The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 16 JULY, 2016

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2016-07-14

Item

Price

Unit

Fluctuation

Date

PSF

1015.17

USD/Ton

-0.07%

7/14/2016

VSF

2137.99

USD/Ton

0.92%

7/14/2016

ASF

1883.83

USD/Ton

0%

7/14/2016

Polyester POY

1031.62

USD/Ton

0%

7/14/2016

Nylon FDY

2197.80

USD/Ton

0.68%

7/14/2016

40D Spandex

4261.04

USD/Ton

0%

7/14/2016

Nylon DTY

2040.81

USD/Ton

0%

7/14/2016

Viscose Long Filament

2055.76

USD/Ton

0%

7/14/2016

Polyester DTY

1143.75

USD/Ton

0%

7/14/2016

Nylon POY

2407.11

USD/Ton

0%

7/14/2016

Acrylic Top 3D

5575.23

USD/Ton

0%

7/14/2016

Polyester FDY

1255.88

USD/Ton

0%

7/14/2016

30S Spun Rayon Yarn

2750.98

USD/Ton

2.22%

7/14/2016

32S Polyester Yarn

1667.04

USD/Ton

0%

7/14/2016

45S T/C Yarn

2399.64

USD/Ton

0%

7/14/2016

45S Polyester Yarn

2870.59

USD/Ton

1.59%

7/14/2016

T/C Yarn 65/35 32S

2167.90

USD/Ton

0%

7/14/2016

40S Rayon Yarn

1779.17

USD/Ton

0%

7/14/2016

T/R Yarn 65/35 32S

2093.14

USD/Ton

0%

7/14/2016

10S Denim Fabric

1.33

USD/Meter

0%

7/14/2016

32S Twill Fabric

0.80

USD/Meter

0.19%

7/14/2016

40S Combed Poplin

1.14

USD/Meter

0.13%

7/14/2016

30S Rayon Fabric

0.67

USD/Meter

0%

7/14/2016

45S T/C Fabric

0.66

USD/Meter

0%

7/14/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14951 USD dtd. 14/07/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

 

Merchandise exports up after 18 months in June

Merchandise exports rose in June after 18 months of decline, the longest fall in recent times. Exports rose 1.3 per cent to $22.57 billion, against $22.28 bn in the same month a year before, government data showed on Friday. As many as 24 items, including engineering, electronic goods, drugs & pharmaceuticals and carpets & handicrafts, of 30 major ones tracked by the commerce minsitry showed growth; 13 had done so in May. However, petroleum, gems & jewellery and apparel exports continued to show a decline in June. In May, exports had contracted by 0.8 per cent, to $22.17 bn, the rate of fall steadily decreasing for the past six months, barring April, when it spiked to 6.7 per cent. This had made economists forecast a rebound in June exports. The marginal export rise should also be seen in the context of the gloom in international markets. Chinese exports declined 4.8 per cent in June. The World Trade Organization had in April slashed its projection for global trade growth to 2.8 per cent in 2016, from the previous forecast of 3.9 per cent. Cumulative exports for these first three months (April to June) of the 2016-2017 financial year are $65.31 bn, a contraction of 2.1 per cent from the $66.69 bn for the comparable period in 2015-16. Pulled down by petroleum and gold, imports declined by 7.3 per cent to $30.66 bn in June as compared to the year-before period, when it was $33.11 bn. So, the trade deficit was $8.1 bn in the month, slightly up from the $6.3 bn in May.

