Afp Business Asia

Hello Kitty, the cute, enigmatic character that adorns everything from handbags to rice cookers, turns 50 on Friday — and is still making millions for her Japanese creators.The simple design of the character — who is not a cat, but a little girl from London according to Sanrio, the company behind Kitty — has mileage as a money-spinner for years to come, experts say.One woman in the US state of California has amassed so much Hello Kitty merchandise that her husband built her a pink so-called “she-shed” to keep it in.Stuffed inside are thousands of toys and other items featuring Kitty and her eye-catching red bow, including rows of sunglasses, a swivel chair and novelty gumball dispensers.”People my age, you know, we are told many times, ‘Hello Kitty is for little kids,’ and I laugh at that,” said Helen from Riverside County, conceding she is “50-plus”.Helen, who drives a Hello Kitty-decorated SUV and runs the local fan club “Hello Kitty SoCal Babes”, has been “obsessed” with the character since its 1970s US debut.Her vast collection of Hello Kitty plushies “make me feel warm”, she said, describing spending hours among the soft toys, many of them rare, on a regular basis.”Something in my inner child gets healed,” she said.Hello Kitty started life as an illustration on a vinyl coin purse.It has since appeared on tens of thousands of products — official and unofficial — including tie-ups with Adidas, Balenciaga and other top brands.The phenomenon shows no sign of slowing, with a Warner Bros movie in the pipeline and a new Hello Kitty theme park due to open next year on China’s tropical Hainan island.Sanrio’s share price has soared more than seven-fold, pushing its market cap over one trillion yen ($6.8 billion), since young CEO Tomokuni Tsuji took over from his grandfather in 2020.- ‘Pure product’ -“We’d be foolishly cynical to say that we don’t need these soft, fluffy, pink things,” Christine R. Yano of the University of Hawaii told AFP.In fact, “given the fraught nature of our contemporary lives, perhaps we need it now more than ever”, said Yano, author of the book “Pink Globalization” about Hello Kitty.”This is not a phenomenon that has died or is going to die, at least soon,” she added.Unlike other Japanese cultural exports such as Pokemon or Dragon Ball, there is minimal narrative around the character, whose full name is Kitty White.She has a twin sister Mimmy, a boyfriend called Dear Daniel, and a pet cat of her own, Sanrio says. She loves her mother’s apple pie and dreams of becoming a pianist or poet.The rest is left to fans’ imaginations — just like the “abstract, bare design that can speak with a kind of simplicity and elegance to more people”, Yano said.”I call her a pure product,” the researcher added.Some feminists say Hello Kitty’s lack of a mouth is a symbol of disempowerment, but Yuko Akiyama, Sanrio’s head of global brand management, said it allows the character to “reflect” different emotions.”So if they’re sad, Hello Kitty will comfort you. If you are happy, Hello Kitty is there to share the happiness with you,” Akiyama said.- Kawaii -Famous Hello Kitty fans include Lady Gaga, Nicki Minaj and Katy Perry, and her appeal extends to royalty: Britain’s King Charles wished her a happy birthday this year.On Hello Kitty’s TikTok account — whose bio is “CEO of supercute” — sardonic memes and footage from “Hello Kitty Day” at US baseball games delight 3.5 million followers.Hello Kitty is the epitome of Japan’s “kawaii”, or cute, soft power, and she is the mascot of a campaign promoting tourist etiquette in Tokyo.Posters celebrating the 50th anniversary are on display at Sanrio Puroland theme park, where businesswoman Kim Lu from Manila had brought her four-year-old niece during their holiday.”This really is our priority here in Tokyo,” she said.”To be honest, we really don’t know” the reason for Hello Kitty’s ineffable success, said Lu, 36.”I think it’s the kawaii charm.”Sanrio owns the copyright to hundreds of other popular characters, and Hello Kitty now accounts for 30 percent of profits, down from 75 percent a decade ago.But Kitty is still a favourite of 23-year-old Rio Ueno, who took an overnight bus from Japan’s northern Niigata region to visit the park with a friend.”I’ve had Kitty goods around me since I was a small child,” said Ueno, dressed in a fluffy Hello Kitty sweater, sporting a Kitty bag, and clutching a Kitty doll.”She is someone who is always close to me, and I want it to stay that way.”kaf-pr-hih-nf/smw

