Asia's factory activity experienced a decline in May, impacted by weak demand from China and the lingering effects of US tariffs. Manufacturing operations in Japan and South Korea continued to contract, while concerns over potential US automobile tariffs created uncertainty. China's manufacturing sector also showed contraction, signaling a broader economic slowdown in the region.
Related news
Zoho cofounder Sridhar Vembu argues that the primary concern with AI and automation isn't job loss, but equitable wealth distribution. He envisions two potential solutions: drastically reduced costs of goods or increased compensation for human-centric roles. Vembu stresses the importance of regulatory oversight to prevent monopolies and ensure automation benefits are widely shared.
The European Central Bank is expected to announce its seventh consecutive interest rate cut amidst a struggling eurozone economy. Concerns over economic performance outweigh inflation worries, exacerbated by US President Trump's fluctuating trade policies. HSBC anticipates the rate reduction following recent US tariff announcements. While a quarter-point decrease is expected, analysts suggest a pause in July to evaluate economic trends.
IATA forecasts airlines to achieve a combined profit of $36 billion in 2025, a rise from $32.4 billion in 2024. Director General Willie Walsh cautioned against geopolitical disputes affecting airspace and highlighted supply chain challenges. India hosted the AGM for the first time in 42 years, with the next one scheduled for Brazil in 2026.
Foreign Portfolio Investors (FPIs) initially withdrew Rs 8,749 crore from Indian equities in early June amid global uncertainty. However, a significant shift occurred after the RBI's unexpected 50 basis points rate cut, boosting investor confidence.
Procter & Gamble, the consumer goods giant, will implement significant layoffs. Around 7,000 employees, or 6% of the global workforce, may lose their jobs. This decision comes amid rising input costs and softening demand. The company aims to streamline operations and exit select markets. Andre Schulten announced the restructuring at a conference in Paris.
Jefferies reports a positive outlook for Indian bonds due to falling inflation and anticipated RBI rate cuts. India's 10-year government bond has significantly outperformed US Treasuries. Global investors are increasingly drawn to Indian bonds, seeking higher yields and stability amidst a shift away from G7 debt, signaling confidence in the Indian market.
India's defence budget is set for substantial growth, potentially reaching Rs 31.7 lakh crore by 2047, according to a CII-KPMG report. Defence production and exports are also projected to surge, positioning India as a key global supplier. Increased capital expenditure and R&D investment are expected, alongside a rise in defence's GDP share.
Victoria's Secret has postponed its quarterly earnings release following a security breach that disrupted operations and forced its US website offline. The company detected the incident on May 24, initiating response protocols and engaging experts. Preliminary results show $1.35 billion in net sales, exceeding forecasts. The breach, potentially a ransomware attack, impacted in-store services and corporate systems, hindering financial reporting.
Brazilian aerospace giant Embraer is planning to significantly increase its sourcing from India and may even establish a final assembly line if it secures a firm order for 200 aircraft from Indian clients. Currently, Star Air is the sole Indian airline using Embraer planes. The company is in talks with Air India, IndiGo, and several startups for potential orders.
Udaan, a B2B ecommerce platform based in Bengaluru, has secured $114 million in funding led by M&G Investments and Lightspeed. The company intends to use the capital to strengthen its presence in the FMCG and staples categories. While maintaining a valuation of $1.8 billion, Udaan reported a revenue growth of over 60% year-on-year in 2024.