TURKEY
Lira falls against greenback
The lira fell amid worries that policymakers are not acting fast enough to put a lid on inflation. The US dollar gained as much 2.7 percent against the lira to US$6.7134, ahead of data expected to show consumer prices last month surging 17.6 percent from a year earlier. The central bank, which is to set rates on Thursday next week, has an official inflation target of 5 percent. While policymakers have raised borrowing costs by 700 basis points, that has not been enough to shield the lira from a currency rout that seen it shed more than 40 percent of its value against the US dollar this year.
MANUFACTURING
Unsold goods pile up
Companies in the eurozone are starting to see unsold goods pile up on factory floors after renewed concerns over trade prospects throttled order growth to its slowest pace in two years. A Euro-area purchasing managers’ index for manufacturing last month dropped to 54.6 from 55.1 in July, IHS Markit said on Monday. The report came amid threats by US President Donald Trump to tear up an agreement with the EU to work toward a new trade order without escalating protectionism. “The business mood has become more unsettled during the summer,” IHS Markit chief business economist Chris Williamson said. Risks of new tariffs are hurting sentiment, and “the expansion is looking increasingly uneven.”
PAYMENT SERVICES
Policymaker calls for cards
European Central Bank policymaker Yves Mersch called on Europe to develop its own global card payment services to compete with international peers and as a defense against any further escalation in geopolitical tension. Noting the dominance of California-based PayPal for online payments, as well as the services offered by Alphabet, Apple, Facebook and Amazon, Mersch said that European providers, such as Germany’s Girocard and France’s Cartes Bancaire, are too nationally focused. European banks seemed to have “surrendered” much of the business, with the strong regulatory framework in the EU “exploited” by multinationals, Mersch said.
BEVERAGES
Brewer gets ‘cheapest name’
Thai Beverage PLC has earned the title of the world’s “cheapest alcohol name” at Goldman Sachs, as the Bangkok-based brewer is now the worst performer in its consumer stocks coverage. Still, analysts say a turnaround in its operations next year will give the stock a nice lift. Since losing S$7.3 billion (US$5.3 billion) this year, ThaiBev now trades at 14.9 times of future earnings — below its 10-year average — while the MSCI World Beverages Index trades at 20.1 times, according to data compiled by Bloomberg.
INDONESIA
Rupiah may hit 15,000
Analysts say the rupiah, the currency of Southeast Asia’s biggest economy, is set to breach the level of 15,000 per US dollar for the first time since the depths of the Asian financial crisis in 1998. The rupiah yesterday slid as low as 14,782 as the nation’s trade deficit and reliance on oil imports render it vulnerable to the emerging-market selloff triggered by financial turmoil in Turkey and Argentina. “Fifteen thousand is the next psychological level the rupiah may breach,” said Nick Twidale, chief operating officer at Rakuten Securities in Sydney. The rupiah has tumbled more than 6 percent in the past three months.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
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COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
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