpassed every month since April 2022, although central bank policymakers have sometimes questioned the role of temporary factors such as the war in Ukraine.Analysts had forecast a core CPI reading of 2.6 percent for November. “Core core CPI”, which excludes both fresh food and energy prices, stood at 2.4 percent.Rice prices continued to soar, with the data showing an on-year increase of around 64 percent after this year’s harvests were hit by hot weather and water shortages.”Rising prices for food, including rice, and the scaling back of measures against extreme summer heat, such as subsidies for electricity and fuel bills” contributed to the jump in inflation, deputy chief cabinet secretary Fumitoshi Sato told reporters.Japan’s summer this year was the joint hottest on record — equalling 2023 — as extreme heatwaves fuelled by climate change engulfed many parts of the globe.The Bank of Japan on Thursday left its borrowing costs unchanged and warned of uncertainty over the US economy under president-elect Donald Trump.That caused the yen to fall against the dollar, extending a retreat that began Wednesday when the Federal Reserve forecast it would make fewer interest rate cuts.On Friday morning, one dollar bought 157.61 yen, compared with about 153.60 on Wednesday.”Despite the pause, the BoJ appears determined to tighten policy further,” said Stefan Angrick of Moody’s Analytics.”The central bank’s monetary policy statement maintains a fairly hawkish tone, arguing that the economy is recovering and will keep growing above its potential rate — a view that feels at odds with the data,” he said.Weak demand has been a drag on growth for Japan, and it’s likely that data will show the economy shrinking in 2024, Angrick said, adding that the bank faced a tricky situation.”The domestic economy isn’t strong enough for significant rate hikes, but maintaining the status quo risks further yen depreciation and higher inflation,” he said.”We anticipate two more rate hikes in 2025.”

Chinese President Xi Jinping will preside over a day of celebrations in Macau and inaugurate the city’s new leader on Friday as the former colony marks 25 years since being returned to China.Macau is regarded by China as a shining example of its “One Country, Two Systems” model, and Xi praised the city as a “pearl in the nation’s palm” at the start of his three-day visit.The Chinese casino hub has grown from a Portuguese trading outpost to the world’s casino capital by gaming revenue and a popular destination for Chinese tourists.When Macau reverted to Chinese rule on December 20, 1999, Beijing promised that the city’s “capitalist system and way of life shall remain unchanged for 50 years”.Celebrations kicked off Friday morning with a flag-raising ceremony at the city’s Lotus Square, with incoming city leader Sam Hou-fai, Macau government ministers and some visiting Chinese officials in attendance.Xi has lauded Macau’s “world-recognised success” in implementing the “One Country, Two Systems” framework and said the city had a bright future.”Macau is a pearl in the nation’s palm, and I have always kept in my thoughts its development and the welfare of all its people,” Xi said Wednesday.He has vowed to use his trip for “extensive and in-depth exchanges with our friends from all places, and discuss plans for Macau’s development”.Friday’s festivities will be centred around the inauguration of Sam, the former president of Macau’s apex court, as the city’s fourth post-handover leader, replacing Ho Iat-seng.Security was tight around the city, with roadblocks set up around an event venue and authorities increasing checks on inbound visitors.- Casino hub -Following the end of 442 years of Portuguese rule, Macau’s fortunes have risen in lockstep with China’s economic growth.It is the only place in China where casino gambling is permitted and has long surpassed Las Vegas as the world’s top casino hub, fuelled by two decades of Chinese visitor spending.Macau, which has a resident population of 687,000, saw just over 29 million visitor arrivals in the first 10 months of the year.Its GDP has soared from $6.4 billion in 1999 to more than $47 billion last year, and its population is the richest in China on a per capita basis.Under orders from Beijing to diversify the economy, Macau leaders have suggested financial services, technology and Chinese medicine as new economic drivers.But as of November, gaming-related taxes still made up 81 percent of government revenue and experts say Macau is years away from weaning itself off casino wealth.Xi on Thursday visited the Macau University of Science and Technology and was “briefed on the development of two state-level key laboratories” that involved Chinese medicine and planetary science, according to state news agency Xinhua.He also visited the Guangdong-Macao In-Depth Cooperation Zone on Hengqin Island, speaking to residents and people there in charge of planning, construction, management and services, Xinhua reported.Hengqin Island, a landmass adjacent to Macau and three times its size, was partly leased by Beijing to Macau to boost its land supply for non-gaming development.

