Global Pulse

分类： business

  • Kenya anticipates export boom as it awaits crucial tax waiver

    Kenya anticipates export boom as it awaits crucial tax waiver

    Across Kenya’s vibrant agricultural export sector, anticipation has reached a fever pitch as May 1 approaches — the date when China will implement a sweeping zero-tariff policy covering a broad range of eligible African exports. Industry leaders and producers across the country are framing this policy shift as an unprecedented opportunity that could reshape long-standing trade dynamics between Africa and the world’s second-largest economy, opening access to a massive, fast-evolving consumer market that many had only partially tapped into before.

    On March 23, Kenya took its first formal step under the new framework, flagging off an inaugural zero-tariff consignment from the Standard Gauge Railway Nairobi Terminus. According to the country’s Ministry of Investments, Trade and Industry, the shipment included 54 containers loaded with fresh avocados, processed avocado oil, roasted Kenyan coffee, and green beans, bound for the Port of Mombasa before sailing for China. This symbolic departure marked the start of what many hope will be a new era of bilateral trade between the two nations.

    Joel Mwiti Kobia, managing director of Kenyan exporter Nutri Nuts and Fruits, noted that shifting consumer trends in China have already created ideal conditions for African agricultural products to thrive. China’s rapidly expanding middle class, driven by rising incomes, rapid urbanization, and growing public awareness of health and nutrition, is increasingly seeking out premium, nutrient-dense food products. “African products, often positioned as natural, organic, and sustainably sourced, are perfectly placed to meet this growing demand,” Kobia explained.

    Kobia’s own company has already seen explosive growth in Chinese demand for its products, even before the zero-tariff policy took effect. When Nutri Nuts and Fruits began exporting macadamia nuts to China in 2021, it shipped just one 16-metric-ton container. By 2025, annual exports had surged to 120 tons, a clear reflection of how quickly Chinese consumer appetite for Kenyan agricultural goods has grown. With import tariffs set to drop from 15 percent to zero, Kobia projects that exports will more than double again in the near term, potentially hitting 250 tons annually. Beyond boosting corporate revenue, he added, the growth will create new jobs in local processing facilities and raise household incomes for smallholder farmers across Kenya’s production belts.

    Margaret Njoki, head of commercial for fresh and frozen produce at Vertical Agro Group, echoed that optimism, particularly for Kenya’s fast-growing avocado sector. Her company became the first Kenyan firm to export frozen avocados to China in 2021, followed by fresh avocado shipments in 2022. What started as a cautious, small-scale entry into an unfamiliar new market has quickly transformed into a major growth stream, as Chinese demand for Kenyan avocados has skyrocketed over just a few years.

    Currently, Vertical Agro Group exports dozens of containers of avocados to China during peak production season, but Njoki said the real industry breakthrough will come once zero tariffs are implemented. “Right now, we compete with established suppliers from Peru and Mexico, but lower tariffs will let us offer more competitive pricing, allowing us to grow both the volume and quality of our exports to China,” she said. Like Kobia, she emphasized that the benefits will spread across the entire avocado value chain: more farmers will be incentivized to expand avocado production, creating new employment opportunities and lifting rural incomes across the country.

    Even Kenyan tea producers, who have long been sidelined from the Chinese market despite Kenya’s status as one of Africa’s largest tea exporters, are expressing newfound optimism. For decades, Kenya’s top tea export destinations have been European nations and South Asian markets such as Pakistan, with price competitiveness keeping most producers out of China’s large consumer market. That could soon change, according to Kelvin Mbugi of Kenya Tea Packers Limited.

    “Currently, we cannot meaningfully enter the Chinese market because our prices are not competitive,” Mbugu explained. “But with zero tariffs, we will not only be able to deliver our high-quality Kenyan tea — we will also gain a clear pricing advantage.” Kenyan tea exporters are already positioning specialty, health-focused teas to capture Chinese consumer interest: products such as antioxidant-rich purple tea and anti-aging marketed white tea align perfectly with the growing preference for wellness-oriented products among China’s middle class. While the market is still in early stages of development, Mbugi projects that annual Kenyan tea exports to China could gradually climb to 100 tons as consumer awareness grows.

    For larger established exporters such as Kenya Nut Company Limited, the zero-tariff policy opens the door to a strategic shift beyond low-margin bulk commodity exports, toward higher-value branded finished products. Currently, the company exports premium macadamia nuts, dried fruits, and coffee to major global markets, and executives say zero tariffs will make it easier to pursue strategic partnerships to build market share in China’s premium retail segment. Instead of shipping raw unprocessed produce, the company plans to focus on value-added goods such as roasted nuts, packaged healthy snacks, and specialty coffee — products tailored to meet the demands of China’s growing upscale consumer market.

