Business

WASHINGTON (AFP) — TikTok unveiled plans to allow users to buy products while using the video-sharing app in a partnership with e-commerce platform Shopify.

The social media app said it would begin pilot-testing TikTok Shopping with a group of Shopify merchants in the United States, Britain and Canada in the coming weeks. 

"TikTok Shopping will bring new features that help Shopify merchants create engaging, organic content that sends consumers directly to their online store for checkout, making it easy for people to explore and buy the products they discover on TikTok," said a statement from the app owned by China-based ByteDance.

Blake Chandlee, head of global business solutions at TikTok, said the app "is uniquely placed at the centre of content and commerce, and these new solutions make it even easier for businesses of all sizes to create engaging content that drives consumers directly to the digital point of purchase."

Harley Finkelstein, Shopify president, said the partnership will help boost platform "creators" who promote products online by "enabling new in-app shopping experiences and product discovery on TikTok for the first time".

"Shopify is powering the creator economy on one of the fastest-growing social and entertainment platforms in the world," he said. "We are excited to help this next generation of entrepreneurs connect with their audiences."

The news comes amid rising interest in "social commerce" that is expected to be worth some $36 billion in the United States this year, according to the research firm eMarketer.

An eMarketer report said Facebook was leading this segment, and that an estimated 56 million US residents would be making at least one purchase on the leading social network this year.

TikTok came under pressure last year from US former president Donald Trump, who claimed the platform represented a national security risk because of its links to China.

Joe Biden's administration shelved plans to ban TikTok or force a sale to US investors, instead ordering a national security review of foreign-controlled platforms.

LONDON — Bitcoin rose back above $50,000 on Monday for the first time in three months after supportive news from payments giant PayPal and cryptocurrency platform Coinbase.

The world's most popular virtual unit jumped to $50,440 during Asian trade, before easing to $50,350 in early morning London deals.

"Bitcoin continues its recent recovery, moving above the $50,000 mark it last attained in May though still some way short of its $65,000 record as PayPal announces plans to launch its cryptocurrency trading platform in the UK," said AJ Bell analyst Danni Hewson.

PayPal has announced that it will begin to allow users in Britain to buy, hold and sell cryptocurrency through its platform for the first time.

The expansion into the hot digital money trend follows similar moves by the payments giant in the United States earlier this year.

Bitcoin won another shot in the arm on Monday from last week's news that Coinbase was ploughing cash into the unit.

"The news last week that Coinbase will buy $500 million (427 million euros) in cryptos to put on its balance sheet and put 10 per cent of quarterly profits into a crypto portfolio has lent support to sentiment," noted Markets.com analyst Neil Wilson.

Blistering run 

Bitcoin enjoyed a blistering run earlier this year but in mid-May it began tumbling on a range of issues, including China's crackdown on cryptocurrencies and Tesla boss Elon Musk's decision to stop accepting it on concerns about the environmental impact of mining.

The electric carmaker has since indicated its support for Bitcoin, while several other high-profile investors including Twitter founder Jack Dorsey have flagged their interest.

It has now risen more than 70 per cent from the six-month lows below $29,000 touched in June, while speculation is swirling that it could begin its push towards $100,000.

However, Bitcoin is still a long way off its record just below $65,000 that it achieved in April.

LONDON — Oil prices soared and stocks rebounded Monday on bargain-buying from last week's blow-out, with traders riding a wave of optimism following pre-weekend Wall Street gains.

"Markets enter the new week with some renewed optimism, having ended the previous week's tumultuous ride in positive fashion," noted Interactive Investor analyst Richard Hunter.

"Although volatility is likely to persist given lighter summer volumes, the weakness which the markets endured for the majority of the previous trading sessions tempted some investors to buy on the dips."

The gains were mirrored in oil markets, with both main contracts enjoying big gains of over 5 per cent.

After having suffered heavy losses recently owing to concerns that the Delta variant of the coronavirus would impact demand as countries restrict people's movements, investors were reassured by the fact China reported no new local COVID-19 cases on Monday for the first time since July.

Fears about the much more contagious variant have rattled world markets as it forces some governments to reimpose containment measures, which depresses demand for oil as people cannot travel.

"It is a good sign that there were apparently no new cases recorded over the weekend in China," said Commerzbank analyst Carsten Fritsch.

