15 October 2018

Macro Economy

  • The US economy is roaring and the stock market is soaring. But it is only a question of when, not if, the economic reckoning will come. Photo: AFP

    Road runner populism

    - Oct 3, 2018 10:11am
    Populist economics has rarely had it so good. The US economy is roaring, the stock market is soaring, and the Trump administration’s protectionism has apparently had a negligible impact on growth. Trump’s dictum that “trade wars...
  • Fed Chairman Jerome Powell said he thinks the  “remarkably positive outlook” for the US economy will survive the Trump administration’s efforts to rewrite the global trading system. Photo: Bloomberg

    Fed’s Powell says US outlook ‘remarkably positive’

    Oct 3, 2018 8:16am
    US Federal Reserve Chairman Jerome Powell hailed a “remarkably positive outlook” for the US economy that he feels is on the verge of a “historically rare” era of ultra-low unemployment and tame prices for the foreseeable...
  • US President Donald Trump addresses supporters during a Make America Great Again rally in Johnson City, Tennessee, on Monday. Photo: Reuters

    Trump hails Canada, Mexico trade pact as win for US workers

    Oct 2, 2018 8:36am
    US President Donald Trump touted a new trade deal with Canada and Mexico as a win for American workers while investors breathed a sigh of relief that the key pillars of NAFTA had survived his hardball...
  • Walmart has created an analytics hub called Data Café to gain insights from the huge amount of transactional and other data the company has. Photo: Reuters

    AI and price competition

    - Sep 28, 2018 10:16am
    Price competition has been in existence since mankind started to trade. How has the price war evolved with the advent of artificial intelligence? It is said that Amazon adjusts its pricing over 2.5 million times each...
  • China should reaffirm its 2013 commitment to ensuring that markets play a decisive role in allocating resources. Photo: CNSA

    Chinese reform during a trade war

    - Sep 28, 2018 10:16am
    Last June, The Economist lamented that US President “Donald Trump is undermining the rules-based international order” as he seeks “short-term wins for America” at the cost of “long-term damage to the world”. With Trump now escalating...
  • Federal Reserve Chairman Jerome Powell indicated that markets should not to put too much store in economic forecasts because they could change with incoming data. Photo: Reuters

    Fed chief Powell signals central bank is done with signaling

    Sep 28, 2018 8:48am
    Federal Reserve Chairman Jerome Powell has a new message for financial markets: watch the data on jobs, wages and inflation for signals on monetary policy – not the US central bank’s words or forecasts. That’s a...
  • The policy tools of the Europian Central Bank would ensure accommodative monetary conditions for a prolonged period,  Mario Draghi said. Photo: Reuters

    Market prices a dovish ECB despite balanced outlook for growth

    - Sep 28, 2018 8:32am
    In a press conference on Sept. 13, European Central Bank (ECB) president Mario Draghi presented a fairly optimistic economic outlook with risks to the downside as well as to the upside. While the Governing Council (GC)...
  • The People's Bank of China left short-term rates unchanged on Thursday, highlighting diverging policy paths for China and the United States. Photo: Bloomberg

    China leaves rates steady after Fed hike

    Sep 27, 2018 1:07pm
    China’s central bank left short-term rates unchanged on Thursday, choosing not to follow a benchmark interest rate rise by the US Federal Reserve despite the risk that it could that it could put renewed pressure on...
  • Fed Chairman Jerome Powell said the US central bank will remain independent. Photo: Reuters

    Fed raises rates, sees at least three more years of growth

    Sep 27, 2018 7:24am
    The US Federal Reserve raised interest rates and left intact its plans to steadily tighten monetary policy, as it forecast that the US economy would enjoy at least three more years of growth, Reuters reports. In...
  • The Federal Reserve is expected to raise its benchmark overnight lending rate by a quarter of a percentage point on Wednesday, in what would be its third hike this year. Photo: Bloomberg

    Fed likely to raise rates, possibly end ‘accommodative’ policy

    Sep 26, 2018 3:28pm
    With the Federal Reserve widely expected to raise interest rates on Wednesday, financial markets are focused on whether signs of an acceleration in US economic growth will prompt the central bank to ramp up the pace...
  • US Trade Representative Robert Lighthizer said World Trade Organization rules were designed for market-driven economies, not ones dominated by state-owned enterprises like China. Photo: AFP

