22 September 2017

Macro Economy

  • Standard and Poor's expects Hong Kong to “maintain its strong credit metrics across the board in the next two to three years”. Photo: AFP

    S&P lowers Hong Kong rating following China downgrade

    Sep 22, 2017 11:45am
    Standard and Poor’s on Friday lowered Hong Kong’s long-term credit rating following an earlier downgrade of its view of China’s creditworthiness. In cutting Hong Kong’s rating to “AA+” from “AAA”, the ratings agency cited the “very...
  • The US Federal Reserve is widely expected to adopt a gradual approach in its balance sheet reduction move. Photo: Reuters

    Why Fed’s balance sheet unwind won’t hurt the US stock market

    - Sep 22, 2017 9:25am
    With the US Federal Reserve confirming that it will begin unwinding its US$4.5 trillion balance sheet, investors are concerned about the potential implications for the stock market. How will the central bank exactly proceed with the...
  • Standard & Poor's said “a prolonged period of strong credit growth has increased China’s economic and financial risks”. Photo: AFP

    S&P downgrades China’s credit rating

    Sep 22, 2017 9:01am
    Standard & Poor’s cut its sovereign credit rating on China, becoming the last of the three major rating agencies to lower its view on the country’s creditworthiness, the Wall Street Journal reports. The downgrade came weeks...
  • The EU is frustrated at how long it is taking the world’s rich nations to reach a deal on how to tax online firms like Google fairly. Photo: Reuters

    EU eyes solo move to increase tax on online giants

    Sep 22, 2017 7:55am
    The European Commission said on Thursday it may seek to implement tax reform to raise more revenue from online giants without the backing of the United States and other rich nations, in a move that could...
  • Fed chief Janet Yellen says the US central bank is ready to change the interest rate outlook if needed. Photo: Reuters

    Fed keeps US rates steady, to unwind portfolio in October

    Sep 21, 2017 8:15am
    The US Federal Reserve left interest rates unchanged on Wednesday but signaled it still expects one more increase by the end of the year despite a recent bout of low inflation, Reuters reports. The Fed, as...
  • A free trade pact is set to be signed by Hong Kong and the ASEAN this November, marking the culmination of two years of negotiations. Photo: Internet

    To ASEAN with love: An FTA that can be a win for HK, China

    - Sep 19, 2017 12:11pm
    Hong Kong leader Carrie Lam on Saturday concluded a two-day visit to Myanmar, becoming the city’s first ever chief executive to pay an official visit to the Southeast Asian nation since the establishment of the Hong...
  • QE has clearly affected cross-border capital flows – after all about 20 percent of global government bonds still have negative yields – but a range of other factors have supported equity markets. Graphics: YouTube

    Correlation does not equal causation

    - Sep 19, 2017 10:43am
    How dangerous is the end of quantitative easing (QE)? Some argue that central bank liquidity is strongly correlated with asset prices, so tapering (QT) will inevitably cause a sharp reverse. Such a simple analysis forgets that...
  • There has been a marked development of local bond markets in ASEAN, China and Japan, which has created better functioning capital markets. Photo:

    Asia flexes muscles post-1997 crisis

    - Sep 18, 2017 11:44am
    This past July marked the 20th anniversary of the Asian financial crisis, which sent shockwaves globally and across the region. Twenty years later, financial markets in Asia have undoubtedly changed for the better, and are well-placed...
  • A set of economic indicators suggested in August that China's growth could be running out of steam. Photo: Rappler

    Will China’s latest boom cycle end earlier than expected?

    - Sep 18, 2017 9:50am
    China’s economic growth tumbled to a 26-year low of 6.7 percent last year. Traditional economic theory suggests that it usually takes a long time for an economy to reaccelerate. Nevertheless, the nation’s economy has shown great...
  • Africa has the world’s youngest and fastest-growing population. It has numerous drivers that could sustain an average annual growth rate of 4 percent. Photo: Joburg

    Tapping into the cradle of diversity

    - Sep 18, 2017 8:00am
    Africa is often labeled the “final investment frontier”. It consists of countries whose indicators of social, economic and financial development are relatively low, which translates into more upside potential than anywhere else on the planet. But...
  • Listed firms in sectors like steel, aluminum, cement and thermal power may see more upside due to further capacity reductions in China. Photo: China Daily

