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China's industrial profits plunge 27%, marking this year's steepest fall China's industrial profits plunged in September, recording the steepest monthly decline of the year, official data showed on Sunday, as policymakers ramp up stimulus to revitalise economic growth. Profits in September fell 27.1% from a year earlier, following a 17.8% fall in August, while earnings slipped 3.5% in the first nine months versus a 0.5% rise in the January-August period, according to the National Bureau of Statistics (NBS). The slump in industrial profits in September was due to factors such as insufficient demand and a sharper decline in producer prices, and a significantly higher base of comparison since August. China's economy grew at the slowest pace since early 2023 in the third quarter, with the crisis-hit property sector showing few signs of steadying as Beijing races to revitalise growth. https://lnkd.in/gjEzaUfp 

Unilever to revamp Indonesia operations amid revenue drop Unilever will make drastic changes in Indonesia, its finance chief said as consumers boycott multinational brands in response to the war in Gaza and exacerbate the business' existing distribution problems.   Unilever, which makes Dove soap, Knorr stock cubes and Ben & Jerry's ice cream, first said in February that fourth-quarter sales growth in Southeast Asia had been hurt by shoppers in Indonesia boycotting brands of multinational companies in response to the geopolitical situation in the Middle East. Speaking to analysts after delivering slightly better-than-expected quarterly sales, Chief Financial Officer Fernando Fernandez said the company would aim to make its brands "more contemporary" given the "significant societal change" going on. He said he expected to see an improvement in the next six months.   Unilever's Indonesia unit reported an 18% revenue drop in the third-quarter, driven by a decline in volumes. CFO Fernandez said a revamp of the distribution system was underway to stabilise prices and the group's efforts were already yielding some results.   https://lnkd.in/gt7_JU6v 

The largest textile company in Southeast Asia is declared bankrupt Textile company PT Sri Rejeki Isman Tbk or Sritex is declared bankrupt. PT Sri Rejeki Isman Tbk, PT Sinar Pantja Djaja, PT Bitratex Industries, and PT Primayudha Mandirijaya are deemed negligent in fulfilling their payment obligations to the applicants based on the homologation decision. Sritex was founded by HM Lukminto in Pasar Klewer, Solo, Central Java, in 1966. Two years later, the company opened its first printing factory producing white and colored fabrics in Solo. The growing business encouraged Lukminto to move his business to Sukoharjo by building a factory. In 1982, the company began building its first weaving factory. A decade later, in 1992, Sritex expanded its factory with four production lines under one roof. In the same year, the factory was inaugurated by President Soeharto along with the expansion of 275 multi-industry group businesses centered in Sukoharjo. Sritex's name soared when it signed a contract to manufacture uniforms for the North Atlantic Treaty Organization (NATO) and the German army in 1994. Until 1998, the number of uniform orders reached around one million peach stells (PS). The same contract was also made by PT Sritex with the British Armed Forces which ordered 400,000 PS of NATO uniforms. The company also managed to multiply its growth up to eight times compared to when it was first integrated in 1992. In total, until now, Sritex products have been used by military forces in more than 30 countries. Not only the military, Sritex products are also used by world fashion players, such as Guess and H&M. https://lnkd.in/gmPu3mVU 

Boeing’s crisis is getting worse Cash-starved Boeing, contending with massive financial losses from a crippling strike and years of operational and safety problems, is turning to major banks and Wall Street to raise tens of billions of dollars in cash. In a regulatory filing, the company announced plans to borrow $10 billion from a consortium of banks. It also separately announced plans to raise $25 billion by selling stock and debt. The $10 billion borrowing plans would be included in the $25 billion that Boeing filed to raise. The company’s debt surged in the last six years as Boeing reported core operating losses of more than $33 billion. Its commercial airplane production has ground to a near halt by a month-long strike by 33,000 members of the International Association of Machinists. Talks between Boeing and IAM broke down last week with no new negotiations planned. On Friday, Boeing’s new CEO Kelly Ortberg announced plans to cut 10% of its worldwide staff of 171,000 workers. Boeing’s credit rating has plunged to the lowest investment-grade level – just above “junk bond” status – and major credit rating agencies have warned Boeing is in danger of being downgraded to junk. That would raise its cost of borrowing. Boeing’s long-term debt has climbed to $53 billion at the end of June from $10.7 billion at the end of March 2019, when a second fatal crash of the 737 Max led to a 20-month grounding of that plane, the company’s best-selling aircraft. https://lnkd.in/gkPAWD9C 

Live maps showing how each container ship class is impacted by the Red Sea crisis. Source: Alphaliner