    The opportunities created by the new policy are not limited to traditional food and agricultural exports either. Smaller manufacturers are already exploring entry into China with niche specialty products. Irene Nzovo, a producer of pet food including beef hide dog chews and camel-derived pet products, already has a strong foothold in European and U.S. markets, and said zero tariffs will remove a key barrier to scaling up supplies and reaching more Chinese customers.

    The zero-tariff policy covers 53 African countries that maintain diplomatic relations with China. By eliminating import duties, the framework is designed to deliver mutual benefits: it will lower retail prices for Chinese consumers while boosting the competitiveness of African goods and driving growth in African export volumes.

    Still, industry leaders have highlighted key steps Kenya must take to fully capitalize on the opportunity. Erick Rutto, president of the Kenya National Chamber of Commerce and Industry, emphasized that smallholder farmers and new exporters need targeted training to help them meet China’s strict sanitary and phytosanitary standards, which are required to access the Chinese market. Rutto also called for closer collaboration between the private sector and financial institutions, to make affordable financing accessible to exporters looking to scale up production and increase bulk export capacity.

  • China’s car exports surge as expectations grow for EV pivot on Iran war energy shock

    China’s car exports surge as expectations grow for EV pivot on Iran war energy shock

    Against a backdrop of softening domestic auto demand and shifting global energy markets, China’s passenger car export sector delivered explosive growth in March, data from the China Association of Automobile Manufacturers (CAAM) released Friday shows. Domestic automakers’ aggressive global expansion strategy has driven this sharp uptick, with new energy vehicles (NEVs) leading the charge amid growing consumer interest triggered by volatile fuel prices tied to international conflict.

    Last month, total passenger car exports hit approximately 748,000 units, marking an 82.4% jump from the same period in 2023 and a notable increase from February’s 586,000-unit total. The growth was even more dramatic for new energy passenger vehicles, which include pure battery electric vehicles and plug-in hybrid models. NEV exports soared more than 140% year-on-year to 363,000 units in March, rising 31% from February’s export volume of around 276,000 units.

    Leading domestic automakers, including industry giants BYD and Geely Auto, have ramped up their global outreach in recent quarters, investing heavily in new production facilities outside China and expanding distribution networks across emerging and established markets alike. To date, Chinese auto brands have built meaningful market share across Europe, Latin America, and Southeast Asia, with analysts noting geopolitical developments are poised to further accelerate adoption.

    The ongoing conflict in Iran has sent ripples through global energy markets, pushing fuel prices higher across many regions. While the full impact of this energy shock has not yet been reflected in March’s trade data, industry experts say it has already shifted consumer attitudes toward electric vehicles.

    “In many markets that are structurally well suited for EV adoption, uptake has remained sluggish simply because consumers lacked urgency to make the switch,” explained Chris Liu, a Shanghai-based senior analyst at technology and industry advisory firm Omdia. “A sharp, sustained rise in fuel prices changes that calculation entirely.”

    The push into overseas markets comes at a moment when China’s domestic auto market is facing notable headwinds. This year, the Chinese government rolled back support programs designed to encourage NEV adoption, while cutthroat price competition across domestic brands and a prolonged slump in the real estate sector have eroded consumer willingness to make large-ticket purchases like new vehicles.

    CAAM data confirms that domestic passenger car sales fell 19.2% year-on-year in March, dropping to just under 1.7 million units. That marks the fifth consecutive month of year-over-year declines for domestic sales, putting pressure on automakers to offset slack at home with international growth.

    However, industry analysts remain optimistic about the long-term outlook for Chinese automakers, arguing that strong export growth is more than sufficient to cushion the blow from temporary domestic weakness. “For the overall industry, the overseas market’s sales volume growth is more than enough to offset domestic decline on a full-year basis,” said Paul Gong, head of China autos research at UBS Investment Bank. Gong predicts that total annual passenger car exports by Chinese automakers could grow by 20% or more compared to 2023, a trend that will reshape the global auto landscape for years to come.

  • This coat cost $248 in illegal tariffs. Will he ever get the money back?

    This coat cost $248 in illegal tariffs. Will he ever get the money back?

    When Massachusetts personal trainer Alex Grossomanides ordered a French down jacket last year, he thought he had locked in a solid deal. That excitement quickly faded when a $400 bill for tariffs and processing fees landed in his inbox — a charge that came close to matching the purchase price of the coat itself. The unexpected cost stemmed from a little-known detail: the parka was manufactured in Myanmar, which at the time fell under a 40% US tariff rate, adding $248.04 in duties alone. Months later, the U.S. Supreme Court overturned the controversial 40% tariff and dozens of other levies first introduced by former President Donald Trump, triggering what is set to become the largest tariff refund program in U.S. history. But even as authorities prepare to launch the repayment process, thousands of consumers and small business owners like Grossomanides fear they will never see their money returned.

