AFP – Supermarket group Tesco, Britain’s biggest retailer, said yesterday that net profit gained in its first half as cost pressures eased for consumers and companies.
Profit after tax jumped 13 per cent to GBP1.1 billion (USD1.4 billion) in the six months to late August from a year earlier with sales rising as inflation cooled, Tesco said in a statement.
The supermarket giant reduced costs by GBP260 million in the first half and said that it expects to cut them by GBP500 million over the full year.
“We are in good shape, with volume growth delivering strong financial performance,” Tesco chief executive Ken Murphy said in the earnings statement.
The company noted that “sales inflation returned to more normalised levels as cost inflation headwinds eased”.
Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour. PHOTO: BERNAMA
BERNAMA – Malaysia’s strong economic fundamentals are one of the factors supporting the ringgit’s growth, even during times of currency weakness, said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour.
He highlighted that the country’s projected economic growth rate of four to five per cent for this year is also a positive factor that will contribute to the strengthening of the ringgit, moving forward.
“In terms of our economic growth, the financial sector, and so on, we are indeed strong. Currently, these fundamentals remain solid and will only get stronger.
“The economic outlook is positive. These two factors are driving the appreciation of the ringgit,” he said during Astro Awani’s ‘Fiscal and Monetary Strategies: Key to Strengthening Malaysia’s Economy’ programme, aired yesterday.
The programme also featured Malaysia’s Finance Minister II Datuk Seri Amir Hamzah Azizan.
Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour. PHOTO: BERNAMA
Abdul Rasheed added that, aside from macroeconomic factors, the structural reforms being implemented by the MADANI government also play a critical role in bolstering the ringgit’s strength.
“This is where I have to congratulate the government for undertaking this painful policy reform which is important for the nation as it will strengthen us in the future.
“Investors see our commitment to these structural changes, and it has contributed to the ringgit’s appreciation. It will continue to drive further support for the currency in the future,” he said.
He further emphasised that Malaysia’s monetary policy, particularly in determining the overnight policy rate (OPR), is guided by domestic factors, namely, inflation and the country’s growth prospects.
“Our monetary policy must be aligned with domestic conditions, not external events. Even if the United States (US) Federal Reserve raises or lowers interest rates, it doesn’t provide any direct indication on how we manage monetary policy in Malaysia.
“What we focus on is the impact of changes in the US or other countries on our inflation outlook and economic growth. Currently, at three per cent, the OPR is supportive of economic growth,” he added.
XINHUA – The seasonally adjusted S&P Global Singapore Purchasing Managers’ Index (PMI) was 56.6 in September, marking a continued improvement in private business conditions for 19 straight months, the S&P Global said yesterday.
The growth rate eased to a three-month low but remained marked, it added.
The accumulation rate was the most pronounced in eight months, partly due to supply constraints. Inventory levels also declined amid a worsening of supply delays.
Input prices continued climbing last month as firms reported higher raw materials, transport and labour costs, but at a moderate pace from August.
Though easing from an over three-year peak in August, the confidence levels among Singaporean private sector firms remained above the long-run average and reflected hopes for better business activities.
XINHUA – The Lao government has instructed businesses and service providers to pay a higher support allowance to low-wage workers in order to cope with the rising cost of living, reported Xinhua.
Laos’ Ministry of Labour and Social Welfare issued a notice, effective on October 1, urging employers in business and service units to pay a minimum monthly wage of LAK2.5 million (about USD114), according to the ministry’s report on Wednesday.
The minimum wage currently stands at LAK1.6 million (about USD73). However, with the cost of living rising sharply, the government has deemed it necessary to further support workers across the country.
The new wage and allowance increases are part of broader government efforts to help workers cope with the economic pressures caused by the high cost of living and inflation.
Inflation in Laos remains a pressing concern, although it slightly eased to 21.7 per cent in September, down from 24.3 per cent in August.
Meanwhile, high inflation and depreciation of the kip mean that workers are being paid less in real terms, undermining their spending capacity and widely believed to have forced many to seek employment in other countries, leading to worsening domestic labour shortages.
Vendors preparing food at a food stall in a shopping mall in Jakarta, Indonesia. PHOTO: XINHUA
BERNAMA – Director of Financial Services and SOEs of the National Development Planning Agency (Bappenas) Rosy Widyawati stated that the consumption of halal products at the global level in 2027 is projected to reach USD3.1 trillion.
