International News 17/01
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Crude oil prices stabilized above $72 per barrel as tensions in the Middle East and global economic uncertainty affected the market outlook. The European Central Bank postponed interest rate cuts due to inflation and geopolitical risks.
Australian consumer confidence fell in January, remaining pessimistic for almost two years due to a surge in the cost of living and high interest rates. Despite an easing in interest rate hike fears, consumer confidence remains low.
Microsoft Inc has become the world's largest company by market capitalization, surpassing Apple Inc. This achievement can be attributed to Microsoft's focus on generative artificial intelligence (AI), a sector that is increasingly gaining investor support. Alongside Nvidia and Amazon, who are also prioritizing AI, Microsoft has experienced significant market growth over the past year, with its market value increasing by over $1 trillion. Analysts draw parallels between Microsoft's success and the early 2000s when technology and internet companies began to surpass consumer and financial firms. Microsoft's market capitalization reached a record high of $2.887 trillion, while Apple's market capitalization was $2.875 trillion at the end of last week, peaking on December 14 at $3.081 trillion. Microsoft's integration of OpenAI technology into its software suite has fueled the resurgence of its cloud computing business and also presents an opportunity to challenge Google in web search. On the other hand, Apple is currently facing challenges with its performance.
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According to a report from the Japan Chamber of Commerce and Industry in China, Japanese companies in China predict a bleak economic outlook for the country in 2024. The report reveals that about three-quarters of the 1,700 respondents in a survey expect China's economy to worsen or stay stagnant. China is Japan's largest trading partner and a significant investment destination for Japanese companies. The companies cited uncertainty about China's economic outlook, weak demand, and concerns about China's laws on espionage and cross-border data flows as reasons for not investing or reducing investment in China. The amended anti-espionage law and the detention of a Japanese businessman suspected of spying by China are examples of factors contributing to these concerns. Despite the challenging operating environment, half of the companies still consider China as the most important market globally.
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Lai Ching-te, the presidential candidate from Taiwan's ruling party, has won the 2024 presidential election. This election is significant as it marks an important moment in the relationship between Taiwan and China, which seeks to reunite with Taiwan through force if necessary. Hou Yu-ih, the candidate from Taiwan's main opposition party, the Kuomintang (KMT), has conceded defeat. Lai's party, the Democratic Progressive Party, advocates for Taiwan's independence and rejects China's territorial claims. Lai faces two strong opponents in the election, including Hou Yu-ih and Ko Wen-je, the former mayor of Taipei from the newly-founded Taiwan People's Party. Prior to casting her ballot, Lai urged people to vote to determine Taiwan's future, emphasizing the value of Taiwan's hard-earned democracy. China has denounced Lai as a separatist and has refused to engage in talks. Lai has expressed a commitment to maintaining peace in the Taiwan Strait and strengthening Taiwan's defenses. Taiwan's Defense Ministry has reported Chinese balloons crossing the sensitive Taiwan Strait.
https://internasional.kontan.co.id/news/lai-ching-te-menangkan-pemilu-presiden-di-taiwan