Global Pulse

分类： business

  • Tamer than feared inflation print sparks afternoon revival on the ASX

    Tamer than feared inflation print sparks afternoon revival on the ASX

    Australia’s benchmark share market extended its downward momentum into a seventh consecutive trading session on Wednesday, but a softer-than-forecast inflation reading triggered a welcome late-session rebound that cut the day’s losses significantly.

    The broad-based sell-off, the longest the Australian Securities Exchange has recorded since 2022, left the benchmark ASX 200 23.70 points lower at closing, a 0.27% drop to 8687 points. The broader All Ordinaries index followed a similar trajectory, slipping 19.30 points or 0.22% to settle at 8915.70. The Australian dollar also weakened against the U.S. dollar, ending the session at 71.61 U.S. cents.

    Trading was deeply mixed across sectors: of the 11 major industry groups tracked on the exchange, six closed in positive territory while five retreated. Utilities and energy stocks led the upward charge, posting gains of 2.18% and 1.27% respectively. Top utility performers included Origin Energy, which climbed 3.17% to $12.03, AGL, which rose 2.38% to $9.48, and LGI Limited, which added 2.86% to $3.60. Energy stocks extended their recent rally, with Woodside Energy gaining 2.01% to $33.05, Santos edging 0.39% higher to $7.77, and Ampol closing up 0.93% at $34.58.

    On the losing side, healthcare stocks were the day’s biggest drag on the index. Biotech giant CSL fell 2.42% to $125.78, sleep technology firm ResMed slipped 1.11% to $30.85, and cochlear implant manufacturer Cochlear extended its recent downturn with a 3.23% drop to $90 per share.

    The sharp afternoon rebound followed the release of new inflation data from the Australian Bureau of Statistics, which showed headline inflation rose 1.1% in the March 2026 quarter, with the 12-month rate hitting 4.6%. The quarterly increase was driven largely by a sharp jump in global oil prices, but the overall reading came in below the consensus forecasts that investors had priced in ahead of the announcement. Before the data was released, the ASX 200 dipped to an intraday low of 8661, but rallied almost immediately to a peak of 8711 as traders digested the softer inflation figure.

    Belinda Allen, head of Australian economics at Commonwealth Bank, noted that the tamer inflation reading gives the Reserve Bank of Australia flexibility to hold current interest rates steady at its upcoming May policy meeting. Allen still expects a narrow vote to raise the cash rate, however, and predicts another split decision amid conflicting economic signals, calling the May outcome “more precarious” than the March meeting. Prior to the inflation release, markets had priced in an 80% chance of a rate hike in May; that probability has since fallen to 70%.

    In individual company news, Woodside’s rally was supported by strong quarterly operating results, which showed operating revenue rose 7% year-over-year to US$3.26 billion (AU$4.54 billion) for the three months ending March. The average selling price for the company’s portfolio of gas, oil liquids and ammonia climbed 11% to $63 per barrel of oil equivalent. Mining services provider Codan saw its shares soar 15.45% to $42 after it upgraded full-year earnings guidance, now projecting a net profit of around $170 million for the 2026 financial year. In contrast, childcare operator G8 Education plunged 31.25% to $0.16 per share, a new multi-year low, after announcing it would close 40 underperforming centers in a proactive response to ongoing cost-of-living pressures that have squeezed household discretionary spending on childcare.

  • Energy giant Woodside sees revenue jump despite production fall amid cyclone

    Energy giant Woodside sees revenue jump despite production fall amid cyclone

    Against a backdrop of escalating global geopolitical turmoil and local operational disruptions, Australia’s biggest energy producer Woodside Energy has defied market expectations to deliver a surprising uptick in revenue for the March quarter, new corporate disclosures show.

    In its mandatory filing to the Australian Securities Exchange (ASX) this week, Woodside reported that operating revenue for the three months ending March 31 climbed 7% quarter-over-quarter to hit US$3.26 billion (equivalent to AU$4.54 billion). The company’s average selling price for its full product portfolio — including natural gas, liquid oil, and ammonia — jumped 11% to US$63 per barrel of oil equivalent, or AU$87.67.

    This quarterly gain follows a US$3.035 billion (AU$4.22 billion) revenue result in the final quarter of 2023, though the latest figure still comes in slightly below the US$3.315 billion (AU$4.61 billion) revenue Woodside recorded in the same period a year earlier.

    The impressive price growth driven by international market shifts was partially offset by an 8% drop in overall production during the quarter, caused by severe operational shutdowns triggered by Tropical Cyclone Narelle that hit Woodside’s Western Australian upstream assets. Even with the production decline, markets reacted positively to the earnings release almost immediately: Woodside’s share price rose 1.64% in immediate after-announcement trading to settle at AU$32.93 per share.

