17 August 2018

Macro Economy

  • The upcoming meeting is lower-level compared with four previous rounds of talks. Photo: Reuters

    China, US to hold next round of trade talks in late August

    Aug 16, 2018 12:45pm
    China said it will hold a fresh round of trade talks with the United States in Washington later this month, offering a glimmer of hope for progress in resolving a conflict that has set world markets...
  • According to figures from the China Photovoltaic Industry Association, US solar module production capacity fell from 1.5 gigawatts in 2011 to 1 GW last year as a result of bankruptcies. Photo: Bloomberg

    China lodges WTO complaint over US solar tariffs

    Aug 15, 2018 1:12pm
    China’s commerce ministry said a US decision to subsidize renewable energy firms and impose tariffs on imported products has seriously distorted the global market and harmed China’s interests, Reuters reports. China has lodged a complaint to...
  • Despite his escalating rhetoric, Turkish President Recep Tayyip Erdoğan may soon find that he has little choice but to abandon his isolationist and antagonistic policies of the last few years. Photo: Reuters

    The Turkish emerging market timebomb

    - Aug 15, 2018 10:23am
    Turkey’s falling currency and deteriorating financial conditions lend credence, at least for some people, to the notion that “a crisis is a terrible thing to waste.” I suspect that many Western policymakers, in particular, are not...
  • Beijing's central business district. China is trying to boost domestic demand and taking a more measured approach in its campaign to reduce financial risks and debt. Photo: Reuters

    China economy shows signs of cooling further

    Aug 14, 2018 3:05pm
    China’s economy is showing signs of cooling further, with investment growth slowing to a record low and consumers turning more cautious about spending, Reuters reports, citing official data. Fixed-asset investment expanded by a less-than-expected 5.5 percent...
  • The Congressional Budget Office said trade tensions with China and other countries could make a bigger dent on GDP growth than anticipated. Photo: Bloomberg

    US economy seen strong this year before slowing in 2019: CBO

    Aug 14, 2018 7:36am
    US economic growth will probably accelerate this year before slowing in 2019 to well below the Trump administration’s 3 percent target as a fiscal stimulus fades, congressional researchers said. In an updated economic outlook, the nonpartisan...
  • The Turkish lira has lost more than 45 percent of its value this year, largely over worries about President Tayyip Erdogan's influence over the economy and worsening ties with the United States. Photo: Reuters

    Turkey says action plan ready after lira dives to record low

    Aug 13, 2018 9:04am
    Turkey has drafted an economic action plan and will start implementing it on Monday morning to ease investor concerns, Finance Minister Berat Albayrak said on Sunday, after the lira plunged to a new record low in...
  • Football star Mesut Özil has quit the German national team, claiming he has been a victim of racism after he posed for pictures with Turkish President Recep Tayyip Erdoğan. Photo: Reuters

    Dark clouds hanging over Europe

    - Aug 9, 2018 9:23am
    The migrant issue seems to be getting worse in Europe. Football star Mesut Özil has quit the German national team, claiming he has been a victim of racism after he posed for pictures with Turkish President Recep...
  • China is following through on its threat to retaliate with equivalent tariffs against any US trade action. Photo: Reuters

    China to slap additional tariffs on US$16 bln of US goods

    Aug 9, 2018 8:36am
    China is imposing additional tariffs of 25 percent on US$16 billion worth of US goods, including steel products, autos and medical equipment, in a tit-for-tat move as a trade war between the two sides escalated. The tariffs...
  • One of the reasons Donald Trump is focusing so intently on trade is that it appears to be a winning political issue at home. Photo: Reuters

    Trump turns the tables on trade

    - Aug 8, 2018 4:51pm
    As President Donald Trump ramps up the trade wars and retaliatory measures spread, investors are entering an unknown landscape – and no one knows what the US will do next. Yet given that trade makes up...
  • The BoJ said it intends to maintain extremely low levels of short-and long-term interest rates 'for an extended period of time.' The policy stance will have an impact on yen movements. Photo: Reuters

    BoJ cuts chances for medium-term ‘big bang’ yen rally

    - Aug 8, 2018 10:15am
    The Bank of Japan’s ultra-accommodative monetary policy is one of the few vestiges of the 2008 global financial crisis. While other major central banks are beginning or continuing to normalize policy, the BoJ remains steadfast in...
  • International economic institutions such as the World Trade Organization have long served as platforms for member states to adopt shared rules. Photo: Reuters

