China's FDI volume basically stable

Foreign direct investment into the Chinese mainland dropped 1.2 percent year-on-year between January and July to 485.42 billion yuan ($72.66 billion), official data released by the Ministry of Commerce show. A total of 17,703 newly funded foreign companies were established in the first seven months, up 12 percent year-on-year, according to the ministry. "The FDI volume was basically stable from January to July, and the structure continued to optimize," said Lin Guijun, a professor at the University of International Business and Economics. "FDI to China is likely to remain stable in the second half of this year, especially in areas such as consumer goods, and software development, leasing and information services, as foreign companies are realizing that China's growing middle class will have higher levels of disposable income and that the country is shifting to a productivity-driven growth model," said Lin.

COMPANIES AND MARKETS

Yuan weakens against dollar

The central parity rate of the Chinese currency renminbi, or the yuan, weakened 88 basis points to 6.6689 against the US dollar on Tuesday, according to the China Foreign Exchange Trade System. In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day. The central parity rate of the yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

Huge number of pilots needed

More than 253,000 new pilots will be needed in the next 20 years for the surging Asia-Pacific aviation market, Boeing China announced on Monday. Boeing predicted that from 2017 to 2036 the world's commercial aviation industry will require about 637,000 new commercial airline pilots, according to its newly released 2017 Pilot and Technician Outlook. The worldwide demand for commercial aviation industry professionals also includes 648,000 new commercial airline maintenance technicians and 839,000 new cabin crew members. The Asia-Pacific, Europe and North America markets top the list of global demand for professionals in the commercial aviation industry. In the Asia-Pacific region, the demand for new pilots, technicians and cabin crew is forecast to reach 253,000, 256,000 and 308,000, respectively.

Brunei plan attracts tourists

Progresif Cellular Sdn Bhd (Progresif), the second-biggest mobile service provider in Brunei, announced that it was extending its unlimited plan to tourists, giving them "the complete freedom of communication during their time in the Sultanate". According to local media on Monday, the plan enables tourists to enjoy unlimited local calls, text messages and data browsing. Alternatively, they can opt for unlimited calls and text along with 1 gigabyte of local data browsing. For tourists venturing into neighboring Malaysian towns, the plan will also enable them to roam and communicate freely without the hassle of having to exchange their SIM cards. The experience of unlimited communications is further augmented with immediate access to transportation services through DART, Brunei's first ride booking service.

AROUND THE WORLD

Canada unveils deal wish list

Canada will press the United States to retain a dispute-resolution mechanism and protect Canada's supply-management system. It will do so in the upcoming redrafting talks of the North American Free Trade Agreement talks between Canada, the United States and Mexico, Canadian Foreign Minister Chrystia Freeland said on Monday. "Canada will uphold and preserve the elements in NAFTA that Canadians deem key to our national interest, including a process to ensure anti-dumping and countervailing duties are only applied fairly when truly warranted," she said in a speech at the University of Ottawa's Centre for International Policy Studies. A dispute-resolution mechanism under Chapter 19 of NAFTA allows Canada and Mexico to appeal countervailing and anti-dumping duties imposed by the US through independent tribunals, that have often ruled against the US, rather than through judicial reviews in US courts.

Brazil's 2017 soy exports up

Brazil's soy exports so far this year have already outstripped last year's total, according to official figures released on Monday. Through mid-August, the world's top soy exporter shipped 53.37 million metric tons of the grain aboard, topping 2016's total of 51.58 million tons, the Agriculture Ministry reported. The increase follows a bumper crop of 114 million tons in the 2016-17 season, compared with the 95.4 million tons harvested in the previous period, which was affected by drought. Annual soy exports could overtake the 54.3-million-ton record set in 2015, the government projected. The Brazilian Vegetable Oil Industry Association is even more optimistic, forecasting that exports will reach 64 million tons. Brazilian news website Globo said the increase puts a burden on the country's export infrastructure, noting that in the next few months, nearly 10 million tons of soy will have to "compete for space" against corn at shipping terminals.

South Korea posts trade surplus

South Korea's economy posted a $10.3 billion trade surplus last month thanks to a double-digit increase in exports, customs data showed on Monday. The revised figure for exports, which account for about half of the economy, advanced 19.5 percent over the year to $48.8 billion in July, according to the Korea Customs Service. Imports gained 15.5 percent to $38.6 billion in the same period. The double-digit expansion in exports was led by solid demand for semiconductors, of which exports jumped 60.9 percent. Ship exports more than tripled last month, but those for telecommunications devices, including smartphones, posted a double-digit decline on rising production in overseas factories.

Saudi deficit halves after cutbacks

Saudi Arabia's budget deficit halved in the first six months of this year, following sweeping spending cuts and a stabilization in oil prices, the finance ministry said. The budget deficit dropped by 51 percent to 72 billion riyals ($19.2 billion) in the first half of 2017, the ministry announced. "This result reflects an improvement in the management of public finances as a result of economic reform introduced through Vision 2030," said Saad al-Shahrani, a high-ranking ministry official. It is the second budget report released by Riyadh since the authorities announced in May they would begin issuing the figures on a quarterly basis to boost transparency. The kingdom has regularly posted budget deficits since 2014, following a slump in oil prices.

Yemen moves to float currency

The Central Bank of Yemen has decided to float its currency, starting at the rate of 250 Yemeni rials to $1, after more than two years of civil war. In a statement to commercial banks, the Central Bank said the currency policy will be based on a floating exchange rate rather than the previous fixed rate. Yemen's economy received a devastating blow, as conflicts between President Abdu-Rabbu Mansour Hadi and Houthi rebels turned into a civil war in March 2015, when the Saudiled coalition militarily intervened to support Hadi. Hadi declared the southern port city of Aden as a temporary capital in the same month, after he escaped a house arrest by the Houthi rebels who controlled the capital Sanaa. The coalition forces imposed a blockade on all Yemeni ports which halted most exports and restricted imports.