Indonesia ready for war
Indonesia stands ready to respond to global risks brought about by an intensifying trade war and rising US interest rates that have driven the nation’s currency to a two-decade low, officials said. The government would coordinate its policy response with the central bank and the financial services authority, Minister of Finance Sri Mulyani Indrawati told reporters in Jakarta yesterday. Bank Indonesia will take steps to stabilize the currency and ease volatility, central bank Governor Perry Warjiyo said. The rupiah was headed for a 1.8 percent loss this week.
German orders rebound
New orders for industrial firms booked a strong rebound in August from a slip in July, official data showed yesterday, brightening the outlook for the second half of the year. Companies reported a 2 percent month-on-month increase in new business, adjusting for price, seasonal and calendar effects, federal statistics authority Destatis said in a statement. That was well above the 0.6 percent boost forecast by analysts.
Inflation near decade high
Inflation jumped to an almost 10-year high last month, data showed yesterday, putting pressure on President Rodrigo Duterte to act as the cost of food and fuel hits the country’s poor in the pocket. Consumer price increases accelerated to 6.7 percent, from 6.4 percent in August, in the steepest climb since February 2009, the Philippine Statistics Authority said. That compared with a 6.8 percent median forecast of economists in a Bloomberg survey.
Central bank maintains rate
The central bank kept its key rate unchanged, saying that while it expects faster inflation to be transitory, the board would take the necessary actions to ensure its goal for prices is reached. Policymakers at Banco de Mexico, led by Governor Alejandro Diaz de Leon, kept borrowing rates at 7.75 percent on Thursday, the highest in almost 10 years, as forecast by 26 of 28 economist surveyed by Bloomberg.
Toyota recalls 2.4m hybrids
Japanese car giant Toyota Motor Corp yesterday said that it is recalling more than 2.4 million hybrid cars over a fault that could cause crashes, just a month after an another recall affecting hybrids. The firm last month said it was recalling more than 1 million hybrid cars globally after uncovering a technical problem that could cause fires. The latest recall affects several models of Toyota’s Prius and Auris hybrid vehicles produced between October 2008 and November 2014, with more than 1 million of the affected cars in Japan.
KRR sells Vietnam stake
KKR & Co raised about US$209 million selling its stake in Vietnamese conglomerate Masan Group Corp, people with knowledge of the matter said, after its shares doubled since the private equity firm invested. KKR sold 54.8 million Masan shares at 89,200 dong apiece, the midpoint of a marketed range, the people said. The price represents a 5 percent discount to Masan’s last close. The shares were offered at 87,800 dong to 90,600 dong each, according to terms for the deal obtained by Bloomberg earlier.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone