Zhimeitong | International Highlights

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[Amazon may exit private-label business entirely, has slashed product listings due to weak sales] Amazon has begun to slash the number of items sold by private-label brands and discussed the possibility of exiting its private-label business entirely to ease regulatory pressure.

As of 2020, Amazon has 243,000 products under its 45 private-label brands, which have been controversial for competing with other sellers on the platform. Amazon’s decision to scale back its private-label brands was partly due to disappointing sales of many products, people familiar with the matter said.

[The Fed may raise interest rates by 75 basis points] On July 17, local time, Fed officials said that in response to high inflation, they may raise interest rates by another 75 basis points later this month. From July 26 to 27, the Federal Reserve will hold a new regular monetary policy meeting. From the 16th, Fed officials entered a period of silence before the meeting. This week, the inflation data released by the United States continued to set a historical record, and expectations for a 100 basis point interest rate hike in July have rapidly increased. However, Fed officials quickly reassured the market, saying that the Fed's single 100 basis point rate hike in July was a bit aggressive, supporting a 75 basis point rate hike in July, and the probability of a 100 basis point rate hike fell immediately.

01. North America

[High inflation, US food banks "cannot afford"] The United States is currently facing the worst inflation in 40 years, and the demand for assistance from food banks across the United States has surged. Food banks are facing multiple difficulties due to factors such as the suspension of temporary government aid programs and poor supply chains.

[Summers denounces the Fed as a big disappointment and expectations are still out of reality] The former US Treasury Secretary issued his harshest criticism ever of the Fed's slow rate hike, saying that the Fed's forecasts are still unrealistic. "In 2021, the Fed has let us down," he said bluntly, saying that the credibility of policymakers has been undermined. “It made mistakes in the core operations of the central bank,” he said, including failing to rely on fiscal stimulus last year. The Fed's mistakes also included "repeated and repeated bad forecasts, and I have to say, it's not fully resolved," Summers said. Fed officials’ median estimate in June showed inflation would fall back toward the 2 percent target by 2024, but unemployment would top out at 4.1 percent, a result he said was a “very implausible” outcome.

[Former US Secretary of State Pompeo intends to participate in the presidential campaign, ready to compete with Trump] Former US Secretary of State Pompeo intends to participate in the 2024 US presidential election, preparing to compete with his former boss, former President Trump, who is also a Republican. Pompeo told The Times that he intends to run in the 2024 presidential election. At present, he has begun to give speeches and campaign activities in Iowa, New Hampshire and California in the United States. Pompeo, 58, was a former CIA director and secretary of state during Trump's presidency.

[Amazon suspends construction of 6 office buildings to design 'hybrid office' space] Amazon.com said it will suspend construction of 6 new office buildings in Nashville, Tennessee, and Bellevue, Washington, in order to prepare for "hybrid work" Redesign the office space. Amazon said the 5,000 jobs created in Nashville and 25,000 in Bellevue would not be affected by the construction suspension.

[Amazon to promote drone delivery service in Texas] US e-commerce giant Amazon announced on July 15, local time, that it will begin to promote drone-Prime Air delivery service in the university town of Texas later this year. .

Amazon said it will work with Texas A&M University to deploy the drones. Amazon consumers in the region will enjoy free drone delivery of thousands of items.

The company says Prime Air can deliver packages weighing up to 5 pounds in less than an hour. In addition, the drone can fly at speeds of up to 50 miles per hour (about 80 kilometers per hour) and fly at altitudes of up to 400 feet (about 122 meters).

[Amazon will release the second quarter 2022 financial report on July 29] On the morning of July 15, Beijing time, Amazon announced that it will release the second quarter of 2022 on July 28, local time (July 29, Beijing time). financial report.

[Facebook greatly adjusts that one account can create 5 personal profiles] Beijing time on July 15th news, Facebook will allow users to have up to 5 personal profile pages. Meta said in a statement that the purpose of adjusting the product is to provide users with a customized experience based on interests and relationships, such as publishing different content for family and friends.

According to the requirements, although users can have up to 5 pages, they can only be managed with one Facebook account. The main page continues to use their real names. After logging in to the account, users can freely access any sub-pages. In this way, users can be semi-anonymized on the Facebook platform, in line with TikTok, Twitter, and Instagram.

[TikTok announces the appointment of a new head of security] On July 15, local time, TikTok announced the appointment of a new head of security, and the popular video application is facing increasing pressure in the United States.

TikTok said in a statement that Kim Albarella has been appointed as the interim head of TikTok's global security team, and she will succeed Roland Cloutier.

[It is reported that Shein, a cross-border e-commerce company, will IPO in the United States as soon as 2024] Shein , a Chinese cross-border fashion e-commerce company focusing on overseas markets, hopes to conduct an initial public offering (IPO) in the United States as early as 2024. Shein's recent executive moves appear to be focused on improving its ESG profile in preparation for a public offering.

