TOKYO (Reuters) – Japan’s core machinery orders likely fell in August, a Reuters poll found on Friday, reversing the previous month’s gain as the coronavirus pandemic weighed on business investment.

Worsening earnings have discouraged businesses from investing, with the world third-largest economy only just emerging from its worst post war contraction.

Core machinery orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, likely slipped 1.0% in August from the previous month, the poll of 17 economists showed. The fall would follow a 6.3% gain in July.

From a year earlier, core orders, which exclude those for ships and electrical utilities, are projected to have fallen 15.6% in August following a 16.2% drop in July.

“A rapid deterioration in corporate earnings and uncertainty over the outlook will prompt firms to refrain from carrying out business investment,” said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.

“There may be IT-related investment by firms going ahead, but overall business investment is expected to be weak.”

The Cabinet Office will release the machinery orders data at 8:50 a.m. on Monday, Oct. 12 Tokyo time (2350 GMT Oct. 11).

The Bank of Japan’s corporate goods price index (CGPI), which measures the prices companies charge each other for goods and services, likely fell 0.5% in September from a year earlier, the poll found, reflecting weak domestic demand.

(Reporting by Kaori Kaneko; Editing by Sam Holmes)

Copyright 2020 Thomson Reuters.

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SEOUL (Reuters) – Samsung Electronics Co Ltd’s third-quarter profit likely jumped 58% to its highest in two years, beating analyst estimates as U.S. restrictions on China’s Huawei boosted the South Korean tech giant’s phone and chip sales.

U.S. action against Huawei Technologies Co Ltd has dampened demand for its phones outside of China, giving a leg up to Samsung, analysts said, while the Chinese firm also hurried to order more chips from Samsung after Washington moved to choke its access to commercially available chips from mid-September.

Samsung said on Thursday operating profit was likely 12.3 trillion won ($10.6 billion) for the three months ended September, well above a Refinitiv SmartEstimate of 10.5 trillion won. It would be the strongest result since 17.57 trillion won in the third quarter of 2018.

Revenue likely rose 6% from the same period a year earlier to 66 trillion won, the company said.

Samsung released only limited data in Thursday’s regulatory filing ahead of the release of detailed earnings figures later this month.

“It seems Huawei’s impact on Samsung’s chip business was bigger than the market expected, and there was a big surprise in the smartphone and home appliance businesses,” said CW Chung, head of research at Nomura in Korea.

MOBILE PROFIT BOOST

Samsung was expected to post its biggest smartphone profit in at least four years, analysts said, as it gained market share from Chinese rivals and the coronavirus pandemic helped cut marketing costs.

Washington, which says Huawei is a vehicle for Chinese state espionage, has tightened restrictions on the firm, hurting demand for Huawei phones in Europe and other countries and boosting Samsung’s sales at a time when markets outside China are recovering from COVID-19 lockdowns, analysts said.

FILE PHOTO: The logo of Samsung Electronics is seen on

BERLIN (Reuters) – Orders for German-made goods rose 4.5% in August, more than expected, boosting hopes for a robust third-quarter in Europe’s largest economy after the coronavirus shock.

The increases were driven by demand from the euro zone, the Federal Statistics Office said on Tuesday, suggesting companies are making good progress back to pre-crisis levels. A Reuters forecast had predicted a 2.6% gain on the previous month.

“The catch-up process for new industry orders is continuing at a remarkable pace,” the economy ministry said in a statement.

Order intake was now only 3.6% lower than in February, before lockdown measures were imposed to slow the spread of the coronavirus, the office said.

Economists applauded the strong data, but cautioned that rising infection rates across Europe were increasing the risk of setbacks.

“It is difficult to imagine how German manufacturing could escape another round of lockdown measures with important trading partners,” said ING Bank economist Carsten Brzeski.

“Nevertheless, today’s industrial order data suggest that full order books – at least in the near future – could help the manufacturing sector to overtake the service sector.”

