>>> What to look at today - 15th of December 2023

Asian stocks advanced, fueled by China’s central bank as it stepped up support for the economy by adding $112 billion of cash into the financial system. Treasuries edged lower.  MSCI AC Asia Pacific Index rose 1% to its highest since early August, with Hong Kong stocks rallying 3%. Futures for US equities crept slightly higher after a technical indicator showed they are in overbought levels. The S&P 500 saw a small advance in the previous session and the Nasdaq 100 fell after an over 50% surge in 2023. The People’s Bank of China injected a record amount of cash via one-year policy loans as it seeks to support an economy suffering from a property market crisis and weak demand. A key set of monthly data showed China’s recovery is still patchy, but a relaxation of home buying curbs in Beijing and Shanghai kept traders upbeat. Treasuries fell across tenors in Asian trading, with the 10-year yield back near 4%. The benchmark paper had declined below that level on Thursday.  The yen steadied below 142 per dollar as traders adjusted their positions ahead of the weekend and before the Bank of Japan’s policy decision next week. The BOJ is expected to leave policy unchanged, but speculations are on the rise that policymakers may signal an upcoming end to the negative-rate policy.  The dollar traded in tight range against the Group-of-10 currencies. The greenback had declined against most of its developed-market peers in the previous session, partly driven by strength in both the euro and the pound after Europe’s central bankers signaled they are in no hurry to join the US pivot toward interest-rate cuts. Economists at some of Wall Street’s biggest banks are now calling for the Fed to roll out rate cuts earlier and faster next year, emboldened after the central bank’s last meeting of 2023 set off fireworks across financial markets. At Goldman Sachs Group Inc., economists see a steady course of interest-rate cuts that begins in March. Barclays Plc is now calling for three cuts in 2024, from just one seen ahead of this week’s Fed meeting. And JPMorgan Chase & Co. bumped its view on the start of the easing cycle to June from July. oil was set to post its first weekly gain in almost two months as the Fed’s latest stance triggered a bullish pulse across markets. Gold also headed for a weekly advance. US After Hours COST +1.3% higher on earnings and $15 spec div; RTX names a new CEO; NX -14%, SCHL -12%, LEN -3.5% lower on earnings.

Nikkei +0.87% Hang Seng +2.04% CSI -0.32% Shanghai -0.52% Shenzen -0.51%

Eur$ 1.0982 CNH 7.1162 CNY 7.1103 JPY 142.08 GBP 1.2759 CHF 0.8677 RUB 89.4873 TRY 29.0430 WTI$ 71.70 +0.17% Gold 2,035 -0.05% BTC 42,586 -0.94% ETH 2,265 -1.50%

S&P +0.10% Nasdaq +0.12% EuroStoxx +0.06% FTSE +0.27% Dax +0.06% SMI -0.009%

Macro :
- Real Estate Soars as Second-Best Performing Group in S&P (1)
- New Sanctions Bar UK Entities From Trading Most Russian Metals
- ECB and BOE Reluctant to Join Fed in Pivoting Toward Rate Cuts
- Andurand’s Main Hedge Fund Slumps 54% After Roller-Coaster Ride
- EU Agrees on Russia Sanctions in Key Show of Support for Kyiv
- Gundlach’s 3% Call for 10-Year US Yield Aided by Recession Study

