ALAYSIA
Policy rate raised to 3%
Bank Negara Malaysia yesterday unexpectedly raised its benchmark interest rate by a quarter point, as it sought to pre-emptively ward off any risk of future financial imbalance amid lingering price pressures. The central bank hiked the overnight policy rate to 3 percent, a move predicted by just three out of 19 economists in a Bloomberg survey. “The balance of risk to the inflation outlook is tilted to the upside and remains highly subject to any changes to domestic policy including on subsidies and price controls, financial market developments, as well as global commodity prices,” it said in a statement.
TURKEY
Inflation slows, but still high
Inflation slowed below 50 percent for the first time in more than a year, with risks for price stability rising as the country goes to the polls in less than two weeks. Consumer prices grew an annual 43.7 percent last month, down from 50.5 percent in March, official data showed yesterday. Core inflation — which strips out volatile items such as energy and food — was an annual 45.5 percent, down from 47.4 percent in March. While slowing slightly more than expected by economists in a Bloomberg survey, inflation is now forecast to plateau at about 44 to 45 percent for the rest of the year.
AUSTRALIA
Retail sales rise further
Retail sales rose for a third straight month in March, driven primarily by food inflation, as household spending begins to cool under the weight of the Reserve Bank of Australia’s aggressive interest rate increases. Sales advanced 0.4 percent from a month earlier, compared with a forecast 0.2 percent gain, Bureau of Statistics data showed yesterday. Every category outside of food and eating out recorded a decline. The result suggests consumers are beginning to hunker down in the face of rising borrowing costs, in line with the central bank’s aim.
AIRLINES
Lufthansa upbeat on profits
Deutsche Lufthansa AG yesterday said it expected earnings to rise above pre-COVID-19 pandemic levels in the second quarter as air travel continues to recover, putting the carrier closer to achieving its longer-term profit goals. Adjusted earnings before interest and taxes this quarter are forecast to surpass the 754 million euros (US$833 million) achieved in the same period in 2019, Europe’s biggest airline group said in a statement. Lufthansa said summer flights to Spain are particularly popular, with demand for city breaks, a favorite among Europeans before COVID-19 struck, recovering significantly, despite inflation squeezing disposable incomes.
AUTOMAKERS
Stellantis beats forecasts
Stellantis NV’s first-quarter sales climbed more than expected thanks to strong vehicle prices and higher shipments of models like the Jeep Compass. Revenue rose 14 percent to 47.2 billion euros, ahead of analysts’ expectations of 45.8 billion euros, the maker of Ram pickups and Fiat cars said yesterday. The company reaffirmed full-year guidance for a double-digit adjusted operating income margin and positive industrial free cash flow. Stellantis, which has been battling logistics snags, particularly in Europe, said new vehicle inventory was at 1.3 million at the end of March, reflecting a return to more normal levels. Shipments during the quarter rose 7 percent after the availability of semiconductors improved.
MULTIFACETED: A task force has analyzed possible scenarios and created responses to assist domestic industries in dealing with US tariffs, the economics minister said The Executive Yuan is tomorrow to announce countermeasures to US President Donald Trump’s planned reciprocal tariffs, although the details of the plan would not be made public until Monday next week, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. The Cabinet established an economic and trade task force in November last year to deal with US trade and tariff related issues, Kuo told reporters outside the legislature in Taipei. The task force has been analyzing and evaluating all kinds of scenarios to identify suitable responses and determine how best to assist domestic industries in managing the effects of Trump’s tariffs, he
TIGHT-LIPPED: UMC said it had no merger plans at the moment, after Nikkei Asia reported that the firm and GlobalFoundries were considering restarting merger talks United Microelectronics Corp (UMC, 聯電), the world’s No. 4 contract chipmaker, yesterday launched a new US$5 billion 12-inch chip factory in Singapore as part of its latest effort to diversify its manufacturing footprint amid growing geopolitical risks. The new factory, adjacent to UMC’s existing Singapore fab in the Pasir Res Wafer Fab Park, is scheduled to enter volume production next year, utilizing mature 22-nanometer and 28-nanometer process technologies, UMC said in a statement. The company plans to invest US$5 billion during the first phase of the new fab, which would have an installed capacity of 30,000 12-inch wafers per month, it said. The
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
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