MACROECONOMICS
Malaysia growth slows
Malaysia’s economic growth slowed to a “moderate” 5.6 percent in the third quarter as exports decelerated, the central bank said yesterday, but added that domestic demand was expected to support steady expansion. In the three months through September, private-sector activity “remained the key driver of growth,” while exports expanded at a “slower pace” of 1.5 percent, Bank Negara said. The latest figure compares with 6.5 percent in the previous three months and 6.2 percent in January to March.
BANKING
New bank loans fall: PBOC
Chinese banks made 548.3 billion yuan (US$89.46 billion) in new loans last month, People’s Bank of China (PBOC) data showed yesterday, missing market expectations and pointing to deepening economic weakness in the fourth quarter. Economists polled by Reuters had expected new loans totaling 650 billion yuan last month, down by nearly a quarter from 857.2 billion yuan in September. Broad M2 money supply rose 12.6 percent last month from a year earlier, the PBOC said on its Web site, trailing market expectations of 12.9 percent. Outstanding yuan loans grew 13.2 percent from a year earlier, also undershooting forecasts of 13.3 percent. China’s total social financing aggregate, a broad measure of liquidity in the economy, was 662.7 billion yuan last month, versus 1.05 trillion yuan in September.
MACROECONOMICS
Germany returns to growth
The German economy saw a modest growth of 0.1 percent in the third quarter — avoiding a technical recession after contracting slightly in the previous three-month period, official data showed yesterday. The quarter-on-quarter growth figure for the July-to-September period was in line with economists’ expectations. It followed a contraction of 0.1 percent in the April-to-June period, a figure that was revised from the initial reading of 0.2 percent. Household spending and exports supported the economy in the third quarter, but investment in machinery and construction declined, the Federal Statistical Office said.
AVIATION
Airbus profit tumbles
Airbus says its net profit slumped in the third quarter as it delivered more of its loss-making A380 superjumbos. The European jet maker reported net profit of 264 million euros (US$328 million) in the July-to-September quarter, down 41 percent from the 445 million euros posted a year earlier. Airbus delivered nine of its A380 superjumbo jets in the quarter, up from four a year earlier. In a statement yesterday, Airbus also said that its A400M military transport aircraft program is being reviewed due to “negative cost and risk evolution,” and that the financial impact would be disclosed in its full-year accounts.
RETAIL
Wal-Mart beats expectations
Wal-Mart Stores Inc eked out a rare gain in an important sales measurement during the third quarter as it reported profits that beat Wall Street expectations on Thursday. However, the world’s largest retailer issued a fourth-quarter profit outlook that missed estimates because of expected holiday discounting. The quarter also marked two full years of traffic declines at US Wal-Mart stores. The company reported earnings of US$3.71 billion, or US$1.15 per share, for the three months that ended Oct. 31. The company posted revenue of US$119 billion in the period, beating Wall Street forecasts. Analysts expected US$118.35 billion.
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day
Thousands of parents in Singapore are furious after a Cordlife Group Ltd (康盛人生集團), a major operator of cord blood banks in Asia, irreparably damaged their children’s samples through improper handling, with some now pursuing legal action. The ongoing case, one of the worst to hit the largely untested industry, has renewed concerns over companies marketing themselves to anxious parents with mostly unproven assurances. This has implications across the region, given Cordlife’s operations in Hong Kong, Macau, Indonesia, the Philippines and India. The parents paid for years to have their infants’ cord blood stored, with the understanding that the stem cells they contained