20 July 2019

Macro Economy

  • The Li Keqiang Index, South Korea’s exports performance, and corporate earnings all point to continued downward pressure on China's economy. Photo: Reuters

    China economy still faces downward pressure

    - Jul 19, 2019 12:33pm
    China’s economic growth slowed to 6.2 percent in the second quarter, the weakest in 27 years. While the slowdown was well-expected, downside pressure may continue, particularly if the trade dispute with the United States remains unresolved....
  • China’s total corporate, household and government debt is estimated to be at more than US$40 trillion. Photo: Reuters

    China’s debt tops 300% of GDP, now 15% of global total: IIF

    Jul 19, 2019 9:28am
    A key gauge of China’s debt has topped 300 percent of gross domestic product, according to the Institute of International Finance (IIF), a Washington-based private global financial industry association. China’s total corporate, household and government debt...
  • Asia's millennial population offers a huge workforce of highly educated and ambitious individuals while representing a vast consumer market. Photo: Xinhua

    Rise of Asia is powered by millennials, tech and reform

    - Jul 18, 2019 1:45pm
    As long-term investors, we think the engine powering global growth in the coming decades will be Asia and its large, growing consumer and services markets. Developed economies are ageing and facing unsustainable social-services commitments, and their...
  • China's GDP growth has slowed but other economic indicators have surpassed market expectations. Photo: Reuters

    China Q2 GDP growth at 6.2% on year, weakest in 27 years

    Jul 15, 2019 11:10am
    China’s economic growth slowed to the weakest pace in at least 27 years as demand at home and abroad cooled in the face of a bruising trade war with the United States, data showed on Monday....
  • Singapore's GDP expanded 0.1 percent in the second quarter, the slowest annual growth since the second quarter of 2009 when it fell 1.2 percent. Photo: Bloomberg

    Singapore’s slowest growth in a decade raises recession risk

    Jul 12, 2019 3:14pm
    Singapore reported dismal preliminary second-quarter growth data on Friday, including the slowest pace of annual expansion in a decade, raising bets that a recession and monetary policy easing could be coming, Reuters reports. The quarter’s 0.1...
  • G20 finance ministers and central bank chiefs pose for a group picture after a meeting in Fukuoka, Japan last month. Maintaining central bank independence has become all the more important now in the era of populist leaders. Pool photo via Bloomberg

    How to keep central banks independent

    The global financial crisis that erupted in 2008 transformed the role of central bankers and the scale and scope of their policy toolkit. Today, financial stability is once again at the core of central banks’ missions,...
  • Federal Reserve Chairman Jerome Powell testifies before a Senate Banking, Housing and Urban Affairs Committee hearing on Capitol Hill in Washington on Thursday. Photo: Reuters

    Fed chief affirms rate cut view; colleagues see economy humming

    Jul 12, 2019 8:01am
    As Federal Reserve Chairman Jerome Powell kept the focus Thursday on global risks that could trigger a Fed rate cut in coming weeks, his colleagues from regional Fed districts painted a rosier picture of continued US...
  • China’s Belt and Road Initiative is creating a network of new options for rail transport between China and Western Europe that will prompt reconsideration of supply chains by some companies. Photo: Reuters

    Trump’s trade war could create more sustainable supply chains

    - Jul 11, 2019 1:09pm
    After decades dominated by globalization, trade is being reconfigured as a result of geopolitical, technological and other changes. Sustainability could be a big winner from this process. US President Donald Trump is not generally known to...
  • Federal Reserve Chairman Jerome Powell at a House Financial Services Committee hearing: "The law clearly gives me a four-year term and I fully intend to serve it." Photo: Reuters

    Fed’s Powell sets stage for rate cut this month amid trade war

    Jul 11, 2019 7:32am
    Federal Reserve Chairman Jerome Powell has set the stage for the first US rate cut in a decade this month, as records from policymakers’ latest meeting showed increasing fear that a US-China trade war is causing...
  • Huawei will remain on the US Entity List, meaning US parts and components cannot be sold to the company without special licenses. Photo: Reuters