The structure of imports showed large-scale domestic industrial recovery would take time. The Index of Industrial Production turned slightly upwards by 1.2 per cent in May, against a contraction of 1.3 per cent in April. Non-oil, non-gold import, broadly taken as an indicator of industrial demand, declined 1.1 per cent to $22.22 bn in June from $22.47 bn a year before. However, the rate of decline in June was lower than the 3.5 per cent to $21.37 bn in May. Import of crude declined 16.4 per cent to $7.5 bn in June. The fall was as much as 30 per cent in May. Gold imports continued to fall by a large margin for a fifth month, going down 38.5 per cent to $1.2 bn as compared to the $1.96 bn a year before. The fall had been as much as 60.5 per cent in April. Cumulative imports in the first three months (April-June) of 2016-17 reached $84.54 bn as compared to $98.91 bn the previous year. So, the cumulative trade deficit for the first quarter of 2016-17 was $19.23 bn, a fall of 67.5 per cent over the $32.22 bn in the corresponding period of the previous financial year. “The collapse in gold imports, continuing benefit from a lower oil import bill, coupled with the nascent turnaround in exports, suggest a high likelihood of a mild current account surplus in the first quarter, even if remittances moderate further,” felt Aditi Nayar of ICRA Ratings.

Export of engineering goods, which had made a comeback in May after remaining depressed for months, continued to rise in June. After the May rise of 2.2 per cent, it rose a marginal 0.9 per cent. However, the sector requires further support for improving of competitiveness in a difficult global market, said T S Bhasin, head of the Engineering Export Promotion Council. Also, the fall in drugs and pharmaceutical exports was arrested, though up only 0.07 per cent at $1.41 bn, after the 14.2 per cent fall in May. And, electronic goods rose almost 10 per cent in June, to $522 million.

SOURCE: The Business Standard

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Ficci seeks consensus on GST rate for textile sector

There is a need for consensus on GST rate for the textiles sector, rationalisation of duty on man-made fibers and expediting the India-European Union (EU) free trade agreement, industry body Ficci urged the government today. A delegation led by Ficci President Harshavardhan Neotia today met newly appointed Textiles Minister Smriti Irani to present their key concerns related to the textiles sector, it said in a statement. The delegation requested for the need for arriving at a consensus for GST rate for the textiles sector, rationalisation of duty on man-made fibers and expediting the India EU FTA, it added. The statement added that Irani was receptive to the idea of having a consensus on GST rate for the textile industry and also the need for greater market access for the Indian garment exporters in EU under the FTA.

SOURCE: The Money Control

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CCI should sell cotton to textile mills: SISPA

The South India Spinners Association has appealed to the Central Government to ask Cotton Corporation of India to sell cotton only to textile mills directly. President of the association C. Varadarajan and its secretary K. Rangarajan met the Union Textile Minister Smrithi Irani and officials in New Delhi on Thursday. According to a press release from the association, cotton prices have shot up to Rs. 50,000 a candy from Rs. 35,000 in April this year. Textile mills have no option but to increase yarn prices and are unable to sell yarn. Many mills have stocks and have reduced production or brought down the number of shifts. They said that the main reason for the spiralling prices was CCI selling cotton to multi national companies and large buyers. The CCI should sell cotton only to the domestic textile mills so that prices come down, they said.

SOURCE: The Hindu

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GST: BJP-Cong talks make little headway

Discussions between the BJP-led government and the principal Opposition party, the Congress, to end the impasse over the Constitution Amendment Bill for goods and services tax remained inconclusive. Finance Minister Arun Jaitley and Parliamentary Affairs Minister Ananth Kumar met the Leader of Opposition in Rajya Sabha, Ghulam Nabi Azad, and the Congress’ deputy leader Anand Sharma to reach a consensus for the smooth passage of the Bill during the Monsoon Session of Parliament that starts on Monday. After the meeting, a non-committal Congress leadership said it will continue to hear what the Centre has to say and also hold consultations with its allies. The government, however, remained confident of passing the Bill during this session which ends on August 12. However, issues such as the political crisis in Arunachal Pradesh are expected to disrupt the Centre’s truce efforts. The all-party meeting convened by Speaker Sumitra Mahajan on Sunday may assess viewpoints of various parties on the list of business, including the GST Bill. “We are trying to build consensus on the GST. We have discussed all the points. Once the session starts, we will meet again after discussing the issue within our respective parties,” Jaitley said after the meeting. Azad said there was in-depth discussion on the Bill. “We gave our point of view, our apprehensions and suggestions, they gave theirs. We will get back to our leadership and vice versa before we meet again,” he said. Sources said the Bill will be listed for discussion only by the middle of next week, provided there is consensus between the two parties. “A decision to put the Bill for voting will be a last ditch attempt. The effort right now is try to reach a consensus,” said a source.

