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New York (CNN Business) Soaring mortgage rates and unaffordable home prices are worrisome signs for the broader housing market and economy. In another worrisome sign, housing starts and building permits for July both fell from June levels and missed economists' forecasts. But don't tell that to Home Depot. The home improvement retail giant reported record earnings and sales for its most recent quarter. Home Depot ( HD ) said Tuesday that overall revenue was up 6.5% from a year ago, to $43.8 billion. The company reported a net profit of $5.2 billion, or $5.05 a share. That topped Wall Street's forecasts, as professional contractors and the do-it-yourself crowd kept spending. The numbers were strong across the board. Sales at stores open at least a year, rose 5.4% from the same quarter in 2021 in the United States and 5.8% at all locations worldwide. The company also reiterated its earnings and outlook for the full year. What's next … [Read more...] about Record Home Depot sales show America’s housing market is still strong

Tencent plans to sell Meituan shares to placate domestic regulators and monetise an eight-year-old investment, four sources said. - A + A SHANGHAI (Aug 16): China's blue-chip index edged lower on Tuesday (Aug 16), on worries about Covid-19 flare-ups and slowing economic growth, although property stocks jumped on news of policy support. Meituan plunged 9%, after sources told Reuters that Tencent Holdings Ltd plans to sell all or the bulk of its US$24 billion (RM107.18 billion) stake in the food delivery giant. The news dragged down Hong Kong's main stock benchmark. The blue-chip CSI 300 Index fell 0.2%, while the Shanghai Composite Index gained 0.1%. The Hang Seng Index fell 1.1%, while the China Enterprises Index lost 1.3%. China's central bank cut key lending rates in a surprise move on Monday, as data showed Chinese economic activity and credit expansion slowed sharply in July. Analysts now expect banks to cut the loan prime rate next week. Other … [Read more...] about China stocks end a tad lower, hit by Covid concerns and dim economic outlook

- A + A BERLIN (Aug 16): German investor sentiment fell slightly in August on concerns that the rising cost of living will hit private consumption in Europe's largest economy, which is on the brink of recession. The ZEW economic research institute said on Tuesday its economic sentiment index fell to -55.3 points from -53.8 in July. A Reuters poll had pointed to an August reading of -53.8. "The still high inflation rates and the expected additional costs for heating and energy lead to a decrease in profit expectations for the private consumption sector," ZEW researcher Michael Schroeder said in a statement. "In contrast, the expectations for the financial sector are improving due to the supposed further increase in short-term interest rates," he added. The German economy stagnated in the second quarter, with the war in Ukraine, soaring energy prices, the pandemic and supply disruptions bringing it to the edge of a downturn. Inflation is running at 8.5%. Finance … [Read more...] about German investor morale dips on inflation angst, energy woes

Lawrence Wong - A + A SINGAPORE (Aug 16): Singapore’s next prime minister signaled that the wealthy may face more taxes, as the government seeks more inclusive growth in the city-state and looks for ways to shield the most vulnerable groups from the impact of high inflation. While the country’s income inequality based on the Gini coefficient has been narrowing, the government probably needs to “lean some more in the direction of more inclusive growth,” Lawrence Wong, 49, the country’s deputy prime minister, said in an interview with Bloomberg News Editor-in-Chief John Micklethwait on Monday. He was referring to an index developed by Italian statistician Corrado Gini in 1912. “Everybody pays some form of taxes but certainly the ones with greater means — the rich and the higher-income — will have to pay more,” Wong, who’s also the finance minister, said, reiterating a message he has communicated before. “It’s not only done through the taxation system, but we … [Read more...] about Wong signals Singapore’s rich may face more taxes

- A + A (Aug 16): Asian liquefied natural gas prices extended a rally to the highest level in five months as a global supply crunch shows no signs of easing. The Asian benchmark spot LNG price jumped above US$52 per million British thermal units on Monday, the highest level since early March when Russia’s invasion of Ukraine upended energy markets. Asian buyers are moving to procure supply for winter. Jera Co, Japan’s top LNG importer, purchased a number of spot shipments for delivery this winter via a tender late last week, according to traders with knowledge of the matter. There isn’t enough available LNG to cool off the breakneck rally in Asian prices, which are trading nearly three times higher than this time last year. Utilities around the world are competing for shipments for delivery this winter amid supply disruptions from Russia to the US. Shell Plc’s Prelude floating LNG production facility in Australia is slated to remain offline into next month due to … [Read more...] about Global supply crunch sends Asian gas prices to five-month high