A Malaysian court ruled Wednesday that jailed former prime minister Najib Razak will have to defend himself against charges of abuse of power and money laundering linked to the scandal-wracked 1MDB sovereign wealth fund.Presiding judge Collin Lawrence Sequerah said the prosecution successfully established that Najib had a case to answer for on four counts of abuse of power linked to alleged bribes worth 2.27 billion ringgit ($517 million) as well as 21 counts of money laundering.”After a maximum evaluation of the evidence, I find that the prosecution has proven the ingredients of the charges,” Sequerah told the court.Six years after first being charged, Najib was in court decked out in a navy blue suit on Wednesday and appeared calm after hearing the decision.The 71-year-old told the court he would take the stand in his defence at the trial, which is slated to get under way on December 2.Najib’s lead lawyer Muhammad Shafee Abdullah said his client was “extremely disappointed” by the court’s decision, as the defence had presented arguments they thought would warrant serious consideration.  “If you were to ask me what do we feel? Extremely disappointed,” he told reporters outside the court complex on Wednesday.”But we are not giving up, we are going to fight this case, and we are more determined because of the decision today.”Each count of abuse of power is punishable by up to 20 years in jail and a fine of up to five times the amount of the bribe. Each money laundering count can incur a maximum fine of 5 million ringgit and imprisonment of up to five years, or both. The hearing came just days after Najib issued an apology that the 1MDB scandal happened during his tenure, but maintained he had no knowledge of illegal transfers from the now-defunct state fund.”It pains me every day to know that the 1MDB debacle happened under my watch as minister of finance and prime minister,” Najib wrote in a statement read by his son Mohamad Nizar last Thursday.”For that, I would like to apologise unreservedly to the Malaysian people.”Allegations that billions of dollars were pilfered from investment vehicle 1MDB and used to buy everything from a super-yacht to artwork played a major role in prompting voters to oust Najib and the long-ruling United Malays National Organisation party in 2018 elections.The 1MDB scandal sparked investigations in the United States, Switzerland and Singapore, whose financial systems were believed to have been used to launder the money.The current case is one of five brought against Najib in 2018 and involves Tanore Finance Corp, which US authorities have said was used to siphon money from 1MDB. Najib began serving a 12-year jail term in August 2022 for offences linked to the misuse of public money from former 1MDB unit SRC International. The sentence was later halved by Malaysia’s pardons board.His 1MDB audit tampering trial ended with an acquittal at the High Court in 2023. Najib, the UK-educated son of one of Malaysia’s founding fathers, still has a pending case of criminal breach of trust involving 6.6 billion ringgit, as well as a money laundering trial involving 27 million ringgit.The US Justice Department has said more than $4.5 billion was stolen from 1MDB between 2009 and 2015 by high-level officials at the fund and their associates.

Beijing said Wednesday it had lodged a complaint with the World Trade Organization over the European Union’s decision to impose hefty tariffs on Chinese-made electric cars.The extra taxes of up to 35 percent were announced Tuesday after an EU probe found Chinese state subsidies were undercutting European automakers, but the move has faced opposition from Germany and Hungary, which fear provoking Beijing’s ire and setting off a bitter trade war.China slammed Brussels’s decision on Wednesday morning, saying it did not “agree with or accept” the tariffs and had filed a complaint under the World Trade Organization’s (WTO) dispute settlement mechanism.”China will… take all necessary measures to firmly protect the legitimate rights and interests of Chinese companies,” Beijing’s commerce ministry said.EU trade chief Valdis Dombrovskis said Tuesday that “by adopting these proportionate and targeted measures after a rigorous investigation, we’re standing up for fair market practices and for the European industrial base”. “We welcome competition, including in the electric vehicle sector, but it must be underpinned by fairness and a level playing field,” he said.But Germany’s main auto industry association warned the tariffs heightened the risk of “a far-reaching trade conflict”, while a Chinese trade group slammed the “politically motivated” decision even as it urged dialogue between the two sides.The duties will come on top of the current 10 percent on imports of electric vehicles from China.The decision became law following its publication in the EU’s official journal on Tuesday, and the duties will enter into force from Wednesday.Once they do, the tariffs will be definitive and last for five years.The extra duties also apply, at various rates, to vehicles made in China by foreign groups such as Tesla, which faces a tariff of 7.8 percent.Chinese car giant Geely — one of the country’s largest sellers of EVs — faces an extra duty of 18.8 percent, while SAIC will be hit with the highest at 35.3 percent.