Keep an eye on :
- AF FP : French Aviation Authority Orders 30% of Orly Flights Cut Monday
- AZN LN : Astra, AbbVie Slammed by Warren for ‘Abusing’ Drug Patent System
- CS FP : Insurer Profit Boost Deceptive as IFRS 17 Drag Emerges: BI Focus
- BX US : German Football to Shortlist Private Equity Bidders Next Week
- IAG LN : British Airways to Use AI to Improve Flight Operations: FT
- CPR IM : Campari to Buy Courvoisier From Beam Suntory for $1.2 Billion, Cognac Deal Adds Fourth Premium-Spirit Category: React
- CRI FP : Chargeurs CEO Plans to Offer EU12/Share for Company’s Shares
- ELAN US : Activist Ancora Is Said to Push for Changes at Elanco (Correct)
- ESSITYA SS : Essity to Keep Consumer Tissue Private Label Europe Business
- HNSA SS : Hansa Biopharma: Imlifidase Met Primary Endpoint in Trial
- DEC FP : JCDecaux to Merge Slovakia Business With JOJ Media House Unit
- KEMPOWR FH : Kempower Rated New Buy at Nordea; PT 36.90 euros
- KESKOB FH : Kesko Nov. Comparable Sales -4.3%
- LAZ US : Lazard, Elaia in Talks to Make EU Technology Investment Platform
- MRK US : Merck Says FDA OKs Welireg for Advanced Renal Cell Carcinoma
- OCI NA : OCI's Iowa Plant Price Highlights Firm Nitrogen Value
- OR FP : P&G, L'Oreal Can Protect 2024 Margin as Inflation Passes Peak
- PROXI NO : Proximar Seafood Offers Shares at NOK2/Share
- SAN FP : Sanofi’s Fexinidazole Winthrop Gets Positive Opinion in Europe
- STJ LN : St James’s Place Plans to Raise up to £1b by 2030: FT
- STJ LN : St James’s Place plans to raise up to £1bn to buy out partner businesses
- SU FP : Schneider Electric to Propose Philippe Knoche to Board in 2024
- SHEL LN : Shell, PDVSA Disagreement on LNG Outlook Stalls Project: Rtrs
- STM GY : Stabilus Proposes Dividend of €1.75 Per Share
- SY1 GY : Symrise Revises FY2023 Guidance, Confirms Long-Term Targets
- TIT IM : Telecom Italia Extends Deadline for Submitting Sparkle Offer
- TIGO SS : Millicom Raises Target for 2022-2024 Equity Free Cash Flow
- TRN LN : UK Abandons Plan to Create An Online Rail Ticket Retailer
- TWT US : Elon Musk told lenders they would not lose money on Twitter deal
- ULVR LN : Unilever in Talks to Sell Elida Beauty to Yellow Wood: Reuters
- X US : U.S. Steel Sees 4Q Adjusted EPS 20C to 25C, Est. 22C: Snapshot
- VIV FP : Vivendi's Options for Telecom Italia May Boost NetCo Sale
- VOW GY : VW’s Cariad Reaches Deal on 20% Budget Cut, Voluntary Buyouts
- WLN FP : Worldline Chairman Bernard Bourigeaud Dies at 79
- ZAL GY : Chrono24 Taps Zalando Executive as Next CEO

>>> Europe : Brokers Upgrades & Downgrades - 15th of December 2023

>>> Up
* Antin Raised to Overweight at JPMorgan; PT 16.90 euros
* AUTO1 Raised to Buy at HSBC; PT 7 euros
* EQT Raised to Neutral at JPMorgan; PT 260.20 kronor
* LPP Raised to Overweight at JPMorgan; PT 20,000 zloty
* Pepco Group Raised to Overweight at JPMorgan; PT 31 zloty
* Trainline Raised to Equal-Weight at Barclays; PT 355 pence

>>> Down
* Ageas Cut to Hold at HSBC; PT 45 euros (Yest.)
* Banco BPM Cut to Hold at Jefferies; PT 5.50 euros
* BlackRock Cut to Neutral at JPMorgan; PT $708
* Centrica Cut to Hold at SocGen; PT 160 pence
* Dustin Cut to Hold at Kepler Cheuvreux; PT 10 kronor
* GenSight Biologics Cut to Hold at Kepler Cheuvreux
* Gofore Cut to Accumulate at Inderes; PT 26 euros
* Nokia Cut to Sell at Citi; PT 2.70 euros
* Norsk Hydro Cut to Neutral at Citi; PT 71 kroner
* Orsted Cut to Hold at DNB Markets; PT 325 kroner (Yest.)
* Sabadell Cut to Equal-Weight at Barclays; PT 1.40 euros
* SKF Cut to Hold at DNB Markets; PT 220 kronor (Yest.)
* SOITEC Cut to Neutral at Citi; PT 180 euros

