Foreign traders, please check: Review and Outlook of One Week's Hot News (5.27-6.2)

01 Important Event

German and French Finance Ministers: There are only losers in the trade war

The German and French finance ministers, who are attending the G7 finance ministers and central bank governors meeting in the northern Italian city of Stresa, stated that a trade war is not in the interest of either party and will not produce a winner, only a loser. German Finance Minister Lindner told media reporters that EU member states must not weaken free and fair global trade as a whole, because "trade wars only have losers" and EU member states cannot win. French Minister of Economy, Finance, Industry, and Digital Sovereignty Le Mer also emphasized on the same day that China is "our economic partner.". "We must absolutely avoid any form of trade war, because it is not in the interest of the United States, China, Europe, or any country in the world."

Source: Caixin News Agency

 

US Treasury Secretary Yellen said exchange rate intervention should not be used as a routine measure

When answering the question of how Japan and other countries can respond to the strengthening of the US dollar, US Treasury Secretary Yellen stated that exchange rate intervention should be a rarely used tool, and officials should issue appropriate warnings when taking action. "We believe that intervention should be a rare measure, and intervention actions should be communicated in advance, mainly to cope with fluctuations in the foreign exchange market," Yellen said. "We believe that intervention is not a tool that should be used routinely."

Source: Bloomberg

 

The Paris Olympics boost the French economy and are expected to bring billions of euros in economic benefits

An independent study shows that the 2024 Paris Olympics will bring a net economic benefit of 6.7 to 11.1 billion euros to the Paris region, with a medium to long-term forecast of approximately 8.9 billion euros in economic impact.

Source: Global Market Intelligence

 

IKEA invests in building warehouses in India to accelerate delivery in the Asian region

Swedish furniture retailer IKEA recently announced that it will collaborate with international logistics company Rhenus to accelerate delivery services in the Asian region. Rhenus will establish a warehouse early next year, capable of storing and delivering over 7000 products. In addition, IKEA's expansion plan in India includes opening two comprehensive shopping centers in Gurugram and Noida, with the Gurugram project expected to start next year. The project is expected to cost 70 billion rupees.

Source: Today's Home Furnishings

 

Goldman Sachs CEO Solomon predicts that the Federal Reserve will not cut interest rates this year

Goldman Sachs CEO David Solomon stated that he currently does not expect the Federal Reserve to cut interest rates this year as the economy has shown stronger resilience thanks to government spending. "I still haven't seen convincing data indicating that we will cut interest rates," he said at an event at Boston College, adding that he currently predicts "zero rate cuts.". Investment in artificial intelligence infrastructure also drives the economy to become more resilient in the face of the Federal Reserve's monetary tightening. Solomon also stated that compared to six months ago, there is a greater risk of an economy slowing down to some extent, which is "truly perceptible". He mentioned the fragility of geopolitics and stated that people will have to endure it for a long time.

Source: Global Market Intelligence

 

TOTO increases its weight in the US market and its performance will surpass that of China

Starting from 2024, TOTO Japan plans to increase the sales of Washlets (warm water flush toilets) to more than twice in the United States within three years, and expand sales at an annual rate of 19%. On the other hand, it is predicted that the demand for new houses in China will continue to be sluggish. We will focus on redecorating and set an annual growth rate target of 5%. These have been included in the company's new medium-term business plan. Although the sales in the United States in 2023 were only 70% of those in China, it is possible that they could surpass China as early as 2026.

Source: Today's Home Furnishings

 

Chanel may further raise prices in the second half of the year and open more stores in China

Chanel said on Tuesday that it plans to open more stores in Chinese Mainland. "China is still a place where our business is not well distributed," said Philippe Blondiaux, Chief Financial Officer of Chanel. For example, Chanel only has 18 fashion boutiques, while other competing brands have around 40 to 50. Blondiaux claims that more and more Chinese customers are coming to Europe and Japan, and in recent weeks, Chinese tourists have accounted for half of its Japanese sales. Chanel has already increased its price by 6% earlier this year, Blondiaux said that there may be further price hikes in the second half of the year to adapt to rising material costs or balance exchange rate differences.

Source: Global Market Intelligence

 

Musk's xAI is reported to be close to completing nearly $6 billion in financing, and the company's valuation is expected to reach $18 billion

It is reported that Musk's artificial intelligence startup xAI is nearing completion of a round of nearly $6 billion financing, bringing the company's valuation to $18 billion. According to insiders, this round of financing has received investment commitments from venture capital firms such as Anderson Horowitz, Lightspeed Ventures, Sequoia Capital, and Tribe Capital.

