Global Economy

The US Senate postponed a vote on the Clarity Act, digital asset legislation backed heavily by the crypto industry, until September after lawmakers left Washington for their August recess on Saturday. Senate Majority Leader John Thune, a Republican, filed for a procedural vote on September 15 that would need 60 votes to advance the bill to a full floor vote, but analysts say passage faces long odds given Democratic opposition and the compressed Senate schedule before November elections.

The bill would create a regulatory framework for crypto assets and ban government officials from operating crypto businesses, but Democrats and critics argue it lacks sufficient money laundering and ethics safeguards. "I think it's a long shot," said Brian Gardner, chief Washington policy strategist at Stifel, citing lawmakers' distance from agreement on contentious ethics provisions. The Senate returns September 14 and has only 14 days in session before the October recess, Channel NewsAsia business reports.

Nvidia said on Monday it has signed memorandums of understanding with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to launch compute financing platforms aimed at raising over $500 billion in third-party capital for AI infrastructure, Reuters reports.

The move reflects surging demand for AI computing capacity as governments, companies and startups race to build data centers. Nvidia said the arrangements would create "dedicated pools of capital at significant scale at attractive rates" for customers seeking to access scarce compute. The company did not disclose financial terms, individual investment commitments or a deployment timetable, Channel NewsAsia business reports.

Digital bank and e-wallet operator Maya is preparing for a potential initial public offering in 2027, according to chair Manuel V. Pangilinan, who said the planned listing remained "on track" despite rival GCash likely listing first. Pangilinan told the Philippine Daily Inquirer that preparations for going public take time, citing the experience of Maynilad Water Services, which spent about two years preparing for its market debut.

The Philippine Stock Exchange has not yet received a formal listing application from Maya, but PSE president and CEO Ramon Monzon said he was optimistic about the company's prospects. Pangilinan has previously expressed interest in a dual listing, with a US offering likely to precede a Philippine market debut. The potential IPO would give the PSE another major technology listing as the local bourse seeks to broaden a market long dominated by conglomerates and banks, Inquirer business (PH) reports.

More than 15.5 million Australians have not made a binding death benefit nomination for their superannuation, leaving funds free to decide who inherits their money when they die, according to research from Super Consumers Australia published Monday.

A survey of 5,000 people found 67 per cent had not been contacted by their fund about making a binding nomination in the past 12 months, while only 10 per cent had. The finding comes after Brooke Allan's uncle's non-binding nomination was overruled by his super fund, Cbus, which awarded his $130,000 payout to his estranged son instead of the nieces he had named.

Under Australian law, superannuation does not automatically form part of a person's estate or pass according to their will. As trustee, the super fund has discretion to decide beneficiaries. The federal government is consulting on whether to introduce mandatory time frames for funds to respond to claims, Nassim Khadem reports for ABC business (AU).

The Financial Markets Authority has identified a significant gap in financial guidance for New Zealanders reaching 65 and accessing their KiwiSaver savings, with head of financial advice Romil Ghelani telling RNZ that professional advice is commonly available only to high-net-worth clients.

"That's one of the hardest financial transitions that someone can make in their life," Ghelani said. He noted that while products exist to help people draw down retirement savings, they are less common in New Zealand than in other countries, and most ordinary savers rely on general information rather than personalised professional advice.

Some of the largest KiwiSaver providers are responding. ANZ Investments said it contacts members one year before they can access their funds at 65, offering free financial advice and reminders of their options both before and after their savings become available, with contact repeated six weeks before funds become accessible, RNZ business (NZ) reports.

Contact Energy reported a full-year net profit of $423 million, up 62 percent on its underlying earnings in the previous year, the New Zealand energy company said. The result was driven by the acquisition of Manawa Energy, a significant lift in renewable generation output, and operating free cash flow of $648 million, up 49 percent.

Contact also announced it is working with CDC to explore a potential new data centre near Stratford in Taranaki, to be powered by Contact's geothermal, wind and solar developments under a long-term contract, RNZ business (NZ) reports.

Japan recorded its first current account deficit in almost a year and a half, Channel NewsAsia reports, marking a reversal in the world's third-largest economy's external finances.

The shift reflects widening deficits in trade and income flows, though further details on the figures and timeframe are not yet available, Channel NewsAsia business reports.

Asian share markets edged higher on Aug 10 after a soft US jobs report reduced expectations for near-term interest rate rises, though stalled Gulf peace talks pushed oil prices up. Japan's Nikkei rose 0.6 per cent and South Korea added 0.5 per cent, while MSCI's broadest Asia-Pacific index outside Japan edged up 0.3 per cent, Reuters reports.

Iran said on Aug 9 a deal with Oman on new Strait of Hormuz shipping lanes was in final stages but repeated the waterway would reopen only once the US met other conditions. Brent crude added 0.9 per cent to $84.32 a barrel and US crude rose 0.7 per cent to $78.74 as shipping through the vital route remained minimal.

