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Tag: Rate

  • Gold Prices Plunge to 6-Week Low Amid Rising Oil Prices and Anticipated Federal Rate Hikes

    Gold Prices Plunge to 6-Week Low Amid Rising Oil Prices and Anticipated Federal Rate Hikes

    Gold prices in Vietnam experienced a notable decline on Thursday, marking their lowest level since the 11th of June. The downturn continued from the morning into the afternoon session, reflecting a trending decrease in gold prices throughout the year.

    Trends in Gold Prices

    The Saigon Jewelry Company reported a drop of 1.41% in the price of their gold bars, bringing the price to VND140 million, or US$5,321.37, per tael. This decrease marks a total decline of 4.11% since Wednesday’s close. Additionally, the cost of a gold ring plummeted by 1.85%, settling at VND143.3 million per tael. Overall, gold prices in Vietnam have fallen by 8.4% this year.

    Internationally, the value of gold also fell on Thursday, drifting down from a two-week peak reached earlier. This worldwide decrease was caused by various factors, including a growing conflict in the Middle East, which has led to a surge in oil prices. Traders are also awaiting the outcomes of the Federal Reserve policy meeting next week for indications regarding the possible timing of interest rate hikes.

    Spot gold fell by 0.6%, bringing the price to $4,103.39 per ounce. This shift comes after spot gold reached its highest value since July 7th at $4,165.87 on Wednesday. Concurrently, August delivery for U.S. gold futures dropped by 1.1% to $4,106.40.

    Market Influences and Future Predictions

    These changes in the gold market can be attributed to various causes, as explained by Jigar Trivedi, a senior research analyst at IndusInd Securities. According to him, “Rising oil prices have contributed to escalating inflation and the anticipation of Fed rate hikes. Consequently, these factors have limited the positive momentum in the gold market as the dollar weakens.”

    Questions & Answers

    What factors are causing the drop in gold prices?
    A combination of escalating inflation, expected Fed rate hikes, and a weakening dollar have influenced the gold market negatively, resulting in a price drop.

    What is the current trend in Vietnam’s gold market?
    The gold market in Vietnam has been experiencing a downward trend, with an 8.4% decrease in prices so far this year.

    How has the conflict in the Middle East affected global gold prices?
    The escalating conflict in the Middle East has driven up oil prices. As a result, inflation has increased and gold prices have fallen globally.

  • Dollar Scales Two-Month High Against Dong amid Federal Reserve Rate Hike Speculations

    Dollar Scales Two-Month High Against Dong amid Federal Reserve Rate Hike Speculations

    On Tuesday morning, the U.S. dollar witnessed a slight increase in value against the Vietnamese dong, maintaining a position close to its two-month peak in comparison to other major currencies. The commercial bank Vietcombank recorded a 0.004% rise in the U.S. currency, selling it at VND26,408. Conversely, the black market saw a 0.04% decrease, with the dollar going for VND26,360.

    Global Performance of the U.S. Dollar

    In the international currency market, the U.S. dollar remained strong and close to a two-month high on Tuesday. The stability of the dollar can be attributed to the uncertainty in the Middle East which has led to a reduced risk appetite among traders. Furthermore, speculations about a potential rate hike by the Federal Reserve later in the year have also played a role.

    Among other major currencies, the euro was valued at $1.1528 while the sterling was valued at $1.3335. Both currencies had experienced a decline of approximately 0.05% in the Asian market after reaching their lowest value in two months during the previous trading session.

    The risk-sensitive currencies such as the Australian dollar and the New Zealand dollar were not spared. The Australian dollar depreciated by 0.1% to $0.7039, while the New Zealand dollar was traded at $0.5804.

    The Japanese yen was also affected, weakening to as much as 160.295. It continued to hover around the 160 level, a mark recognized as the threshold for possible official intervention.

    Performance of the Dollar Index

    The dollar index, reflecting the performance of the U.S. dollar against a basket of currencies such as the yen and the euro, remained nearly unchanged. The index was recorded at 100.03, extremely close to its two-month high of 100.21 from the previous day.

    Questions & Answers

    What was the value of the U.S. dollar against the Vietnamese dong on Tuesday morning?
    The U.S. dollar was valued slightly higher against the Vietnamese dong, selling at VND26,408 in Vietcombank.