Source: Financial Times

 

The demand for Thai rubber wood in the Chinese market is continuously expanding

According to the latest data from the General Administration of Customs, in the first four months of 2024, China's import of rubber wood from Thailand achieved significant growth, with a year-on-year increase of 32% and a total volume exceeding 1.69 million cubic meters; At the same time, trade volume has also shown a strong growth momentum, increasing by 34% compared to the same period last year, with a total amount of 429 million US dollars. This growth trend indicates that the demand for Thai rubber wood in the Chinese market is continuously expanding. With a large amount of imported Thai rubber wood, its price in the Chinese market is also showing a trend of monthly growth. According to statistics, in January this year, the price of rubber wood (CIF) was 241 US dollars per cubic meter; After entering February, it will reach $247 per cubic meter; The price increased to $253 per cubic meter in March; In April, the price rose to $260 per cubic meter.

Source: Today's Home Furnishings

 

Microsoft Release: New Generation Copilot+PC Collective Debut

Last Monday local time, Microsoft held a press conference showcasing the highlights of the upcoming "Copilot+PC" to be launched in June, and released new Surface Pro and Surface Laptop computers equipped with Qualcomm Snapdragon X chips. Brand OEM companies Acer, Asus, Dell, HP, Lenovo, and Samsung also released a series of new AI computers on Monday, marking the beginning of an era of widespread local computing power.

Source: Science and Technology Innovation Board Daily

 

02 Industry News

National Regular Meeting: Actively Cultivate Cross border E-commerce Business Entities, Strengthen Relevant Infrastructure and Logistics System Construction

Li Qiang presided over a State Council executive meeting and approved the Opinions on Expanding Cross border E-commerce Exports and Promoting Overseas Warehouse Construction. The meeting pointed out that developing new forms of foreign trade such as cross-border e-commerce and overseas warehouses is conducive to promoting the optimization of foreign trade structure and stable scale, and is conducive to creating new advantages in international economic cooperation. We should actively cultivate cross-border e-commerce operators, encourage local governments to support traditional foreign trade enterprises in developing cross-border e-commerce based on their unique advantages, strengthen the cultivation of cross-border e-commerce talents, provide more display and docking platforms for enterprises, and continue to promote brand building. We need to increase financial support, strengthen the construction of relevant infrastructure and logistics systems, optimize supervision and services, and actively carry out standard rule construction and international cooperation. We need to strengthen industry self-discipline, guide orderly competition, and better empower the development of the upstream and downstream of the industrial chain.

Source: Caixin News Agency

 

The total import and export value of foreign trade in the Yangtze River Delta region exceeded 5 trillion yuan in the first four months of this year

According to Shanghai Customs, the total import and export value of foreign trade in the Yangtze River Delta region reached 5.04 trillion yuan in the first four months of this year, reaching a historic high with a year-on-year increase of 5.6%, accounting for 36.5% of the total import and export value of the country. Among them, the import and export to countries jointly building the "the Belt and Road" was 2.26 trillion yuan, up 7.6% year on year, accounting for 34.5% of the total import and export value of countries jointly building the "the Belt and Road" in the same period; Import and export to other RCEP member countries reached RMB 1.55 trillion, a year-on-year increase of 4.1%, accounting for 37.1% of the total import and export value of the country to other RCEP member countries during the same period; Import and export to other BRICS countries reached 0.67 trillion yuan, a year-on-year increase of 12.7%, accounting for 33.9% of the total import and export value of the country to other BRICS countries during the same period. The import and export of high-tech products reached 1.24 trillion yuan, a year-on-year increase of 8.3%, accounting for 35.3% of the total import and export value of similar goods in China. The import and export of private enterprises reached 2.69 trillion yuan, a year-on-year increase of 9.8%, accounting for 35.7% of the total import and export value of private enterprises in China.

Source: Caixin News Agency

 

In the first four months, Jiangsu's imports and exports to the nine BRICS countries amounted to 19.119 billion yuan

In 2024, the BRICS countries will expand to 10 member states. Riding the "BRICS East Wind", "Made in Jiangsu" accelerates its journey to sea. According to statistics from Nanjing Customs, in the first four months of this year, Jiangsu Province imported and exported 191.19 billion yuan to other BRICS countries, a year-on-year increase of 14.9%, accounting for 10.9% of Jiangsu Province's total foreign trade import and export value. Among them, exports amounted to 131.53 billion yuan, a year-on-year increase of 7.7%; The import was 59.66 billion yuan, a year-on-year increase of 34.6%.