    The price surge that boosted Woodside’s top line traces directly to escalating conflict between the United States and Iran, which disrupted traffic through the Strait of Hormuz — the narrow 50-kilometer maritime chokepoint that links the Persian Gulf to the Arabian Sea. Before the outbreak of recent hostilities, nearly 20% of the world’s total oil and liquefied natural gas (LNG) supplies passed through the strategic waterway. When conflict halted commercial traffic and raised widespread fears of widespread supply shortages across Asian and European markets, global crude and LNG prices spiked sharply.

    Woodside chief executive Liz Westcott framed the quarterly result as a modest but solid portfolio performance shaped directly by the market upheaval from the Middle East conflict. She noted that additional gains from current elevated spot prices will flow through to future quarterly results for the company’s LNG segment, due to the structure of its tagged contract pricing that links contract prices to delayed spot market benchmarks.

    Westcott confirmed that the Middle East conflict has not caused any disruptions to Woodside’s own global trading operations, with all the company’s scheduled shipping movements continuing to operate according to plan. She also expanded on the impact of the Western Australian cyclone, crediting the company’s emergency response team for protecting staff, physical assets, and the surrounding environment during the mandatory shutdown and subsequent restoration of production activities.

    Looking ahead, Westcott said Woodside will sharpen its focus on organizational efficiency and enhanced capital management, seeking to strike a careful balance between funding ongoing growth projects and delivering solid returns to shareholders. “Cost discipline is essential to sustained shareholder value creation,” she said. “We are commencing a structured review of our business to streamline decision making, reduce complexity and improve accountability.”

  • A faraway conflict threatens livelihoods in India’s glass hub

    A faraway conflict threatens livelihoods in India’s glass hub

    Half an hour’s drive from the world-famous Taj Mahal in India’s northern Uttar Pradesh Pradesh, Firozabad has built its identity around glass. Known nationally as India’s “glass city”, this industrial hub accounts for 70% of the country’s total glass output, with most production spread across hundreds of small and medium-sized family-run factories. The sector sustains nearly 150,000 daily-wage workers, whose incomes hover between 500 and 1,000 rupees ($5.29 to £3.91) a day – earnings that leave almost no buffer against sudden cost increases or production disruptions. Today, that vulnerability has been laid bare by escalating tensions in the Middle East, whose ripple effects have reached deep into Firozabad’s workshops and left thousands of livelihoods hanging in the balance.

    Glass manufacturing is an energy-intensive process: furnaces must maintain extremely high, consistent temperatures around the clock to keep production running safely. If a furnace cools completely, it can suffer irreversible damage, and restarting it requires massive time and capital investments most small factory owners cannot afford. This means the entire industry relies entirely on a stable, affordable supply of natural gas – and that supply has been thrown into chaos by Middle East conflict.

    Nearly half of India’s total natural gas imports pass through the Strait of Hormuz, the narrow strategic Gulf shipping route that has been heavily disrupted by ongoing regional tensions. While some shipments have resumed in recent weeks, factory owners across Firozabad report they have yet to see any relief from the shortage. To cope with the national supply squeeze, the Indian government implemented a 20% cut to commercial gas allocations, forcing producers to adapt their operations to ration fuel.

    Sanjay Jain, who has operated a glass bangle manufacturing unit in Firozabad for four decades, told BBC reporters his production has plummeted sharply since the cuts went into effect. To keep his furnaces from cooling beyond repair, Jain has lowered operating temperatures and paused production for three to four days at a time – a stopgap measure that has cut his output drastically but kept his business from total collapse.

    The crisis in Firozabad exposes India’s broader systemic vulnerability to global energy shocks. The country relies heavily on imported natural gas across all sectors, from transportation to residential use, leaving industrial hubs built around gas-dependent manufacturing uniquely exposed. Firozabad’s 400-plus small manufacturing clusters produce a vast range of glass goods, from bangles and home decor to car headlamp covers and luxury chandeliers, feeding a domestic glass market valued at more than $200 million. Many small factory owners report losses ranging from 25% to 40% since the Middle East conflict escalated, with no clear path forward if supply instability continues.

    Natural gas shortages are not the only pressure weighing on the industry. Mukesh Bansal, a representative of the All India Glass Manufacturers’ Federation, explained that the conflict has driven up costs across the entire supply chain. Many key chemical components used to melt glass are imported from the Middle East, so trade disruptions have pushed raw material prices sharply higher. On top of that, global shipping cost increases have priced many Indian exporters out of international markets, particularly the large U.S. market for decorative glass goods. Bansal noted his own business has suffered losses exceeding 45% since the conflict began, saying “the combination of gas shortages and rising input costs has made this situation almost unmanageable.”

