Wages in Australia grew at their fastest annual pace in a decade in Q1 2008, with the wage price index up 0.8% on the quarter, although this missed expectations for a 0.9% increase, the Australian Bureau of Statistics has said. Annual pay growth rose to 3.7%, compared with revised growth of 3.4% the previous quarter. However, with the central bank already hiking rates 375 basis points to an 11-year high of 3.85%, analysts believe it is unlikely policymakers will increase interest rates.
The Airbus A320neo planes in the Singapore Airlines group powered by Pratt & Whitney engines are not being grounded for lack of spares, said Leslie Thng, the CEO of Scoot. His remarks on the subject came during an earnings call for Singapore Airlines, which announced positive results for 2019-20. The Pratt engines were in the news this month due to Go Airlines' bankruptcy, blamed on "faulty" power units. While Pratt denies any allegations of engine issues, IBA Aviation said earlier this month that 12% of neos with Pratt GTF engines were inactive, compared with 4% of those with rival engines made by CFM International.
Tracking the decline in other Asian currencies, the Indian rupee hit a more-than-six-week low against the U.S. dollar, reaching 82.4425. However, it recovered by the close, ending up 0.21% at 82.38. The decline in currencies including the rupee has been caused by data showing China's post-Covid recovery losing steam, said Dilip Parmar, research analyst at HDFC Securities. While the RBI wishes to replenish forex reserves, Goldman Sachs says it is unlikely that appreciation pressures on the rupee will rise.
While US supply chains are recovering from the disruption brought on by the Covid-19 pandemic, material shortages and hiring difficulties are continuing to cause problems. Rates for trucking and ocean shipping dropped significantly when consumers changed their spending habits during lockdown, but certain sectors are still struggling due to labor shortages and a lack of machine parts and cement. The effects of these shortages are being felt by automakers and others who are trying to keep up with demand.
Online fashion retailer Shein has raised $2bn in its latest funding round, valuing the company at $66bn. The company's valuation is a third less than it was a year ago. According to people close to the matter, the share sale attracted interest from both existing and new investors. The new fundraising comes as Shein benefits from a global shift towards online shopping amid the pandemic. The brand, known for its fast fashion and low prices, has become popular with young consumers, particularly in the US. However, it has come under fire for its environmental impact and labour practices, with allegations that its garments are made in sweatshops in developing countries.
Climate Asset Management appoints Berg as chief executive
Reuters
23-05-17 09:11
Climate Asset Management (CAM) has appointed Martin Berg as CEO, effective 1 May, replacing Christof Kutscher, who will advise the firm. The joint venture between HSBC’s fund arm and investment and advisory outfit Pollination is focused on “natural capital” and invests in projects that help restore biodiversity and boost the supply of carbon credits. CAM raised $650m in December and manages Apple’s Restore Fund, which invests in projects that remove carbon emissions from the atmosphere. Berg previously worked at the European Investment Bank and Bank of America Merrill Lynch.
India’s Zydus Wellness Q4 profit margins have been affected by higher costs that have outweighed higher sales data. Although sales rose 11.8% to INR 7.1bn ($109m), a 7.8% increase in effective price sold has helped overcome inflationary pressures, however, the company saw an increase in total expenses which caused profit-before-tax margins to fall to 17.8% from 20.7% from a year earlier. Its net profit margins also edged lower, to 20.5% from 21%.
The proposed acquisition of Asiana by Korean Air may restrict competition in air transport services between Europe and South Korea, according to the European Commission. The commission confirmed it had sent a statement of objections complaining that the deal may reduce competition in passenger transport services on four routes between South Korea and France, Germany, Italy and Spain, and in cargo transport services between all of Europe and South Korea. Korean Air said it would continue to talk to the commission.
India's GlaxoSmithKline Pharma's pre-tax profit falls on govt pricing caps
Reuters
23-05-17 13:31
GlaxoSmithKline Pharmaceuticals has reported an 8.6% fall in its pre-tax profit for Q4 2017, citing the Indian government’s curbs on some essential drug pricing as the source of its issues. The Indian arm of GSK stated that its profit before tax fell from INR 2.08bn ($32.04m) to INR 1.9bn for the quarter ending on 31 March. The maker of Augmentin antibiotic and T-Bact ointment also saw its revenue from operations fall 2.7% to INR 7.87bn during the period.
Whirlpool of India reported a 25% drop in quarterly profit for the fourth quarter due to weak demand for its air conditioners, leading to declining sales and lower profitability. The company reported a consolidated net profit of INR626.8m ($7.7m) versus INR838.2m for the same period a year ago. Meanwhile, total revenue fell 2% to INR16.73bn, missing analysts' estimates of INR18.12bn and logging a second quarter of decline, while total costs rose 1% to INR16.25bn.
