NATO allies formally back bids by Sweden, FinlandBloombergNATO leaders yesterday formally invited Sweden and Finland to join the military alliance, paving the way for reshaping European defense by lengthening the alliance’s border with Russia. “The accession of Finland and Sweden will make them safer, NATO stronger and the Euro-Atlantic area more secure,” according to summit conclusions agreed by NATO leaders in Madrid after weeks of stalling by Turkey. The path to membership includes the need for ratification from NATO members’ parliaments. Photo: ReutersThe leaders welcomed a memorandum agreed by Turkey, Sweden and Finland late on Tuesday that led to Ankara lifting its block on the countries’ bids to join. In a new Strategic Concept document setting out long-term strategic guidelines, the leaders highlighted ties between China and Russia.

German consumer mood hits new low as prices soarAFP, FRANKFURTThe mood among German consumers has reached an all-time low, a key survey published yesterday showed, as the war in Ukraine drives a painful wave of inflation. Pollster GfK’s forward-looking barometer fell to minus-27.4 points for next month, the lowest figure since the series started in 1991. The deterioration in the index was due “above all” to the rising cost of living, GfK consumer expert Rolf Buerkl said in a statement. “Broken supply chains,” which have likewise contributed to higher prices, were also behind the darkening mood among consumers, Buerkl said. Income expectations fell to minus-33.5 points this month, down by 9.8 points from the previous month, the lowest value in almost 20 years.

The Netflix Inc logo is displayed on top of its office building in Hollywood, California, on March 2. Photo: AFPThe company’s Asia strategy is informing moves in other emerging markets, where the platform must also grow to balance out saturation in North America and Europe. “Asia is a great proxy for other markets in the world,” Zameczkowski said. “There are similarities between emerging Asia and other emerging markets like Africa and Latin America. Netflix’s customers in Asia are also some of its lowest-value ones, which means many more subscriptions are required to juice revenue.

Wimbledon happy to attract top starsAFP, LONDONWimbledon chief executive Sally Bolton yesterday said that she was relieved the world’s top stars had showed up at the Grand Slam even though no ranking points would be on offer. It means players such as US Open champion Daniil Medvedev, Andrey Rublev, Aryna Sabalenka and Victoria Azarenka cannot play in London. France’s Benoit Paire returns to fellow countryman Quentin Halys in their men’s singles match on the first day of Wimbledon in London yesterday. Photo: AFPBolton, who said the decision to ban the players had been “incredibly difficult,” reiterated that Wimbledon organizers were disappointed with the decision. “Hugely significant and actually the fact that we didn’t have it last year I think really emphasized to everybody the significance and importance of it,” she said.

New Delhi, EU resume free-trade talksAFP, NEW DELHIIndia and the EU yesterday resumed talks on a free-trade deal after a nine-year gap, as Western countries seek to wean New Delhi off its close economic ties to Russia. Photo: ReutersThe EU is India’s second-biggest trading partner after the US, but talks with the bloc broke down in 2013 over issues including tariff reductions and patent protection. Merchandise trade hit an all-time high of US$116 billion in 2021-2022, with India’s exports to the 27-member EU hitting US$65 billion, according to New Delhi. “Both sides are aiming for the trade negotiations to be broad-based, balanced and comprehensive, based on the principles of fairness and reciprocity. India is also in trade negotiations with Canada, Israel and the UK.

BIS urges central banks to act quicklyHIGH COSTS: Central banks should act before inflation becomes entrenched, the BIS head said, adding that it would be better if a soft landing could be achievedAFP, ZURICH, SwitzerlandCentral banks must not let inflation become entrenched, with the threat of stagflation looming over the global economy, the Bank for International Settlements (BIS) said on Sunday in its annual economic report. The BIS, considered the central bank of central banks, said institutions would have to move swiftly to ensure a return to low and stable inflation, while limiting the impact on growth. “The key for central banks is to act quickly and decisively before inflation becomes entrenched,” BIS general manager Agustin Carstens said. BIS’s flagship report said that in restoring low, stable inflation, central banks should seek to minimize the hit to economic activity, in turn safeguarding financial stability. The most pressing challenge for central banks is to bring inflation down to low levels, the BIS said.

Hon Hai to help develop new Indonesian capitalGREEN CITY: The company is set to invest US$8 billion to make electric vehicles and batteries for a new city that would rely entirely on renewable energy sourcesBloombergIndonesia said that Hon Hai Precision Industry Co (鴻海精密) is considering investing in the country’s new capital city, a move that would bolster the US$34 billion construction project. Hon Hai chairman Young Liu (劉揚偉) met with Indonesian President Joko Widodo on Saturday to discuss the company’s plan to invest US$8 billion to build a manufacturing plant with electric scooter start-up Gogoro Inc (睿能創意). Indonesian President Joko Widodo, left, on Dec. 17, 2019, visits North Penajam Paser district on the island of Borneo, where the government plans to build a new capital city. Liu and Widodo also talked about batteries and renewable energy, and exchanged ideas about the electric mobility industry, it said. Indonesia is seeking to capitalize on its large reserves of nickel, a key component in batteries, to develop an EV industry.