    The court’s ruling only extends eligibility for refunds to importers who paid the duties directly to U.S. Customs. This narrow scope excludes the vast majority of people who ultimately bore the cost of the tariffs through indirect channels: higher retail prices, hidden processing fees, and supply chain markups. Grossomanides, who paid his tariff through global shipping firm DHL, says he wants to believe he will recoup his funds, but he has received no communication from the company and is not optimistic. “They should be refunding people,” the 37-year-old said. “It’s all my money and I took the hit for it, which I don’t think is fair.”

    In March, the U.S. Court of International Trade ordered U.S. Customs and Border Protection to return the more than $160 billion in duties the federal government collected from the invalidated tariffs, opening the door for roughly 330,000 direct importers to claim back at least a portion of their costs. Fears that the Biden administration would challenge the court order have not come to pass, and customs officials working on the program say the refund portal is scheduled to go live this month, with a progress update due to the Court of International Trade on April 14. Even so, economic analysts warn that fully reversing the financial damage of the tariffs is functionally impossible. Multiple independent studies confirm that most importers already passed the bulk of tariff costs on to consumers in the form of higher prices — a cost shift that the court’s ruling does nothing to address.

    For small businesses across the country, the pain is particularly acute. Sue Johnson, owner of Sue Johnson Lamps, a small lighting design firm based in Berkeley, California, says her business suffered a major blow when the tariffs forced her mica supplier to double the price of the raw material she uses for her Art Deco-inspired lamp designs. Despite the Supreme Court ruling, Johnson says she has no expectation of receiving any compensation for the extra costs she absorbed. “Maybe big direct importers will get repaid, but I have no hope they’re going to refund me,” she said.

    Small importers note that the issue is far more complex than the refund program acknowledges. While many raised prices to offset tariff costs, most could not raise them enough to cover the full expense, eating into already thin profit margins. Beyond direct duty costs, the tariffs triggered a cascade of secondary financial harm: many small businesses took on high-interest debt to cover unexpected duty bills, lost sales from price-sensitive customers, and spent thousands of dollars on administrative work just to navigate the claims process. Kacie Wright, who works for Houghton Horns, a small Texas-based importer of musical instruments, told a forum hosted by small business advocacy group We Pay the Tariffs that even if her firm ultimately receives a refund, it will not make the business whole. “Just making sure our business was lined up to receive a refund has been costly, requiring more than six months of back-and-forth with customs officials to properly register in the agency’s online system,” Wright explained.

    Jared Slipman, chair of the tax department at law firm Obermayer, which advises dozens of small businesses on the refund process, says U.S. Customs has placed the full burden of gathering documentation and filing claims on the claimants themselves. For many small businesses, Slipman says, the administrative requirements are so burdensome that many will conclude the potential payout is not worth the time and cost of applying. Other businesses, he predicts, will be forced to file additional litigation just to recoup the funds they are owed. Most of all, Slipman says, ordinary consumers get the worst end of the deal. “It may very well be the case that this is an orchestrated theft from the American consumer… and that would be very unfortunate,” Slipman said.

    For consumers like James Tak, a 41-year-old Washington resident who paid a $24 tariff fee to UPS last year when he received a shipment of video games as a gift from a friend in Japan, even small charges add up. Tak says he understands that processing refunds for millions of indirect payers would be a logistical nightmare, but he still believes he is owed his money back. “I just think it’s money I shouldn’t have to pay,” Tak said.

    A small number of shipping firms, including global logistics giant FedEx, have publicly stated they intend to pass any refunds they receive back to the consumers and small businesses that originally paid the charges. But most importers have issued only vague, limited promises, especially for firms that passed tariff costs through to consumers as general price hikes rather than separate line-item charges. The dispute over unclaimed refunds has already sparked a wave of class-action lawsuits against major U.S. retailers and brands, including warehouse club Costco, eyewear maker EssilorLuxottica (parent company of Ray-Ban), and activewear brand Fabletics, founded by actress Kate Hudson. Fabletics previously broke out tariff charges as a separate line item on customer receipts, leading plaintiffs to accuse the firm of “unjust enrichment” — collecting extra tariff costs from customers and now standing to collect the same funds again from the federal government.

    Adrian Bacon, head of litigation at the Law Offices of Todd Friedman, which brought the class-action suit against Fabletics and is investigating multiple other firms, says while government watchdogs like the Federal Trade Commission typically handle consumer protection issues, the involvement of federal trade policy means private legal action is the only available avenue to force companies to pass refunds on to consumers. That has not stopped current Trump administration officials from weighing in on the debate. U.S. Trade Representative Jamieson Greer last month called on companies that receive “windfall” refunds to pass the money on to workers in the form of performance bonuses. Last February, Treasury Secretary Scott Bessent cast doubt on the likelihood that ordinary consumers would ever see any of the refund money. “I got a feeling the American people won’t see it,” Bessent said.