Future Retail Ltd has received bids from six applicants as part of its insolvency resolution process. The Indian retail company, which was once the country's second-largest retailer, defaulted on loans and entered bankruptcy proceedings after its lenders rejected a $3.4bn buyout by Reliance Retail due to a legal challenge by Amazon.com, Inc. The names of the bidders have not been disclosed. A total of 49 parties were interested in acquiring Future Retail in April.
Most Gulf stock markets rose despite concerns over the U.S. government's debt-ceiling negotiations. In Saudi Arabia, the benchmark index gained 0.6%, whereas the Qatari index outperformed the region to finish 2% higher. Emirati markets rose, with Dubai rising 1.6% after four sessions of losses and Abu Dhabi rising 0.5%. In Egypt, the blue-chip index declined, with international investors continuing to be sellers due to global concerns and a declining risk appetite.
House Speaker Kevin McCarthy believes a deal to raise the US debt ceiling limit is possible by Sunday, the day President Joe Biden has scheduled a news conference on the issue. McCarthy stated the deal is "do-able," potentially averting a default that could have severe worldwide consequences.
Russia's economy shrank 1.9% YoY in Q1 2015, following growth of 3% in the same period last year. The economy defied expectations of a double-digit collapse in 2014, but still contracted 2.1% after the West imposed sanctions in response to Moscow despatching troops to Ukraine in February. Blunting the impact of sanctions are rising military production and huge state spending, allowing Moscow to plough on with what it calls its "special military operation" in Ukraine. The International Monetary Fund is among those that are forecasting growth in 2016, although it expects global isolation and lower energy revenues to dampen Russia's economic growth prospects for years to come.
Asian investors are eyeing several significant economic indicators from Japan and Australia on Thursday, as well as an interest rate decision from the Philippines. However, the main hope for a rebound in Chinese markets could be the prospect of a US deal on the federal debt ceiling, which has boosted stocks and the dollar. The mettle of that claim may be tested, however, after the poorest set of Chinese economic indicators in over six months caused a 1% decline on Wednesday. Nonetheless, Japan is on a high after Q1 GDP growth outperformed expectations and the Nikkei rose over 30,000 points for the first time in 20 months.
US politicians' apparent willingness to reach a deal on raising the debt ceiling and avert a default is giving investors confidence. MSCI's broadest index of Asia-Pacific shares increased by 0.78% on Thursday, the Nikkei index hit a 20-month peak of 30,667.13 and Hong Kong's Hang Seng climbed by 0.93%. Despite the optimism, analysts remain cautious due to historic last-minute decision making and treasury having "almost run through all of its authorised extraordinary measures to keep paying the bills". The US debt ceiling issue has taken priority in the markets, over mixed economic data releases and the outcome of the Federal Reserve’s minutes.
New Zealand has predicted a budget deficit of NZD 6.96bn ($4.84bn) for the year to the end of June 2023, which is worse than its previous forecast and is caused by a shrinking tax base, slowing economy, and higher inflation. Meanwhile, bond issuance has gone up by NZD 20bn to NZD 128bn, which is expected to fund the government's infrastructure programme as well as its rising debt. Furthermore, it will be the last budget before a close-run general election in October.
Indian shares are poised to open higher today on the back of renewed optimism over progress in US debt ceiling negotiations. Indian equities have enjoyed a positive performance this week amid sustained foreign buying of domestic equities, the longest daily buying streak since December 2020. There are several notable quarterly earnings reports from companies including State Bank of India, ITC, GAIL (India) and Interglobe Aviation scheduled for release today.
The US dollar has remained near a seven-week peak as President Joe Biden and Kevin McCarthy, the top congressional Republican, work towards avoiding a US debt default. There were positive signs of progress as the two leaders underscored their determination to raise the government's $31.4tn debt ceiling. However, caution still remains in the markets. The Australian dollar fell after disappointing jobs data was released, as well as the euro which was pressured near an over six-week low of $1.0841. Meanwhile, sterling fell to a three-week low in the previous session.
Hua Hong Semiconductor's $2.6 billion China listing approved by exchange
Reuters
23-05-18 01:57
Hua Hong Semiconductor has received approval from the Shanghai Stock Exchange to list on its STAR Market in a deal worth $2.6bn. The listing is expected to be one of China's largest this year. Hua Hong Semiconductor has said it plans to raise up to CNY18bn ($2.6bn) to fund investment and innovation. It joins a number of Chinese chipmakers who have listed in Hong Kong amid rising tensions between the US and China over restrictions on exports to Beijing's semiconductor industry.
