Live Streaming
Program Highlight
Company Profile
International News (6893)
July
Following Xi-Biden call, Taiwan to deepen close security partnership with U.S.
Written by Nur Yasmin
Taiwan's foreign ministry said on Friday that it will continue to deepen its close security partnership with the United States, after U.S. President Joe Biden and China's leader Xi Jinping spoke on Thursday.
In the call, Xi warned the U.S. against playing with fire over Taiwan, highlighting Beijing's concerns about a possible visit to the Chinese-claimed island by U.S. House Speaker Nancy Pelosi. (Reuters)
July
New Zealand consumers, businesses gloomy, economic risks grow
Written by Nur Yasmin
New Zealand is at growing risk of sliding into a recession in the second half of 2022, some economists said on Friday, as consumers and businesses fret over soaring prices and rising borrowing costs.
New Zealand's central bank is part way through an aggressive cash rate hiking cycle in an effort to curtail inflation, which has shot to three-decade highs.
Although the ANZ–Roy Morgan's consumer confidence index released on Friday rose slightly in July, it remains near record lows.
The findings showed people were now more pessimistic than during the 2008/09 financial crisis when the cash rate was roughly four times what is now, or at the start of the COVID-19 pandemic.
"Weak global consumer confidence is a global phenomenon. It’s hard to overstate how much people hate inflation. The rapid rise in interest rates won't have helped either," said ANZ economist Finn Robinson in a statement following the release of the confidence survey.
But, he said that sentiment did not yet seem to have translated into lower spending, likely due to the tight jobs market and indications prices are rising.
Thursday’s ANZ Business Outlook survey was just as gloomy, although it remains off lows seen at the start of the pandemic. The construction sector was particularly soft, with residential construction intentions dropping significantly.
Economists say that weakness in the data is painting a picture of a softer second half as higher interest rates start to flow through to actual spending, hiring, and building activity.
ASB Bank said it was not yet forecasting a recession, but the direction of risk was clear, with the outlook in the second half of 2022 looking soft.
"For each month that goes by in which firms' activity expectations remain negative, the odds of recession creep up," it said. (Reuters)
July
Some Asia economies may need rapid rate hikes to cool inflation - IMF
Written by Nur Yasmin
Several Asian central banks must raise interest rates rapidly, because inflationary pressures are rising due to a global surge in food and fuel costs caused by the war in Ukraine, said a senior International Monetary Fund (IMF) official.
"Asia's growing inflation pressures remain more moderate compared with other regions, but price increases in many countries have been moving above central bank targets," Krishna Srinivasan, director of the IMF's Asia and Pacific Department, wrote in a blog published on Thursday.
"Several economies will need to raise rates rapidly as inflation is broadening to core prices, which exclude the more volatile food and energy categories, to prevent an upward spiral of inflation expectations and wages that would later require larger hikes to address if left unchecked," he said.
Most emerging Asian economies had experienced capital outflows comparable to those in 2013, when global bond yields spiked on hints by the U.S. Federal Reserve that it might taper bond buying sooner than expected, Srinivasan said.
Outflows had been especially large for India, which had seen $23 billion move out since Russia's invasion of Ukraine, he wrote. Outflows had also been seen in such economies as South Korea and Taiwan.
Tightening monetary conditions would strain already worsening finances in some Asian economies, and limit the scope for policymakers to cushion the economic blow from the pandemic with fiscal spending.
Asia's share of total global debt had increased from 25% before the global financial crisis to 38% post-COVID, raising the region's susceptibility to changes in global financial conditions, Srinivasan said.
Some Asian countries might need to tap measures such as foreign exchange interventions and capital controls to combat any sharp outflow of funds, he added. (Reuters)
July
World Bank has no new financing plans for crisis-hit Sri Lanka
Written by Nur Yasmin
The World Bank does not plan to offer new financing to Sri Lanka, which is battling its worst economic crisis in decades, until the Indian Ocean nation has an adequate macroeconomic policy framework in place, the lender said on Thursday.
In a statement, the World Bank said Sri Lanka needed to adopt structural reforms that focus on economic stabilisation and tackle the root causes of its crisis, which has starved it of foreign exchange and led to shortages of food, fuel and medicines.
"The World Bank Group is deeply concerned about the dire economic situation and its impact on the people of Sri Lanka," it said.
The bank is repurposing resources under existing loans to help alleviate shortages of essential items such as medicine, cooking gas, fertiliser, meals for children and cash for vulnerable households, it added.
The bank said it was working closely to establish control and fiduciary oversight to ensure fair distribution.