>>> Initiation
* Derwent London Re-Initiated Hold at Berenberg; PT 2,512 pence
* Energy Srl Cut to Reduce at Kepler Cheuvreux; PT 1.70 euros
* Great Portland Re-Initiated Hold at Berenberg; PT 453 pence
* Helical Re-Initiated Buy at Berenberg; PT 253 pence
* Hochschild Mining Rated New Buy at Canaccord; PT 145 pence
* Inchcape Reinstated Outperform at BNPP Exane; PT 920 pence
* Lonza Reinstated Reduce at Kepler Cheuvreux
* MBB SE Rated New Outperform at Oddo BHF; PT 130 euros
* Shaftesbury Capital Re-Initiated Buy at Berenberg; PT 160 pence

>>> Call

FT : Chinese spies recruited European politician in operation to divide west

Chinese spies recruited European politician in operation to divide west
Covert officer paid and directed far-right Belgian politician for more than three years

Chinese spies had run a far-right Belgian politician as an intelligence asset for more than three years in a case that shows how Beijing has conducted influence operations in an effort to shape politics in its favour.

Daniel Woo, an officer in China’s Ministry of State Security spy agency, pushed Frank Creyelman, a former Belgian senator, to influence discussions in Europe on issues ranging from China’s crackdown on democracy in Hong Kong to its persecution of Uyghurs in Xinjiang.

As German Chancellor Olaf Scholz was about to visit China in late 2022, Woo asked Creyelman to convince two right-wing members of the European parliament to say publicly that the US and UK were undermining European energy security.

“Our purpose is to divide the US-European relationship,” Woo wrote in a text message to Creyelman.

The relationship between the Chinese case officer and his Belgian agent is documented in text messages from 2019 to late 2022 that were obtained from a western security source in a joint investigation by the Financial Times, Der Spiegel and Le Monde.

Creyelman did not respond to efforts to reach him by text, phone and email.

The exchanges revealed in explicit detail how Chinese intelligence tries to manipulate political discussion around the world in Beijing’s favour — a concern increasingly flagged by western security agencies.

While most big countries engage in spying, the MSS operation in Europe highlights one of the defining features of Chinese espionage — widespread influence operations aimed at shaping political debate that have stretched from Ottawa to London to Canberra. Washington has also repeatedly warned of covert efforts by Beijing to interfere with elections.

“The MSS has spent decades trying to shape politics and global discourse on China. Recruiting and manipulating academics, policymakers, business leaders and — as this case shows — even politicians, is part of that,” said Alex Joske, a consultant at McGrathNicol and the author of Spies and Lies, a book about the MSS.

Woo operates from the Zhejiang branch of the MSS, according to intelligence officials from four western countries. Western intelligence has also tracked him operating in Poland and Romania.

In one exchange in 2021, Woo told Creyelman he had been tasked with “attacking Adrian Zenz”, a researcher who helped reveal how China detained hundreds of thousands of the mainly Muslim Uyghur minority in its far-western region of Xinjiang.

Woo also asked Creyelman to help disrupt a conference on Taiwan and the pair discussed paying an intermediary to influence a Catholic cardinal to warn against politicising Covid-19 as China came under pressure over the virus that emerged from Wuhan.

Former US intelligence officials with expertise on the MSS who were briefed on the exchanges said the messages bore the hallmarks of a classic political influence operation by the agency.

“They reflect the MSS obsession with the US having been the ‘black hand’ behind the Hong Kong protest movement, the desire to constantly look for opportunities to disrupt pro-Taiwan conferences and events in third countries, and its mission to discredit those reporting on human rights abuses in Xinjiang,” said Dennis Wilder, a former top CIA China analyst now at Georgetown University.

Peter Mattis, a former CIA counter-intelligence analyst, said it also illustrated a feature of Chinese intelligence — how the MSS gives autonomy to its regional branches. “This case shows that Beijing and the MSS provide direction, but intelligence officers and the sources work together on how to achieve their objectives,” said Mattis, head of the Jamestown Foundation think-tank.

One former CIA operative with experience in Europe said MSS case officers tended to focus on recruiting or co-opting lower-ranking politicians on the continent “who are sympathetic to China’s cause or who benefit from China’s largesse”.

“These lower-ranking politicians have established access to senior officials, regularly discuss with them sensitive topics, and then, wittingly or unwittingly, share with the MSS what they have gleaned,” said the former CIA officer.

One exchange between Woo and Creyelman starkly revealed that strategy. The Chinese officer made reference to past efforts to target Martin Selmayr, a former secretary-general of the European Commission who was once among the most powerful officials in Brussels.

