24 April 2018

Macro Economy

  • The EU is said to have made a formal request to join the WTO consultations in relation to the US-China steel tariffs row. Photo: Bloomberg

    EU seeks to join US-China steel dispute at WTO

    Apr 24, 2018 9:36am
    The European Union asked on Monday to join a dispute brought by China to the World Trade Organization (WTO) over US import tariffs on steel and aluminum, Reuters reports. The Trump administration had set duties of...
  • Shenzhen has developed an ecosystem that has substantially shortened the product development cycle for a much lower cost. Photo: Reuters

    Why rampant copying hasn’t stopped Shenzhen’s advance

    - Apr 23, 2018 10:22am
    Shenzhen is known as the capital of knockoffs. If a company wants to leverage on Shenzhen’s strong manufacturing ability, it has to be prepared for the very real possibility of its proprietary ideas being copied. That’s...
  • Vietnam reported an inflation-adjusted GDP growth of 7.4 percent in the latest quarter, outpacing China, and is on track to maintain a similar level of growth for the year. Photo: Bloomberg

    The ‘Next Eleven’ and the world economy

    - Apr 23, 2018 10:21am
    On a recent holiday in Vietnam, Cambodia, and Laos, I couldn’t resist thinking about these countries’ economic potential and ongoing policy challenges. After all, in 2005, my Goldman Sachs colleagues and I had listed Vietnam as...
  • Household consumption as a share of GDP fell in 2017 after consistently rising for six years. Photo: Reuters

    Is China’s economy really rebalancing?

    - Apr 20, 2018 4:04pm
    Amid the media attention to a potential trade war, a new debate is emerging over whether China’s economy is finally rebalancing. Some commentators have proclaimed that the Chinese economy is rebalancing at last. We, however, would...
  • The Bank of England is likely to increase its base rate in May. Photo: Reuters

    Positive macro environment prevails despite global tensions

    - Apr 19, 2018 11:43am
    Uncertainty around Syria, Russia and the United States-led trend towards more protectionist and confrontational trade policies is providing political headwinds for financial markets. Nonetheless, we reaffirm our positive macro assessment. Protectionist policies will add to the...
  • The bright outlook for the US economy is likely to support the core view among Fed policymakers for at least two and perhaps three more interest rate increases this year. Photo: AFP

    US economic growth on track despite tariff concerns: Fed report

    Apr 19, 2018 9:04am
    Robust business borrowing, rising consumer spending, and tight labor markets indicate the US economy remains on track for continued growth, the Federal Reserve said, with the risks of a global trade war the one big outlier....
  • Studies conducted by IMF staff and others in the wake of the financial crisis have concluded that banks need much more loss-absorbing equity. Photo: Bloomberg.

    Is the financial sector safe enough yet?

    - Apr 18, 2018 11:58am
    A decade after the global financial crisis, policymakers worldwide are still assessing how best to prevent bank failures from tanking the economy again. Two recent publications – one from the US Department of the Treasury, and...
  • Broadening the tax base will require new approaches to measuring value in the economy. Photo: Bloomberg

    Rethinking the 21st century economy

    - Apr 17, 2018 3:58pm
    Before the threat of a US-China trade war arose, surging stock markets and corporate profits had obscured the fact that the global economic system is under existential stress. Global financial stability remains considerably in doubt. Indeed,...
  • China's economy continued to show resilience even as its export outlook is being clouded by escalating tensions with the United States, its largest trading partner. Photo: Reuters

    China’s GDP grows 6.8% in first quarter, faster than expected

    Apr 17, 2018 10:33am
    China’s economy grew 6.8 percent in the first quarter of 2018, slightly faster than expected, buoyed by strong consumer demand and surprisingly robust property investment despite continued measures to tame rising home prices, Reuters reports. Beijing...
  • The HKMA is buying Hong Kong dollars and selling the greenback to defend the peg. Photo: Bloomberg

    Should investors be concerned about HKMA interventions?