SOURCE: The Hindu Business Line

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India's biz optimism rank falls, GST Bill may help: report

After staying on top for two quarters, India slipped to the third position globally on the scale of business optimism because of delays in key reforms like the GST and bad loans facing state-owned banks, says a report. According to the latest Grant Thornton International Business Report (IBR), India ranked third during the April- June quarter of 2016. “Delays in key reforms like GST, non-resolution of tax disputes, banking issues due to NPAs and need for significant recapitalisation of public sector banks are some of biggest concerns of Corporate India that have collectively impacted the business confidence affecting the overall business optimism in the country,” the report said. Moreover, growth in employment expectations dropped to second position during this period from the top rank in the previous quarter (January-March this year), while the optimism further slipped to fourth place in profitability expectations from third. “This is a clear signal that while there is optimism in the market and great business opportunity in India, the issue that is bothering investors is the slow progress on key reforms, simplification of tedious government processes and regulatory uncertainties which is impacting India’s ranking,” Harish HV, Partner – India Leadership team, Grant Thornton India LLP said. “The passing of GST bill which we hope will happen in the current parliament session should reverse this trend,” he added. India however, continues to top the chart on expectations of increasing revenue as 96 per cent of the respondents within the survey have voted in favour of increasing revenue. While the business confidence in India has plummeted, there is a tremendous rise in the optimism for an increase in exports. According to the survey, 35 per cent of respondents expect a rise in exports compared to 13 per cent in the last quarter. The country, however, continues to rank number 2 in citing regulations and red tape as a constraint on growth for two consecutive quarters.

SOURCE: The Business Standard

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India against ‘early harvest’ of RCEP pact

Even as the 16-nation RCEP (Regional Comprehensive Economic Partnership) ministerial in Laos on August 5 will mainly focus on liberalisation in goods trade, India has made it clear that it doesn’t favour an “early harvest”, a person aware of the developments told FE. This means agreements on all the three pillars of negotiations — goods, services and investment — can be implemented only as a package, not one at a time. So even if a consensus is reached early on goods (which are what most nations want), it cannot be enforced in isolation; New Delhi will still press for a successful conclusion of talks in services and investments as well, so that accords on all the three pillars can be put to effect simultaneously.

India has already shown its willingness to further sweeten its concessions on goods from the initial offers, provided it gets commensurately attractive offers from others in services and investments. A meeting of the trade negotiating committee will be held on July 18-19 in Jakarta, which will serve to address differences among members and also set the stage for any changes to initial offers on goods at the Laos ministerial. It is also expected that some Asean nations, which are yet to submit their initial offers on goods trade, will do so at Laos.  “India’s goods offer may not necessarily be very ambitious (offer on tariff reduction may not be very drastic) because in services and investments, other countries are not committing much beyond their autonomous policy position,” said the source. However, some more concessions on goods from the initial position can’t be ruled out if negotiations move in a positive direction, the source added. Initially, India had offered to abolish 80% of tariff lines for 10 Asean members for goods imports, 65% of tariff lines for Japan and South Korea, and 42.5% for China. RCEP consists of 10 Asean members and their six free trade agreement partners, such as India, China, Japan, Korea, Australia and New Zealand. The scrapping of tariff lines means import duties on specified items would be cut to zero over a mutually agreed-upon time frame. India is keen on services, as they account for over a half of its gross domestic product.

