INDONESIA
Growth slower than expected
The economy expanded at a slower pace in the third quarter than economists expected, a disappointing outcome for the government as it struggles to boost growth. Gross domestic product rose 5.06 percent from a year earlier, according to data released yesterday by the Central Bureau of Statistics. The median estimate of 17 surveyed economists was for growth of 5.2 percent. The economy grew 3.18 percent from the previous quarter, just short of the economists’ estimate of 3.2 percent. “The third-quarter GDP outturn poses downside risks to our forecast of growth accelerating to 5.5 percent in the second half from 5 percent in the first half, hence our full-year 2017 GDP growth of 5.3 percent,” Nomura Holdings Inc economists Euben Paracuelles and Brian Tan said.
E-COMMERCE
NetEase ups global spending
NetEase Inc (網易科技), China’s second-largest video game publisher, is deepening a push into e-commerce with plans to increase spending on products from the US, Europe and Japan to sell to local consumers. The company’s Kaola e-commerce business is to buy about US$11 billion of inventory over the next three years from the US, Europe and Japan to woo customers with everything from Dutch baby formula to Japanese cosmetics, Kaola chief executive Zhang Lei (張蕾) said in an interview. Best known for games, including bringing global title Overwatch to the Chinese market, Netease is bolstering growth by tapping into local demand for established international brands.
GERMANY
Factory orders rise again
Factory orders unexpectedly rose for a second month, adding to signs that Europe’s largest economy is to continue expanding at a solid pace. Orders, adjusted for seasonal swings and inflation, increased 1 percent in September after an upwardly revised surge of 4.1 percent in August, Ministry for Economic Affairs and Energy data showed yesterday. The typically volatile reading compares with a median estimate for a 1.1 percent decline in a Bloomberg survey. Demand was up 9.5 percent from the previous year. The nation is on track for continued robust growth in the third quarter, the Bundesbank said, with manufacturing set to remain a “pillar” of the upswing thanks to “vigorous” export demand and an “excellent” level of orders. Strong momentum in the 19-nation euro region and the European Central Bank’s decision to extend asset purchases into next year will also support the economy.
FINANCE
Bad loans upset DBS profits
DBS Group Holdings Ltd chief executive Piyush Gupta was determined to put soured energy-industry loans behind him — even if it meant profit missing the lowest analyst estimate by a wide margin. Southeast Asia’s largest bank yesterday said it boosted bad-loan allowances more than sixfold in the third quarter, resulting in a 23 percent drop in net income to S$822 million (US$602 million). The move “will enable investors to return their focus to our operating performance and digital agenda,” Gupta said in a statement. Not sharing his optimism, investors sent the shares down the most in five weeks. Singapore banks have been struggling with rising provisions against the troubled regional oil and gas sector since Swiber Holdings Ltd filed for judicial management last year. Oversea-Chinese Banking Corp Ltd (華僑銀行) and United Overseas Bank Ltd (大華銀行) said in their quarterly reports that the energy-services industry remains under stress.
STRONG INTEREST: Analysts have pointed to optimism in TSMC’s growth prospects in the artificial intelligence era as the cause of the rising number of shareholders The number of people holding shares of chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) hit a new high last week despite a decline in its stock price, the Taiwan Depository and Clearing Corp (TDCC, 台灣集保) said. The number of TSMC shareholders rose to 2.46 million as of Friday, up 75,536 from a week earlier, TDCC data showed. The stock price fell 1.34 percent during the same week to close at NT$1,840 (US$57.55). The decline in TSMC’s share price resulted from volatility in global tech stocks, driven by rising international crude oil prices as the war against Iran continues. Dealers said
Taiwan’s natural gas supply remains stable through the end of May, despite rising concerns about potential disruptions to Qatari liquefied natural gas (LNG) supplies due to escalating conflicts in the Middle East, the Ministry of Economic Affairs said yesterday. The ministry in a statement said that Taiwan has completed preparations for natural gas supply and shipping schedules through the end of May. It has also made plans to increase natural gas imports from regions outside the Middle East in June to ensure a stable supply, it added. Taiwan sources natural gas from 14 countries and is not solely dependent on the Middle East,
China is clamping down on fertilizer exports to protect its domestic market, industry sources said, putting an additional strain on global markets that were already grappling with shortages caused by the US-Israeli war on Iran. China is among the largest fertilizer exporters — shipping more than US$13 billion of it last year — and it has a history of controlling exports to keep prices low for farmers. Shipments through the war-blocked Strait of Hormuz account for about one-third of the sea-borne supply. This month, Beijing banned exports of nitrogen-potassium fertilizer blends and certain phosphate varieties, sources said. The ban, which has not
Grab Holdings Ltd agreed to buy Delivery Hero SE’s Foodpanda operations in Taiwan for US$600 million, a deal that marks its first foray outside of its Southeast Asian base. The cash acquisition will allow Grab to expand into 21 cities across Taiwan, the Singapore-based ride-hailing and delivery company said in a statement yesterday. Grab expects the transaction to be completed in the second half, subject to regulatory approvals. The purchase will give Grab a presence on the island of about 23 million people, helping it to expand beyond its intensely competitive home market. Grab has seen growth slow dramatically as it takes
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