Economy

SINGAPORE (Reuters) – After struggling to find staff during the pandemic, businesses in Singapore have increasingly turned to deploying robots to help carry out a range of tasks, from surveying construction sites to scanning library bookshelves. The city-state relies on foreign workers, but their number fell by 235,700 between December 2019 and September 2021, according to the manpower ministry, which notes how COVID-19 curbs have sped up “the pace of technology adoption and automation” by companies.     At a Singapore construction site, a four-legged robot called “Spot”, built by U.S. company Boston Dynamics, scans sections of mud and gravel to check on work progress, with data fed back to construction company Gammon’s control room.    Gammon’s general manager, Michael O’Connell, said using Spot required only one human employee instead of the two previously needed to do the job manually. “Replacing the need for manpower on-site with autonomous solutions is gaining real traction,” said O’Connell, who believes industry labour shortages made worse by the pandemic are here to stay.    Meanwhile, Singapore’s National Library has introduced two shelf-reading robots that can scan labels on 100,000 books, or about 30 percent of its collection, per day.”Staff need not read the call numbers one by one on the shelf, and this reduces the routine and labour-intensive aspects,” said Lee Yee Fuang, assistant director at the National Library Board.    Singapore has 605 robots installed per 10,000 employees in the manufacturing industry, the second-highest number globally, after South Korea’s 932, according to a 2021 report by the International Federation of Robotics.     Robots are also being used for customer-facing tasks, with more than 30 metro stations set to have robots making coffee for commuters.    Keith Tan, chief executive of Crown Digital, which created the barista robot, said it was helping solve the “biggest pain-point” in food and beverage – finding staff – while also creating well-paid positions to help automate the sector. However, some people trying the service still yearned for human interaction.    “We always want to have some kind of human touch,” said commuter Ashish Kumar, while sipping on a robot-brewed drink. More

BRUSSELS (Reuters) – European Union leaders will meet on Monday to declare continued support for Ukraine to help it fend off Russia’s assault, but the talks will be overshadowed by their failure to agree on a new sanctions package against Moscow.Over two days, leaders of the 27-nation bloc are to discuss how best to aid Ukraine four months into Russia’s invasion and how to deal with the conflict’s impacts: high energy prices, an impending food shortage and the EU’s defence needs.But draft conclusions of the meeting, seen by Reuters, showed that while the EU will be generous with verbal support for the government in Kyiv, there will be little in terms of new decisions on any of the main topics.”After Russia’s attack on Ukraine, we saw what can happen when Europe stands united. With a view to the summit tomorrow, let’s hope it continues like this. But it is already starting to crumble and crumble again,” German Economy Minister Robert Habeck said on Sunday. The most tangible will be the leaders’ political backing for a 9 billion euro package of EU loans, with a small grants component to cover part of the interest, so that Ukraine can keep its government going and pay wages for around two months.But even there, the decision will be only made later, after the European Commission makes a proposal on how to raise the money.Despite efforts since the start of May, EU governments cannot agree on the sixth package of sanctions against Moscow because one of the elements – an embargo on buying Russian oil – is not acceptable to Hungary and a big problem for Slovakia and the Czech Republic.Other elements, such as disconnecting Russia’s biggest Sberbank from the SWIFT messaging system, banning Russian broadcasters from the EU and adding more people to a list whose assets are frozen and who cannot enter the EU, are all held up by the lack of agreement on the oil ban.The draft summit conclusions showed EU leaders will back the creation of an international fund to rebuild Ukraine after the war, with no details, and want to look into the possibility of confiscating frozen Russian assets for that purpose. But the careful phrasing is deliberate because the issue is legally difficult, officials said.The leaders will pledge to accelerate work to help Ukraine move its grain out of the country to global buyers via rail and truck as the Russian navy is blocking the usual sea routes and to take steps to faster become independent of Russian energy.The draft showed leaders are ready to explore ways to curb rising energy prices, including the feasibility of introducing temporary price caps, to cut red tape on rolling out renewable sources of energy and invest in connecting national energy networks across borders to better help each other. More