    The strain is hitting low-wage workers the hardest. Umesh Babu, a 35-year-old bangle maker who works 10-hour days in an uninsulated open-air workshop just meters from a 1,000C furnace, has already seen his work week drop from six days to four. To cut household expenses, he has pulled his children out of school. “This is the only skill I have,” he said. “If the factories stop hiring, I don’t know where I’ll turn to feed my family.”

    The Indian federal government has acknowledged the urgency of the crisis, stating it “recognises the need for uninterrupted furnace operations” and is implementing emergency measures to stabilize energy supplies. Federal ministries have held regular coordination briefings, and the petroleum ministry has prioritized energy allocations for critical sectors including pharmaceuticals, steel, automobiles and agriculture. Uttar Pradesh’s state government also announced a temporary wage increase after thousands of northern Indian factory workers held protests earlier this month that turned violent in parts of the state, where demonstrators demanded living wages and better working conditions. Workers say the temporary increase still falls far short of what they need to keep up with soaring inflation.

    Economists warn that without long-term intervention, many of Firozabad’s small and micro manufacturing units will not survive. Economist Arun Kumar noted that most of these labor-intensive small operations operate on extremely limited working capital, leaving them no financial buffer to withstand extended shortages. “If this situation continues, many units will either shut down permanently or operate at severely curtailed capacity for the foreseeable future,” he said.

    Damage to energy infrastructure across the Middle East from recent fighting between March and early April could take months to repair, meaning supply disruptions will persist even after the Strait of Hormuz returns to full operation. “The situation won’t go back to normal for months even after the route reopens,” Kumar explained.

    A recent UN Development Programme report warns that the ongoing conflict could push as many as 2.5 million additional people in India into extreme poverty. For Firozabad’s glass sector, which sits at the heart of India’s small and medium enterprise ecosystem – a segment that contributes 30% of India’s national GDP and employs hundreds of millions of people – this crisis is more than a local problem: it is a warning of how global geopolitical instability can quickly unravel livelihoods for low-income workers across the world.

  • UAE pulls out of OPEC oil cartels citing ‘national interests’

    UAE pulls out of OPEC oil cartels citing ‘national interests’

    In a move that sent immediate shockwaves through global energy markets already reeling from volatility sparked by ongoing Middle East conflict, the United Arab Emirates (UAE) announced Tuesday it will officially withdraw from both the OPEC cartel and the broader OPEC+ alliance this Friday, framing the decision as a necessary step to prioritize its independent national interests.

    A top-tier global oil producer with a decades-long history inside the organization, the UAE has quietly grown frustrated with OPEC’s binding production quota system in recent years, according to industry insiders. The nation’s official state news agency WAM carried the formal announcement, which confirms a major shakeup for the decades-old oil exporting bloc.

    The UAE’s membership in OPEC dates back to 1967, when the emirate of Abu Dhabi joined the organization four years prior to the formal unification and independence of the UAE from British protection. It becomes the second OPEC member to exit the bloc in recent years, following Angola’s departure in 2024.

    In its official statement outlining the decision, UAE officials emphasized that the move aligns with the nation’s long-term strategic and economic vision, as well as its rapidly evolving energy profile as it diversifies its output and invests in both fossil fuel expansion and renewable energy development. “During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all,” the statement read. “However, the time has come to focus our efforts on what our national interest dictates.”

    Industry analysts warn the departure comes at an already fragile moment for global energy markets, representing the most significant shock to the oil order since the 1970s oil crisis. The exit is expected to weaken the influence of OPEC, which has long been dominated by Saudi Arabia, the UAE’s regional neighbor and long-running geopolitical rival. Already strained shipping lanes through the Strait of Hormuz—where roughly one-fifth of the world’s oil supplies pass—have been choked by an ongoing Iranian blockade, and the UAE has faced repeated Iranian attacks on its infrastructure in recent months. Frictions between Riyadh and Abu Dhabi have also intensified over backing for opposing factions in the years-long Yemeni civil war, further eroding cooperation within the bloc.

    Before the current outbreak of Middle East conflict, the UAE ranked as the fourth-largest producer in the 22-member OPEC+ alliance, trailing only Saudi Arabia, Russia and Iraq. Jamie Ingram, managing editor of the Middle East Economic Survey, noted that the departure strips OPEC of roughly 13 percent of its total production capacity, according to data from the International Energy Agency.

