China unveils more measures to stabilise its economy
China has unveiled even more support to stabilise its economy, as Beijing steps up efforts to cushion the economy from US tariffs. The seven-day reverse repurchase rate was cut by 10 basis points, which will bring down its main policy - the loan prime rate. The central bank will also lower the reserve requirement ratio by 50 basis points, unleashing an additional US$140 billion to the market. CNA's May Wong has more from Hong Kong.
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Straits Times
an hour ago
- Straits Times
Jetstar Asia to cease operations from July 31, over 500 employees in Singapore affected
Jetstar Asia will continue to operate flights for the next seven weeks on a progressively reduced schedule, before its final day of operations on July 31. ST PHOTO: STEPHANIE YEOW Jetstar Asia to cease operations from July 31, over 500 employees in Singapore affected SINGAPORE - Singapore-based low-cost airline Jetstar Asia will cease operations on July 31 as part of a 'strategic restructure' by its parent company, Australian flag carrier Qantas. More than 500 employees in Singapore will be laid off due to the closure, with the airline assuring that it will offer a range of support, including retrenchment benefits and employment opportunities, either within the Qantas Group or elsewhere. Jetstar Asia said in a statement on June 11 that it will continue to operate flights out of Singapore for the next seven weeks with a progressively reduced schedule until its final day of operations on July 31. Qantas said 16 intra-Asia routes will be impacted by the closure of Jetstar Asia, with no changes to Jetstar Airways (JQ) and Jetstar Japan (GK) services into Asia. Jetstar Airways' international services in and out of Australia will also remain unchanged. Jetstar Asia flies to major hubs in South-east Asia such as Bangkok, Manila, Jakarta and Kuala Lumpur, as well as other places like Bali, Surabaya and Colombo in Sri Lanka. The airline operates about 180 weekly services at Changi Airport and carried about 2.3 million passengers in 2024, accounting for about 3 per cent of the airport's total traffic. Customers with bookings that are impacted by the announcement will be contacted directly, with the option of a full cash refund or an alternative flight where possible . The budget carrier, which operates out of Changi Airport Terminal 4, has set up a dedicated webpage with information for its customers, and its Travel Alert page will be regularly updated with the latest advice. Jetstar Asia said the decision to cease operations comes amid escalating supplier costs, airport fees and aviation charges in recent years, as well as growing capacity and competition in the region. Qantas chief Vanessa Hudson said some supplier costs have risen by up to 200 per cent. Jetstar Asia was expected to post a loss of A$35 million (S$29.3 million) before interest and taxes this financial year, prior to the decision to shut down. It has been bleeding cash for several years now, according to Accounting and Corporate Regulatory Authority records. The airline lost S$165.4 million in the financial year ending June 30, 2021, and S$37.2 million in the following financial year, during the Covid-19 pandemic. It managed to turn a S$12.5 million profit in 2023, but slipped back into the red with a S$7.1 million loss in the 12 months ending in June 2024. On June 11, Jetstar Asia said it foresees costs continuing to rise in future, putting 'unsustainable pressure' on the airline's ability to offer low fares, which it said is fundamental to its business model. Jetstar Asia chief executive John Simeone said: 'Unfortunately, despite our best efforts, the market conditions have ultimately impacted our ability to continue to offer the everyday low fares that are our DNA.' The Singapore Manual & Mercantile Workers' Union (SMMWU) said it has worked closely with Jetstar Asia's management to ensure affected workers receive fair compensation. SMMWU secretary-general Andy Lim said the union will support employees by providing job placement assistance and career advisory services across various industries, and financial aid, where necessary. Retrenched employees will receive a redundancy payment of four weeks per year of service, a bonus for this financial year, a special 'thank you' payment as well as other benefits. Changi Airport Group (CAG) said it is disappointed by Jetstar Asia's decision to exit the Singapore market after 20 years of operations here , but respects the carrier's commercial considerations. 'Our immediate priority is to ensure passengers are well-supported and to minimise disruption during the transition period,' the airport operator said in a statement. Of the 16 routes affected by Jetstar Asia's closure, 12 are served by 18 other airlines offering more than 1,000 weekly services, CAG said. 'We will monitor the routes affected by Jetstar Asia's exit, and where additional capacity is needed, we will actively engage other airlines to fill the gap,' it added. CAG will also work to restore connectivity to the four destinations served exclusively by the budget carrier from Changi. They are Broome in Australia, Labuan Bajo in Indonesia, Okinawa in Japan and Wuxi in China. 'CAG values its partnership with the Qantas Group and will continue to collaborate with Qantas and Jetstar Airways to support their growth and presence at Changi Airport,' it added. Ground handler Sats said it is working closely with Jetstar Asia to ensure a smooth and orderly transition. The Qantas Group said it will provide support for Jetstar Asia to continue to meet its financial obligations while operations wind down. 'Jetstar Asia has been part of the Jetstar family for more than 20 years and this is an incredibly difficult and sad day for our people, our customers and the entire Jetstar Group,' said Jetstar Group chief executive Stephanie Tully. Following the airline's closure, its 13 Airbus A320 aircraft will be progressively redeployed across the Qantas Group to support fleet renewal and growth in the Australia and New Zealand businesses in line with underlying demand. Tell us if you are affected. E-mail us at stnewsdesk@ Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
an hour ago
- Straits Times
Snap to launch smart glasses for users in 2026 in challenge to Meta
