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Free Malaysia Today
2 hours ago
- Business
- Free Malaysia Today
Asia's factory activity worsens as US trade uncertainty bites
Factory activity in July expanded in the Philippines and Vietnam, but shrank in Taiwan, Indonesia and Malaysia. (EPA Images pic) TOKYO : Asia's factory activity deteriorated in July as soft global demand and lingering uncertainty over US tariffs weighed on business morale, private sector surveys showed today, clouding the outlook for the region's fragile recovery. The surveys were taken before Japan and South Korea clinched trade deals with Washington, offering some hope that receding uncertainty could prop up manufacturing activity in coming months, some analysts say. Factory activity shrank in export powerhouses Japan and South Korea, surveys for July showed, underscoring the challenge Asia faces as President Donald Trump's policies threaten the global free trade system the region relied upon for growth. China's factory activity also deteriorated in July as softening business growth led manufacturers to scale back production, boding ill for the region's economy. The S&P Global China general manufacturing purchasing managers' index (PMI) fell to 49.5 in July from 50.4 in June, undershooting analysts' expectations of 50.4 in a Reuters poll and dropping below the 50 threshold that separates growth from contraction. The reading comes a day after an official survey showed China's manufacturing activity shrank for a fourth straight month in July, suggesting a surge in exports ahead of higher US tariffs has started to fade while domestic demand remained sluggish. The survey 'provides further evidence that China's economy lost some momentum last month, largely due to domestic weakness,' said Zichun Huang, an economist at Capital Economics. The S&P Global Japan manufacturing PMI also fell to 48.9 in July from 50.1 in June, a sign US tariffs were hurting the world's fourth-largest economy. Most of the survey data was collected before the announcement of a Japan-US trade agreement last month, which lowers tariffs imposed on Japan to 15% from a previously threatened 25%. As the trade deal with Washington kicks in, 'it will be important to see if this will translate into greater client confidence and improved sales in the months ahead,' said Annabel Fiddes, economics associate director at S&P Global Market Intelligence, which compiles the survey. South Korea also saw factory activity contract in July for the sixth straight month with the S&P Global PMI falling to 48.0 in July, from 48.7 in June. 'Both production volumes and new orders fell at a steeper rate than that in June, with anecdotal evidence indicating that weakness in the domestic economy was compounded by the impacts of US tariff policy,' said Usamah Bhatti, economist at S&P Global Market Intelligence. The survey was conducted from July 10 to July 23, before South Korea reached on Wednesday a trade deal with the US lowering tariffs to 15% from a threatened 25%. Factory activity in July expanded in the Philippines and Vietnam, but shrank in Taiwan, Indonesia and Malaysia, PMIs showed.
Free Malaysia Today
2 days ago
- Politics
- Free Malaysia Today
US, China confront each other on Ukraine at United Nations
US Ambassador to the UN Dorothy Shea speaks during a security council meeting. (EPA Images pic) UNITED NATIONS : The US told China at the UN on Friday it should 'stop fuelling Russia's aggression' in Ukraine, as China accused Washington of trying to shift blame and spark confrontation. Acting US Ambassador to the UN Dorothy Shea urged all countries, specifically naming China, to stop exports to Russia of dual-use goods that Washington says contribute to Russia's war industrial base and enable its drone and missile attacks on Ukraine. 'Beijing's claim to have implemented strong export controls on dual-use goods falls apart in the face of the daily recovery of Chinese-produced components in the drones, weapons, and vehicles that Russia uses against Ukraine,' Shea told a meeting of the 15-member UN Security Council on Ukraine. China did not start the war in Ukraine, is not a party to the conflict, has never provided lethal weapons, and has always 'strictly controlled dual-use materials, including the export of drones', China's deputy UN ambassador Geng Shuang responded. 'We urge the US to stop shifting blame on the Ukraine issue or creating confrontation and instead play a more constructive role in promoting ceasefire and peace talks,' he told the council. Reuters reported on Wednesday that Chinese-made engines are being covertly shipped via front companies to a state-owned drone manufacturer in Russia, labelled as 'industrial refrigeration units' to avoid detection in the wake of Western sanctions. 'If China is sincere in calling for peace, it should stop fuelling Russia's aggression,' Shea said.
Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
Philips chops back US tariff bill
Shares in Philips jumped more than 10% during morning trading. (EPA Images pic) AMSTERDAM : Dutch medical equipment manufacturer Philips said today that the impact of US tariffs would be much less than it initially estimated, sending its share price surging. The company had originally estimated in April that US tariffs could cost it €250 million to €300 million this year after President Donald Trump unveiled a 20% tariff rate for goods from the EU. Brussels and Washington reached a deal over the weekend that will see goods from the EU face a baseline 15% levy when imported into the US. It said today it now expects between €150 million and €200 million impact from US tariffs this year. Chief executive Roy Jakobs said Philips updated 'the guidance because we have certainty now around what is happening between the EU and the US.' Shares in Philips jumped more than 10% during morning trading, while the Amsterdam market rose around 0.4% overall. The trade deal has come under widespread criticism in Europe as having been lopsided, saddling its manufacturers with a costly 15% rate with little in return from the US as certainty is a relative concept given Trump's propensity to change positions. Jakobs said that certainty 'is what we value in' in the deal, while acknowledging 'it's a painful additional cost we have to carry'. The company still targets a one to 3% increase in annual sales. Second quarter net profit fell by 47% to €240 million, but last year's performance was boosted by exceptional income from insurance payouts linked to long-running issues with its sleep apnoea machines. Sales slid by 2.8% to €4.3 billion, although they edged higher on a comparable basis that excludes currency changes. The company also noted orders rose by 6% on a comparable basis. The appreciation of the euro relative to the dollar and other currencies has been crimping the results of European companies as their revenues abroad result in fewer euros on the balance sheet. Long known for its light bulbs and television sets, the Dutch company has refocused its business towards medical equipment.
Free Malaysia Today
3 days ago
- Politics
- Free Malaysia Today
Ukrainian drone attacks leave 1 dead, spark fire at train station in Rostov
Rostov's acting governor confirmed a car was damaged as a result of the attack, killing the driver. (EPA Images pic) MOSCOW : Multiple Ukrainian drone attacks across Russia's southern Rostov region have left one person dead, sparked a fire and suspended train traffic at a railway station, Russian authorities said on Tuesday. Russia's defence ministry, which reports only how many drones were destroyed, not how many Ukraine launched, said its defence units downed a total of 74 drones overnight, including 22 over the Rostov region. In the town of Salsk, a car was damaged as a result of the attack, killing the driver, Rostov's acting governor, Yuri Slyusar, said on the Telegram messaging app. A stationary freight train caught fire and power was disrupted at the train station in Salsk, forcing the suspension of train traffic, Russia's Railways said on Telegram. Reuters could not independently verify the report. There was no immediate comment from Ukraine, which has often said that its attacks inside Russia are in response to Moscow's relentless strikes on Ukraine. Both sides deny targeting civilians in the war that Russia started with its full-scale invasion in 2022.
Free Malaysia Today
3 days ago
- Politics
- Free Malaysia Today
Terror threat to Singapore ‘remains high', says home affairs report
Singapore's home affairs ministry said Islamic State is using propaganda to exploit the war in Gaza. (EPA Images pic) SINGAPORE : The terrorism threat to Singapore remains high, said its home affairs ministry in a report released today, pointing to the ongoing Israeli-Palestinian conflict and 'continued traction of radical narratives'. While there was no current intelligence of an imminent attack against Singapore, the ministry said Islamic State uses propaganda to exploit the war in Gaza and local grievances to reinforce its narrative of armed violence. Since the surprise attack by Hamas on Israel in October 2023, six Singaporeans have been found to support or were making preparations to take part in armed violence because of the conflict, said the report. 'Singapore and our interests continue to be viewed as attractive and legitimate targets by terrorist and extremist elements, due to our friendly relations with western nations and Israel, the presence of iconic structures in Singapore, and our status as a secular and multicultural state,' it said. The ministry said a key threat was online self-radicalisation, in a variety of extremist ideologies, especially of youths. Since 2015, Singapore has used the Internal Security Act against 17 youth aged 20. Most recently it was used against two teenagers – one planned to shoot mosques, the other planned to join Islamic State. The law allows suspects to be held for lengthy periods without trial, or to be given a restriction order limiting travel and internet access, among other conditions. The threat assessment report also said artificial intelligence was emerging as a terrorism enabler for 'generating and translating propaganda, producing convincing synthetic multimedia, creating personalised recruitment messages at scale, and planning and developing attacks'.
