China growth momentum slows further amid calls for stimulus

Continued from A11 in construction and services— slipped to 53.2 from 54.5 the prior month, still expanding but at a weaker pace.

A reading below 50 signals contraction from the previous month and anything above that points to expansion.

“The PMI figures failed to rebound and reinforce the message that the economy is slowing down,” said Raymond Yeung, chief economist for Greater China at Australia & New Zealand Banking Group Ltd. “The question is no longer whether the government will deliver growth stimulus. They have been doing so. The right question to ask is the quality of stimulus.”

Chinese stocks were relatively muted in early trading. The CSI 300 Index gained as much as 0.5 percent in early trading after declining for two days. The Hang Seng China Enterprises Index rose up to 0.8 percent. The offshore yuan gained 0.2 percent, edging up from its weakest level since November.

Speculation about potential policy support has been mounting as the recovery for the world’s second-largest economy loses traction. After a burst of activity in the first quarter, consumer spending is slowing. The housing rebound has fizzled, exports have weakened and infrastructure investment has been muted, too.

More from the PMI data: n The employment sub-gauge for the non-manufacturing sector fell to 46.8 from 48.4 in the previous month; n A similar gauge for the manufacturing industry slid to 48.2 from 48.4 n A sub-gauge of export orders received by factories fell to 46.4 in June, the lowest reading since January; n Overall new orders sub-gauge was 48.6, up from 48.3 in May— though still in contraction.

What Bloomberg Economics Says ... “Weakness in services and a slowdown in construction dragged down growth in the non-manufacturing sector. A slightly narrower contraction in manufacturing was nothing to cheer about—that only reflected more working days in the month. The People Bank of China trimmed rates in June. Friday’s weak data reinforce the case for further easing.”

—Chang Shu and Eric Zhu, economists

The People’s Bank of China cut policy interest rates this month for the first time in nearly a year, signaling looser monetary policy. But experts largely project that stimulus this year will be moderate, given how Beijing’s scope for monetary and fiscal support has been constrained.

Data has shown an ongoing contraction in demand, with overseas demand deteriorating faster, according to Bruce Pang, chief economist and head of research for Greater China at Jones Lang LaSalle Inc. He added that small and private companies are under rising pressure, while non-manufacturing firms are seeing sharper job cuts.

“All these require a more forceful package to support the economy to be introduced at a sooner date,” Pang said.

Along with cutting interest rates, authorities have extended tax breaks for electric car buyers and eased home purchase restrictions in more cities. But they’ve been slow to introduce additional measures.

Limitations include potential strains for cash-strapped local governments, which are struggling to repay debt. More rate cuts, meanwhile, would further widen the yield gap with the US, adding downward pressure on the yuan. Bloomberg News

600 arrested: 200 cops hurt on France’s 3rd night of protests over teen’s killing

NANTERRE, France—Protesters erected barricades, lit fires and shot fireworks at police in French streets overnight as tensions grew over the deadly police shooting of a 17-year-old that has shocked the nation.

More than 600 people were arrested and at least 200 police officers injured as the government struggled to restore order on a third night of unrest.

Armored police vehicles rammed through the charred remains of cars that had been flipped and set ablaze in the northwestern Paris suburb of Nanterre, where a police officer shot the teen identified only by his first name, Nahel. On the other side of Paris, protesters lit a fire at the city hall of the suburb of Clichy-sous-Bois and set a bus depot ablaze in Aubervilliers.

The French capital also saw fires and some stores ransacked.

In the Mediterranean port city of Marseille, police sought to disperse violent groups in the city center, regional authorities said.

President Emmanuel Macron planned to leave an EU summit in Brussels, where France plays a major role in European policymaking, to return to Paris and hold an emergency security meeting Friday.

Some 40,000 police officers were deployed to quell the protests. Police detained 667 people, the interior minister said; 307 of those were in the Paris region alone, according to the Paris police headquarters.

Around 200 police officers were injured, according to a national police spokesperson. No information was available about injuries among the rest of the population.

Schools, town halls and police stations were targeted by people setting fires, and police used tear gas, water cannons and dispersion grenades against rioters, the spokesperson said.

Interior Minister Gerald Darmanin on Friday denounced what he called a night of “rare violence.” His office described the arrests as a sharp increase on previous operations as part of an overall government efforts to be “extremely firm” with rioters.

The government has stopped short of declaring a state of emergency—a measure taken to quell weeks of rioting around France that followed the accidental death of two boys fleeing police in 2005.