Japanese inflation accelerated in November, with prices rising 2.7 percent on-year partly due to higher energy costs, government data showed Friday.The core Consumer Price Index (CPI), which excludes volatile fresh food prices, topped market expectations and was up from 2.3 percent in October.It remained above the Bank of Japan’s key two percent inflation target, set over a decade ago as part of efforts to boost the stagnant economy.The two-percent target has been surpassed every month since April 2022, although central bank policymakers have sometimes questioned the role of temporary factors such as the war in Ukraine.Analysts had forecast a core CPI reading of 2.6 percent for November. “Core core CPI”, which excludes both fresh food and energy prices, stood at 2.4 percent.The Bank of Japan on Thursday left its borrowing costs unchanged in a policy decision, warning of uncertainty over the US economy under president-elect Donald Trump.That caused the yen to fall against the dollar, extending a retreat that began Wednesday when the Federal Reserve forecast it would make fewer interest rate cuts.On Friday morning, one dollar bought 157.61 yen, compared with about 153.60 on Wednesday.”Despite the pause, the BoJ appears determined to tighten policy further,” said Stefan Angrick of Moody’s Analytics.”The central bank’s monetary policy statement maintains a fairly hawkish tone, arguing that the economy is recovering and will keep growing above its potential rate — a view that feels at odds with the data,” he said.Weak demand has been a drag on growth for Japan, and it’s likely that data will show the economy shrinking in 2024, Angrick said, adding that the bank faced a tricky situation.”The domestic economy isn’t strong enough for significant rate hikes, but maintaining the status quo risks further yen depreciation and higher inflation,” he said.”We anticipate two more rate hikes in 2025.”

Global stocks mostly fell Thursday as markets digested fresh central bank decisions and a rebound effort on Wall Street faded while US Treasury bond yields climbed further.US indices bounced early in the day, but the attempted rally faded as the yield on the 10-year US Treasury note rose above 4.5 percent. The Fed on Wednesday lowered interest rates but signaled it expects fewer interest rate cuts in 2025.Thursday’s move in stocks is “kind of a lackluster recovery effort,” said Briefing.com analyst Patrick O’Hare.”A lot of good news has been priced into this market,” he said. “And now the market is going to sit back and see if a lot of that good news that’s priced in actually comes to fruition.”While major US indices finished little changed, equity markets in Europe and Asia retreated.The Bank of England held its key interest rate steady due to UK inflation rising again, and it did not commit to when or by how much it would cut rates in 2025.While that decision was widely expected, more BoE policymakers voted for a cut, which sent the pound falling against the dollar and the euro.The split suggests “members may be more nervous about the state of the economy than originally thought,” said Daniela Sabin Hathorn, senior market analyst at Capital.com.The yen fell against the dollar after the Bank of Japan left borrowing costs unchanged and warned of uncertainty over the economic policies of US President-elect Donald Trump.BoJ governor Kazuo Ueda told reporters after its announcement that officials would hike interest rates if prices and the Japanese economy develop as they expect.He warned that “uncertainty surrounding economic policies by the upcoming (Trump) administration is high, so I believe we will need to size up the possible effect.””The upcoming administration’s financial, trade and immigration policies have the potential not only to affect the US economy and prices but also significantly impact the global economy” and financial markets, Ueda said.The rate decisions by Britain’s and Japan’s central bank were the last of the year.”With the major risk events of the week behind us, the question remains: will the traditional Santa rally take hold, or will 2024 mark a departure from the norm?” asked City Index and FOREX.com analyst Fawad Razaqzada.Markets often drift higher at the end of the year when small investors influenced by the holidays dominate trading in what is often called a “Santa rally.”A possible US government shutdown could spoil a Santa rally, but investors appeared unfazed on Thursday.President-elect Trump and tech billionaire Elon Musk urged Republican lawmakers to scupper a cross-party deal to avert a halt in non-essential US government operations in the early hours of Saturday.But Trump announced on social media Thursday afternoon that Republicans had come up with a new funding package to avert a shutdown.