    US trade chief says China policy change ‘not going to be easy’

    Sep 26, 2018 10:30am
    US President Donald Trump’s top trade official said changing China’s economic policies to become more market-oriented “is not going to be easy” even with tariffs now in place on US$250 billion worth of Chinese goods, Reuters...
  • Economists warn that a protracted trade dispute will eventually stunt growth not just in the United States and China but across the broader global economy. Photo: Reuters

    China accuses US of ‘trade bullyism’

    Sep 24, 2018 2:58pm
    China accused the United States of engaging in “trade bullyism” as the world’s two largest economies imposed fresh tariffs on each other’s goods on Monday, Reuters reports. But while alleging that Washington was intimidating other countries to...
  • US tariffs on US$200 billion worth of Chinese goods and retaliatory tariffs by Beijing on US$60 billion worth of US products took effect on Monday. Photo: Reuters

    New tariffs kick in with no clear end to trade war in sight

    Sep 24, 2018 12:02pm
    The United States and China imposed new tit-for-tat tariffs against each other’s goods on Monday, the latest escalation in a heated trade war between the world’s two largest economies. US tariffs on US$200 billion worth of...
  • Japan has seen a steady growth in tourist arrivals, which is expected to boost retail sales and demand for more retail space. Photo: Reuters

    Sustained tourist gains to boost Japan’s economic outlook

    - Sep 24, 2018 10:15am
    From its peak in January, the Hang Seng Index has retracted by about 20 percent this year. Year to date, Japan and India are the only two stock markets in Asia-Pacific that have maintained positive performance...
  • Trump thinks import tariffs will improve the US trade balance, but he doesn’t seem to understand that if foreign exporters are cut off from the US market, they will not have the dollars to buy American goods, notes Jeffrey Frankel. Photo:Reuters

    Trump’s currency confusion continues

    - Sep 21, 2018 11:03am
    Next month, the US Department of the Treasury is due to submit to Congress its biannual report detailing which countries, if any, are manipulating their currencies to gain an unfair trade advantage. For his part, President...
  • US-China trade battles could last decades, Alibaba's Jack Ma has warned. Photo: Bloomberg

    Be prepared for 20 years of China-US trade war: Jack Ma

    Sep 21, 2018 10:03am
    Chinese business tycoon Jack Ma, the co-founder of e-commerce giant Alibaba Group, said on Thursday that people should make preparations for 20 years of China-US trade frictions. The economic situation is not good, and that could...
  • Chinese academics and economists have indulged in rare open criticism of government policies recently. Photo: Reuters

    China think-tank debates policy direction

    - Sep 20, 2018 4:49pm
    Entrepreneurs and academics in China seem to realize that the biggest headwind for the nation’s economy is a deteriorating internal business environment rather than the US-China trade war. At the recent Chinese Economists 50 Forum (CE50)...
  • China is the world’s largest soybean importer by some distance. Photo: Reuters

    Why soybeans are a proxy for the trade war

    - Sep 20, 2018 10:56am
    Soybean has been in the news recently as the commodity got caught up in the US-China trade row. Tit-for-tat tariffs imposed by the two economic powerhouses have sent US soybean prices plunging to a near 10-year...
  • China will 'never go down the road' of relying on currency depreciation to stimulate exports, Premier Li Keqiang said on Wednesday. Photo: Bloomberg

    China won’t weaken currency to boost exports: Li Keqiang

    Sep 19, 2018 4:18pm
    China will not resort to currency devaluation in order to boost exports, Premier Li Keqiang said on Wednesday, even as Beijing faces mounting economic challenges amid an escalating US trade war. Addressing a World Economic Forum...
  • High-flying emerging-economy firms succeed in a hyper-competitive environment, where getting to the top is hard, and staying there is even harder. Photo: Bloomberg

    The emerging world’s high achievers

    - Sep 19, 2018 10:08am
    Emerging economies are often grouped together as something of a monolith. But when it comes to economic performance, they diverge widely, with only some countries achieving rapid and relatively consistent growth over long periods. What is...

EJI Weekly Newsletter

Please click here to unsubscribe