Recently, chief economic adviser Arvind Subramanian argued that India cannot get a sustained 8% expansion without significant export growth. Not just China and other Asian tiger economies, even India’s own high-growth years saw 24%-plus export growth. So trade pacts could be a significant part of India’s exports strategy. The commerce ministry has already held talks with the external affairs ministry and apprised the latter of its position, said one of the sources. Ram Upendra Das, professor at the Research and Information System for Developing Countries, said: “Insisting on ‘no early harvest’ is a correct move. Due to the inherent dynamic economic implications on inter-linkages among trade in goods, trade in services and investments, RCEP should be concluded as a ‘single undertaking’. Otherwise, the fullest gains from economic complementarities emanating from the RCEP deal would not be tapped.” However, he asked: “Why goods first, why not services?” Das said that care has to be taken to ensure that mutual recognition agreement in services is signed before sealing the final deal. Only then services trade can flourish unhindered.

SOURCE: The Financial Express

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Asean-India trade volume low despite FTA: AIBC

Asean and India can deepen and broaden ties in the healthcare, digital economy, logistics and small and medium enterprises space. Asean-India Business Council co-chair Datuk Ramesh Kodammal said the trade volume remains low compared to other Asean trade partners. "This could be due to the lack of awareness of the opportunitied and benefits under the three core agreements," he said in a media briefing. He was referring to the Trade in Goods Agreement, Trade in Services Agreement and Investment Agreement. Despite substantial elimination of import duties the trade volume remains low. Asean-India trade averaged 2.7 per cent of Asean global trade between 2012 and 2015. "It is a far cry from the target trade value of US$100 billion which was set by the leaders of both economic regions." He said the private sector had yet to fully tap the economic potential since the FTA was implemented in 2010. The AIBC is organising the ASEAN-India Business Leadership Conclave 2016 to highlight opportunities in healthcare, digital economy, logistics and small and SMEs. With its "Make in India" initiative in place, India offers investment opportunities to the Asean members. The AIBC was reactivated in 2014.

SOURCE: The New Straits Times

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Trust deficit, political difficulties ruin India & China's grand trans-Nathula trade plans

Deep in the Himalayas some three miles above sea level, Indian security forces and Chinese soldiers gaze at each other through a barbed-wire fence while trucks carrying goods from both sides pass through a large iron gate that marks the border.  The Nathula Pass, once part of the ancient Silk Road and later sealed after a 1962 war, was reopened in 2006 as a symbol of improved relations between Asian neighbors that account for more than a third of the world's population. A decade later, however, it perhaps better reflects a trust deficit: the pass even does not account for one percent of overall bilateral commerce.  "Business is very slow here," said Riku Doma, 42, a shopkeeper at a market close to Nathula who sells jackets, blankets and shoes in India. "I'm just managing to survive."  Large sections of the road linking India's state of Sikkim with Tibet are narrow and littered with potholes. The area has no warehouses to store goods nor any hotels. Only 56 low-end items can be traded, like tea, bicycles and canned food. And for about half the year, heavy snowfall forces authorities to close the border altogether.  The connectivity problems in the Himalayas, long a natural land barrier between India and China, extend to sea routes that account for the bulk of trade between the nations. A lack of quality roads around ports, insufficient warehouses, high tariffs and visa restrictions have contributed to a lopsided and lackluster trade relationship. To help ease trade barriers, negotiators are meeting next week.

In the last four years, commerce between the nations has failed to match its peak of $79 billion in 2011, according to data compiled by Bloomberg. China's trade with the U.S. has grown 21 percent in that time to $627 billion. Moreover, India has a trade deficit with China of nearly $50 billion, its largest with any country. Singapore, with a population about 240 times smaller than India, sells twice as many goods to China each year.  "Both sides are yet to tap their trade potential," said Ravi Shekhar Vishal, an assistant professor at Sikkim University who co-authored a research paper on Nathula trade. "That's primarily because the trust between them is fragile and superficial."

Politically Difficult

The large trade deficit makes any future opening politically difficult for Prime Minister Narendra Modi. Lawmakers keep urging him to take protectionist measures against China, and the gap routinely comes up in Modi's meetings with President Xi Jinping. Even so, Indian policy makers realize that little can be done in the short term. For one, both nations are members of the World Trade Organization, which doesn't allow governments to discriminate against specific countries in setting trade policy. A bigger problem, however, is India's own roads, ports and railways. In 2014 it cost $1,332 on average to export a container from India, compared with $823 to ship from China. "The solution is the need to increase India's domestic competitiveness," said Arvind Mehta, additional secretary of India's Ministry of Commerce and Industry. "I am competitive at the factory gate, not at the port. To win the game I need to be competitive at ports."