- Ailing companies -The tariffs do not have the support of the majority of the EU’s 27 member states but in a vote early this month, the opposition was not enough to block them, which would have required at least 15 states representing 65 percent of the bloc’s population.The EU launched the probe in a bid to protect its automobile industry, which employs around 14 million people.France, which pushed for the investigation, welcomed the decision.”The European Union is taking a crucial decision to protect and defend our trade interests, at a time when our car industry needs our support more than ever,” French Finance Minister Antoine Armand said in a statement.But Europe’s bigger carmakers, including German auto titan Volkswagen, have criticised the EU’s approach and have urged Brussels to resolve the issue through talks.The extra tariffs are “a step backwards for free global trade and thus for prosperity, job preservation and growth in Europe”, the German Association of the Automotive Industry’s president Hildegard Mueller said on Tuesday after the announcement.Volkswagen, which has been hit hard by rising competition in China, has previously said the tariffs would not improve the competitiveness of the European automotive industry.That warning came weeks before the ailing giant announced plans on Monday to close at least three factories in Germany and cull tens of thousands of jobs.- Retaliatory moves -Talks continue between the EU and China, and the duties can be lifted if they reach a satisfactory agreement, but officials on both sides have pointed to differences.Discussions have been focused on minimum prices that would replace the duties and force carmakers in China to sell vehicles at a certain cost to offset subsidies.”We remain open to a possible alternative solution that would be effective in addressing the problems identified and WTO-compatible,” Dombrovskis said.The Chinese Chamber of Commerce to the EU urged Brussels and Beijing “to accelerate talks on establishing minimum prices and, ultimately, to eliminate these tariffs”.The EU could now face Chinese retaliation, with Beijing already saying on October 8 it would impose provisional tariffs on European brandy.Beijing has also launched probes into EU subsidies of some dairy and pork products imported into China.Trade tensions between China and the EU are not limited to electric cars, with Brussels also investigating Chinese subsidies for solar panels and wind turbines.The EU is not alone in levying heavy tariffs on Chinese electric cars.Canada and the United States have in recent months imposed much higher tariffs of 100 percent on Chinese electric car imports.burs-pfc/smw

Dressed in a pristine white knit top, Robyn Qiu cut an incongruous figure in her parents’ dusty, hangar-like metal hardware factory in eastern China as she gestured excitedly while an assistant filmed her on a smartphone.The 29-year-old is one of many second-generation factory owners fighting to elevate the country’s manufacturing sector, pitting digital native skillsets against the rising costs and geopolitical tensions pushing clients abroad.Qiu said she grew up with “the noise of machines running day and night”, but working in manufacturing was not always her first choice.When Qiu was a child, her parents encouraged her to aim for a white-collar office job far from the dust and din of the factory floor.”Even when they were starting the factory, their goal for me, their expectation for me is to really get a good education and break out of the cycle of farmers,” Qiu said of her parents, who come from agricultural communities.But after years spent working in consulting, the Yale-educated Qiu now feels she has “this very strong responsibility to give back to manufacturing”.Qiu has set up a marketing business that directly connects factories with foreign audiences, through videos posted on Instagram and TikTok, which in China can only be accessed using a VPN.It’s a stark contrast from the way earlier generations conducted business, often with many middlemen and at the mercy of major buyers.In her videos, a cheerful Qiu speaks in fluent English, narrating as she buys street snacks in Shanghai or listing China’s key manufacturing zones while walking along a factory assembly line.- Manufacturing woes -Qiu’s parents, who founded the factory in the 1990s, were part of a massive wave of entrepreneurship that marked the first decades of China’s reform and opening up, when the country transformed into the world’s factory — and eventually, its second largest economy.However, rising wages in China and geopolitical tensions with trade partners including the United States have made alternative locations such as Cambodia and Bangladesh increasingly attractive to clients.The Qius lost major customers in the 2010s after refusing an offer to move their production to Cambodia.Flagging domestic demand in recent years has further weighed on the sector, with the official factory activity index in China contracting for five months in a row since May.The Qius have adapted — they recently purchased more advanced equipment to automate more of the manufacturing process.They are also experimenting with making their own products, laser levels for construction use, rather than only making parts for clients.Qiu said she sees the supply chain as a pyramid, with international brands at the top and raw material suppliers at the bottom.”China is in the middle,” she said. And now, “either we go up or we will go down”.