Futures markets have cut the odds of a Federal Reserve rate rise in September to around 44 per cent from 67 per cent a week ago. Analysts watch for the US July consumer price report due Aug 12, where a surprise rise could rekindle speculation of a September hike. "Our forecast for core CPI of 0.22 per cent is probably not quite firm enough to prompt a hike from the Fed at the September meeting, though repeated prints closer to 0.3 per cent could do it," said Michael Feroli, chief US economist at JPMorgan, The Straits Times reports.

The Bank of Japan and US Treasury spent an estimated $US97 billion last week to prop up the yen after it crashed through 162 to the dollar, driving it briefly to 155.21. The exchange rate has since slipped to just over 157.7, suggesting the intervention's effects are fading and further action may be needed.

Japan's economic fundamentals — extreme government debt exceeding 200 per cent of GDP, rising inflation and spending plans — are expected to reassert downward pressure on the currency. The large gap between Japanese bond yields (1.6-3.91 per cent) and US yields (4.2-5.2 per cent) has fuelled a multi-trillion dollar carry trade, with Japanese investors borrowing cheaply at home to invest offshore, keeping the yen weak, Stephen Bartholomeusz reports for SMH business (AU).

Indonesian President Prabowo Subianto has nominated Destry Damayanti, the acting governor of Bank Indonesia, to formally lead the central bank, Channel NewsAsia reports.

Damayanti has been serving as acting governor. The nomination now requires parliamentary approval to become permanent, Channel NewsAsia business reports.

Indonesia's currency has fallen to historic lows against the US dollar, breaching 18,000 rupiah per $US1 and remaining there since June, worse than levels during the 1998 Asian financial crisis. The rupiah has lost ground steadily since September 2024, when it traded around 15,000 per dollar, passing the psychological threshold of 17,000 in April.

"The damage in most of the economy is quite severe," economist Dipo Satria Ramli told ABC News. "Everyone is quite affected." The central bank has raised interest rates four times in quick succession, and the sudden resignation of its governor before the end of his term has deepened concerns.

Tempeh makers, whose soybean imports from the US have become far more expensive, are among the hardest hit. Ahmad Saikhu, secretary-general of a 4,000-member producers association, said the sector was in "total disarray". "If this keeps going on, our family finances will become total chaos," he said. "Within three to six months, a lot of businesses could go bankrupt, leading to widespread unemployment." Street food vendors have raised prices or cut portion sizes to cover rising production costs, Tim Swanston reports for ABC business (AU).

China's consumer price index rose 0.5 per cent year-on-year in July, the National Bureau of Statistics reported Aug 9, below a Bloomberg survey forecast of 0.8 per cent and the slowest increase since January. Factory-gate prices also grew slower than expected, rising 3.5 per cent from 4.1 per cent in June and below the 3.8 per cent forecast.

Zhiwei Zhang, chief economist at Pinpoint Asset Management, said the figures show "economic momentum softened" in the second quarter, noting that a late-July meeting of the Communist Party's Politburo signalled "stronger fiscal spending as the policy response" but that "a couple of months are needed to assess how it may boost domestic demand."

Sluggy domestic consumption has weighed on growth for years even as exports and high-tech sectors boom. The slowdown comes two days after July trade data showed exports and imports soaring, boosted by demand for AI-related technology products.

– AFP The Straits Times reports.

China's exports expanded 23.9 per cent year on year in July in US dollar terms, beating a 22.2 per cent forecast, as global demand for AI infrastructure drove semiconductor shipments that almost doubled, customs data showed on Aug 7.

Semiconductor exports nearly doubled in value, while overall high-tech product exports grew 40.7 per cent. Imports rose 27.5 per cent, in line with expectations. The trade surplus narrowed to US$112.5 billion from US$125.62 billion in June, though remains on track to exceed US$1 trillion for a second consecutive year, The Straits Times reports.

The Philippine economy expanded at its slowest pace in five years during the second quarter, according to Channel NewsAsia reporting.

No further details were available in the source material, Channel NewsAsia business reports.

The National Anti-Scam Centre has contacted around 1,500 victims by email following a successful money laundering prosecution of the director of Blue Star Exchange Pty Ltd, Scamwatch reports. The Australian Federal Police obtained the contact details during their investigation and passed them to the centre.

U.S. President Donald Trump raised the issue of transnational cyber scam compounds with Chinese President Xi Jinping, Michael DeSombre, assistant secretary of State for East Asian and Pacific Affairs, told the Senate Foreign Relations Committee on Thursday.

DeSombre did not say when the conversation took place or what Xi's response was. He told senators that Chinese crackdowns over the past six months "have actually been to some degree very successful in decreasing the amount of scam compounds in Cambodia" as well as Myanmar, driven partly by the gangs targeting Chinese nationals as well as Americans.

More than $12 billion was stolen from Americans last year in cyber scams, much of it by Chinese organized crime groups operating compounds in Cambodia, Laos and Myanmar. U.S. officials have warned that Chinese law enforcement is targeting gangs that scam Chinese citizens while allowing others to continue operating against Americans, and are seeking to prevent scam bosses from being extradited to China where "we don't have great transparency as to what happens to them," DeSombre said, The Record reports.

