23 February 2018

Macro Economy

  • China's spending on research and development activities is expected to surpass that of the US this year. Photo: Bloomberg

    Year of the Dog looks promising for Chinese equities

    - Feb 22, 2018 11:26am
    In this Lunar New Year, the stars seem to be aligning for China. President Xi Jinping is providing steady leadership, “One Belt, One Road” is spurring massive regional investments, and China’s R&D spend could soon overtake...
  • Traders work on the floor of the New York Stock Exchange shortly after the opening bell on Wednesday. Photo: Reuters

    US stocks fall as Fed minutes send bond yields higher

    Feb 22, 2018 9:13am
    US stocks finished lower in a choppy session Wednesday on renewed worries over higher interest rates following the release of minutes from the Federal Reserve’s January meeting. Investors became nervous as the yield on the benchmark 10-year...
  • South Korea is challenging US anti-dumping duties of up to 60.81 percent that were slapped on its steel products and transformers in May 2016. Photo: Bloomberg

    South Korea launches WTO trade challenge against US duties

    Feb 21, 2018 9:21am
    South Korea has launched a wide-ranging complaint at the World Trade Organization to challenge the United States’ use of anti-subsidy and anti-dumping duties, citing their use on steel and transformers, Reuters reports, citing a WTO filing....
  • Bank of Japan governor Haruhiko Kuroda has achieved some success in stoking inflation from the depths of the country's decades-long disinflation era. Photo: Reuters

    BoJ chief Kuroda’s quandary

    - Feb 20, 2018 1:36pm
    After months of speculation, Prime Minister Shinzo Abe’s cabinet has announced nominations for the Bank of Japan’s (BoJ) new leadership. Haruhiko Kuroda will retain his governorship for a second term, and Masayoshi Amamiya has been promoted...
  • According to a recent industrial survey, the proportion of loss-making firms in China's materials sector fell from a high of 23 percent in 2015 to 15 percent in 2017. Photo: China Daily

    The Year of the Dog: Will China lead the pack again?

    - Feb 20, 2018 10:32am
    Although China is a market many commentators love to hate, it was anything but a dog last year. Most global and emerging market investors were caught off guard by the strong currency, as the market was...
  • Because intelligent machines can increasingly fill low-wage jobs, developing countries’ cost advantage may have been diminished significantly. Photo: Xinhua

    The future of economic convergence

    - Feb 13, 2018 9:01am
    The world is now facing what observers are calling a “synchronized” growth upswing. What does this mean for the economic “convergence” of developed and developing countries, a topic that lost salience after the Great Recession began...
  • The strength of the yuan has been underpinned by China’s better than expected economic growth and tightening monetary policy. Photo: Reuters

    Yuan faces appreciation pressure

    - Feb 6, 2018 2:11pm
    Jerome Powell took office as the new Federal Reserve chairman on Monday. And a global currency war could be just around the corner. Since the beginning of the year, the US dollar index has basically entered...
  • Despite the latest devaluation, Venezuela's official bolivar rate is still dwarfed by the black market rate for greenbacks. Photo: Reuters

    Venezuela announces 99.6% devaluation of official forex rate

    Feb 6, 2018 9:35am
    Venezuela’s central bank on Monday announced a devaluation of more than 99 percent of its official exchange rate with the launch of a new foreign exchange platform, Reuters reports. The central bank said the first auction...
  • China is the top buyer of US sorghum as well as soybeans, the United States’ most valuable export to the world’s No. 2 economy. Photo: YouTube/AFP

    China launches dumping probe into US sorghum imports

    Feb 5, 2018 8:58am
    China has launched an anti-dumping and anti-subsidy investigation into imports of sorghum from the United States, the Ministry of Commerce said on Sunday, less than a fortnight after US President Donald Trump slapped steep tariffs on imports...
  • The Federal Reserve may turn more hawkish and speed up the rate hikes to prevent economic overheating. Photo: Reuters

    Fed may hike rates four times this year on rising inflation

    - Feb 2, 2018 1:14pm
    Based on Fed fund futures, the market consensus is that the Federal Reserve will hike rates three times this year by 0.25 percent each time. But I personally believe that the market may have underestimated the...
  • US President Donald Trump pictured on stage on Jan. 26 as he attended the World Economic Forum (WEF) event in Davos, Switzerland. Photo: Reuters