- Being seen -Rose Law, the daughter of a cosmetics factory owner in southern Guangdong province, echoed many of Qiu’s thoughts, telling AFP her personal goals include “being able to have a more positive impact on the industry”.She is overseeing the development of product brands for the family business —- a step up the supply chain from originally making other brands’ goods. Law runs her own shampoo brand, with packaging and formulas inspired by traditional Chinese herbal remedies.”In my parents’ generation, all industries were new, and everyone in various sectors was competing from a similar starting line,” Law told AFP.Now, she sees creating brand loyalty rather than remaining an anonymous supplier as a way to keep orders stable and profitable.”In a market with oversupply, being seen and trusted is extremely important,” she said — and social media is an important way to gain that crucial visibility. – Online success -Qiu said the reaction to her videos has been “amazing”, with more than 500 buyers contacting her since May this year, and more than 150,000 users following her Instagram page.Her online success is mirrored by other “Changerdai”, the Chinese name for second-generation factory owners — a play on “Fuerdai”, a phrase used to describe often idle scions of generational wealth. Changerdai content has gone viral both at home and abroad, albeit sometimes as inadvertent memes.On Instagram, Guangzhou-based LC Sign has drawn half a million followers through videos in which a man, “Tony”, shows off LED signs and does impressions of former US president Donald Trump.On domestic platforms, a six-episode short video drama called “The Empire of Towel” — made by a towel factory Changerdai — has billions of views. Nowadays, “if you want to do marketing, you want to get people’s attention, you have to invest in short videos”, said Qiu.

The EU on Tuesday decided to impose hefty tariffs on Chinese-made electric cars after an anti-subsidy probe concluded Beijing’s support undercut European automakers. The extra taxes have been controversial, with strong opposition from Germany and Hungary amid fears of provoking China’s ire and setting off a bitter trade war.Beijing previously slammed the European Union’s “unfair” and “unreasonable protectionist practices” during the probe.”By adopting these proportionate and targeted measures after a rigorous investigation, we’re standing up for fair market practices and for the European industrial base,” EU trade chief Valdis Dombrovskis said in a statement.”We welcome competition, including in the electric vehicle sector, but it must be underpinned by fairness and a level playing field,” he said.But Germany’s main auto industry association warned the tariffs heighten the risk of “a far-reaching trade conflict”, while a Chinese trade group slammed the “politically motivated” decision even as it urged dialogue between the two sides.The duties will come on top of the current 10 percent on imports of electric vehicles from China.The decision became law following its publication in the EU’s official journal later on Tuesday and the duties will enter into force from Wednesday.Brussels’ probe found that China’s state subsidies were unfairly undercutting European automakers. Once they come into effect, the tariffs will be definitive and last for five years.The extra duties also apply, at various rates, to vehicles made in China by foreign groups such as Tesla — which faces a tariff of 7.8 percent.Chinese car giant Geely — one of the country’s largest sellers of EVs — faces an extra duty of 18.8 percent, while SAIC will be hit with the highest at 35.3 percent.- Ailing companies -The tariffs do not have the support of the majority of the EU’s 27 member states but in a vote early this month, the opposition was not enough to block them – which would have required at least 15 states representing 65 percent of the bloc’s population.The EU launched the probe in a bid to protect its automobile industry, a major player that provides jobs to around 14 million people.France, which pushed for the investigation, welcomed the decision.”The European Union is taking a crucial decision to protect and defend our trade interests, at a time when our car industry needs our support more than ever,” French Finance Antoine Armand said in a statement.But Europe’s bigger carmakers, including German auto titan Volkswagen, have criticised the EU’s approach and have urged Brussels to resolve the issue through talks.The extra tariffs are “a step backwards for free global trade and thus for prosperity, job preservation and growth in Europe,” the German Association of the Automotive Industry’s president Hildegard Mueller said on Tuesday after the announcement.Volkswagen, which has been hit hard by rising competition in China, has previously said the tariffs would not improve the competitiveness of the European automotive industry.That warning came weeks before the ailing giant announced plans on Monday to close at least three factories in Germany and cull tens of thousands of jobs.