U.S. deficit tops USD 1.8 trillion in 2024 as interest on debt surpasses trillion-dollar mark The Biden administration rang up a budget deficit topping USD 1.8 trillion in fiscal 2024, up more than 8% from the previous year. Government debt has swelled to USD 35.7 trillion, an increase of USD 2.3 trillion from the end of fiscal 2023. Interest expense for the year totaled USD 1.16 trillion, the first time that figure has topped the trillion-dollar level. The Congressional Budget Office expects deficits to continue to rise, hitting USD 2.8 trillion by 2034. On the debt side, the office expects it to rise from the current level near 100% of GDP to 122% in 2034. https://lnkd.in/ghHFGp8Y 

China's Delivery Drivers Face Growing Strain Amid Economic Slowdown The food delivery industry in China, the world's largest by revenue, has experienced significant strain. Delivery workers face immense pressure, with many reaching breaking points due to shrinking pay and worsening working conditions. During the pandemic, the industry saw a surge in demand, but China's slowing economy has led to reduced consumer spending, forcing workers to take more jobs at lower commissions. Two dominant platforms, Meituan and Ele.me, control the industry, allowing them to dictate unfavorable contractual terms for drivers, who often work long hours under dangerous conditions to meet strict delivery deadlines. This duopoly limits workers' bargaining power and exacerbates their struggles as wages drop. Despite the growth of the food delivery market, driver earnings have decreased by around 1,000 yuan over the past five years, even as they work longer hours. Fierce competition among workers and declining consumer demand compound the issue, with many riders forced to cut corners for income. Riders' frustrations are evident, with reports of public meltdowns and confrontations making headlines. Although platforms once offered competitive wages, they are now shifting the burden of cost-cutting measures onto drivers, who face fines, lost bonuses, and freelance-like conditions that remove labor protections. While some workers, like 35-year-old Yang, acknowledge the job's flexibility, the overall situation for delivery drivers remains dire, with increasing incidents of accidents and dangerous behavior tied to the intense working environment. https://lnkd.in/eYyBYuEP 

Prabowo Launches Danantara, Setting the Stage for Indonesia's Investment Super-Holding President Prabowo Subianto inaugurated the Danantara Investment Management Agency (Daya Anagata Nusantara). The newly established agency will handle government investment assets outside the state budget (APBN). “Danantara is tasked with managing investments beyond the APBN. It will gradually assume control of separated government assets, starting with its formation and the drafting of necessary laws,” said Muliaman, former head of the Financial Services Authority (OJK). He said that Danantara is expected to lay the groundwork for a future super-holding entity for state-owned enterprises (SOEs) and indicated a potential merger with the Indonesia Investment Authority (INA). Unlike the SOE Ministry, Danantara’s focus will be solely on investment management. https://lnkd.in/embe6gb8

Boxports struggle as vessel bunching approaches covid levels Container ports are experiencing chaotic schedules not seen since the days of covid. Vessel bunching, where multiple vessels sail on the same week on the same service, has increased sharply this year, according to a new report from Danish consultancy Sea-Intelligence. On Asia-Europe in particular, this is essentially back to the same level as during the pandemic thanks to the ongoing Red Sea shipping crisis. Schedule delays can lead to the issue of vessel bunching. According to Sea-Intelligence, vessel bunching is when a carrier has multiple vessels departing on the same service, within the same week. Higher vessel bunching creates larger pressure on ports and terminals and can lead to congestion at port and subsequently a crunch on the use of truck, rail, and barge capacity. Sea-Intelligence warned that there was no indication that the pressure on ports is about to be alleviated. Liner shipping has had to face supply chain kinks on an unprecedented scale – bar the covid era – during 2024. The Houthis of Yemen have largely cut off container shipping from transiting the Suez Canal leading to a mass rerouting of boxships around the Cape of Good Hope. This soaking up of tonnage has inevitably brought vessel bunching and spikes in congestion around the world, not helped by plenty of strike action from supply chain workers. Singapore’s port, for instance, has seen about 90% of container vessels arriving off-schedule, compared to an average of about 77% in 2023. In addition, vessel port stays at PSA have also increased by 22% compared to the same period last year. Top management at PSA Singapore has had to pull many levers to ensure its role in global trade remains well-oiled and smooth. Back in May, to staunch the severe congestion building, PSA Singapore reactivated older berths and yards that have previously been decanted at Keppel Terminal, while also adding significant manpower to battle the box build-up. Source: LFS Group Newsletter

Prabowo Subianto's inauguration was marked by massive public celebrations across the country, symbolizing his rise from a military figure to the leader of Southeast Asia's largest economy.