International News 10 February 2025
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Losing ground to rivals, Tesla sales in China drop 11.5% in January 2025
Tesla is experiencing challenges in the electric vehicle market as its sales decline and competitors, such as Xiaomi, gain traction. In December, the Xiaomi SU7 electric sedan outperformed the Tesla Model 3 in sales, and the release of its first SUV is poised to challenge the Tesla Model Y. Tesla's market share in China has seen a decline due to intense competition, prompting the company to implement discounts and financing incentives, which have affected its profit margin. In addition, Tesla plans to launch its advanced driver assistance software, 'Full Self-Driving', later this year. These developments, in addition to Elon Musk's political activities, are contributing to a shift in consumer preference away from Tesla, resulting in a decline in sales.
Singapore's Banking Profits Predicted to Rise
The banking sector in Singapore is poised for a strong performance in the fourth quarter of 2024, with an anticipated increase in net profit growth driven by robust net interest income and fee-based income. DBS Group is predicted to see a 9.8% year-on-year increase in net profit, while OCBC and UOB are projected to experience growth of 11.6% and 4.3%, respectively. This positive outlook is attributed to the sustained high interest rate environment and robust wealth inflows in Singapore. However, the outlook may be impacted by the ongoing trade tensions, particularly the US-China tariffs and potential import duties on other major US trading partners. Analysts have expressed concerns about the possibility of a more widespread trade war and the potential repercussions for the banks, including the possibility of increased provisions for bad loans and a negative impact on profits.
https://internasional.kontan.co.id/news/laba-perbankan-singapura-diprediksi-bakal-moncer
Gold Strengthens for Sixth Straight Week on Safe Haven Asset Demand
Gold prices have risen for a sixth consecutive week, driven by heightened trade tensions between the US and China, which have led investors to seek safe haven assets.The price of gold increased by 0.2% to reach $2,861.46 per troy ounce, marking a weekly gain of over 2%.Gold futures in the US closed up 0.4% at $2,887.60. David Meger, director of metals trading at High Ridge Futures, attributes this rise to the uncertainty surrounding President Trump's tariff policy.The Central Bank of China's increased gold holdings and the launch of a new programme allowing insurance funds in China to invest in gold have also had a positive effect on the market.In other economic news, the US added 143,000 jobs in January, below economists' expectations, while the unemployment rate remained at 4%.