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Korea Herald
an hour ago
- Business
- Korea Herald
Long Weekend Stays Driving Asian Travelers to Regional Destinations According to Agoda
Hoteliers advised to take advantage of additional public holidays to maximize occupancy and revenue SINGAPORE, June 20, 2025 /PRNewswire/ -- Asia's diverse and regular stream of public holidays is proving to be a boost to the Asia Pacific (APAC) travel industry as Asian tourists look to maximize their leisure time. Digital travel platform Agoda reveals that Asian travelers looking to travel long weekends are largely opting to stay in the APAC region, highlighting an opportunity for hoteliers to capture rising demand for more frequent, short stays. Agoda saw an 80% month-on-month increase in accommodation searches from Malaysia, Indonesia, and Singapore ahead of the Eid long weekend. Favored destinations were Japan, Thailand, China, South Korea and Taiwan. There was a similar trend during the Songkran long weekend in Thailand - with Hong Kong, Osaka, Shanghai and Seoul proving to be top choices. The recent long weekend in Vietnam, which encompassed Liberation Day and Labor Day, saw Bangkok, Singapore, Tokyo and Seoul being the most searched destinations. "The opportunity for hotels and airlines to secure bookings and incentivize travelers to extend their trips and add ancillary items to boost revenue over long weekends has never been greater," said Andrew Smith, Senior Vice President of Supply, Agoda. "Hotels should ensure they are using the right data to target the hottest consumers from across the Asia Pacific region and ensure that their service offerings are tailored to their regional tastes. For example, catering for visitors with large families by ensuring they are able to access larger and joined rooms for family travel." There are still multiple long weekends to come in the region in 2025 including: By proactively offering packages that cater to long weekend stays and micro-vacations, hotels can capitalize on these trends. Some strategies include: Agoda offers a wide range of options to suit these preferences. With over 5 million holiday properties, more than 130,000 flight routes, and over 300,000 activities, Agoda provides endless possibilities for creating unforgettable travel experiences.
Indian Express
4 hours ago
- Business
- Indian Express
As Trump ramps up pressure, the US Fed's job becomes more challenging
In its June meeting, the US Federal Reserve kept interest rates unchanged, maintaining the target range for federal funds at 4.25-4.5 per cent. This is the fourth consecutive meeting when the Fed has refrained from lowering rates. The decision was along expected lines. The Fed has adopted a wait-and-watch approach as it gauges the impact of President Donald Trump's policies on inflation and the economy. The US central bank has now indicated the possibility of two interest rate cuts this year and another cut next year. But there was a notable change of tone in the Fed's policy statement this time. In May, the central bank had said that 'uncertainty about the economic outlook has increased further'. The meeting was held just after Trump's 'Liberation Day' tariff announcements. In the June meeting, however, the Fed noted that 'uncertainty about the economic outlook has diminished', though it still 'remains elevated.' But the effects of tariffs on the economy, and inflation in particular, are beginning to be felt. In his comments, Fed Chairman Jerome Powell noted that in some categories, such as personal computers and audio-visual equipment, price increases were being seen, and that is 'attributable to tariff increases'. However, the full effect on consumer prices will only be visible in the weeks and months ahead once the inventories built up by retailers before the tariffs were imposed are exhausted. Powell has acknowledged that: 'We've had goods inflation just moving up a bit, and, of course, we do expect to see more of that over the course of the summer', he said. In line with this, the central bank has now raised its inflation forecast for the year to 3 per cent, up from 2.7 per cent earlier. It also expects the economic momentum to slow down — it has lowered its growth forecast to 1.4 per cent from 1.7 per cent. The labour market, though, is expected to remain broadly healthy — the Fed has projected the unemployment rate to edge only marginally upwards to 4.5 per cent, from 4.4 per cent earlier — creating the space for it to remain focused on inflation. The Fed's policy continues to draw criticism from the US President. On Wednesday, prior to the Fed meeting, Trump is reported to have said, 'So we have a stupid person, frankly, at the Fed. He probably won't cut today. Europe had 10 cuts, and we had none. I guess he's a political guy.' In the past as well, Trump has been vocal in his criticism of Powell and the direction of the Fed's monetary policy. As Trump continues to ramp up pressure for lower interest rates, the Fed faces a challenging task as it pursues its dual mandate goals of maximum employment and price stability.