Miniscule Investment

One way to help eliminate the trade deficit is to get China's manufacturers to start making goods in India. So far, Chinese foreign direct investment into India has been miniscule: $1.36 billion over the past 16 years. Even the Regional Comprehensive Economic Partnership, a 16-country trade deal that aims to unify a market of more than 3 billion people, has problems. India wants moderate import tariff on goods rather than complete elimination of duties, while China is pushing to increase number of products that will attract zero duty. India is also pushing for easier access to overseas markets for its service professionals, "and we are going to see how much appetite our RCEP partners have," Mehta, one of the negotiators, said in June. "If we don't see enough of appetite, then don't expect it to be a one-way street." Due to an impression that India is creating obstacles, the chance of a breakthrough isn't very high, said Amitendu Palit, a senior research fellow at the Institute of South Asian Studies at the National University of Singapore. RCEP members will hold a two-day meet starting Monday in Jakarta. All in all, the signs don't bode well for the two-day meet starting Monday in Jakarta. "It's just not convenient to do business between the two nations," said Huo Jianguo, senior researcher at the Chinese Academy of International Trade and Economic Cooperation. "There's a lack of trust between the two peoples."

SOURCE: The Economic Times

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Post-Brexit poll, India- EU FTA teams meet for first time

Chief negotiators of the proposed India-EU Bilateral Trade & Investment Agreement (BTIA) met on Friday, for the first time after Britain’s decision to exit the EU, to discuss the status of negotiations on the free trade agreement (FTA). “The language of Indian negotiations reflected the concerns of Indian industries in some sectors and expressed willingness to address outstanding issues as an integral part of the negotiations,” the commerce ministry said in a statement. It added that India is committed to proceed with the negotiations “with a hope to conclude the FTA as early as possible”. The meeting was important as it came barely a week after Britain’s business minister Sajid Javid called on India’s commerce and industry minister Nirmala Sitharaman and discussed the possibility of a trade pact between the two countries, post-Brexit. A source said a necessary re-calibration of strategy, following the Brexit reality, was briefly touched upon during the meeting. Earlier differences were also discussed but serious negotiations are yet to start. Differences exist on broad contours of the proposed FTA, including the EU’s insistence on India cut import duties on auto parts and wine and strengthen intellectual property rights regime, and Indian demand for more liberalisation in services and greater flexibility on data privacy.

India also feels the flexibility shown by it in further opening up to foreign investments in more than a dozen sectors should be considered positively by the EU. On Wednesday, Sitharaman had said the offers for the proposed FTA “have to be tempered because Britain is now out of the EU”. However, she added that the FTA with the EU “won’t be worse for us”. As many as 16 rounds of negotiations took place between the two sides for the proposed FTA between 2007 and 2013, but the negotiations were stuck after that. The EU – including the UK – accounts for 17% of India’s goods exports in 2015-16, while Britain alone accounts for 3.4%. The UK contributes to over half of India’s software services exports to the EU, 23% of key engineering and electrical goods exports and 16% of jewellery, precious metal and stones exports.

SOURCE: The Financial Express

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Global Crude oil price of Indian Basket was US$ 43.79 per bbl on 14.07.2016

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 43.79 per barrel (bbl) on 14.07.2016. This was lower than the price of US$ 44.10 per bbl on previous publishing day of 13.07.2016.