- Retaliatory moves -Talks continue between the EU and China and the duties can be lifted if they reach a satisfactory agreement, but officials on both sides have pointed to differences.Discussions have been focused on minimum prices that would replace the duties and force carmakers in China to sell vehicles at a certain cost to offset subsidies.”We remain open to a possible alternative solution that would be effective in addressing the problems identified and WTO-compatible,” Dombrovskis said, referring to the World Trade Organization.The Chinese Chamber of Commerce to the EU urged Brussels and Beijing “to accelerate talks on establishing minimum prices and, ultimately, to eliminate these tariffs”.The EU however faces China’s retaliation. China already said on October 8 it would impose provisional tariffs on brandy imported from the EU.Beijing has also launched probes into EU subsidies of some dairy and pork products imported into China.Trade tensions between China and the EU are not limited to electric cars, with Brussels also investigating Chinese subsidies for solar panels and wind turbines.The EU is not alone in levying heavy tariffs on Chinese electric cars.Canada and the United States have in recent months imposed much higher tariffs of 100 percent on Chinese electric car imports.burs-raz/yad

Global stock markets diverged Tuesday as many investors sat on their hands ahead of a slew of US economic data releases and tech earnings.In New York, the Nasdaq shot to a fresh record while the Dow pulled back. Bourses closed mostly lower in Europe.Shares of Google parent Alphabet rose in after-hours trading following its earnings report, which will be succeeded later this week by releases from Apple, Microsoft and others. “Tech stocks are catching a bid,” said Art Hogan of B. Riley Wealth Management, adding that there had been “more good news than bad” Tuesday.Hogan pointed to another decline in oil prices as supportive for stock prices, and noted that US Treasury bond yields were stable.The Conference Board’s consumer confidence index jumped sharply to 108.7 in October, up from a revised 99.2 last month, another positive for stocks.The US government will release third quarter GDP growth estimates Wednesday, as well as inflation data Thursday. The closely watched monthly labor market report is due Friday. Together, they should provide more clues about the health of the world’s largest economy and the direction of the Federal Reserve’s interest rate policy.Yields on 10-year US Treasuries have inched up to above 4.3 percent this week, the highest since early July, suggesting that some market participants are increasingly counting on more limited rate cuts from the Federal Reserve.Among individual companies, Boeing climbed 1.5 percent after reporting that its stock offering was over-subscribed. The London, Paris and Frankfurt markets all closed lower Tuesday while Asian markets ended mixed. London shed 0.8 percent as investors awaited the first budget of Britain’s new Labour government on Wednesday, expected to include tax raises on businesses. Adidas shares were up almost 4 percent in Frankfurt after the sportswear giant again raised its full-year revenue outlook.  Oil prices initially recovered some of Monday’s losses after the US government said it would add to its Strategic Petroleum Reserve, but then resumed their recent slide on expectations of a coming over-supply.  In Asia, Tokyo and Hong Kong stocks climbed but Shanghai and Singapore retreated.Investors are awaiting the Bank of Japan’s rate decision later this week, with the central bank expected to stand pat following two hikes earlier this year.Focus is also on a key political meeting in Beijing next week, with investors hoping for details of an expected major stimulus plan to support China’s struggling economy.- Key figures around 2040 GMT -New York – Dow: DOWN 0.4 percent at 42,233.05 (close)New York – S&P 500: UP 0.2 percent at 5,832.92 (close) New York – Nasdaq Composite: UP 0.8 percent at 18,712.75 (close) London – FTSE 100: DOWN 0.8 percent at 8,219.61 (close)Paris – CAC 40: DOWN 0.6 percent at 7,511.11 (close)Frankfurt – DAX: DOWN 0.3 at 19,478.07 (close)Tokyo – Nikkei 225: UP 0.8 percent at 38,903.68 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 20,701.14 (close)Shanghai – Composite: DOWN 1.1 percent at 3,286.41 (close)Euro/dollar: UP at $1.0816 from $1.0812 on MondayPound/dollar: UP at $1.3010 from $1.2972Dollar/yen: DOWN at 153.57 yen from 153.79 yenEuro/pound: DOWN at 83.13 pence from 83.34 penceBrent North Sea Crude: DOWN 0.4 percent at $71.12 per barrelWest Texas Intermediate: DOWN 0.3 percent at $67.21 per barrel