HONG KONG/LONDON (Reuters) -HSBC is facing queries from customers about its commitment to fight climate change after a senior banker downplayed the risks, sources told Reuters, with at least one large institutional investor reconsidering whether to employ the bank for a sustainability role, according to one of the people.The investor, which manages in excess of $100 billion, plans to seek opinions from consultants on whether HSBC Asset Management should help manage its sustainability funds in the wake of the controversial comments, said the person with direct knowledge of the matter.Staff inside the bank have also sought reassurances about its policies amid concerns about how HSBC will be perceived by clients, two other sources said.The sources declined to be named as they were not authorised to speak to the media. A spokesperson for HSBC declined to comment. Earlier this month, Stuart Kirk, who is global head of responsible investing at HSBC Asset Management, told a conference in London that “climate change is not a financial risk we need to worry about”, comments that prompted the bank to suspend him and conduct an internal investigation.Kirk declined to comment when reached by Reuters.Kirk’s presentation was met with criticism from campaigners who have been pressuring the bank and its peers in the financial services industry to play a bigger role in the fight against climate change. It also prompted The Pensions Regulator in the U.K. to warn that any pension scheme failing to consider the impacts of climate change was “ignoring a major risk to pension savings”. HSBC is a leading provider of investment services to such schemes.HSBC Chief Executive Noel Quinn has said that Kirk’s comments were “inconsistent with HSBC’s strategy and do not reflect the views of the senior leadership”. Nicolas Moreau, who heads the asset management division, also distanced the bank from Kirk’s remarks.HSBC Asset Management has received a number of inquiries from institutional clients about Kirk’s comments, one of the sources said. Some of the institutions said they felt obligated to seek more clarity and understand HSBC’s official stance, the source added.The possibility of HSBC Asset Management, a division that oversees some $640 billion, losing business comes as the company invests in the unit as part of a broader push to grow fee income. Over the last year, HSBC has bought businesses in Singapore and India as it seeks to expand in Asia in particular.The unease has also rippled through the bank’s internal meetings. Employees feeling concerned raised questions to senior management during a recent town hall, two of the sources said. Still, several industry experts have defended Kirk, saying that he had sparked a legitimate debate and that there should be room for dissenting voices in finance. The impact of climate risk on portfolios can indeed be exaggerated as Kirk claimed, Tariq Fancy, a former head of sustainable investing at BlackRock Inc (NYSE:BLK)., told Financial News in an interview on Monday. More

This week many of us will be getting an early holiday season as a bulge in anniversaries means an uptick in public rest days across the world.If you are reading this in the US, you are already immersed in the long Memorial day weekend with tomorrow’s commemoration of those who have given their life in military service.On other years, the last Monday of May would also be a day off in the UK, linked to the Christian festival of Pentecost, or Whitsun as the Church of England calls it. But this year, the day off has been moved to Thursday and Brits have been handed an extra public holiday on Friday to commemorate Queen Elizabeth’s 70 years as British head of state — perhaps by heading to the cinema.On Thursday, Italians will commemorate the founding of their modern state with fireworks and parades on National Republic day. Then there is the Dragon Boat Festival, the traditional Chinese holiday held on the fifth day of the fifth month of the Chinese calendar — this year that will be this Friday. However, due to the pandemic, many of the actual dragon boat races scheduled worldwide will be cancelled or held under restrictions.Whatever you feel about the point of these public holidays, they have an additional poignancy this year given the debate about working hours. The greater flexibility needed to get things done during pandemic lockdowns has led many to question the rigidity of nine-to-five working, five days a week, about whether we need to blend our home and work life better or move to a four-day week — as tech business WANdisco has already done.Economic dataIt is a fairly full week for economic data with both inflation and unemployment data for the eurozone countries, on Tuesday and Wednesday respectively, plus the Federal Reserve’s Beige Book on US economic conditions on Wednesday, and US unemployment data on Friday.CompaniesSo-called dollar stores in the US have tended to trade resiliently during economic downturns and that will probably be the message from variety discounter B&M this week.Analysts expect sales and profits for the year to the end of March to be below last year’s record levels as shopping habits normalise and costs rise. But, as my colleague Jonathan Eley notes, the company’s scale and its direct-sourcing operation in Asia will help it keep prices below those of more conventional rivals as incomes come under pressure.These are likely to be the last set of full-year results for chief executive Simon Arora, who together with brother Bobby took B&M from a small chain of tatty shops in north-west England to an estate of almost 700 UK stores and a place in the FTSE 100. He surprised the market in April by announcing plans to retire.Read the full week ahead calendar here More