    Opportunities from China’s pollution crackdown

    - Sep 15, 2017 12:06pm
    The autumn breezes in Northern China signal the resumption of industrial and investment activities after the summer low season. The industrial activities have one negative consequence — a worsening of the air quality, a challenge that...
  • Industrial output rose 6.0 percent in August from a year earlier, the slowest pace this year, from a 6.4 percent increase in July. Photo: Reuters

    China economy cools amid rising borrowing costs, property curbs

    Sep 15, 2017 7:17am
    Business activity in China slowed in August amid rising borrowing costs and property restrictions, the Wall Street Journal reports. Industrial output rose 6.0 percent from a year earlier, the slowest pace this year, from a 6.4...
  • The GDPs of the United States and China appear to be on a collision course for convergence in the next few years. Chart: Word Development Indicators

    Trade dynamics at G20 summit offer glimpse into future

    The subject of trade tariffs on products such as steel has come up frequently since the G20 Summit in Hamburg, Germany, in July. Trade restrictions do not benefit any nation. Quite the contrary, they often harm the...
  • Myanmar's GDP growth stood at 6.3 percent last year, down from 7.3 percent in 2015 and hitting a five-year low. Photo: AFP

    Humanitarian crisis in Myanmar and HK-ASEAN trade relations

    - Sep 12, 2017 4:00pm
    Last Saturday, the Hong Kong SAR government announced that it will officially conclude a free trade agreement with the Association of Southeast Asian Nations (ASEAN) in November in order to further consolidate trade relations with the...
  • “Telling the truth will improve our management, while telling lies will only make management more complicated and our operation more costly,” says Huawei founder Ren Zhengfei. Photo: Linkedin

    Death of middle managers: The Huawei example

    - Sep 12, 2017 10:12am
    In 1987, Ren Zhengfei founded Huawei Technologies at the age of 44 with 20,000 yuan. In three decades, Huawei has become China’s biggest telecom technology company. There are many factors behind the phenomenal success of Huawei,...
  • Hong Kong and ASEAN business ministers pose for a group photo at the second ministerial conference last week. Hong Kong and the ASEAN expect to sign an FTA deal soon. Photo: GovHK

    Hong Kong, ASEAN set to ink landmark FTA pact in November

    Sep 11, 2017 5:17pm
    Hong Kong and the Association of Southeast Asian Nations (ASEAN) have wrapped up three years of negotiations on a multilateral free trade agreement and a related investment agreement. The announcement was made at the 2nd ASEAN...
  • Xinjiang plays an important role in China's trade with central Asian countries. Photo:

    Why Xinjiang is well positioned to gain from Belt & Road plan

    - Sep 11, 2017 4:51pm
    China’s Belt and Road plan has led to many questions running through people’s minds. Among the key debating topics are these: Does the initiative only cover infrastructure projects, or will other industries also stand to benefit?...
  • The euro soared to a nine-day high of US$1.2059. It was last up 0.92 percent at US$1.2025. Photo: Reuters

    Euro rises as ECB signals stimulus slowdown

    Sep 8, 2017 9:01am
    The euro surged on Thursday after the European Central Bank indicated it was preparing to scale back its stimulus program, while gold rose to a one-year high after the US dollar tumbled, Reuters reports. The dollar...
  • ECB, led by its president Mario Draghi, is widely expected to bump up the eurozone 2018 growth forecasts on Thursday. Photo: Reuters

    ECB expected to start laying groundwork for stimulus exit

    Sep 7, 2017 8:21am
    The European Central Bank (ECB) is expected to start laying the groundwork for stimulus reduction when policymakers meet on Thursday, Reuters reports. However, due to concerns that strong signals could raise market volatility and undo the...
  • Lael Brainard, a permanent voting member of the Fed’s monetary policy committee, speaks at the Economic Club of New York on Tuesday. Photo: Bloomberg

    Fed policymakers signal caution on inflation, rate hikes

    Sep 6, 2017 8:42am
    The US Federal Reserve should delay interest rate hikes until it is confident inflation will rebound, an influential policymaker said on Tuesday, adding to signals of a dovish stance from the central bank in the face...

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