The Philippine economy expanded 2.3 per cent in the second quarter compared with the same period last year, Channel NewsAsia reports, falling short of expectations.

The slower-than-anticipated growth reflects weakness in one of Southeast Asia's larger economies as it grapples with inflation and cooling demand, Channel NewsAsia business reports.

Kea Aerospace, founded by Mark Rocket, has raised $17.5 million and opened a new manufacturing facility and mission control centre in Christchurch, the company announced. The facility will give the aerospace firm the capacity to build hundreds of aircraft.

The funding and infrastructure expansion come as Kea Aerospace scales operations in New Zealand. The company did not disclose further details about the funding round or timeline for production, Chris Keall reports for NZ Herald business.

The Philippine Stock Exchange Index fell 0.16 percent, or 10.33 points, to close at 6,286.31 on Wednesday as investors locked in gains late in the session, according to Inquirer reporting. Local stocks initially gained on inflation data that slowed to 6.2 percent in July, raising hopes for a more accommodative monetary policy from the Bangko Sentral ng Pilipinas, but selling pressure intensified toward the close.

"Investors initially welcomed the softer inflation data, raising hopes for a more accommodative monetary policy outlook. However, selling pressure intensified toward the close as traders locked in recent gains, resulting in a weaker finish," said Luis Limlingan, head of sales at Regina Capital Development Corp.

The broader market showed relative resilience, with 102 advancing stocks outnumbering 84 decliners. Mining and oil was the only sector to finish higher, climbing 4.63 percent, while financials, industrials, properties, services and holdings all declined. Foreign investors were net sellers, unloading P585 million in local shares, Inquirer business (PH) reports.

Council leaders say crumbling water infrastructure and severe drought across the south and east of England are jeopardizing the government's plan to build 1.5 million homes by the end of parliament, with half the country now in serious drought for the second consecutive year.

"We cannot magic up more water," said Paul Harvey, the Independent leader of Basingstoke and Deane council in Hampshire, which is being told to build more than 1,000 houses a year. A water cycle study found demands from new housing may exceed sustainable supply limits.

The Environment Agency's mapping shows roughly a third of the country has no additional river water available under normal conditions to serve new homes or industry. In some areas targeted for growth, fenlands face collapse from over-extraction and chalkstreams require artificial maintenance, according to the Guardian's reporting, Guardian business reports.

UK petrol prices have risen to 160p a litre, the highest level since November 2022, as renewed conflict in the Middle East pushes up global oil costs. The RAC said the cost of filling a family-size car with unleaded petrol has risen to £88, while diesel has jumped 14.5p to 179p and is forecast to reach 185p within weeks.

Fuel prices had fallen to 151p in early July after the US and Iran agreed a ceasefire in mid-June. However, Donald Trump has in recent weeks resumed strikes on Iran, prompting retaliation and raising tensions in the strait of Hormuz, a critical oil shipping route. Brent crude rose above $90 a barrel on Friday as Iran's Islamic Revolutionary Guard Corps said it had struck two tankers in the strait.

The price rise comes as 20.5 million UK drivers are expected to take to the roads during the peak holiday season. An AA spokesperson said the timing was "very bad", though fuel prices have been tracking wholesale costs more closely since the government introduced a mandatory fuel price reporting scheme in May, Zoe Wood reports for Guardian business.

The 'Lindsey O Graham Sanctioning Russia Act of 2026' cleared the US Senate on a vote of 86 to 12 this week, advancing to the House after summer recess. The bill authorises the president to impose tariffs of up to 100 percent on exports to the US from the top five purchasers of Russian energy, targeting countries including India and China that continue buying Moscow's oil, according to Al Jazeera.

Ukrainian President Volodymyr Zelenskyy, attending late Senator Graham's funeral in Washington, watched the vote from the gallery and called it "the first step towards implementing Lindsey's plans". However, President Donald Trump has ordered lawmakers to add Iran-related tariff provisions to the bill, a move analysts say could lose Democratic support and delay passage further.

HSBC is closing all 19 Australian branches over the next 18 months after selling its mortgage and personal loan portfolio to Blackstone, ending decades of retail banking in the country. The London-based bank will continue private and institutional banking services, with the sale expected to complete in the first half of 2027, subject to regulatory approval.

The bank's consumer loan book holds about $36bn in assets, mostly mortgages. Blackstone has appointed lending firm Pepper Money to service the loans after completion. HSBC has 2,000 employees in Australia; the bank said it was too early to detail job losses but would need most of its retail team during the wind-down period.

The exit reflects the difficulty foreign banks face competing in Australia's mortgage market, dominated by the big four domestic lenders and Macquarie, which together control about 80% of home loans. Citi and other overseas banks have previously withdrawn from Australian mortgage lending, Guardian business reports.