In a surprising turn of events, South Africa’s inflation rate for August 2024 fell to 3.3%, undershooting the 3.6% forecast by economists. This decline, attributed to softer fuel and food prices, has sparked speculation that the South African Reserve Bank (SARB) might implement another interest rate cut during its upcoming policy meeting on Thursday. The SARB has already reduced rates three times this year, with the latest cut in July, when it set a new inflation target of 3%. Prior to the release of the inflation data, the consensus was that the central bank would maintain the repo rate at 7%. However, the unexpected drop in inflation, coupled with falling bond yields and a stronger rand, has led some analysts to predict a 25 basis point cut. Razia Khan, chief economist for Africa and the Middle East at Standard Chartered, described the inflation release as a ‘game changer,’ suggesting that the September meeting could be pivotal. While some analysts remain cautious, citing potential price shocks from recent tariffs imposed by the U.S. on South African exports, others argue that a flagging economy provides additional justification for easing monetary policy. The SARB has acknowledged that the impact of these tariffs on growth and inflation could be modest, but this has yet to be reflected in official data. The central bank’s decision will be closely watched as it seeks to balance inflation control with economic stimulation.
分类： business
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India steel exports face EU carbon tax hit, US tariffs impact minimal, official says
India’s steel sector is bracing for significant challenges from the European Union’s carbon border adjustment mechanism (CBAM), even as it remains largely unaffected by U.S. tariffs, according to Sandeep Poundrik, India’s steel secretary. Speaking at the FT Live Energy Transition Summit India on Wednesday, Poundrik highlighted that approximately two-thirds of India’s steel exports are destined for Europe, making the EU’s carbon tax a critical concern. The CBAM, which imposes higher taxes on high-carbon goods like steel, aluminum, and cement, could severely impact India’s export competitiveness. Poundrik emphasized that Indian steel production, predominantly reliant on blast furnaces with high emissions, faces additional scrutiny as the industry expands its capacity. He also expressed concerns about cheap imports and anticipated government action on import tariffs, known locally as safeguard duty, to protect domestic producers. Last month, India proposed an 11%-12% import tariff on certain steel products to curb shipments from China, the world’s top steel producer. While the U.S. tariffs pose minimal direct impact due to negligible exports, the EU’s carbon tax underscores the urgent need for India to address its carbon-intensive production methods and align with global sustainability standards.
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China is sending its world-beating auto industry into a tailspin
In Chengdu, a city of 21 million, a shopping mall showroom offers unprecedented deals on new cars, with discounts as steep as 50%. This is made possible by Zcar, a company that buys vehicles in bulk from automakers and dealerships, capitalizing on China’s oversupplied auto market. The root of this issue lies in years of government subsidies and policies aimed at establishing China as a global automotive leader, particularly in electric vehicles (EVs). While these policies have succeeded in boosting production, they have also led to a glut of vehicles that far exceeds consumer demand.
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Japan’s SBI Shinsei Bank looking at tokenised deposits for cross-border transactions
TOKYO, Sept 17 (Reuters) – SBI Shinsei Bank, a subsidiary of SBI Holdings, announced on Wednesday its plans to explore the introduction of tokenised deposit payment services tailored for corporate clients. This initiative aims to facilitate faster and more cost-effective cross-border transactions. The bank has entered into a strategic agreement with DeCurret DCP, the provider of Japan’s DCJPY tokenised deposit platform, to evaluate the establishment of this service using Partior’s multicurrency settlement platform for digital money, based in Singapore.
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Discounts for Iranian oil widen in China on record stocks, even as sanctions curb shipments
In a significant development impacting the global oil market, Iranian oil discounts in China have expanded due to record-high stock levels and a shortage of import quotas as the year-end approaches. This situation has been exacerbated by US sanctions targeting Qingdao Port, a key hub for Iranian oil imports. The sanctions, imposed on August 21, specifically target Qingdao Port Haiye Dongjiakou Oil Products, a terminal previously handling 130,000-200,000 barrels per day of Iranian crude. Following the sanctions, the terminal suspended operations, leading to a 65% decline in crude imports at Dongjiakou port this month, according to data analytics firm Kpler. Despite the sanctions, Iranian oil shipments have been diverted to nearby terminals, such as Huangdao, where imports are expected to double in September compared to August. The widening discounts, now over $6 a barrel for Iranian Light crude versus benchmark ICE Brent, reflect both the oversupply in Shandong province and the additional costs borne by customers due to sanctions. China, which has purchased over 90% of Iranian oil exports in recent years, continues to defend its trade with Iran as compliant with international law, dismissing US sanctions as unilateral and illegitimate. The situation underscores the complex interplay between geopolitical tensions, market dynamics, and energy trade.
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Japan’s exports down in August as automakers grapple with US tariffs
Japan’s export sector faced another challenging month in August 2025, marking the fourth consecutive decline, as elevated U.S. tariffs continued to weigh heavily on key industries such as automotive and manufacturing. According to government data released on September 17, total exports by value fell by 0.1% year-on-year, a smaller drop than the 1.9% decrease forecasted by economists. However, exports to the United States plummeted by 13.8%, the steepest decline since February 2021, driven by significant drops in automobile and chipmaking equipment shipments. The volume of U.S.-bound exports also decreased by 12.0%, exacerbating the trade surplus reduction with the U.S. to 324 billion yen ($2.21 billion), the smallest since January 2023. While exports to China dipped slightly by 0.5%, shipments to Asia and the European Union saw modest gains, partially offsetting the U.S. downturn. On the import side, total imports fell by 5.2% year-on-year, largely due to lower oil prices, resulting in a trade deficit of 242.5 billion yen ($1.66 billion), significantly less than the forecasted 513.6 billion yen. Despite some relief from a reduced baseline tariff rate of 15% on Japanese imports, down from the initial 27.5%, the impact remains severe for Japanese automakers and auto parts suppliers, who previously enjoyed a 2.5% rate. Economists predict a contraction in Japan’s economy by an annualized 1.1% in the current quarter, reflecting weak overseas demand. Bank of Japan Governor Kazuo Ueda has pledged to proceed cautiously with rate hikes, given the uncertainty surrounding the U.S. tariff impact. Meanwhile, corporate spending on plant and equipment surged by 7.6% in the April-June quarter, with the automotive sector leading the charge with a 43.4% increase, driven by investments in electric vehicle production, despite a 30.7% plunge in operating profits.
