China’s latest inflation data reveals a clear shift beneath the surface, the AI-driven industrial cycle is now feeding into price pressures , even as consumer demand remains subdued. Key Takeaway China's producer prices rose at the fastest pace in nearly four years, driven by stronger demand for AI-related electronics, computing infrastructure and industrial metals. However, soft consumer inflation suggests domestic demand remains weak, highlighting a growing divergence between industrial activity and consumer spending. AI Demand Is Driving Factory Inflation Producer prices (PPI) rose 3.9% YoY Strong demand from: AI infrastructure buildout Electronics and semiconductors Industrial metals like copper and aluminium The global AI spending wave, especially data centre expansion is now directly influencing China’s upstream pricing power. Consumer Demand Still Lagging CPI grew only 1.2% YoY , below expectations Core inflation softened to 1.1% Weak consumption rem...
Pavilion Real Estate Investment Trust (PAVREIT) and KLCC Stapled Group (KLCC) continue to dominate the luxury shopping scene in Kuala Lumpur, despite the much-anticipated opening of The Exchange TRX Mall, according to Kenanga Investment Bank.
In a recent report, Kenanga revealed that both footfall and sales at TRX Mall have dropped since its initial opening. Many retailers are struggling, with most failing to generate monthly sales above RM1 million. The report suggests that high-net-worth individuals in the Klang Valley still prefer shopping at Pavilion KL and Suria KLCC, largely drawn by their central locations and iconic status, such as the Petronas Twin Towers.
While TRX Mall made a big debut in November 2023 with over 400 stores, including flagship brands like Tiffany & Co and Nike, as well as Malaysia’s first Apple Store, the hype appears to be fading. A Kenanga survey found that only 13% of 25 retailers reported a rise in shoppers compared to the start of 2024. This decline in footfall is partly attributed to the lack of major festivals and affluent Malaysians shopping abroad due to the strengthening ringgit.
Kenanga also noted that Pavilion REIT and KLCC are expected to offer positive returns to investors, as any impact from TRX Mall is likely marginal and already factored into market valuations.
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