Unions at Air France-KLM voiced concern after the company appointed Benjamin Smith as the new CEO with the support of the French state.

The company said Thursday that Smith, who is 46 and was previously Air Canada’s chief operating officer, will fill the role by Sept. 30.

Vincent Salles, unionist at CGT-Air France union, said on France Info radio that unions fear Smith’s mission is to implement plans that would “deteriorate working conditions and wages.”

The previous CEO, Jean-Marc Janaillac, resigned in May after Air France employees held 13 days of strike over pay and rejected the company’s wage proposal, considered too low.

Finance Minister Bruno Le Maire welcomed an “opportunity” for Air France-KLM and expressed his confidence in Smith’s ability to “re-establish social dialogue.”
…

President Donald Trump says he’s asking federal regulators to look into the effectiveness of the quarterly financial reports that publicly traded companies are required to file.

In a tweet early Friday, Trump said that after speaking with “some of the world’s top business leaders,” he’s asked the U.S. Securities and Exchange Commission to determine whether shifting to a six-month reporting regimen would make more sense.

The SEC requires such companies to share profit, revenue and other figures publicly every three months.

Some believe executives are making decisions based on short-term thinking to satisfy the market at the expense of the long-term viability of their companies.

There are also tremendous expenses tied to preparing quarterly and annual reports.
…

President Donald Trump says he’s asking federal regulators to look into the effectiveness of the quarterly financial reports that publicly traded companies are required to file.

In a tweet early Friday, Trump said that after speaking with “some of the world’s top business leaders,” he’s asked the U.S. Securities and Exchange Commission to determine whether shifting to a six-month reporting regimen would make more sense.

The SEC requires such companies to share profit, revenue and other figures publicly every three months.

Some believe executives are making decisions based on short-term thinking to satisfy the market at the expense of the long-term viability of their companies.

There are also tremendous expenses tied to preparing quarterly and annual reports.
…

Many of Asia’s currencies are losing value against the U.S. dollar this year as China and the United States fight over trade, but analysts say policymakers are handling the dip better now than during past down cycles.

China, India, Indonesia and Myanmar, to name just a few, have seen their currencies lose value since the start of 2018. The Indian rupee hit an all-time low in June, and the Chinese yuan lost 3.2 percent over the year through June.

Economists point to a range of problems, including possible contagion from financial woes in Turkey and concerns about investing in Asia due to the Sino-U.S. trade war expected to hit China next week with tariffs on goods worth $16 billion.

“It’s just basically that everything we’ve worried about now and then sort of converged together,” said Song Seng Wun, an economist in the private banking unit of CIMB in Singapore.

But monetary authorities in Asia have learned from currency dips in 2013, 2015 and 2016, economists believe.

​Causes for decline

No single cause is pushing currency prices lower around Asia, analysts say. Rising oil prices have knocked back the rupee as Indians pay more to import it, media in the country say. Domestic media in Myanmar blame a surge in imports into the fast-growing Southeast Asian country, plus people’s hoarding of U.S. dollars.

In Vietnam, the brokerage Bao Viet Securities blames a 1.3 percent dip in the dong currency due to pressure from similar slips elsewhere in Asia, including the Chinese yuan’s devaluation and a 7 percent fall in the Indonesian rupiah as of June.

A particularly severe fall in Turkey’s lira along with inflation and loan defaults — all threatening to drag down other economies — is weighing on Asian currency rates, Song said.

Economists and media in the countries affected usually point to spillover from the Sino-U.S. import-export war as a chief cause. That dispute began unfolding in early 2018 as U.S. President Donald Trump said Beijing was trading unfairly.

In India, the trade war has dissuaded investors from taking positions in domestic assets, media reports there say. And in Vietnam, China’s devaluing of the yuan in June, possibly because of U.S. trade tension, cramps Vietnamese exports. A lower yuan helps Chinese exporters earn more on goods shipped to the United States.

“I think there’s a number of reasons why it could be going down,” said Maxfield Brown, speaking to the currency in Vietnam where he’s senior associate with the business consultancy Dezan Shira & Associates.

“I think [Vietnamese officials] are watching what’s going on between China and the United States, and it is a fact that the Chinese government has devalued its currency and that impacts the ability of Vietnam to export products. I think everyone’s watching the situation.”

​Coping strategies

Asian monetary authorities have gotten a grip on this year’s devaluations compared to what happened in 2013 as capital left Asia due to the tapering of economic stimulus in the United States, said Marie Diron, managing director with Moody’s Investors Service in Singapore.

Economic stimulus after the global financial crisis had inspired investors to buy assets in Asia where they grew relatively fast, tracking the region’s economic strength.

To shore up the rupiah, Indonesia’s monetary authority has raised interest rates four times in three months. Monetary authorities in India and the Philippines have raised rates this year, as well. Rate hikes generally raise the value of currencies compared to countries that keep rates down.

Asian countries are keeping more foreign currency in reserve and better controlling any budget deficits, as well, Diron said.

“Central banks have built up their foreign exchange reserve buffer, so they do have more ammunition, if you want, to at least smooth some of the currency volatility,” she said.

In Vietnam, mismanagement of currency in the past has taught leaders how to react, and they’re aiming for a “measured response” now, Brown said.

China is likely to nudge its currency back up along with budgetary stimulus for the economy, easing worries in other markets, the French investment bank Natixis said in a research note Friday.

Asian currency drops are unlikely to reach crisis levels, economists say. They’re not weak enough even to pose that threat yet, Song said.

In some cases, he said, trade-reliant nations such as many in Southeast Asia may fare better with weaker currencies because exporters would earn more money when converting their U.S. dollar earnings into local units.
…

A federal court in New York has charged 22 Chinese importers with smuggling nearly half-a-billion dollars in counterfeit goods into the United States from China.

The fake products include such popular luxury items as Louis Vuitton bags, Michael Kors wallets, and Chanel perfume.

Twenty-one of the defendants were arrested Thursday.

U.S. attorneys say the suspects allegedly smuggled the China-made counterfeit goods in large shipping containers disguised as legitimate products and brought them into ports in New York and New Jersey.

The defendants apparently intended to sell the fake products across the United States with a street value of nearly $500 million.

Along with smuggling and trafficking in counterfeit goods, the suspects are also charged with money laundering and immigration fraud.

“The illegal smuggling of counterfeit goods poses a real threat to honest business,” assistant attorney general Brian Benczkowski said. “The Department of Justice is committed to holding accountable those who seek to exploit our borders by smuggling counterfeit goods for sale on the black market.”
…

A federal court in New York has charged 22 Chinese importers with smuggling nearly half-a-billion dollars in counterfeit goods into the United States from China.

The fake products include such popular luxury items as Louis Vuitton bags, Michael Kors wallets, and Chanel perfume.

Twenty-one of the defendants were arrested Thursday.

U.S. attorneys say the suspects allegedly smuggled the China-made counterfeit goods in large shipping containers disguised as legitimate products and brought them into ports in New York and New Jersey.

The defendants apparently intended to sell the fake products across the United States with a street value of nearly $500 million.

Along with smuggling and trafficking in counterfeit goods, the suspects are also charged with money laundering and immigration fraud.

“The illegal smuggling of counterfeit goods poses a real threat to honest business,” assistant attorney general Brian Benczkowski said. “The Department of Justice is committed to holding accountable those who seek to exploit our borders by smuggling counterfeit goods for sale on the black market.”
…

Russia says the latest U.S. sanctions imposed on Russian, Chinese, and Singaporean companies are “destructive” and “useless.”  

The U.S. penalized the three companies Wednesday, accusing them of helping North Korea avoid international sanctions.

The Russian Foreign Ministry said Thursday the new U.S. sanctions come when “joint international efforts” are needed toward a settlement in North Korea. Moscow said the sanctions could undermine denuclearization talks.

The U.S. has accused a Chinese trading company and its affiliate in Singapore of falsifying documents aimed at easing illegal shipments of alcohol and cigarettes into North Korea. The companies are said to have earned more than $1 billion.

A Russian company was also sanctioned for providing port services to North Korean-flagged ships engaged in illegal oil shipments.

The sanctions freeze any assets the companies may have in the United States and bars Americans from doing business with them.
…

Russia says the latest U.S. sanctions imposed on Russian, Chinese, and Singaporean companies are “destructive” and “useless.”  

The U.S. penalized the three companies Wednesday, accusing them of helping North Korea avoid international sanctions.

The Russian Foreign Ministry said Thursday the new U.S. sanctions come when “joint international efforts” are needed toward a settlement in North Korea. Moscow said the sanctions could undermine denuclearization talks.

The U.S. has accused a Chinese trading company and its affiliate in Singapore of falsifying documents aimed at easing illegal shipments of alcohol and cigarettes into North Korea. The companies are said to have earned more than $1 billion.

A Russian company was also sanctioned for providing port services to North Korean-flagged ships engaged in illegal oil shipments.

The sanctions freeze any assets the companies may have in the United States and bars Americans from doing business with them.
…

A small number of Turks are responding to their president’s call to boycott American electronic goods by posting videos in which they smash iPhones with bats, hammers and other blunt instruments.

In one video , a man collects iPhones from several youths squatting in front of a Turkish flag, lays the devices on the ground and pounds them with a sledgehammer. “For the motherland!” he says at one point.

In another video, a boy pours a plastic bottle of Coca Cola into a toilet in a show of repugnance for U.S. goods.

American products remain widely used in Turkey, which is locked in a dispute with Washington over an American pastor being tried in a Turkish court and other issues. The two countries have also imposed tariffs on each other’s goods.
…

A small number of Turks are responding to their president’s call to boycott American electronic goods by posting videos in which they smash iPhones with bats, hammers and other blunt instruments.

In one video , a man collects iPhones from several youths squatting in front of a Turkish flag, lays the devices on the ground and pounds them with a sledgehammer. “For the motherland!” he says at one point.

In another video, a boy pours a plastic bottle of Coca Cola into a toilet in a show of repugnance for U.S. goods.

American products remain widely used in Turkey, which is locked in a dispute with Washington over an American pastor being tried in a Turkish court and other issues. The two countries have also imposed tariffs on each other’s goods.
…

Mexico’s economy minister on Wednesday said that Mexico and the United States may not meet an August goal to finish bilateral talks to revamp the NAFTA trade deal, which is beset by disagreements over automobile trade rules and other issues.

Top Mexican officials started their fourth week of talks with U.S. Trade Representative Robert Lighthizer in Washington over a new North American Free Trade Agreement.

Asked if the August goal was still viable, Guajardo said, “That is why we are here. We are fully engaged. We don’t know if there will be a successful conclusion.”

The U.S.-Mexico talks resumed in July, without Canada, after negotiations involving all three members of the $1.2 trillion trade bloc stalled in June.

Guajardo said on Wednesday that he had spoken with Canadian Foreign Minister Chrystia Freeland on the telephone and was “hopeful” Canada could soon hold trilateral NAFTA talks with the United States and Mexico.

Guajardo was joined by Foreign Minister Luis Videgaray, Mexico’s chief NAFTA negotiator Kenneth Smith, and Jesus Seade, the designated chief trade negotiator of incoming Mexican President Andres Manuel Lopez Obrador.

Smith said Mexico and the United States were “working well” on the most difficult issues.

Mexico and Washington have been discussing rules for the automotive sector, which has been a major point of contention between the two countries.

The United States has sought tougher rules on what percentage of a vehicle’s components need to be built in the NAFTA region to avoid tariffs, as well as demanding that a certain number of cars and trucks be made in factories paying at least $16 an hour.

New sticking points emerged last week over President Donald Trump’s threat to impose steep automotive tariffs.

Guajardo said the teams had not yet touched the issue of a U.S. proposed sunset clause that would kill NAFTA after five years if it is not renegotiated again. Both Mexico and Canada have said they reject the measure.
…

Mexico’s economy minister on Wednesday said that Mexico and the United States may not meet an August goal to finish bilateral talks to revamp the NAFTA trade deal, which is beset by disagreements over automobile trade rules and other issues.

