1 Japan economy picks up pace (Richard Partington in
The Guardian) Japan’s economy expanded at the fastest pace for more than two
years in the three months to June, with domestic spending accelerating as the
country prepares for the 2020 Toyko Olympics and low levels of unemployment
encouraged businesses to invest.
The world’s third largest economy recorded an
expansion in second-quarter gross domestic product at an annualised rate of 4%,
according to figures from the cabinet office, making the country the
fastest-growing of the G7 wealthy nations.
The data comes as a shot in the arm amid rising
regional tensions sparked by the US president, Donald Trump, and North Korea’s
Kim Jong-un, a war of words that rattled global stock markets last week and
could threaten Japan, its economy and the rest of the world.
Japan is shrugging off decades of sluggish growth
that it has been attempting to counter with a massive money printing programme
championed by the prime minister, Shinzo Abe, to stimulate bank lending,
investment from companies and buying among consumers.
The factors that propelled the most recent growth in
GDP were led by rising domestic activity, as consumer spending accelerated
significantly, while low unemployment helped wages to grow faster than in the
previous quarter. On a less positive note, net exports declined by 0.3%.
The overall result was much stronger than expected
by the market, as economists had predicted the country would grow by 2.5% on an
annualised basis in the second quarter. Japan grew at 1% in the quarter alone,
against expectations for a 0.6% expansion.
2 Indonesia oil and gas sector in decline (Straits
Times) Once a cornerstone of the economy, Indonesia's oil and gas sector is in
a slump, even as the country's appetite for energy soars. Hit by a drop in
global prices, changing regulations and competition from neighbors that are
proving more attractive to international energy companies, Southeast Asia's
biggest economy is facing a decline in oil revenue and steadily rising fuel
imports.
With an economy growing at a 5 per cent clip and the
government embarking on a vast infrastructure roll out, the oil and gas
industry is sounding alarm bells over the decline of a sector that five years
ago accounted for almost 6 per cent of Indonesia's gross domestic product and
last year contributed only 3 per cent.
Investment for exploration in Indonesia shrank to $100
million in 2016 from $1.3 billion in 2012, according to government data. A lack
of drilling success and commercialization issues have weakened Indonesia's
outlook and spending is likely to drop further, said Johan Utama, a Southeast
Asia oil analyst.
Two decades ago, Indonesia pumped about 1.5 million
barrels of oil a day and the country, in 1997, was host to the meeting of oil
ministers from the Organization of Petroleum Exporting Countries.
Now Indonesia has applied to rejoin Opec after being
out of the group for most of the past eight years. Oil traders and executives
complain of a dearth of exploration and "stagnant" investment in the
country. Part of that is caused by the drop in oil prices since the heady days
from 2011 to mid 2014, when crude averaged more than $100 a barrel. Now it's
less than half that level, affecting investment decisions worldwide.
A PwC survey of more than 50 companies involved in
the Indonesian oil and gas industry identified a "stagnant"
investment environment and concerns about government commitment to the sanctity
of contracts.
3 US White nationalists plan rallies (Peter Fimrite
& Joe Garofoli in San Francisco Chronicle) With violence sparked by
neo-Nazis in Virginia raising tensions across the US, white nationalists are
planning rallies in San Francisco and Berkeley later this month.
A permit has been issued for a “Patriot Prayer”
group to gather Aug. 26 at Crissy Field in San Francisco, said Sonja Hanson,
spokeswoman for the Golden Gate National Recreation Area. The group is
ostensibly religious, but its purpose is really “an attempt to provoke
black-clad ideologues on the left into acts of violence,” according to the
Southern Poverty Law Center, which tracks hate groups.
Berkeley Mayor Jesse Arreguin said another group, No
Marxism in America, is planning an event on Aug. 27 at Martin Luther King Jr.
Civic Center Park in Berkeley. The park was the site of two other gatherings of
far-right protesters this year, including one on April 15 marked by violent
clashes with counter-protesters.
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