“Muslim spending on syariah products, such as food and beverages, halal fashion, halal cosmetics, and others, is very promising, with an estimated value of USD3.1 trillion in 2027,” Widyawati said in a statement this week.
In a live broadcast on YouTube titled ‘Acceleration Towards Golden Indonesia 2024 with MEKSI’, she stated that the government is optimising the potential of the syariah economy through the preparation of the Indonesian Syariah Economic Masterplan (MEKSI) 2025-2029.
According to Widyawati, the development of the syariah economy is important as a new economic engine to realise an average national economic growth of six to seven per cent to become a developed country. To achieve the target, she underscored the need for Indonesia, as the world’s largest Muslim country, to become a producer and not just a consumer.
She remarked that the largest exporters of halal products currently are countries with no Muslim majority such as Brazil, China and India.
“In the future, we must become producers and be able to export,” Widyawati stressed. In addition to preparing for the 2025-2029 MEKSI, she highlighted that the government is developing the syariah economy as stipulated in law number 59 of 2024 on the National Long-Term Development Plan (RPJPN) for 2025-2045 on September 13.
In the RPJPN document, the development of the syariah economy is a separate priority programme to accelerate the progress of the sector, including through downstreaming of the halal industry and strengthening micro, small and medium enterprises to boost export value, she stated.
Widyawati noted that programme development to boost Muslim tourist numbers by improving Muslim-friendly tourism facilities and infrastructure is also considered important.
“We also have a fashion sector. This line must be supported because we believe fashion can contribute a lot,” she added.
Vendors preparing food at a food stall in a shopping mall in Jakarta, Indonesia. PHOTO: XINHUA
Pedestrians walk at Mahmutpasa district in Istanbul, Turkiye. PHOTO: AFP
AFP – Turkish annual inflation slowed less than expected in September to 49.4 per cent, official data showed yesterday, a figure which analysts said could disappoint central bank officials after a series of interest rate hikes. Turkiye’s central bank began to raise rates last year in efforts to battle soaring prices, after President Recep Tayyip Erdogan dropped his opposition to orthodox monetary policy.
The September inflation figure was higher than the 48.1 per cent consumer price increase forecast by Turkish economists cited by local media.
Inflation had reached 52 per cent in August.
“The smaller-than-expected decline in Turkiye’s headline rate to 49.4 per cent year-on-year (y/y) in September will be a disappointment to policymakers at the central bank,” emerging Europe economist Nicholas Farr at the London-based Capital Economics said in a note to clients.
He said the figure showed that a monetary easing cycle was unlikely to start until 2025 – later than most other analysts have been forecasting. Last month, the central bank kept its main interest rate stable at 50 per cent for a sixth consecutive month and said it remained highly attentive to inflation risks.
According to the central bank’s forecast, inflation will ease to 38 per cent at the end of this year, 14 per cent next year and nine per cent in 2026. While inflation will fall further over the coming months, the central bank’s end-year forecast of 38 per cent “looks way out of reach”, Farr said.
He said a particular concern for the central bank would be that, in month-on-month terms, core inflation continued to accelerate.
Inflation increased 2.97 per cent on a monthly basis in September, the Turkish Statistical Institute statistics agency said.
“The disinflation process that began in June is continuing,” Finance Minister Mehmet Simsek commented on X.
Pedestrians walk at Mahmutpasa district in Istanbul, Turkiye. PHOTO: AFP
AFP – Atletico Madrid fell to a humiliating 4-0 Champions League defeat at Benfica yesterday.
Diego Simeone’s side were thoroughly outplayed and outfought in Lisbon and the Portuguese side triumphed emphatically to record a second win in two matches in the competition.
Bruno Lage’s team went ahead through Kerem Aturkoglu’s 13th minute strike, with former Real Madrid winger Angel Di Maria extending the lead from the penalty spot early in the second half.
Alexander Bah headed home the third from a corner in the 75th minute and Orkun Kokcu completed the rout with another penalty late on.
Atletico have now won just one of their last 10 Champions League away matches and barely troubled Benfica at the Estadio da Luz.
Rojiblancos goalkeeper Jan Oblak and defender Axel Witsel endured a tough evening back at their old stomping ground, as Simeone’s team displayed an uncharacteristic lack of grit.
“This is nothing good and I can’t say much more than that — today we weren’t up to it and it was a bad game, the worst game of the season,” Oblak told Movistar.
“We started a first half badly again and in the second we didn’t react like we have in other games.