In rupee terms, the price of Indian Basket decreased to Rs. 2929.97 per bbl on 14.07.2016 as compared to Rs. 2963.60 per bbl on 13.07.2016. Rupee closed stronger at Rs. 66.91 per US$ on 14.07.2016 as against Rs. 67.20 per US$ on 13.07.2016. The table below gives details in this regard:

Particulars

Unit

Price on July 14, 2016 (Previous trading day i.e. 13.07.2016)

Pricing Fortnight for 01.07.2016

(June 14, 2016 to June 28, 2016)

Crude Oil (Indian Basket)

($/bbl)

43.79             (44.10)

46.34

(Rs/bbl

2929.97       (2963.60)

3127.02

Exchange Rate

(Rs/$)

66.91             (67.20)

67.48

 

Source: PIB

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China updates textile products' standard list

China's ministry of industry and information technology has recently released announcement No. 17 of 2016, which published updates to a number of textile and apparel industry standards. The standards include some product standards for apparel and textile accessories such as FZ/T 81001-2016 for pajamas, FZ/T 81015-2016 for wedding gown and full dress, FZ/T 73002-2016 for knitted caps, FZ/T 81012-2016 for woven scarf and shawl, etc. The updates include some textile test method standards such as FZ/T 01030-2016 for 'Knitted fabric and elastic woven fabric – Determination of bursting strength and bursting distension-Bursting method', FZ/T 01031-2016 for 'Knitted fabric and elastic woven fabric – Determination of maximum force to seam rupture and elongation – the grab tensile method', FZ/T 01131-2016 for 'Textiles-Quantitative chemical analysis-Mixtures of natural cellulose fibres and certain regenerated cellulose fibres (hydrochloric acid method)', FZ/T 80008-2016 for 'Terms relating to woven caps', and FZ/T 80010-2016 for 'Clothes –survey method for human body head girth and size designation for headwear'.

SOURCE: Fibre2fashion

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Substantial attendance at Myanmar's textile show

Myanmar's leading textile and garment show, the 2016 Myanmar International Textile & Garment Industry Exhibition (MTG 2016), held from June 24-27, 2016, saw a substantial attendance of 9,812 professional visitors. Trade visitors including potential investors came from China, Thailand, Korea, Japan, India, Singapore, Vietnam, Taiwan, Germany, Indonesia, Malaysia, and France. MTG 2016, organised by Yorkers Trade & Marketing Service Co Ltd, hosted 160 exhibitors from 16 countries displaying a broad range of their latest products and technologies at 320 booths. The event served as an important trading platform for textile companies from around the world. “The exhibition is beyond my expectation and I am so happy that I find the machine I want at a reasonable price,” said Thet Htoo Min, director of Special One Construction Co Ltd, who visited the fair. “We met many professional buyers here and received many orders from them. It is certainly a best platform for us to expand our business,” said Tommy Lin, representative of Dotect Needle Co Ltd which exhibited their products. Way Liang, representative of Myanmar Branch of Asia Holly Engineering (Myanmar) Co Ltd, said “The result of exhibition is beyond this 4 days event, and will keep benefiting the participating companies by continuous customer interaction and tracking orders.”

Alongside the exhibition, two international organisations were invited to share their insights on apparel industry in Myanmar. Smart Myanmar conducted a seminar on 'Introduction to SMART Myanmar's factory services', while Control Union's seminar was on 'Certification demands on sustainability'. Myanmar's garment industry is currently in expansion mode. Under the Myanmar Garment Industry 10-year Strategy (2015-2024), the country aims to increase its apparel exports to $10 billion per annum by 2024, up from $1.6 billion last year.

SOURCE: Fibre2fashion

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S. Korean, EU leaders share need to revise bilateral FTA

The leaders of South Korea and the European Union (EU) on Friday "shared the view" that there is a need to revise the bilateral free trade agreement (FTA) in the wake of Britain's recent decision to leave the 28-member bloc, Seoul's presidential office Cheong Wa Dae said. President Park Geun-hye, European Commission President Jean-Claude Juncker and European Council President Donald Tusk held talks on the sidelines of the Asia-Europe Meeting (ASEM) summit in Ulaanbaatar. During the meeting, they shared the view that the two sides should work together to create a "new turning point" to expand mutual trade through a revision of the bilateral FTA, which was signed in 2010 and provisionally took effect in 2011. "In consideration of the situational changes" over the last five years since the FTA took effect, the revision process should proceed, the leaders noted, according to a press release from the presidential office.