    Post-Davos depression

    - Feb 2, 2018 10:47am
    I’ve been attending the World Economic Forum’s annual conference in Davos, Switzerland – where the so-called global elite convenes to discuss the world’s problems – since 1995. Never have I come away more dispirited than I...
  • The US Federal Reserve maintained language that it sees the near-term economic risks as "roughly balanced". Photo: Bloomberg

    Fed holds rates steady, sees inflation uptick this year

    Feb 1, 2018 8:51am
    The US Federal Reserve kept interest rates unchanged on Wednesday and said it expects the world’s largest economy to grow at a moderate pace this year and the labor market to remain strong. Following a two-day...
  • The ECB has indicated that it will adjust its policy language pertaining to various dimensions of the monetary stance and forward guidance. Photo: Reuters

    When will the ECB shift to a more hawkish stance?

    - Jan 31, 2018 10:00am
    The European Central Bank (ECB) has rattled markets with a paragraph in its latest minutes noting that its forward guidance is likely be changed along “various dimensions” early this year. In particular, it stated that the...
  • China under President Xi Jinping is “adopting a new vision for development”, which “ensures and improves living standards”. Photo: Bloomberg

    China’s search for quality growth

    - Jan 31, 2018 9:40am
    As Chinese President Xi Jinping begins his second five-year term, shifting toward “quality growth” is at the top of the country’s policy agenda. Across China’s government, a quiet but resolute commitment to fostering a new growth...
  • To ensure sustained growth, corporate leaders must adopt a business model that prioritizes long-term vision over short-term financial engineering. Photo: Reuters

    What companies must do to sustain long-term growth

    - Jan 29, 2018 10:00am
    It is perhaps time for corporations and their shareholders to design a more sustainable long-term business model that emphasizes transformative research and development. In recent years, investors have grown enamored of FANG firms (a reference to...
  • If the Federal Reserve moves faster than expected the risk exists that it could trigger a reversal of risk sentiment and cause a broad strengthening of the US dollar. Photo: Reuters

    Politics and trade to shape emerging markets in 2018

    - Jan 25, 2018 1:53pm
    While we are broadly optimistic about the outlook for emerging market (EM) economies – commodity prices have improved, policy is still accommodative, Chinese growth is stable, and developed market (DM) demand appears to be improving –...
  • While a weaker dollar is seen helping US exporters to compete abroad, it may undermine the greenback’s status as the world’s top reserve currency. Photo: Reuters

    A weak dollar is ‘good’ for the US?

    Jan 25, 2018 10:14am
    A dollar rout intensified on Wednesday after US Treasury Secretary Steven Mnuchin said a lower greenback was “good for us” – though a weaker US currency may not prove a long-term economic boost. It was a...
  • Jerome Powell takes over as Federal Reserve chair with US monetary policy on a steady course toward gradually higher interest rates and a smaller balance sheet. Photo: Xinhua

    Senate confirms Powell to succeed Yellen as Fed chief

    Jan 24, 2018 8:46am
    The US Senate confirmed Federal Reserve governor Jerome Powell as the next head of the central bank, succeeding Janet Yellen, a move likely to provide continuity in US monetary policy with the economy growing now for...
  • AI and automation have obvious implications for employment. But they will also affect the human mind. Photo: Reuters

    The stupid economy

    - Jan 23, 2018 9:56am
      Most discussions about the march of robotics and artificial intelligence (AI) have understandably concentrated on fears of massive job losses. But the implications of these technologies are actually far more terrifying. We have been brought...
  • The US government move punishes Samsung, which recently began washer production in South Carolina, and LG, which is building a washer factory in Tennessee. Photo: Bloomberg

    US slaps steep tariffs on imported washers, solar panels

    Jan 23, 2018 8:37am
    US President Donald Trump slapped steep tariffs on imported washing machines and solar panels, marking his first moves to erect trade restrictions under seldom-used trade laws that allow unilateral actions, Reuters reports. The decisions in the...

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