Sentiment was also jolted last week by minutes from the US Federal Reserve's July meeting indicating it could start withdrawing its vast financial support by year-end.

The colossal bond-buying programme and record-low interest rates have been a key pillar of the global recovery for more than a year, and the prospect of the cash being withdrawn has stalled that advance.

However, Dallas Federal Reserve chief Bob Kaplan, who is considered a policy hawk, suggested he could rethink his view to taper soon in light of the Delta variant's global march, which is showing signs of hobbling economic growth.

The focus is now on Fed chief Jerome Powell's speech to the Jackson Hole annual conference of central bankers and finance chiefs on Friday, with hopes for a clue about a taper timetable.

"The data in recent months have been fantastic but the outlook is becoming increasingly downbeat," said OANDA analyst Craig Erlam.

"Jackson Hole looked the ideal platform for a taper warning, but now officials may be more inclined to see how the data unfold over the weeks before the September meeting before dropping any major hints," he said.

Bitcoin topped $50,000 on Monday for the first time in three months after supportive news from payments giant PayPal and cryptocurrency platform Coinbase.

The virtual unit jumped to $50,440 during Asian trade, before easing to $50,350 in early morning London deals.

"Bitcoin continues its recent recovery... as PayPal announces plans to launch its cryptocurrency trading platform in the UK," said AJ Bell analyst Danni Hewson.

PayPal will this week begin to allow users in Britain to buy, hold and sell cryptocurrency through the online payment platform for the first time.

DUBAI — Alongside a grinding seven-year military conflict, Yemen's government and the Houthi rebels are locked in battle on another front — a currency war that has opened up a gulf in riyal values.

Both the government and the Iran-backed Houthis used the same notes until late 2019 when the rebels banned new banknotes printed in government-run Aden, due to concerns about inflation. 

The resulting difference in money supply has since seen the riyal's value plummet to around 1,000 to the dollar in government areas, while the value in Houthi-controlled zones has held relatively stable at 600. 

Citizens and businesses in both government and rebel-controlled zones have been left out of pocket by the divergence, but especially those in the former, given rampant inflation there.

This internal exchange rate has also complicated trade and led to manipulation by profiteers, to the detriment of most in a country on the verge of famine. 

"Right now, we have... an exchange rate of the same currency inside the country," said Amal Nasser, an economist with the Sanaa Centre for Strategic Studies. "This is bizarre from an economic perspective." 

According to Nasser, other experts and ordinary Yemenis, the gap between the two currency values meant higher transfer costs between the two zones.

Yemen's conflict has split the country between the mostly Houthi-controlled north, and the south under the internationally-recognised government which relocated the central bank to Aden after the insurgents seized Sanaa in 2014. 

The war has pushed the nation, long the poorest on the Arabian Peninsula, to the brink of famine and economic collapse, with most schools, factories, hospitals and businesses either destroyed or closed.

As the riyal plummeted to new lows in recent weeks in government areas, the central bank there pledged to withdraw the series of banknotes which had accumulated in its territory after the Houthi ban in late 2019.

The central bank in Aden was caught out because it had expected the new notes to eventually spread evenly through both zones, but the concentration of supply in the government zone stoked inflation there and spurred the exchange rate divergence.

The government this month introduced a stockpile of what it claims were old bills, drawing the ire of the rebels who accused it of minting new, "counterfeit" money. 

Rebel authorities also banned their use and issued civilians with guides to identify the so-called "fakes" — something experts said would be hard for an average citizen to do. 

"Obviously, this new injection of money will affect the economy negatively, increase inflation and affect the citizen's purchasing power," Alaa Al Haj, an Aden resident said.

Yemenis were already battling soaring living costs in a country where more than 80 per cent of people are dependent on international aid.

The Houthis have accused Goznak, a Russian state-owned company, of colluding with the central bank of Aden to print "large amounts of counterfeit currency" this year — "in particular 1,000 riyal notes" to pass new bills off as old. 

Wahid Al Fawdai, an adviser to the central bank, said the bills the government recently put into circulation had been in the central bank reserves for several years. 

Goznak and the central bank did not comment when contacted by AFP. 

Social media and newspapers are rife with stories of profiteers exploiting the unstable economic situation. 

Some people have used the rate discrepancies as an opportunity to cash in, including by using the newly issued "old" notes in Aden to buy up those printed after 2017 at a discount of around 20 per cent.