Ukraine war robs India’s ‘Diamond City’ of its shineAFP, SURAT, IndiaYogesh Zanzamera lays out his bed on the floor of the factory where he works and lives, one of about 2 million Indians polishing diamonds in an industry being hit hard by the war in Ukraine. Yet he is one of the lucky ones — the local trade union estimated that between 30,000 and 50,000 diamond workers in Surat have lost their jobs. Originally founded as a port city at the mouth of the Tapi River, Surat earned a reputation as the “Diamond City of India” in the 1960s and 1970s. “If it doesn’t go through Surat, a diamond is not a diamond,” Chirag Gems chief executive officer Chirag Patel said. The Gujarat Diamond Workers’ Union has asked Gujarat’s chief minister for a 10 billion rupee relief package for workers who have lost their jobs.

Taiwan is almost entirely dependent on imports for its oil supply, the ministry said, adding that the import volume was stable from 2012 to 2019, at above 300 million barrels a year, while the import value fluctuated with changes in international oil prices. Oil imports this year have extended momentum from last year, as the war in Ukraine drove oil prices to more than US$100 per barrel, it said. The nation imported 121.86 million barrels of oil in the first five months, up 10.9 percent from a year earlier, at average prices of US$97.80 per barrel, the ministry said. Most of the nation’s oil imports came from the Middle East, with Saudi Arabia accounting for 34.5 percent and Kuwait contributing 20.1 percent in the first five months, while those from the US comprised 21.1 percent of the total during the first five months thanks to an increase in shale oil imports, it said. Taiwan’s exports of refined petroleum products also have a high correlation with oil prices, the ministry said.

Asian shares gain as investors shrug off downbeat data on economic growthAP, BANGKOKShares rose in Asia on Friday, despite data suggesting economies are slowing. The advance tracked gains on Wall Street, where the market later posted its first weekly gain after three weeks of punishing losses. The MSCI Asia Pacific Index rose 1.19 percent to 159.21, gaining 1.5 percent for the week. In Australia, the S&P/ASX 200 on Friday rose 0.8 percent to 6,577.40, bringing its weekly gain to 1.6 percent. Market players are looking ahead to US inflation data due next week.

WTI posts weekly loss as recession jitters dent pricesBloombergOil posted its first back-to-back weekly loss since early April as fears of a demand-sapping global recession and tighter US monetary policy ripped through commodity markets to spur a broad sell-off. West Texas Intermediate (WTI) for July delivery fell 1.7 percent for the week to settle at US$107.62 a barrel. Brent crude for August delivery rose 2.5 percent weekly to settle at US$112.12 a barrel. US Federal Reserve Chair Jerome Powell’s hawkish testimony to the US Congress earlier in the week overshadowed a fundamentally tight market. Despite declining headline prices, the market remains in backwardation, a bullish pattern in which near-term prices trade above longer-dated ones, has grown in recent days.

South Asia ties need to be nurturedBy Sumit KumarPresident Tsai Ing-wen (蔡英文) has focused on improving relations with South Asian countries under the New Southbound Policy. However, Taiwan’s relations with South Asian countries remain weak. Trade barriers imposed by South Asian countries are another obstacle preventing ties with Taiwan, particularly in the field of economics. These challenges notwithstanding, there is no denying that improving bilateral ties would be beneficial for Taiwan and South Asian countries. In addition to encouraging South Asian students to pursue higher education in the nation, Taiwanese universities could also establish satellite schools in South Asia.

CDC issues warning after first Japanese encephalitis caseBy Lin Hui-chin and Jake Chung / Staff reporter, with staff writerThe Centers for Disease Control (CDC) has issued a warning after Taiwan on Monday reported this year’s first case of Japanese encephalitis. The case is a man in his 50s from Tainan’s Beimen District (北門), the CDC said. Japanese encephalitis season is from May to October, with case numbers usually peaking in June and July, the agency said. Those mosquito species breed in rice paddies, ponds and irrigation channels, and mostly bite in the evening, the CDC said. Those living near mosquito breeding grounds should bolster mosquito prevention measures and get vaccinated against the disease, it added.

Retail sales in UK fall as high living costs hit spendingBloombergUK retail sales fell last month as soaring food prices and the wider cost of living crisis forced consumer to cut back on spending. Photo: ReutersThe drop — the third in the past four months — was driven by a 1.6 percent fall in food sales, particularly at large supermarkets, which the ONS linked to soaring prices. Data earlier this week showed overall inflation hit a four-decade high of 9.1 percent last month. With wages failing to keep pace with rising prices, consumer finances are being squeezed and leading to a more gloomy outlook than during the depths of the COVID-19 pandemic. RETAIL DRAGSales at supermarkets fell 1.5 percent last month, while sales of tobacco, alcohol and other drinks dropped 4 percent, the ONS said.

Land deals by value decline 27% in first halfBy Crystal Hsu / Staff reporterLand transactions by listed firms totaled NT$49.1 billion (US$1.65 billion) in the first half of this year, falling 27 percent from a year earlier, as companies turned cautious about investing in land, Sinyi Global Realty Co (信義全球) said yesterday. Soaring land and labor prices have prompted property developers to slow the pace of acquiring land, Sinyi Global said, adding that land financing restrictions and interest rate hikes also weighed on purchases. About 90 percent of the land deals fell outside Greater Taipei, where large and idle land is hard to find, especially in popular locations, it said. Sinyi Global said it expects the cautious sentiment to persist next quarter, as developers would hesitate to add to their land inventory unless they are confident about sales. Property funds are likely to continue to flow to central and southern Taiwan, where the cost of land is more affordable, it said.