    Jorge Leon, senior energy analyst at research firm Rystad Energy, explained that the immediate impact on oil markets may be muted while Hormuz shipping remains restricted. However, he warned that the long-term implications are significant: free of OPEC+ production caps, the UAE can now ramp up output at will, calling into question the long-term sustainability of Saudi Arabia’s role as the global oil market’s primary stabilizer. “As OPEC’s capacity to smooth out supply imbalances diminishes, we face the prospect of a far more volatile global oil market moving forward,” Leon noted.

    Founded in 1960 to coordinate oil policy among producing nations, the Vienna-based OPEC bloc launched its expanded OPEC+ partnership with 10 independent non-member producers in 2016 to increase its collective market leverage. The group first rose to global prominence in 1973, when it imposed an oil embargo on nations allied with Israel during the Yom Kippur War, triggering the first global oil crisis that sent prices quadrupling in just a few months and cemented the cartel’s outsized influence over global energy security. In the 1980s, facing growing competition from non-OPEC producers, the group introduced its iconic production quota system to maintain price stability and market control—a framework that helped it weather major disruptions including the 2008 global financial crisis and the post-Covid-19 pandemic price shock, even as internal tensions among member states continued to grow.

  • Family-owned Aussie mattress retailer A.H. Beard collapses into voluntary administration

    Family-owned Aussie mattress retailer A.H. Beard collapses into voluntary administration

    After more than a century of continuous operation as a staple of Australian manufacturing, one of the country’s most storied family-owned mattress brands, A.H. Beard, has fallen into voluntary administration, closing a historic chapter for the nation’s bedding industry.

    Official notices published this week confirmed that insolvency practitioners Peter Lucas and Damien Lau from P.A Lucas & Co have been appointed as joint administrators to oversee the company’s restructuring process, which leaves the long-standing firm’s future hanging in the balance. According to reports from *The Daily Telegraph*, chairman Garry Beard was visibly emotional, breaking down in tears as he delivered the news to workers at the brand’s southwest Sydney manufacturing facility on Tuesday.

    The collapse has been pinned on a confluence of mounting economic headwinds that have squeezed domestic manufacturing in Australia in recent years. Plummeting discretionary household spending, as consumers cut back on big-ticket non-essential purchases amid cost-of-living pressures, has paired with skyrocketing raw material and operational production costs to erode the company’s profit margins. Compounding these challenges is a steady consumer shift toward lower-cost imported bedding products, which has undercut pricing for local manufacturers like A.H. Beard that prioritize domestic production.

    Beyond its iconic status as a multi-generational family business, A.H. Beard leaves a major legacy as a pioneer of sustainable industry practice in Australian bedding. Kylie Roberts-Frost, chief executive of the Australian Bedding Stewardship Council, described the news as a devastating loss for the entire sector, noting that the brand’s early voluntary commitment to green initiatives laid the foundation for the council’s industry-wide sustainability programs. “The scheme of getting manufacturers on board with voluntary green measures — using recyclable materials and getting beds out of landfills at the end of its life cycle — would not exist were it not for the voluntary efforts of A.H. Beard,” Roberts-Frost said. “What makes this so difficult to sit with is that A.H. Beard was doing the right thing. They were investing in sustainability, supporting a stewardship scheme, and taking responsibility for end-of-life at a time when many in the industry are not.”

    Founded in 1899, A.H. Beard has been led across three generations of the Beard family: currently, the business is run by chairman Garry Beard, his brother Allyn Beard, and Garry’s son Matthew Beard, who serves as chief executive officer. Over its 126 years of operation, the company estimates it has produced and sold more than 10 million mattresses. It built a reputation as a leading supplier to Australia’s hospitality sector, and even sold a specialized luxury mattress model to the Chinese market for upwards of $100,000. The brand’s collapse marks one of the most high-profile casualties of ongoing economic pressure on small and medium-sized domestic manufacturing businesses in Australia.

  • Rail upgrade to enhance regional trade

    Rail upgrade to enhance regional trade

    Cross-regional trade and cross-border investment across East and Southern Africa are on the cusp of major expansion, after authorities launched a $1.4 billion rehabilitation project for the iconic Tanzania-Zambia Railway (TAZARA). Backed by Chinese investment and delivered under the Belt and Road Initiative, the three-year modernization program will restore the 1,860-kilometer strategic corridor to its full operational capacity, transforming its role in regional connectivity.

    Originally constructed with Chinese assistance half a century ago, the aging railway is undergoing a full transition from outdated manual operation systems to a modern semi-automated network. This transformation promises to deliver far safer, faster and more dependable movement of cargo for the entire region, according to project leaders.