Experts spoken believe that the new "old" notes have a strong chance of permeating largely undetected into Houthi areas, since they are hard to distinguish from the earlier old notes. 

Ultimately, this should help the central bank in closing the gap in the exchange rate between the two zones, they said.

NEW YORK — Aiming for a bigger presence in US brick-and-mortar retail, Amazon plans to open "several" multipurpose shopping venues similar to department stores, The Wall Street Journal reported on Thursday.

The stores will sell household items, electronics and apparel, showcasing Amazon's private-label merchandise, the newspaper said, citing people familiar with the matter. 

Some of the first stores are expected in California and Ohio, according to the report.

An Amazon spokesperson said, "We do not comment on rumours and speculation."

The move would come on the heels of Amazon's 2017 acquisition of the Whole Foods Market grocery chain for $13.7 billion, which significantly expanded the e-commerce giant's presence in physical retail.

At around 30,000 square feet, the new shops would be far smaller than traditional department stores but bigger than most existing physical retailers in the company's network, which includes bookstores and smaller grocery shops. 

Department stores were once prominent spaces in American retail, showcasing not only high-end fashion but also items such as toys, furniture and appliances.

But like other brick-and-mortar shops, department stores have lost market share to online vendors, as well as big-box stores including Walmart and Target. 

Chains such as JC Penney and Macy's have closed dozens of outlets at US malls over the last few years, with the former company also shifting owners following a reorganisation overseen by a bankruptcy court. Without those big anchor stores, malls too have been in steady decline.

Analysts pointed to several strategic reasons for Amazon's planned expansion into physical retail, including the desire to boost sales in apparel, home furnishings and other product lines and a recognition that the "future of retail is multichannel" rather than primarily online, GlobalData Retail's Neil Saunders said in a note.

"The move by Amazon will be experimental at first," Saunders said. "However, if it gets rolled out in a serious way, it is very bad news for traditional department stores."

WASHINGTON — Despite its swift takeover of the government in Afghanistan, the Taliban will not have access to most of the nation's cash and gold stocks, while the International Monetary Fund (IMF) said it won't provide aid.

A spokesperson for the Washington-based crisis lender on Wednesday said it had decided to withhold its assistance to Afghanistan amid uncertainty over the status of the leadership in Kabul.

"There is currently a lack of clarity within the international community regarding recognition of a government in Afghanistan, as a consequence of which the country cannot access... IMF resources," the official said.

Central bank governor Ajmal Ahmady said on Twitter the Da Afghanistan Bank (DAB) had around $9 billion in reserves, but most of that is held overseas, out of reach of the Taliban.

"As per international standards, most assets are held in safe, liquid assets such as Treasuries and gold," said Ahmady, who fled the country on Sunday, fearing for his safety as the Taliban swept into the capital.

The US Federal Reserve holds $7 billion of the country's reserves, including $1.2 billion in gold, while the rest is held in foreign accounts including at the Basel-based Bank for International Settlements, Ahmady said.

A US administration official said on Monday that "any central bank assets the Afghan government have in the United States will not be made available to the Taliban."

Amid reports the Taliban were quizzing central bank staff on the location of the assets, Ahmady said, "If this is true -- it is clear they urgently need to add an economist on their team."

He repeated that Washington on Friday had cut off cash shipments to the country as the security situation deteriorated, which may have fueled reports the Taliban stole the reserves since the country's banks could not return dollars to account holders.

"Please note that in no way were Afghanistan's international reserves ever compromised," and are held in accounts that are "easily audited," Ahmady said.

No SDRs for Kabul 

The IMF's aid would include an existing $370 million loan program, as well as access to reserves in the form of Special Drawing Rights (SDR), the lender's basket of currencies.

"As is always the case, the IMF is guided by the views of the international community," the fund official said.

The International Monetary Fund has taken similar action against other regimes not recognized by a critical mass of member governments, as in the case of Venezuela.

The IMF is set to distribute 650 billion in SDRs on August 23 to all eligible members, of which Afghanistan's share was valued at about $340 million, Ahmady said.

The IMF in June released the latest installment of the $370 million loan to Afghanistan approved in November and aimed at helping support the economy amid the Covid-19 pandemic.

The World Bank has more than two dozen development projects ongoing in the country and has provided $5.3 billion since 2002, mostly in grants. 

