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China factory activity edges up in December as commodity prices ease

BEIJING (AFP) – Manufacturing activity in China edged up in December, official data showed yesterday, beating expectations as the price of commodities eased and despite sporadic closures due to COVID outbreaks.

The Purchasing Managers’ Index (PMI) – a key gauge of manufacturing activity – in the world’s second-biggest economy rose to 50.3, remaining above the 50-point mark separating growth from contraction.

The data from the National Bureau of Statistics marks a slight increase from last month’s reading of 50.1 and beats expectations from analysts who had broadly predicted a slight decline.

“With the intensification of efforts to stabilise the economy, such as securing supply and stabilising prices… the prices of some commodities have fallen significantly, and the cost pressure on companies has eased,” said NBS statistician Zhao Qinghe.

Factory activity returned to expansion in November after seven months of decline due to power shortages and high raw material prices.

Employees work on the production line assembling diagnostic kits for COVID-19 at a pharmaceutical factory in Nantong in eastern China’s Jiangsu province. PHOTO: AP

The PMI reading contracted below 50 for two months in September and October as the power crunch hit business operations.

Meanwhile, the non-manufacturing business activity index was 52.7 per cent in December, an increase of 0.4 percentage points from the previous month.

The recovery was driven in part by the recuperating air transport sector and hospitality.

Analysts have warned that China’s domestic coronavirus outbreaks will likely continue to weigh on the country’s economy, with sporadic outbreaks – including the ongoing lockdown in the city of Xi’an – hitting consumer confidence and shutting businesses.

The historic northern city of 13 million is a key destination for tourists.

A separate flare-up of cases in late October spread to 21 provinces and prompted sweeping travel restrictions and closures.

The NBS data also showed a 2.8 per cent decrease in the business activity index of the construction industry to 56.3 per cent, over Beijing’s deleveraging crackdown on the bloated property sector.

Zverev eyeing big season after breakout 2021

SYDNEY (AFP) – Alexander Zverev had the best season of his career in 2021 and the world number three said yesterday he plans to do even better in the coming year, starting at the ATP Cup.

The German ace captured his second ATP Finals title in November, producing a brilliant performance to defeat world number two Daniil Medvedev, adding to the Olympic gold medal he won in Tokyo.

That trophy in Turin was his sixth of the year and he is keen to carry the momentum forward, starting with a tough opening clash of 2022 tomorrow against Britain’s 12th ranked Cameron Norrie at the ATP Cup in Sydney.

“It is a great challenge. I will know exactly where I am at after the first few matches,” he said ahead of the 16-team event, which starts today.

Zverev also won the ATP Finals title in 2018, only to have a poor 2019.

But he said he had grown as a player and person since then and expects it to be a springboard for an even better season this time around.

Germany’s Alexander Zverev celebrates after defeating Poland’s Hubert Hurkacz during their first round singles match of the ATP Finals. PHOTO: AFP

“I was a lot younger. I was 21 years old going into the 2019 season. It was my first very big title at the Nitto ATP Finals in 2018,” said Zverev.

“I do feel I’m a little bit of a different player but also I’m a different person, I think. I’ve had a lot more experience on the court, I had a lot more experience outside the court.

“I know how to handle maybe the media a little bit better. I know how to handle pressure maybe a tiny bit better, as well.”

Zverev said the fact that he continued his red-hot Olympic form into the rest of the year boded well for 2022 and that the momentum would help propel him to “have the best season of my career”.

“It’s going to be an exciting year for tennis, because I think the first six months of this (2021) season, Novak (Djokovic) has dominated tennis,” he said.

“He’s won all three Grand Slams, won every big singles title there is.

“But in the last six months of the season, I think the titles were a bit more split. They were split between Novak, Daniil, and myself.”

Germany lost to Medvedev’s Russia in the last four at the ATP Cup in 2021 and Zverev is confident of going at least one better this time alongside team-mates Jan-Lennard Struff, Yannick Hanfmann, Kevin Krawietz, and Tim Puetz.

Their clash with Norrie’s Britain is a re-match of their Davis Cup semi-final in early December, where Krawietz and Puetz won a crucial doubles rubber to send Germany through.

Chinese officials promise groceries for lockdown residents

AP – Chinese officials promised steady deliveries of groceries to residents of Xi’an, an ancient capital with 13 million people that is under the strictest lockdown of a major Chinese city since Wuhan was shut early last year at the start of the pandemic.

China’s Commerce Ministry has contacted nearby provinces to help ensure adequate supplies of everyday necessities, a ministry spokesperson said on Thursday.

State broadcaster CCTV aired a story on Thursday showing building staff assembling free grocery deliveries for the residents of an apartment complex in Xi’an.