    Bruno Ching’andu, managing director of TAZARA, explained that the operational upgrade will boost service predictability and overall efficiency, repositioning the historic line as a core logistics backbone connecting landlocked Southern African economies to the Indian Ocean via Tanzania’s Port of Dar es Salaam.

    “By strengthening connectivity to this key Indian Ocean port, the project will cut transport costs for landlocked nations across the region, while providing a much-needed alternative to overstretched, heavily congested road networks,” Ching’andu noted.

    Headed by China Civil Engineering Construction Corporation, the rehabilitation project is expected to strengthen regional value chains across key economic sectors including mining, agriculture and manufacturing. Ching’andu highlighted that the upgraded corridor will be particularly well-positioned to support a projected surge in mineral exports, most notably copper from Zambia and the Democratic Republic of Congo, as production ramps up in the coming years.

    “Beyond mineral resources, the modernized railway will also streamline the movement of agricultural harvests, fertilizer, fuel and finished manufactured goods, cementing its role as an indispensable bulk cargo artery for the whole of East and Southern Africa,” he added.

    The comprehensive overhaul covers every aspect of the railway’s infrastructure and operations. Key upgrades include a full modernization of signaling and telecommunications systems, shifting to semi-automated, satellite-enabled infrastructure that allows for real-time train tracking and more strategic maintenance planning — changes that will drastically improve both safety and service reliability.

    In addition to track and digital upgrades, existing maintenance workshops and quarry facilities will be renovated, and new production facilities for railroad ties will be installed to support long-term upkeep of the corridor. The entire project will be rolled out in three phases, including replacement of worn-out rails and aging ties, rehabilitation of major bridges and culverts, and reinforcement of earthworks along the full length of the line.

    For rolling stock, the project will procure brand-new locomotives and freight wagons, while refurbishing existing rolling stock to meet modern international performance and safety standards. Ching’andu shared that preliminary surveys across all key project sections are nearly complete, and detailed engineering designs for the full rehabilitation are in the final stages of approval.

    Once the upgrade is finished, annual freight volume on the line is projected to jump from the current 400,000 metric tons to more than 2.4 million metric tons. Maximum train speeds will also increase from 40 kilometers per hour to roughly 70 kilometers per hour, enabling much faster and more consistent delivery of goods.

    Beyond improved infrastructure and trade capacity, the project is set to deliver substantial socioeconomic benefits to local communities. It will create at least 5,000 direct jobs during the construction phase across engineering, technical and support roles, with additional long-term employment opportunities expected to emerge as operational volumes expand following project completion.

  • Plan to bring tangible benefits

    Plan to bring tangible benefits

    Against a backdrop of persistent global economic uncertainty and ongoing volatility from cross-border shocks, international economic and policy experts are praising China’s targeted strategy to expand domestic demand and advance industrial upgrading outlined in the 15th Five-Year Plan (2026–2030), noting the agenda not only strengthens China’s own economic stability and rebalancing but also delivers measurable, long-term advantages to economies across the world, particularly developing nations in the Global South.

    Sourabh Gupta, a senior fellow at the Washington-based Institute for China-America Studies, outlined that the plan combines actionable measures to stimulate both household consumption and fixed investment while pursuing systematic industrial upgrading. On the industrial side, China has already made notable progress rationalizing sectors plagued by overcapacity, streamlining operations to boost overall global competitiveness for affected industries. In national accounting frameworks, industrial upgrading investments also count toward domestic consumption as final private purchases, amplifying the plan’s impact on internal growth.

    Gupta highlighted that the plan includes a slate of consumer-focused initiatives: expanding national networks of electric vehicle charging infrastructure, promoting growth in leisure segments including ice and snow tourism, developing nationwide circular economy recycling systems, and incentivizing spending from international inbound tourists. One of the most impactful long-term structural reforms outlined in the plan, he added, is the proposed shift of value-added and consumption tax collection points from the production (upstream) end of supply chains to the retail (downstream) end. This reform would align local government tax revenues directly with local retail consumption growth, giving regional authorities far stronger incentives to prioritize policies that boost household spending.

    Gupta also pointed to foundational policy changes rolled out in 2024 that laid groundwork for the 15th Five-Year Plan’s consumption-focused agenda, including accelerated reforms to China’s household registration system, expansions to national old-age insurance coverage, and improved workers’ compensation protections. These social safety net upgrades address key drivers of precautionary household savings, creating conditions for a sustained shift toward greater household consumption as a core driver of China’s economic growth.