    US to approve sales it deems safe to blacklisted Huawei

    Jul 10, 2019 9:14am
    The US government will issue licenses to companies seeking to sell goods to China’s Huawei where there is no threat to national security, Commerce Secretary Wilbur Ross said, leaving industry observers unsure about which products will...
  • White House economic adviser Larry Kudlow said there is no magic way to reach what has so far been an elusive deal. Photo: Bloomberg

    US, Chinese negotiators hold ‘constructive’ phone talks on trade

    Jul 10, 2019 8:59am
    US and Chinese trade officials held a “constructive” phone conversation on Tuesday, White House economic adviser Larry Kudlow said, marking a new round of talks after the world’s two largest economies agreed to a truce in...
  • Japan's Prime Minister Shinzo Abe appears to be using restrictions on exports to South Korea as a leverage, days before a parliamentary election. Photo: CNSA

    Japan, South Korea raise stakes in dispute over forced labor

    Jul 10, 2019 7:45am
    Japan and South Korea have raised the stakes in a dispute that threatens to disrupt global supplies of smartphones and chips, with South Korea denouncing Japanese reports it had transferred a sensitive chemical to North Korea,...
  • Samsung Electronics is seeking to buy more of the materials it needs for making semiconductors from other countries like Taiwan or China. Photo: AFP

    South Korea chipmakers, suppliers scramble to bypass Tokyo curbs

    Jul 9, 2019 9:06am
    South Korean chipmakers and Japanese chemical suppliers caught in the midst of a sudden escalation of a bilateral diplomatic dispute are scrambling to circumvent tightened export controls imposed by Tokyo, Reuters reports, citing industry executives. Japan...
  • Vice President Wang Qishan speaks at the World Peace Forum at Tsinghua University in Beijing on Monday. Photo: Reuters

    World cannot shut China out, Vice President Wang says

    Jul 9, 2019 7:31am
    China and the rest of the world must co-exist, Vice President Wang Qishan said, in an indirect jab at the United States, Reuters reports. Top representatives of the world’s two biggest economies are trying to resume...
  • The PBoC is more likely to follow any US rate cut by lowering its key short-term money market rates, analysts said. Photo: Bloomberg

    Fed easing could prompt China rate cut: analysts

    Jul 8, 2019 3:28pm
    China’s central bank could cut its benchmark policy rate for the first time in four years if the US Federal Reserve delivers a widely expected cut in late July, analysts say, as Chinese policymakers step up...
  • The US Labor Department said nonfarm employers added 224,000 jobs last month – the most in five months. Photo: AFP

    Fed faces tougher task in deciding whether to cut US rates

    Jul 8, 2019 7:47am
    US employers are hiring workers, but that is only making the Federal Reserve’s job harder. The Labor Department on Friday said nonfarm employers added 224,000 jobs last month – the most in five months, and not...
  • Christine Lagarde can be diplomatic in public while speaking her mind in private, as her largely successful tenure at the IMF shows. Photo: Bloomberg

    Lagarde is the right choice

    - Jul 5, 2019 10:36am
    The choice of Christine Lagarde, the managing director of the International Monetary Fund and a former French finance minister, to succeed Mario Draghi as president of the European Central Bank, is controversial. It should not be....
  • China's relatively low disposable income per capita suggests that citizens face a heavy tax burden. Photo: Bloomberg

    China’s personal income not as high as national income suggests

    - Jul 4, 2019 11:41am
    China’s per-capita gross national income (GNI) soared over 10 percent to US$9,732 last year, higher than that of middle-income countries, according to data from the National Statistics Bureau. The nation ranks 60th among 180 countries and...
  • Washington has been 'accommodative' on the trade talks with Beijing, says Trump’s economic adviser Larry Kudlow. Photo: Reuters

    US-China trade talks could resume next week

    Jul 4, 2019 10:12am
    Top representatives from the United States and China are arranging to resume talks next week as they seek to resolve the trade dispute between the two nations, Reuters reports, citing Trump administration officials. “Those talks will...
  • The ECB should seek to replace the bank’s relatively narrow inflation objective with a broader target range, an economist argues. Photo: Bloomberg

    The ECB needs new inflation rules

    - Jul 3, 2019 9:56am
    The upcoming change of leadership at the European Central Bank represents an opportunity – if not an obligation – to review the Bank’s policy framework. The ECB can take credit for major achievements during Mario Draghi’s...

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