Top Mexican officials started their fourth week of talks with U.S. Trade Representative Robert Lighthizer in Washington over a new North American Free Trade Agreement.

Asked if the August goal was still viable, Guajardo said, “That is why we are here. We are fully engaged. We don’t know if there will be a successful conclusion.”

The U.S.-Mexico talks resumed in July, without Canada, after negotiations involving all three members of the $1.2 trillion trade bloc stalled in June.

Guajardo said on Wednesday that he had spoken with Canadian Foreign Minister Chrystia Freeland on the telephone and was “hopeful” Canada could soon hold trilateral NAFTA talks with the United States and Mexico.

Guajardo was joined by Foreign Minister Luis Videgaray, Mexico’s chief NAFTA negotiator Kenneth Smith, and Jesus Seade, the designated chief trade negotiator of incoming Mexican President Andres Manuel Lopez Obrador.

Smith said Mexico and the United States were “working well” on the most difficult issues.

Mexico and Washington have been discussing rules for the automotive sector, which has been a major point of contention between the two countries.

The United States has sought tougher rules on what percentage of a vehicle’s components need to be built in the NAFTA region to avoid tariffs, as well as demanding that a certain number of cars and trucks be made in factories paying at least $16 an hour.

New sticking points emerged last week over President Donald Trump’s threat to impose steep automotive tariffs.

Guajardo said the teams had not yet touched the issue of a U.S. proposed sunset clause that would kill NAFTA after five years if it is not renegotiated again. Both Mexico and Canada have said they reject the measure.
…

Singapore is the setting for new Hollywood movie ‘Crazy Rich Asians’ – an adaptation of a best-selling novel that explores the insatiable consumerism of new money and old-world opulence in a continent producing more billionaires than anywhere else.

While the low-tax financial hub is often called a playground for the rich, Singapore’s wealthy tend to live a more conservative, low-key life than Hong Kong’s showy socialites or Macau’s high-rollers.

In step with the film’s release in the United States on Wednesday and ahead of its release in the city-state next week, here are five ways to spend your cash in Singapore.

1. Orchid-shaped supercars

Cars in Singapore are some of the most expensive in the world, owing to huge government taxes aimed at limiting their number in the tiny island-state.

That doesn’t stop the super-rich – Ferrari, Maserati and Lamborghini are commonly sighted. When a Singaporean character in Kevin Kwan’s book, Goh Peik Lin, moves to America to study she immediately buys a Porsche saying they are “such a bargain.”

For the super-rich patriot, Singapore-based firm Vanda Electrics has designed an electric supercar – Dendrobium. Its roof and doors open in sync to resemble the orchid that is native to Singapore and after which the vehicle is named.

A show car, built by the technology arm of the Williams Formula One team, was unveiled last year. It was originally estimated to cost around 3 million euros ($3.44 million) before tax, although Vanda Electrics advised the final price will likely be lower.

1. Yachts with submarines

Yachts are an affordable alternative to such supercars.

“Impulse buys of luxury items such as yachts are becoming more common” said Phill Gregory, the Singapore head of yacht dealers Simpson Marine, who sell everything from sports boats to super yachts costing tens of millions of dollars.

Gregory said Singapore-based clients have some of the most sophisticated tastes and an eye for style: sometimes he flies them to Europe to deck out their yacht with luxury furniture from the artisans of Milan or world-famous Carrara marble straight from the quarries in Tuscany.

Others have more unusual requests. These include a bespoke ‘beach club style’ lounge area set underneath a shimmering swimming pool, helipads or even a space to park a small submarine or sea-plane.

1. 999 roses

The iconic Marina Bay Sands hotel – which resembles a giant surfboard perched on three tall columns – features prominently in the film’s trailer.

The hotel features the invitation-only Chairman’s suite – the largest in Singapore – which has its own gym, hair salon, and karaoke room, and according to some media reports costs over $15,000 a night. There is no publicly available price.

The likes of former British soccer star David Beckham and Bollywood actor Shah Rukh Khan have stayed at the hotel.

George Roe, director of hotel operations at Marina Bay Sands, said he has had some unusual requests from his guests including organizing the delivery of 999 roses to a residential address in Singapore as a surprise.

1. Rare beef

“You do realize Singapore is the most food obsessed country on the planet?,” Nick Young, the very well-heeled protagonist of ‘Crazy Rich Asians’ tells his girlfriend Rachel Chu ahead of their trip to the city-state.

Even hawker stalls hold Michelin stars in Singapore but there’s no shortage of places for the super-rich to get their fix.

The restaurant CUT by Wolfgang Puck is the only one in Singapore to offer Hokkaido snow beef – which is even scarcer than Kobe beef – through an exclusive arrangement with a private reserve in Japan.

Only two cattle are harvested from the reserve every month, with CUT receiving about 20-30 steaks a month – a chunk of which goes to regulars who visit the restaurant every time it comes on the menu, said general manager Paul Joseph. The current price is S$330 ($240) for a modest 170 gram serving.

1. Gold tea

Forget wearing gold – in Singapore you can drink it. 

Boutique Singaporean tea company TWG Tea claims to sell one of the world’s most expensive teas – a white tea plated with 24-karat gold which retails at S$19,000 ($14,000) a kilo.

The Grand Golden Yin Zhen is described as a “glimpse of the divine in a teacup”, and the gold is said to have anti-oxidant properties that revitalize and rejuvenate the skin.
…

Singapore is the setting for new Hollywood movie ‘Crazy Rich Asians’ – an adaptation of a best-selling novel that explores the insatiable consumerism of new money and old-world opulence in a continent producing more billionaires than anywhere else.

While the low-tax financial hub is often called a playground for the rich, Singapore’s wealthy tend to live a more conservative, low-key life than Hong Kong’s showy socialites or Macau’s high-rollers.

In step with the film’s release in the United States on Wednesday and ahead of its release in the city-state next week, here are five ways to spend your cash in Singapore.