Global stock markets diverged Tuesday as many investors sat on their hands ahead of a slew of US economic data releases and tech earnings, and as bond yields rose.In midday trading in New York, the Dow was lower, the wider S&P little changed, and the tech-heavy Nasdaq higher. Shares closed mostly lower in Europe.Alphabet reports earnings after the market closes and many investors are awaiting to hear what the Google-parent has to say before taking any bets.”When a mega-cap stock reports earnings, the stock market pays extra attention not only to the report itself, but also to any guidance,” said Patrick O’Hare, an analyst at Briefing.com.In total, five of the “Magnificent Seven” US tech giants will report over the next three days, including Amazon, Apple, Facebook-parent Meta, and Microsoft.On the economic front, the US government will release third quarter GDP growth estimates Wednesday, as well as inflation data Thursday and the closely watched monthly labour market report Friday. Together, they should provide more clues about the health of the world’s largest economy and the direction of the Federal Reserve’s interest rate policy.Meanwhile, yields on 10-year US Treasuries have inched up to above 4.3 percent this week, the highest since early July, indicating that some market participants are increasingly counting on more limited rate cuts from the Federal Reserve.The higher rates, which hurt company earnings and deter investors from taking money out of savings accounts to invest in the stock market, could also reflect unease about the deficit spending plans of both candidates in next Tuesday’s presidential elections, said Joe Mazzola, a strategist at Charles Schwab.”The relentless climb in Treasury yields continues and threatens to overshadow any news, good or bad, on the earnings front,” he said. Boeing was up almost two percent after reporting that its stock offering was over-subscribed. The London, Paris and Frankfurt stock markets all closed lower Tuesday while Asian markets ended mixed. London shed 0.8 percent as investors awaited the first budget of Britain’s new Labour government on Wednesday, expected to include tax rises on businesses. Adidas shares were up almost 4 percent in Frankfurt after the sportswear giant again raised its full-year revenue outlook.  Oil prices initially recovered some of Monday’s losses after the US government said it would add to its Strategic Petroleum Reserve, but then resumed their recent slide on expectations of a coming over-supply.  Bitcoin rose above $72,000 to levels last seen in June and close to its record highs on expectations that Donald Trump, who has sought the support of the crypto-currency world, will win next week’s elections. “Trump’s campaign appears to be building upside momentum, and that’s going down well with the crypto bros,” said David Morrison, analyst at Trade Nation. In Asia, Tokyo and Hong Kong stocks climbed but Shanghai and Singapore retreated.Investors are awaiting the Bank of Japan’s rate decision later this week, with the central bank expected to stand pat following two hikes earlier this year.Focus is also on a key political meeting in Beijing next week, with investors hoping for details of an expected major stimulus plan to support China’s struggling economy.- Key figures around 1640 GMT -New York – Dow: DOWN 0.2 percent at 42,281.58 pointsNew York – S&P 500: UP 0.1 percent at 5,828.99 New York – Nasdaq Composite: UP 0.4 percent at 18,642.55 London – FTSE 100: DOWN 0.8 percent at 8,219.61 (close)Paris – CAC 40: DOWN 0.6 percent at 7,511.11 (close)Frankfurt – DAX: DOWN 0.3 at 19,478.07 (close)Tokyo – Nikkei 225: UP 0.8 percent at 38,903.68 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 20,701.14 (close)Shanghai – Composite: DOWN 1.1 percent at 3,286.41 (close)Euro/dollar: DOWN at $1.0797 from $1.0815 on MondayPound/dollar: UP at $1.2994 from $1.2972Dollar/yen: UP at 153.54 yen from 153.24 yenEuro/pound: DOWN at 83.09 pence from 83.37 penceBrent North Sea Crude: DOWN 0.5 percent at $71.07 per barrelWest Texas Intermediate: DOWN 0.4 percent at $67.12 per barrel

Global stock markets mostly slipped Tuesday ahead of a slew of US economic data releases and tech earnings, and as bond yields rose.The main US stock indexes were slightly lower after the start of trading, giving up their gains from Monday. Shares were also mostly lower in Europe. Yields on 10-year US Treasuries have inched up to above 4.3 percent this week, the highest since early July, indicating that market participants are increasingly counting on more limited rate cuts from the Federal Reserve.The higher rates, which hurt company earnings and deter investors from taking money out of savings accounts to invest in the stock market, could also reflect unease about the deficit spending plans of both candidates in next Tuesday’s presidential elections, said Joe Mazzola, a strategist at Charles Schwab.”The relentless climb in Treasury yields continues and threatens to overshadow any news, good or bad, on the earnings front,” he said. Alphabet reports earnings after the market closes and many investors are awaiting to hear what the Google-parent has to say before taking any bets.”When a