    Why has the U.S. dollar held near a two-month high globally?
    The strength of the U.S. dollar can be attributed to the prevailing uncertainty in the Middle East, reducing risk appetite among traders. Additionally, speculations of a Federal Reserve rate hike later in the year have contributed to the dollar’s high standing.

    How did other major currencies perform against the U.S. dollar?
    The euro and sterling both experienced a decline of around 0.05%. The Australian dollar depreciated by 0.1% while the New Zealand dollar traded at $0.5804. The Japanese yen also weakened, hovering around the 160 level.

  • Vietnam Fuel Prices Plunge Amid Global Rate Fall: Transition to Green Energy in Focus

    Vietnam Fuel Prices Plunge Amid Global Rate Fall: Transition to Green Energy in Focus

    In response to decreasing global rates, Vietnam has adjusted its fuel prices downwards as of Thursday afternoon. RON95 gasoline, the country’s most commonly used fuel, decreased by 5.4%, taking it from its price last week to VND24,150 (US$0.54) per liter. Other fuels have also seen a reduction in their prices: Biofuel E5 RON92 has dropped 4.5% to VND23,250, while Diesel has witnessed a 3.9% decline to VND27,650.

    Global Fuel Market Influences

    The global fuel market has experienced substantial changes recently due to a variety of factors. These include the ongoing negotiations between the U.S. and Iran and the increased U.S. inflation, which is driven by significant fluctuations in energy prices. This information is based on reports from the Ministry of Industry and Trade and the Ministry of Finance. For instance, RON95 gasoline saw a decrease of 9.2%, bringing it to $127 per barrel, diesel dropped 5.5% to $146.70, and mazut decreased by 9.2%, making it US$655.20 per ton.

    New Fuel Sales and Implementation

    Starting June 1, E10 RON95 gasoline will be available for sale on a larger scale, replacing the mineral-based RON 95. E5 RON92 gasoline will remain available until the end of 2030. The Deputy Minister of Industry and Trade, Nguyen Sinh Nhat Tan, stated that the decision to sell mineral-based gasoline and biofuel simultaneously over the past few years was intended to assist the market in adjusting gradually and to support businesses in enhancing their distribution infrastructure.

    However, Tan also mentioned that based on international experience, maintaining a large variety of fuel types over an extended period could lead to higher logistics, storage, and distribution costs, difficulties for retailers, and a reduction in the effectiveness of transitioning to green energy. He reassured that the switch to E10 gasoline has been well assessed by regulators and does not impose restrictions or limit consumers’ choices. According to compatibility assessments, most cars and motorcycles in Vietnam can use E10 gasoline, as per manufacturers’ recommendations.

    Questions & Answers

    What are the new prices of various fuels in Vietnam?
    The price of RON95 gasoline has dropped 5.4% to VND24,150 per liter, Biofuel E5 RON92 has fallen 4.5% to VND23,250, while Diesel has declined 3.9% to VND27,650.

    What will replace mineral-based RON 95, and when will this happen?
    E10 RON95 gasoline will replace mineral-based RON 95 starting June 1. E5 RON92 gasoline will continue to be sold until the end of 2030.

    What potential problems could arise from maintaining a variety of fuel types for a long period?
    According to Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan, maintaining a variety of fuel types for an extended period could lead to issues such as increased logistics, storage, and distribution costs, difficulties for retailers, and reduced effectiveness in transitioning to green energy.

  • Vietnams Gold Market Faces Steep Dive amid Global Bullion Rate Decline

    Vietnams Gold Market Faces Steep Dive amid Global Bullion Rate Decline

    Wednesday saw a dip in gold prices in Vietnam, tracking a global decline in bullion rates. Saigon Jewelry Company, a notable player in the market, reported a 0.92% decrease in gold bar prices, which dropped to VND162 million (US$6,144.5) per tael.

    Fluctuations Across Markets

    Simultaneously, the price of gold rings also experienced a dip, declining by 1.1% to VND161.5 million per tael. To put things into perspective, a tael is equivalent to 37.5 grams or around 1.2 ounces.

    On the global stage, gold prices edged lower on Wednesday. This downturn was propelled by factors such as rising Treasury yields and a strengthening dollar, which outweighed the optimism stirred by the prospect of a peace agreement between the U.S. and Iran.