1. Orchid-shaped supercars

Cars in Singapore are some of the most expensive in the world, owing to huge government taxes aimed at limiting their number in the tiny island-state.

That doesn’t stop the super-rich – Ferrari, Maserati and Lamborghini are commonly sighted. When a Singaporean character in Kevin Kwan’s book, Goh Peik Lin, moves to America to study she immediately buys a Porsche saying they are “such a bargain.”

For the super-rich patriot, Singapore-based firm Vanda Electrics has designed an electric supercar – Dendrobium. Its roof and doors open in sync to resemble the orchid that is native to Singapore and after which the vehicle is named.

A show car, built by the technology arm of the Williams Formula One team, was unveiled last year. It was originally estimated to cost around 3 million euros ($3.44 million) before tax, although Vanda Electrics advised the final price will likely be lower.

1. Yachts with submarines

Yachts are an affordable alternative to such supercars.

“Impulse buys of luxury items such as yachts are becoming more common” said Phill Gregory, the Singapore head of yacht dealers Simpson Marine, who sell everything from sports boats to super yachts costing tens of millions of dollars.

Gregory said Singapore-based clients have some of the most sophisticated tastes and an eye for style: sometimes he flies them to Europe to deck out their yacht with luxury furniture from the artisans of Milan or world-famous Carrara marble straight from the quarries in Tuscany.

Others have more unusual requests. These include a bespoke ‘beach club style’ lounge area set underneath a shimmering swimming pool, helipads or even a space to park a small submarine or sea-plane.

1. 999 roses

The iconic Marina Bay Sands hotel – which resembles a giant surfboard perched on three tall columns – features prominently in the film’s trailer.

The hotel features the invitation-only Chairman’s suite – the largest in Singapore – which has its own gym, hair salon, and karaoke room, and according to some media reports costs over $15,000 a night. There is no publicly available price.

The likes of former British soccer star David Beckham and Bollywood actor Shah Rukh Khan have stayed at the hotel.

George Roe, director of hotel operations at Marina Bay Sands, said he has had some unusual requests from his guests including organizing the delivery of 999 roses to a residential address in Singapore as a surprise.

1. Rare beef

“You do realize Singapore is the most food obsessed country on the planet?,” Nick Young, the very well-heeled protagonist of ‘Crazy Rich Asians’ tells his girlfriend Rachel Chu ahead of their trip to the city-state.

Even hawker stalls hold Michelin stars in Singapore but there’s no shortage of places for the super-rich to get their fix.

The restaurant CUT by Wolfgang Puck is the only one in Singapore to offer Hokkaido snow beef – which is even scarcer than Kobe beef – through an exclusive arrangement with a private reserve in Japan.

Only two cattle are harvested from the reserve every month, with CUT receiving about 20-30 steaks a month – a chunk of which goes to regulars who visit the restaurant every time it comes on the menu, said general manager Paul Joseph. The current price is S$330 ($240) for a modest 170 gram serving.

1. Gold tea

Forget wearing gold – in Singapore you can drink it. 

Boutique Singaporean tea company TWG Tea claims to sell one of the world’s most expensive teas – a white tea plated with 24-karat gold which retails at S$19,000 ($14,000) a kilo.

The Grand Golden Yin Zhen is described as a “glimpse of the divine in a teacup”, and the gold is said to have anti-oxidant properties that revitalize and rejuvenate the skin.
…

Toyota is likely to make 120,000 more cars a year in the Chinese port city  of Tianjin as part of a medium-term strategy that’s gathering pace as China-Japan ties improve, said four company insiders with knowledge of the matter.

The Japanese auto maker’s plan to boost annual production capacity by about a quarter in the port city will lay the foundation to increase sales in China to two million vehicles per year, a jump of over 50 percent, the four sources said.

The Tianjin expansion signals Toyota’s willingness to start adding significant manufacturing capacity in China with the possibility of one or two new assembly plants in the world’s biggest auto market, the sources said. Car imports could also increase, they said.

The move comes at a time when China’s trade outlook with the United States appears fraught and uncertain.

Toyota plans to significantly expand its sales networks and focus more on electric car technologies as part of the strategy, the sources said, declining to be identified as they are not authorised to speak to the media.

Toyota sold 1.29 million vehicles in China last year and while sales are projected at 1.4 million this year, “capacity constraints” have restricted stronger growth, the sources said.

Over 500,000 vehicles a year

Toyota’s manufacturing hub in Tianjin currently has the capacity to produce 510,000 vehicles a year, while Toyota as a whole, between two joint ventures, has overall capacity to churn out 1.16 million vehicles a year.

Manufacturing capacity numbers provided by automakers are called straight-time capacity without overtime. With overtime, a given assembly plant can produce 20 to 30 percent more than its capacity.

According to two Tianjin government websites last week, Toyota has been given regulatory approval by the municipal government’s Development and Reform Commission to pursue its expansion.

The two websites — including the official website for the Tianjin development district where Toyota’s production hub is based — said the Japanese automaker plans to expand its Tianjin base to be able to manufacture 10,000 all-electric battery cars and 110,000 so-called plug-in electric hybrids annually. It wasn’t immediately clear when Toyota will be able to start producing those additional cars.

A Beijing-based Toyota spokesman declined to comment. The Tianjin facilities, which produces cars such as the Toyota Corolla and Vios cars, are owned and operated by one of Toyota’s joint ventures in China.

The venture with FAW in Tianjin plans to invest 1.76 billion yuan ($257 million) for the expansion, according to the two Tianjin websites.

Historical backlash 

China is sometimes a market difficult to operate for Japanese companies because of historical reasons.

In 2012, cars sold by Toyota and other Japanese automakers were battered when protests erupted across China after diplomatic spats over disputed islets known as Diaoyu in China and Senkaku in Japan.

Since then, Toyota has emphasised steady growth rather than taking on risky expansion projects.

According to the four sources, Toyota’s attitude towards China began changing markedly after an official visit to Japan by Chinese Premier Li Keqiang in May.

During the visit, Li toured Toyota’s facilities on the northern island of Hokkaido, and was escorted by Toyota’s family scion and chief executive Akio Toyoda.