Source: Caixin News Agency

 

Domestic bicycle exports surged in the first quarter

China is a major producer of bicycles, accounting for approximately 60% of the world's bicycle trade volume annually. At present, it is the peak season for bicycle exports. Data shows that in the first quarter of 2024, the total number of bicycles exported nationwide was about 10.999 million, a year-on-year increase of 29.3%. It is expected that the export volume of bicycles to Southeast Asia, South America and other regions will have a significant increase this year. The reporter visited multiple bicycle manufacturing companies and learned that there has been a significant increase in demand for mid to high end sports bicycles in overseas markets this year compared to the past.

Source: Caixin News Agency

 

Yiwu's sports goods exports have surged

The Olympic economy continues to heat up. Sports equipment orders such as basketball, football, and volleyball in Yiwu have surged, with some merchants experiencing a sales growth of over 50% in football. In addition to sports equipment, products related to the Olympics such as fuel scarves, fan wigs, and cheering sticks are also selling well. Statistics show that in the first two months of this year, Yiwu's exports to France surged by 42% year-on-year, with sports goods exports surging by 70%.

Source: Caixin News Agency

 

TJX's performance is impressive, with outstanding achievements in home furnishings

TJX Company delivered a impressive report in the first quarter of its fiscal year ending on May 4th, with the home furnishings category surpassing its core clothing business and performing particularly well. This performance has driven the overall revenue growth of the company and led to an increase in the company's expectations for annual pre tax profit margin and earnings per share.

In this quarter, All departments under TJX Company have achieved revenue growth, especially the home furnishings department, whose sales and profitability far exceed expectations. Data shows that as of May 4th, The net sales of HomewGoods have successfully exceeded the $2 billion mark, and the same store sales have achieved a 4% growth, a 7% decrease from the same period last year. This successful reversal is undoubtedly remarkable.

In terms of specific performance, Marmaxx U.S.'s net sales reached $7.75 billion, a year-on-year increase of 5%, and comparable same store sales also increased by 2%. The net sales of HomeGoods U.S., including Home Sense statistics, reached $2.079 billion, a year-on-year increase of 6%. In the Canadian market, TJX Canada continues to show a steady growth trend. Its net sales in the first quarter were $1.113 billion, a year-on-year increase of 7%, which is comparable to a 1% increase in same store sales, proving the stability and sustained growth potential of the department in the Canadian market. In the international market, TJX International continued to expand its influence, with net sales of $1.537 billion in the first quarter, a year-on-year increase of 9%.

Source: Today's Home Textile

 

Macy's department store's performance in the first quarter was impressive, and the "bold new chapter" reform showed initial results

With the implementation of the "bold new chapter" strategy for 90 days, Macy's department store has achieved impressive performance in the first quarter. In today's financial report, this retail giant showcased the preliminary results of its transformation strategy and received widespread market attention.

Macy's First 50 pilot store group stood out in the first quarter and became an important driving force for performance growth. Tony Spring, the chairman and CEO of the company, excitedly stated that these stores are "leading indicators of our progress", and their outstanding performance indicates the correctness of the company's overall strategy.

Among these pilot stores, Macy's not only launched a new clothing brand, but also improved product sales in key areas and attracted a large number of customers through in store activities. At the same time, the company also cleverly utilizes technological means, such as accurately deploying employees in shoe areas, high priced product areas, and fitting rooms, to improve sales conversion rates.

Source: Today's Home Textile

 

Cainiao has an average of over 5 million cross-border packages per day throughout the year

On May 23rd, Alibaba Group released its 2024 fiscal year report. As of March 31, 2024 fiscal year, the daily average cross-border package volume of Cainiao in the international logistics field has exceeded 5 million. This scale has surpassed the current top logistics companies in the world. In the fiscal year 2024, Cainiao's revenue reached 99.02 billion yuan, a year-on-year increase of 28%, leading the logistics industry in growth rate. The growth was mainly due to cross-border business.

Source: Overseas Cross border Weekly Report

 

The export sea freight prices of foreign trade are showing an upward trend

Recently, due to multiple factors such as the ongoing tension in the Red Sea situation and the global recovery in foreign trade, the export sea freight prices have shown an upward trend. It is understood that multiple shipping companies have issued price increase letters, raising the rates of major routes. Now, the freight rates of certain routes from Asia to Latin America have skyrocketed from over $2000 per 40 foot container to $9000 to $10000, and the freight rates for routes in Europe, North America, and other regions have almost doubled. The head of a door and window accessories company stated that the shipping cost for a 40 foot container, originally around $3500 to Saudi Arabia, has now increased to $5500-6500. In the face of difficulties, in addition to freeing up space to stack the backlog of goods, it also suggests that customers use air freight and China Europe freight trains, or adopt more economical transportation methods such as high containers to flexibly solve the problem.