mega-cap stock reports earnings, the stock market pays extra attention not only to the report itself, but also to any guidance,” said Patrick O’Hare, an analyst at Briefing.com.In total, five of the “Magnificent Seven” US tech giants will report this week, including Amazon, Apple, Facebook-parent Meta, and Microsoft.On the economic front, the US government will release third quarter GDP growth estimates Wednesday, as well as inflation data Thursday and the closely watched monthly labour market report Friday. Together, they should provide more clues about the health of the world’s largest economy and the direction of its Fed’s interest rate policy.Major European stock markets were lower in mid-afternoon trading while Asian markets ended mixed. London shed 0.5 percent as investors awaited the first budget of Britain’s new Labour government on Wednesday, expected to include tax rises on businesses. Adidas shares were up more than 2 percent in Frankfurt after the sportswear giant again raised its full-year revenue outlook.  Oil prices recovered some of Monday’s losses after the US government said it would add to its Strategic Petroleum Reserve. Crude prices had tumbled at the start of the week on relief that Israel’s weekend strikes on Iran spared the country’s energy infrastructure. Bitcoin rose above $71,000 to levels last seen in June on expectations that Donald Trump, who has sought the support of the crypto-currency world, will win next week’s elections. “Trump’s campaign appears to be building upside momentum, and that’s going down well with the crypto bros,” said David Morrison, analyst at Trade Nation. In Asia, Tokyo and Hong Kong stocks climbed but Shanghai and Singapore retreated.Japanese shares built on the previous day’s gains as cheaper oil and the weaker yen outweighed uncertainty after Japan’s ruling coalition fell short of a majority in Sunday’s general election.Investors are awaiting the Bank of Japan’s rate decision later this week, with the central bank expected to stand pat following two hikes earlier this year.Focus is also on a key political meeting in Beijing next week, with investors hoping for details of an expected major stimulus plan to support China’s struggling economy.The People’s Bank of China on Monday rolled out a new lending tool to inject liquidity into the market.- Key figures around 1340 GMT -New York – Dow: DOWN 0.4 percent at 42,212.88 pointsNew York – S&P 500: DOWN 0.4 percent at 5,802.82 New York – Nasdaq Composite: DOWN 0.2 percent at 18,524.18 London – FTSE 100: DOWN 0.5 percent at 8,247.49 Paris – CAC 40: DOWN 0.2 percent at 7,544.29Frankfurt – DAX: DOWN 0.2 at 19,485.94Tokyo – Nikkei 225: UP 0.8 percent at 38,903.68 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 20,701.14 (close)Shanghai – Composite: DOWN 1.1 percent at 3,286.41 (close)Euro/dollar: DOWN at $1.0783 from $1.0815 on MondayPound/dollar: DOWN at $1.2970 from $1.2972Dollar/yen: UP at 153.70 yen from 153.24 yenEuro/pound: DOWN at 83.12 pence from 83.37 penceBrent North Sea Crude: UP 0.7 percent at $71.95 per barrelWest Texas Intermediate: UP 0.8 percent at $67.89 per barrel

Global commodity prices should fall to a five-year low next year thanks to a huge oil glut, the World Bank said Tuesday, pointing to oversupply and to flat demand from China.”Next year, the global oil supply is expected to exceed demand by an average of 1.2 million barrels per day,” the Bank announced in its latest report on global commodity markets, adding that this scale of oversupply has been exceeded only twice before, in 1998 and 2020. The expected oil glut “is so large that it is likely to limit the price effects even of a wider conflict in the Middle East,” the Bank said. It blamed the expected oversupply partly on a “major shift” underway in China, where demand for oil has flatlined on the back of rising electric vehicle sales, demand for trucks running on liquified natural gas (LNG), and a slowdown in industrial production. The Bank said it also expects several countries not in the Organization of Petroleum Exporting Countries or its allies (OPEC+) “to ramp up oil production,” fueling the oversupply and helping to push down global commodity prices by almost 10 percent by the end of 2026.But despite the sharp decline, overall commodity prices will likely remain around 30 percent above their level in the five years before the Covid-19 pandemic. “Falling commodity prices and better supply conditions can provide a buffer against geopolitical shocks,” World Bank chief economist Indermit Gill said in a statement. “But they will do little to alleviate the pain of high food prices in developing countries, where food-price inflation is double the norm in advanced economies,” he added.The World Bank expects food prices to fall by nine percent this year, and by an additional four percent in 2025, leaving them stuck around 25 percent above the level they were at between 2015 and 2019. Meanwhile, energy prices are predicted to drop by six percent next year, and by a further two percent in 2026.