    Spot gold saw a 0.3% decrease to $4,467.59 per ounce, hitting its lowest level since March 30 in the previous trading session. Concurrently, U.S. gold futures for June delivery registered a loss of 0.9%, dropping to $4,471.10.

    Contributing Factors

    Certain economic factors also influenced these price fluctuations. The ongoing conflict with Iran has escalated price pressures, triggering a sell-off in global bond markets. This has pushed the 30-year U.S. Treasury yields to levels unseen since the precursor period to the 2007 global financial crisis.

    In tandem with these events, the dollar maintained its position at a six-week high. This, in turn, made bullion priced in the greenback more costly for those holding other currencies.

    According to Tim Waterer, Chief Market Analyst at KCM Trade, the current backdrop of rising yields and a rejuvenated dollar, driven by a hawkish shift in rates outlook, is potentially reducing the appeal of gold as an investment.

    Questions & Answers

    What is the significance of the price of a tael in relation to gold prices?
    The price of a tael, equivalent to 37.5 grams or 1.2 ounces, is an important measure for gold prices, particularly in markets like Vietnam.

    How did the global economic climate affect gold prices?
    Rising Treasury yields and a strong dollar, coupled with the potential peace agreement between the U.S. and Iran, have led to a decrease in global gold prices.

    What factors are currently affecting the appeal of gold as an investment?
    Increasing yields and a revitalized dollar, prompted by a hawkish shift in rates outlook, are reducing the attractiveness of gold as an investment.

  • A2 Milk Shares Suffer as China’s Plummeting Birth Rate Impacts Infant Formula Sales

    A2 Milk Shares Suffer as China’s Plummeting Birth Rate Impacts Infant Formula Sales

    New Zealand-based A2 Milk Company has reported a drop in its share price due to the decline in Chinese birth rates, which has reached a record low.

    On the Australian Securities Exchange (ASX), A2 shares plunged by 11.2 percent upon closing on Monday, January 19, shortly after the distressing news was announced in China. In response to a price query on the ASX, the company stated that it wasn’t privy to any information related to its current situation that hasn’t been disclosed to the market. This information, if known by certain market participants, might potentially explain the recent trading dynamics of its securities.

    A2’s Trading Performance Explanation

    When asked to provide an additional reason for its recent trading performance, A2 pointed to an announcement made by the China National Bureau of Statistics on January 19. The announcement revealed that the number of newborns in China last year had decreased by 17 percent to 7.92 million.

    The infant milk formula, one of A2’s greatest sources of income, is exported to China. In the fiscal year 2025, it recorded a revenue of NZ$1.2 billion (A$1.04 billion) from infant formula sales in China and Asia.

    Questions & Answers

    What caused the drop in A2 Milk Company’s share price?
    The decline in Chinese birth rates, which have reached a record low, was reported as the cause for the fall in A2’s share price.

    What was the percentage decrease in A2’s share price?
    A2’s share price dropped by 11.2 percent on the Australian Securities Exchange.

    What is one of A2’s largest sources of income?
    One of A2’s largest revenue streams is its infant milk formula, which is exported to China.

  • US Fed Makes Historic Third Consecutive Rate Cut, Slashes Interest Rates by 0.25%

    US Fed Makes Historic Third Consecutive Rate Cut, Slashes Interest Rates by 0.25%

    The US Federal Reserve has announced a reduction in interest rates by 0.25 percentage points, marking the third consecutive cut this year. However, further reductions in the near future seem unlikely.

    Federal Reserve’s Position

    According to Jerome Powell, the Chair of the Federal Reserve, the central bank is poised to observe the economic evolution before taking any further action. The statement also reiterated language previously used in late 2024, indicating a pause in any additional rate cuts. Powell emphasized that the bank is well-equipped to determine the “extent and timing of additional adjustments” based on incoming data, the evolving outlook, and balance of risks.

    Impact of Reduction

    The latest reduction of a quarter percentage point sets the rates to a range between 3.50-3.75%, the lowest in around three years, aligning with market expectations. The Federal Reserve has also projected one more rate cut for the next year, while acknowledging increased employment risks.

    Internal Rifts

    The recent decision has led to deeper divisions within the central bank, with three officials voting against the reduction. Austan Goolsbee, president of the Chicago Federal Reserve, and Jeffrey Schmid, president of the Kansas City Federal Reserve, both advocated for maintaining unchanged rates. Fed Governor Stephen Miran continued to support a larger half-percentage-point cut.