Toyoda has since sought to boost his company’s presence in China, a vision that had culminated in an active effort to identify specific ways to do just that, according to the four sources.

They said aside from boosting capacity, Toyota is also looking at the possibility to significantly expand its distribution networks for the mainstream Toyota and premium Lexus brands.

Timing is perfect for Toyota

It wasn’t immediately clear how significant a distribution network expansion Toyota is planning for both brands. Currently, Toyota has more than 1,300 stores for the Toyota brand and nearly 190 for its Lexus luxury cars.

The timing for the China expansion couldn’t be better. Earlier this year, Toyota was able to finally launch a couple of much anticipated, potentially high-volume subcompact sport-utility vehicles (SUVs) — two China-market versions of the Toyota C-HR crossover SUV which hit showrooms in the United States last year.

The C-HR variants are relatively small crossover SUVs that other manufacturers, most notably Japan’s Honda, have leveraged to grow sales rapidly and sell more cars in China than its much bigger rival Toyota. Honda sold 1.44 million vehicles in China last year.

Benefit for Lexus

Lexus is also deemed likely to benefit from a windfall from growing trade tensions between China and the United States.

In retaliation for U.S. trade actions, China raised tariffs on automobiles imported from the United States in early July to 40 percent, which, among other things, has forced Tesla, BMW, as well as Daimler AG’s Mercedes-Benz to raise prices on certain U.S. — built vehicles, such as the hot-selling BMW X5 and X6 crossover sport-utility vehicles.

One likely consequence for those brands is a sales fall, a profit squeeze, or both.

By contrast, all Lexus cars Toyota sells in China are brought in from Japan and benefit from a much lower tariff rate of 15 percent levied on non-U.S. produced car imports.
…

Toyota is likely to make 120,000 more cars a year in the Chinese port city  of Tianjin as part of a medium-term strategy that’s gathering pace as China-Japan ties improve, said four company insiders with knowledge of the matter.

The Japanese auto maker’s plan to boost annual production capacity by about a quarter in the port city will lay the foundation to increase sales in China to two million vehicles per year, a jump of over 50 percent, the four sources said.

The Tianjin expansion signals Toyota’s willingness to start adding significant manufacturing capacity in China with the possibility of one or two new assembly plants in the world’s biggest auto market, the sources said. Car imports could also increase, they said.

The move comes at a time when China’s trade outlook with the United States appears fraught and uncertain.

Toyota plans to significantly expand its sales networks and focus more on electric car technologies as part of the strategy, the sources said, declining to be identified as they are not authorised to speak to the media.

Toyota sold 1.29 million vehicles in China last year and while sales are projected at 1.4 million this year, “capacity constraints” have restricted stronger growth, the sources said.

Over 500,000 vehicles a year

Toyota’s manufacturing hub in Tianjin currently has the capacity to produce 510,000 vehicles a year, while Toyota as a whole, between two joint ventures, has overall capacity to churn out 1.16 million vehicles a year.

Manufacturing capacity numbers provided by automakers are called straight-time capacity without overtime. With overtime, a given assembly plant can produce 20 to 30 percent more than its capacity.

According to two Tianjin government websites last week, Toyota has been given regulatory approval by the municipal government’s Development and Reform Commission to pursue its expansion.

The two websites — including the official website for the Tianjin development district where Toyota’s production hub is based — said the Japanese automaker plans to expand its Tianjin base to be able to manufacture 10,000 all-electric battery cars and 110,000 so-called plug-in electric hybrids annually. It wasn’t immediately clear when Toyota will be able to start producing those additional cars.

A Beijing-based Toyota spokesman declined to comment. The Tianjin facilities, which produces cars such as the Toyota Corolla and Vios cars, are owned and operated by one of Toyota’s joint ventures in China.

The venture with FAW in Tianjin plans to invest 1.76 billion yuan ($257 million) for the expansion, according to the two Tianjin websites.

Historical backlash 

China is sometimes a market difficult to operate for Japanese companies because of historical reasons.

In 2012, cars sold by Toyota and other Japanese automakers were battered when protests erupted across China after diplomatic spats over disputed islets known as Diaoyu in China and Senkaku in Japan.

Since then, Toyota has emphasised steady growth rather than taking on risky expansion projects.

According to the four sources, Toyota’s attitude towards China began changing markedly after an official visit to Japan by Chinese Premier Li Keqiang in May.

During the visit, Li toured Toyota’s facilities on the northern island of Hokkaido, and was escorted by Toyota’s family scion and chief executive Akio Toyoda.

Toyoda has since sought to boost his company’s presence in China, a vision that had culminated in an active effort to identify specific ways to do just that, according to the four sources.

They said aside from boosting capacity, Toyota is also looking at the possibility to significantly expand its distribution networks for the mainstream Toyota and premium Lexus brands.

Timing is perfect for Toyota

It wasn’t immediately clear how significant a distribution network expansion Toyota is planning for both brands. Currently, Toyota has more than 1,300 stores for the Toyota brand and nearly 190 for its Lexus luxury cars.

The timing for the China expansion couldn’t be better. Earlier this year, Toyota was able to finally launch a couple of much anticipated, potentially high-volume subcompact sport-utility vehicles (SUVs) — two China-market versions of the Toyota C-HR crossover SUV which hit showrooms in the United States last year.

The C-HR variants are relatively small crossover SUVs that other manufacturers, most notably Japan’s Honda, have leveraged to grow sales rapidly and sell more cars in China than its much bigger rival Toyota. Honda sold 1.44 million vehicles in China last year.

Benefit for Lexus

Lexus is also deemed likely to benefit from a windfall from growing trade tensions between China and the United States.

In retaliation for U.S. trade actions, China raised tariffs on automobiles imported from the United States in early July to 40 percent, which, among other things, has forced Tesla, BMW, as well as Daimler AG’s Mercedes-Benz to raise prices on certain U.S. — built vehicles, such as the hot-selling BMW X5 and X6 crossover sport-utility vehicles.

One likely consequence for those brands is a sales fall, a profit squeeze, or both.

