International News 01/08
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Temasek to Invest US$30 Billion in the US
Singaporean investment company Temasek has announced plans to invest approximately $30 billion over the next five years in the healthcare, financial services, and technology sectors in the United States. Jane Atherton, head of North America at Temasek, highlighted the US as a market with a deep and broad capital market and a leading position in the field of artificial intelligence (AI). The US economy has performed well, with higher-than-expected growth in Q2 and ongoing outperformance compared to the rest of the world. In contrast, China has reported weaker growth and taken the unexpected step of cutting interest rates in a bid to boost its economy. Temasek's investments in the Americas currently represent 22% of its portfolio, surpassing China for the first time in a decade. In the United States, Temasek is particularly interested in data centres, semiconductors, and battery storage.
https://internasional.kontan.co.id/news/temasek-bakal-investasi-us30-miliar-di-amerika-serikat
Ethiopia Secures US$3.4 Billion in New Financing from IMF
Ethiopia has secured a $3.4 billion financing agreement with the International Monetary Fund (IMF) in order to address economic challenges, including high inflation and foreign currency shortages. The agreement permits an immediate disbursement of approximately $1 billion. Ethiopia has long faced challenges related to inflation and a shortage of foreign currency, which have been further exacerbated by internal conflicts in the Tigray region. These conflicts have hindered economic growth and contributed to social instability. In early 2021, Ethiopia submitted a debt restructuring request under the G20 Common Framework. However, progress was hindered by the two-year civil war in Tigray. Following the conclusion of the conflict in November 2022, the Ethiopian government implemented a series of substantial economic reforms in order to meet the requirements set out by the IMF. One noteworthy reform is the implementation of an interest rate-based monetary policy, which illustrates the government's dedication to the IMF negotiations for a new programme.
McDonald's Sales Fall Globally for First Time in 3 Years
McDonald's reported a surprising decline in global sales for the first time in 13 quarters. This decline is attributed to customers seeking cheaper deals and avoiding higher-priced menu items. Due to persistent inflation, low-income consumers are opting for more affordable meals at home, causing fast food chains like McDonald's to rely on budget packages to attract customers. McDonald's shares, which have decreased 15% this year, saw a 4% increase after the company executives announced that the US$5 meal plan, launched in June, sold better than expected. The company plans to extend the promotion into August in collaboration with franchises. They also stated that they will be more selective in raising prices to maintain profitability, while sticking to their 2024 operating margin forecast of 40% to 50%. Despite the current decline in customer traffic, it is expected to improve in the second half of the year with better menu offerings.