*US market closed due to Labor Day*

Trump vows to sharply scale back US economic ties with China

President Donald Trump said he intends to curb the US economic relationship with China, contrasting himself with Joe Biden by threatening to punish any American companies that create jobs overseas and to forbid those that do business in China from winning federal contracts. We’ll manufacture our critical manufacturing supplies in the United States, we’ll create ‘made in America’ tax credits and bring our jobs back to the United States and we’ll impose tariffs on companies that desert America to create jobs in China and other countries, Trump said.

Slowing German industry output points to long recovery ahead

German manufacturers ramped up production for the third straight month, though the pace of growth slowed considerably in July. Industrial output rose 1.2%, less than forecast by economists. The increase was led by carmakers while machinery retreated. Investment-goods production still increased 2.1%. The Economy Ministry said Germany’s industry is back at nearly 90% of pre-crisis levels, and predicts that improved sentiment and declining short-time work will continue to drive the recovery.

UK house prices gain most since 2016 as tax cut fuels boom

UK house prices rose by the most in four years in August as buyers rushed to take advantage of a tax cut that is helping to bolster a post-lockdown spurt in property transactions. Average house prices rose 1.6% from July to a record average of 245,747 pounds (US$325,000), mortgage lender Halifax said. From a year earlier, prices gained 5.2%, the strongest since 2016. One-in-seven homes are selling in just a week, with the number more than doubling from a year ago.

China’s export strength continues as global demand rebounds

China’s exports continued to expand due to demand for medical goods, electronics, and the effects of major trading partners gradually resuming business activities. Exports rose 9.5% in dollar terms in August from a year earlier to US$235.3bn, the third-highest level on record, customs data showed. Both the value of shipments to the US and the bilateral trade surplus were at the highest levels since November 2018. China’s exports have defied expectations this year, growing significantly faster than global trade due to strong demand for Covid-related goods.

India palm imports drop from 10-month high on weak food demand

Palm oil imports by top buyer India probably fell from a 10-month high as a slow recovery of the food services industry curtailed demand for the world’s most-used vegetable oil. Inbound shipments fell 11% to 734,000 tons in August from a month earlier as traders and refiners cut back purchases after replenishing reserves in July. That compares with 852,534 tons in August 2019.

Taiwan exports surge to record amid huawei scramble for chips

Taiwan’s exports rose to a record in August, aided by suppliers rushing to ship as many components as possible to Huawei Technologies Co. before a US ban on sales to the company comes into effect next week. Overseas shipments from Taiwan increased 8.3% last month to a record high of US$31.2bn, according to a statement from Taiwan’s Ministry of Finance.

Oil extends drop after Saudi price cuts show demand concern

Oil extended its retreat below US$40 a barrel after Saudi Arabia cut pricing for October crude sales as demand stuck below pre-Covid levels. Brent crude for November settlement lost US$0.65 to US$42.01 per barrel

Source: Affin Hwang Research - 8 Sept 2020