Business Times
8 hours ago
- Business
- Business Times
Are we heading for a multi-currency world?
IF EVER there were a country that needed to borrow at preferential interest rates, it is the US with its mounting debts, ageing demographics and evaporating fiscal discipline. If ever there were a country deliberately undermining the reserve currency status that keeps its borrowing costs low, it is the US with its selfish trade agenda, overreaching sanctions and poisonous politics. With China unwilling to take the steps required for the renminbi to replace the US dollar and Europe unable to do what needs to be done on behalf of the euro, the global financial system looks set for a slow unravelling. This will take a long time, but the current trajectory looks headed to a multi-currency world without a global lender of last resort and few certain places to hide in a crisis. A long and slow unravelling For all the debate on the US dollar's decline, of course, it still accounts for 57 per cent of the global reserves, 54 per cent of export invoicing and 88 per cent of foreign exchange transactions. As long as commodity derivatives are mainly priced in US dollars and Hollywood crooks still measure their loot in America's currency, there is a long way to go before the dollar's dominance fades. But investors should start to imagine a world in which the US dollar, renminbi and euro coexist with more equal reach. I have made my own contributions to a vast literature of angst and woe around America's self-destructive behaviour and the risks ahead. But a shrewd analysis by my former Treasury colleagues Charles Collyns and Michael Klein confirms the angst in numbers. They examine 10 events since the late 1990s, when a spike in policy uncertainty led to a flight to safety that strengthened the US dollar against other currencies. They find, however, that in two recent such moments, both coinciding with the start of President Donald Trump's two terms, the opposite is true. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up You may scoff that it is only two data points, but it is enough to wonder if that blood-curdling sell-off in stocks, bonds and the US dollar that followed 'Liberation Day' was an aberration. Trump wrote it off as market 'yips'. Collyns and Klein suggest that the 'dollar smile', a market phenomenon in which the US dollar strengthens in both good times and bad, may be turning into a frown. Stay tuned. Searching for alternatives Meanwhile, consider two other currencies that have actual plans in place to extend their reach for both economic and geopolitical purposes. China has been deliberately boosting the internationalisation of its currency. The Belt and Road Initiative builds infrastructure with loans denominated in renminbi, while a network of currency swap lines helps prime the pump for Chinese currency flows globally. The digital renminbi is at the forefront of modernising payment systems that will surely fuel adoption overseas. But even as the largest trading partner for 120 countries, China cannot expect broad use of its currency as long as it is not freely convertible. And even if President Xi Jinping or his successors take this bold step someday, the absence of independent regulators in a single-party system means that anyone holding renminbi will wonder when the rules might change again. If China may be unwilling to take the required steps to make its currency convertible, Europe looks unable. Last month, European Central Bank president Christine Lagarde outlined the concrete steps ahead for the euro to become a more reliable global currency that would reduce Europe's borrowing rates, insulate European businesses from exchange rate volatility, and reduce the continent's geopolitical dependence on an increasingly unpredictable America. The problem is that many of her steps depend on some magical thinking about domestic politics in places like France, Germany and Italy. 'A steadfast commitment to open trade' and 'deeper and more liquid capital markets' look well within reach. But 'underpinning (trade) with security capabilities' and 'uniting politically so that we can resist external pressures' sound far-fetched at best. All this means we may be headed for a much more confusing monetary world. Helene Rey of the London Business School makes her own case for the euro, but also reminds us of the theory of hegemonic stability advanced in Charles Kindleberger's study of the Great Depression. An open and stable international system, in this view, depends on a single great power. Imagine a crisis in which no single central bank can restore liquidity and confidence to markets. Worse, imagine if two or three central banks try to secure leverage by making their liquidity conditional. Or perhaps they just miscalculate and miscommunicate, leaving investors scurrying for hiding places in cryptocurrency and precious metals. We may still be a long way from such a world, but the closer we approach, the rougher the ride will be. OMFIF The writer is managing partner of Arbroath Group and writes the Leading Thoughts column on Substack. This article was first published by the Official Monetary and Financial Institutions Forum
