China's Lending Slumped Sharply

In July, new lending by Chinese banks reached only 260 billion yuan, representing an 88% decline from the previous month. Analysts had anticipated that new loans would reach 450 billion yuan. The decline is attributed to a number of factors, including sluggish demand, seasonal influences and negative economic conditions. These include slowing export data and rising inflation due to disruptions in food supply caused by adverse weather conditions. The People's Bank of China (PBOC) has pledged to provide policy support and ensure that credit growth returns to normal. The PBOC is working to reduce credit costs for businesses and individuals while promoting increased consumption.

https://internasional.kontan.co.id/news/penyaluran-kredit-di-china-merosot-tajam#google_vignette
 

US manufacturers hit by soaring property insurance costs

Property insurance costs for companies in the US are rising significantly, with some anticipating that premiums will double or triple upon renewal. The rise in insurance costs is having a particularly adverse effect on small and medium-sized manufacturers, who already pay higher premiums due to the inherent risks of their operations. James Kirsh, President of Kirsh Foundry in Wisconsin, a specialist in cast iron components, anticipates a significant increase in insurance costs this autumn. The broader insurance market has experienced a significant increase in premiums for a range of products, including homes and cars, in recent years. The rise in insurance costs is attributable to a number of factors, including the increasing costs of repairs to vehicles and residential properties, as well as the impact of climate change, which has resulted in a greater incidence of storm damage. The escalating insurance costs are creating significant challenges within the industry, and economists view them as a key factor driving inflation, prompting the Federal Reserve to raise interest rates. Consequently, factories and businesses are experiencing financial difficulties as a result.

https://internasional.kontan.co.id/news/produsen-as-terpukul-oleh-melonjaknya-biaya-asuransi-properti

Shell Production Expansion at Australian Project

Shell and PetroChina, through their joint venture Arrow Energy, have announced plans to expand the Surat coal gas project in Queensland. This expansion is in line with Shell's strategy of increasing investment and supporting the local energy supply. The second phase of the project is expected to produce in excess of 130 terajoules of additional gas on a daily basis. While Shell has not yet released the projected cost for this phase, the company anticipates that the project will contribute approximately 22,400 barrels of oil equivalent per day at its peak production. First gas production is expected to commence in 2026. Zhengxin Peng, CEO of Arrow Energy, emphasised the significance of this development, stating that it will reinforce Arrow's position as a major natural gas producer on the east coast, meeting the growing demand for gas in homes, businesses and industries.

https://internasional.kontan.co.id/news/ekspansi-produksi-shell-di-proyek-australia