Germany’s centre-right opposition and ruling coalition with centre-left Social Democrats (SPD), Greens and pro-business Free Democrats (FDP) said they reached the required two-thirds majority to exempt the defense fund from a constitutional debt brake.According to sources familiar with the matter, the negotiations were led by FDP leader Christian Lindner, SPD’s Defense Minister Christine Lambrecht, Greens leader Annalena Baerbock and the opposition’s vice whip Mathias Middelberg.The money is to be used over several years to increase Germany’s regular defense budget of around 50 billion euros and enable the country to meet the NATO target of spending 2% of its economic output on defense each year.($1 = 0.9315 euros) More

Central banks are raising rates rapidly in the most widespread tightening of monetary policy for more than two decades, according to a Financial Times analysis that lays bare the reversal of their previous historically loose stance. Policymakers around the world have announced more than 60 increases in current key interest rates in the past three months, according to an FT analysis of central banking data — the largest number since at least the start of 2000. The figures illustrate the sudden and geographically widespread reversal of the very accommodative monetary policies adopted since the global financial crisis in 2008 and boosted further during the coronavirus pandemic. Interest rates hovered near unprecedented lows in most advanced economies for the past decade, and in some cases went negative.

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The sudden shift in policy comes as inflation has reached multi-decade highs in many countries, fuelled by soaring energy and food costs since Russia invaded Ukraine in February. Jennifer McKeown, head of global economics service at Capital Economics, a research firm, said: “The world’s central banks have embarked on the most co-ordinated tightening cycle in decades.” Of 20 major central banks around the world, 16 are likely to raise interest rates over the next six months, says McKeown. Tightening is expected to be fastest in the US and UK.Happy Monday. Thanks for reading FirstFT Asia. Here’s the rest of today’s news. — SophiaFive more stories in the news1. China fails to work out a plan to ease its economic malaise After the country’s zero-Covid policy brought its commercial activity to a halt, premier Li Keqiang has urgently warned that China needs to boost growth, reduce unemployment, and stabilise agricultural production. But local officials have little faith that the government is willing or able to help. Meanwhile, industrials profits continue to fall.2. Ukraine forces hold out against Russian assault on key Donbas city Serhiy Haidai, governor of the Luhansk region that makes up half of the Donbas, said yesterday that Ukraine had driven Russian troops back from a highway, allowing Kyiv’s forces to supply the key city of Sievierodonetsk. Sievierodonetsk is the last big city in Luhansk still under Ukrainian control3. Qatar urges the west to engage with the Taliban Qatari foreign minister Sheikh Mohammed bin Abdulrahman al-Thani has warned that a failure to step up engagement with the Taliban would risk Afghanistan falling into deeper chaos, a rise in extremism, and further economic crisis, which has already begun since the US pulled out of the country nine months ago.4. South Korean IPO pipeline dries up on worries about global growth Initial public offerings in South Korea have slowed to a trickle after a record year in 2021. At least 10 Korean companies called off listings this year, citing difficulties in obtaining the valuations they wanted. Concerns about high inflation, slowing global growth and the war in Ukraine have caused investor sentiment to cool off.5. UN envoy ‘unable to assess’ scale of Xinjiang repression Undermining her landmark investigation of China’s crimes against Uyghur Muslims, UN human rights chief Michelle Bachelet said she had been “unable to assess the full scale” of the notorious system of mass internments, forced labour and re-education camps in Xinjiang. US secretary of state Antony Blinken criticised Beijing’s efforts to restrict her visit.

