China’s inflation down in September yet producer prices reach an all-time high: Economic wrap

China’s inflation down in September yet producer prices reach an all-time high: Economic wrap
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Updated 14 October 2021

China’s inflation down in September yet producer prices reach an all-time high: Economic wrap

China’s inflation down in September yet producer prices reach an all-time high: Economic wrap

Yearly inflation rate in China marginally declined to 0.7 percent in September, decreasing from 0.8 percent in August, official data showed. This is the lowest annual inflation rate since March of this year.

Unlike elsewhere, food prices fell in the country on an annual basis. Prices of non-food items slightly changed — up 2 percent — compared to 1.9 percent in the previous month.

In addition, monthly consumer prices remained unchanged in September from August.

Meanwhile, annual producer prices reached a record high in September, increasing to 10.7 percent from 9.5 percent the previous month.

Means of production costs surged by 14.2 percent in September, with prices relating to extraction and raw materials soaring by 49.4 percent and 20.4 percent respectively.

Australia’s unemployment

The Australian seasonally adjusted unemployment rate reached 4.6 percent in September 2021, barely changing from the indicator’s near-13-year low of 4.5 percent in August, the Australian Bureau of Statistics said. This was also the first increase in the unemployment rate since September 2020.

In addition, the country’s participation rate fell by 0.7 percent to reach 64.5 percent.

Spanish Inflation

According to the National Institute of Statistics, yearly inflation in Spain rose for the third consecutive month to 4 percent  in August 2021, the highest level since September 2008.

Inflationary pressures were most visible in the housing and energy markets. Housing prices rose by 14.5 percent while costs of gas and other fuels leaped by a significant 34.3 percent.

On a monthly basis, consumer prices rose to 0.8 percent, jumping from 0.5 percent in the previous month.

On the other hand, annual core inflation rate, which excludes volatile food and energy costs, increased slightly to only 1 percent in September, compared to 0.7 percent in August. 

Japan’s industrial production

Japan’s monthly industrial output decreased by 3.6 percent in August, continuing its trend of decline experienced in August when it fell by 1.5 percent. This was partly driven by a rise in Delta variant cases across the country.

Motor production led the decline as its output plummeted by 15.2 percent. Information and communication electronics equipment also plunged by 13.5 percent and electrical machinery production fell by 8.6 percent.

However, on an annual basis, industrial output grew by a noticeable 8.8 percent in August.

Singapore’s GDP 

Singapore's yearly economic growth slowed to a still-high 6.5 percent in the third quarter, preliminary official data showed. In the previous quarter, output soared by an annual rate of 15.2 percent, due to last year’s low base effect.


Tadawul aims to offer incentives for tech startup firms: Bloomberg

Tadawul aims to offer incentives for tech startup firms: Bloomberg
Updated 14 sec ago

Tadawul aims to offer incentives for tech startup firms: Bloomberg

Tadawul aims to offer incentives for tech startup firms: Bloomberg

Saudi Arabia’s stock exchange is discussing introducing incentives for tech startups backed by venture capital investors and technology firms, Bloomberg reported citing people familiar with the matter.

The stock exchange’s smaller market, Nomu, is where the small tech firms are expected to raise capital.

Currently, Tadawul doesn’t provide incentives to list on Nomu, but it could offer regulatory waivers for tech startups to speed up their listing, according to Bloomberg.

In the UAE, tech-startups received considerable financing solutions.

In interviews with CNBC Arabia, Ammar Al Malik said that facilities received by tech startups in Dubai Internet City reached AED1.4 billion ($380 million) while Jida Itani, COO of Abu Dhabi-based Hub71, stated that the firm provided over $260 million to startup companies.

Having the diversification of the economy as its target, the Kingdom aims at attracting tech investments as efforts to create more jobs in the labor market gain pace.


Islamic Development Bank announces its final issuances

Islamic Development Bank announces its final issuances
Updated 42 min 59 sec ago

Islamic Development Bank announces its final issuances

Islamic Development Bank announces its final issuances

RIYADH: The Islamic Development Bank of Saudi Arabia has announced the price of its second and final issuances as part of its plan to mobilize financial resources.