    Balancing Act

    Acknowledging some level of disagreement, Powell highlighted the challenge of balancing concerns of inflation risks and a potentially weakening jobs market. He stated that the Federal Reserve currently operates at the higher end of the “neutral” rates range, a level that neither stimulates nor restricts economic activity. This “neutral” designation could imply less urgency to lower rates quickly.

    Future Outlook

    Powell emphasized the need for several years of wages surpassing inflation for economic stability and improved affordability for the public. The Federal Reserve also raised its 2026 growth forecast, while moderating inflation expectations and maintaining unemployment rate projections. However, these forecasts could be altered as the bank navigates the delay in federal economic data releases due to the prolonged government shutdown.

    Challenges Ahead

    As the Federal Reserve heads into 2026, it faces a period of significant change. A new chief is set to take over after Powell’s term ends in May, amidst mounting political pressures. In particular, President Trump has expressed his desire for more aggressive rate cuts. Trump’s chief economic adviser, Kevin Hassett, is considered a strong contender for the role. Furthermore, the impending expiry of Miran’s term in January will create a vacancy within the Federal Reserve’s top leadership.

    Questions & Answers

    What was the extent of the recent rate cut by the US Federal Reserve?
    The US Federal Reserve cut interest rates by 0.25 percentage points.

    What challenges did the Federal Reserve face in making this decision?
    The decision led to a rift within the central bank, with three officials voting against the reduction, reflecting differing views on the balance between inflation risks and the softening job market.

    What changes are expected within the Federal Reserve in 2026?
    Significant changes are expected in 2026, including the appointment of a new chief following the end of Powell’s term in May. Additionally, the expiry of Fed Governor Stephen Miran’s term in January will result in a vacancy within the top leadership.

  • Vietnamese Dong Gains Edge as U.S. Dollar Dips Near Five-Week Low: Fed Rate Cut in Sight?

    Vietnamese Dong Gains Edge as U.S. Dollar Dips Near Five-Week Low: Fed Rate Cut in Sight?

    On a recent Friday morning, the U.S. dollar experienced a minor depreciation against the Vietnamese dong, continuing its trend near a five-week low against major global currencies. Vietcombank, one of Vietnam’s most significant financial institutions, recorded the greenback’s trading value at VND26,408, marking a marginal decline of 0.004% from the previous day’s closing. Concurrently, the black market saw the U.S. dollar’s value slide by 0.05% to approximately VND27,402.

    The Exchange Rate Scenario

    Reflecting global trends, the State Bank of Vietnam adjusted its reference rate down by 0.004% to VND25,151. Globally, the U.S. dollar has been trading near a five-week low against its principal counterparts, contributing to expectations of a rate cut by the Federal Reserve in the following week.

    The dollar index, which gauges the U.S. currency against a basket of six significant rivals, remained static at 99.065 in the early Asian market hours. Earlier, it had dropped to a five-week low of 98.765, maintaining its trajectory for a 0.4% drop over the week.

    Performance Against Other Currencies

    Against the yen and the euro, the dollar’s performance was relatively unchanged at 155.18 yen and $1.1647 respectively. The British pound remained robust at $1.3326, despite retreating from a six-week high in the prior trading session.

    The Australian dollar stayed consistent at $0.6609, following its surge to a two-month peak of $0.6624 the previous day. The Canadian dollar, or loonie, mirrored this stability, registering little change at C$1.3961 per U.S. dollar. Meanwhile, the Swiss franc remained steady at 0.8035 per dollar, despite recoiling sharply from Wednesday’s high of 0.7992 in the overnight session.

    Future Expectations

    The U.S. dollar has faced additional devaluation pressure in recent times due to speculation regarding changes in the Federal Reserve’s leadership. Market participants are contemplating the implications of Kevin Hassett, the White House economic adviser, potentially succeeding Jerome Powell as the Federal Reserve Chair following the conclusion of Powell’s term in May. Hassett’s anticipated advocacy for further rate cuts is contributing to these market dynamics.

    Questions & Answers

    Why is the U.S. dollar weakening against the Vietnamese dong?
    The dollar’s depreciation can be attributed to global financial trends and expectations of a forthcoming rate cut by the Federal Reserve.