The deliveries included a box of 15 eggs, a 2.5-kilogramme bag of rice and some green vegetables.Residents could also expect either some chicken or meat, it said.

Still, some people complained in comments below the segment shared on Weibo, a social media platform, that they have not received the same deliveries in their communities. Many worried if they will be able to obtain fresh vegetables and meat.

Staff carry daily necessities to be delivered to households under closed-off management in Xi’an. PHOTO: AP

This week, authorities tightened restrictions in Xi’an so that people can no longer leave their homes to buy groceries. Previously, residents were allowed to buy food once every two days.

The city is also sealed off, meaning that people cannot leave without special permission.

Xi’an reported 155 new locally transmitted cases on Wednesday, and a total of about 1,000 cases in the latest outbreak.

The numbers pale in comparison to outbreaks elsewhere in the world, but are significant for China, which continues to follow a policy of trying to eradicate the coronavirus.

That has resulted in widespread lockdowns to cut the virus’s spread.

China has reported a total of 101,890 cases and 4,636 deaths since the pandemic began.

Online registration required for overseas-bound students: MoE

Azlan Othman

Students who are going to begin or resume studies abroad must register in advance with the Ministry of Education (MoE) through the Department of Scholarship Management using a web-based application at bit.ly/pendaftarankeluarnegeri, according to a press statement from the ministry.

Self-funding students who have not registered as private students to study abroad can register at bit.ly/pendaftaranprivatestudent, it added. The MoE advises all Bruneian students studying abroad who have not yet made registration to do so to assist the Government in monitoring their well-being during the current COVID-19 pandemic.

On Thursday, Acting Minister of Education Datin Seri Paduka Dr Hajah Romaizah binti Haji Mohd Salleh announced that students leaving the country for educational purposes are required to register with the MoE, starting today.

Oil heads for biggest yearly gains since 2009

THE STRAITS TIMES – Oil prices slid yesterday but were set to post their biggest annual gains in 12 years, spurred by the global economic recovery from the COVID-19 slump and producer restraint, even as infections surged to record highs around the world.

Brent crude futures fell 31 cents, or 0.4 per cent, to USD79.22 a barrel at 0427 GMT, while United States (US) West Texas Intermediate (WTI) crude futures dropped 37 cents, or 0.5 per cent, to USD76.62 a barrel.

Brent is on track to end the year up 53 per cent, while WTI is heading for a 57 per cent gain, the strongest performance for the two benchmark contracts since 2009, when prices soared more than 70 per cent.

Both contracts touched their 2021 peak in October with Brent at USD86.70 a barrel, the highest since 2018, and WTI at USD85.41 a barrel, the loftiest since 2014.

Global oil prices are expected to rise further next year as jet fuel demand catches up.

The sun sets behind a pumpjack in Odessa, Texas. PHOTO: AP

“We’ve had Delta and Omicron and all manner of lockdowns and travel restrictions, but demand for oil has remained relatively firm. You can attribute that to the effects of stimulus supporting demand and restrictions on supply,” said CommSec chief economist Craig James.

US health experts warned Americans to prepare for severe disruptions in coming weeks, with infection rates likely to worsen amid increased holiday travel, New Year celebrations and school re-openings following winter breaks.

With oil hovering near USD80, James said he expects the Organisation of the Petroleum Exporting Countries, Russia and allies, together called OPEC+, to stick to their plan to add 400,000 barrels per day of supply each month when they meet on January 4, as they continue to wind back sharp production cuts implemented in 2020.

“I think we will see a lot of pressure on OPEC+ to make sure there’s enough oil being supplied to market,” James said.

‘We lost everything’

ITAPETINGA, BRASIL (AFP) – Carlos Batista da Silva holds his hand above his head, indicating on a wall the level where floodwaters reached inside his northeastern Brazil home.

Although he was warned of the approaching deluge, his house was submerged before he could react as Bahia state faces a heavy cost from the flooding caused by torrential rains that burst two dams and left at least 24 people dead.

“We wanted to take out the furniture but there wasn’t time, we lost everything. The only thing we could save was the television,” da Silva told AFP as he threw out a sofa, armchairs and microwave that were all destroyed.

“My mother also lost everything,” said da Silva, who will only move back into his home “when the sun is hot, and the weather improves”, something that is expected in a few days.

Neighbour Joao Vitor Gomes Santos was also taken by surprise when the water entered his home in Itapetinga.

“The wardrobe, bed, dresser… we lost everything.”

Over 90,000 people have been displaced, with the floods affecting over half a million victims across some 140 municipalities.

An aerial view of houses destroyed by heavy rain in Itambe, Bahia State. PHOTOS: AFP
The floods affect over half a million people across some 140 municipalities

Authorities said it has been the heaviest December rainfall in Bahia in 32 years. In some towns, a month’s worth of rain fell in a matter of hours.

