Asia First - Thu 7 Aug 2025
From the opening bell across markets in Southeast Asia and China, to the biggest business interviews and top financial stories, tune in to Asia First to kick-start your business day.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
2 hours ago
- CNA
Average US tariffs top 20%, back to 1910s levels: WTO and IMF
PARIS: The average US tariff rate has risen to 20.1 per cent, its highest level since the early 1910s – except for a brief spike earlier this year, after new duties took effect on Thursday (Aug 7), data from the World Trade Organization (WTO) and International Monetary Fund (IMF) showed on Friday. The figure is far above the 2.4 per cent average in place when President Donald Trump took office on Jan 20, 2017. Trump's April 2 announcement of 'reciprocal' tariffs on the United States' main trading partners, followed by further increases on Chinese goods, briefly drove the average rate to 24.8 per cent in May, a figure last seen in 1904, according to the United States International Trade Commission. A trade truce later eased the record tariff levels between Washington and Beijing, but that arrangement is set to expire next week. TRADE DEALS AND NEW DUTIES The WTO and IMF calculations factor in recent US trade agreements with the European Union, Japan, South Korea and other nations, which have now taken effect. The figures also include the latest US tariffs applied to Brazil, Canada and imports of semi-finished copper. These agreements generally imposed lower tariffs than those threatened by Trump in April, but were still higher than the baseline 10 per cent rate introduced earlier in his administration. RATES AT HISTORIC HIGHS The updated average exceeds the nearly 20 per cent rate the United States imposed in the 1930s – an era of protectionism that economists widely believe deepened and prolonged the Great Depression. However, the WTO and IMF stressed that the rate is based on 2024 trade volumes. Actual impacts may differ, as companies have already altered behaviour by stockpiling goods, delaying purchases or shifting suppliers to avoid higher duties. According to the Budget Lab at Yale University, once changes in consumption patterns and knock-on effects are considered, the effective rate could drop to about 17.7 per cent – unless Trump imposes further duties.
CNA
2 hours ago
- CNA
Indian PM Modi says he had ‘good' conversation with Putin
NEW DELHI: Indian Prime Minister Narendra Modi said on Friday (Aug 8) that he had "a very good" conversation with Russian President Vladimir Putin, during which they discussed Ukraine and ways to strengthen bilateral ties. The call came as Modi, leader of the world's most populous nation and its fifth-largest economy, faces difficult decisions over New Delhi's purchase of Russian oil. US President Donald Trump has given India, one of the world's largest crude oil importers, three weeks to find alternative suppliers or face new import tariffs of 50 per cent, up from the current 25 per cent. "Had a very good and detailed conversation with my friend President Putin. I thanked him for sharing the latest developments on Ukraine," Modi posted on social media. "I look forward to hosting President Putin in India later this year." OIL IMPORTS UNDER PRESSURE Buying Russian oil has saved India billions of dollars on import costs, keeping domestic fuel prices relatively stable, but that benefit is now under threat because of Trump's tariffs. The oil purchases are a key source of revenue for Moscow's war in Ukraine. Russia is also one of India's top arms suppliers, and the warm ties between the two countries date back to the Soviet era. Putin last visited India in December 2021. The Kremlin has criticised calls to "force countries to sever trading relations" with Russia as "illegitimate", without directly mentioning Trump. Putin also met India's national security adviser Ajit Doval in Moscow on Thursday, but no details were provided about their discussions. PEACEFUL RESOLUTION Ukraine's Western allies have sought to cut Russia's export earnings since Moscow launched its military assault in February 2022. However, Russia has been able to redirect energy sales away from Europe to countries including India and China. India has argued it began importing more oil from Russia because traditional supplies were diverted to Europe after the conflict began. The Kremlin has said a summit on Ukraine between Trump and Putin is planned for the coming days, although no time or venue has been announced. During his call with Putin, Modi reiterated India's consistent position of seeking a "peaceful resolution of the Ukraine conflict", a government statement said. TRADE TENSIONS WITH WASHINGTON The Indian leader, facing major political and economic consequences at home and abroad from Washington's tariff measures, has not spoken directly about Trump. However, he said on Thursday that "India will never compromise" on the interests of its farmers. Agriculture employs vast numbers of people in India and has been a key sticking point in trade negotiations with Washington. India had earlier hoped for special tariff treatment after Trump said in February that he had found a "special bond" with Modi.
CNA
4 hours ago
- CNA
High-profile Chinese dealmaker Bao Fan released from detention after two years, source says
BEIJING: Bao Fan, the star dealmaker and founder of boutique investment bank China Renaissance Holdings has been released more than two years after being detained by Chinese authorities, a person with knowledge of the matter said on Friday (Aug 8). China Renaissance shook the country's financial sector in 2023 when it announced it was unable to contact Bao, who founded the bank in 2005 with two other partners and still owns nearly 49 per cent of its issued shares. Bao was among several high-profile executives in China, mostly from the finance industry, who went missing in recent years with little explanation during a sweeping anti-corruption campaign spearheaded by President Xi Jinping. His disappearance unsettled professionals in the financial industry of the world's second-largest economy, as Beijing pressed its campaign to rein in what it described as the lavish lifestyle of the financial elite. BOOSTING BUSINESS CONFIDENCE Bao's release comes as Beijing seeks to bolster business confidence, particularly among the country's tech entrepreneurs, whose companies have been hit by a years-long crackdown. China is looking to restore confidence in the private sector, which has been struggling with weak domestic consumption and a prolonged debt crisis in the property sector, set against a backdrop of heightened trade tensions with the United States. "This is certainly a positive signal, as Bao was the most high-profile financier detained in recent years," said Christopher Beddor, deputy China research director at Gavekal Dragonomics. "Still, it will not change the fact that the anti-corruption campaign continues to churn through the financial sector, and the common prosperity campaign has led to sweeping pay caps and even clawbacks," Beddor said. "China's financial sector remains a long way from its heyday only a few years ago." HIGH-PROFILE DEALS Bao, widely regarded as one of China's best-connected bankers, was released from detention earlier this week, the person said, declining to be identified because the information was not public. He had been involved in major deals including the mergers of ride-hailing firms Didi and Kuaidi, food delivery companies Meituan and Dianping, and travel platforms Ctrip and Qunar. Neither China Renaissance nor Bao immediately responded to Reuters' requests for comment. Chinese media outlet Caixin first reported Bao's release, citing unidentified sources. China Renaissance's shares jumped 17 per cent on Friday to close at HK$6.87 (US$0.8752) before the news of his release became public. DETAINED IN 2023 Bao, who previously worked at Credit Suisse and Morgan Stanley, went missing in February 2023. Trade in China Renaissance shares was suspended in April 2023 after the bank delayed publication of its audited annual results due to mainland Chinese authorities detaining Bao as part of an investigation. A Chinese financial publication reported in May 2023 that he was detained by disciplinary and supervision officials. Authorities have not provided any explanation. China Renaissance shares plunged 72 per cent on the day trading resumed last September. Sources previously told Reuters that Bao was taken away to assist in an investigation into a former colleague. Xie Yi Jing, who co-founded China Renaissance, replaced Bao as chairman in February last year.