The police officer accused of pulling the trigger Tuesday was handed a preliminary charge of voluntary homicide after prosecutor Pascal Prache said his initial investigation led him to conclude “the conditions for the legal use of the weapon were not met.” Preliminary charges mean investigating magistrates strongly suspect wrongdoing but need to investigate more before sending a case to trial.

The detained police officer’s lawyer, speaking on French TV channel BFMTV, said the officer was sorry and “devastated.” The officer did what he thought was necessary in the moment, attorney Laurent-Franck Lienard told the news outlet.

“He doesn’t get up in the morning to kill people,” Lienard said of the officer, whose name has not been released as per French practice in criminal cases.

“He really didn’t want to kill.”The shooting captured on video shocked France and stirred up long-simmering tensions between police and young people in housing projects and other disadvantaged neighborhoods.

The teenager’s family and their lawyers haven’t said the police shooting was racerelated and they didn’t release his surname or details about him.

Still, anti-racism activists renewed their complaints about police behavior.

“We have to go beyond saying that things need to calm down,” said Dominique Sopo, head of the campaign group SOS Racisme.

“The issue here is how do we make it so that we have a police force that when they see Blacks and Arabs, don’t tend to shout at them, use racist terms against them and in some cases, shoot them in the head.”

China steelmakers issue stark warning about 2nd half outlook

CHINA’S leading steelmakers warned the industry faces a very challenging second half as demand disappoints, profitability lags, and pressure to cut costs mounts in the world’s top producer.

Repr esentatives from China

Baowu Steel Group Co., Ansteel Group Co., Hesteel Co. and Hunan Iron & Steel Group Co. said they are “not optimistic” about the coming six months, the China Iron & Steel Association (CISA) said after the four companies attended a meeting organized by the industry body this week.

“The peak inflection point for steel demand has emerged, while the problems of insufficient enduser consumption, and ongoing thin margins are particularly prominent,” the CISA said in a statement, citing the quartet of companies.

Mills in China—which account for more than half of global steel production and are the largest importers of iron ore—have struggled this year as the nation’s recovery has stalled while a property crisis dragged on. Data released on Friday showed that manufacturing contracted again in June, adding to a string of soft figures. While that’s led to calls for more stimulus to prop up growth, officials in Beijing have so far refrained from significant measures.

“We are relatively cautious on further gains in iron ore,” said Wei Ying, an analyst at China Industrial Futures Ltd., citing the dimming outlook for Chinese steel demand. The outlook hinges on how China carries out additional stimulus, including whether the National Development and Reform Commission intervenes again, Wei said, referring to the senior state agency.

Iron ore futures gave up early, intraday gains to trade 1.2 percent lower at $111.45 a ton in Singapore at 2:40 p.m. The move lower widened a quarterly loss to 11 percent, although prices remain higher this month.

Almost half of major mills were loss-making in the first five months of the year, CISA said. Meanwhile, official figures show nationwide steel production in May was the lowest for that month since 2019, and the industry’s purchasing managers index pointed to another contraction in June even as orders rose.

Low profitability in the industry has persisted for nearly a year, said Luo Tiejun, the association’s vice chairman. However, “upstream raw materials for steel-making still remain at a relatively elevated levels,” Luo added.

The spot price of steel rebar—a benchmark product that’s used in construction—has slumped by more than 8 percent this year, while iron ore futures in Singapore have dropped about 3 percent in that period. Bloomberg News

Saturday, July 1, 2023

THE Philippine Rugby Football Union (PRFU) is thrilled to announce the election of Ada Milby to World Rugby’s Executive Board.

Ada’s appointment marks a historic moment for the global organization as she becomes the first representative from Asia to join the esteemed board.

M ilby, a respected leader and advocate for the global rugby community, brings a wealth of experience and expertise to her new role on the Executive Board. She was former captain of the Philippine Women’s Rugby Team.

W ith an extensive background in rugby, Milby has played a pivotal role in promoting and developing the sport across the Asia region, and her election underscores World Rugby’s commitment to fostering diversity and inclusion within the organization.

Milby’s appointment to the Executive Board comes at a critical juncture for the sport, as World Rugby strives to create a more inclusive and equitable environment for all its stakeholders.

In her new role, Milby will work closely with fellow board members, collaborating on key decisions, and providing valuable input on issues related to governance, development, and global rugby initiatives.

Her appointment is a testament to World Rugby’s commitment to transforming the sport and leveraging the power of rugby to drive positive social change.