    What impact does the Federal Reserve chair’s potential succession have on the dollar?
    The potential appointment of Kevin Hassett, known for advocating further rate cuts, as the Federal Reserve chair has escalated speculation and heightened pressure on the U.S. dollar.

    How did other major currencies perform against the dollar?
    The dollar’s performance was relatively stable against the yen, euro, pound, Australian dollar, Canadian dollar, and Swiss franc.

  • U.S. Dollar Gains Traction Against Vietnamese Dong Amidst Federal Reserve’s Rate Cut Speculations

    U.S. Dollar Gains Traction Against Vietnamese Dong Amidst Federal Reserve’s Rate Cut Speculations

    The US dollar exhibited a slight rise against the Vietnamese dong on Tuesday morning, with Vietcombank increasing its dollar sales by 0.0075% to VND26,403. In contrast, the black market exchange rate recorded a 0.07% dip to VND27,850.

    Worldwide Currency Outlook

    Globally, the US dollar maintained a stable position on Tuesday as investors weighed the possibility of the Federal Reserve reducing interest rates in the upcoming month. This speculation is fueled by recent dovish remarks from policymakers and the weak yen’s potential for intervention.

    Chris Weston, head of research at Pepperstone, commented on the situation. “There is an increased scrutiny on each Federal Reserve voter’s stance and their views on a potential rate cut in December. This makes sense because the market, as well as the Federal Reserve, has not received the kind of data that would typically influence their policy decision. Perhaps the biggest unknown is Fed Chair Jerome Powell’s viewpoint, but it’s reasonable to assume that he might favor a rate cut in December.”

    Rate Cut Speculations Impact on the Dollar

    These sudden speculations regarding a rate cut have had a minor impact on the dollar. The European euro recently traded at $1.1522, marking a slight gain, while the British pound was at $1.3103. The dollar index, which measures the US currency against its major rivals, stood at 100.2 in the early trading hours.

    Questions & Answers

    What was the impact of the rate cut speculation on the US dollar?
    The rate cut speculation has slightly weighed down the US dollar.

    What did Chris Weston, head of research at Pepperstone, say about the potential rate cut?
    Weston indicated that the market and the Federal Reserve haven’t received the necessary data to influence policy decisions. However, he noted that it’s plausible Fed Chair Jerome Powell might favor a rate cut in December.

    What was the status of the dollar index in early trading?
    In early trading, the dollar index, which measures the US currency against its major rivals, was at 100.2.

  • Vietnam Gold Price Soars Amid Anticipated Federal Reserve Interest Rate Cut: An 89.9% Increase Since Start of Year

    Vietnam Gold Price Soars Amid Anticipated Federal Reserve Interest Rate Cut: An 89.9% Increase Since Start of Year

    On Tuesday morning, Vietnam saw a rise in the price of gold, in line with global rates which experienced an upward trend. This increase is attributed to market anticipation of a Federal Reserve interest rate cut.

    The Saigon Jewelry Company reported a 1.66% increase in the price of their gold bars, with the cost reaching VND152.9 million, equivalent to US$5,777.32 per tael. In addition, the price of their gold rings also experienced a rise of 1.68%, costing VND151 million per tael. To clarify, one tael is approximately 37.5 grams, or 1.2 ounces.

    Gold Price Surge

    There has been a marked increase in Vietnam’s gold price since the start of the year, with an overall surge of 89.9%.

    International spot gold also saw an increase, adding 0.27% to its value and reaching $4,144 per ounce. This rise is supported by growing hopes for a Federal Reserve interest rate cut in the coming month and the anticipation of fresh U.S. economic data offering further insights into monetary policy.

    Anticipation for Interest Rate Cut

    The head of commodity strategies at TD Securities, Bart Melek, stated, “The market is increasingly convinced that the U.S. Federal Reserve is set to cut interest rates in December.”

    Gold, a non-yielding asset, typically performs positively in situations where interest rates are low. This is particularly true during times of geopolitical and economic instability.

    Melek added, “We’re awaiting data, and the expectation is that it may display weakness. Inflation is likely not very high, and this all suggests that gold will perform well.”

    Questions & Answers

    Why has there been a surge in gold prices in Vietnam?
    The uptick in gold prices in Vietnam can be attributed to the anticipation of a Federal Reserve interest rate cut, along with global gold prices demonstrating a similar upward trend.