Official figures released last week showed German retail sales rose much more than expected in August and unemployment fell further in September, boosting hopes that household spending would power a recovery.

Figures from the statistics office showed that orders from abroad increased by 6.5%, boosted by a 14.6% surge in orders from the rest of the euro zone. Domestic orders rose by 1.7% on the month.

The German economy contracted by 9.7% in the second quarter as household spending, company investments and trade collapsed at the height of the pandemic.

An easing of lockdown measures, coupled with an unprecedented array of rescue and stimulus packages, has led to a robust recovery in the third quarter, but

BEIJING (Reuters) – Activity in China’s factories extended solid growth in September as payrolls expanded for the first time this year and overseas demand surged, a private survey showed on Monday, adding further momentum to an economy recovering from the coronavirus crisis.

The Caixin/Markit Manufacturing Purchasing Managers’ Index(PMI) barely budged from the previous month, down fractionally to 53.0 from August’s 53.1, with the gauge staying above the 50-level that separates growth from contraction for the fifth consecutive month.

Analysts polled by Reuters had forecast the headline index to remain steady at 53.1.

China’s vast industrial sector is steadily returning to the levels seen before the pandemic paralysed the economy early this year. Pent-up demand, stimulus-driven infrastructure and surprisingly resilient exports have been the main drivers propelling the rebound.

“The recovery in manufacturing has maintained its momentum in the wake of the Covid-19 epidemic, with both the supply and demand surging,” Wang Zhe, senior economist at Caixin Insight Group, wrote in a note accompanying the Caixin survey release.

“The sharp rise in overseas demand has complemented the domestic market,” Wang said.

The Caixin survey showed total new orders recorded the strongest increase in September since January 2011, and the gauge for new export orders- which were hit hard by the global outbreak of the coronavirus – rose at the fastest pace in over three years.

Factory output softened slightly from August but remained strong, while input prices grew faster than prices charged, putting pressure on profit margins.

The Caixin survey focuses more on small and export-oriented firms while the official survey, also released earlier on Wednesday, largely tracks large companies and state-owned enterprises.

The private survey also showed Chinese factories expanded payrolls for the first time in ten months, although only slightly.

“However the job market remains worrisome, as the improvement

  • Walmart Canada more than tripled its preorders of Tesla Semi trucks, increasing its reservations to 130 vehicles. 
  • The company intends to electrify 20% of its fleet by 2022, and to run its entire fleet on alternative power by 2028. 
  • Tesla originally said the Semi would be available in 2019, but now says deliveries will start next year. 
  • Visit Business Insider’s homepage for more stories.

In recent weeks, headlines in the electric-truck space have been filled with Nikola — a startup contending with fraud allegations, a Department of Justice inquiry, the exit of its controversial founder, and a plummeting share price.

But look a little further and the Tesla Semi, currently the subject of a lawsuit from Nikola over patent infringement, just upped its order count. 

Walmart Canada announced Tuesday that it had more than tripled its reservations of the electric 18-wheelers, upping its total number of Semi orders to 130. Walmart Canada reserved 10 Semi trucks following Tesla’s reveal of the new truck back in November 2017, and ordered 30 more the following year. 

“Tripling our reservation of Tesla Semi trucks is part of our ongoing effort to innovate the business and prioritize sustainability,” said John Bayliss, senior vice president of logistics and supply chain at Walmart Canada. 

The electric Tesla Semis will reduce Walmart Canada’s operating costs while improving the sustainability of its fleet, the company said. Walmart Canada also cited the Semi’s safety features — including emergency braking, lane-keep assist, and lane-departure warning — as reasons for making the switch. 

The new order comes as part of Walmart Canada’s plan to convert 20% of its fleet to electric by 2022, and to run its entire fleet on alternative power by 2028. 

The company’s parent organization, Walmart Inc., aims to reduce its global carbon emissions to zero by 2040,