By contrast, all Lexus cars Toyota sells in China are brought in from Japan and benefit from a much lower tariff rate of 15 percent levied on non-U.S. produced car imports.
…

U.S. retail sales rose more than expected in July as households boosted purchases of motor vehicles and clothing, suggesting the economy remained strong early in the third quarter.

The Commerce Department said on Wednesday retail sales increased 0.5 percent last month. But data for June was revised lower to show sales gaining 0.2 percent instead of the previously reported 0.5 percent rise.

Economists polled by Reuters had forecast retail sales nudging up 0.1 percent in July. Retail sales in July increased 6.4 percent from a year ago.

Excluding automobiles, gasoline, building materials and food services, retail sales advanced 0.5 percent last month after a downwardly revised 0.1 percent dip in June. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.

Core retail sales were previously reported to have been unchanged in June. Consumer spending is being supported by a tightening labor market, which is steadily pushing up wages. Tax cuts and higher savings are also underpinning consumption.

July’s increase in core retail sales suggested the economy started the third quarter on solid footing after logging its best performance in nearly four years in the second quarter.

GDP surged at a 4.1 percent annualized rate in the April-June period, almost double the 2.2 percent pace in the first quarter. While the economy is unlikely to repeat the second quarter’s robust performance, growth in the July-September period is expected to top a 3.0 percent rate.

Auto sales rose 0.2 percent in July after edging up 0.1 percent in June. Receipts at service stations increased 0.8 percent. Sales at clothing stores rebounded 1.3 percent after declining 1.6 percent in June.

Online and mail-order retail sales increased 0.8 percent, likely boosted by Amazon’s “Prime Day” promotion. That followed a 0.7 percent rise in June. Americans spent more at restaurants and bars, lifting sales 1.3 percent.

But receipts at furniture stores fell 0.5 percent and sales at building material stores were unchanged last month. Spending at hobby, musical instrument and book stores declined further in July, falling 1.7 percent.
…

U.S. retail sales rose more than expected in July as households boosted purchases of motor vehicles and clothing, suggesting the economy remained strong early in the third quarter.

The Commerce Department said on Wednesday retail sales increased 0.5 percent last month. But data for June was revised lower to show sales gaining 0.2 percent instead of the previously reported 0.5 percent rise.

Economists polled by Reuters had forecast retail sales nudging up 0.1 percent in July. Retail sales in July increased 6.4 percent from a year ago.

Excluding automobiles, gasoline, building materials and food services, retail sales advanced 0.5 percent last month after a downwardly revised 0.1 percent dip in June. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.

Core retail sales were previously reported to have been unchanged in June. Consumer spending is being supported by a tightening labor market, which is steadily pushing up wages. Tax cuts and higher savings are also underpinning consumption.

July’s increase in core retail sales suggested the economy started the third quarter on solid footing after logging its best performance in nearly four years in the second quarter.

GDP surged at a 4.1 percent annualized rate in the April-June period, almost double the 2.2 percent pace in the first quarter. While the economy is unlikely to repeat the second quarter’s robust performance, growth in the July-September period is expected to top a 3.0 percent rate.

Auto sales rose 0.2 percent in July after edging up 0.1 percent in June. Receipts at service stations increased 0.8 percent. Sales at clothing stores rebounded 1.3 percent after declining 1.6 percent in June.

Online and mail-order retail sales increased 0.8 percent, likely boosted by Amazon’s “Prime Day” promotion. That followed a 0.7 percent rise in June. Americans spent more at restaurants and bars, lifting sales 1.3 percent.

But receipts at furniture stores fell 0.5 percent and sales at building material stores were unchanged last month. Spending at hobby, musical instrument and book stores declined further in July, falling 1.7 percent.
…

Turkey on Wednesday announced tariff hikes on a range of U.S. goods in the latest back-and-forth move amid a deteriorating relationship between the two countries.

The extra tariffs apply to imports of vehicles, alcohol, coal, rice and cosmetics.

Turkish Vice President Fuat Oktay said on Twitter the increases were being done “within the framework of the principle of reciprocity in retaliation for the conscious economic attacks by the United States.”

President Recep Tayyip Erdogan is accusing the United States of waging a targeted economic war on his country, and on Tuesday he proposed a boycott of U.S. electronic goods.

“If they have the iPhone, there is Samsung elsewhere. In our own country we have Vestel,” said Erdogan.

Asked how U.S. President Donald Trump’s administration would react to any such Turkish boycott, White House Press Secretary Sarah Huckabee Sanders replied during Tuesday afternoon’s briefing, “I certainly don’t have a policy announcement on that at this point.” 

Trump administration sources say further sanctions against Turkey are under active consideration. But Sanders declined to say how the U.S. government plans to apply more pressure on Ankara, which repeatedly has ignored calls from Trump and others to free Christian pastor Andrew Brunson. 

Turkey accuses Brunson of espionage and is holding him under house arrest pending his trial. 

The chargé d’affaires at the U.S. embassy in Turkey, Jeffrey Hovenier, visited Brunson on Tuesday and called for his case — and those of others detained in Turkey — to be resolved “without delay” and in a “fair and transparent manner.”

National Security Adviser John Bolton met at the White House on Monday with Turkish ambassador Serdar Kilic, but the discussion reportedly did not result in any substantive progress.

Trump, who has called Brunson’s detention a “total disgrace,” last Friday doubled tariffs on Turkish steel and aluminum exports in order to increase pressure on Erdogan. 

Earlier this month, the U.S. Treasury Department sanctioned Turkey’s ministers of Justice and Interior in response to the continued detention of the pastor, who has lived in the country for 20 years and heads an evangelical congregation of about two dozen people in the port city of Izmir. 

The escalating dispute between the two countries has exacerbated Turkey’s economic crisis, pushing the lira to record lows. The Turkish currency has lost about 40 percent of its value this year against the U.S. dollar.

Erdogan has called on Turks to exchange their dollars for lira in order to shore up the domestic currency.