The Saudi Press Agency reported the final price of issuance instruments by the bank was SR6.3 billion ($1.7 billion), due to five years of annual returns by 1.435 percent, as a part of the bank medium-term instruments program of SR93.7 billion ($25 billion).

The President of the Islamic Development Bank, Muhammed Sulaiman Al-Jassar, said he wanted to "thank investors" for trusting the institution during the recovery from the pandemic.


Private equity giants Blackrock and Blackstone will attend FII5: CEO

Private equity giants Blackrock and Blackstone will attend FII5: CEO
Updated 46 min 30 sec ago

Private equity giants Blackrock and Blackstone will attend FII5: CEO

Private equity giants Blackrock and Blackstone will attend FII5: CEO

Blackrock and Blackstone, two of the world’s leading private investment management companies, will be attending the fifth anniversary of the Future Investment Initiative (FII), the foundation’s chief executive officer said in a press conference on Thursday.

Richard Attias, IFF’s CEO, also added that Africa will occupy a big place in the event, with presidents of Rwanda and Gabon attending, as well as several African speakers and leaders.

The head of the organization indicated that out of the 5200 participants registered for FII5, 70 percent are from Europe and North America.

Chinese attendees will be small in number because of the 3-week mandatory quarantine, but about 50 speakers from the country will be contributing, he added.


Goldman Sachs, Freshfields working on possible Porsche IPO: Manager magazin

Goldman Sachs, Freshfields working on possible Porsche IPO: Manager magazin
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Updated 21 October 2021

Goldman Sachs, Freshfields working on possible Porsche IPO: Manager magazin

Goldman Sachs, Freshfields working on possible Porsche IPO: Manager magazin
  • Goldman and Freshfields both declined to comment.

 Investment bank Goldman Sachs and law firm Freshfields are among advisors working on a possible listing of Volkswagen's luxury unit Porsche AG, manager magazin reported on Thursday, without saying where it obtained the information.


Goldman and Freshfields both declined to comment. Volkswagen had no immediate comment.

People familiar with the matter had told Reuters in May that the Porsche and Piech families, who control largest shareholder Porsche SE, are prepared to take a direct stake in Porsche AG should the luxury carmaker be separately listed.


Asked about the idea of a Porsche listing, talk of which has surfaced regularly in recent years, Volkswagen Chief Executive Herbert Diess in July said that while the company continued to review its set-up its battery ramp-up was the priority. 


Oil hits multi-year high above $86, then pulls back

Oil hits multi-year high above $86, then pulls back
Image: Shutterstock
Updated 21 October 2021

Oil hits multi-year high above $86, then pulls back

Oil hits multi-year high above $86, then pulls back
  • The price of Brent has risen over 60 percent this year

Oil hit a three-year high above $86 a barrel on Thursday driven by tight supply and a global energy crunch, although prices eased as some investors took profits on signs the rally is looking overstretched.


Helping to drive the latest gain, a supply report from the U.S. Energy Information Administration on Wednesday showed crude and fuel inventories tightened, with crude inventories at the Cushing storage hub falling to a three-year low.

Brent crude rose as high as $86.10, the highest since October 2018, but by 1155 GMT was down 92 cents, or 1.1 percent, to $84.90. U.S. West Texas Intermediate crude fell 74 cents, or 0.9 percent, to $82.68.


"Traders who had set $86 as their selling threshold took the opportunity to already pocket some profit," said Louise Dickson of Rystad Energy. "Oil prices took a dive as a result."


The price of Brent has risen over 60 percent this year, supported by a slow ramp-up in supply by the Organization of the Petroleum Exporting Countries and allies, and a global coal and gas crunch which has driven a switch to oil for power generation.


Oil also came under pressure from a drop in coal and natural gas prices. In China, coal fell 11 percent on Thursday, extending losses this week since Beijing signalled it might intervene to cool the market.


"With coal and gas prices easing and with the relative strength index technical indicators still in overbought territory, the odds of a sharp, but material fall in oil prices are rising," said Jeffrey Halley, analyst at brokerage OANDA.


Even so, some analysts are calling for oil to rally even more as OPEC+ is likely to stick to its plan for gradual output increases while demand is expected to reach pre-pandemic levels.


Rystad said the outlook was bullish for the rest of the year and Giovanni Staunovo of Swiss bank UBS said in a report he expected Brent to trade at $90 in December and March.