Klang Valley Storm Causes Disruptions Amid Legal and Community Challenges
The Klang Valley faces significant disruptions following a severe evening storm, with fallen trees and traffic incidents. Former Prime Minister Najib Razak’s defense in the 1MDB case continues to make headlines as the High Court prepares for a crucial ruling. Meanwhile, the Malaysian Meteorological Department warns of heavy rainfall ahead, and a grieving community rallies around a family after a tragic accident. Stay informed on these pressing issues affecting Malaysia.
Manufacturing Sector Faces Continued Contraction, ISM Report Reveals
The July Manufacturing ISM® Report reveals continued contraction in the U.S. manufacturing sector, with the Purchasing Managers’ Index (PMI®) dropping to 46.8%. Key metrics, including the New Orders Index and Production Index, indicate weakening demand and output. Despite the overall economy remaining in expansion, manufacturers face significant challenges, including reduced employment levels and tighter supply chains. The report underscores the importance of monitoring these trends as they may impact the broader economy.
US Output Growth Hits 26-Month High in June, Price Pressures Cool
US business activity growth accelerated to its fastest in 26 months in June, with the service sector leading the upturn. Enhanced business confidence and increased demand prompted firms to increase their workforce for the first time in three months. Selling price inflation also rose, indicating a robust end to the second quarter.
Average Age of Vehicles in the US Hits Record High in 2024
Recent data from S&P Global Mobility reveals that the average age of vehicles in the United States has reached a record high of 12.6 years in 2024. This trend is driven by factors such as high prices of new vehicles and uncertainties surrounding the transition to electric vehicles, leading consumers to hold onto their cars for longer. As the vehicle population ages, there is a growing market for aftermarket and vehicle service companies to provide maintenance and repairs for older vehicles.
Mixed Reactions to Congressional Stablecoin Legislation
The Congressional stablecoin legislation, introduced by Senators Kirsten Gillibrand and Cynthia Lummis, has generated mixed reactions. While the crypto industry supports the bill’s aim to regulate fiat-backed coins, traditional finance voices concerns. Hilary Allen from American University’s Washington College of Law warns about the potential disastrous consequences of the bill, citing issues with stablecoin robustness and FDIC receivership provisions. Despite the bill’s goal of enhancing regulation, Allen stresses the importance of addressing potential pitfalls and unintended consequences.
Boeing Faces Credit Downgrade Amidst Commercial Struggles
Boeing faces financial challenges as Moody’s downgrades its credit rating due to struggles in the commercial airplanes segment. Quality-control issues, including those with the 737 Max aircraft, have hindered cash flow generation. Despite the downgrade, CEO Dave Calhoun remains optimistic about generating $10 billion in free cash flow by 2025 or 2026. Boeing ended the first quarter with $7.5 billion in cash and short-term securities, with access to $10 billion in undrawn credit for financial flexibility.
S&P Global Downgrades China Vanke to Junk Status
S&P Global downgraded China Vanke, the second-largest property developer in China, to junk status, signaling further trouble for the country’s struggling property sector. The credit rating agency slashed China Vanke’s rating by three notches to BB+, citing weakening competitive position and rising leverage. This move comes as the latest blow to the Chinese property market, which has been grappling with a sustained downturn. The downgrade reflects concerns about China Vanke’s ability to maintain sales and margins, with S&P projecting a significant drop in contracted sales over the next few years. The agency estimates that the firm’s contracted sales could decline by 25%-28% from the previous year and by a staggering 60% from the peak levels of 2020. Moody’s and Fitch had previously downgraded China Vanke, and S&P’s latest action underscores the deepening challenges faced by the company. The subsidiary, Vanke Real Estate (Hong Kong), and the issue rating on Vanke HK’s senior unsecured notes were also downgraded in line with the parent company’s rating adjustment. While China Vanke is expected to meet its debt obligations for the current year, the outlook remains bleak as the property market continues to struggle. The successive downgrades by major credit rating agencies reflect the broader concerns surrounding the Chinese property sector, which has been under pressure due to a sustained market downturn.
Private Sector in Germany Remains in Downturn, US Output Growth Reaches Fastest Pace
The latest HCOB ‘flash’ PMI® survey compiled by S&P Global showed that the private sector in Germany remained in a downturn as business activity fell for a seventh straight month in January. The survey also indicated signs of broad-based weakness…
S&P Global Inc. stock falls but outperforms market
Apple just ceded one crown to Microsoft, but it picked up a new one S&P Global Inc. stock falls Tuesday, still outperforms market Shares of S&P Global Inc. (SPGI) slumped 0.10% to $436.55 on Tuesday, marking a downturn in an…
UK Factory Output Lower Than Expected After Fall in Domestic and Export Orders
UK Factory Output Lower Than Expected After Fall in Domestic and Export Orders By Economics correspondent Richard Partington Britain’s factories started the year on a weaker footing after 17 consecutive months of contraction, as higher borrowing costs and a slump…