INFRASTRUCTURE
China to invest US$158bn
An estimated 55 infrastructure projects announced by China this week could require investment of more than 1 trillion yuan (US$158 billion), state media said yesterday. The China Securities Journal said the figure was a “conservative estimate” for spending on projects announced on Wednesday and Thursday by the top economic planner, the National Development and Reform Commission. On Wednesday, the commission announced it had approved 25 new urban railway projects, including subways and light railways in 18 cities across China, at more than 800 billion yuan. The commission on Thursday also unveiled another 30 infrastructure works — including 13 highway projects, 10 waste treatment projects and seven port or waterway projects — but gave no value.
TRADE
France’s deficit shrinks
France’s trade deficit narrowed to 4.27 billion euros (US$5.4 billion) in July from 6.07 billion euros in June, the customs office said in an e-mailed statement. Exports rose 0.8 percent from the previous month to 36.58 billion euros, while imports fell 3.5 percent to 40.85 billion euros. For the first seven months of the year, the deficit narrowed 10.5 percent from a year ago to 40 billion euros.
TRADE
German exports up in July
The Federal Statistical Office said German exports inched up unexpectedly in July despite weakening demand within the eurozone, where several countries are in recession. Exports rose 0.5 percent in July from the previous month to 92.9 billion euros, while imports rose 0.9 percent to 76.8 billion euros over June, figures adjusted for seasonal and calendar variations showed yesterday. Economists had been predicting both to drop slightly. From January to July, total exports were up 5.4 percent over the same period last year to 644.1 billion euros. While exports to countries using the euro dipped 0.6 percent, exports to the EU overall rose 1.2 percent.
INFLATION
Britons expect smaller rise
Britons’ expectations for inflation fell last month as officials struggled to pull the economy out of a double-dip recession. Consumers anticipated prices would increase 3.2 percent in the coming 12 months, down from a prediction of a 3.7 percent gain in May, the Bank of England said in a quarterly survey published in London yesterday. A measure of net satisfaction with the way the bank is doing its job fell to the lowest on record. Inflation accelerated to 2.6 percent in July from 2.4 percent in June, delaying the return to target of 2 percent forecast by policymakers. The poll of 1,929 people aged 16 or over was conducted by GfK NOP Ltd from Aug. 9 to Aug. 14.
TIMBER
Russia, China invest in RFP
China and Russia’s sovereign wealth funds’ joint US$2 billion investment pool will invest about US$200 million in a timber processing company in Russia. The investment in RFP Group, Russia’s second-largest forestry products company, was announced yesterday by Russian Direct Investment Fund (RDIF) chief executive Kirill Dmitriev yesterday at the APEC summit in Vladivostok, Russia. RDIF and China Investment Corp (中國投資公司) contributed US$1 billion each to the joint fund, which plans to put 70 percent of its money in Russia and 30 percent in China.
Ryanair, Transavia, Volotea and other low-cost airlines are feeling the financial pain from high jet fuel prices as a result of the Middle East war and are cutting flights. The closure of the Strait of Hormuz has taken a huge chunk of oil supplies off the market, sending the price of jet fuel soaring and triggering fears of shortages that could force airlines to cancel flights. Airlines are not waiting for a lack of supplies to react. “Travel alert: Airlines are cutting thousands of flights right now,” Travel Therapy host Karen Schaler said in an Instagram reel this past weekend.
MANAGING RISKS: Taiwan has secured LNG sufficient to cover 95 percent of electricity demand for next month, UBS said, describing the government’s approach as proactive UBS Group AG has raised its forecast for Taiwan’s economic growth this year to 8 percent, up from 6.9 percent previously, and said expansion could reach as high as 8.6 percent if external energy shocks are avoided. The upgrade reflects a stronger-than-expected first-quarter performance and sustained momentum in artificial intelligence (AI)-driven exports, which UBS said are providing a firm foundation for growth despite geopolitical and energy risks. Taiwan’s GDP expanded 13.69 percent year-on-year in the first quarter, the fastest growth since the second quarter of 1987, the Directorate-General of Budget, Accounting and Statistics (DGBAS) reported on Thursday. On a seasonally
The Fair Trade Commission’s (FTC) ongoing review of Grab Holdings Ltd’s US$600 million acquisition of Foodpanda Taiwan’s operations, announced on March 23, has taken on fresh urgency as industry experts warn that the transaction could embed significant Chinese cybersecurity vulnerabilities into Taiwan’s digital infrastructure through Grab’s deep ties to autonomous-driving firm WeRide (文遠知行). Less than 16 months after the FTC blocked Uber Eats’ direct attempt to acquire Foodpanda Taiwan — citing potential combined market shares of 80 to 90 percent — the emergence of Grab as the buyer has prompted questions about whether the same competitive harm is simply being rerouted
The list of Asian stocks that benefit from business partnership with Nvidia Corp is getting longer, as the region further integrates into the artificial intelligence (AI) chip giant’s business ecosystem. Just in the past week, South Korea’s LG Electronics Inc, Taiwan’s Nanya Technology Corp (南亞科技), as well as China’s Huizhou Desay SV Automotive Co (德賽西威) and Pateo Connect Technology Shanghai Corp (博泰車聯) have become the latest to rally on news of tie-ups, supply-chain participation or product collaboration with the US chip designer. Asian suppliers account for about 90 percent of Nvidia’s production costs, up from about 65 percent last year, data compiled
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