- A + A (Aug 16): A heat wave in Sichuan is curbing hydropower generation in a growing threat to electricity supply and economic growth in one of China’s most-populous provinces. Some factories in the manufacturing hub in southwestern China are curbing production, and the extreme weather may also cut supplies of materials like polysilicon and lithium that are vital to the energy transition. High temperatures and drought are the worst on record, with the heat expected to continue for another week, according to the Sichuan Provincial Economic and Information Department. Water flows into hydropower reservoirs have dropped by 50% since the start of the month from average historical levels, just as the hot weather boosted power demand, it said on a government website. The drought is primarily a threat, at least at this stage, to power generation. That’s in contrast to Europe, where the shriveling Rhine River is risking the transit of fuel and other goods. Still, river … [Read more...] about China facing power supply threat from drought in Sichuan

Zara founder Amancio Ortega (Reuters filepix) - A + A LONDON/MADRID (Aug 16): Zara founder Amancio Ortega’s personal investment firm is on a quest to diversify one of the world’s biggest fortunes away from linen suits, pearl-beaded handbags and feathered sandals. Fuelled by proceeds from his fashion empire, the billionaire’s family office, Pontegadea, has gone on a deals spree that shows no sign of abating. In the past year, it Pontegadea, which oversees dividends that Ortega receives from the retailer he founded almost six decades ago, has been ramping up investments outside the industry that turned him into Spain’s richest person. As shares of Zara parent Inditex SA lost almost a third of their value in the past five years, the family office helped him amass the largest real estate portfolio among Europe’s super-rich and make some big bets in other areas — all without selling any stock. “Clients are increasingly mindful of the need to not to have all their … [Read more...] about Family office for US$54 bil Zara fortune goes on deal spree

- A + A (Aug 16): Consumers and businesses will continue to struggle as global policy makers battle to get inflation under control, the head of Australia’s largest pension fund told a media forum. “Our view is that there are some pretty tough times ahead,” Paul Schroder, chief executive officer of the A$260 billion (US$182 billion) AustralianSuper Pty, said on Tuesday. “We think we are in a continually tight environment. The question now is what is the rate of that tightening and is there a pivot around the corner,” Schroder told a Reuters event. “Inflation is the main, and could be the only, game and the policy settings that respond to it.” AustralianSuper, which has 2.7 million members, last month posted its first annual loss since the global financial crisis as rising inflation, geopolitical tensions and fears of an economic slowdown roiled markets. Despite the tough environment, the business has ambitious expansion plans, according to Schroder, who has been … [Read more...] about Tough times ahead, warns CEO of Australia’s largest pension fund

- A + A SINGAPORE (Aug 16): Thailand is looking to sign a long-term liquefied natural gas purchase agreement in a bid to lock in cheaper supply amid surging fuel costs. Electricity Generating Authority of Thailand released a tender to purchase 1.2 million tonnes of LNG per year for delivery between 2026 and 2040, according to traders with knowledge of the matter. Proposals are due Sept 22, with Egat slated to sign the deal with a supplier in December. The Southeast Asian nation is grappling with an energy crunch due to unstable gas supplies from Myanmar, as well as dwindling local sources. That forced Thailand to import LNG shipments from the spot market at the highest price ever paid by the nation. The government increased power prices for consumers due to the higher LNG costs, adding to inflation fears that threaten the nation’s economic growth. A long-term deal would help Thailand secure LNG shipments for over a decade at a more reasonable price. LNG spot … [Read more...] about Thailand looks to sign long-term LNG deal to ease energy crunch

- A + A (Aug 16): China’s surprise interest-rate cut has done little to allay concern over the property and Covid Zero-led slowdown, with economists and state media calling for additional stimulus. In a front-page report Tuesday, the central bank backed Financial News said Beijing should introduce new pro-growth policies at the appropriate time to keep growth within a reasonable range, citing Wen Bin, chief economist at China Minsheng Bank. The Securities Times said in a separate report the People’s Bank of China’s surprise rate cut may be the first in a series of policies to stabilize growth. Nomura Holdings Inc’s Lu Ting, who described Monday’s 10-basis point reduction as “too little, too late,” says even a likely cut next week in the loan prime rate, the de facto benchmark lending rate, won’t do much to boost credit demand. Economists from Standard Chartered Plc to UBS AG now see a greater chance of policy support in coming months, including more interest rate … [Read more...] about ‘Too little, too late’ China rate cut spurs call for more moves