Michelle Bachelet’s efforts to investigate the treatment of Uyghur Muslims in China have been restricted © REUTERS

The day aheadWHO meeting The executive board of the World Health Organization holds its 151st session today in Geneva.Economic outlook The OECD releases its economic analysis and projects for member countries and other major economies today.Memorial Day The US observes Memorial Day today to commemorate military service members who have died. Financial markets are closed, and President Biden will attend an observance at Arlington National Cemetery.African writing The AKO Caine Prize for African Writing shortlist is announced today.What else we’re readingWhy EY’s break-up could radically reshape the Big Four After years of criticism over perceived conflicts of interest between its audit and advisory businesses, EY is weighing the separation of the two. Other professional service firms will reconsider their own structures — and might swoop for EY partners in the carve-up.What is America’s end-game for the war in Ukraine? The Biden administration is now trying to conduct a delicate balancing act between supporting both Ukraine and America’s allies who worry about a long conflict. And while the US has said it will continue supporting the Ukrainian war effort, there’s less clarity about what a strategic defeat for Russia would actually look like. Japan’s horrifying crop of data falsification is also encouraging Toyota, Japan Steel Works, and Mitsubishi Electric are among those that have recently acknowledged years of data falsification. As the search for some cultural explanation intensifies, one commonality between the scandals is that the whistleblowers have been given voice by companies’ ESG commitments.

© Maria Hergueta

Business flights are in trouble in the world of net zero From factoring flights into company bonuses to incorporating nudge theory in internal travel booking systems, companies have started to launch ever more inventive ways to cut back on air travel.Bull market rhymes lead to a turn in the investing cycle Bitcoin and FAAMGs (Facebook, Apple, Amazon, Microsoft and Google) are the latest example of a bull market — something new that history can’t be used to discount. Stock market boom and busts occur and recur, abetted by the willing suspension of disbelief, writes co-founder and co-chair of Oaktree Capital Management Howard Marks.FashionOne way to get a summer print fix without going full frock is to style a pair of patterned trousers. Statement slacks capture fashion’s new maximal mood and offer a bohemian alternative to the summer dress. Plus, they are a breezy, comfortable option that still looks put together.

Silk trousers from Pucci’s La Grotta Azzurra collection, £870, pucci.com, available late summer More

US petrol prices hit fresh records this weekend but, despite the soaring cost, millions of American motorists took to the roads for the unofficial start of summer.Even as the average cost of a gallon of gasoline broke $4.60 for the first time, around 35mn people were expected to take to the roads over the Memorial day weekend, which traditionally marks the start of America’s summer driving season, according to the AAA, a motoring group.That would mark a 5 per cent increase on last year’s numbers as holidaymakers indulge in post-pandemic freedom.“I think it’s all systems go this weekend,” said Tom Kloza, global head of energy analysis at Oil Price Information Service. “There’s an attitude among the public where it’s like: ‘I deserve this’.”But despite the early summer rush, high prices are beginning to take their toll on motorists. While drivers might be willing to splurge on holidays, they have cut back on day-to-day spending for commuting and social travel. “We’re starting to see that term ‘demand destruction’ return,” said Kloza.Petrol prices have climbed rapidly over the past two years as the reopening of the US economy pushed demand to outpace supply. Russia’s invasion of Ukraine in February shook crude markets and accelerated the rise in fuel costs.With the national average sitting at $4.61 a gallon on Saturday, prices are more than 50 per cent higher than a year ago. In California, they have surpassed $6 a gallon. Diesel is even more expensive. That has begun to force the US’s gasoline-guzzling drivers to rethink their car usage. The average American family burns through 90 gallons of petrol a month — far more than any in other major economy — which translates to an outlay of $414 at current prices. Petrol demand in the four weeks to May 20, the most recent data provided by the Energy Information Administration, was 8.8mn barrels a day. That was a 3 per cent slide on the previous week and almost 700,000 barrels below the same period a year ago.“It definitely appears that high prices are causing what I would say is a low level of demand destruction,” said Patrick DeHaan, head of petroleum analysis at pricing app GasBuddy. He suggested demand over the holiday weekend could be 7-13 per cent lower than 2019. Rising fuel costs have fed into rampant economy-wide inflation, which has become a serious problem for President Joe Biden, who has been blamed for the high prices by many voters despite a limited ability to influence them.With midterm elections looming, the Biden administration has taken steps to lower prices, including releasing unprecedented volumes of crude from strategic reserves, lifting restrictions on ethanol blends and leaning on US oil companies and foreign producers to open the taps. Other options have also been floated, including cutting the 18.3 cent federal gasoline tax or waiving summer pollution rules. Bloomberg reported last week that the administration was in talks with US refiners about supporting a reopening of some closed refineries. The White House did not respond to a request for comment.“I do expect him to pull one of these levers at some point,” said Kloza. “They want to be perceived as doing something.” More