There is no evidence that China was successful in the endeavour. Selmayr, currently the head of the EU representation in Austria, vehemently denied any knowledge of the situation, adding that it was not his responsibility “to explain rather dubious conversations between people of an obviously dubious nature”.

It is unclear how or when Creyelman was recruited. His relationship with Woo seems to have been conducted remotely, with the exception of a trip to Sanya, a beach resort city in Hainan Island in 2019 to meet his intelligence handler.

A veteran of Belgium’s far-right Flemish nationalist movement since 1977, Creyelman served in the federal Senate from 1999 to 2007 and is now an honorary member of the Flemish parliament. He is the leader of the Vlaams Belang party in his local city, Mechelen.

Nigel Inkster, former head of operations at MI6 and an expert on Chinese intelligence, said the MSS conducted most of its espionage through provincial departments and that Zhejiang had “primacy” for operations in Europe.

One western intelligence source said the division of MSS in Zhejiang, an eastern province of China, had an estimated 5,000 intelligence officers and commonly met assets at Sanya.

“China has a significant human and electronic collection capability in Brussels, which is seen as a target-rich environment due to the concentration of international organisations, including the European Commission and Nato,” said Inkster, who now works for consultancy Enodo Economics.

The former CIA operative said the MSS also tended to take more risks in Europe because it viewed the consequences of being caught as being less severe than in America. One former senior western intelligence officer said Brussels was a particular focus because its security services did not have sufficient resources.

“Belgium has become a major centre for intelligence operations by a variety of hostile states due to the ease of operation there,” said the former senior officer.

A Belgian government spokesperson said relevant authorities were aware of the Creyelman case but provided no further comment.

Woo discussed money several times in the exchanges, including amounts he would pay Creyelman or others for their help. At one point, Woo taught Creyelman how to use an app to transfer cryptocurrency.

Creyelman appears to have had little success in fulfilling the tasks assigned by Woo in the texts. In June 2021, for example, he admitted that he “tried to oppose . . . without success” a resolution in the Belgian parliament that declared Uyghurs at risk of genocide.

In 2019, Woo asked Creyelman to arrange publication of an article pushing back against pro-democracy protests in Hong Kong. Creyelman said he could pay a freelance journalist who would charge at least €2,000.

The Brussels-based journalist, James Wilson, said he had been approached by Creyelman for “work on China” but “politely declined” and that writing stories for payment was “against my principles”.

In the final message of the texts obtained, Woo said he was relying on Creyelman to convince two Vlaams Belang members of the European parliament — Tom Vandendriessche and Filip De Man — to issue statements before Scholz’s visit.

“I’ve had some problems working on other channels, so for now I’m counting on your MEPs to bring good news. [Lol][Lol].”

But no statements followed. Vandendriessche said he held no discussions with Creyelman on the issue. De Man declined to comment on whether he had discussed the issue with Creyelman.

Woo could not be reached at multiple phone numbers and email addresses he has used. The Chinese embassy in Brussels said it was unaware of the events. 

>>> US After Hours Summary: COST +1.3% higher on earnings and $15 spec div; RTX

After Hours Summary: COST +1.3% higher on earnings and $15 spec div; RTX names a new CEO; NX -14%, SCHL -12%, LEN -3.5% lower on earnings

After Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: COST +1.3% (also declares special dividend of $15/sh), X +0.1%
Companies trading higher in after hours in reaction to news: ARIS +2.4% (selected by DoE to receive research grant), CHWY +1.5% (Director bought 15353 shares), LW +0.5% (increases dividend), COOK +0.3% (voluntary recall of its Flatrock Griddle; reiterates FY23 guidance), AL +0.3% (delivers two new Airbus aircraft to Sunclass Airlines), PFE +0.2% (increases dividend), CGEM +0.1% (first patient dosed in Phase 1 trial of CLN-617), ELAN +0.1% (activist investor Ancora has built a position; pushing for changes; according to Bloomberg Law)

