23 January 2019

Macro Economy

  • There is a very good chance that Washington and Beijing can reach a 'reasonable settlement' in their trade dispute, according to US Commerce Secretary Wilbur Ross. Photo: Reuters

    US, China can reach trade deal ‘we can live with’: Wilbur Ross

    Jan 8, 2019 9:09am
    Beijing and Washington could reach a trade deal that “we can live with”, US Commerce Secretary Wilbur Ross said on Monday as dozens of officials from the world’s two largest economies resumed talks in a bid to...
  • Over-reliance on countercyclical fiscal policy will not work any better in this century than in it did in the last, writes Kenneth Rogoff. Photo: Bloomberg

    Central bankers’ fiscal constraints

    - Jan 7, 2019 9:52am
      If you ask most central bankers around the world what their plan is for dealing with the next normal-size recession, you would be surprised how many (at least in advanced economies) say “fiscal policy.” Given...
  • US tariffs have hurt China, giving Beijing a reason to pursue trade talks with Washington, says Donald Trump. Photo: Reuters

    China economy woes help US in trade talks: Trump

    Jan 7, 2019 9:10am
    Trade talks with China are going very well, US President Donald Trump said on Sunday, adding that weakness in the Chinese economy gives Beijing a reason to work toward a deal, Reuters reports. “I think China wants to...
  • Chinese Premier Li Keqiang said Beijing will step up “countercyclical adjustments” of macro policies, Photo: Reuters

    China to cut banks’ reserve requirements and taxes

    Jan 4, 2019 3:06pm
    China will cut banks’ reserve requirement ratios (RRRs), taxes and fees, Premier Li Keqiang said on Friday, as the world’s second-largest economy shows further signs of cooling, Reuters reports. The measures will also include targeted RRR cuts...
  • China and the United States face a key March deadline for talks to end the damaging trade war. Photo: Reuters

    China and US to hold trade talks in Beijing on Jan 7-8

    Jan 4, 2019 1:27pm
    China and the United States will hold vice ministerial level trade talks in Beijing on Jan. 7-8, as the two sides look to end a dispute that is inflicting increasing pain on both economies and roiling...
  • Unemployment is now at multi-decade lows in developed-market economies. Photo: Bloomberg

    US entering late cycle, but no immediate threat of recession

    - Jan 3, 2019 11:18am
    Having begun on a wave of optimism over the prospects for another year of synchronized global growth, 2018 instead developed into a year of divergent trends and de-synchronized growth. Increased geopolitical and economic uncertainties like US-China...
  • US stocks in 2018 had their worst year in a decade, heavily driven by steep price drops in the last quarter. Photo: Reuters

    Trump calls December stock market fall a ‘glitch’

    Jan 3, 2019 8:15am
    US President Donald Trump played down the stock market’s drop at the end of 2018, calling it a “glitch” and saying the market will again go up once various trade deals are settled, Reuters reports.  Trump, who...
  • Despite all the political theater and dramatic rhetoric, Britain’s impending exit from the European Union really does not matter for the world, argues Simon Johnson. Photo: Reuters

    Brexit does not matter

    - Jan 2, 2019 9:44am
    The contours of the nineteenth and early twentieth century were defined in part by a series of consequential British foreign policy and economic decisions. As recently as 2007-2009, British policy affected global outcomes: whereas deregulation of...
  • The increasing strain on factories signals a continued loss of economic momentum and raises the risks to both China and the global economy, especially if Sino-US trade tensions persist. Photo: Reuters

    China’s factory activity falls for first time in over two years

    Dec 31, 2018 1:22pm
    China’s factory activity contracted in December for the first time in more than two years, in a further sign of slackening demand and rising pressure on the world’s second-largest economy as it heads into 2019, Reuters...
  • Donald Trump's reckless policies and trade wars have increased the risk of a financial crisis and global recession, according to Nouriel Roubini. Photo: Reuters.