  • Australian shares secure biggest weekly gain since 2022 despite market dip

    Australian shares secure biggest weekly gain since 2022 despite market dip

    Australia’s benchmark stock index has pulled off a remarkable milestone this week, logging its strongest weekly performance in more than two years even as lingering geopolitical instability kept market sentiment cautious through Friday’s trading session. The S&P/ASX 200 edged down 12.60 points, or 0.14%, to close at 8,960.60 on Friday, while the broader All Ordinaries index also slipped by a matching 0.14% to settle at 9,155.80. Despite the single-day pullback, the benchmark ASX 200 notched a 4.2% weekly gain that leaves it just 250 points shy of its all-time record high of 9,202.

    Market analyst Tony Sycamore notes that the monthly gain for April currently sits at 5.55%, which has erased 70% of the steep losses the index suffered during the market downturn in March. That recovery marks a notable turnaround following the sharp contraction Australian equities saw just one month prior.

    On Friday, only three out of the Australian exchange’s 11 major sectors finished the trading day in positive territory. The real estate sector led the gains, climbing 0.88% overall, with Vicinity Centres posting a 3.2% rise to close at $2.56. Utilities and financials followed the real estate sector in positive performance. Among Australia’s big four retail banks, results were mixed: National Australia Bank (NAB) added 0.31% after announcing its second fixed-rate mortgage hike in two weeks, Commonwealth Bank of Australia rose 0.47%, Westpac Banking Corporation gained 0.28% after positioning itself as the country’s lowest-cost fixed-rate lender, and Australia and New Zealand Banking Group edged up 0.23%.

    The information technology sector was the day’s poorest performer, with multiple major stocks posting notable declines. Logistics software firm WiseTech Global fell 2.6% to $37.61, cloud accounting platform Xero dropped 2.7% to $71.46, and Life360 slipped 3.3% to $19.48 shortly after unveiling workforce cuts as part of a restructuring to align its operations with artificial intelligence integration.

    Geopolitical uncertainty tied to Middle East tensions remains the primary driver of market volatility, analysts confirm. While a two-week ceasefire between the United States and Iran was announced on April 8, ongoing reports of military strikes in Lebanon and the continued closure of the Strait of Hormuz, a critical global oil chokepoint, have kept traders on edge.

    The uncertain outlook has hit energy sector stocks, with Whitehaven Coal falling 3.2% to $8.12 and Woodside Energy dipping 0.2% to $33.29. Despite weak energy equities, concerns over the durability of the ceasefire have pushed crude oil prices higher: Brent Crude edged up 0.8% to trade at US$96.72 per barrel.

    “Oil initially fell sharply when the ceasefire was announced, as traders ruled out the most severe supply disruption scenarios,” explained market analyst Daniela Hathorn. “But prices have since rebounded as doubts about how long the agreement will hold have grown.”

    Amid the broader market volatility, safe-haven assets continued to see steady gains, with gold climbing 0.06% to hit US$4,766.17 per ounce. The Australian dollar was last trading at 70.86 U.S. cents.

  • Croatian fishermen feel the strain after Iran war ramps up fuel prices

    Croatian fishermen feel the strain after Iran war ramps up fuel prices

    Along the sun-drenched Adriatic coast of Croatia, where turquoise waters meet rolling Istrian peninsulas, 55-year-old fisherman Marijan Jakopovic continues the daily routine he has kept for three decades: readying his vessel and casting nets as dusk falls. But this year, the generational trade he inherited has grown more punishing than ever, as cascading crises driven by geopolitical conflict push Croatia’s small-scale commercial fishing sector toward collapse.

    The root of the latest crisis traces back to the ongoing war in Iran, which has sent global energy prices soaring. For Croatia’s fishermen, who rely on discounted “blue diesel” reserved exclusively for agricultural and maritime fishing work, the spike has been staggering: official data shows the price of this specialized fuel jumped 70% in just one month, climbing from €0.80 ($0.94) per liter on March 8 to €1.36 ($1.59) per liter by April 7. While the Croatian government imposed an emergency temporary price cap to stem the surge, senior Ministry of Economy official Vedran Spehar confirmed that even with intervention, prices have risen dramatically; without government action, Spehar noted, blue diesel would have hit at least €2 ($2.34) per liter, though state intervention did prevent widespread supply shortages.

    Croatia, which joined the European Union in 2013 and adopted the euro as its currency in 2023, was already grappling with steep economic pressure long before the latest Iran-driven fuel spike. The economic fallout from the war in Ukraine pushed energy and food costs upward across the bloc, and Croatia currently holds the unenviable title of having the EU’s highest annual inflation rate at 4.8%. The euro adoption transition itself also coincided with broad-based price increases across nearly every domestic sector, squeezing household and business budgets alike.

