International News 16/07
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US Consumer Inflation Fell in June.
In June, the US consumer price index (CPI) declined unexpectedly by 0.1%, following no change in May. This decline indicates that the disinflationary trend is ongoing, which brings the Federal Reserve's anticipated interest rate cut closer. On an annualised basis, the Consumer Price Index (CPI) inflation rate for June was 3.0%, down from May's 3.3%. Economists had anticipated a 0.1% increase and a 3.1% annualised increase. The annual consumer price increases have slowed down from a peak of 9.1% in June 2022, but remain above the Federal Reserve's inflation target of 2%. The Personal Consumption Expenditure (PCE) price index also saw an increase of 2.6% in May. This news of a decline in inflation follows reports that the unemployment rate increased from 4.0% in May to 4.1% in June. The deceleration in economic growth is thought to be attributable to the central bank's earlier interest rate increases in 2022.
https://internasional.kontan.co.id/news/inflasi-konsumen-as-turun-pada-juni
The price of nickel has fallen significantly, leading BHP to suspend operations at two mines.
BHP Group, the largest nickel mining company in Australia, has announced its intention to suspend operations at its Nickel West and West Musgrave projects with effect from October. The decision was taken in response to the decline in nickel prices and the excess supply in the global market. Geraldine Slattery, President of BHP Australia, stated that the company has been unable to overcome the economic challenges caused by the global oversupply of nickel. The suspension will be reviewed in February 2027, with BHP planning to invest approximately US$300 million annually to support the potential resumption of the nickel business. Despite a partial recovery in nickel prices at the start of the year, they remain approximately 25% lower than the 2023 level. The decline in global nickel production has been further compounded by Indonesia's move away from using nickel in batteries, resulting in a 40% reduction in nickel metal prices over the past year.
https://internasional.kontan.co.id/news/harga-nikel-anjlok-bhp-tangguhkan-operasi-2-tambangnya
The owner of Uniqlo has announced a 31% surge in profits for the third quarter of 2024.
Japanese retailer Fast Retailing, the owner of Uniqlo, has announced a 31% increase in third-quarter operating profit, driven by robust sales performance in its domestic market. Profits increased to 144.7 billion yen ($894.81 million) compared to 112.5 billion yen the previous year, exceeding the consensus forecast of 127.1 billion yen. Fast Retailing has revised its full-year profit forecast upwards from 450 billion yen to 475 billion yen. The company is benefiting from the weak yen, which has increased the value of its overseas sales. The company plans to pursue aggressive expansion in China, North America, and Europe, capitalising on the shift in consumer preferences towards value over luxury caused by the pandemic. However, its Chinese operations experienced a decline in revenue and profit over the nine-month period, due to strong performance in the previous year and a general decline in consumer interest.