President Park Geun-hye (C), European Commission President Jean-Claude Juncker (2nd From R) and European Council President Donald Tusk (2nd From L) pose before their talks on the sidelines of the Asia-Europe Meeting (ASEM) summit in Ulaanbaatar, Mongolia, on July 15, 2016. (Yonhap) President Park Geun-hye (C), European Commission President Jean-Claude Juncker (2nd From R) and European Council President Donald Tusk (2nd From L) pose before their talks on the sidelines of the Asia-Europe Meeting (ASEM) summit in Ulaanbaatar, Mongolia, on July 15, 2016. During the talks, Park stressed the need for the two sides to work closely together, both on the bilateral and multilateral levels, to bolster free trade in the world. She then expressed concerns that Britain's exit from the EU could trigger "isolationism and protectionism." Park also called on EU leaders to strengthen bilateral cooperation in tackling various global challenges so as to promote peace and prosperity, while expressing confidence that the EU would continue to develop into a more solid, integrated institution even after Britain's departure. Juncker said that Britain's exit from the EU would not have any impact on South Korea-EU relations, and that the bloc would continue to strengthen bilateral cooperation in various areas as a "trustworthy" partner.

The South Korean president also used the meeting to underscore that the international community should continue to pressure Pyongyang to abandon its nuclear and missile programs and improve its woeful human rights situation. She reiterated the need to create a situation in which Pyongyang has no choice but to opt for denuclearization through the faithful enforcement of international and standalone sanctions against the provocative regime. It was Park's second summit with the current EU leadership, which came into office in 2014. Earlier in the day, Park also held a separate one-on-one meeting with Laotian Prime Minister Thongloun Sisoulith. She discussed ways to enhance practical cooperation with the Southeast Asian nation, which is this year's rotating chair of the 10-member Association of Southeast Asian Nations (ASEAN).

Park called for "active" cooperation from Laos in ensuring that the ASEAN as a whole delivers a clear message to Pyongyang against its development of nuclear arms and provocative behavior. She also appreciated Laos' support of the vision of a nuclear-free Korean Peninsula and its faithful enforcement of international sanctions on the North. The president expressed her wish to strengthen high-level personnel exchanges and "strategic communication" between the countries, noting that the two countries have recently deepened defense cooperation through a set of initiatives, including one to install defense attache offices in each other's countries. It was the first summit between the two leaders since a new Laotian government took power in April. Soon after the talks with the Laotian premier, the president held separate talks with Vietnamese Prime Minister Nguyen Xuan Phuc, who also took office in April. The leaders discussed ways to bolster their cooperation in various industrial sectors such as new energy, information and communications technologies (ICT) and health care in addition to the manufacturing sector. They also exchanged views on how to strengthen their strategic partnership ahead of the 25th anniversary next year of the establishment of their countries' diplomatic ties.

Sharing the understanding that Pyongyang's nuclear and missile programs pose a great threat to peace and stability not only on the Korean Peninsula but also in the world, the two sides agreed to work closely together to address the security threats. On the first day of the ASEM summit, Park also briefly met with top officials from Japan, Russia, Cambodia, Bulgaria, the Czech Republic and Croatia. During their talks at a gala dinner, Park and Japanese Prime Minister Shinzo Abe agreed to try to reinforce international cooperation to pressure Pyongyang to abandon its nuclear and missile programs. At the dinner gathering, Park also met with Russian Prime Minister Dmitry Medvedev. Park voiced her wish to further strengthen the two countries' economic ties, particularly on the occasion of the East Russia Economic Forum slated to take place in Russia in September. After the first round of the ASEM summit, Park and other leaders watched Mongolia's annual "Naadam Festival." The midsummer festival is also dubbed the "three games of men" -- horse racing, wrestling and archery. Meanwhile, Park plans to explain Seoul's position on North Korea's human rights violations, its security threats and her push to lay the groundwork for reunification during a free debate session at the ASEM summit on Saturday, her office said.