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Ben & Jerry’s co-founder quits over social activism row
Jerry Greenfield, co-founder of the iconic ice cream brand Ben & Jerry’s, has stepped down from the company after nearly 50 years, intensifying a conflict with its parent company, Unilever. In a heartfelt letter shared by fellow co-founder Ben Cohen on social media, Greenfield expressed his dismay over the brand’s loss of independence, citing Unilever’s restrictions on its long-standing social activism as the primary reason for his departure. This move marks the latest development in a dispute that began in 2021 when Ben & Jerry’s announced it would cease sales in Israeli settlements in the occupied West Bank and East Jerusalem, a decision that sparked significant controversy. A spokesperson for The Magnum Ice Cream Company, a Unilever spin-off, acknowledged Greenfield’s contributions but disagreed with his stance, emphasizing efforts to engage both founders in constructive dialogue. Ben & Jerry’s, established in 1978, has been renowned for its advocacy on social and political issues, including LGBTQ+ rights and climate change. Greenfield described his decision to leave as one of the most difficult of his life, stating he could no longer align with a company he felt had been ‘silenced’ by Unilever. Cohen, in an interview with Radio 4, expressed his commitment to preserving the brand’s independence and social mission, accusing Unilever of undermining the authority of the company’s independent board. The Magnum spokesperson reiterated their dedication to strengthening Ben & Jerry’s values-based position globally. Industry experts, including Anna Macdonald of Aubrey Investments, noted that Unilever may have sought to curtail the brand’s activism, particularly regarding Israel and Gaza. Earlier this year, Ben & Jerry’s accused Unilever of attempting to silence its criticism of former US President Donald Trump. Greenfield’s exit follows the removal of CEO David Stever by Unilever in March, which was part of a legal case alleging Unilever violated the terms of their merger agreement. In May, Cohen was arrested during a protest in the US Senate over military aid to Israel and humanitarian conditions in Gaza, further highlighting the founders’ unwavering commitment to their principles.
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China’s $19 trillion stock market, once called uninvestable, lures foreigners again
Foreign investors are increasingly turning their attention back to China’s stock markets, marking a significant shift from their previous stance of labeling them as uninvestable. This renewed interest is driven by the burgeoning opportunities in technology, particularly in artificial intelligence (AI), semiconductors, and innovative pharmaceuticals. The U.S.-China tariff truce and a domestic monetary easing environment have further bolstered investor sentiment, leading to notable market rallies. Last week, the Shanghai Composite index reached a decade high, while Hong Kong stocks hit a four-year high.
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TikTok lives: US, China in deal for app to keep operating in US
In a landmark agreement, TikTok will continue its operations in the United States under U.S.-controlled ownership, resolving a prolonged dispute between the U.S. and China. The deal, announced by President Donald Trump on Tuesday, mandates the transfer of TikTok’s American assets from its Chinese parent company, ByteDance, to a consortium of U.S. investors. ByteDance will retain a 19.9% stake, just below the 20% threshold, while the remaining 80% will be held by a group including existing shareholders like Susquehanna International Group, General Atlantic, and KKR, alongside new investors such as Andreessen Horowitz and Oracle. The U.S. entity will feature an American-dominated board, with one member designated by the U.S. government, ensuring national security safeguards. The deal, expected to close within 30 to 45 days, marks a significant step in easing tensions between the two economic giants. The White House extended the divestiture deadline to December 16, allowing ByteDance additional time to finalize the complex transaction. The agreement reflects a compromise that addresses both U.S. national security concerns and Chinese interests, potentially paving the way for smoother bilateral relations.
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Singapore’s Carro raises $60 million to promote Japanese cars in Asia
Southeast Asia’s leading online used-car marketplace, Carro, has successfully raised $60 million in a recent funding round spearheaded by Japan’s sovereign wealth fund, Cool Japan Fund. Announced on Wednesday, the investment is earmarked for promoting Japanese vehicles, particularly plug-in hybrid electric models, across the Asia-Pacific region. Carro expressed confidence in its ability to significantly enhance the market presence of these vehicles in the area.
Carro, which operates in multiple markets including Singapore, Malaysia, Indonesia, Thailand, Japan, Taiwan, and Hong Kong, is also eyeing expansion into Australia. CEO Aaron Tan recently hinted at the company’s plans for a dual listing, with sources indicating a potential U.S. initial public offering (IPO) that could value the company at over $3 billion. This would mark the largest Southeast Asian listing in the U.S. since SEA’s $989.3 million debut in 2017 and the first major automotive tech and commerce startup from Singapore to go public in the United States.
Backed by prominent investors such as Temasek and SoftBank Group, Carro’s digital platform facilitates vehicle transactions between consumers and dealers, while also offering insurance, financing, and after-sales services. Cool Japan Fund, a government-backed private fund, aims to bolster Japan’s economy by increasing international demand for its products and services.
This strategic investment underscores Carro’s ambitious growth trajectory and its commitment to transforming the automotive market in the Asia-Pacific region.