Source: Today's Home Furnishings

 

Amazon announces the launch of the "2024 Export Cross border Logistics Accelerator Program"

As Amazon Prime Day approaches in 2024, Amazon has increased its cross-border logistics services in China and launched the "2024 Export Cross border Logistics Accelerator Program", which covers a series of logistics innovations and measures, including cross-border logistics services, destination warehousing, etc. In 2023, Amazon Global Logistics (AGL) and Amazon SEND helped Chinese sellers export and ship hundreds of millions of items.

Source: Overseas Cross border Weekly Report

 

03 Important event reminder for next week

Global News for a Week

Monday (May 27th): The US stock market will be closed in commemoration of its death, the London Stock Exchange will be closed for a spring bank holiday, and Bank of Japan Governor Kazuo Ueda will give a speech.

Tuesday (May 28th): US March S&P/CS 20 Major City House Price Index, US May Consumer Confidence Index, and US May Dallas Federal Reserve Business Activity Index.

Wednesday (May 29th): The Taiwan Affairs Office held a press conference, Australia's April unadjusted CPI annual rate, Germany's May CPI monthly rate initial value, the Richmond Fed Manufacturing Index in the United States in May, and South Africa's general election.

Thursday (May 30th): The Federal Reserve releases the Brown Book of Economic Conditions, Eurozone May Economic Prosperity Index, Eurozone April Unemployment Rate, and the revised annualized quarterly real GDP rate for the first quarter of the United States.

Friday (May 31st): China's official manufacturing PMI for May, Japan's Tokyo CPI for May, Eurozone/France/Italy May CPI, US April core PCE price index annual rate, and US April core PCE price index.

 

04 Global Important Meetings

September 2024 Birmingham International Clothing, Luggage, Footwear and Accessories Exhibition, UK

Host: Hyve Exhibition Group

Time: September 1st to September 4th, 2024

Exhibition location: Birmingham International Exhibition Centre, UK

Suggestion: MODA is one of the oldest fashion trade shows in the UK, with a history of 30 years. It is known as the "First Footwear, Luggage and Accessories Exhibition in the UK" and is a trendsetter for the UK footwear industry, luggage and accessories. The exhibition is held twice a year, in February and September at the NEC Exhibition Center in Birmingham. At the same time as the exhibition, the most influential handicraft and consumer goods professional exhibition in the UK - Spring Fair/Autumn Fair Birmingham International Spring and Autumn Consumer Goods Expo - was held, creating a broader fashion and lifestyle trade platform for exhibitors, and relevant industry foreign traders are worth paying attention to.

 

2024 South Africa International Mining Machinery Exhibition, Engineering Machinery Exhibition, and Power Energy Equipment Exhibition

Hosted by Specialised Exhibition Company&Allworld Exhibition in the UK

Time: September 2nd to September 6th, 2024

Exhibition location: Nasrec International Exhibition Center in Johannesburg, South Africa

Suggestion: The South African International Exhibition of Construction and Mining Machinery should be held every two years. This exhibition is the largest professional exhibition in South Africa for engineering machinery, mining machinery, construction equipment, engineering vehicles and accessories, and power energy equipment. The exhibition on mining and mining equipment attracted over 800 companies from 26 countries in 2018, with an exhibition area of 37169 square meters, including an indoor area of 25000 square meters. As the largest engineering, mining, power, and energy machinery exhibition in South Africa, it is also the second largest mining machinery exhibition in the world after the United States. The exhibits include mining machinery, power generation equipment, and other engineering equipment, which come from regions such as Europe, Asia, Africa, and the Americas. Foreign traders in related industries are worth paying attention to.

 

05 Global Major Festivals

June 1st, Germany - Pentecost

Also known as Holy Spirit Monday or Pentecost, it commemorates the 50th day after Jesus' resurrection, when he sent the Holy Spirit to the earth for his disciples to receive and preach the gospel. On this day, there will be various forms of festival celebrations in Germany, such as outdoor worship or walking into nature to welcome the arrival of summer.

Activity: According to the rural tradition in southern Germany, people will parade through the streets with decorations of colorful cows.

Suggestion: Understanding is sufficient.

 

June 2nd Italy Republic Day

Italian Republic Day is a national day in Italy, commemorating Italy's abolition of the monarchy and establishment of a republic through a referendum on June 2-3, 1946.

Event: The President presented a laurel wreath to the Unknown Soldier Memorial at the Vittoriano Memorial Hall and held a military parade along Empire Square Avenue.

Suggestion: Confirm your vacation and wish in advance.