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Reuters
12 hours ago
- Business
- Reuters
Euro zone business activity growth hits 11-month high in July, PMI shows
LONDON, July 24 (Reuters) - Euro zone business activity accelerated faster than forecast this month, supported by a solid improvement in the bloc's dominant services industry and with manufacturing showing further signs of recovery, a survey showed on Thursday. HCOB's preliminary composite euro zone Purchasing Managers' Index, compiled by S&P Global and seen as a good guide to growth, rose to an 11-month high of 51.0 points from 50.6 in June. That was above the 50.0 mark separating growth from contraction and above expectations for 50.8 in a Reuters poll. "The euro zone economy appears to be gradually regaining momentum. The recession in the manufacturing sector is coming to an end, and growth in the services sector accelerated slightly in July," said Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank. For the first time in over a year, overall demand did not decline, though there was no expansion. The composite new business index came in bang on 50, its highest level since May 2024. The services PMI rose to 51.2 from 50.5, exceeding the Reuters poll forecast for a more modest lift to 50.7. Inflationary pressures eased with the services input and output prices indexes falling. The input prices index fell to a nine-month low of 56.7 from 58.1. Inflation was at 2.0% in June, official data showed earlier this month, right where the European Central Bank wants it. The ECB will hold policy steady later on Thursday, according to all 84 economists surveyed in a Reuters poll, while a small majority expect one more interest rate cut - most likely in September. A manufacturing PMI, which has been sub-50 for three years, climbed to 49.8 from June's 49.5, just ahead of the poll estimate for 49.7, while an index measuring output dipped slightly to 50.7 from 50.8. Although some of that activity was driven by completing past orders, factories did so at the slowest rate in around three years. The backlogs of work index rose to 49.0 from 47.1.
RNZ News
17-07-2025
- Business
- RNZ News
Officials warn David Seymour's Regulatory Standards Bill could be more expensive than thought
economy politics 7:39 am today Officials have warned David Seymour's Regulatory Standards Bill could be much more expensive than previous estimates suggested, and could lead to business uncertainty, slowing economic growth. Political reporter Russell Palmer spoke to Corin Dann.
Free Malaysia Today
10-07-2025
- Business
- Free Malaysia Today
Ringgit, economy face tariff headwinds, say analysts
An analyst said the ringgit is expected to reach RM4.25 per dollar in the third quarter before strengthening to RM4.15 at year end. PETALING JAYA : Tariff concerns will likely weigh on Malaysia's currency and economy in the near term, according to analysts, after the country's central bank cut its benchmark interest rate for the first time in five years. Bank Negara Malaysia (BNM) called its decision a 'pre-emptive measure' in the face of growing risks for the Southeast Asian nation's economy, given slower global trade, weaker sentiment and lower-than-expected commodity production. The policy easing was a closely called outcome, with 13 of 23 economists surveyed by Bloomberg News expecting a rate reduction. The ringgit has risen over 5% versus the dollar this year, joining a rally among most Asian currencies amid the greenback's global retreat. Here is what some strategists and economists are saying about the rate decision: Jeff Ng, head of Asia macro strategy at Sumitomo Mitsui Banking Corp, said the ringgit may face headwinds in the near term. The currency may now be driven by tariff concerns on semiconductors, copper and pharmaceuticals given the Malaysian economy's exposure to these products in trade. Ng said he expects the currency to reach RM4.25 per dollar in the third quarter before strengthening to RM4.15 at year end. The 25% reciprocal tariff rate on Malaysia has likely tilted the balance towards a rate cut today. 'We continue to expect Malaysia's GDP growth to slow to 4.1% in 2025, with some negative effects likely to spill over into 2026,' said Lloyd Chan, FX strategist at MUFG Bank. A key downside risk could stem from Donald Trump's threat to impose a 10% tariff on BRICS nations. 'While Malaysia is not a full member of BRICS, it joined as a partner nation. 'We are not looking for further rate cuts for now, unless growth slows materially below 4% this year, which is currently not our baseline,' Chan said. Today's rate cut is already pre-emptive. A key downside risk to growth could come from sectoral tariffs on semiconductors. 'If this materialises, there could be more rate cuts. 'On the ringgit, we think domestic macro resilience will provide a crucial offset to trade headwinds,' Chan said. This, along with our anticipation for further US dollar weakness, inform our outlook for US dollar/ringgit to fall to RM4.11 by end-2025. Meanwhile, Frances Cheung, head of FX and rates strategy at Oversea-Chinese Banking Corp said the market has not fully priced in another rate cut after this. 'Given the somewhat dovish statement, there appears to be small room for ringgit rates to fall,' Cheung said. 'We expect the Kuala Lumpur Interbank Offered Rate (KLIBOR) to follow the overnight policy rate (OPR) lower, but not fully, resulting in a mild rewidening in KLIBOR-OPR spread,' said Sanjay Mathur, an economist with Australia & New Zealand Banking Group. BNM probably brought forward the anticipated rate cut owing to global economic policy uncertainty which was accentuated by the Trump administration's decision to impose a 25% tariff on Malaysia's exports. Typically, BNM does not do back-to-back cuts unless the economy is in recession.
