SAN FRANCISCO (AFP) – Leaders of Asia-Pacific economies want to boost output with an eye on issues like reducing inequality and protecting the environment, United States (US) Treasury Secretary Janet Yellen said on Monday.

Her comments at a press conference come at the end of talks with finance ministers of the 21-member Asia-Pacific Economic Cooperation (APEC) forum.

Citing legislation like the Inflation Reduction Act – a signature achievement of US President Joe Biden – Yellen told reporters “APEC economies recognise the potential of this strategy and are pursuing similar policies.”

Economic development and environmental action need to work together if the world is to combat global warming, Yellen said.

“We need to further improve our long-term economic outlook by boosting labor supply, innovation, and infrastructure investment, in ways that are also sustainable and reduce inequality,” Yellen said in San Francisco.

After several years focused on post-pandemic recovery, 2023 was a “pivotal year” for APEC, said Yellen, a time where governments could refocus on “advancing fiscal reforms to build our economies over the long run.”

But economic development cannot be separated from the immediate need to wean humanity off planet-warming energy sources, she said, noting that less wealthy countries needed help to make the leap.

“We’ve discussed how to finance efficient and effective energy transitions while supporting the individuals and communities who are most vulnerable,” she said, referencing as an example the Just Energy Transition Partnerships (JETP) in Vietnam and Indonesia.

These agreements define conditions for rich countries to commit to financially assisting the energy transition of developing countries.

The JETP for Indonesia, the largest economy in Southeast Asia, was unveiled last year. It provides public and private funding of up to USD20 billion in exchange for capping emissions from the electricity sector by 2030 and reaching zero emissions in 2050.

REDUCING INEQUALITY

At the end of talks on Monday, Yellen also noted that efforts to build a stable economic relationship with China are moving “along the right path”.

She said leaders are focusing on “unlocking the flow of sustainable finance” as well, like by exploring ways to encourage the development of credible climate commitments and to create effective voluntary carbon markets.

Not all financing systems are equal, Yellen said earlier Monday, noting that the markets for carbon credits need to be examined for ways to improve their integrity.

Carbon credits, which allow companies to offset their carbon dioxide emissions, effectively permitting them to claim a heavily-polluting product is “carbon neutral”, are increasingly coming under the microscope, amid claims by critics that they amount to greenwashing.

Besides working with the private sector and international financial institutions, Yellen added, “There is also commitment to continued work on the responsible development of digital assets.”

Digital assets technologies carry risks, which calls for regulation, she noted. Such assets include unbacked crypto-assets and central bank digital currencies.

Leaders of the bloc will gather in San Francisco for a summit later in the week.

LONDON (AFP) – Stock markets struck a mixed note yesterday as caution prevailed before key United States (US) inflation data, which could spell major implications for the Federal Reserve’s interest-rate plans.

London stocks edged lower as official data showed United Kingdom (UK) wages rose faster than inflation, reigniting concerns that British interest rates could remain at multi-year highs for longer than thought, or even increase further.

Official data, however, is expected to reveal today a sharp fall in British annual inflation.

In the eurozone, Frankfurt and Paris gained approaching the half-way stage, after a similarly mixed showing in Asia. Wall Street’s three main bourses provided a tepid lead as traders bided their time before the closely watched consumer price index (CPI) report, as well as other key figures including retail sales and jobless claims.

Oil prices won further support from an upbeat market outlook from the OPEC cartel of crude producers, while the dollar wavered.

ON EDGE OF SEATS

“Investors are on the edge of their seats, waiting for the latest scoop on US inflation data to take a fresh direction in both stock and bond markets,” added SwissQuote analyst Ipek Ozkardeskaya.

CPI is forecast to have hit 3.3 per cent in October, down from 3.7 per cent in September, according to a Bloomberg survey of economists. But that is still well above the Fed’s two per cent target.

A number of Fed decision-makers are also lined up to make speeches, which will be pored over for their views on the central bank’s best course of action as they try to bring prices under control without tipping the economy into recession. There is a general consensus that they have already hit their peak in terms of rates, having brought inflation down from more than nine per cent last year, though officials have left the door open to another hike.

“Investors are fully aware that fluctuations in inflation, especially top-side beats, are an ongoing risk to markets,” said analyst Stephen Innes at SPI Asset Management.

“It is too early to completely dismiss the possibility of a hike in December (or January).”

Other analysts pointed out that policymakers have reasserted their determination to bring inflation to heel and would keep borrowing costs elevated for some time, even if they do not lift again.