    Global politics for a globalized economy

    - Aug 8, 2018 8:30am
    From the end of World War II to the mid-2010s, economic globalization progressed relentlessly through expanded trade, proliferating capital flows, faster (and cheaper) communication, and, to a lesser extent, human migration. Yet, even as these linkages...
  • Finance ministers and central bank chiefs pose for a picture at a G20 gathering in Buenos Aires, Argentina, on July 21. The group can play a leading role in overcoming the deficiencies that plague the international investment regime. Credit: Reuters

    Putting FDI on the G20 agenda

    - Aug 6, 2018 9:39am
    While much of the world’s attention is focused on the economic damage being wrought by US President Donald Trump’s trade wars, global trade’s twin – foreign direct investment – has largely been neglected. And yet, with...
  • The midsize Envision sport utility vehicle, assembled only in China, last year accounted for about 19 percent of Buick brand sales in the United States. Photo: Reuters/AFP

    GM seeks to exclude China-made Buick SUV from tariff

    Aug 3, 2018 9:28am
    General Motors Co. is seeking an exemption to a 25 percent US tariff on its Chinese-made Buick Envision sport utility vehicle in a move to prevent the key model in the brand’s US lineup from becoming...
  • With inflation well under control, the US Federal Reserve has ample room for a slower rate increase pace. Photo: Reuters

    Why we may enter a period of halting rates

    - Aug 2, 2018 11:05am
    As real-estate analysts and investors, we track developments in the interest rate regimes. We note that, in many conversations, investors are concerned of the impact of higher interest rates to the REIT markets. However, several recent...
  • As Trump has roiled the transatlantic alliance, Europe and Canada may feel they have no choice but to seek out a more open – or at least more stable – partner. Photo: Reuters

    America’s Neville Chamberlain

    - Aug 2, 2018 10:26am
      When countries get nervous about their security, they often insist that they need to reduce their dependence on foreign products, shorten supply chains, and produce more goods domestically. But does protectionism really improve security? Now...
  • Mexican trade official Guillermo Malpica (L) and Canadian trade negotiator Colin Bird discuss progress in trade talks with the US at a conference in Traverse City, Michigan on Wednesday. Photo: Reuters

    US, Mexico move closer to deal on autos content rules: report

    Aug 2, 2018 9:12am
    The United States and Mexico have made substantial progress on the issue of autos content rules at talks to renew the North American Free Trade Agreement (NAFTA), Reuters reports, citing Mexican and Canadian officials. Guillermo Malpica,...
  • The Federal Reserve said economic growth has been rising strongly and the job market has continued to strengthen. Photo: AFP

    Fed leaves rates unchanged, stays on course for September hike

    Aug 2, 2018 7:29am
    The US Federal Reserve kept interest rates unchanged but characterized the economy as strong, keeping the central bank on track to increase borrowing costs in September, Reuters reports. The Fed on Wednesday said economic growth has...
  • The US$200 billion list of goods targeted for tariffs would have a bigger impact on consumers than previous rounds of tariffs. Photo: Bloomberg

    Trump to propose 25% tariff on US$200 billion of Chinese imports

    Aug 1, 2018 4:13pm
    The Trump administration plans to propose slapping a 25 percent tariff on US$200 billion of imported Chinese goods after initially setting them at 10 percent, in a bid to pressure Beijing into making trade concessions, Reuters...
  • Bank of Japan Governor Haruhiko Kuroda said it will take time for inflation to hit the 2 percent target. Photo: Reuters

    BOJ takes steps to make policy flexible, vows to keep rates low

    Jul 31, 2018 2:34pm
    The Bank of Japan on Tuesday took measures to make its massive stimulus program more flexible and pledged to keep interest rates low for the time being, reflecting its forecast that it would take time for...
  • File picture shows Chinese leader Xi Jinping with US President Donald Trump in Beijing  on Nov. 8, 2017. China has offered face-saving ways for Trump to leave the battlefield and declare victory, but he refuses to take them up. Photo: AFP

    The US is at risk of losing a trade war with China

    - Jul 31, 2018 9:40am
    What was at first a trade skirmish – with US President Donald Trump imposing tariffs on steel and aluminum – appears to be quickly morphing into a full-scale trade war with China. If the truce agreed...

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