In a joint statement Tuesday, Turkish business groups called on the government to institute tighter monetary policy in order to combat the currency crisis. They also said Turkey should work to resolve the situation with the United States diplomatically while also improving relations with another major trading partner, the European Union.

The Turkish central bank has pledged to take “all necessary measures” to stabilize the country’s economy to make sure the banks have all the money they need. But world stock traders were dismayed the bank did not raise interest rates, which is what many economists believe is necessary to ease the crisis.

The United States and Turkey also have diverging interests over Syria, which is enmeshed in a protracted civil war. 

The differences are drawing Turkey closer to Russia, they key adversary of NATO but a country supplying more than half of Turkey’s gas.

Turkey has agreed to buy S-400 surface-to-air missiles from Russia, an unprecedented move by a NATO member, which has raised objections from members of both parties of the U.S. Congress and the Trump administration. 

Russia’s foreign minister, Sergey Lavrov, voiced support for Turkey during a joint news conference with his Turkish counterpart in Ankara on Tuesday, stating both countries plan to switch from dollars to national currencies for their mutual trade.

“We view the policy of sanctions as unlawful and illegitimate, driven mostly by a desire to dominate everywhere and in everything, dictate policies and call shots in international affairs,” said Lavrov, predicting “such a policy can’t be a basis for normal dialogue and can’t last long.

Lavrov, alongside Turkish Foreign Minister Mevlut Cavusoglu, also declared, “We are at a turning point, without exaggeration, in world history” from dominance by a single power toward a multipolar environment. 
…

Turkey on Wednesday announced tariff hikes on a range of U.S. goods in the latest back-and-forth move amid a deteriorating relationship between the two countries.

The extra tariffs apply to imports of vehicles, alcohol, coal, rice and cosmetics.

Turkish Vice President Fuat Oktay said on Twitter the increases were being done “within the framework of the principle of reciprocity in retaliation for the conscious economic attacks by the United States.”

President Recep Tayyip Erdogan is accusing the United States of waging a targeted economic war on his country, and on Tuesday he proposed a boycott of U.S. electronic goods.

“If they have the iPhone, there is Samsung elsewhere. In our own country we have Vestel,” said Erdogan.

Asked how U.S. President Donald Trump’s administration would react to any such Turkish boycott, White House Press Secretary Sarah Huckabee Sanders replied during Tuesday afternoon’s briefing, “I certainly don’t have a policy announcement on that at this point.” 

Trump administration sources say further sanctions against Turkey are under active consideration. But Sanders declined to say how the U.S. government plans to apply more pressure on Ankara, which repeatedly has ignored calls from Trump and others to free Christian pastor Andrew Brunson. 

Turkey accuses Brunson of espionage and is holding him under house arrest pending his trial. 

The chargé d’affaires at the U.S. embassy in Turkey, Jeffrey Hovenier, visited Brunson on Tuesday and called for his case — and those of others detained in Turkey — to be resolved “without delay” and in a “fair and transparent manner.”

National Security Adviser John Bolton met at the White House on Monday with Turkish ambassador Serdar Kilic, but the discussion reportedly did not result in any substantive progress.

Trump, who has called Brunson’s detention a “total disgrace,” last Friday doubled tariffs on Turkish steel and aluminum exports in order to increase pressure on Erdogan. 

Earlier this month, the U.S. Treasury Department sanctioned Turkey’s ministers of Justice and Interior in response to the continued detention of the pastor, who has lived in the country for 20 years and heads an evangelical congregation of about two dozen people in the port city of Izmir. 

The escalating dispute between the two countries has exacerbated Turkey’s economic crisis, pushing the lira to record lows. The Turkish currency has lost about 40 percent of its value this year against the U.S. dollar.

Erdogan has called on Turks to exchange their dollars for lira in order to shore up the domestic currency.

In a joint statement Tuesday, Turkish business groups called on the government to institute tighter monetary policy in order to combat the currency crisis. They also said Turkey should work to resolve the situation with the United States diplomatically while also improving relations with another major trading partner, the European Union.

The Turkish central bank has pledged to take “all necessary measures” to stabilize the country’s economy to make sure the banks have all the money they need. But world stock traders were dismayed the bank did not raise interest rates, which is what many economists believe is necessary to ease the crisis.

The United States and Turkey also have diverging interests over Syria, which is enmeshed in a protracted civil war. 

The differences are drawing Turkey closer to Russia, they key adversary of NATO but a country supplying more than half of Turkey’s gas.

Turkey has agreed to buy S-400 surface-to-air missiles from Russia, an unprecedented move by a NATO member, which has raised objections from members of both parties of the U.S. Congress and the Trump administration. 

Russia’s foreign minister, Sergey Lavrov, voiced support for Turkey during a joint news conference with his Turkish counterpart in Ankara on Tuesday, stating both countries plan to switch from dollars to national currencies for their mutual trade.

“We view the policy of sanctions as unlawful and illegitimate, driven mostly by a desire to dominate everywhere and in everything, dictate policies and call shots in international affairs,” said Lavrov, predicting “such a policy can’t be a basis for normal dialogue and can’t last long.

Lavrov, alongside Turkish Foreign Minister Mevlut Cavusoglu, also declared, “We are at a turning point, without exaggeration, in world history” from dominance by a single power toward a multipolar environment. 
…

New Zealand school teachers went on strike on Wednesday for the first time in more than 20 years, challenging the Labor government’s plans to balance promised fiscal responsibility against growing demands to increase public sector salaries.

The government’s first budget in May was stretched to fulfill its promise to juggle investing in much-needed infrastructure with a self-imposed rule to pay down debt and insulate the economy from potential shocks.

Almost 30,000 primary school teachers did not turn up to work on Wednesday and held protests across the country, leaving parents of children aged 5 to 13 at public schools scrambling to find childcare.

“Teachers and principals voted for a full day strike…to send a strong message to the Government that the current collective agreement offers from the Ministry of Education would not fix the crisis in teaching,” said Louise Green, lead negotiator at NZEI, the union that represents teachers, in a statement.

NZEI said it has asked for a 16 percent pay increase for teachers over two years, whereas the government has offered between 6.1 and 14.7 percent pay rises, depending on experience, over three years.

