What's news

Govts & policies

Positive trade effect seen

A Norwegian analyst said friction between China and the European Union could undermine the relationship between the two and international trade. But he said more transparency and respect for World Trade Organization agreements and international regulations would boost cooperation and prevent trade protectionism. "Although there have been some trade friction between China and Europe, they should not be overstated," said Arne Melchior, a senior research fellow at the Norwegian Institute of International Affairs. "The EU has implemented new anti-dumping measures on iron and steel, but most of the trade continues without problems," he added.

Reforms reviewed by Mexican analyst

Reforms put in motion by China are aimed at spurring both domestic and global economic growth, according to a leading Mexican academic. Armando Azua Garcia, at the Asian Studies Center at the Iberoamerican University, said he believed that while the reforms are designed to reduce China's dependence on international markets, a robust Chinese economy will have a positive impact on the rest of the world. China's goal "is to not be solely dependent on the major world markets, which of course it is not going to abandon, but on the contrary, it is going to strengthen them", Azua said in an interview.

Companies & markets

Yuan weakens against US dollar

The central parity rate of the renminbi, or the yuan, weakened 167 basis points to 6.8957 against the US dollar on Tuesday, according to the China Foreign Exchange Trade System. The fixing was the weakest since Jan 17. China on Sunday set its 2017 GDP growth target at around 6.5 percent, the lowest in a quarter of a century, compared with last year's range of 6.5 percent to 7 percent. Economists said the move indicated that more energy would be channeled into reform. Global investors opened the trading week almost certain that the US Federal Reserve will raise that country's interest rates next week.

Exchange launching soymeal options

The Dalian Commodity Exchange is planning to launch soybean meal futures by end of this month, Chief Executive Wang Fenghai said on Tuesday. "We have all the approvals needed for soybean meal options and we are looking at launching by the end of this month," he said, speaking on the sidelines of a conference in Kuala Lumpur. The exchange is aiming to launch hog futures by the end of 2017, Wang added.

ExxonMobil invests in Gulf Coast

ExxonMobil Corporation, world's biggest oil and gas company, announced it will invest $20 billion over a decade to expand its manufacturing capacity in the Gulf of Mexico, a major oil and gas producing area in the United States. Announcing the company's Growing the Gulf initiative at CERAWeek - an annual international gathering of energy industry leaders, analysts, government officials and policy makers - CEO Darren Woods said that the energy giant was making the move to take advantage of the US energy revolution.

Amazon logistics center for Slovakia

Amazon will open a logistics center in Sered, western Slovakia, and create more than 1,000 jobs over the next three years, company representatives confirmed. The center is set to be opened in the third quarter of the current year and will focus on European customers. Currently, Amazon has an office in Bratislava, employing more some 850 people. "The fact that we are building our logistics center in Slovakia shows how much we believe in investing in this market," said Amazon Vice-President for European Operations Roy Perticucci.

Around the world

Chamber concerned with law changes

The Chinese Chamber of Commerce in Germany expressed concerns over pending changes to the country's foreign investment laws, saying it might block free trade and investment and harm its economy. The chamber said that the Bundestag, the lower house of the parliament, is currently discussing amending Germany's Foreign Trade and Payments Act, aiming to restrict foreign investment. The drafts on review will include some articles to limit investment that is believed to "harm the public safety order and security". The chamber of commerce described the proposed changes as obscure and vague, adding that they might create uncertainty for foreign investors.

Aussie agricultural exports to surge

Australian farm produce is predicted to boom in the current year as overseas markets clamor for locally grown nuts such as almonds and macadamias as well as agricultural stalwarts such as beef, lamb, wool and cotton, according to projections released by the Australian Bureau of Agricultural and Resource Economics and Sciences at its Outlook 2017 conference in Canberra. The bureau said the value of Australian agricultural production was forecast to surge by 8.3 percent this financial year to $48.5 billion, due to favorable seasonal conditions in most farming areas and strong prices for major exports such as beef, lamb and wool. But it was the increase in popularity of Australian nuts which took the industry by surprise, with export records beaten across the country.

Ireland sets auction bond targets

Ireland said on Monday it plans to raise up to 1.25 billion euros ($1.32 billion) in its second dual bond auction of this year. In a statement, the National Treasury Management Agency said it would auction between 1 billion euros and 1.25 billion euros of bonds through a dual auction of debt that matures in 2026 and 2045. The agency returned to dual auctions last month for the first time since 2010. Last month, it sold 600 million euros of bonds that are due to be repaid in 2022, and a further 650 million euros of securities that mature in 2026.

Vietnam's credit grows 1.6 percent

Vietnam's National Financial Supervisory Commission has reported that credit in the first month of 2017 saw a growth rate of 1.6 percent, the highest month-on-month increase over the past five years. Vietnamese credit in 2016 grew by 18.71 percent compared with the end of 2015. This year, the country targeted a credit growth of 18 percent. Credit in Vietnamese dong from the beginning of 2017 to January 31 rose by 1.6 percent, while credit in foreign currencies went up 1.6 percent in the same period, local Vietnam News online newspaper quoted a report by NFSC as saying.

Opportunities seen in Cuban projects

The Cuban food industry has 21 development projects in progress worth a total of $762 million, some of which have drawn interest from foreign investors, according to local news site Sierra Maestra. According to the deputy minister of the food industry, Betsy Diaz Velazquez, two of these projects - in beer and jam - could be concluded this year and be set up in Mariel, a special economic zone. The country hoped the projects would drive development over the coming years, she said. Velazquez said negotiations were being carried out with the Cristal beer company and with Nestle.

Slovenian-Serbian association set up

The Slovenian-Serbian Business Association announced it had been established in Ljubljana to promote the economic cooperation and the exchange of good practices between the two countries. The association will strive to establish relations, business cooperation and integration between its members, the Slovenian Press Agency quoted a press statement as saying. The association is headed by Goran Medic, CEO of Serbian-owned soft drinks maker Fructal, who has lived in Slovenia for more than five years.

Solid growth for consumer loans

Consumer loans continue to be one of the healthiest segments of lending in the Albanian banking sector, a study published by the Bank of Albania showed. According to the central bank, consumer loans issued by banks in Albania during 2016 saw an increase of 12 percent year-on-year. The consumer loan portfolio of the banking system totaled 39 billion leks ($301.7 million), without including overdrafts, bank data showed.

China Daily - Agencies