While the waters are receding in some areas, leaving behind mountains of rubbish, in others the risk is increasing due to the opening of floodgates.

Firefighters in Bahia said at least 10 dams are at risk of collapsing as waters rise in several rivers.

Inhabitants of the areas most at risk have been urged to evacuate.

In some parts of the state, help only comes from boats and helicopters.

In total, 44 state highways have been blocked or damaged as a result of the floods.

Meteorologists fear that in the next few days heavy rainfall could reach far more populous states such as Minas Gerais, Rio de Janeiro or Sao Paulo.

BOLSONARO ABSENT

President Jair Bolsonaro on Tuesday authorised a BRL200-million (USD36-million) loan to rebuild infrastructure and roads in five states, including Bahia, which will receive BRL80 million.

Bahia Governor Rui Costa, from the opposition Workers’ Party, said the measure was “insufficient” and called for more resources to tackle the crisis.

On Monday, Costa described the floods as “the worst catastrophe in the history of Bahia”.

On Tuesday he described the scene in his state as a war zone, saying it was too early to estimate how much damage had been done.

Bolsonaro has come under fire for not visiting the affected areas.

While several ministers flew over the devastated zones on Tuesday, Bolsonaro was seen jet-skiing at a beach in the south of the country.

“I hope I won’t have to cut short my holidays,” he told supporters, according to a local website in Santa Catarina.

Leftwing legislator Marcelo Freixo accused him on Twitter of “a lack of compassion”.

Drive-through donations for underprivileged students

Lyna Mohamad

The Ikhwanul Mahabbah Group of RPN Panchor Mengkubau held a donation drive at the residence of its member Shukrinah binti Haji Hanafiah, in Jalan Bukit Sinadur, to ease the burden of orphans at the Panchor Mengkubau National Housing Scheme ahead of the new schooling year.

Some 70 orphans, aged 14 and below from the housing area, received stationery, food and cash from Acting Penghulu of Mukim Mentiri and Village Head of Kampong Sungai Buloh Pengiran Haji Ismail bin Pengiran Haji Ibrahim.

Pengiran Hazlyn bin Pengiran Hashim, in his capacity as the leader of Ikhwanul Mahabbah, said the activity serves as the group’s annual year-end activity with the previous event conducted in collaboration with the RPN Panchor Mengkubau Village Council.

“In light of our country’s COVID-19 situation, we decided to distribute the donations through a drive-through system to prevent the spread of COVID-19,” Pengiran Hazlyn said.

He added that the event garnered the interest of non-governmental organisations as well as the public, particularly residents of the housing area, to contribute to the charity drive.

Contributors purchased items and handed them over to the group to be packed for distribution, while cash donations were collected from the public.

“Insya Allah, the group will continue carrying out charity and community work to aid the government in taking care of the less fortunate,” Pengiran Hazlyn added.

ABOVE & BELOW: Photos show recipients during the drive-through donation by Ikhwanul Mahabbah. PHOTOS: LYNA MOHAMAD

Nadal arrives in Melbourne ahead of Australian Open

MELBOURNE (AFP) – Rafael Nadal revealed yesterday he had arrived in Melbourne ahead of the Australian Open after recovering from coronavirus.

The 35-year-old Spaniard, whose only win at the tournament came in 2009, tweeted a photo of himself on an empty court at Melbourne Park with the comment ‘Don’t tell anyone… … here I am’.

The 20-time Grand Slam champion tested positive for COVID-19 after returning home from an exhibition tournament in Abu Dhabi, saying he had experienced “some unpleasant moments”.

A number of other players who were in Abu Dhabi also tested positive, including Russia’s world number five Andrey Rublev, women’s Olympic champion Belinda Bencic and United States (US) Open champion Emma Raducanu.

Nadal’s arrival will be a boost for the organisers of the first Grand Slam tournament of the season, which starts on January 17.

There are still major doubts over whether world number one Novak Djokovic will play.

The 34-year-old withdrew from the ATP Cup team event days before its start today, heightening doubts over whether he will defend his Australian Open title.

Djokovic, a nine-time champion in Melbourne, has refused to confirm if he has been vaccinated against COVID-19, with all participants needing to be jabbed or have a medical exemption.

The field in Australia has been ravaged by injuries, with superstars Serena Williams and Roger Federer out, along with Dominic Thiem, Jennifer Brady, Karolina Pliskova, Bianca Andreescu and Karolina Muchova.