Khaleej Times
09-07-2025
- Business
- Khaleej Times
AI, climate resilience could boost Mideast GDP by $232b: PwC
Strategic adoption of artificial intelligence (AI) and bold action on climate resilience could boost the Middle East's gross domestic product by as much as $232 billion by 2035, according to new research by PwC. The report identifies the UAE as a key driver of this transformative growth, thanks to its early investments in AI infrastructure, strong climate commitments, and leadership in renewable energy. Titled Value in motion: The Middle East's time to lead is now, the PwC report outlines three future economic scenarios for the region, showing how decisive leadership in AI and sustainability can unlock a new era of tech-enabled prosperity. Under the most ambitious outlook, regional GDP could reach $4.68 trillion by 2035, compared to $3.57 trillion today — an increase of over $1.1 trillion. However, this optimistic trajectory hinges on two critical levers: widespread, responsible AI adoption and a proactive approach to climate adaptation. Without intervention, the region could suffer a GDP hit of up to 13.9 per cent due to escalating climate risks such as extreme heat, water scarcity, and flooding. On the flip side, PwC's modelling shows that AI alone could contribute 8.3 per cent to GDP growth through productivity gains across sectors. The UAE, already recognised for its forward-looking digital agenda, is positioning itself as a pioneer in this dual transformation. Home to the world's first Ministry of Artificial Intelligence and one of the lowest-cost renewable energy ecosystems globally, the UAE is uniquely placed to lead the convergence of digital and sustainable development. Stephen Anderson, chief strategy and technology officer at PwC Middle East, emphasised that the coming decade will test the region's readiness to embrace profound structural change. 'As the dynamics of the 'three tomorrows' unfold — technology disruption, climate urgency, and cross-sector transformation — they will reshape the Middle East's economy,' he said. 'To stay ahead, businesses and governments must act with pace, purpose, and partnership.' The research introduces a new framework centered on what PwC calls 'domains of growth' — interconnected ecosystems that move beyond traditional sectors and reflect how societies will meet core human needs in the future. These include how we move, build, fuel, care, compute, and connect. In this context, the UAE's multi-sectoral initiatives — from AI-powered healthcare and autonomous transport to clean hydrogen and 5G infrastructure — offer a real-time blueprint for regional reinvention. Dr Yahya Anouti, partner at Strategy& and PwC Middle East's sustainability platform leader, stressed the importance of balancing AI scalability with energy availability. 'A critical factor will be how effectively the region aligns the cost and scalability of AI with the availability of clean energy to power it. This balance is essential as AI demand accelerates at an unprecedented pace,' he noted. The report argues that the Middle East — especially countries like the UAE and Saudi Arabia — can not only adapt to emerging global shifts but lead them, if they align institutional innovation, private-sector reform, and talent development. Governments are urged to reconfigure ministries to meet evolving societal needs — such as establishing departments focused on mobility, care, or digital governance — and to create public funds aimed at fast-tracking AI adoption. Analysts noted that businesses in the region are encouraged to localise supply chains, redesign operating models for a low-carbon digital economy, and form cross-sector partnerships. Academic institutions are also called on to develop future-ready talent by embedding AI, climate studies, and entrepreneurship into their curricula while fostering applied research. The UAE's recent moves reflect this holistic approach. In May, the government unveiled plans to deploy AI across education, logistics, and public safety. Simultaneously, Abu Dhabi is ramping up investment in clean hydrogen, while Dubai has launched initiatives to equip one million people with AI skills by 2030. Global tech firms are also taking note. Microsoft, Google, and Amazon Web Services have all expanded their cloud infrastructure in the UAE, citing the country's stable regulatory environment and clean energy availability as decisive factors. With AI data centers requiring immense energy input, the UAE's solar and nuclear assets offer a sustainable edge. The report underscores that while the opportunity is vast, the clock is ticking. The Middle East's path to $4.68 trillion in GDP by 2035 is not guaranteed — but it is within reach, if nations seize the moment. 'The value is already in motion,' the PwC report concludes. 'Now is the time to act.'
Zawya
09-07-2025
- Business
- Zawya
Tunisia: Head of State reviews outcomes of Finance Minister's participation in 4th International Conference on Financing for Development
Tunis – President Kaïs Saïed met on Monday at Carthage Palace with Finance Minister Michket Slama Khaldi, where he was briefed on the outcomes of her meetings held on the sidelines of the 4th International Conference on Financing for Development, recently hosted in Seville, Spain. According to a statement from the Presidency of the Republic, the President stressed that the world today urgently needs new and alternative approaches—ones that completely break away from outdated models that have long contributed to global disparities in development. He added that countries still labeled as "developing," "emerging," or "fragile states" have yet to achieve real and meaningful growth their populations aspire to. They have been victims of an unjust global economic system and a series of crises they have not been responsible for. © Tap 2022 Provided by SyndiGate Media Inc. (