    Trump vs the economy

    - Dec 31, 2018 10:42am
    Financial markets have finally awoken to the fact that Donald Trump is US president. Given that the world has endured two years of reckless tweets and public statements by the world’s most powerful man, the obvious...
  • The trade pact came into effect on Sunday for Australia, New Zealand, Canada, Japan, Mexico and Singapore. Photo: Reuters

    Pacific trade pact takes off with tariffs cut in six nations

    Dec 31, 2018 8:08am
    A landmark 11-country trade deal, a revamped version of the Trans-Pacific Partnership (TPP), came into force on Sunday with New Zealand’s trade minister hailing the opportunities it presented for exporters, Reuters reports. The deal, which will...
  • US President Donald Trump said he had a “long and very good call” with Chinese President Xi Jinping on Saturday. Photo: Reuters

    Trump says ‘big progress’ on possible China trade deal

    Dec 31, 2018 7:54am
    US President Donald Trump said on Twitter that he had a “long and very good call” with Chinese President Xi Jinping and that a possible trade deal between the United States and China was progressing well,...
  • The billions of dollars of losses incurred by China and the United States as a result of the trade tariffs may give both sides motivation to resolve their differences. Photo: Bloomberg

    Trade war exacting huge toll on US, China economies

    Dec 31, 2018 7:42am
    The US-China trade war resulted in billions of dollars of losses for both sides in 2018, hitting industries including autos, technology – and above all, agriculture. Broad pain from trade tariffs outlined by several economists shows...
  • Most credit officers at financial institutions had raised bets over the course of 2018 that the value of emerging market assets would fall, according to a US central bank survey. Photo: Reuters

    Survey points to a scaling back of bets on emerging market gains

    Dec 28, 2018 8:39am
    Most financial market credit officers surveyed by the US Federal Reserve in November said their big clients were exposed to emerging markets but were scaling back bets emerging market assets would rise in value, Reuters reports....
  • The EU Commission’s new president will face a parliament with many more euro-skeptics. Photo: Reuters

    Year-end economic lyric

    - Dec 27, 2018 9:00am
    Europe: Political changes leave their mark on the European economy as institutional uncertainty prevails. After the European elections in May, Jean-Claude Juncker hands over to Manfred Weber as new president of the EU-Commission. He faces a...
  • Manufacturers must be flexible in their production chains and be able rebuild them in different places, Foxconn’s Terry Gou has said amid growing worries of a prolonged Sino-US trade war. Photo: Reuters

    US trade war prompts Taiwan firms in China to look elsewhere

    - Dec 27, 2018 8:30am
    The worsening Sino-US trade war is driving Taiwan firms out of mainland China. Fear of losing access to their most important export market, on top of already existing problems like soaring Chinese labor costs and tougher...
  • The National People’s Congress Standing Committee is said to be considering a new draft law on foreign investment to replace three existing laws. Photo: Reuters

    China said to plan new unified foreign investment law

    Dec 24, 2018 9:41am
    China could introduce a new law on foreign investment to replace three existing laws on joint ventures and wholly-owned foreign firms, according to reports. A draft law on foreign investment has been submitted to the National...
  • China wants to increase the role and influence of the Communist Party in the private sector. Photo: Reuters

    The risk of more Communist Party influence in Chinese firms

    - Dec 20, 2018 10:51am
    Since coming to power in 2012, President Xi Jinping has sought to increase the power of the Communist Party of China (CPC) in the economy. We saw in 2017 and 2018 numerous state-owned companies amending their...
  • European officials are masters at cobbling together last-minute deals. Photo: Reuters

    2019 won’t be to everyone’s taste

    - Dec 20, 2018 10:45am
    The party is coming to an end. For 10 years, central banks fueled the good times with a combination of low interest rates and quantitative easing to boost the global economy following the financial crisis of...
  • Fed Chairman Jerome Powell speaks at a news conference in Washington on Wednesday following a policy meeting. Photo: Reuters

    Fed raises interest rates, signals slower pace next year

    Dec 20, 2018 8:55am
    The US Federal Reserve on Wednesday raised interest rates for the fourth time this year time, but signaled fewer hikes next year than what had been projected earlier.  In a statement issued after a two-day policy...

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