23 July 2018

Macro Economy

  • If US levies tariff on US$50 billion worth of Chinese goods, it would only represent 0.2 percent of China’s GDP. Photo: Reuters

    A global trade war won’t happen, hopefully

    - Jul 5, 2018 10:02am
    The trade talks between China and the United States are taking a bumpy ride. The US will implement a 25 percent tariff on US$34 billion of Chinese imports on Friday, and then impose tariffs on another...
  • Washington says it will implement tariffs on US$34 billion of Chinese imports on Friday, and Beijing has vowed to retaliate in kind on the same day. Photo: Reuters

    China says it won’t fire first shot in trade war with US

    Jul 5, 2018 8:05am
    China will “absolutely not” fire the first shot in a trade war with the United States and will not be the first to levy tariffs, Reuters reports, citing the finance ministry. A person with knowledge of...
  • Beijing is said to be urging the European Union to forge a united front with China against the United States on trade. Photo: AFP

    China presses Europe for anti-US alliance on trade

    Jul 4, 2018 9:29am
    China is putting pressure on the European Union to issue a strong joint statement against US President Donald Trump’s trade policies at a summit later this month but is facing resistance, Reuters reports, citing European officials....
  • US President Donald Trump meets with Dutch Prime Minister Mark Rutte at the White House in Washington on Monday. Photo: Reuters

    Trump makes veiled WTO threat after EU warning on car tariffs

    Jul 3, 2018 8:03am
    US President Donald Trump warned the World Trade Organization on Monday that “we’ll be doing something” if the United States is not treated properly, just hours after the European Union said that US automotive tariffs would...
  • Prior to the June ECB meeting the market consensus was for two hikes in 2019, but now the expectation has fallen to one hike. Photo: Reuters

    Market is pricing a dovish ECB

    - Jun 29, 2018 9:30am
    After the June ECB meeting, the first rate hike was pushed from June to September 2019. Before the meeting the June Euro Over Night Index Average (EONIA) priced in 8bps of higher yields; this fell close...
  • A group representing major foreign automakers said imposing tariffs on imported vehicles would  "raise prices for American consumers, limit their choices, and suppress sales and US production of vehicles”. Photo: AFP

    Carmakers say US tariffs will cost hundreds of thousands of jobs

    Jun 28, 2018 9:16am
    Two major auto trade groups warned the administration of US President Donald Trump that imposing up to 25 percent tariffs on imported vehicles would cost hundreds of thousands of auto jobs, dramatically hike prices on vehicles...
  • China's central bank aims to spur lending to needy enterprises, but will at the same time press on with efforts to promote deleveraging. Photo: Reuters

    PBoC moves don’t mean halt of deleveraging policy

    - Jun 27, 2018 4:13pm
    The People’s Bank of China (PBoC) has cut the reserve requirement ratio in a targeted way, and then lowered re-lending rates to small enterprises. Would that be sign of a “U-turn” in China’s deleveraging policy? Alibaba...
  • Structural deleveraging has weighed on the growth of China’s housing and infrastructure investment. Photo: Reuters

    Deleveraging, trade tensions China’s two main challenges

    - Jun 26, 2018 10:13am
    Chinese President Xi Jinping wrote in an article that China must try to overcome Thucydides Trap and the middle-income trap. The first one means China should handle its relationship well with major powers like the US....
  • The People's Bank of China said it will keep monetary policy prudent and neutral. Photo: Bloomberg

    China cuts some banks’ reserve requirements to boost lending

    Jun 25, 2018 9:20am
    China’s central bank will cut the amount of cash that some banks must hold as reserves by 50 basis points (bps), releasing US$108 billion in liquidity, to accelerate the pace of debt-for-equity swaps and spur lending...
  • Made in China 2025 is part of Beijing's plan to turn China into a global manufacturing power. Photo:

    Trump’s trade policy is all about thwarting Made in China 2025

    - Jun 20, 2018 9:20am
    What’s China’s most significant economic strategy? It’s neither Belt and Road Initiative nor Guangdong-Hong Kong-Macau Greater Bay Area. It’s, in fact, the low-profile Made in China 2025. US President Donald Trump has announced new tariffs on US$50...
  • White House trade adviser Peter Navarro said Beijing had more to lose from a trade war. Photo: Bloomberg