Former president Gotabaya Rajapaksa said in June that the World Bank would restructure 17 existing projects and more assistance would follow after negotiations with the International Monetary Fund on a financing loan.
Sri Lanka has been in the state of emergency since July 13 after popular protests forced Rajapaksa to flee the nation, first to the Maldives and then Singapore.
He has been replaced as president by Ranil Wickremesinghe, who was the prime minister. (Reuters)
July
Russia supports 'one China' policy on Taiwan, Lavrov says
Written by Nur Yasmin
Russia supports Beijing's "One China" policy on the issue of Taiwan, Foreign Minister Sergei Lavrov said on Friday after Chinese President Xi Jinping warned U.S. President Joe Biden not to play with fire over the island.
"Our position on the existence of only one China remains unchanged," Lavrov told reporters in Tashkent. "We have no problem with upholding the principle of China's sovereignty."
Beijing has issued escalating warnings about repercussions should House Speaker Nancy Pelosi visit Taiwan, which says it is facing increasing Chinese military and economic threats. (Reuters)
July
Indonesia, U.S. to hold military exercise amid heightened Indo-Pacific tensions
Written by Nur Yasmin
Some 4,000 soldiers mostly from Indonesia and the United States will conduct a joint military exercise next week that underscores "the importance we place on a free and open Indo-Pacific region," a senior U.S. military official said on Friday.
The annual "Super Garuda Shield" exercise, which the United States called "significantly larger in scope and scale than previous exercises", comes against a backdrop of heightened tensions with China over the latter's growing assertiveness in the region.
But Major General Stephen G. Smith, who will be directing operations on the ground in the exercise, told reporters in Jakarta on Friday that the drill should not be seen as a response to any tensions.
"This exercise is not a threat or should not be viewed as a threat to anybody, anywhere. This is a purely military-to-military exercise," he said.
Tensions and rhetoric flared this week amid reports that U.S. House Speaker Nancy Pelosi planned to visit Taiwan as soon as August. But U.S. President Joe Biden and his Chinese counterpart Xi Jinping managed largely to steer clear of escalation in a call on Thursday, suggesting that neither side – preoccupied with economic woes at home – wants a fresh crisis across the Taiwan Strait.
The regional exercise is set to last from Aug. 1 to 14 on the Indonesian islands of Sumatra and Kalimantan and will also involve troops from other countries including Singapore, Australia and Japan, which is joining the drill for the first time. (reuters)
July
Russia's Lavrov says Moscow will propose time for call with Blinken on prisoners
Written by Nur Yasmin
Russian Foreign Minister Sergei Lavrov said on Friday that Moscow would soon propose a time for a call with U.S. Secretary of State Antony Blinken, in which Blinken has said he wants to discuss an exchange of prisoners held in Russian and U.S. jails.
Blinken said on Wednesday that Washington had made a "substantial offer" to obtain the release of U.S. basketball star Brittney Griner and former Marine Paul Whelan, both detained in Russia.
A source said that Washington was willing to exchange convicted arms trafficker Viktor Bout, jailed in the United States, as part of such a deal.
Blinken and Lavrov have not spoken since Russia invaded Ukraine on Feb. 24. Families of the U.S. detainees have been increasing pressure on President Joe Biden, most recently in the case of two-time Olympic gold medallist Griner, who was arrested on drugs charges at a Moscow airport on Feb. 17.
Lavrov told a news conference that talks on prisoner exchanges had been taking place since a summit in Geneva last year where presidents Vladimir Putin and Joe Biden had agreed to nominate officials to look into the issue.
He said his ministry was not involved in that, but "nevertheless, I will listen to what he (Blinken) has to say".
Speaking during a trip to Uzbekistan, Lavrov said he would talk to Blinken when he returned to his office.
"It's clear this is unlikely to work out today. But in the coming days we will offer our American colleagues a convenient date," he said. (Reuters)
July
Tunisia president rejects 'interference' after Western concerns about democracy
Written by Nur Yasmin
Tunisian President Kais Saied said on Friday he rejected "any form of foreign interference", in comments after several Western countries raised concerns over Tunisia's democracy amid his increasing political control of the country.
A year after Saied moved to shut down the elected parliament and start ruling by decree, he introduced a new constitution this week that gives him far more powers and that was endorsed in a referendum on Monday.
In a meeting with his foreign minister, Saied affirmed "the independence of the national decision and his rejection of any form of interference in national affairs", a statement on the presidential Facebook page said.
The "only voice is the voice of the people", he added.
Several Western nations have expressed concern over political developments in Tunisia, notably the United States.