Most major global stock markets rose on Tuesday with investors looking ahead to the release of US economic data and the earnings reports of tech titans this week.Oil prices rebounded after a sharp fall the previous day on relief that Israel’s strikes on Iran spared the country’s energy infrastructure.Concerns in the oil market have now shifted back to focus on potential oversupply in 2025 and a slowdown in demand from China, the world’s largest oil importer, according to analysts.US stocks closed higher Monday, boosted by the cheaper oil, and as investors look ahead to a busy week of economic indicators with the market already hovering near record highs.The US government will release its third quarter GDP growth estimate this week, as well as its closely watched monthly labour market report, which will indicate the health of the world’s largest economy.Investors are also eyeing the earnings reports of five of the “Magnificent Seven” US tech giants due this week, including Google-parent Alphabet, Amazon, Apple, Facebook-parent Meta, and Microsoft.”Although any market focus on earnings will rapidly be diverted to next week’s presidential election and Federal Reserve meeting,” said Danni Hewson, head of financial analysis at AJ Bell.Major European stock markets were in the green in late morning trading while Asian markets ended mixed. London edged up around 0.1 percent as investors awaited the first budget of Britain’s new Labour government on Wednesday, expected to include tax rises on businesses.Shares in banking giant HSBC rose around four percent, leading gains on London’s FTSE 100, after it reported a strong set of earnings that beat profit expectations. Meanwhile, shares in British oil and gas giant BP dropped one percent after the company reported a slump in profits on weak oil trading and refining margins, despite beating analyst expectations.In Asia, Tokyo and Hong Kong stocks climbed but Shanghai and Singapore retreated.Japanese shares built on the previous day’s gains as cheaper oil and the weaker yen outweighed uncertainty after Japan’s ruling coalition fell short of a majority in Sunday’s general election.Investors are awaiting the Bank of Japan’s rate decision later this week, with the central bank expected to stand pat following two hikes earlier this year.Focus is also on a key political meeting in Beijing next week, with investors hoping for details of an expected major stimulus plan to support China’s struggling economy.The People’s Bank of China on Monday rolled out a new lending tool to inject liquidity into the market.”Beijing hopes this tool will prop up market sentiment,” said Stephen Innes, analyst at SPI Asset Management.”China’s economic engine has been sputtering with soft demand and lacklustre growth data, and with the potential shake-up of the US election looming enormous, stability in the financial markets is critical for Beijing,” he added.- Key figures around 1050 GMT -London – FTSE 100: UP 0.1 percent at 8,296.06 pointsParis – CAC 40: UP 0.5 percent at 7,593.27Frankfurt – DAX: UP 0.4 at 19,599.06Tokyo – Nikkei 225: UP 0.8 percent at 38,903.68 (close)Hong Kong – Hang Seng Index: UP 0.5 percent at 20,701.14 (close)Shanghai – Composite: DOWN 1.1 percent at 3,286.41 (close)New York – Dow: UP 0.7 percent at 42,387.57 (close)Euro/dollar: DOWN at $1.0808 from $1.0815 on MondayPound/dollar: UP at $1.2983 from $1.2972Dollar/yen: UP at 153.37 yen from 153.24 yenEuro/pound: DOWN at 83.27 pence from 83.37 penceBrent North Sea Crude: UP 1.0 percent at $71.70 per barrelWest Texas Intermediate: UP 1.1 percent at $68.06 per barrel