Meanwhile, there are hopes that this week’s upcoming meeting between US President Joe Biden and Chinese leader Xi Jinping could ease tensions between the economic superpowers and give a much-needed boost to markets.

DUBAI (AP) – Long-haul carrier Emirates signaled yesterday it will hold off on a major purchase of Airbus A350 aircraft over concerns about their Rolls Royce engines, marking a major blow for the European manufacturer as it hopes to close the sale during the Dubai Air Show this week.

Emirates President Tim Clark’s comments to journalists at the show came the day after his airline announced a USD52 billion purchase with Airbus’ rival Boeing Co, while its sister airline FlyDubai bought another USD11 billion of aircraft from Boeing.

Meanwhile, Ethiopian Airlines said it was buying 31 aircraft from Boeing, including 20 737 MAX aircraft in a sign of renewed confidence in the single-aisle aircraft by the carrier after it suffered a deadly crash in 2019 with the airplane that led to its worldwide grounding.

Airbus has yet to strike a major deal at the show, which comes as global airlines like Emirates have bounced back from the lockdowns of the coronavirus pandemic with increased global demand for travel.

In his comments to journalists at the Emirates chalet on the runway of Al Maktoum International Airport, Clark raised concerns about the maintenance required for the Rolls Royce engines on the A350.

“If the engine was doing what we want it to do… then it would re-enter the mix of assessment for our fleet plan,” Clark said.

ANN/VIET NAM NEWS – Less than positive business results in the nine months of 2023 have caused many businesses to lower the year’s target, with some expecting losses.

The general picture of business results showed that the headwind of global economic recession has significantly affected the Vietnamese business environment.

Most pillar industries, such as bank, real estate, construction materials, fertilisers and exports, continue to struggle and even face negative business performances, leading some to promptly adjust the yearly business plans.

In particular, the seafood exporter Sao Ta Food JSC has decided to lower its 2023 business targets after announcing its third quarter financial statements.

The company adjusted its total revenue target to VND4.87 trillion (USD200 million), down 25 per cent from the previous forecast, while profit after tax decreased by 25 per cent to VND300 billion.

Sao Ta did not detail the reason and said that the adjustment will be presented in its latest General Meeting of Shareholders report.

Similarly, Vietnam National Textile & Garment Group (Vinatex) plans to lower its 2023 revenue target from VND17.5 trillion to VND16.5 trillion, a decrease of six per cent.

Its profit before tax target was adjusted down to VND370 billion from VND610 billion, equivalent to a fall of 39 per cent. The change in financial results of the textile producer reflects a less bright picture in 2023.

After nine months, Vinatex posted a net revenue of nearly VND12.2 trillion and profit after tax of over VND197.8 billion, a decrease of 14.08 per cent and 81.6 per cent year-on-year, respectively. Net profit reached about VNĐ37 billion, down 94 per cent.

With the new plan submitted to shareholders, Vinatex achieved 70 per cent of the revenue target and 78 per cent of the year’s profit plan.

In the steel industry, after recording consecutive losses, Vietnam Steel Corporation (VNSteel) also asked shareholders to adjust the production and business plan for 2023, reducing its profit before tax expectation to VND1 billion from VND52 billion. Meanwhile, others remained unchanged.

WARSAW (AFP) – Polish trucking representatives said on Monday that the latest talks with Ukrainian officials had failed to end a dispute over what they call unfair competition from the neighbouring country’s businesses.

The hauliers say the easing of EU access rules in the wake of the war in Ukraine has led to an influx of Ukrainian competition, taking a serious toll on their earnings.

In response, Polish truckers began blockades last week of three major border crossings.

On Monday, some of the protesting truckers met with representatives of the Ukrainian and  Polish governments.

“We have not reached an agreement. The Ukrainian side does not take our demands into account,” Rafal Mekler, a leader of a protest in the border town of Dorohusk, said on social media.

Polish transportation companies want to reinstate the use of EU entry permits for Ukrainian trucks, a system waived by the bloc following the war.

A Ukrainian official said on Monday his side would not “back down” and called on Polish truckers to end the blockade immediately. “The absurdity of the demand is that the Polish protesters are not addressing their government, but want Ukraine to apply to the EU for permits,” he added.

Polish truckers are also criticising an electronic registration system for leaving Ukraine once deliveries are complete, resulting in long waits that Mekler said could reach 11 to 12 days.