Governments must regulate social networks: Facebook’s Clegg

Clegg later told an audience in Berlin that countries like China would not wait for the west to set standards for the Internet. (AFP)
Updated 25 June 2019
0

Governments must regulate social networks: Facebook’s Clegg

  • Clegg said there was a “pressing need” for new “rules of the road” on issues including data privacy and election rules

LONDON: Governments, not companies, must regulate social networks, Facebook’s head of global affairs and former UK deputy prime minister Nick Clegg, said Monday.
“It’s not for private companies, however big or small, to come up with those rules. It is for democratic politicians in the democratic world to do so,” Clegg told the BBC in an interview.
Clegg, the former leader of British Liberal Democrats party, said there was a “pressing need” for new “rules of the road” on issues including data privacy and election rules.
At the same time, companies such as Facebook should play a “mature role” in advocating regulation, he told the BBC.
Clegg later told an audience in Berlin that countries like China would not wait for the west to set standards for the Internet.
“If we in Europe and America don’t turn off the white noise and begin to work together, we will sleepwalk into a new era where the Internet is no longer a universal space but a series of silos where different countries set their own rules and authoritarian regimes soak up their citizens’ data while restricting their freedom,” he said at the Hertie School of Governance.
“The fact is there is no longer a single unilateral Internet but rather two Internets: China and the rest of the world.”
Clegg said he was in Berlin for the last in a series of meetings with experts around the world about the creation of a Facebook “independent oversight board” that would make binding decisions about content issues such as reported hate speech.
He said the company expected to release a “final charter” for the oversight board this summer.
“But it would be a much easier task as well as a more democratically sound one if some of the decisions that we have to make were instead taken by people who are democratically accountable to the people at large rather than by a private company,” he said.
Britain has said it will make social media bosses personally liable for harmful content and shut down offending platforms under a “world-leading” government plan.
Coming in for heavy criticism over the past year, Facebook has instituted changes, particularly on privacy and the transparency of political campaign ads.
Facebook chief Mark Zuckerberg has called for “globally harmonized” online regulation.
Sceptics say Facebook is seeking to buy time amid calls for tougher regulation in the United States and elsewhere — with some calls to break up major tech firms and other activists questioning whether they should maintain immunity from liability for content posted by users.


China central bank moves to support financial institutions

Chinese 100 yuan banknotes are seen on a counter of a branch of a commercial bank in Beijing, China, March 30, 2016. (REUTERS)
Updated 24 July 2019
0

China central bank moves to support financial institutions

  • Many market watchers believe the PBOC will adjust its money market rates in early August if the US Federal Reserve cuts its key rate, as widely expected, on July 31

BEIJING: China’s central bank offered medium-term loans to financial institutions on Tuesday in an attempt to get more affordable funds to struggling smaller firms, as it steps up efforts to support a slowing economy.
With growth in China sliding to a near 30-year low, global financial markets are closely watching to see if the People’s Bank
of China (PBOC) will trim interest rates soon in line with expected easing by other central banks.
While the PBOC left rates on the medium-term loans unchanged on Tuesday, and the injection had been expected, it funneled more lower-cost funds into a credit program aimed specifically at reducing strains on small and medium-sized businesses.
The PBOC lent 497.7 billion yuan ($72.31 billion), including 200 billion yuan through one-year medium-term lending facility (MLF) loans and another 297.7 billion yuan through targeted medium-term lending facility (TMLF) loans, it said in a statement.
The size of the TMLF funding was 11 percent larger than the last such injection in April.
Interest rates for both liquidity facilities were unchanged from previous levels. The one-year MLF and TMLF remained at 3.30 percent and 3.15 percent, respectively.
The total amount roughly offset 502 billion yuan of MLF loans that were set to expire on Tuesday,
ensuring a steady supply of cash.
“Replacing some MLF with TMLF effectively cut funding costs. We should focus on the lower rate, instead of the net drainage on the day,” said Frances Cheung, head of Asia macro strategy at Westpac in Singapore.

BACKGROUND

China is keeping all its policy tools within reach as the trade war with the US gets longer and costlier, but sees more aggressive action like interest rate cuts as a last resort given concerns about rising debt.

The central bank said banking system liquidity will be “reasonably ample” after the lending operations.
About 160 billion yuan in reverse repos were also set to expire on Tuesday, according to Reuters calculations based on official data. The PBOC did not say in its statement whether it had drained funds from money markets on Tuesday.

BACKGROUND

China is keeping all its policy tools within reach as the trade war with the US gets longer and costlier, but sees more aggressive action like interest rate cuts as a last resort given concerns about rising debt.

Some traders said Tuesday’s moves were in line with the PBOC’s support measures since last year, which have been aimed at getting more affordable financing to small and private companies.
While Chinese regulators have urged banks to keep lending to distressed firms, such companies are often considered higher credit risks than big, state-owned enterprises.
Traders and analysts still expect the PBOC to cut rates on some of its liquidity tools in coming months.
The PBOC has already slashed banks’ reserve requirement ratios (RRR) six times since early 2018 to free up more money to lend, while guiding short-term market rates lower through liquidity injections in various forms.
Many market watchers believe the PBOC will adjust its money market rates in early August if the US Federal Reserve cuts its key rate, as widely expected, on July 31.
Cheung from Westpac said it was still possible the PBOC could lower the MLF rate after the Fed’s policy decision.
She also has pencilled in a 50 basis-point RRR cut this quarter, and another in the fourth quarter.