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Factory Performance in Asia Grows But Still Unstable

Factories in Asia maintained their recovery in the month of February as COVID-19’s impact is lessening. However, the conflict between Russia and Ukraine might threaten the economy, agitating supply chain and cost pressures.  

In the wake of Russian attack to Ukraine, global institutions have imposed sanctions on Russia, leading to a shock in Asian markets and boost in oil prices. Governor of the Reserve Bank of Australia, Philip Lowe, said on Tuesday the Ukraine’s war has brought up uncertainty.

Surveys from Chinese government and private factories declared active economy, which suggests flexibility in the vast country’s economy although cost pressures exist.

Surveys also show that in Malaysia, Vietnam and the Philippines, too, manufacturing has boosted despite Omicron spread. 

However, In Taiwan and Indonesia, factory activity growth slumped due to pandemic impact on supply chain. Equally, Japan's expansion decelerated in February as restrictions on COVID-19 still linger and production costs are on the rise.

Even before the Ukraine war, Asia’s recovery had been fragile, according to the surveys. 

Toru Nishihama, Chief Economist at the Economic Research Department of Dai-ichi Life Research Institute, said the first impact caused by the invasion will increase oil prices, leading to a drastic strike on Asian economy. He added the conflict might worsen supply disruptions, threatening countries such as Japan, South Korea and Taiwan, as Russia exports gas, metals, and chip-related goods. 

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By Saha on March 1, 2022

UAE Expands Deals with Other Countries

The trade agreement between the United Arab Emirates (UAE) and India will reduce tariffs on reciprocal commodities. Yearly trade between the two countries is estimated to rise to $100 billion, according to the prime ministry department of India. The deal is able to create over a million job opportunities, especially in automobile, plastic and leather industries, within the upcoming years, said Piyush Goyal, the Indian commerce minister.

The Comprehensive Economic Partnership Agreement (CEPA) would be able to increase $9 billion, 1.7%, to the UAE’s GDP by 2030, according to the UAE economy ministry.

Sheikh Mohamed bin Zayed Al Nahyan, the de facto ruler of Abu Dhabi, in a common declaration stated the deal strengthens our trade relations with India and opens up a new phase for us to cooperate globally.

It’s expected that the CEPA will, in the next few years, increase the annual mutual non-oil trade from $60 billion to $100 billion. The CEPA will expectedly be fulfilled by May.

The Gulf state has become a profitable business center as the UAE has been active in making trade deals. It has already made business deals with Turkey and South Korea and plans to consummate new deals with Israel and Indonesia.

In a country with over 10 million foreigners, the UAE has considered plenty of social reforms to facilitate business and life conditions.

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By Saha on February 20, 2022

FITUR Tourism Fair

FITUR, the annual international tourism fair in Latin America brings together professionals in global tourism to introduce their brands, see brand-new products, and get to know the latest trends in tourism industry.

The aim of one of the largest expos in the world is to develop programs to bring diversity and sustainability to the world of tourism. Tourism experts, domestic and international, come here to catch up with the latest in the industry, converse, consult, and communicate with one another.

Held in Ifema trade fair center in Madrid, is the leading exhibition in the Iberian Peninsula. In domestic stalls, participants bring in contact with tourism deciders and experts, travel agencies as well as tourism associations.

A niche for the Latin American market, the global fair is adjacent to the international airport and easily accessible via public transportation. Due to Covid-19, safety regulations are in place. The fair’s schedule is from January 19, to January 23, 2022.

The exhibition had a record high in 2020, with 11,040 companies from around the world, 150,011 pros as well as 111,089 public visitors.

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By Saha on January 19, 2022

South Korea's Interst Rate Jumps

South Korea’s interest rate has raised to the level it was before the global pandemic, aiming to curb high inflation and rising household debts.

According to the Bank of Korea's (BOK), the plan to increase the rate to 1.25% was the third time within six months. This is while central banks across the world strive to lower the effects of the pandemic on inflation.

South Korea was the first Asian country to increase the rates in August. With the rise in consumer inflation reaching 2.5% in 2021, the highest price increase since 2011, the country’s policy makers are pressed to take actions.

To curb the negative consequences due to the Covid-19, global central banks and governments have added trillions of dollars to the world’s economy in the last two years. International policy makers are currently trying to remove emergent stimulus packages.

South Korea, in the front line to switch to unwind the huge economic stimulus, tries to control high consumer prices. In the same front, the United States of America also aims to grow its interest rate three times in 2022. Prices in the U.S. have seen the fastest pace for nearly 40 years; inflation has increased up 7% year-over-year last month.

To address rising prices, the Bank of England, too, increased interest rates in December for the first time within over three years.

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By Saha on January 16, 2022

J&J to Spin off by 2023

Johnson & Johnson last November reported that it aims to spin off a new publicly traded corporation by November 2023. The news was no surprise to Wall Street.

