Market

Oil prices falls on U.S.-China tensions over Hong Kong
27May mmBy Mike TrudellNo Comments
Asia, China, Market

Oil prices falls on U.S.-China tensions over Hong Kong

Soon after U.S President Donald Trump said he was working on a strong response to China’s proposed security law in Hong Kong, oil prices took a drastic downturn on Wednesday.Brent crude fell 47 cents, or 1.3%, to $35.70 a barrel by 1106 GMT and U.S. West Texas Intermediate (WTI) crude was down 32 cents, or almost 1%, at $34.03. “As much as oil fundamentals are improving, there are still several flies in the bullish ointment. They include the latest uptick in U.S.-China tensions,” said Stephen Brennock of oil broker PVM.“The threat of a fresh U.S.-China trade war is no longer just a tail risk and could spell disaster for risk assets,” he added.Gloomy forecasts over the economic impact of the pandemic also weighed on crude prices.The euro zone economy is likely to shrink between 8% and 12% t...
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China will strengthen its policy, continue to lower lending rates: Central Bank Governor
26May mmBy Michael SmithNo Comments
Asia, China, Market

China will strengthen its policy, continue to lower lending rates: Central Bank Governor

Central bank Governor Yi Gang on Tuesday said that China will strengthen its economic policy and continue efforts to lower interest rates on loans, reinforcing expectations of further support measures to revive an economy ravaged by the coronavirus pandemic.In an interview published by the central bank, Yi said China's economic fundamentals are unchanged despite many uncertainties and reiterated that its current stance on monetary policy will be more flexible.“The People's Bank of China will use various monetary policy tools to maintain sufficient liquidity, and keep the annual growth rate of M2 money supply and social financing significantly higher than last year,” Yi said.“Since the virus outbreak, the central bank's policy measures, including bank reserve requirement cuts, relending, re...
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Cashback deals and gifts might presage damaging price war: China’s auto experts
25May mmBy Mike TrudellNo Comments
China, Market, Singapore

Cashback deals and gifts might presage damaging price war: China’s auto experts

After spending the whole of February and March in lockdown, China's auto dealerships are now offering attractive cashback offers, up to 10 free oil changes, and generous prepaid gasoline cards to woo customers out and about.And even though they are getting the job done, the industry remains worried that any momentum from demand that was locked up in February and March is expected to diminish by the end of May.After that, the outlook for consumer spending is bleak as the coronavirus pandemic continues to hammer the global economy, including China's exports.Moreover, industry executives believe the generous deals currently being offered to customers are priming the market for a return to price wars.Feng Xingya, general manager of state-owned automaker GAC which has partnerships with Toyota a...
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25May mmBy Mike TrudellNo Comments
Asia, Market, Singapore

Singapore life insurance sales rise 10% amid Coronavirus scare

While Coronavirus has destroyed many lives and economies, Singapore's life insurance industry saw new business, in terms of total weighted premiums, grow 10 per cent to $965.8 million for the first quarter from January to March 2020.A year ago, total weighted premiums amounted to $877.8 million.“This comes as more consumers took action to secure their financial future in view of Covid-19's drastic impact on the global and local markets”, said the Life Insurance Association (LIA), Singapore."However, with circuit-breaker measures, climbing unemployment and an impending recession, the life insurance industry may see the knock-on effect in the coming quarters," LIA president Khor Hock Seng said.Sales of annual-premium policies grew 3 per cent year on year, resulting in $672.4 million in total...
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As overseas markets ‘lockdown’, China exporters look inwards
25May mmBy Mike TrudellNo Comments
China, Market, Singapore

As overseas markets ‘lockdown’, China exporters look inwards

China exporters are now left in a crisis as the coronavirus hits its trading partners worldwide leading to cancelled shipments, returned goods and a dearth of new orders - accelerating a long-standing push towards domestic consumption.The world's second-largest economy is stirring back to life after virus cases dwindled from a peak in February, when activity came to a near-halt. But as China’s economy started to recover, lockdowns and restrictions in other countries has forced exporters to focus on domestic markets.Chinese online marketplace Taobao said the number of foreign trading companies opening stores on its domestic-focused platform spiked 160 percent from February to May.And policymakers - who have sought for years to wean the country off cheap exports and government spending in fa...
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PEZA reports investment performance amidst the Enhanced Community Quarantine
20May mmBy Brian ThompsonNo Comments
China, Market, USA

