Latest news with #geopoliticaltensions
CNA
3 days ago
- Business
- CNA
Multinational clients are rethinking global supply chains amid tariff turbulence: Citi
Shahmir Khaliq, Citibank's Global Head of Services, outlines how multinational clients are reassessing manufacturing locations, reconfiguring trade routes and adjusting strategies in response to escalating geopolitical tensions and economic volatility.
The Guardian
5 days ago
- Business
- The Guardian
Social services department warned Tanya Plibersek she faces uphill battle amid ‘political polarisation'
Tanya Plibersek has an uphill battle to justify and prioritise Australia's multibillion-dollar social services system, her department has warned, against a backdrop of 'rising geopolitical tensions and political polarisation'. The Department of Social Services, which is responsible for a quarter of federal government spending, delivered the warning to the new social services minister about the flow-on effects of global uncertainty in a brief dated 13 May and obtained by Guardian Australia under freedom of information laws. Uncertainty, prompted by current conflicts, their aftermath and escalations in trade hostilities could worsen income inequality and weaken resilience, the department warned in its incoming government briefing, sent after the May federal election. 'The frequency and intensity of economic and environmental shocks are pushing more people into more vulnerable situations, increasing the risk of entrenched disadvantage,' the brief said. 'This can compound with regional vulnerabilities due to extreme weather events, industry shutdown and existing economic inequality.' There were also concerns that intergenerational inequalities were growing, with the department warning more young Australians are relying 'on family for financial support and/or housing well into adulthood' and delaying milestones including education, employment, family and home ownership. While the brief noted there had been advances in women's and First Nations people's workforce participation and the gender pay gap, the department said including people with disability, social attitudes towards LGBTQ+ people, and valuing multiculturalism and the contribution of migrants were central policy concerns. The department acknowledged a stronger focus on security and managing economic risk could place pressures on the minister to 'justify and prioritise payments, programs and services'. 'This will require increased focus on policies that demonstrate value for money and lead to improvements in employment, social inclusion and overall wellbeing,' the advice said. 'Achieving this will require reforms to be disciplined and have a robust evidence base, taking advantage of opportunities to improve productivity and impact. It will also require unlocking existing opportunities in sectors experiencing employment growth such as the care and support economy.' A government spokesperson said it is 'absolutely devoted to delivering on our election commitments', including expanding paid parental leave to six months and cracking down on financial abuse in domestic violence. 'The government appreciates candour and frank and fearless advice from its departments and agencies,' the spokesperson said. The department is responsible for approximately $198bn, or 25%, of all commonwealth expenditure in 2025-26, which will increase to $206bn over the next four years. The majority of its spending, about $153bn, is on personal benefits. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion In a more detailed breakdown of the challenges Australia is facing, the department noted social cohesion was declining 'rapidly' after peaking during the Covid-19 pandemic, referencing studies by the Scanlon Institute. Loneliness in certain cohorts, such as young men aged between 15 and 24, could see them targeted by extremist groups, which can be linked to misogyny and violence against women, the briefing noted. Community concern about the inadequacy of income support payments was also addressed, with the brief acknowledging that increases to rent support payments since 2023 have failed to address housing stress for many recipients. The department stated that low- and middle-income taxpayers are 'subsidising the retirement incomes of seniors with significant wealth in addition to their homes' under social security reform. The age pension is provided to couples with incomes of almost $100,000 a year or assets of almost $1.05m, in addition to their principal home, which can be of unlimited value, the department noted. 'Age pensioners generally maintain or grow their assets in the last five years prior to their death. By contrast, a single job seeker without children who has more than $11,500 in liquid assets must wait 13 weeks before any income support becomes payable,' the department said.