    How does the potential cut in interest rates affect gold prices?
    Gold, being a non-yielding asset, tends to perform well in low-interest-rate environments. The anticipation of a cut in interest rates therefore often leads to an increase in gold prices as investors seek stable investments.

    What does the future hold for gold prices?
    While it’s challenging to predict with certainty, current market expectations are that gold will continue to perform well, particularly if inflation remains low and economic data indicates weakness.

  • Vietnam’s Gold Prices Skyrocket to 3-Week High Amid Global Rate Surge and U.S. Government Resumption

    Vietnam’s Gold Prices Skyrocket to 3-Week High Amid Global Rate Surge and U.S. Government Resumption

    The price of gold in Vietnam saw a significant increase on Tuesday, reaching its peak since October 21st. This uptick was reflective of a global surge in gold prices, spurred by the anticipation of the U.S. government’s resumption.

    Saigon Jewelry Company reported a 1.20% increase in their gold prices, now standing at VND152 million (US$5,777.28) per tael. A tael, a common unit of measurement used in East Asia, equates to 37.5 grams or 1.2 ounces.

    Rise in Gold Jewelry Prices

    In line with the increase in gold prices, the cost of gold rings also saw a rise of 1.35%, now costing VND149.8 million per tael. So far this year, the price of gold in Vietnam has surged by a substantial 80.5%.

    Global Gold Rates

    Internationally, gold prices have been on a steady upward trend, reaching near three-week highs on Tuesday. These gains are believed to be influenced by expectations of another U.S. Federal Reserve interest rate cut in December, as well as indications of an end to the U.S. government shutdown.

    The price of spot gold also increased by 0.7%, reaching $4,142.83 per ounce, its highest since October 24th.

    Impact of U.S. Government Shutdown

    The U.S. Senate recently passed a deal to restore U.S. federal funding, marking an end to the longest government shutdown in history. This shutdown led to delays in key economic indicators, such as the U.S. non-farm payrolls report.

    The end of the shutdown is expected to provide more clarity on the U.S. economic outlook as well as the Federal Reserve’s interest rate trajectory. It is believed that the resolution of the shutdown has lifted a level of uncertainty, allowing markets to refocus on major speculative narratives for the year.

    According to Ilya Spivak, head of global macro at Tastylive, the upside is still favored for the rest of the year. With the path of least resistance for gold trending back to October’s high, it is anticipated that prices may continue to rise thereafter.

    Questions & Answers

    What caused the recent surge in gold prices in Vietnam and globally?
    Anticipation of the resumption of the U.S. government and expectations of another U.S. Federal Reserve interest rate cut in December are believed to have spurred the recent surge in gold prices.

    How has the U.S. government shutdown impacted the gold market?
    The U.S. government shutdown led to delays in key economic indicators, creating a level of uncertainty in the market. With the resolution of the shutdown, this uncertainty has been lifted, allowing markets to refocus and consequently affecting gold prices.

    What is the outlook for gold prices for the rest of the year?
    According to experts, the upside is still favored for the rest of the year, with potential for prices to continue rising.

  • Revival on the Horizon: Metro Manila Retail Vacancy Rate Expected to Bounce Back to Pre-Pandemic Figures

    Revival on the Horizon: Metro Manila Retail Vacancy Rate Expected to Bounce Back to Pre-Pandemic Figures

    The retail vacancy rate in Metro Manila is projected to return to pre-pandemic levels by 2022, according to a recent study by Colliers Philippines. The rate of empty retail spaces in Metro Manila eased to 11.4% as of September 30, 2021. By the close of next year, forecasts indicate a reduction to 9.5%, almost matching the 9.3% recorded in the third quarter of 2019.

    Long-Term Forecasts

    The report also offers long-term projections, with a predicted rate of 8.2% by the end of 2027. This figure is notably lower than the pre-pandemic benchmarks, signaling a positive recovery trend for the retail sector in the region.

    The study attributes the anticipated improvement to two main factors. The first is the continuous entry of international retail brands into the Filipino market. The second is the rapid expansion of existing brands.

    The Role of Foreign Brands

    According to Joey Bondoc, Research Director at Colliers, foreign brands play a crucial role in this trend. He noted that many of these brands have previously exited the market but are now making a significant comeback.