“Today it’s clear we did not compete in this game, and that can’t be, how come? Tiredness, I don’t know… looking for excuses now has no sense.”
Atletico fought hard to snatch a point from Sunday’s derby draw against rivals Real Madrid but showed little of that spirit yesterday.
It was Atletico’s joint biggest European defeat, tied with five other occasions they have been beaten by the same margin.
“Well done to them, they had a very good game, taking advantage of all the errors we could commit,” a disappointed Simeone told Movistar.
“The truth is they were enormously efficient and they deserved to win, without any doubt… they were better than us in every moment.”
A person looks at an electronic stock board showing Japan's Nikkei index in Tokyo, Japan. PHOTO: AP
AP – Asian shares were mostly lower yesterday after United States (US) stocks stalled as investors awaited developments in the Middle East.
The US dollar gained against the Japanese yen as officials downplayed the likelihood of an interest rate hike soon.
That helped push Tokyo’s Nikkei 225 index higher. It gained two per cent to 38,552.06, while the dollar traded at JPY146.51, up from 146.41 yen late on Wednesday.
The dollar had been trading around JPY142 after the ruling Liberal Democrats chose Shigeru Ishiba to head the party and succeed Fumio Kishida as prime minister.
Ishiba had expressed support for the central bank’s recent moves to raise its near-zero benchmark interest rate, which stands at around 0.25 per cent.
That led traders to bet that the yen would gain in value.
But after a meeting between Ishiba and Bank of Japan (BOJ) Governor Kazuo Ueda, both officials indicated that the central bank did not view further rate hikes as suitable for the economy at this time.
That prompted a flurry of selling of yen, which benefits big export manufacturers. The meeting between Ishiba and Ueda had not been expected to bring major news, however, “When Ishiba hinted that growing global risks should keep the BOJ firmly grounded, yen bulls hit the exits faster than you can say ‘sayonara‘,” Stephen Innes of SPI Asset Management said.
A person looks at an electronic stock board showing Japan’s Nikkei index in Tokyo, Japan. PHOTO: AP
Lille’s forward Jonathan David challenges Real Madrid’s defender
Eder Militao. PHOTO: AFP
AFP – Real Madrid coach Carlo Ancelotti said criticism of his team was well deserved after their long unbeaten run came to an end in a 1-0 defeat against Lille in France in the Champions League yesterday.
“I am very honest. Criticism of us for today’s game is fair and correct and we have to accept it. We did not play well in this game,” Ancelotti said after Jonathan David’s penalty just before half-time gave Lille the victory they merited.
It was Real’s first defeat in 37 games in all competitions since January and their first in the Champions League since losing to Manchester City in the semi-finals in May 2023.
“This has not happened to us much recently luckily. Our opponents played better than us and deserved to win,” added Ancelotti, whose team beat Borussia Dortmund in last season’s final. “We had chances at the end but we wouldn’t have deserved (a draw). We have to learn from this. There are things we need to work on.”
Ancelotti shrugged off concerns about the potential consequences of the defeat in the new format of the Champions League, which now features 36 teams all together in one pool.
“I think the sadness comes from the feeling given off by the team. You can lose games because this is sport, but the sensations we gave off were not good,” said the Italian.
Madrid had beaten VfB Stuttgart 3-1 in their opening game two weeks ago but join the likes of Barcelona, Paris Saint-Germain, Bayern Munich and Atletico Madrid in having lost one of their first two matches.
Lille’s forward Jonathan David challenges Real Madrid’s defender Eder Militao. PHOTO: AFP
AFP – Colombia said on Wednesday it is seeking USD40 billion in investment to fund its ambitious plans to stop extracting fossil fuels as part of its transition to a low-carbon economy.
The country’s first left-wing president, Gustavo Petro, last year halted all new concessions for oil, coal and gas exploration as part of his government’s commitment to combat climate change.
“We are shifting from rhetoric to practice by creating an investment portfolio that will aim to guide Colombia towards a low-carbon economy,” Environment Minister Susana Muhamad told an international forum in the northern city of Barranquilla.
Seven ministries will this week unveil projects aimed at accelerating Colombia’s progress towards its aim of becoming a net-zero emitter of greenhouse gases by 2050. Petro’s decision to shift away from fossil fuel extraction has caused controversy in the Latin American nation, where oil and gas account for 52 per cent of exports.
The opposition and some trade unions have called for a more gradual energy transition, arguing that a radical shift could tip the economy into recession.