“Our view is that we need to have those discussions around the negotiating table but…there isn’t an endless amount that we have available to us in order to meet those expectations,” Prime Minister Jacinda Ardern said at her weekly news conference on Monday.

​The action comes in the wake of a one-day nationwide nurses’ strike in July and a series of smaller actions by government workers, challenging Ardern’s center-left government, which ended almost a decade of center-right National Party rule in October.

The stand-off with its traditional union support base comes nine months after Labor formed a coalition government, promising to pour money into social services and rein in inequality, which has increased despite years of strong growth.

Wage growth has remained sluggish in the island nation for years, despite soaring housing costs, which labour groups and economists say has left workers struggling despite robust growth.

The government is also struggling with gloomy business confidence, which has sunk to decade lows and contributed to a surprise signal from the central bank on Thursday that it planned to keep rates on hold into 2020 and saw downside risks to its growth forecasts.
…

New Zealand school teachers went on strike on Wednesday for the first time in more than 20 years, challenging the Labor government’s plans to balance promised fiscal responsibility against growing demands to increase public sector salaries.

The government’s first budget in May was stretched to fulfill its promise to juggle investing in much-needed infrastructure with a self-imposed rule to pay down debt and insulate the economy from potential shocks.

Almost 30,000 primary school teachers did not turn up to work on Wednesday and held protests across the country, leaving parents of children aged 5 to 13 at public schools scrambling to find childcare.

“Teachers and principals voted for a full day strike…to send a strong message to the Government that the current collective agreement offers from the Ministry of Education would not fix the crisis in teaching,” said Louise Green, lead negotiator at NZEI, the union that represents teachers, in a statement.

NZEI said it has asked for a 16 percent pay increase for teachers over two years, whereas the government has offered between 6.1 and 14.7 percent pay rises, depending on experience, over three years.

“Our view is that we need to have those discussions around the negotiating table but…there isn’t an endless amount that we have available to us in order to meet those expectations,” Prime Minister Jacinda Ardern said at her weekly news conference on Monday.

​The action comes in the wake of a one-day nationwide nurses’ strike in July and a series of smaller actions by government workers, challenging Ardern’s center-left government, which ended almost a decade of center-right National Party rule in October.

The stand-off with its traditional union support base comes nine months after Labor formed a coalition government, promising to pour money into social services and rein in inequality, which has increased despite years of strong growth.

Wage growth has remained sluggish in the island nation for years, despite soaring housing costs, which labour groups and economists say has left workers struggling despite robust growth.

The government is also struggling with gloomy business confidence, which has sunk to decade lows and contributed to a surprise signal from the central bank on Thursday that it planned to keep rates on hold into 2020 and saw downside risks to its growth forecasts.
…

The Indian rupee fell to an all-time low Tuesday against the U.S. dollar amid worries that Turkey’s growing financial crisis could spread to other developing-world economies.

Indian Economic Affairs Secretary Subhash Chander Garg told reporters that there was “nothing at this stage to worry” about after the rupee reached 70.1 to the dollar earlier in the day. He said the dip resulted from “external factors.”

The rupee ended the day at 69.93 per dollar, down 110 paise or 1.6 percent. It was the currency’s biggest one-day drop in five years. The rupee has lost about 8 percent of its value this year.

Garg said the country had sufficient foreign exchange reserves to weather the downturn.

Turkey’s central bank has been unable to stop a sharp plunge in the lira, pushing the value of the dollar higher and driving down emerging-market currencies from South Africa to Mexico.

Rajnish Kumar, chairman of the State Bank of India, said he believed the rupee would stabilize at around 69-70 to the dollar, the Press Trust of India news agency reported.

Turkey’s economy has been troubled for years, but the latest crisis was set off by worries over President Recep Tayyip Erdogan’s economic policies and a trade dispute with the United States. Turkey’s government has so far refused to raise interest rates to prop up the currency, fearing a political backlash if it causes the economy to slow.

The falling rupee, which will make Indian exports cheaper on overseas markets, was welcomed by one of India’s top industrialists.

“With this boost to India’s export competitiveness could we now convince global companies that it’s time to switch to India for world-scale, export-focused manufacturing?” Anand Mahindra, the executive chairman of the Mahindra Group, said on Twitter. Mahindra’s interests range from cars to construction equipment to insurance.

India’s manufacturing economy has long been overshadowed by China’s.

 
…

The Indian rupee fell to an all-time low Tuesday against the U.S. dollar amid worries that Turkey’s growing financial crisis could spread to other developing-world economies.

Indian Economic Affairs Secretary Subhash Chander Garg told reporters that there was “nothing at this stage to worry” about after the rupee reached 70.1 to the dollar earlier in the day. He said the dip resulted from “external factors.”

The rupee ended the day at 69.93 per dollar, down 110 paise or 1.6 percent. It was the currency’s biggest one-day drop in five years. The rupee has lost about 8 percent of its value this year.

Garg said the country had sufficient foreign exchange reserves to weather the downturn.

Turkey’s central bank has been unable to stop a sharp plunge in the lira, pushing the value of the dollar higher and driving down emerging-market currencies from South Africa to Mexico.

Rajnish Kumar, chairman of the State Bank of India, said he believed the rupee would stabilize at around 69-70 to the dollar, the Press Trust of India news agency reported.

Turkey’s economy has been troubled for years, but the latest crisis was set off by worries over President Recep Tayyip Erdogan’s economic policies and a trade dispute with the United States. Turkey’s government has so far refused to raise interest rates to prop up the currency, fearing a political backlash if it causes the economy to slow.

The falling rupee, which will make Indian exports cheaper on overseas markets, was welcomed by one of India’s top industrialists.

“With this boost to India’s export competitiveness could we now convince global companies that it’s time to switch to India for world-scale, export-focused manufacturing?” Anand Mahindra, the executive chairman of the Mahindra Group, said on Twitter. Mahindra’s interests range from cars to construction equipment to insurance.

India’s manufacturing economy has long been overshadowed by China’s.

 
…