FT : Former Interpol head Meng confesses to taking more than $2m in bribes

Former Interpol head Meng confesses to taking more than $2m in bribes


Former president of Interpol Meng Hongwei has confessed in a Chinese court to taking millions of yuan in bribes and other kickbacks, after China's anti-graft body accused him of using state funds to support a "lavish" lifestyle.

Meng went missing while in October last year on a trip to China while still head of Interpol, the organisation that facilitates international police force coordination and arrest requests. 

Chinese authorities later confirmed that he had been targeted in Chinese President Xi Jinping’s sweeping corruption campaign and was suspected of “severe disciplinary violations”, a euphemism for corruption.

Meng, who became the first Chinese national to head Interpol in 2016, had previously been living in Lyon, France, with his wife. China did not inform the organisation or the French government of the corruption investigation prior to Meng's disappearance.

The case has raised questions about Interpol’s vulnerability to autocratic states that might wish to use the organisation to target political rivals.

The former Chinese policeman from 2005 to 2017 had used his positions as a vice minister of public security and head of China’s coast guard to rack up Rmb14.46 million ($2.11m) in cash and other bribes given to secure his help with promotions and business ventures, prosecutors said, according to a statement released by the Tianjin courthouse.

Meng, whose hair appeared to have grown visibly greyer during his detention, accepted the charges and expressed regret over his actions. A verdict will be released at a later date.

The trial comes after a probe into Meng’s conduct by China’s powerful anti-graft body, the National Supervisory Commission, which found that he had “resisted implementing central party decisions” and had “wantonly squandered state funds to satisfy his family’s lavish lifestyle”.

Mr Xi has pledged an unceasing war on graft within the ranks of the Chinese Communist Party. Since he took office, hundreds of thousands of officials have been investigated, from top party leaders to lowly civil servants.

The campaign, in part an effort to raise public trust in cadres, has targeted officials across various factions within the leadership, but has stopped short of probing leaders close to Mr Xi. 

>>> Telecom Italia: Elliott/Vivendi compromise may see departure of board chairm

Telecom Italia: Elliott/Vivendi compromise may see departure of board chairman

A compromise between Telecom Italia's [BIT:TIT] largest shareholders Elliott Management and Vivendi [EPA:VIV] over the future governance and strategy of the telco could involve TIM chairman Fulvio Conti leaving his post, the Italian-language daily Il Sole 24 Orereported. The unsourced report said that Conti's departure would please Vivendi, which holds him responsible for the removal of former TIM CEO Amos Genish.
The article said that in return Genish could resign from the board in a move designed to help Vivendi, which was instrumental in his appointment. The article said that Genish has already been appointed as a senior partner at investment bank BTG Pactual, a development that would make his departure from the TIM board easier.
The item said that Conti may resist any moves to force his resignation because of possible damage to his reputation. The item said that if he resigns, he might not be immediately replaced. The article said that instead his powers cold be transferred to either CEO Luigi Gubitosi or board member Michele Valensise on a temporary basis.
The item added that Genish could be replaced by Generali [BIT:G] chairman Gabriele Galateri.
The article said that if Vivendi and Elliott do reach an agreement it would open the way for Gubitosi to open talks with state-owned financial holding Cassa Depositi e Prestiti (CdP) to take 50% stake in national fibre optic operator Open Fiber. The item said that if this deal goes through, the entire board would be renewed, as CdP would be paid for the stake in TIM stock, making it the largest shareholder in TIM together with Vivendi.
The report said that a compromise could also lead to TIM's savings shares being converted into ordinary shares, a move which both Elliott and Vivendi support.

>>> What to look at today - 20th of June 2019

Treasuries extended gains, while Asian stocks climbed after the Federal Reserve struck a dovish tone in its latest policy statement. The dollar weakened against all major peers and gold climbed to its highest level since 2013.
The 10-year Treasury yield dropped below 2% to its lowest since November 2016. Stocks surged in China ahead of FTSE Russell index changes next week and saw more modest gains in Tokyo, Hong Kong and South Korea. U.S. and European futures rose. Earlier, the S&P 500 Index edged higher as the Fed indicated an increased readiness to cut interest rates. The yen maintained gains after the Bank of Japan kept monetary policy unchanged.
US After Hours SCS -10%, AOBC +6%, ORCL +4.6% following earnings/guidance

Nikkei +0.59% Hang Seng +0.83% CSI +2.65% Shanghai +2.04% Shenzen +1.59%

Eur$ 1.1283 CNH 6.8634 CNY 6.8616 JPY 107.50 GBP 1.2706 CHF 0.9883 RUB 63.5459 TRY 5.7854 WTI$ 54.61 +1.58%

S&P +0.44% EuroStoxx +0.40% Dax +0.36% SMI +0.50%

Macro :
- Powell Opens Door to July Rate Cut Amid Trumpian Uncertainty

Keep ane eye on :
- ABI BB : AB InBev Family's Investment Arm Cobepa Buys Enosplatic: De Tijd
- ASML NA : ASML Gets Bullish Initiation at Wells Fargo on EUV Lithography
- AST IM : Astaldi Says Salini Has Confirmed Interest
- DBK GY : Deutsche Bank Under Probe For Money-Laundering Compliance: NYT
- EVR LN : Evraz Holder to Offer Up to 25m Shrs
- GSK LN : *GSK AIMS TO DISPOSE OF 3 PORTFOLIOS, RAISE GBP1B: REUTERS
- OVS IM : OVS First Quarter Net Sales EU317.5 Mln Vs EU320.5 Mln Y/y
- PSH NA : Pershing Square Holdings Announces $100M Share Buyback Program
- RNO FP : Nissan, Renault Resolve A Standoff on Corporate Governance: WSJ
- SAB SM : Sabadell Halts Plans to Sell Funds Business: El Confidencial
- VIFN SW : Vifor, Daiichi Sue Mylan to Block Copies of Injectafer Treatment
- DG FP : Vinci Energies Buys Koning & Hartman in Netherlands
- VIV FP : Vivendi Says It's Taking Its Time on a Universal Music Deal

>>> Europe : Brokers Upgrades & Downgrades - 20th of June 2019

>>> Up
* Assura Upgraded to Overweight at JPMorgan; PT 79 Pence
* Boliden Upgraded to Overweight at JPMorgan; PT 265 Kronor
* CYBG Upgraded to Outperform at RBC
* Elekta Estimates Raised, Berenberg Sees Opportunities Ahead
* Fresenius Medical Raised to Overweight at Barclays
* Zurich Ins. Upgraded to Overweight at JPMorgan; PT 400 Francs

>>> Down
* Dechra Pharma Downgraded to Hold at HSBC; PT 27.50 Pounds
* Generali Downgraded to Neutral at JPMorgan; PT 18.50 Euros
* Helical Cut to Neutral at JPMorgan; Price Target 4.15 Pounds
* Nexus Downgraded to Hold at Quirin Privatbank AG; PT 33.50 Euros
* Orsted Downgraded to Sector Perform at RBC; PT 600 Kroner
* Paragon Downgraded to Underperform at RBC
* Roche Downgraded to Hold at Liberum; Price Target 275 Francs
* Sodexo Cut to Neutral at MainFirst; Price Target 107 Euros

>>> Initiation
* ASML ADRs Rated New Outperform at Wells Fargo; PT $230
* Aston Martin Rated New Sell at Panmure Gordon; PT 8.02 Pounds

>>> Call