After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: NX -14%, SCHL -12% (also increases repurchase program by $66 mln), LEN -3.5%, RICK -1.9%
Companies trading lower in after hours in reaction to news: AADI -54.4% (reports interim results from PRECISION1 Trial), EOSE -22.6% ($40 mln stock offering), HRTG -7.1% (stock offering), COKE -4.9% (files mixed shelf securities offering), SGRY -4.9% (8 mln share offering by selling shareholders), BLBD -2.7% (2.5 mln share offering by selling shareholders), SNDX -0.9% ($150 mln stock offering), ANDE -0.7% (increases dividend), OABI -0.7% (presents new data on its OmnidAb platform), NYMT -0.7% (decreases dividend), SHIP -0.7% (share capital accretion plan and open market stock purchases by CEO), NUE -0.3% (increases dividend), C -0.2% (shutting down its Muni business according to Bloomberg), RLI -0.1% (Chairman of the Board to retire), GE -0.1% (selected by NASA to work with its Hybrid Thermally Efficient Core project)

FT : AI presents growing risk to financial markets, US regulator warns

AI presents growing risk to financial markets, US regulator warns
Financial Stability Oversight Council flags emerging technology as a ‘vulnerability’ for the first time in latest report

The growing use of artificial intelligence has become a significant risk to stocks, bonds and financial markets in general, according to a new report from the chief US financial stability regulator.

It is the first time that AI was identified as a “vulnerability” by the Financial Stability Oversight Council in its annual report. Treasury secretary Janet Yellen, who also chairs the FSOC, on Thursday predicted at a meeting of the council that the use of AI by banks, investors and other financial market players is likely to continue to increase.

While Yellen called AI an “emerging threat” to financial stability, she also said she believed existing regulations could be used to curb the technology’s potential market risks.

“Supporting responsible innovation in this area can allow the financial system to reap benefits like increased efficiency, but there are also existing principles and rules for risk management that should be applied,” she said.

Along with Yellen, the FSOC includes the heads of all of the big US regulators.

Gary Gensler, who chairs the Securities and Exchange Commission and is also on the FSOC, told the Financial Times in October that without swift intervention by regulators to tame the risks of AI, it was “nearly unavoidable” that the technology would trigger a financial crisis within a decade.

AI is one of 14 potential risks to financial markets listed in the FSOC’s annual report that Yellen said the council would monitor closely in the next year.

AI’s “use in financial services has increased in recent years, thanks to more advanced algorithms, increased volumes of data, data storage and processing power improvements and cost reductions among many of these dimensions,” a Treasury official told reporters. “AI has the potential to increase efficiency and innovation, but it also introduces certain risks.”

FSOC is also watching the effects of climate change, which the stability regulator added to its watchlist two years ago. The regulator has also been stepping up its efforts this year after March’s regional banking turmoil to come up with ways to identify other financial groups that could cause market meltdowns or credit crunches besides the nation’s largest banks.

On climate, Yellen said the FSOC and other regulators have made progress addressing the risks to financial markets, but that there was still more work to be done to develop a framework for how to effectively regulate the issue and safeguard markets.

“This work is an important step towards fully and durably integrating climate risk into macroprudential policy, to preserve US financial stability and protect the US economy,” Yellen said.

The Bank of England earlier this month said it was studying the impact of AI on financial stability, but did not add the technology to its own list of market risks.

>>> US Close Dow +0.43% S&P +0.26% Nasdaq +0.19% Russell +2.72%

Closing Stock Market Summary
The stock market had another strong showing after yesterday's rally. The Russell 2000 jumped 2.6% while the Nasdaq Composite (+0.2%), S&P 500 (+0.3%), and Dow Jones Industrial Average (+0.4%) registered more modest gains due to relative weakness in mega cap constituents.

The three major indices hit an air pocket in the early afternoon and briefly fell below yesterday's closing levels. There was no specific catalyst to account for the move, which was likely related to a lingering sense that stocks are overbought on a short-term basis.

Still, many stocks recovered from session lows. The Invesco S&P 500 Equal Weight ETF (RSP) was up only 0.8% at its low for the session, but closed with a 1.4% gain.

Six of the 11 S&P 500 sectors registered gains of at least 0.9%. The energy sector (+2.9%) saw the largest gain, rising alongside oil prices ($71.61/bbl, +2.14, +3.1%), which had been partially reacting to a weaker dollar. The U.S. Dollar Index was down 0.9% to 101.97 from a high of 104.03 yesterday. The real estate sector (+2.6%) was the next best performer.