Hello and welcome to the working week.Or perhaps not. It has often been said that Christmas comes earlier every year. Well, this week many of us will be getting an early holiday season as a bulge in anniversaries means an uptick in public rest days across the world.If you are reading this in the US, you are already immersed in the long Memorial day weekend with tomorrow’s commemoration of those who have given their life in military service. On other years, the last Monday of May would also be a day off in the UK, linked to the Christian festival of Pentecost, or Whitsun as the Church of England calls it. But this year, the day off has been moved to Thursday and Brits have been handed an extra public holiday on Friday to commemorate Queen Elizabeth’s 70 years as British head of state — perhaps by heading to the cinema.On Thursday, Italians will commemorate the founding of their modern state with fireworks and parades on National Republic day. Then there is the Dragon Boat Festival, the traditional Chinese holiday held on the fifth day of the fifth month of the Chinese calendar — this year that will be this Friday.Whatever you feel about the point of these public holidays, they have an additional poignancy this year given the debate about working hours. The greater flexibility needed to get things done during pandemic lockdowns has led many to question the rigidity of nine-to-five working, five days a week, about whether we need to blend our home and work life better or move to a four-day week — as tech business WANdisco has already done. Could this shortened week be a taste of things to come? I am interested in your views. Email me at [email protected] dataIt is a fairly full week for economic data with both inflation and unemployment data for the eurozone countries, on Tuesday and Wednesday respectively, plus the Federal Reserve’s Beige Book on US economic conditions on Wednesday, and US unemployment data on Friday.CompaniesIt’s a thin week for earnings calls. Again the theme is retail.So-called dollar stores in the US have tended to trade resiliently during economic downturns and that will probably be the message from variety discounter B&M this week.Analysts expect sales and profits for the year to the end of March to be below last year’s record levels as shopping habits normalise and costs rise. But, as my colleague Jonathan Eley notes, the company’s scale and its direct-sourcing operation in Asia will help it keep prices below those of more conventional rivals as incomes come under pressure.These are likely to be the last set of full-year results for chief executive Simon Arora, who together with brother Bobby took B&M from a small chain of tatty shops in north-west England to an estate of almost 700 UK stores and a place in the FTSE 100. He surprised the market in April by announcing plans to retire. Key economic and company reportsHere is a more complete list of what to expect in terms of company reports and economic data this week.MondayEU, consumer and business sentiment surveysGermany, preliminary May consumer price index (CPI) dataItaly, April producer price index (PPI) dataSpain, May inflation figuresUK, official data on youth unemployment by socio-economic background 2014-21 plus analysis tracking the lowest-cost grocery itemsTuesdayCanada, March GDP dataEU, May flash eurozone inflation figuresFrance, flash May CPI figures plus final April PPI data and Q1 GDP figuresGermany, May unemployment dataIndia, Q1 GDP figuresItaly, preliminary May CPI data, March unemployment figures and final Q1 GDP dataJapan, April unemployment rate, retail spending figures and flash industrial production dataRussia, central bank publishes financial stability reviewSwitzerland, Q1 GDP figuresUK, British