    - Apr 17, 2018 9:02am
    Hong Kong Monetary Authority (HKMA) has drained HK$9.664 billion from the financial system after four interventions over two days in a bid to defend the peg. The scale and pace of the latest interventions exceeded market...
  • Since US President Donald Trump took office in January 2017, the dollar has weakened substantially against most currencies. Photo: Reuters

    Trump says Russia, China playing ‘currency devaluation game’

    Apr 17, 2018 8:36am
    US President Donald Trump accused Russia and China of devaluing their currencies while the United States raises interest rates, Reuters reports. “Russia and China are playing the Currency Devaluation game as the US keeps raising interest...
  • US President Donald Trump has asked Trade Representative Robert Lighthizer and White House economic advisor Larry Kudlow to reopen negotiations on the Trans-Pacific Partnership. Photo: Reuters

    Trump mulls rejoining Pacific trade pact

    Apr 13, 2018 7:39am
    US President Donald Trump has asked his trade advisers to look at rejoining the Trans-Pacific Partnership, a multinational trade pact he withdrew the United States from last year, Reuters reports, citing White House spokeswoman Lindsay Walters....
  • Federal Reserve Chairman Jerome Powell speaks at a news conference following a policy meeting in Washington on March 21. Photo: Reuters

    Fed officials see strengthening US economy, inflation

    Apr 12, 2018 8:46am
    US Federal Reserve officials all agreed that the world’s largest economy would firm further and that inflation would rise in the coming months, minutes of the central bank’s last policy meeting showed. According to the minutes...
  • Chinese President Xi Jinping has pledged to further open up the economy. Photo: Reuters

    Xi’s Boao pledges: for Trump or China’s long-term benefit?

    - Apr 11, 2018 4:30pm
    In an apparent bid to defuse growing trade tensions with the United States, Chinese President Xi Jinping has unveiled a set of measures largely addressing US President Donald Trump’s complaints. In a speech at the Boao...
  • Hong Kong's exports largely comprise re-export of products made in China. Photo: Reuters

    Hong Kong won’t be immune from China-US trade war

    - Apr 11, 2018 10:22am
    US President Donald Trump has threatened to impose retaliatory tariffs on up to US$60 billion in Chinese imports to punish China for intellectual property infringement. In response, Beijing said it would levy 25 percent tariff on...
  • Chinese President Xi Jinping delivers a speech at an annual meeting of the Boao Forum for Asia in Boao in Hainan province on Tuesday. Credit: Kyodo/via Reuters

    Xi reiterates vow to open up economy further, cut tariffs

    Apr 10, 2018 3:32pm
    China will open up its economy further and lower import tariffs on some products including cars, President Xi Jinping said on Tuesday, in pledges seen as a bid to defuse a trade row with the US. In...
  • Even if the impact of the latest import tariffs on the US and Chinese economies are quite minor, foreign trade will be an additional source of volatility for markets in coming months. Photo: Reuters

    New US-China tariffs point to need for bilateral negotiations

    - Apr 9, 2018 12:03pm
    Last month proved to many investors how serious the Trump administration is about foreign trade and the need to reduce US trade deficit. The earlier tariffs were on solar panels, washing machines, steel, and aluminum, which...
  • US President Donald Trump should realize that what matters is the multilateral trade deficit, not bilateral trade deficits with any one country. Photo: Reuters

    Trump’s trade confusion

    - Apr 9, 2018 10:42am
    The trade skirmish between the United States and China on steel, aluminum, and other goods is a product of US President Donald Trump’s scorn for multilateral trade arrangements and the World Trade Organization, an institution that...
  • Gray rhinos, or obvious but often ignored dangers, can make a huge impact on stock markets. Photo: Reuters

    Gray rhinos beset global stock markets

    - Apr 9, 2018 9:14am
    Recent turbulence in stock markets can be attributed to “gray rhinos”. “Gray rhino” has become a catchword since early last year, after American writer Michele Wucker published her best-selling book, The Gray Rhino: How to Recognize...
  • US President Donald Trump speaks to reporters aboard Air Force One after visiting White Sulphur Springs in West Virginia on Thursday. Photo: Reuters

    Trump proposes US$100 billion more in new tariffs on China

    Apr 6, 2018 7:31am
    US President Donald Trump said he has instructed US trade officials to consider US$100 billion in additional tariffs on China, fueling an already heated trade dispute between the world’s two biggest economies, Reuters reports. Trump said...

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