Meanwhile, he consumer staples (-1.5%) and utilities (-1.3%) sectors saw the biggest declines.

The overall positive bias was a continuation of yesterday's post-FOMC surge. Buyers have been responding to a more dovish-looking policy/tone from the FOMC and Fed Chair Powell. As a results, expectations for a rate cuts have increased from yesterday. The fed funds futures market is now pricing in six (!) rate cuts for 2024 with the first cut coming in March.

Other central banks followed the Fed's lead and left their respective rates unchanged, too. The ECB left its corridor of key policy rates unchanged, as expected, along with the Bank of England, the Swiss National Bank and Hong Kong Monetary Authority. Notably, however, ECB President Lagarde and officials at other banks indicated that they are further away from rate cuts after Fed Chair Powell disclosed that the FOMC had began discussing rate cuts.

Volume was heavy at both the NYSE and Nasdaq due in part to some added maneuvering ahead of tomorrow's huge quarterly options and futures expiration. The increased participation was also driven by a fear of missing out on further gains in this seasonally strong period for the market.

The rally continued for the Treasury market today also. The 2-yr note yield fell six basis points today to 4.40% and the 10-yr note yield declined nine basis points to 3.93%, which acted as support for stocks.
  • Nasdaq Composite: +41.0%
  • S&P 500: +22.9%
  • Dow Jones industrial Average: +12.4%
  • S&P Midcap 400: +14.0%
  • Russell 2000: +13.6%

Reviewing today's economic data:
  • Weekly Initial Claims 202K (consensus 222K); Prior was revised to 221K from 220K; Weekly Continuing Claims 1.876 mln; Prior was revised to 1.856 mln from 1.861 mln
    • The key takeaway from the report is that the level of initial jobless claims -- a leading indicator -- is a long way still from being associated with levels registered during a recession.
  • November Retail Sales 0.3% (consensus -0.1%); Prior was revised to -0.2% from -0.1%; November Retail Sales ex-auto 0.2% (consensus 0.0%); Prior was revised to 0.0% from 0.1%
    • The key takeaway from the report is that it remains supportive of a soft landing outlook, as the rebound in sales from October reflects an ongoing propensity of consumers to spend on goods.
  • November Export Prices -0.9%; Prior was revised to -0.9% from -1.1%
  • November Export Prices ex-ag. -1.0%; Prior -1.0%
  • November Import Prices -0.4%; Prior was revised to -0.6% from -0.8%
  • November Import Prices ex-oil 0.2%; Prior -0.2%
  • October Business Inventories -0.1% (consensus 0.1%); Prior was revised to 0.2% from 0.4%

Looking ahead to Friday, market participants will receive the following economic data:
  • 8:30 a.m. ET: December Empire State Manufacturing (consensus 3.0; prior 9.1)
  • 9:15 a.m. ET: November Industrial Production (consensus 0.2%; prior -0.6%) and Capacity Utilization (Briefing.com consensus 79.1%; prior 78.9%)
  • 9:45 a.m. ET: December Preliminary S&P Global US Manufacturing PMI (prior 49.4) and S&P Global US Services PMI (prior 50.8)
  • 4:00 p.m. ET: October Net Long-Term TIC Flows (prior -$1.7 billion)

Reuters : France's new EV cash incentive rules toughen market for Chinese-made c

France's new EV cash incentive rules toughen market for Chinese-made cars

PARIS, Dec 14 (Reuters) - France's revamped rules on consumer cash incentives for electric car purchases favour vehicles made in France and Europe over models manufactured in China, a government list of eligible car types published on Thursday showed.

Some 65% of electric cars sold in France will be eligible for the scheme, which from Friday will include new criteria covering the amount of carbon emitted in the manufacturing of an electric vehicle (EV).

The list of eligible models includes 24 produced by Franco-Italian group Stellantis (STLAM.MI) and five by French carmaker Renault (RENA.PA). Elon Musk's Tesla (TSLA.O) Model Y will be eligible but not its Model 3.

Electric vehicle brand MG Motors, owned by China's SAIC, said it expects the new rules to weigh on the French EV market.

"There are cars that will entirely lose their competitiveness", an MG spokesperson told Reuters, adding that the brand had decided not to apply for the bonus scheme for its MG4 model because it was "designed to exclude us".