- Key figures around 2130 GMT -New York – Dow: UP less than 0.1 percent at 42,342.24 (close)New York – S&P 500: DOWN 0.1 percent at 5,867.08 (close)New York – Nasdaq Composite: DOWN 0.1 percent at 19,372.77 (close) London – FTSE 100: DOWN 1.1 percent at 8,105.32 (close) Paris – CAC 40: DOWN 1.2 percent at 7,294.37 (close)Frankfurt – DAX: DOWN 1.4 percent at 19,969.86 (close)Tokyo – Nikkei 225: DOWN 0.7 percent at 38,813.58 (close)Hong Kong – Hang Seng Index: DOWN 0.6 percent at 19,752.51 (close)Shanghai – Composite: DOWN 0.4 percent at 3,370.03 (close)Euro/dollar: UP at $1.0364 from $1.0353 Pound/dollar: DOWN at $1.2496 from $1.2574Dollar/yen: UP at 157.35 yen from 156.87 yen Euro/pound: UP at 82.91 pence from 82.33 penceBrent North Sea Crude: DOWN 0.7 percent at $72.88 per barrelWest Texas Intermediate: DOWN 1.0 percent at $69.91 per barrelburs-jmb/aha

Macau on Friday will welcome a new leader who has criticised the “barbaric expansion” of the casino industry and vowed to diversify the city’s economy to align it with China’s development goals.Sam Hou-fai, 62, is set to be sworn in as Macau’s next chief executive on Friday by Chinese President Xi Jinping, after a one-horse race in October where he was chosen by a committee of 400 pro-establishment figures.His inauguration will coincide with the 25th anniversary of the former Portuguese colony being handed over to China under a “One Country, Two Systems” framework that promised autonomy and a separate legal system.Sam spent his entire post-handover career as president of Macau’s Court of Final Appeal, the city’s top court.Despite that, he has admitted to being relatively unknown in the city — which he said was proof that judges were independent.Unlike the three chief executives before him, Sam was born in mainland China and does not have a background in business. He moved to Macau in 1986 to work for the colonial administration.Beijing has for years ordered Macau to diversify its economy and grow non-gaming industries. But as of November, gaming-related taxes still make up 81 percent of government revenue.Announcing his leadership bid in August, Sam said there had been “a period of disorderly development and barbaric expansion” by the tourism and casino industries.”This situation of having one dominant industry is unfavourable to the long-term development of Macau and brings a huge negative impact,” he said at a press conference.He later dialed down his criticism and said that the gaming sector will not shrink or be shut down under his administration, adding that “healthy and orderly development” was needed.Sam, who studied law at China’s elite Peking University and later in Portugal, rose through the ranks as Macau’s last colonial government sought to localise its civil service in the late 1980s.Jorge Rangel, the ex-minister in charge of that localisation effort, recalled Sam as a “quiet type of person” who was “very young when he was appointed senior judge in Macau”.Having joined the judiciary in 1995, Sam was fast-tracked to the top post just four years later and he “accepted his position very well.””He knew that it was a very big challenge for him,” Rangel told AFP.As top judge, Sam presided over trials of corrupt Macau officials.- Dissent stifled -When neighbouring Hong Kong was rocked by huge pro-democracy protests in 2019, Beijing also clamped down on dissent in Macau — a trend reflected in the courts.”(Sam’s) judicial style is literalism: he will rule based on how the law was written,” University of Macau scholar Ieong Meng-u told AFP.But in some cases, “the authorities had already decided to do something, and they needed to find the legal grounds”, Ieong said.In 2021, Sam was widely panned for a ruling that outlawed a peaceful candlelight vigil held to commemorate the 1989 Tiananmen Square crackdown.The same year, Sam and his fellow judges ruled in favour of the Macau authorities’ decision to disqualify 21 pro-democracy candidates from running for the city’s legislature.As a policymaking novice, Sam will have to contend with an economy that has not fully recovered from the heavy blow dealt by the coronavirus pandemic and long-running livelihood concerns.Despite being a native of Zhongshan in southern China, Sam has described himself as a “being from old Macau” and dismissed criticisms that he is out of touch.On the streets of Macau, one resident told AFP that he was hopeful about Sam’s administration.”I believe that he has much better administrative and judicial experiences, unlike his predecessors,” said Lau, a retired civil servant in his seventies who only gave his surname.”He will run a tighter ship and be fairer, at least that’s my hope.”