    For fishermen like Jakopovic, the fuel price surge is the final straw added to a web of long-standing challenges that have eroded profit margins for years. As an EU member, Croatia adheres to the bloc’s strict sustainable fishing regulations, which include seasonal catch bans, species-specific limits, and large protected marine zones designed to reverse declining fish populations and preserve endangered species. While these rules are critical for long-term ecological health, they have forced commercial fishermen to travel much farther from shore to reach legal fishing grounds, increasing their time at sea and overall fuel consumption—creating a vicious cycle of rising costs that many can no longer outrun.

    Compounding these structural pressures is the influx of cheap frozen seafood imports that have undercut domestic fishermen’s pricing, all while Croatia’s booming coastal tourism industry, which drew more than 20 million visitors in 2023, has failed to translate to higher earnings for local fishing crews. Even though local fishermen are the primary suppliers of fresh fish to the restaurants and markets that cater to summer tourists, their operating costs now far outpace the revenue they earn from their catch. Jakopovic explains that depending on vessel size, some fishermen now spend up to 70% of their total gross income on fuel alone, before covering expenses for crew wages, boat maintenance, and fishing equipment.

    With costs spiraling, fishermen are warning that a further escalation of the Iran conflict, which could lead to another round of fuel price surges if planned ceasefire talks fail, would push many operations into insolvency. “This is turning into an almost hopeless situation,” Jakopovic says of his small Lanisce village fishing community on the Istrian Peninsula. “We don’t know how much longer we will be able to keep working.”

    The ripple effects of the crisis are already set to impact consumers across Croatia, with higher fresh fish prices likely to hit markets and restaurants in 2024. Almira Raimovic, a former fisherman turned vendor at Pula’s central market, who now repurposed her old fishing boat for more profitable tourist excursions, says higher fuel costs will force fishermen to pass price increases up the supply chain. She predicts that Mediterranean consumers, who have long centered fresh seafood in their diets, will shift their purchasing habits toward cheaper small species like sardines and anchovies as premium fresh catches become unaffordable.

    Raimovic emphasizes that the impact will extend far beyond the fishing sector, adding to already high living costs across the country: “Rising fuel prices will affect everyone, inflating the cost of living and of food across all sectors, not just fishing.”

    The crisis is not unique to Croatia: neighboring countries in the Adriatic region have also faced similar pressure on their fishing industries, even with state subsidies and price caps in place to offset fuel costs. For thousands of Croatian fishermen whose families have worked the Adriatic for generations, the coming months will determine whether the centuries-old trade can survive the dual pressures of geopolitical volatility and the long-term structural challenges of EU-regulated fishing.

  • NAB hikes fixed home loan rates for the second time in two weeks

    NAB hikes fixed home loan rates for the second time in two weeks

    In a sudden shift reshaping Australia’s competitive home lending market, National Australia Bank (NAB) — one of the country’s dominant big four banks — has rolled out its second fixed-rate home loan increase in just a fortnight, a move that has stripped it of its position as the cheapest provider of fixed home loans in the nation.

    The latest adjustment, announced this Friday, comes exactly 14 days after NAB’s previous rate hike. The new round of increases adds 0.30 percentage points to every fixed-term home loan product the bank offers. Following the repricing, NAB’s lowest available fixed rate now sits at 6.34% for a one-year term. For borrowers seeking longer-term rate security, the cost climbs even higher, with a two-year fixed rate product reaching 6.39%.

    This market shift has cleared a path for competitor Westpac to claim the title of the big four’s lowest fixed rate provider. Westpac currently offers a two-year fixed home loan with a rate of 6.14%, undercutting NAB’s new pricing by a notable margin.

    NAB’s decision to raise rates twice in such a short window is far from an isolated move, it is part of a broader market response to shifting monetary conditions in Australia. Lenders across the sector have been adjusting pricing after the Reserve Bank of Australia’s March cash rate decision, as well as widespread expectations of further rate increases on the horizon.

    All three of the other major banks — ANZ, Commonwealth Bank of Australia, and NAB itself — have already forecast an additional 0.25 percentage point rate hike when the RBA meets next month. Forecasts are not uniform across the industry, however: Bendigo Bank Chief Economist David Robertson predicts the RBA will hold rates steady in May, but expects a third rate increase for 2026 to come in August. Robertson attributes this projected trajectory to ongoing geopolitical instability in the Middle East, which he says is creating a domino effect that keeps global and domestic inflation pressures elevated.

  • Bendigo Bank signals third interest rate hike for 2026 won’t be until August

    Bendigo Bank signals third interest rate hike for 2026 won’t be until August

    In a provocative deviation from consensus economic forecasts among Australia’s largest financial institutions, Bendigo Bank has staked out a contrarian position, predicting a third Reserve Bank of Australia (RBA) cash rate increase will land in August 2026 rather than the May timeline widely expected by the country’s biggest banks. The unusual forecast comes alongside the regional lender’s strong quarterly profit results that have lifted its stock, even as it cuts hundreds of roles to align with new long-term tech partnerships.