New Straits Times
21 hours ago
- Business
- New Straits Times
Swiss National Bank cuts rates to zero as inflation turns negative, global risks mount
ZURICH: The Swiss National Bank (SNB) lowered its key interest rate to zero per cent on Thursday, citing weakening inflation, sustained strength in the Swiss franc, and growing uncertainty surrounding the global economic outlook. The SNB reduced its policy rate by 25 basis points from 0.25 per cent, in line with market expectations and a Reuters poll. It was the central bank's sixth straight cut since it began easing in March 2024. The move brings Switzerland back to the brink of negative interest rates, a policy last seen from 2014 to 2022, and one that was deeply unpopular with banks, savers, and insurers. "Inflationary pressure has decreased compared to the previous quarter. With today's easing of monetary policy, the SNB is countering the lower inflationary pressure," the central bank said in a statement. Swiss annual inflation turned negative in May for the first time in four years, slipping outside the SNB's target range of 0–2 per cent. Although the franc initially strengthened after the announcement, it later traded steady against the US dollar at 0.8191. In its baseline scenario, the SNB said it expects global economic growth to weaken in the coming quarters, with inflation rising in the United States but falling further in Europe. The bank also highlighted persistent risks due to potential increases in trade barriers and escalating geopolitical tensions. "The outlook for the world economy remains subject to high uncertainty," the SNB said, adding that stronger-than-expected fiscal support in some economies could offset the downside risks. Pressure from a strong franc The SNB's move comes amid a flurry of central bank decisions. Earlier Thursday, Norges Bank unexpectedly cut rates for the first time in five years, while the Bank of England is due to announce its decision later in the day. The US Federal Reserve held its policy rate steady on Wednesday, though signalled that rate cuts remain on the table later this year. The European Central Bank trimmed its own rate by 25 basis points earlier this month. "The SNB has cut rates because the franc is stronger and the economic outlook in Switzerland is weaker following the 'Liberation Day' tariffs," said Alessandro Bee, economist at UBS, referring to the sweeping trade tariffs introduced by US President Donald Trump in April. "The SNB wants to prevent a further appreciation of the franc, which could help Swiss exporters and also prevent inflation falling further." EFG senior economist GianLuigi Mandruzzato said that although May's inflation decline was modest, the real impact of the stronger franc on consumer prices would likely materialise in the coming months. He added that the SNB may now pause its rate cuts, barring a significant economic downturn. "All options remain on the table, including negative interest rates and foreign exchange market interventions," said Mandruzzato. "But for them to be deployed, a further, meaningful deterioration of the outlook would be needed." Two-year Swiss government bond yields remain in negative territory, signalling that markets expect the SNB may dip below zero in the coming months. The franc has gained around 11 per cent against the dollar so far in 2025, as risk-averse investors piled into safe-haven assets. This has had a disinflationary effect by reducing the cost of imported goods. Although the SNB has left the door open for foreign exchange interventions, the US Treasury Department recently added Switzerland to its watchlist of countries being monitored for potential currency manipulation. "The SNB's main concern may not be avoiding the impression of being a currency manipulator," said Karsten Junius, chief economist at J. Safra Sarasin. "Still, it is politically wise not to appear too trigger-happy to go negative with the policy rate."
Mint
a day ago
- Business
- Mint
US Fed revises growth, inflation forecasts: Is US economy entering stagflation? How may it impact Indian stock market?