Asharq Al-Awsat
6 days ago
- Business
- Asharq Al-Awsat
4 Factors Behind the Decline of Saudi Stock Market in H1 2025
Financial analysts and market specialists have identified four main factors driving the decline of the Saudi stock market during the first half of 2025. Speaking to Asharq Al-Awsat, they pointed to heightened geopolitical tensions in the region, ongoing trade disputes and tariffs between the United States, China, and Europe, oil price volatility, and persistently high interest rates. Collectively, these pressures have squeezed liquidity and weighed heavily on market performance. Despite the downturn, analysts expect the market to gradually recover over the second half of the year, supported by potential global interest rate cuts, stabilizing oil prices, easing economic uncertainty, and forecasts of robust growth in Saudi Arabia's GDP and the non-oil sector, alongside continued government spending on major projects. The Saudi stock market recorded notable losses in the first six months of 2025, with the benchmark index retreating 7.25%, shedding 872 points to close at 11,163, compared to 12,036 at the end of 2024. Market capitalization plunged by around $266 billion (SAR 1.07 trillion), bringing the total value of listed shares to SAR 9.1 trillion. Seventeen sectors posted declines during this period, led by utilities, which plummeted nearly 32%. The energy sector fell 13%, and basic materials dropped 8%. In contrast, telecom stocks advanced around 7%, while the banking sector eked out a marginal 0.05% gain. Dr. Suleiman Al-Humaid Al-Khalidi, a financial analyst and member of the Saudi Economic Association, described the first-half performance as marked by significant swings. 'The index rose to 12,500 points, only to lose nearly 2,000 points before recovering to about 11,260,' he said. He attributed the volatility to several factors: regional geopolitical strains, oil prices dipping to $56 a barrel, and high interest rates, which constrained liquidity. He noted that financing costs for traders now range between 7.5% and 9%, historically elevated levels. 'The Saudi market posted the steepest decline among regional exchanges despite record banking sector profits, which failed to translate into stronger overall index performance,' he observed. Looking ahead, Al-Khalidi anticipates three interest rate cuts totaling 0.75 percentage points by next year, which would bring rates down to about 3.75%. 'That should encourage a recovery in trading activity, improve liquidity, and support an upward trend in the index toward 12,000 points, potentially reaching 13,500 if momentum builds,' he added. Meanwhile, Mohamed Hamdy Omar, economic analyst and CEO of G-World, described the downturn as largely expected, citing external pressures and prolonged trade tensions between the US, China, and Europe. 'Retaliatory tariffs dampened investor confidence globally, and Saudi Arabia was no exception,' he said. Lower oil revenues also strained state finances, leading to a budget deficit of SAR 58.7 billion in the first quarter, further tightening liquidity. Trading volumes fell over 30% year-on-year. Omar pointed out that changes to land tax regulations and heightened regional security risks also weighed on sentiment. Nonetheless, he expects gradual improvement in the second half of 2025, driven by anticipated rate cuts, rebounding oil prices, and continued large-scale public investments. He stressed the need for vigilance: 'Saudi Arabia remains among the most stable markets, thanks to proactive regulation and policies designed to attract foreign capital and bolster investor confidence.'
South China Morning Post
13-07-2025
- Entertainment
- South China Morning Post
Filipino film on South China Sea tensions wins in New Zealand despite Chinese pressure
Filipino documentary spotlighting the daily struggles of fishermen, naval cooks and coastguard personnel in the contested South China Sea has earned international recognition, with its director telling This Week in Asia that the award was a validation of honest storytelling in the face of political pressure from Beijing to cancel its screening. Food Delivery: Fresh from the West Philippine Sea took home the Tides of Change prize at the Doc Edge Festival in Auckland, New Zealand, on July 3. Directed by Baby Ruth Villarama, the film chronicles the human dimension of Manila's maritime claims, offering what she described as a 'gentle yet powerful' way of reframing geopolitical tensions. Villarama is best known for her award-winning 2016 documentary Sunday Beauty Queen about Filipino domestic workers in Hong Kong, which earned Best Picture at the Metro Manila Film Festival. Her latest film's win in New Zealand comes after it was pulled from a Philippine event earlier this year for undisclosed reasons. Just days before its scheduled premiere at Manila's Puregold CinePanalo Festival in March, the festival organiser and film producer released a joint statement confirming the movie had been pulled. 'While the decision was made jointly … it is clear that external factors played a role in this outcome,' they said, without providing further details. Baby Ruth Villarama during the filming of 'Food Delivery'. Photo: Voyage Studios Villarama told This Week in Asia the experience was disheartening, but her team 'quietly submitted' the film to overseas festivals. Doc Edge was the first to respond. 'They saw it not as a threat, but as an urgent human story worth sharing with the world and the people of New Zealand,' she said.
South China Morning Post
12-07-2025
- Business
- South China Morning Post
Economy main focus at Hong Kong leader's meetings with advisers ahead of policy address
Hong Kong's leader held meetings with his advisers, including a mainland Chinese economist and two tech experts from a Hangzhou start-up known as 'Six Little Dragons', ahead of his annual policy blueprint to gauge views on how to maintain the city's status amid growing geopolitical tensions. The John Lee Ka-chiu-led lunch meetings took place between Wednesday and Friday, marking the first official gathering of the Chief Executive's Council of Advisers, following the appointments of Han Bicheng, CEO of BrainCo, which specialises in brain-machine interfaces, Wang Xingxing, founder and CEO of humanoid robot maker Unitree Robotics, and Zhu Min, ex-deputy director of the International Monetary Fund. The government said on Saturday that the council conducted in-depth discussions under three major themes – economy, technology, and regional and global ties – for Lee's fourth policy address scheduled for September and the city's overall development. Regarding the economic advancement and sustainability, the council exchanged views on how to consolidate Hong Kong's position as an international financial, shipping and trade centre amid geopolitical changes and economic restructuring. They also discussed ways to speed up the development of the Northern Metropolis, and proactively attract capital and talent to drive innovation and technology growth in Hong Kong. The Northern Metropolis blueprint aims to turn 30,000 hectares (74,132 acres) of land into a new engine for economic growth with a population of about 2.5 million and around 650,000 jobs. The regional and global collaboration discussion focused on leveraging the national development to strengthen ties with countries along the Belt and Road, while also exploring emerging markets, such as the Middle East, Asean, South America, and Central Asia, for new business opportunities.