[Apple asks federal court to quash app store-related injunction in Epic case] Apple asked a federal court on July 15, local time, to quash an injunction that would allow developers to bypass Apple's App Store payment system and avoid paying commission, which Apple says is legally inappropriate. In Apple's ongoing lawsuit with Epic Games Inc., Apple's lawyers said in the latest filing that there is insufficient evidence that restrictive bootstrap clauses harm competition in the relevant market.

[Microsoft's acquisition of Activision Blizzard is about to be finalized, and it will pass the FTC review as soon as August] Sony has just announced the formal completion of the acquisition of Bungie and Haven Studios, and then Microsoft confirmed to the media that the US Federal Trade Commission may approve Microsoft's acquisition next month. Activision Blizzard.

Microsoft said it had responded to the FTC's second request to send the document, and the FTC now has 30 days to ask Microsoft for further information or it will have to automatically approve the action.

As a result, a deal between Microsoft and Activision Blizzard could materialize as early as August, with numerous IPs including Call of Duty, World of Warcraft, Diablo, Overwatch and Crash Bandicoot. Become part of the Microsoft Xbox umbrella.

[Microsoft and carbon conversion startup Twelve reach a partnership to support new technologies to convert carbon dioxide into aviation fuel] A California startup that develops uses for captured carbon dioxide said on July 14, local time, that it has established a partnership with Alaska Airlines and Microsoft, The CO2-based jet fuel developed by the company will be commercialized.

Twelve is one of a growing number of start-ups in the "carbon conversion" business, which has designed an electrochemical reactor that splits carbon dioxide into compounds that can be turned into so-called electric fuels. Twelve said the agreement with Alaska Airlines and Microsoft will help the company use the fuel for commercial flights and eventually supply some of Microsoft's business travel.

[The U.S. Justice Department may file an antitrust lawsuit against Google within weeks, rejecting the latter's proposal to back down] The U.S. Justice Department is expected to file an antitrust lawsuit against Google within weeks, targeting its dominant position in the online advertising market. It is reported that the US Department of Justice may reject Google's offer of concessions.

[Disney’s ESPN+ sports streaming service will increase the price by 43%] Disney will increase the price of ESPN+ sports streaming service in August, the monthly fee will increase from the current $6.99 to $9.99/month, and the annual fee will increase from $69.99 to $99.99/ year. The price increase, which will take effect on August 23, represents an increase of 43%.

[G20 Finance Ministers and Central Bank Governors Call for Cooperation in Addressing Food Security and Inflation] The G20 Finance Ministers and Central Bank Governors Meeting concluded in Bali, Indonesia on July 16. The meeting focused on food security, cooperation in addressing inflation, etc. consensus on the issue. The Indonesian Finance Minister said that the participants agreed that the world is currently facing food security issues, which require global attention and policy responses. The world should eliminate trade protectionism in order to promote the smooth flow of food from producing countries to consuming countries.

02. EU region

[EU member states should not retain a veto when deciding EU foreign and security policies] On July 17, local time, the German Chancellor published an op-ed in the media, saying that the EU must become a geopolitical participant, and in deciding the EU's EU member states should no longer retain a veto power when it comes to foreign and security policy. Scholz said that the Russian-Ukrainian conflict has changed the security pattern of Europe and the world. Taking this as a turning point, actions need to be taken to safeguard Germany's security, EU sovereignty and international order. Germany has set up a special fund for defense of 100 billion euros, marking the biggest turning point in German security policy.

[Italian economic growth prospects are quite uncertain] On July 16, the Italian Federation of Industrialists released a monthly report that the country's economic growth prospects are quite uncertain. The report wrote that factors such as soaring energy and food prices, high corporate costs leading to lower profit margins, inflation, limited household purchasing power, higher interest rates, weak international trade and other factors are dragging down Italy’s economic growth; on the other hand, epidemic prevention and control The easing of the economy has boosted the summer tourism recovery, the construction sector has also grown, and Italian industrial production has shown some resilience. A weaker euro against the dollar is good for Italian exports, but at the same time pushes up the prices of imported goods, the report said. The report also expects weak economic growth in the euro zone in the coming months.

[Italy's ruling coalition faces crisis] Italian Prime Minister Mario Draghi recently resigned after senators from the five-star movement, a key party in the ruling coalition, did not participate in a vote of confidence in the government. Although President Mattarella rejected his request to resign, it is still unclear whether he will stay in office. The demands of the various political parties in the Italian ruling coalition are quite different. The Draghi government's policies have little room to maneuver, and it is not easy to persist until now. If the crisis leads to early parliamentary elections and a change of government, it may adversely affect Italy's response to the current economic difficulties.

03. Other regions

[UK declares: a state of national emergency] On July 15, local time, the UK declared a state of national emergency and issued the first ever red alert for extreme high temperatures. The country is set to experience extreme heat on July 18 and 19, when the UK could hit 40C for the first time. The previous maximum temperature in the UK was 38.7C in 2019. It is understood that the UK has a temperate maritime climate, and the average temperature in the hottest month usually does not exceed 25 degrees Celsius.