Retail Consortium monthly economic briefing plus official quarterly economic activity measures for England, Wales, Scotland and Northern Ireland and the nine English regionsUS, monthly consumer confidence figuresResults: B&M FY, HP Q2, Pennon Group FYWednesdayAlphabet AGMCanada, Bank of Canada interest rate announcementChina, Eurozone, France, Germany, Italy, UK, US: S&P/Caixan manufacturing purchasing managers’ index (PMI) dataEU, April unemployment figuresGermany, April retail trade figuresUK, Nationwide Building Society’s May house price indexUS, Federal Reserve issues Beige Book of economic conditionsResults: Dr Martens FYThursdayEU, April PPI figuresUS, April factory orders dataResults: Hormel Food Q2, Lululemon Athletica Q1FridayEU, April retail trade dataFrance, April industrial production index figuresGermany, April trade balance dataEurozone, France, Germany, Japan, US: S&P Global services sector PMI dataUK, deadline set by the Bank of England for UK banks to present crypto plansUS, May unemployment figuresWorld eventsFinally, here is a rundown of other events and milestones this week. MondaySwitzerland, the executive board of the World Health Organization holds its 151st session in GenevaUS, Memorial dayTuesdayEU, the term of the European Council president Charles Michel endsThe World Trade Organization’s dispute settlement body holds its monthly meetingUK, deadline for home secretary Priti Patel to decide on the extradition to the US of WikiLeaks founder Julian Assange.WednesdayThe first day of meteorological summer in the northern hemisphereAlbania assumes the revolving presidency of the UN Security CouncilChina, Shanghai moves into next phase of its lockdown-lifting programmeDenmark, country holds a referendum on joining the EU’s defence pact, increasing military spending and weaning itself off Russian gasEuropean Central Bank chief economist Philip Lane speaks at the CEPR Paris Symposium hosted by Sciences Po in ParisSouth Korea, local electionsUK, Scotland play Ukraine in a Fifa World Cup play-off football match postponed owing to Russia’s invasion of its neighbourUS removes Trump-era tariffs of 25 per cent on British steel and aluminium exports, replacing them with quotas. In return, the UK will suspend extra taxes it had put on US products, such as bourbon and Levi’s jeans.ThursdayItaly, Festa della Repubblica commemorating the referendum to set the country’s form of government after the second world war.UK, the Trooping of the Colour military parade to celebrate the Queen’s official 96th birthdayFridayChina, Hong Kong, Taiwan: annual dragon boat racing festivalsUK, the 73rd Aldeburgh classical music and opera festival, considered part of “the Season” of social events, begins plus St Paul’s Cathedral in London hosts a service of thanksgiving for the Queen’s Platinum JubileeSaturdayJewish festival of Shavuot, or Feast of Weeks, begins this eveningChina, 33rd anniversary of the Tiananmen Square events in BeijingFrance, women’s final of the French Open tennis tournamentIran, national holiday commemorating the anniversary of the death of former Iranian leader Ayatollah KhomeiniUkraine, today marks 100 days since Russia’s invasion startedSundayPentecost celebrated by western churches, commemorating the descent of the Holy Spirit on the disciples of Jesus after his ascension. Whit Sunday in the UK.France, men’s final of the French Open tennis tournamentUK, the Epsom Derby, British flat racing’s showpiece event, will be run at the eponymous Surrey racetrack, plus the culmination of four days of Jubilee celebrations that include local street parties, a star-studded pageant along London’s Mall and the Platinum Party at the Palace, a concert outside the Queen’s official residence More