    Looking at the global ripple effects of China’s domestic policy agenda, Gupta explained that expanded Chinese demand and industrial upgrading create two clear channels of benefit for Global South economies. First, rising domestic consumption in China drives increased import demand, directly supporting export-focused developing economies. Second, China’s global leadership in high-efficiency green technologies — including solar panels, energy storage batteries, and electric vehicles — creates accessible development opportunities for low- and middle-income nations. Developing countries can import affordable, high-performance green technology from China, attract Chinese investment to build local clean energy manufacturing capacity, or access low-cost financing through the Belt and Road Initiative to expand national infrastructure and grid electrification.

    “As China moves up the global value chain, it opens up new space for lower-income economies to grow,” Gupta noted. “It can relocate lower-value, labor-intensive production such as textiles, apparel, and footwear to Southeast Asia, African nations, and other emerging markets, then import those finished goods back to China. That directly powers export-led growth in those developing countries.”

    Chris Pereira, founder and CEO of New York-based global business and communications consulting firm iMpact, expanded on these cross-border spillover effects, emphasizing that China’s domestic growth strategy creates mutually beneficial, symbiotic partnerships rather than one-sided aid. “China’s push for domestic growth is creating a massive ‘spillover effect’ for the Global South,” Pereira said. “As China moves up the value chain, it’s not just exporting goods, but also affordable, high-efficiency technology. By aligning with China’s technological pace, developing nations can leapfrog traditional development hurdles that held back past generations of industrialization. This isn’t charity; it’s a symbiotic partnership.”

    Pereira added that the plan leverages China’s 1.4 billion-person consumer market to accelerate global industrial innovation, turning the country into a premier testing ground for cutting-edge technologies from multinational firms. “The 15th Five-Year Plan’s focus on boosting domestic demand isn’t just about encouraging people to buy more; it’s a strategic move to accelerate China’s industrial upgrading,” he explained. “For global firms, this has become a premier ‘testing ground’ where they can refine their most advanced technologies at ‘Shenzhen speed’ before scaling them globally.”

    Against a backdrop of repeated external shocks that have tested global economic resilience, China’s stable and expanding domestic market has emerged as a key anchor for global confidence. Ahead of the 2026 International Monetary Fund and World Bank Spring Meetings, IMF Managing Director Kristalina Georgieva emphasized in an April 9 speech that “a resilient world economy is being tested again” by ongoing external shocks, noting “the strength and agility of your fundamentals is your best defense when shocks come” and that well-designed policy makes a tangible difference for sustained growth.

    At an IMF panel focused on global imbalances held during the Spring Meetings, Helene Rey, a London Business School economics professor and incoming head of the Bank for International Settlements’ Monetary and Economic Department, noted that the 15th Five-Year Plan prioritizes pro-growth investments in human capital, including expanded investment in public healthcare, to support long-term structural rebalancing.

    Speaking on the same panel, Georgieva highlighted that China has demonstrated clear commitment to rebalancing toward stronger domestic consumption, a shift that delivers benefits both for China’s own long-term development and for global economic stability.

    Gupta echoed this assessment, noting that China’s steady growth and rebalancing act as a stabilizing force for the entire global economy. “Just China being stable and growing is already a huge positive for the world,” he said.

    At an April 9 seminar hosted by the Peterson Institute for International Economics (PIIE), PIIE senior fellow Tianlei Huang noted that China still retains significant fiscal space to implement more forceful countercyclical policies to support continued domestic demand expansion. Harvard economics professor and PIIE nonresident senior fellow Karen Dynan added at the same event that persistent disruptions from geopolitical conflict, elevated energy prices, and ongoing supply chain volatility have dragged down global growth projections, making strong domestic demand in large economies like China more critical than ever for sustaining global stability.

    The broad assessment that China’s 15th Five-Year Plan agenda supports both Chinese and global growth is shared by leading international organizations. Speaking at the China Development Forum earlier in April, IMF First Deputy Managing Director Dan Katz noted that “Their 15th Five-Year Plan prioritizes increasing consumption as a driver of economic growth, which would also help reduce China’s external imbalances. These are helpful measures, but China can do more to increase consumption and domestic demand — especially for services — by boosting household incomes and reducing incentives for precautionary savings.”

    In closing, Pereira emphasized that China’s 15th Five-Year Plan focus on expanding domestic demand creates inclusive shared opportunities, allowing businesses and economies across the world to gain from China’s continued growth. “As China doubles down on its own growth through domestic consumption and industrial upgrading, there’s plenty of room at the table for those ready to engage,” he said. “China remains the engine of global growth, and pragmatic companies see the opportunities as more tangible than ever.”