The company has invested more than US$3 billion (S$3.8 billion) over 11 years developing its augmented reality glasses. PHOTO: SPECTACLES/INSTAGRAM Snap to launch smart glasses for users in 2026 in challenge to Meta NEW YORK - Snap will launch its first-ever smart glasses for all consumers next year, ratcheting up competition with bigger rival Meta in the wearable technology market. The augmented reality (AR) smart glasses, called Specs, will be lightweight, the social media company said on June 10. Long known for its messaging app Snapchat and animated filters, Snap has been doubling down on AR, which can overlay digital effects onto photos or videos of real-life surroundings through a camera or lens. Integrating technology into wearable products can open up new lucrative markets and diversify revenue streams for Snap amid an uncertain digital ad market due to changing US trade policies. The company had launched its fifth generation of Spectacles glasses in September, but these were only available to developers. The company has invested more than US$3 billion (S$3.8 billion) over 11 years developing its augmented reality glasses, Snap co-founder and chief executive Evan Spiegel said at the Augmented World Expo 2025 on June 10. 'Before Snapchat had chat, we were building glasses.' The popularity of Meta's Ray-Ban Meta smart glasses developed in partnership with EssilorLuxottica have prompted companies such Google to explore similar investments. Meta continues to add AI features to its glasses to attract more consumers. Snap's Specs will be available in black to start, with special editions to possibly follow later, Mr Spiegel said in an interview. He did not disclose the price or hardware specifications, except to say that the glasses will cost less than Apple's US$3,499 (S$4,502) Vision Pro headset. The glasses also incorporate an artificial intelligence assistant, a way to play games with friends, and a 'workstation' area where users can do things like browse the web and stream video. 'We're really focused on and investing in glasses with things that the phone just isn't capable of,' Mr Spiegel said. Mr Spiegel teased a handful of upcoming hardware features and software capabilities, such as using AI to help change a tire, set the dining room table or nail a tricky billiards shot. New versions of Snapchat Lenses, the company's augmented-reality experiences, run the gamut from having an archery match with friends to playing a 3D version of the classic Snake game. Over 400,000 developers have built more than 4 million Lenses using Snap's tools, Mr Spiegel said. Specs will also integrate with various AI models, including those from OpenAI and Alphabet's Google, allowing developers to build AI-powered Lenses that can respond to various inputs in real time. The device will also support uses such as AI text translation, currency conversion and recipe suggestions based on what's in your refrigerator – capabilities that have already been built for the latest developer version of the company's smart glasses. As the wider tech industry grapples with concerns over AI and privacy, Mr Spiegel said his company is taking the issue seriously. 'Regardless of the demographic or age, privacy is incredibly important to us as a company and incredibly important for the future of these sorts of devices,' he said, adding that the device will strike a balance between providing the right features while protecting users' data. REUTERS, BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
CNA
2 hours ago
- CNA
BOJ to postpone rate hike to Q1 next year, tiny majority of economists say: Reuters poll
TOKYO :The Bank of Japan will forego another interest rate hike this year due to uncertainty over U.S. tariff policy, according to a slight majority of economists in a Reuters poll who expect the next 25-basis-point increase in early 2026. Japan's central bank will slow the pace of tapering its government bond purchases from next fiscal year, a majority also said, while three in four surveyed expect the government to cut down on issuance of super-long bonds. The latest results reflect policymakers' apprehension at a time when U.S. President Donald Trump's erratic tariff policies are threatening the economic outlook and as investors are increasingly concerned about Japan's public finances. The BOJ is still pushing for tighter monetary conditions, contrasting with its peers tilting for rate cuts, with its governor Kazuo Ueda stressing the central bank's readiness to keep raising interest rates if underlying inflation approaches its 2 per cent target. "If trade negotiations between the United States and other countries progress, global economic activity is likely to pick up," said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute. "The timing of policy interest rate hikes is now more likely to be delayed compared to previous projections, but the BOJ is expected to implement an additional rate hike in the first quarter of 2026." None of the 60 economists in the June 2-10 survey expected the BOJ to raise rates at its upcoming policy meeting on June 16-17. Specifically, 52 per cent of economists, 30 of 58, expected borrowing costs to stay at 0.50 per cent at year-end, the reverse of a poll in May when 52 per cent expected rates at 0.75 per cent by end-2025. Interest rate futures are only pricing in about 17 basis points more of tightening from the BOJ by year-end. More than three-quarters of respondents, 40 of 51, now expect at least one 25-basis-point increase by end-March, the poll showed. Of 35 economists who specified a month for when the BOJ will next hike rates, January 2025 was the top choice at 37 per cent, followed by 23 per cent for October this year and 9 per cent saying March 2025. The BOJ exited a massive stimulus programme in March last year and pushed up short-term interest rates to 0.25 per cent in July and 0.50 per cent in January. Just over half of respondents, 17 of 31, said the BOJ would decelerate its pace of tapering JGB purchases from the current roughly 400 billion yen per quarter beyond April next year. Of those respondents the quarterly taper size prediction ranged from 200 billion yen to 370 billion yen. The BOJ began tapering its huge bond buying last year to wean the economy off decades of massive stimulus even though it still owns roughly half of outstanding JGBs. Three-quarters of economists, 21 of 28, said the government would trim issuance of super-long bonds while the rest said the amount would not change. Yields on super-long JGBs rose to record levels last month due to dwindling demand from traditional buyers like life insurers and concern over steadily rising debt levels. Reuters reported on Monday the government is considering buying back some super-long bonds it issued at low interest rates on top of an expected government plan to trim issuance of super-long bonds in the wake of sharp rises in yields. Seventeen said the issuance of 30-year JGBs would be reduced, followed by 16 selecting 40-year and 10 choosing 20-year bonds. Survey respondents were allowed to give multiple responses. "With the auction results consistently weak, the finance ministry is facing strong pressure to reduce the amount of super-long JGBs issued from July onwards," said Kazutaka Maeda, economist at Meiji Yasuda Research Institute.