    Bendigo Bank’s chief economist David Robertson outlined the forecast in a public statement Tuesday, confirming that the bank joins the broader market in expecting the RBA to hold interest rates steady at its upcoming May monetary policy meeting. But unlike rival national lenders ANZ, Commonwealth Bank of Australia and National Australia Bank, which all project a 25-basis point hike at the May gathering, Robertson said persistent economic pressures tied to global energy market disruptions will force the RBA to act three months later.

    The RBA last lifted the cash rate by 25 basis points at its March meeting, pushing the benchmark rate to 4.1% amid ongoing efforts to cool stubbornly high inflation. Robertson noted that the RBA’s May decision will hinge on how policymakers balance the risks of supply-demand imbalances stemming from the ongoing Middle East conflict against the threat of tipping the domestic economy into a technical recession.

    The call for a delayed rate hike, Robertson explained, is rooted in two competing forces shaping Australia’s current economic trajectory: a surprisingly resilient domestic labour market that has kept consumer spending steady, and growing inflationary risks spurred by geopolitical tension in the Middle East. With key global shipping chokepoint the Strait of Hormuz facing ongoing disruption amid regional conflict, Bendigo Bank warns that constrained energy supplies and sustained elevated commodity prices will create a domino effect that keeps inflation above the RBA’s 2-3% target range. Robertson added that all global energy shocks carry inherent risk of stagflation, a toxic combination of slow growth and persistent rising prices that would force central bank action.

    The interest rate forecast was released alongside a separate major announcement from Bendigo Bank this week, confirming the lender would cut a significant share of its workforce after locking in multi-million-dollar long-term partnership deals with global technology services firms Infosys and Genpact. The partnerships run for seven and six years respectively, with the bank stating the agreements will bring specialized expertise in process optimization and delivery, boost long-term productivity, and strengthen the bank’s enterprise risk management frameworks.

    Despite the controversy of workforce cuts, Australian equity markets reacted positively to the bank’s updates. Bendigo Bank ranked among the top-performing stocks on the Australian Securities Exchange following the announcements, climbing 8.41% in intraday trading. The regional lender also delivered better-than-expected financial results for the March quarter, reporting cash profit of $138 million that beat consensus market forecasts by 12%, reinforcing investor confidence in the bank’s strategic shift.

  • China Eastern launches direct flights between Shanghai and Zurich

    China Eastern launches direct flights between Shanghai and Zurich

    China Eastern Airlines, one of China’s leading commercial air carriers, has announced plans to launch a brand-new non-stop air route linking Shanghai, China’s global trade and transportation hub, and Zurich, the largest economic center of Switzerland, with operations set to commence on June 18, 2026. This new service marks the airline’s second dedicated direct connection between China and Switzerland, coming one year after the successful launch of its Shanghai-Geneva route in 2025. According to the Shanghai-headquartered carrier, the new air corridor will act as a critical transportation link, streamlining cross-border movement and unlocking greater opportunities for bilateral collaboration between the two nations.

    The new weekly schedule includes three round-trip flights per week, departing from Shanghai Pudong International Airport every Tuesday, Thursday, and Sunday, with return flights departing Zurich the same calendar day. Travelers can already purchase tickets for the upcoming service through multiple official channels, including China Eastern’s official website and its dedicated mobile application.

    Beyond direct bilateral connections, the route is expected to deliver broad economic and social benefits by deepening ties between the Yangtze River Delta, one of China’s most economically dynamic regions, and Switzerland, as well as the broader European market. Industry analysts note that the new link will lower barriers for industrial collaboration, cross-border business activities, international tourism, and people-to-people cultural exchanges between the regions.

    This route launch forms part of China Eastern’s long-term strategy to expand capacity across its European network, responding to rapidly growing demand for travel and trade between China and European countries. Following the launch of the Shanghai-Zurich service, China Eastern will operate a total of 29 weekly flights connecting China to 19 different European cities, cementing its position as one of the largest Asian air carriers operating in the European market. Industry observers expect the expanded network to support continued growth in bilateral trade, tourism, and cultural exchange between China and Europe in the coming years.

  • Shanghai airports record rise in business jet flights

    Shanghai airports record rise in business jet flights

    Shanghai’s two major international airports have notched a historic milestone for business jet activity, logging a 20% year-on-year jump in takeoffs and landings to hit 522 flights in March 2026 — the highest single-month volume on record, operator Shanghai Airport (Group) Co. has announced.

    The upward trend is even more pronounced for cross-border business jet trips, which surged 29% year-on-year to reach 273 flights last month. International services now account for more than half of all business jet movements handled by Pudong International Airport and Hongqiao International Airport combined, and Shanghai’s growth rate outpaces that of all other mainland Chinese cities.

