Credit Suisse disputes account of SoftBank founder Masayoshi Son controversial transaction The Japanese group struck a deal with Greensill Capital as the once-close relationship between the two companies grew bitter.

The Swiss bank last month filed a lawsuit in the U.S. against Katerra, a California-based construction group backed by SoftBank’s $100 billion Vision Fund and a client of supply chain finance group Greensill, owed more than $440 million to its wealthy clients.

At issue is SoftBank’s agreement at the end of 2020 to provide Greensill with an emergency cash injection that lent troubled Katerra funds that were initially borrowed from Credit Suisse clients.

As part of the deal, Greensill agreed to write off Katerra’s debt in exchange for a small stake in the construction group, which filed for bankruptcy last June. The Financial Times revealed last year that SoftBank’s $440 million in cash never reached the Swiss bank’s customers.

Thanks for reading FirstFT Asia, here’s the rest of today’s news — Emily

Five more stories in the news

1. US and Russia agree to extend talks on Ukraine crisis Russia has warned it will abandon diplomatic efforts to end Ukraine crisis if the West continues to ignore demands for security guarantees, but agrees Extend talks until this week.

2. New Oriental dismisses 60% of its employees Chinese online tutoring company New Oriental has 60,000 employees fired The group’s founder said it has been since Beijing banned the $100 billion-a-year private education industry from making profits. Like other U.S.-listed Chinese online education companies, New Oriental has lost 90% of its market value since the ban.

3. Chinese tech stocks rebound Chinese tech stocks rebounded yesterday after a week of sharp losses at the start of the year.Hong Kong Hang Seng Technology Index up 2.2%, Alibaba Health Information Technology rose nearly 11%, and the Hong Kong-listed shares of short video platform Kuaishou rose more than 10%. The Star 50 index of Shanghai-listed tech stocks rose about 1 percent.

4. LG Energy Solutions prepares for IPO LG Energy Solution, the world’s second-largest EV battery maker, prepares to raise $11 billion One of the largest listed companies in Korea Because it competes with Chinese rivals for market dominance.

5. Aung San Suu Kyi sentenced to four years in prison Aung San Suu Kyi sentenced by Myanmar military-controlled court four years in prison After she was convicted of three criminal cases including illegal importation and possession of walkie-talkies.

coronavirus digest

• Novak Djokovic won his Appeal against deportation Covid-19 vaccination exemption from Australia.

• Pro-Beijing news organizations and Hong Kong politicians call for punitive measures Cathay Pacific after its crew Violating quarantine rules And started the Omicron outbreak.

• China Tianjin, with a population of 14 million, is tightening epidemic prevention and control measures Find The first case of community transmission of the Omicron coronavirus variant.

• reinfection Covid-19 infections are on the rise early in the pandemic as Omicron Variants spread.

• Novartis will seek Expedited Approval Ensovibep, a Covid-19 drug developed with biotech group Molecular Partners, has shown strong trial results that it may help treat the disease.

the day ahead

World Economic Forum releases global risk report Bubble markets and asset prices are expected Featured in the report. Soaring cryptocurrency prices are also something to watch. (Forbes)

Australian Retail Sales Data The Australian Bureau of Statistics will publish its December report Today’s retail data. Economists expect the month-to-month performance to continue to be strong, building on October’s 4.9% gain. (Australian Associated Press)

what are we still reading

Private equity races to go public Most industries have been enriched during the pandemic — but one particular group has had a particularly good time. 11 listed private equity firms Together, they have added nearly $240 billion in market value by 2021. Now, more and more private buyout groups are scrambling to join their public markets.

N26 co-founder: We got it wrong about global expansion and encryption Max Tayenthal told the Financial Times’ Olaf Storbeck that the €7.8 billion fintech should prioritize expanding its services rather than “raising the flag” in more countries.it Missing out on the cryptocurrency boom, as it struggles to justify its status as one of the most respected fintech companies in Europe. For more industry news, subscribe to our FintechFT Newsletter Delivery on Monday.

What happens when the Web3 bubble bursts? Web3 builds on Web 2.0, which is all about social media and user-driven content, taking it to the next level of utility or hype, depending on your perspective. Rana Foroohar thinks investors should Pay less attention to the Metaverse For those using capital to build future hard assets, there is more.

Interpreter: Fed prepares to shrink $9 trillion balance sheet Markets are on edge as the Fed looks to trim bond holdings that have ballooned over the past two years. Here is our guide How the Fed has managed the process of reducing its securities portfolio, and why it matters to the market.

EU and the City of London As Britain marks the anniversary of its departure from the single market, bankers and officials have confirmed a broader picture: The financial sector is not making a drastic move to the EU, the City of London is endure slow punctures This can take decades to play out.

your feedback

Last week, we asked whether countries should pursue a “zero Covid-19” policy. Here’s what our readers had to say:

“Pursing a zero outbreak policy is an inherently futile and fragile strategy. In fact, a country has to open up, and once it does open up, there will be a spread of Covid-19, so in the end it’s a flawed approach to making extreme measures previously taken It’s pointless. We sometimes praise countries for their success in suppressing the virus, but at what cost to their societies? A more measured balance needs to be applied.

It seems to me that countries pursuing zero Covid-19 are shamelessly causing others to suffer as they develop medical and social methods to overcome Covid-19, and they themselves will seek to benefit from those outcomes. A zero-coronavirus approach will only work if other countries don’t seal and do not adopt the same approach (we only need to witness supply chain challenges to understand this). Maybe the ultimate free ride? ” – Morning, Hong Kong

“Sadly, even the fact that we can talk about zero Covid-19 means this is a policy, and therefore political. Of course, public health concerns are already included, but Beijing party leaders achieve zero Covid-19 outbreaks The main driver is to highlight the success of their earlier lockdowns and continue to deliver substandard vaccines. It’s hard to blame their lockdown tactics, but Covid has proven that stopping the damage to joint health and the economy from the pandemic requires more than just Brute force. Truly impressive leadership should accept that policy direction must change with changing realities, even if those realities admit that science is wrong.” — Spencer Doddington, Islington, London