SOURCE: the Yonhap News Agency

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China's growth steadies as GDP rises to 6.7%

China's growth stabilised as lending and consumer spending picked up, suggesting the economy is responding to stepped up policy support. Gross domestic product (GDP) rose 6.7 per cent in the second quarter from a year earlier, compared with 6.6 per cent seen by economists Bloomberg surveyed and in line with the government's growth target of at least 6.5 per cent for the full year. Industrial output and retail data for June beat estimates, investment slowed, and a report from the central bank showed the broadest measure of new credit beat all 29 analyst forecasts. A credit surge and housing recovery this year have propped up growth, while raising questions about the sustainability of the debt-fuelled expansion. Friday's data blast suggests the People's Bank of China (PBOC) doesn't need to boost support for the world's second-largest economy after holding the benchmark interest rate at a record low since October and cutting the required-reserve ratio for big banks in February. "The Chinese economy remains stable," Larry Hu, head of China economics at Macquarie Securities in Hong Kong, wrote in a note. "It makes no sense to ease policy at this moment, given the current growth momentum."

Bloomberg's monthly GDP tracker increased for a second month, indicating a 7.13 per cent pace of expansion in June. Nomura Holdings raised its full-year growth estimate to 6.5 per cent from 6 per cent, citing the stronger-than-expected second quarter. Chief China economist Zhao Yang also reduced his forecast for the number of reserve-ratio cuts this year to two from three while maintaining his estimate the PBOC will lower the main rate by 25 basis points. The Shanghai Composite Index closed near a three-month high and posted a third straight weekly advance. The yuan advanced. Consumption contributed 73.4 per cent to economic growth in the first half, up from about 60 per cent a year earlier, the statistics authority said. "Consumer spending has proven more resilient," said Frederic Neumann, co-head of Asian economic research at HSBC Holdings Plc in Hong Kong. "China is also weathering the external drag better than feared, with generous stimulus oiling the wheels of the domestic economy." June readings show the economy gained momentum as the quarter went on. Industrial production climbed 6.2 per cent in June from a year earlier, compared to 6 per cent in May and economists' estimates for 5.9 per cent. Retail sales rose 10.6 per cent, compared to the median estimate of 9.9 per cent. Fixed-asset investment slowed to 9 per cent in the January-June period versus economists' expectation for 9.4 per cent. Aggregate financing was 1.63 trillion yuan ($244 billion) in June, compared with an estimate for 1.1 trillion yuan in a Bloomberg survey. China's Communist Party leaders plan to double the size of the economy by 2020, and maintain a minimum average growth level of 6.5 per cent through 2020. To achieve those targets, they're seeking to stoke new growth drivers based on innovation and services, as they root out overcapacity in traditional sectors like coal and steel. But with private investment growth stalling, the state is having to fall back on its old playbook of revving up investment. Meantime, the pace of property development investment eased after policy makers sought to rein in price growth in the nation's biggest cities, while recent floods pose headwinds. The economic environment remains "complex and grim," a spokesman for the National Bureau of Statistics said at a briefing after the data release. Bright spots include a steady labour market, with the survey-based jobless rate for big cities stable at about 5.2 per cent, and faster growth in the technology industry, he said, adding that easing factory-gate deflation has helped company profits.

The GDP deflator - the difference between the headline growth rate, adjusted for inflation, and unadjusted nominal growth - rose, adding to evidence that prices have turned a corner after four years of producer-price deflation. The People's Bank of China has held its lending rate at a record low 4.35 per cent since October and cut its reserve-requirement ratio for major banks, with the latest reduction in February to 17 per cent. For companies with renewed pricing power, a higher GDP deflator means lower real borrowing costs. "China hasn't collapsed," Bill Adams, a senior international economist at PNC Financial Services Group in Pittsburgh, wrote in a recent note. "While its economy continues to face daunting challenges in the transition away from export- and investment-led growth, the doomsday predictions for the Chinese economy look like stopped clocks."

SOURCE: The Business Standard

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