    Industry analysts and airport operators link the robust growth to Shanghai’s ongoing push to integrate development across cultural, commercial, tourism, sports and exhibition sectors. A packed calendar of high-profile events in March drew a steady stream of high-end travelers to the city, including the F1 Chinese Grand Prix, Shanghai Fashion Week and multiple major headline concerts. Each of these large-scale events created elevated demand for flexible, private air travel, driving the rise in business jet operations.

    The record-breaking performance underscores Shanghai’s position as a key global business and event hub, reflecting growing economic and cross-border activity in eastern China. Airport officials note that consistent growth in business jet traffic also signals rising confidence among global business and leisure visitors in Shanghai’s appeal as a top destination for international engagement.

  • Can Istanbul rival Dubai? Turkey looks to woo investors as Iran war reshapes region

    Can Istanbul rival Dubai? Turkey looks to woo investors as Iran war reshapes region

    As escalating conflict around Iran exposes key Gulf financial hubs to unprecedented geopolitical risk, the Turkish government has launched a targeted campaign to lure international firms and investors currently based in the United Arab Emirates to relocate their operations to Turkish soil.

    According to anonymous sources familiar with the plan who spoke to Middle East Eye, a senior Turkish official has informed international investors that Ankara intends to expand the generous tax incentives and business support schemes currently exclusive to the Istanbul Financial Centre (IFC) to a broader group of multinational corporations. The official noted that growing fears of potential Iranian strikes against UAE financial centers and international firms operating in Abu Dhabi and Dubai may push some companies to consider moving their regional bases to Turkey.

    The Gulf region currently hosts a wide range of global economic players, from multinational banks and financial services providers to cutting-edge technology startups, artificial intelligence research firms, large-scale data centers and manufacturing facilities. The IFC, Istanbul’s purpose-built central business and finance district that already hosts dozens of global banks and multinationals, currently offers a robust suite of tax breaks: income earned from exported financial services is 100% deductible from corporate income tax, and all related transactions are exempt from government duties and charges.

    Additional incentives include payroll tax breaks for globally experienced talent, with between 60% and 80% of an employee’s real net monthly salary exempt from income tax, depending on how many years of professional experience they gained working outside Turkey. Recent Bloomberg reporting confirms the Turkish government plans to roll these benefits out more broadly, with a proposed new rule that would allow companies to deduct 50% of income earned from selling or brokering goods sourced abroad without importing them into Turkey’s customs territory.

    There are early tentative signals that foreign corporate interest in Turkey is starting to build. Earlier this month, Turkish President Recep Tayyip Erdogan hosted 40 global chief executives at a high-profile gathering in Istanbul organized by the World Economic Forum (WEF), with participating companies representing trillions of dollars in combined global market value. The meeting carried particular symbolic weight: Erdogan has not attended the WEF’s annual flagship Davos summit since 2009, when he pulled out following a very public dispute with then-Israeli President Shimon Peres over Israel’s military campaign in Gaza that killed hundreds of Palestinians.

    Larry Fink, chair of the WEF’s board of trustees and CEO of BlackRock, the world’s largest asset manager, was among the key organizers of the Istanbul meeting. Alois Zwinggi, WEF’s interim president and CEO, noted that Turkey plays an increasingly strategic role in global trade, investment and production networks.

    Ceren Kenar, a leading Turkey-based analyst, explained that the WEF organized the gathering as an effort to rebuild ties between Erdogan and the wider Davos community. “This should be interpreted, in a sense, as a demonstration of confidence in the Turkish economy, despite its vulnerabilities,” Kenar said. “Beyond this, it is important to understand the significance of the rational and strategic role that Turkey, under the leadership of Erdogan, plays in the global arena.”

    Kenar added that Turkey has worked to position itself as an even-handed mediator in multiple regional conflicts over the past 15 years, from the Syrian civil war and the Russia-Ukraine war to the Nagorno-Karabakh dispute, the Israeli-Palestinian conflict and the current crisis around Iran. “Today, relations with the US are more stable than they have been in a long time, and relations with Europe are being redefined,” she said. “It is impossible to construct an equation in the Middle East that excludes Turkey.”

    Ahmet Ihsan Erdem, chief executive of the IFC, confirmed earlier this month to Reuters that the center has already held exploratory talks with 40 companies from East Asia and the Gulf that are considering partial relocation to the IFC or expanding their existing Turkish operations specifically because of risks stemming from the Iran war.

    Despite these early positive signs, multiple anonymous analysts and investors who spoke freely to Middle East Eye warn that Ankara faces steep, structural challenges to convincing UAE-based businesses to make the move. Most pressing is Turkey’s persistent high inflation, which is projected to hit 25% this year, alongside a rapidly widening trade deficit. Beyond macroeconomic headwinds, investors also point to high-profile actions such as the government’s seizure of Papara, Turkey’s first fintech unicorn valued at over $1 billion, which has sparked fears of arbitrary state action against foreign-owned firms.