PEZA reports investment performance amidst the Enhanced Community Quarantine

Philippine Economic Zone Authority (PEZA) Director General Charito “Ching” Plaza on Tuesday shared the top investment promotion agency’s performance for the first quarter of 2020 amidst the enhanced community quarantine (ECQ).“PEZA’s investments continued to be challenged for the First Quarter of 2020. On top of this issue is still the continuing uncertainty posed by the rationalization of incentives under the pending legislative measures that have created uncertainties. Added to this is the current pandemic caused by the COVID-19 virus, which has caused a tremendous and immediate impact on PEZA’s export manufacturers and exporters of IT-enabled services (BPOs),” stated Plaza.“Before the declaration of the ECQ on March 16, 2020, PEZA’s total approved investments from January to February 20...
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China’s Pinduoduo to invest $200m in appliance retailer Gome
20May By Desk TeamNo Comments
Market

China’s Pinduoduo to invest $200m in appliance retailer Gome

Chinese ecommerce platform Pinduoduo announced it will subscribe to US$200 million in convertible bonds issued by Gome Retail Holding, a Beijing-based household appliance and electronics retailer. The move marks Pinduoduo’s first strategic investment after it raised US$1.1 billion in a private share placement in March to enhance its platform’s user experience. According to a statement, the strategic partnership will strengthen Pinduoduo’s position in the household appliances and electronics sector. It will also accelerate its push into the consumer-to-manufacturer space, where Pinduoduo aggregates consumer demand and preferences to help manufacturers customize their products’ designs prior to the manufacturing stage. The bonds will have a coupon rate of 5% per annum and a tenure of three y...
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18May By Desk TeamNo Comments
Market

Huawei partners with Vodafone to enter European market

With challenges arising from the upcoming devices lack the full set of Google apps and service, Chinese company Huawei has announced announced a partnership with Vodafone to bring its smartphones to the mobile carrier’s European markets. It includes Oppo, the sister brand of Vivo under Dongguan-based electronics holding company BBK. Under the deal, Oppo’s portfolio of advanced 5G handsets as well as value-for-money models will be sold into the U.K, Germany, the Netherlands, Spain, Portugal, Romania and Turkey.Last year, Vodafone has taken back Huawei phones from its U.K. 5G network following the U.S. export ban that stripped Huawei models of certain Android services. However, it can now tap Oppo’s wide range of mobile products in a heated race to sign up 5G customers.  The collaborators wi...
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Thai military slashes budgets amid backlash
17May mmBy Brian ThompsonNo Comments
Market

Thai military slashes budgets amid backlash

Thailand's armed forces have made budget cuts and suspended artillery purchases, as millions of Thais suffering from the adverse economic impact of the coronavirus outbreak await cash handouts from the government. The Thai army was the latest branch of the armed forces to slash its 2020 budget last Wednesday by about 10 billion baht (S$439 million), out of the total of 18 billion baht cut by the Defence Ministry. It also halved its planned 900 million baht procurement of more than 100 Stryker armoured infantry carriers from the United States and suspended purchases of other artillery, army spokesman Winthai Suvaree told a press briefing. "It's a high figure compared with other ministries. All the non-committal budgets have been cut," said Colonel Winthai. The government has asked each mini...
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16May By Desk TeamNo Comments
Market

Indonesia asks big internet companies to pay value-added tax on sales of digital products and services

Big internet companies have been asked by the Indonesian government to pay value-added tax on sales of digital products and services from July, a move that other countries may also adopt as they seek to boost revenues following the coronavirus pandemic.Indonesia will impose a 10% VAT on digital products sold by non-resident internet companies with a significant presence in the Indonesian market, including streaming services, applications and digital games, beginning July 1, as per a regulation published on the finance ministry's website.Earlier, Indonesian authorities had said services by streaming platforms like Spotify and Netflix would be among those subject to the new tax.  The COVID-19 pandemic has accentuated a push by governments around the world to tax internet giants, who could se...
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