Reuters Insider - Asia Insight: China's April exports unexpectedly rise but outlook still grim
07/05/2020 09:30
Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=1_lyreb5zo&referenceId=1_lyreb5zo&pageId=ReutersNews Source: Reuters Insider Description: China's exports unexpectedly rose in April for the first time this year as factories raced to make up for lost sales due to the coronavirus shock. But a double-digit fall in imports signals more trouble ahead as the global economy sinks into recession. Short Link: https://refini.tv/3ftGWWY Video Transcript: There has been some unexpected good news for China's economy. Exports rose in April for the first time this year. Overseas shipments were up by 3.5%. Analysts had expected a steep decline. However, weak domestic demands saw imports fall more than 14%, much worse than a Reuters poll of economists had forecast. That weakness in demand at home was reflected in a disappointing set of numbers for China's services. The Caixin measure of activity slowed to 44, well below the level that separates growth from contraction. Services companies cut jobs at the fastest pace on record as orders plunged for the third straight month and businesses scramble to cut costs. Australia's exports, like China's, surged during April as it shipped more iron ore. The trade surplus also widened to a record $6.8 billion for the month. Exports of gold more than tripled amid a global rush for the safehaven metal. Stocks across the region paired early losses after those China trade numbers. Japan's Nikkei rose modestly while China's blue chip CSI 300 was off only marginally. South Korea's KOSPI ended the session more or less flat. Oil prices turned flat after six sessions of gains, during which the price of the benchmark Brent crude almost doubled. US Nymex crude added around $0.08 to hit just over $24 a barrel. New Zealand's Prime Minister says the country is a safehaven for investors looking to protect their assets. Jacinda Ardern says the success in curbing the coronavirus outbreak has given the country a huge advantage over others in the Asia-Pacific region. Her comments come after Microsoft announced plans to set up its first data center region in the country. Our decision to go ahead and go early on the health front for COVID-19 has been our best economic response. Now it's about positioning New Zealand to recover, and building on investment opportunities such as this one. More broadly, it is my view that by tackling the virus, we have positioned our economy to be able to rebuild ahead with many others globally. That is our safehaven strategic advantage. Let's take a look at some companies in the news and sources and told Reuters that the US is close to signing off on a new rule that would allow American companies to work with Huawei on setting standards for the next generation of 5G networks. Washington put Huawei on a ban list last year, which left US telecoms firms taking a back seat in global negotiations. The Chief Executive of Hong Kong Exchanges and Clearing is stepping down after the company reported a drop in quarterly profit. Earnings fell by around 13% to USD291.5 million which is losses on investments. GlaxoSmithKline is selling $3.45 billion worth of shares in Unilever's Indian business on the open market. The 5.7% stake in Hindustan Unilever was accepted by GSK as payment for the sale of malted-drink brand Horlicks and other nutrition brands to Unilever in 2018. The heir to the Samsung dynasty has apologized over last year's bribery scandal and the lack of a succession plan. J.Y. Lee also said he was sorry for the behavior of executives caught sabotaging labor union activities and promised to respect their rights. Critics say it was less than apology than a legal defense. We failed to live up to public expectations. We even cause disappointment and concern because we did not strictly uphold the law or ethical standards. There was also a lack of communication and empathy with society. And the owner of KFC and Pizza Hut in China says it plans to open more restaurants in the coming months. Yum China is betting that consumers will still choose to dine out in the aftermath of the pandemic. The company plans to open 850 new stores across the country this year, focusing on smaller cities