    A more fundamental concern cited by investors is uncertainty around the rule of law. “No one trusts the Turkish courts,” one senior international banker told Middle East Eye.

    Guney Yildiz, senior adviser for geopolitics and strategic insights at Anthesis Group and a former official at the Abu Dhabi International Financial Centre (ADGM), noted that “The tide can turn in favour of the IFC only if Turkey’s macroeconomic performance improves.”

    To put the competitive landscape in context: the Dubai International Financial Centre (DIFC), the UAE’s leading global financial hub, operates under its own independent civil and commercial legal framework separate from the UAE’s national legal system, built on English common law with an independent, internationally respected judiciary. Establishing a similar system in Turkey would face deep historical and political headwinds, as the modern Turkish republic was founded in part to end the unequal “capitulation” privileges granted to foreign powers during the Ottoman era that created separate legal systems for foreign entities.

    “It would be a tough sell for the government,” said Guven Sak, a prominent Turkish economist with the Ankara-based TEPAV think tank. “But Ankara can still try to reassure financial companies within the existing legal structure.” A senior anonymous Turkish official confirmed that the government is exploring legal adjustments to address investor concerns without creating a separate free zone with independent courts, particularly to attract data center and AI investments that do not require the same full legal autonomy as traditional financial services. Sak even suggested that such autonomous zones might be more politically feasible in Northern Cyprus, which retains a legacy of English common law from British colonial rule.

    Yildiz acknowledged that the tax incentives Turkey is offering are substantial and in some cases more generous than Gulf competitors. “Banks operating from the IFC campus pay effectively zero corporate tax on financial services exports through 2031,” he said. “On paper, that’s actually better than Dubai, because DIFC and ADGM offer zero tax on most activities but carve out banks and insurers, which pay the standard nine percent.”

    Even so, Yildiz argued that Gulf firms are not prioritizing tax rates when comparing Turkey to the UAE. “They are more worried about lira depreciation, inflation risk and Turkey’s relatively low sovereign rating,” he said, while noting that Turkey’s current economic leadership has pursued a credible policy program. Since taking office in 2023, Turkish Finance Minister Mehmet Simsek has pursued a more orthodox fiscal and monetary policy agenda, though he has faced criticism for failing to bring inflation down to the single-digit target.

    Another anonymous analyst noted that the UAE and Saudi Arabia have invested hundreds of billions of dollars in building out cutting-edge AI and technology infrastructure, while also offering reliable, low-cost energy supplies as major oil and gas exporters and world-class logistical connectivity. Turkey cannot match these advantages at present, the analyst added, and most multinationals that would consider relocation already maintain small operations in Turkey anyway, with little overlap in the key growth sectors of energy, AI and trade connecting China and India.

    Sak, the veteran Turkish economist, pointed out that Turkey does hold a clear competitive advantage in manufacturing, where it remains one of the strongest and most diversified economies in the broader Middle East region. “Dubai filled the void left by Beirut, which was unable to realise its potential because of civil war,” he said. “With the right incentives, we can attract Chinese businesses that are heavily invested in the UAE’s Jebel Ali Free Zone, which sits directly across the Gulf from Iran.” The Jebel Ali zone currently hosts 507 Chinese companies, nearly double the 2021 count, including 11 Fortune 500 firms operating in automotive, logistics and technology. The expanded Turkish tax incentives could prove attractive to some of these firms looking to diversify their geopolitical risk.

    Yildiz, however, warned that expanding the IFC’s incentive packages to cities outside Istanbul could weaken the coherent legal and logistical value proposition of a dedicated international financial center. That said, he proposed a more targeted alternative: “If Turkey positioned secondary cities as specialised back-office or fintech hubs with their own separate incentive schemes, while keeping regulated activity at the IFC, that could actually work.”

    Yildiz also highlighted a unique advantage Turkey holds that Dubai cannot match: access to a large domestic market of 85 million people with vastly underpenetrated financial services. “The non-bank financial sector, everything from insurance to asset management to leasing, accounts for about a tenth of total financial assets,” he said. “In a normal developed economy, that figure is four or five times higher. Turkey’s conversation with the Gulf should be about access to that market, rather than trying to match Dubai on tax rates, which it probably can’t.”

    A senior European investment consultant based in the region agreed that there is a narrow window of opportunity for Turkey to attract Gulf investors, but only with clear strategy, consistent execution and domestic political and economic reform. “And by putting the house in order in Turkey,” he added, referencing the Turkish government’s recent crackdown on opposition mayors, including the high-profile arrest of Istanbul’s main opposition mayor Ekrem Imamoglu. “That is unlikely to materialise as long as Erdogan’s personal agenda comes first.”