"Tunisia has experienced an alarming erosion of democratic norms over the past year and reversed many of the Tunisian people's hard-won gains since 2011," U.S. Secretary of State Antony Blinken said in a statement on Thursday, referring to the 2011 revolution that introduced democracy.
The European Union on Wednesday said a broad consensus among political forces including political parties and civil society was essential to preserve democracy, although it did not directly address express any concerns over Saied's new constitution or how it was passed.
Britain said it noted concerns and that "we also note the low level of participation and concerns regarding the lack of an inclusive and transparent process".
Opposition parties in Tunisia, who say Saied's actions are tantamount to a coup and will return the country to autocracy, have questioned whether the official turnout figure of 30.5% in Monday's vote was inflated, and have said there were procedural abuses and data anomalies.
Saied has said his moves were legal and were needed to save Tunisia from years of stagnation. The electoral commission, whose board he replaced this year, has said the referendum was fair. (Reuters)
July
U.S. and Japan launch economic dialogue to push back against China, Russia
Written by Nur Yasmin
Long-time allies the United States and Japan launched a new high-level economic dialogue on Friday aimed at pushing back against China and countering the disruption caused by Russia's invasion of Ukraine.
Japanese media said the so-called economic "two-plus-two" ministerial meeting in Washington was expected to agree on joint research for next-generation semiconductors to establish a secure source of the vital components.
The meeting was headed by U.S. Secretary of State Antony Blinken and Commerce Secretary Gina Raimondo and Japan's Foreign Minister Yoshimasa Hayashi and Trade Minister Koichi Hagiuda.
"As the world’s first- and third- largest economies, it is critical that we work together to defend the rules-based economic order, one in which all countries can participate, compete and prosper," Blinken told the opening session.
Blinken said recent world events, including COVID-19 and the war in Ukraine, had shown the vulnerability of critical supply chains, while a growing number of countries were struggling with debt burdens due to unsustainable and non-transparent lending practices.
"The coercive and retaliatory economic practices of the People's Republic of China force countries into choices that compromise their security, their intellectual property, their economic independence," he said.
SEMI-CONDUCTORS
Japan's Hayashi called Russia’s invasion of Ukraine a serious challenge to the international order and - in an apparent reference to China, though he did not name it directly - referred to attempts "to use economic influence unfairly and opaquely to realize... strategic interests and to modify the existing international order".
"In order to effectively deal with this, it is essential to discuss foreign policy and economic policy as a unit rather than discussing foreign policy and economic policy individually," said Hayashi.
Japan's Nikkei Shimbun newspaper said the semi-conductor development center would be set up in Japan by the end of this year to research 2-nanometer semiconductor chips.
It will include a prototype production line and should begin producing semiconductors by 2025, it said, adding that the agreement to set up the center would be included in a statement to be issued after the meeting.
Taiwan now makes a vast majority of semiconductors under 10-nanometers, used in products such as smart phones, and there is concern about stability of supply should trouble arise involving Taiwan and China, which views the island as a renegade province.
Friday's meeting comes at a time of heightened tensions over Taiwan.
On Thursday, Chinese leader Xi Jinping warned in a call with U.S. President Joe Biden against playing with fire over Taiwan, highlighting Beijing's concerns about a possible visit to the Chinese-claimed island by U.S. House Speaker Nancy Pelosi.
It also comes after the U.S. House of Representatives passed sweeping legislation on Thursday to subsidize the domestic semiconductor industry as it competes with Chinese and other foreign manufacturers. (Reuters)
July
S.Korea's new government to streamline public organisations
Written by Nur Yasmin
South Korea's new government will streamline public organisations, the finance minister said on Friday, citing concerns about efficiency after a rapid expansion in their operations under the previous administration.
The government will cut the number of employees and reduce expenses at the organisations as the first step in a planned series of reform measures, Finance Minister Choo Kyung-ho was quoted in a statement as saying at a scheduled meeting.
President Yoon Suk-yeol, who took office in May, has promised to reform the public sector and said early this month his government would aggressively cut expenditure and sell non-core assets at public enterprises.
The move came as Yoon suffers a sustained decline in approval ratings, with the latest weekly opinion poll from Gallup Korea showing on Friday his approval fell to 28% from 32% a week earlier.
Choo said a total of 350 public organisations were employing 449,000 people as of the end of May and carrying 583 trillion won ($449 billion) in combined liabilities at the end of 2021, up 34% and 17% over the past five years, respectively.
There were concerns among the general public and experts about efficiency and profitability matching the rapid expansion in scale of public organisations, he said. (reuters)