    Bondoc further highlighted the attractive refurbishment strategies of major developers in the region, which are drawing in these companies. These refurbishments are focusing more on experiential retail, adding another layer of attraction for both brands and consumers.

    Industries Occupying Retail Spaces

    The report also shed light on the dominant industries in retail space occupancy. The food and beverage sector, fast fashion, and general retail were listed as the primary occupiers of retail spaces. Their continued presence and growth contribute to the overall decreasing trend of retail vacancies.

    Questions & Answers

    What is the anticipated retail vacancy rate in Metro Manila by the end of 2022?
    The retail vacancy rate is expected to decrease to 9.5% by the end of 2022.

    What factors are contributing to the decrease in retail vacancies?
    The entry of foreign retail brands into the Philippines market and the accelerated expansion of existing brands are primarily driving this improvement.

    Which industries are the biggest occupiers of retail space in Metro Manila?
    The food and beverage sector, fast fashion, and general retail industries are the main occupiers of retail spaces.

  • Vietnam to raise air ticket price cap

    Vietnam to raise air ticket price cap

    The Ministry of Transport will increase the domestic air ticket price ceiling in Vietnam by an average of 3.75% later this year, a decision to delight local carriers.

    The maximum airfare on four out of five flight distances will rise in the second or third quarter, according to a recent Ministry of Finance price report.

    The biggest increase will be 6.67% (to VND4 million or $170) for one-way tickets on flights of 1,280 kilometers (Hanoi to Phu Quoc Island) and longer.

    Flights between 1,000 and 1,280 kilometers will see their ticket cap price rise 6.25% to VND3.4 million.

    Flights of smaller distances will see their maximum price rise by between 2.27% and 3.58%.

    Flights under 500 kilometers will see no ceiling change. Their prices will remain at a maximum of VND1.7 million per one-way ticket.

    The cap price increase will likely increase Vietnam’s 2023 Consumer Price Index by 0.07% points.

    Earlier this year, Vietnam Airlines and Bamboo Airways proposed increasing the cap ticket price to take into account rising in costs.

    The airfare price cap was last increased in 2015.

    By November last year, fuel costs had surged more than 80% from September 2015, which raised airlines’ total expenses by 33.5%, according to the Civil Aviation Authority of Vietnam (CAAV).

    Bamboo Airways CEO Nguyen Manh Quan has argued that the price cap be applied only to air routes operated by a single carrier.

    For routes with two carriers or more, the cap should be removed so the “market can adjust by itself,” he said.

    Some analysts have said that the price cap is unreasonable and could slow the growth of domestic aviation.

    In 2021, the CAAV proposed that air routes with three carriers or more have no price cap to allow for more healthy competition in services.

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  • Deliveroo cuts Pickup commission rate

    Deliveroo cuts Pickup commission rate

    Food delivery service Deliveroo is reducing its Pickup service commissions to 5 percent for its operations in Hong Kong.

    The move is expected to provide relief to restaurants struggling to generate revenue during the coronavirus outbreak with tough social distancing regulations in place throughout the territory.

    The new rate will apply to all Deliveroo partnering restaurants through to the end of June who accepts orders through the Deliveroo platform from customers who opt to collect their food directly from the restaurant.

    “At Deliveroo we know that every customer can make a world of difference to our restaurant partners at this critical time, and so we have consistently rolled out new measures to continue our support,” said Deliveroo Hong Kong GM Brian Lo.

    “Pickup offers a faster option for customers to order their food through Deliveroo in times of high demand, and also allows for people to order for collection from restaurants that may not provide delivery services or order products that may not be suitable for delivery. The service also benefits restaurants by opening up an additional revenue stream as Pickup gives people the option of ordering food-on-the-go – enabling restaurants to reach a new wave of customers.”

    Some 60–70 percent of the 1500 restaurants joining Deliveroo since January have opted into Deliveroo’s Pickup service. Deliveroo has seen 300-per-cent growth in both restaurants offering Pickup services and Pickup’s order volume during the first quarter.

    “It’s no surprise that the most recent measures by the government to reduce in-house restaurant services by 50 percent have been felt across the city and to our operations,” said Deliveroo restaurant partner Ootoya’s GM Hiroyasu Kageyama.