[The third round of voting for the British Conservative Party leader election is coming, and the TV debate will focus on tax issues] The third round of voting for the British Conservative Party leader election will be held on July 18, local time. There will be a second televised debate on July 17, focusing on topics such as tax policy. According to reports, in the previous second round of voting, former British Chancellor of the Exchequer Sunak took the lead, and a total of 5 people entered the third round of voting to be held on July 18. At that time, the one with the fewest votes will be eliminated. However, there is still no clear candidate for the new party leader, and the results of various polls are inconsistent.

[Amazon plans to hire 4,000 employees in the UK this year, with 75,000 permanent employees] Amazon said it will hire 4,000 employees in the UK this year, including fulfillment centers in Wakefield and Knowsley, and its permanent employees will reach 75,000 and making it one of the top ten private sector employers in the country.

[Spain's inflation rate is expected to be around 8% in 2022] The chairman of the Spanish Independent Authority for Fiscal Responsibility said that the agency has updated its macroeconomic forecast for Spain in 2022. The agency's analysis shows that the average inflation rate in Spain in 2022 is expected to be 7.8%, 1.5 percentage points higher than the agency's May forecast; at the same time, the country's GDP growth in 2022 is expected to be 4.3%, higher than May 's forecast was 0.2 percentage points lower. According to EU forecasts, the average inflation rate in Spain in 2022 will be 8.1%, and the GDP growth rate in 2022 will be 4%. The institutions believe that the price situation in Spain in the second half of 2022 will still face great uncertainty.

[Russia plans to ban the entry of freight trucks from EU countries] Russia plans to ban the entry of freight trucks from EU countries from October 1, as a response to the relevant sanctions against Russia promulgated by the EU in April this year.

[Russian government increases export quotas for sunflower oil and oil sunflower cakes] The Russian Prime Minister signed a resolution to set additional quotas for the export of sunflower oil and oil sunflower cakes. The export quota for sunflower oil was increased by 400,000 tons from the previous quota of 1.5 million tons. The export quota for sunflower cake was increased from 700,000 tons to 850,000 tons. The Russian government emphasized that the above decision was made in order to support production enterprises to increase overseas exports, considering the sufficient supply in the domestic market. The relevant quota standards will be implemented until August 31.

[Libya lifts production and export bans on all oil fields and ports] Libyan officials said on July 15, local time, that the country's government, national oil companies and protesters have reached an agreement on reopening oil fields and export terminals. The agreement was announced at a news conference in Benghazi, after the new head of Libya's National Oil Company pledged to end the blockade and double crude output to 1.2 million barrels a day within a week.

Zhimeitong | Logistics Highlights

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[China's export container transportation market has been generally stable in the past week, and the freight rates of most routes have fallen] The weekly report on China's export container transportation market (July 9-15, 2022) shows that the relevant port and shipping companies have actively guided and With the support, we will make every effort to ensure normal production and operation, and the operation of Shanghai Port will remain good. During the week, China's export container transportation market was basically stable, and the freight rates of most routes fell slightly. On July 15, the Shanghai Export Containerized Freight Index released by the Shanghai Shipping Exchange was 4074.70 points, down 1.7% from the previous issue.

[Baltic dry bulk index rose for the first week since mid-June] The Baltic dry bulk index rose on July 15, the first weekly increase since mid-June, due to higher capesize shipping rates. The Baltic Dry Index rose 140 points, or 7%, to 2,150, its highest level since July 4, and was up 4% for the week. The capesize index rose 462 points, or 18.8%, to 2,919, its highest level since June 20, and was up 29% for the week. Average daily earnings for capesize vessels rose by $3,834 to $24,209. The panamax index slipped 35 points, or 1.8%, to 1,885, its lowest level since Feb. 7. Average daily profit for panamax vessels fell $311 to $16,969. The Supramax index fell 11 points to a five-month low of 2,039, its eighth straight weekly decline.

Zhimeitong | Domestic Highlights

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[Customs tax revenue pool in the first half of the year increased by 12.2% year-on-year] It was learned from the General Administration of Customs that the national customs tax revenue pool in the first half of the year was 1,165.3 billion yuan, a year-on-year increase of 12.2%. At the same time, the General Administration of Customs has successively issued ten measures to promote the stability and improvement of foreign trade, and seven measures to help enterprises to reduce costs, promote the implementation of RCEP and other free trade agreements, and reduce taxes by 52.3 billion yuan. Actively assist enterprises to resume work and production, and exempt 14,600 processing trade enterprises from domestic sales deferred tax interest of 47.53 million yuan. 170 million yuan of overdue fines were reduced or exempted for 655 companies that were unable to pay taxes on time due to business difficulties due to the epidemic and voluntarily disclose tax rebates. Implement various import tax reduction policies to reduce taxes by 44.8 billion yuan.