    White House piles pressure on China after Trump tariff threat

    Jun 20, 2018 7:20am
    China has underestimated US President Donald Trump’s resolve to impose more tariffs unless it changes its “predatory” trade practices, a White House trade adviser said. Peter Navarro, who views China as a hostile economic and military...
  • US President Donald Trump said he has asked the US trade representative to identify the Chinese products to be subject to the new tariffs. Photo: Reuters

    Trump threatens new tariffs on US$200 billion of China goods

    Jun 19, 2018 8:38am
    US President Donald Trump threatened to impose a 10 percent tariff on US$200 billion of Chinese goods, escalating a tit-for-tat trade war with Beijing, Reuters reports. In a statement on Monday, Trump said he had asked...
  • China's economic direction is clear, with market reforms working well overall and being expanded in a progressive manner. Photo: Bloomberg

    The rise of Asia

    - Jun 15, 2018 10:29am
    Asia is now clearly emerging from its historic position as the “workshop of the world” towards a millennial and services based set of economies, firmly underpinned by structural reforms across China, India and the other major...
  • The macroeconomic impact of the Trump administration’s tariff moves should not be underestimated, IMF’s Christine Lagarde says. Photo: Reuters

    Trump’s tariffs pose risk to global trade, US economy, IMF warns

    Jun 15, 2018 8:21am
    The International Monetary Fund warned on Thursday that US President Donald Trump’s new import tariffs threaten to undermine the global trading system, prompt retaliation by other countries and damage the American economy, Reuters reports. “Let us...
  • Chinese companies had altered their cashflow management to produce much higher free cash flow generation since 2016. Photo: Bloomberg

    China: Defaults and dividends

    - Jun 14, 2018 12:00pm
    While observers have largely found themselves accommodating stable Chinese growth rather than a slowdown, the headlines have been dominated by corporate bond defaults. This should not have been too surprising observing the liquidity and leverage scores...
  • Fed Chairman Jerome Powell speaks at a news conference in Washington on Wednesday following a two-day meeting of the central bank’s rate-setting committee. Photo: Reuters

    Fed raises rates, signals two more hikes this year

    Jun 14, 2018 8:43am
    The US Federal Reserve on Wednesday raised interest rates for the second time this year and signaled two more hikes in 2018 as the world’s largest economy continues to do well amid falling unemployment and improving...
  • Chinese President Xi Jinping speaks at the Shanghai Cooperation Organization summit in Qingdao on Sunday. Photo: Xinhua

    SCO not yet powerful enough to be a match for G7

    - Jun 12, 2018 12:11pm
    As it turns out, the United States and its western allies have completely failed to narrow their divisions over trade and tariffs in the latest G7 summit. Worse still, there is a chance their divisions may...
  • Demonstrators burn US, Italian and British flags at a protest march during the G7 Summit in Quebec City, Quebec, Canada, on Thursday. Photo: Reuters

    Trump attacks EU and Canada on trade ahead of G7 summit

    Jun 8, 2018 8:52am
    A day before he attends a summit of the Group of Seven rich nations in Quebec, US President Donald Trump said on Thursday that France and Canada charge the United States “massive tariffs” and have non-monetary...
  • Even if the best bet is that any emerging-market bond meltdown would remain contained, today’s jitters ought to be a wake-up call, even for advanced economies. Photo: Bloomberg

    Are emerging markets the canary in the financial coal mine?

    - Jun 7, 2018 9:38am
      Are brewing exchange-rate and debt crises in Argentina and Turkey localized events without broader implications? Or are they early warning signs of deeper fragilities in bloated global debt markets that are being exposed as the...
  • The summit in Charlevoix, Quebec, will be the first chance for G7 leaders to confront US President Donald Trump in person since US tariffs on steel and aluminum imports from Canada, Mexico and the EU were imposed last week. Photo: Reuters

    Trump to stick with hard line on trade as G7 showdown looms

    Jun 7, 2018 8:41am
    US President Donald Trump is not backing down from the tough line he has taken on trade, the White House’s top economic adviser said, setting the stage for a showdown with top allies at this week’s...

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