    “However, we’ve been able to make up for lost in-house sales with more proactive marketing for delivery and pick-up. This is largely in thanks to Deliveroo’s compassionate efforts to help us adapt and reach new customers online – with them as our partner, we’ve been able to stay optimistic and find new ways to innovate.”

    Pickup services from Deliveroo officially launched earlier this month to give hungry Hongkongers the chance to skip the delivery fee, and conveniently pick up their meals without standing in line at their desired restaurants. Once customers have selected the Pickup option, they will be shown the precise collection time and be kept up to date through app notifications, enabling them to drop in and grab their food immediately.

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  • Michael Kors launches improved Sofie Heart Rate smartwatch

    Michael Kors launches improved Sofie Heart Rate smartwatch

    Michael Kors is expanding its smartwatch offering with an improved version of Sofie, a wearable device that was launched two years ago. The new model, weirdly named Sofie Heart Rate, packs a few new features that the original model lacked, but keeps a similar price.

    The Sofie Heart Rate is available in five colors – Pave Rose Gold, Rose Gold, Silver, Pave Two-Tone, and Gold, for as low as $325. Officially unveiled early this year, Michael Kors’ new smartwatch runs Wear OS and is fully compatible with iPhone and Android phones.

    Unlike the original model, the new Sofie Heart Rate features built-in GPS, NFC (Near Field Communication) payment technology, heart rate tracking, and swimproof technology (water resistant up to 30m). Also, it comes with an AMOLED display, 4GB internal storage, and a 300 mAh battery.

    Design-wise, the smartwatch is made of stainless steel and features interchangeable straps. According to Michael Kors, in addition to the three classic stainless steel platings and the two-tone glitz version models, the Sofie Heart Rate will also be offered in alligator-stamped silicone. Moreover, brown and plum stainless steel platings, along with grey silicone, will be made available this fall.

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  • Oil price drops as global economic concerns grip market

    Oil price drops as global economic concerns grip market

    Oil price fell about 2 percent on Thursday as the market was weighed down by concerns that global demand growth would lag in the coming year. A rebound from late December lows seemed to stall amid worries that a trade war between the U.S. and China would continue, weighing on demand. The market also contended with the possibility that oil producers would not adhere strictly to cuts agreed to last year.

    Brent crude futures fell $1.06 a barrel, or 1.7 percent, to settle at $61.63. U.S. crude futures fell $1.37 a barrel, or 2.5 percent, to settle at $52.64.

    “The correction is stalled, mainly on concerns about demand growth,” said Gene McGillian, director of Market Research at Tradition Energy in Stamford, Connecticut. “There seems to be uncertainty about what is going to happen with the trade talks, with global economic growth and demand in the coming year,” he said.

    In particular, he said, the market is worried about whether demand is sufficient to absorb growing crude production from the U.S.

    “Supply fundamentals have increasingly been turning supportive in recent weeks, but against this the market still worries about the yet-to-be-realised – if at all – impact on demand from weaker macroeconomic fundamentals,” said Ole Hansen, head of commodity strategy at Saxo Bank.

    Though the United States published robust jobs data last week, global markets remain nervous after China reported the lowest annual economic growth in nearly 30 years in January. That focuses yet more attention on the outcome of U.S.-China talks to end the trade war between the world’s top two economies.

    The oil price also came under pressure as weekly data published by the U.S. Energy Information Administration on Wednesday showed an unwelcome increase in stocks of crude oil.

    A decline in OPEC production and a squeeze on supply from Iran and Venezuela because of U.S. sanctions have led many analysts to forecast that the market will be balanced in 2019.

    The oil price is showing a 20 percent gain so far this year.

    Price support is provided by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) to tighten the market.

    Saudi Arabia, the world’s top oil exporter, told OPEC it had pumped 10.24 million barrels per day (bpd) in January, two OPEC sources said, a deeper cut than targeted in the supply pact. The kingdom pumped 10.643 million bpd in December.

    “We believe that financial markets may be overestimating the risks of a global recession,” said Jean-Pierre Durante, Head of Applied Research at Pictet Wealth Management.

    “Moreover, lower oil prices – prices were between 14 percent and 18 percent lower in January than their 2018 average – are likely to stimulate economic activity and oil demand, particularly in emerging markets.”

    U.S. sanctions against Venezuela’s oil industry are expected to freeze sales proceeds of Venezuelan crude exports to the United States.

     

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