Daily Buzz: 28 April
Top News
Trump questions Putin sincerity
US President Donald Trump questioned Russia's sincerity in wanting to end the war in Ukraine. His apparent skepticism came in an online post after he held a surprise 15-minute, face-to-face meeting this weekend in Rome with Ukrainian President Volodymyr Zelenskyy just before the funeral of Pope Francis. Trump cited continuing Russian missile attacks on civilian areas of Ukraine and said Russian President Vladimir Putin may be just stringing him along in voicing his desire to end hostilities.
US Secretary of State Marco Rubio on Sunday reiterated his warning that the Trump administration might walk away from its role as peace broker if a deal is not reached soon.
China eases tax rebate
Travelers to China are now eligible for a refund of value-added tax on goods purchased in the country if they spend 200 yuan (about $28) or more. The government announced on Sunday that it is lowering the threshold from 500 yuan. At the same time, the upper limit on cash rebates was doubled to 20,000 yuan. Authorities also will broaden the range of refundable goods and expand the number of shops in tourist areas that can offer the rebates at the point of sale. The actions are part of a larger government effort to increase domestic spending.
Explosion at Irani port
An explosion and fire at Iran's largest commercial port near the city of Bandar Abbas killed 40 and injured more than 1,200 people, state media said in an update on Sunday. The effect of the blast was felt up to 50 kilometers away. Iranian customs officials later released a statement saying the explosion probably resulted when fire broke out at a depot storing hazardous chemicals, Iranian state TV reported.
Top Business
Industrial profits rebound
Signaling improved business conditions, China's industrial profits in the first quarter rose 0.8 percent from a year earlier, boosted by a 2.6 percent gain in March after two months of declines. Equipment manufacturing and technology sectors led the recovery, helped by a series of government support policies. Amid the ongoing US trade war, the Chinese government is expected to introduce further measures to soften the impact of tariffs on the world's second-largest economy.
In other first-quarter data released on Sunday, air passengers trips in China rose 4.9 percent from a year earlier to 190 million, with air and mail cargo rising almost 12 percent.
European rate cut advice
The European Central Bank should limit interest rate cuts to just one more this year, Alfred Kammer, director of the European department at the International Monetary Fund, told CNBC over the weekend. He said the bank's 2 percent inflation target will be sustainably achieved in the second half of the year with just a final quarter percentage-point cut this summer, barring "major shocks." The European Central Bank has already reduced rates seven times since June 2024, lowering the key deposit rate to 2.25 percent.
Economy
Car imports slump
China's auto imports in the first quarter fell 39 percent from a year earlier to 95,000, underscoring a shift in domestic market dynamics. According to the China Passenger Car Association, imports of US vehicles plummeted 66 percent, with cars from Japan and Germany models dominating inbound shipments.
The drop contrasts sharply with domestic car production and sales, which rose over 12 percent during the same period. The decline in imports highlights the growing competitiveness of China's domestic automakers, particularly in new energy vehicles.
Asia-Pacific investment in AI
The Asia-Pacific region, including China and Japan, is witnessing a surge of investment in artificial intelligence and generative AI, according to a new report by International Data Corporation. The research firm forecasts that combined spending on AI hardware software, and services in the region will reach US$175 billion by 2028, representing a compound annual growth rate of 33.6 percent from 2023.
Corporate
TikTok to enter Japan
TikTok will enter the online shopping market in Japan in the next few months, according to the Nikkei financial newspaper. The popular short-video platform, where live-streamers sell products, has already expanded in Europe and Southeast Asia, as its future in the US remains in limbo.
Superstore earnings drop
Yonghui Superstores, a major supermarket chain in China, announced a decline in both sales and net profit. The supermarket chain, based in Fuzhou, reported first-quarter revenue fell 19 percent from a year earlier to 17.5 billion yuan (US$2.4 billion), while net income plunged 80 percent to 147.6 million yuan. Yonghui's Shanghai-listed shares have dropped about 14 percent this year.
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