Healthcare Equity Strategist at Oppenheimer, Jared Holz, said the community of analysts has been debating over dividing out Johnson & Johnson for several years now. This is while the spinoff is taking place in a dramatic situation and people are interested to know why do it now, he added.

According to market capitalization, Johnson & Johnson is the largest pharmaceutical firm in the U.S.

Graded 36 on the Fortune 500 List of largest U.S. companies in 2021, following overall revenue, the firm has observed dividend growth for almost 60 years and surpassed the market index of S&P 500 persistently over the last 25 years.

In this regard, Louise Chen, managing director at Cantor Fitzgerald, said to be consistent with the market flow, companies should work on their core capabilities and diversify. There are already various examples of how huge pharmaceutical companies plucking out non-operating assets, he also added.

As yet, investors have responded to derivation delicately. Chen said that there’s risk in dividing out the consumer business. He also said I believe that investors are not still completely convinced of the potential independent earnings of the two companies.

Perhaps there are headwinds in the spinoff. J&J company has been tackling legal struggles during the last years: many of the challenges still exist which might cause currently unknown fines and settlements.

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By Saha on January 11, 2022

Sliding Doors Suites in New Airplane: JetBlue

JetBlue Airways will uncover its new cabin in new Airbus A321LR planes in the summer. The airline is set to show up private suites on a flight to the city of London. The competitive carrier aims to transcend its rivals with attracting more trans-Atlantic passengers. The transatlantic flights, which used to be lucrative, have been struck since the outbreak, even more than home flights. With slow distribution of the vaccine, international air travels are predicted to have a delayed recovery. According to JetBlue, the newly-designed Mint suites hold sliding doors with “1-1 configurations”: passengers can’t sit right next to one another. The airline’s planes will have 24 Mint suites and 2 Mint studios, with an additional side table and a second seat, embedded for business passengers. Samira H.

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By Samira Hassanzadeh on October 19, 2021

Agriculture Imports Should Be Banned: Tanzania's Permanent Secretary

Tanzania’s government asked those in charge of agriculture to set plans to avoid imports of agricultural produce. The country’s hard currency has been expended over import of agricultural products, as stated by Gerald Kusaya, PS in the Ministry of Agriculture. He requested the agriculture sector to focus on ending imports. He supported his words with an example on how the country is dependent on agriculture imports; products like wheat, sugar and cooking oil are imported while they can easily be produced in Tanzania. He stated that Tanzania’s annual spending on importing cooking oil reaches 470bn/. This should be reduced or even stopped, he said. For edible oil, we can rely on growing sunflowers and palms, he also continued. Kusaya called for the officials in agriculture to illuminate farmers to get involved in the business and help the country to grow economically. Samira H.
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By Samira Hassanzadeh on October 19, 2021

China's Consumer Spending Targeting to Double by 2030

Chinese consumers spent a huge amount in years, basically more on services than goods, according to Morgan Stanley’s analysis. Private consumption in China is on track to get $12.7 trillion, which is nearly as much money as American consumers spend presently. Morgan Stanley’s prediction proved to be wrong as it had forecasted the number to be $9.7 trillion 3 years ago. As stated by the analytical report, the boost has happened as a result of supporting domestic economy by the Chinese government, growth in household earnings, working on developing urban places, and growth in technology. However, there’s still uncertainty in the wake of the pandemic. The country’s economy has totally rebounded from the pandemic attack but personal spending is not overall recovered yet. Last year, China saw a contraction in its retail sales while the national GDP grew. The investment banking company also predicted in its report Chinese people may want to save up if developments in automation facilities and technological applications lead to a huge job loss rate. Samira H.
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By Samira Hassanzadeh on October 19, 2021

Walmart Stores To Get Automated

Walmart intends to take advantage of expanded high-tech systems to be able to “pick and pack” grocery orders faster while customers e-shopping desire is expected to go on even after the pandemic. The first system, Alphabot, tried out in New Hampshire store in 2019, was a success. The retailer was able to get orders and offer groceries to the customers in an hour. Automation is on the agenda of the retail company, which is going through trial and error with technologies from companies like Alert Innovation. However, the retailer hasn't  mentioned the exact number of stores, where the technology will be used. It’s also not certain what the investment will be like. With this initiative, the Walmart’s customers will be able to experience comfort in ordering and receiving their groceries. Samira H.
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By Samira Hassanzadeh on October 19, 2021

Vale Ends Coal Production

Vale, the mining company, has stopped coal production, retreating from Tete in Mozambique. According to its announcement, Vale will disinvest from the entire production. Vale hired Barclays and Standard Chartered to perhaps sell its railway, port and mine to India or China. China is amongst the largest steel producers, for which coking coal is necessary. India, too, is the second biggest importer of coal in the world. The new company will exclusively mine premium quality coking (metallurgical) coal. This year, it intends to mine 15 million tons of the product (with an estimation of 18 million tons next year). Coal demand has decreased globally and [somebody should be quoted saying] the coking coal business will last not more than a decade. Samira H.
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By Samira Hassanzadeh on October 19, 2021

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