The status of those programs is unclear as the development lender works to pull staff out of the country.

An internal memo to World Bank personnel obtained by AFP said "senior management is working around the clock to arrange an urgent evacuation of our staff and their family members."

Meanwhile, Western Union announced Wednesday it was temporarily cutting off wire transfers to the country -- another vital source of cash for the people.

WASHINGTON — As the US real estate market continues to see strong demand while grappling with supply bottlenecks and high prices, government data released on Wednesday showed the pace of new homebuilding slowing in July.

Housing projects started last month fell seven per cent compared to June to an annual rate of just over 1.5 million units, seasonally adjusted, the Commerce Department said, a drop far greater than economists had expected. 

Fueled by bargain borrowing rates, home prices have risen steadily for months, as a struggle to find workers and shortages of lumber and other goods has eroded builder confidence and prompted some to put projects on hold, according to an industry survey.

That was reflected in the government data that showed new single-family projects fell 4.5 per cent and construction started on apartments dropped 13.6 per cent.

The Northeast saw the steepest declines, plunging 49 per cent, while the South saw a small increase, according to the report.

"Solid housing demand and sparse inventory will give builders strong reasons to maintain solid levels of construction," said Oren Klachkin of Oxford Economics. "However, high materials prices, a limited supply of workers and limited land availability will constrain activity."

But new building permits issued in the month rose 2.6 per cent, breaking a string of declines and signaling more projects are in the pipeline.

Overall, housing starts are 2.5 per cent above the same level of 2020.

Mike Fratantoni, chief economist of the Mortgage Bankers Association, said homebuilding should pick up as supply chain struggles ease.

"There are now almost 690,000 single-family homes under construction — the largest number since 2007. This is clearly a positive sign given the remarkably low levels of inventory on the market," he said.

NEW YORK — Walmart lifted its full-year forecast on Tuesday following another solid performance at its US stores in the second quarter even as e-commerce growth slowed compared with earlier in the pandemic.

Executives from the US retailer reported brisk demand from shoppers, noting an uptick in store traffic in the most recent three months as more consumers have been vaccinated.

But they said they were monitoring the Delta variant of COVID-19, which has led to new restrictions in some parts of the United States. Late last month, Walmart reinstituted a mask requirement for employees in areas with high infection rates. 

The upbeat outlook assumes "a continued strong US economy with no new significant government stimulus for the rest of the year", Chief Financial Officer Brett Biggs said on a conference call with analysts.

Walmart revenues rose 2.4 per cent to $141 billion in the quarter, as US stores enjoyed a 5.2 per cent jump in comparable sales, while international revenues fell following a series of divestitures.

Profits dropped 34 per cent to $4.3 billion compared with the comparable quarter of 2020.

Walmart Chief Executive Doug McMillon said the results show "our ability to serve customers in challenging environments and across multiple channels, formats and countries".

The company saw an especially strong performance in grocery, where it grew US market share and it enjoyed solid pricing.

US e-commerce sales grew 6 per cent in the second quarter after nearly doubling in the year-ago period.

Rising prices 

Walmart's status as a value store has been beneficial as US stimulus programs are phased out amid rising consumer worries over inflation.

Rising inflation "has increased price sensitivity among consumers and sent some scrambling" to cut back on spending, said Neil Saunders, an analyst at GlobalData. 

"This trend has been exacerbated by the withdrawal of some enhanced benefits and stimulus payments, which have made households more budget conscious."

Biggs acknowledged that company performance has been boosted somewhat by US government aid packages, saying, "we know we've benefitted from stimulus, but the underlying business is very strong."

Besides grocery, Walmart also said sales were strong in pets, beauty and baby products, while apparel and travel-related goods were in demand as customers socialise more as COVID-19 vaccines became widely available and businesses were able to reopen.

Executives also described brisk demand in the "back-to-school" season in the current quarter, especially in clothing and stationary.

Besides the Delta variant, executives described supply chain difficulties as a focus of attention. 

The chain's merchants are adding lead time to orders and chartering vessels especially for Walmart goods. Still, out-of-stocks are running "above normal given strong sales and supply constraints", Biggs said.

Walmart raised its full-year sales outlook to "slightly positive" after previously projecting a decline. The outlook for earnings per share of $6.20 to $6.35 is also higher than the firm's earlier forecast.

Shares rose 0.8 per cent to $150.05 in early trading.