  • Australian shares hit longest losing streak in years on inflation fears

    Australian shares hit longest losing streak in years on inflation fears

    Australia’s benchmark share market extended its downward trajectory into a sixth consecutive trading session on Tuesday, marking its longest losing run in more than two years, as spiking crude oil prices and widespread investor anticipation of a key upcoming inflation reading dragged most sectors lower.

    The flagship S&P/ASX 200 shed 55.70 points, a 0.64% decline, to close at 8710.70, while the wider All Ordinaries index followed a similar path, falling 55.80 points or 0.62% to settle at 8935. The Australian dollar also weakened against the U.S. dollar, ending the session at 71.63 U.S. cents. This six-session losing streak is the longest the ASX 200 has recorded since June 2022.

    Out of the 11 major market sectors, nine closed in negative territory, with only the energy sector delivering consistent gains, lifted directly by the ongoing rally in global oil prices. International benchmark Brent Crude climbed an additional 2.5% to hit $US110 per barrel on Tuesday, as traders monitored stalled negotiations over a potential U.S.-Iran peace deal that has stoked concerns over global oil supply disruptions.

    Major Australian energy names logged solid gains on the back of rising crude prices: Woodside Energy saw its shares rise 0.84% to $32.40, oil and gas producer Santos gained 1.18% to close at $7.74, and fuel retailer Ampol added 1.27% to end the day at $34.26.

    These energy gains were more than offset by broad declines across consumer discretionary, healthcare, and materials sectors, as investors braced for Wednesday’s critical inflation data release. Markets fear that a hotter-than-expected inflation reading will give the Reserve Bank of Australia justification to resume its cycle of interest rate hikes, a prospect that has weighed heavily on rate-sensitive sectors.

    Leading the declines in consumer discretionary stocks, conglomerate Wesfarmers dropped 2.10% to $72.31, gaming giant Aristocrat Leisure fell 4.21% to $46.20, and Lights Wonder slipped 3.27% to $116.32. In the healthcare space, biotechnology leader CSL extended its recent downward trend, falling 2.22% to $128.90, Sigma Healthcare declined 0.72% to $2.75, and medical technology firm Pro Medicus dropped 1.53% to $136.

    AMP’s chief economist Shane Oliver warned that headline inflation is likely to spike to 5% in the March quarter data, driven by surging fuel costs and rising insurance premiums. “We are going to see a spike,” Oliver noted. “On our rough estimates fuel prices rose by 30 per cent in the month of March – a bit less for petrol, a lot more for diesel – and that is on its own going to add more than one percentage point to inflation.”

    Major mining stocks also slumped, pressured by rising operational fuel costs and a 1.14% drop in gold prices to US$4628 per ounce. BHP fell 1.30% to $55.43, Rio Tinto slipped 0.47% to $172.12, though Fortescue Metals bucked the broader trend to climb 1.72% to $20.11. Gold producers were hit particularly hard: Northern Star Resources dropped 2.89% to $21.50, Evolution Mining fell 2.98% to $12.69, and Newmont sank 4.50% to $158.69.

    Beyond domestic inflation expectations, market volatility continues to be driven by geopolitical tensions in the Middle East, according to Kyle Rodda, senior financial market analyst at Capital.com. Rodda noted that equity prices have fluctuated wildly on unconfirmed reports about potential plans to reopen the Strait of Hormuz, a critical global oil chokepoint. He added that those reports lack credibility, as follow-up negotiations between parties have failed to materialize, former U.S. President Donald Trump has rejected the proposed deal, and military forces continue to build up around the Persian Gulf.

    Interestingly, while Australian markets grappled with downside pressure, Wall Street notched another all-time record high during overnight trading on Monday.

    In individual company news, Domino’s Pizza Australia saw its shares plunge 10.70% to $15.85, mirroring a selloff in its U.S.-listed parent company after the American fast food giant reported first-quarter sales that missed analyst expectations. The company blamed weak consumer sentiment, intense industry competition, and ongoing cost-of-living pressures for the underperformance. Bega Cheese also dropped 4.28% to $5.59 even though the company did not release any price-sensitive new information to the market. In contrast, Reliance World rallied 3.68% to $3.15 after the firm confirmed its full-year trading outlook for the 2026 fiscal year ending June 30.

  • Japan’s central bank holds its key rate steady amid worries about the Iran war and energy prices

    Japan’s central bank holds its key rate steady amid worries about the Iran war and energy prices

    TOKYO – In a widely anticipated but closely divided policy move, the Bank of Japan (BOJ) voted Tuesday to maintain its benchmark interest rate at 0.75%, opting for policy stability as escalating conflict in Iran sends global energy markets into turmoil.