Rafael Nadal tweeted he has arrived in Melbourne ahead of the Australian Open having recovered from COVID-19. PHOTO: AFP

Gold set for worst performance in six years in 2021

THE STRAITS TIMES – Gold was set for its worst performance in six years, though prices inched up in thin trade yesterday as United States (US) Treasury yields dipped, increasing the bullion’s appeal by reducing its opportunity cost.

Spot gold rose 0.2 per cent to USD1,818.43 per ounce by 1.19am GMT, hovering close to a one-month high hit on December 28, 2021. US gold futures were up 0.2 per cent at USD1,818.

Gold was set for its biggest annual decline since 2015, having fallen four per cent so far this year, as economies recovered from the coronavirus pandemic’s impact, reducing demand for the safe-haven metal.

Benchmark 10-year US Treasury yields dipped from one-month highs on Thursday, with no major catalysts to drive market direction and many traders out before the New Year holiday.

The dollar index moved away from a one-month low as investors looked beyond a surge in Omicron COVID-19 variant cases and favoured riskier currencies. A stronger dollar makes gold more expensive for buyers holding other currencies.

Gold bars are stacked in a vault at the US West Point in New York. PHOTO: AP

Wall Street closed lower on Thursday, retreating late in thin holiday volume from record highs set early in the session on strong US data including a drop in weekly claims for US unemployment benefits.

The dip in jobless claims came even as COVID-19 infections in the US hit a record high for the second day running, Reuters data showed.

Spot silver rose 0.3 per cent to USD23.11 an ounce, platinum gained 0.3 per cent to USD963.92, and palladium fell 0.5 per cent to USD1,956.42.

Silver was on track for its worst year since 2014 with a drop of about 12 per cent. Platinum was down nearly 10 per cent while palladium was headed for its biggest yearly decline since 2015 with a 20 per cent slump.

Sudanese forces fire at anti-coup rally; four killed

CAIRO (AP) – Sudanese security forces fired tear gas and live ammunition at protesters rallying on Thursday in the country’s capital and elsewhere against the October military coup. At least four protesters were killed, a Sudanese medical group said.

The Sudan Doctors Committee tweeted that the fatalities took place in Khartoum’s twin city of Omdurman and that many demonstrators were wounded.

The protests were the latest in near-daily demonstrations across Sudan – despite tightened security measures and closures of bridges and roads – over the October 25 military takeover that upended the country’s fragile transition to democracy.

During the day, thousands marched in Khartoum, beating drums and waving Sudanese flags.

They chanted, “Revolution! The military belong in the barracks!” Demonstrators also hurled stones at security forces and armoured police vehicles from where tear gas was fired.

Similar protests took place in other parts of the country, including the provinces of Kassala and West Darfur, and the coastal city of Port Sudan.

People march during a protest to denounce the October military coup in Khartoum, Sudan. PHOTO: AP

The medical group called on doctors to rush to hospitals in Omdurman to attend to the casualties, saying many were “in critical condition”.

The committee is part of the Sudanese Professionals Association, which spearheaded the mass uprising that led to the ouster of longtime autocrat Omar al-Bashir in 2019. The association said that state-allied militias were intercepting ambulances and medics to prevent them from reaching the wounded.

Thursday’s protests were preceded by a disruption of the mobile Internet, according to advocacy group NetBlocs, a usual tactic employed by the generals since the coup.

“Our position is clear; we are opposed to any negotiations, partnership or compromise” with the military, said Shahinaz Gamal, a protester. “We came out today to bring down this (ruling military) council and to have a civilian democratic government afterwards.”

Despite the Internet disruption, activists posted a few videos showing masked protesters under clouds of gas.

Also, Saudi-owned Al Arabiya television and its Al Hadath news channel reported that Sudanese security forces raided their bureaus in Khartoum and confiscated their equipment during the protests on Thursday. They also said that two of their correspondents along with their camera crew were beaten up by Sudanese forces.

The United States (US) Embassy in Khartoum condemned the killing of four people and injury of dozens during Thursday’s demonstrations. “We also deplore the violent attacks by Sudan’s security services on media outlets and journalists, and urge authorities to protect the freedom of the press,” the embassy tweeted.

Volker Perthes, the United Nations (UN) chief’s special representative for Sudan, said he was “deeply disturbed” by reports of the killings and attacks on the media. “Credible investigations into these violations are necessary,” he tweeted. “All people have the right to express themselves peacefully; media have to report freely.”

Thursday’s casualties bring to at least 52 the death toll in protests triggered by the coup, according to a tally by the physicians committee.

Prime Minister Abdalla Hamdok, a former UN official seen as the civilian face of Sudan’s transitional government, was reinstated last month amid international pressure in a deal that calls for an independent technocratic Cabinet under military oversight led by him.

That deal, however, was rejected by the pro-democracy movement, which insists that power be handed over to a fully civilian government tasked with leading the transition.