As expected, the US Federal Reserve left the policy rate unchanged at 4.25 per cent to 4.50 per cent on June 18, reiterating the risks arising from the trade war triggered by President Donald Trump's tariff policies. The Fed remains in "wait-and-watch' mode as it is early to authentically assess the real effective impact of Trump's tariffs on the world's largest economy. Amid tariff-led uncertainty, the Fed believes inflation will rise and growth will falter in the US. Fed Chair Jerome Powell said inflation may accelerate over the summer as the impact of President Donald Trump's tariffs reaches US consumers. The Fed forecast GDP growth of 1.4 per cent in 2025, down 0.3 per cent from the March meeting. By the end of the year, it sees unemployment rising to 4.5 per cent and inflation at 3 per cent, well above the current level. The Fed's outlook for the US economy carries hues of stagflation. At the current juncture, the US economy is in healthy shape. Inflation eased surprisingly in May, even though experts expected a spike after Trump's "Liberation Day" tariff announcements on April 2. The US consumer price index (CPI) increased 0.1 per cent month-on-month in May, while year-on-year it rose 2.8 per cent. K. Joseph Thomas, the head of research, Wealth Management at Emkay Global Financial Services, pointed out that inflation fell in the US, as in the run-up to tariff announcements, consumer spending spiked in the US, which subdued the price impact to some extent. However, Thomas highlighted that the Fed is still wary of the likely nature of the incoming inflation data, and they believe that the fog of uncertainty is still clouding the vision. Therefore, any future rate cuts would be data-dependent. "A close look at the US growth and inflation numbers underlines the potential for economic growth to slow down further, with growth numbers coming down sequentially, and the latest number indicating a contraction. The numbers point to the potential for stagflation, and no full-fledged stagflation exists at present," said Thomas. Devarsh Vakil, Head of Prime Research at HDFC Securities, observed that the US economy is experiencing a period of measured deceleration, with real GDP growth projections revised downward to 1.4 per cent for 2025 and 1.6 per cent for 2026, representing a notable reduction from earlier March forecasts. This moderation reflects both cyclical adjustments and policy-driven uncertainties that are reshaping economic dynamics. While the US economy currently navigates a complex environment of slowing growth and persistent inflation pressures, Vakil underscored that the combination of labour market strength, measured wage growth, and responsive monetary policy significantly reduces the probability of a stagflationary outcome in the near term. "Key risk factors to monitor include the evolution of trade policy impacts, trends in consumer confidence, and the Federal Reserve's ability to strike a balance between its dual mandates. Success in managing these elements will largely determine whether the current economic deceleration represents a healthy adjustment or a more concerning structural shift," said Vakil. A slowdown in the US economy may not have a direct impact on India, given that the Indian economy is largely driven by domestic demand. However, the US Federal Reserve's interest rate decisions will influence the movement of the dollar and could affect the investment stance of foreign portfolio investors (FPIs). A prolonged pause by the Fed may also delay rate cuts by other central banks, potentially tightening global liquidity conditions. Thomas believes US-centric developments may not seriously affect domestic economic growth, which is driven mostly by domestic demand. "External factors may have only a fleeting influence on the macro variables or the markets. The fundamentals being strong for the economy beyond the immediate future, the domestic market is expected to further progress in its secular uptrend," said Thomas. The Fed's reluctance to reduce rates may also lead to caution among other central banks, including the RBI. "The expediency to lower the rates is lowered for the other central banks. This applies to the RBI too, and the RBI has already moved away from an accommodative stance to a neutral stance. The decline in the dollar against currency majors may face some immediate challenges. The reversal of the trend witnessed so far may gradually get reflected in the dollar index," said Thomas. Vakil pointed out that the weakening US dollar, primarily due to escalating concerns over the mounting debt burden and fiscal sustainability of the US, is creating additional incentives for USD-based investors to explore offshore opportunities. "A depreciating dollar not only erodes the relative attractiveness of US assets but also enhances the appeal of foreign investments when converted back to dollars," said Vakil. Vakil believes emerging markets, particularly India, are positioned as primary beneficiaries of this capital reallocation, offering compelling growth prospects, improving corporate governance, and attractive valuations relative to developed markets. "India's robust economic fundamentals, expanding market capitalisation and increasing inclusion in global indices make it an attractive destination for investors seeking alternatives to US market exposure," said Vakil. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
