UNITED STATES
Q2 growth tops expectations
The economy grew faster than originally thought in the second quarter of this year, with Department of Commerce figures released on Thursday showing a 1.4 percent annual rate. The department’s previous second-quarter GDP estimate had been a gloomier 1.1 percent. However, Thursday’s figures surpassed an analyst consensus, which had called for a revision to 1.3 percent. Job markets also showed signs of continued strength as the Department of Labor on Thursday reported that unemployment claims remained low in the week ending on Saturday last week, coming in at 254,000.
MEXICO
Bank of Mexico raises rate
The central bank has raised its inter-bank interest rate a half-point to 4.75 percent, seeking to shore up a weak peso and prevent a rise in inflation. The Bank of Mexico on Thursday said in a statement that prospects for global growth continue to suggest a moderate rate of economic activity. It said growth forecasts for advanced economies have been reduced. The bank said it foresees continued risk of greater volatility in financial markets, especially if there is increased “nervousness derived from the possible consequences” of the US election. It added that the implications for Mexico “could be particularly important.”
BRAZIL
Tax income continues to fall
Tax collection plunged more than expected in August, frustrating economists who forecast government revenue had started to rebound along with the economy. The government collected 91.8 billion reais (US$28.16 billion) in taxes in August, the worst performance for that month since 2009. It was also less than the 107.4 billion reais obtained in July and less than the 95 billion reais expected by economists in a Bloomberg survey. The economy is expected to expand by 1.3 percent next year after a contraction of more than 3 percent this year, according to the latest central bank survey of about 100 economists.
BANKING
KCB in digital payment talks
KCB Group Ltd, Kenya’s biggest bank by assets, is in talks with companies including Facebook Inc, Apple Inc and Alibaba Group Holding Ltd (阿里巴巴) about collaborating on digital payments through its new financial technology unit, CEO Joshua Oigara said. The discussions, which are also being held with Alphabet Inc and Tencent Holdings Ltd (騰訊), form part of the lender’s efforts to double the number of customers on its mobile phone platform to 20 million by the end of next year, Oigara said in an interview on Wednesday. The unit, known as KCB Fintech, is to officially begin operations in June next year, he said. The subsidiary will “partner with different players, whether it is M-Pesa, Facebook, Google, Apple, and that business will have a new digital payments platform,” he said.
RETAIL
Costco profit beats estimates
Costco Wholesale Corp reported fourth-quarter earnings that beat analysts’ estimates, even as falling grocery prices cut into its sales growth. Profit amounted to US$1.77 per share in the period, which ended on Aug. 28, the Issaquah, Washington-based company said in a statement. Analysts had estimated US$1.73 per share, according to data compiled by Bloomberg. The chain’s same-store sales — a closely watched measure — rose 3 percent when gas and foreign exchange fluctuations are excluded. Total revenue totaled US$36.6 billion, just shy of the US$36.9 billion that analysts estimated.
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