Malaysia sees tremendous synergies between Asean and BRICS as the country takes the chairmanship of Asean next year, promoting inclusivity and sustainability, said Economy Minister Rafizi Ramli. 

He said Malaysia wants to showcase its regional leadership in semiconductors, the energy transition and Islamic finance. 

“Indeed, Malaysia’s application to BRICS is centred on building economic partnerships, strengthening trade ties and expanding our growth potential,” he said in the national statement by Malaysia at the BRICS Outreach/BRICS Plus Summit in Kazan, Russia, on Thursday. 

His speech was telecast live on his official X account on Thursday night. 

“Whether it is Asean or BRICS, there is a commonality in our worldview. As some parts of the world turn inwards, we remain steadfast and will continue to engage openly,” he said. 

He also pointed out that Malaysia is crafting a new position for the country to play as the Asean chairman in 2025. “One that is rooted in economic diplomacy where our centrality and neutrality bridges Asean and BRICS and where we become a focal point for countries that want to push back against the global trend,” he said. 

Rafizi also noted that Malaysia strongly calls for an immediate and permanent ceasefire and to allow unrestricted humanitarian access to Gaza. 

Besides that, he said Malaysia strongly condemns the attack on the United Nations Interim Force in the Lebanon headquarters which injured several peacekeepers.

“The countries of the Global South have continued to be marginalised, and remain under-represented, and the rise of protectionism cripples smaller countries from getting ahead,” he pointed out. 

Hence, he said barriers to development finance impede the building of vital infrastructure and a growing global debt has become a chokehold to growth.

For Malaysia, he said BRICS is not just a rejection of these constraints, but it is also the solution. 

“As the world becomes multipolar, BRICS has become a critical counterbalance. If member countries can embrace seamless economic linkages, the potential is exponential,” he stressed. 

Rafizi said that by promoting greater economic integration, developing countries will have more opportunities in infrastructure investment, technology transfer and capacity building.

Malaysia has been recognised as one of 13 nations officially added to BRICS as a partner country, a bloc that collectively accounts for one-fifth of global trade.

Apart from Malaysia, the other 12 nations are Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Nigeria, Thailand, Türkiye, Uganda, Uzbekistan and Vietnam.

The bloc represents about 40% of the global population and accounts for a cumulative gross domestic product (GDP) of US$26.6 trillion (RM115.4 trillion), or 26.2% of the world’s GDP, nearly matching the economic strength of the Group of Seven.

Source: The edge markets

Last week, Phillips 66 said it would shut down its Los Angeles oil refinery by the end of next year. Now, refining peer Valero Energy Corp is suggesting it could be next.

Valero, the United States’ second-largest refiner by capacity, is keeping all options “on the table” for its two California refineries. According to the company’s Chief Executive Lane Riggs, this is due to the increasing regulatory pressure that has pervaded California.

Oil refiners in California saw lower-than-average margins in late spring/early summer this year as lower operating capacity failed to deliver higher margins. According to the EIA, this is because refiners increased their existing capacity utilization rates.

Despite the lower margins, California boasts the most expensive gasoline in the United States—a condition that the California Governor’s Office blames on refiners. In an attempt to hold refiners accountable, the Office has threatened to penalize them for price gouging.

California, however, has the highest excise duty on gasoline of all the states.

California legislators then adopted a law that allowed authorities to cap refiners’ profits whenever they see fit. Even more recently, California Governor Gavin Newsom signed a bill that would give state energy regulators the power to mandate fuel inventory levels for refiners and the ability to approve—or not—scheduled refinery maintenance.

“Price spikes at the pump are profit spikes for Big Oil,” Newsom said at the time. “Refiners should be required to plan ahead and backfill supplies to keep prices stable, instead of playing games to earn even more profits. By making refiners act responsibly and maintain a gas reserve, Californians would save money at the pump every year.”

Chevron previously cautioned that such action would spell trouble for California refiners and ultimately blowback on end consumers.

Valero operates refineries in Benicia and Wilmington, California.

Source: OILPRICE

New applications for US unemployment aid unexpectedly fell last week, but the number of people collecting benefits in mid-October was the highest in nearly three years, indicating it was becoming harder for those losing jobs to land new positions.

The second straight weekly drop in filings for state unemployment benefits reported by the Labor Department on Thursday likely reflected an ebb in claims from Hurricane Helene, which earlier this month had boosted applications to the highest level in nearly 1-1/2 years. There is a still a chance that claims could rise in the weeks ahead as the impact on the labour market from Hurricane Milton has yet to be felt.

Given the distortions from the hurricanes as well as an ongoing strike at Boeing, economists expected Federal Reserve officials to shrug off any decline in nonfarm payrolls or rise in the unemployment rate when they meet next month. The employment report for October will be published days before Americans head to the polls on Nov 5 to elect a new president.

"The labour market is softening but not imploding," said Carl Weinberg, chief economist at High Frequency Economics. "Fed policy is aimed at supporting the economy and the job market before a recession shapes up. Gradual easing to achieve that goal may achieve it."

Initial claims for state unemployment benefits dropped 15,000 to a seasonally adjusted 227,000 for the week ended Oct 19, the Labor Department said on Thursday. Economists polled by Reuters had forecast 242,000 claims for the latest week.

Unadjusted claims declined by 22,634 to 202,635 last week. A jump of 4,275 in filings in Florida was more than offset by significant decreases in Georgia, North Carolina, New York, Texas as well as Tennessee, Ohio and Michigan.

Though the hurricanes and the strike have obscured the labor market view, there does not appear to be a major material shift.

The Fed's "Beige Book" report on Wednesday described employment as having "increased slightly" in early October, "with more than half of the districts reporting slight or modest growth and the remaining districts reporting little or no change."

It also noted that "many districts reported low worker turnover, and layoffs reportedly remained limited" adding that "demand for workers eased somewhat, with hiring focused primarily on replacement rather than growth."

Boeing's unionised West Coast workers voted on Wednesday to reject a proposed new contract that included a 35% pay hike over four years and enhanced contributions to workers' 401(k) retirement plans.

Continuing claims rise

The number of people receiving benefits after an initial week of aid, a proxy for hiring, rose 28,000 to a seasonally adjusted 1.897 million during the week ending Oct 12, the highest level since mid-November in 2021, the claims report showed.

The so-called continuing claims covered the period during which the government surveyed households for October's unemployment rate. Continuing claims increased between the September and October survey weeks.

The jobless rate dropped to 4.1% in September from 4.2% in August. Its rise from 3.4% in April 2023 to 4.3% in July this year was the trigger for the US central bank's unusually large 50-basis-point rate cut last month.

The first reduction in borrowing costs since 2020 lowered the Fed's policy rate to the 4.75%-5.00% range. The Fed hiked rates by 525 basis points in 2022 and 2023 to curb inflation. It is expected to cut rates by 25 basis points next month.

Source: The edge markets