French Finance Minister Bruno Le Maire hailed what he called the new rules' incentive for automakers to reduce their carbon footprint.

"We will no longer be subsidising car production that emits too much CO2," he said in a statement.

President Emmanuel Macron's government has wanted to make French and European-made EVs more affordable for domestic consumers relative to cheaper vehicles produced in China.

The average retail price of an EV in Europe was more than 65,000 euros ($71,000) in the first half of 2023, compared with just over 31,000 euros in China, according to research by Jato Dynamics.

The French government already offered buyers a cash incentive of between 5,000 and 7,000 euros to get more electric cars on the road, at a total cost of 1 billion euros ($1.1 billion) per year.

However, in the absence of cheap European-made EVs, a third of all incentives are going to consumers buying EVs made in China, French finance ministry officials say. The trend has helped spur a surge in imports and a growing competitive gap with domestic producers.

China's auto industry relies heavily on coal-generated electricity, meaning many Chinese-made EVs will henceforth not qualify.

The Ademe agency overseeing the process studied the eligibility of almost 500 EV models and their variants to include in the scheme.

Dacia, the low-cost Renault brand, saw its Spring model imported from China excluded from the list.

Tesla's Model 3 is made in China. The Model Y, which is larger and more expensive, is made mainly in Berlin and was the top selling EV in France over the first 11 months of the year.

FT : Former FBI agent who worked for Oleg Deripaska given 4-year prison sentence

Former FBI agent who worked for Oleg Deripaska given 4-year prison sentence
Charles McGonigal had pleaded guilty to violating US sanctions by helping the Russian oligarch spy on a rival

A former high-ranking FBI agent who agreed to work as a covert investigator for Russian oligarch Oleg Deripaska has been sentenced in New York to more than four years in prison, after pleading guilty in August to violating US sanctions and money laundering laws.

Charles McGonigal, who previously served as special agent in charge of counter-intelligence at the FBI’s New York office and who had investigated Deripaska during his time in the agency, was arrested in January. He was charged with helping the oligarch investigate his business rival and fellow oligarch Vladimir Potanin.

McGonigal “abused his position” as one of the most important counter-intelligence officers in the world, assistant US attorney Hagan Scotten told the court prior to sentencing on Thursday. Scotten said the former agent tried to “turn his credentials into cash” and was hoping to make millions of dollars in retirement from his connections.

The government had previously said that while at the FBI McGonigal was “taking advantage of his position to build a Rolodex of rogues to whom he could offer his services after retiring”.

Fighting back tears, McGonigal appealed to the court for leniency, saying he had a “deep sense of remorse and sorrow” for betraying the confidence of those closest to him and damaging the reputation of the FBI.

McGonigal’s lawyers emphasised that their client had served his country with distinction and even helped thwart an attack on the New York City subway in his years at the FBI. They had asked the judge to refrain from sentencing him to any prison time, while the government had asked the judge to impose the maximum 60 months.

Judge Jennifer Rearden ultimately handed down a 50-month sentence, as well as a $40,000 fine and three years of supervised release. She said McGonigal “knew that his actions violated . . . sanctions” and that he had “posed a great risk to national security”.

Deripaska, who made his fortune in metals, was first sanctioned by the US in 2018, in response to Russia’s earlier annexation of Ukraine’s Crimea peninsula.

He is one of the few oligarchs to have spoken out against Vladimir Putin’s full-scale invasion of Ukraine, which he has called “madness” and a “colossal mistake” even while avoiding direct criticism of the Russian president. But his clashes with the Kremlin over the war have done little to mend his longstanding and hostile relationship with western authorities. 

Prosecutors had alleged that McGonigal, who retired from the FBI in 2018 after 22 years at the agency, agreed in 2021 to “investigate a rival Russian oligarch in return for concealed payments from Deripaska”. He worked for the oligarch via a law firm and directly, they said, and earned more than $17,000 for his services.

US authorities charged Deripaska and his associates in September 2022 with violating sanctions, while Ekaterina Voronina, Deripaska’s girlfriend, was charged with making false statements to US authorities as she attempted to enter the country to give birth to the couple’s child. 

In April, Deripaska defeated an attempt by a former business associate to have him fined or jailed for contempt of court in London’s High Court.