  • Crude extends gains as Trump considers latest Iran proposal

    Crude extends gains as Trump considers latest Iran proposal

    Global financial markets traded with heightened volatility on Tuesday, as crude oil prices extended upward momentum while equity indexes struggled for direction, driven by ongoing geopolitical negotiations between the United States and Iran that could reshape Middle Eastern energy security and end an eight-week-old regional conflict.

    Tehran has submitted a written peace proposal to Washington via diplomatic channels through Pakistan, outlining its core negotiating red lines that cover both its nuclear program and the future status of the Strait of Hormuz, the world’s most critical energy chokepoint. Under the reported interim framework, Iran has offered to immediately reopen the Strait of Hormuz — through which roughly 20 percent of global oil and liquified natural gas supplies transit daily — in exchange for the United States lifting its ongoing blockade of Iranian ports. More contentious negotiations over Iran’s nuclear activities, a long-standing sticking point for the Trump administration, would be deferred to a later date under the plan.

    The White House confirmed that President Donald Trump convened a meeting with senior advisors on Monday to review the Iranian proposal, but press secretary Karoline Leavitt declined to comment on whether Trump would accept the terms. The news comes just days after Trump abruptly scrapped a planned trip to Islamabad by top envoys Steve Witkoff and Jared Kushner, dashing earlier market hopes for a quick breakthrough. Top U.S. diplomat Secretary of State Marco Rubio already poured cold water on the proposal during an interview with Fox News, arguing that Iran’s offer does not meet Washington’s requirements. “If what they mean by opening the straits is, ‘yes, the straits are open as long as you coordinate with Iran, get our permission or we’ll blow you up and you pay us,’ that’s not opening the straits,” Rubio said.

    Separately, during a meeting with Iranian Foreign Minister Abbas Araghchi in Saint Petersburg on Tuesday, Russian President Vladimir Putin pledged that Moscow would deploy all possible efforts to bring an end to the ongoing Middle East conflict. Iran’s UN envoy Amir Saeid Iravani also told a UN Security Council session that Tehran requires binding guarantees that both the U.S. and Israel will halt future military strikes before it can offer full security assurances for Gulf waterways.

    Energy markets responded directly to the diplomatic developments, with both major global crude benchmarks extending gains. By 0230 GMT, West Texas Intermediate crude climbed 1.0 percent to settle at $97.32 per barrel, while Brent North Sea crude rose 1.0 percent to $109.27 a barrel, approaching the key $110 threshold that has stoked global inflation concerns. Equity markets were far more mixed, with most major Asian indexes ending the session in negative territory: Tokyo’s Nikkei 225 fell 0.5 percent to 60,238.21, Hong Kong’s Hang Seng Index dropped 0.3 percent to 25,851.82, and Shanghai’s Composite Index slipped 0.2 percent to 4,079.78. Gains were limited to a handful of regional exchanges including Seoul, Singapore, Taipei and Jakarta. In prior New York trading, the S&P 500 and Nasdaq notched new all-time record closes, while the Dow Jones Industrial Average edged 0.1 percent lower to 49,167.79 at close. London’s FTSE 100 also fell 0.6 percent to 10,321.09 on Tuesday.

    Tony Sycamore, a market analyst at IG, noted that mounting domestic pressures may push Iran toward a faster agreement. The country’s aging crude storage facilities are projected to hit full capacity this week, and if storage is exhausted, Iran will be forced to shut in production. “If forced shut‑ins follow, Tehran risks irreversible long‑term damage to its reservoirs and a serious hit to future production and revenue streams,” Sycamore explained. While he called the latest Iranian proposal a step in the right direction, Sycamore added that “it is hard to see the US accepting anything less than a comprehensive deal that both opens the Strait of Hormuz and addresses Iran’s nuclear weapons programme.”

    Beyond Middle Eastern geopolitics, global investors are also bracing for a packed week of high-stakes economic and corporate events. The Bank of Japan is set to announce its latest interest rate decision later Tuesday, with most market analysts expecting the central bank to hold policy steady. The U.S. Federal Reserve, European Central Bank and Bank of England are all scheduled to announce their own rate decisions this week, and most are expected to keep borrowing costs unchanged as the recent surge in energy prices stokes fresh fears of a renewed inflation spike. On the corporate side, earnings reports are due this week from three of the world’s largest technology companies — Apple, Meta Platforms and Microsoft — as well as major industrial and energy firms including Ford and ExxonMobil, which will give investors greater insight into the health of the U.S. and global economy.