24 January 2018

Macro Economy

  • Instead of Guangzhou, Hangzhou is featured in a memorial stamp for the 19th Party Congress, along with three other top Chinese cities -- Beijing, Shanghai and Shenzhen. Photo: Wenweipo

    Will Guangzhou get left behind amid the tech boom?

    - Oct 26, 2017 12:34pm
    China’s State Post Bureau has released memorial stamps for the 19th Party Congress. The stamps feature Beijing, Shanghai, Shenzhen and Hangzhou. That has stoked debate on whether Hangzhou will overtake Guangzhou as one of the country’s...
  • Most of the wealth created since the 2008 global financial crisis has gone to the rich. Photo: AFP

    Economic growth is no longer enough

    - Oct 26, 2017 9:37am
    Macroeconomic data from the world’s advanced economies can be mystifying when viewed in isolation. But when analyzed collectively, the data reveal a troubling truth: without changes to how wealth is generated and distributed, the political convulsions...
  • The National Development and Reform Commission has indicated that the oil and gas sectors will be included in the mixed-ownership reform. Photo: Reuters

    Mixed-ownership reform to become a key investment theme

    - Oct 24, 2017 9:52am
    All eyes at home and abroad were on the Chinese Communist Party (CCP) 19th Party Congress when it kicked off last week. Chinese President Xi Jinping presented achievements over past five years and also outlined a...
  • The October 2017 IMF Financial Stability Report highlights the risk from the high indebtedness of developed countries. Photo: AFP

    Debt developments: More divergence in euro area

    - Oct 23, 2017 9:00am
    Debt-to-GDP ratios among euro area members have diverged since the financial crisis. However, for most countries interest expenses fell. This is a key risk to budget deficits if bond yields increase. We favor underweighting French sovereign...
  • Chinese President Xi Jinping wants to  build China into an advanced and modern socialist power in the 21st century. Photo: Reuters

    What investors can take away from Xi Jinping’s speech

    - Oct 20, 2017 11:10am
    Chinese President Xi Jinping delivered a three-and-a-half hour speech at the opening of the 19th party congress and the most striking thing in his report is his ideological confidence. He intends to build China into an...
  • As an example of the impact of tech disruption, the value of office-supply chain Staples has fallen by half over the past 10 years. Photo: Reuters

    Investing is a marathon, not a sprint — even during revolutions

    - Oct 17, 2017 4:40pm
    We live in revolutionary times with powerful implications of tech disruption, a shift to quantitative tightening and the populist revolt against globalization. With many markets near all-time highs and the best synchronous global growth this decade,...
  • Political shocks so far have not materially affected underlying economic activity. Photo: Reuters

    Political uncertainty not affecting economic activity

    - Oct 17, 2017 11:06am
    One question I am often asked by investors is – how can stock markets make new highs when there is so much political uncertainty in the world? On the whole, markets are coping rather well with...
  • Goldman Sachs has released a report on China’s Nifty Fifty, a selection of 50 stocks that would gain from China’s shift to a new economic structure. Photo: China Daily

    What betting on New China Nifty Fifty tells us

    - Oct 16, 2017 5:09pm
    As China’s 19th Communist Party Congress looms, many brokerages are releasing upbeat outlook on the nation’s economic growth prospects. Among them, Goldman Sachs has coined New China Nifty Fifty by selecting 50 stocks from 18 industries...
  • World Bank programs should be tailored to help transition some middle-income countries off donor assistance, says Steven Mnuchin, Photo: Reuters

    US calls for changes in IMF, World Bank policies

    Oct 16, 2017 8:51am
    The US urged the International Monetary Fund to help move trading powers away from large trade surpluses, and called on the World Bank to curtail its lending to middle-income countries, the Wall Street Journal reports. “The...
  • Haruhiko Kuroda says Japan is still a long way from achieving a 2 percent inflation target. Photo: Reuters

    BoJ to keep pursuing aggressive monetary easing: Kuroda

    Oct 16, 2017 8:39am
    Bank of Japan governor Haruhiko Kuroda said Sunday the central bank would continue its expansive monetary policy in an effort to boost inflation, the Wall Street Journal reports. “The Bank of Japan will consistently pursue aggressive...
  • Fed chief Janet Yellen expects the US economy to exceed its long-term trend during the second half of the year. Photo: Reuters

    US economic recovery warrants further rate hikes: Yellen

    Oct 16, 2017 8:24am
    The strength of the US labor market calls for continued gradual increases in interest rates despite subdued inflation, Federal Reserve Chair Janet Yellen said on Sunday. In a speech in Washington, the central bank chief also...
  • Central bank governor Zhou Xiaochuan says a global safety net can be more efficient than bilateral arrangements. Photo: Reuters

    China central bank’s Zhou urges transparency in public finances

    Oct 16, 2017 8:16am
    China’s central bank chief on Sunday called for greater transparency in Chinese public finances, saying their murkiness means investors underestimate the risks of local government debt, the Wall Street Journal reports. Zhou Xiaochuan, governor of the...
  • The Greater Bay Area initiative can provide people and businesses in the Pearl River Delta region significant long-term benefits, according to CPA Australia. Photo: CNSA

    Greater Bay Area plan: How to ensure its success

    - Oct 13, 2017 12:39pm
    With China’s unprecedented economic growth and urbanization that began nearly 40 years ago, the major cities of the Pearl River Delta, including Hong Kong, now intersect to such an extent that they are collectively viewed as...
  • Inflation in Mexico has recently spiked due mostly to the depreciation of the peso. Photo: Kuow

    Brazil and Mexico make interest rate history

    - Oct 13, 2017 11:35am
    Brazil and Mexico have long battled it out as heavyweights of the Latin American economies. For much of the new millennium, one defining feature of their rivalry is that Mexico has had lower interest rates than...
  • The Chinese Communist Party is preparing for its 19th Congress, which is set to open on October 18. Photo: The Diplomat

    China 19th Party Congress: What should investors do?

    - Oct 13, 2017 9:30am
    When it comes to risks in the Chinese economy and capital markets, investors have been fixated on a mindset since the beginning of the year that stabilization would take priority before the 19th Party Congress, with...
  • Shinzo Abe's approval rating has improved to 40-50 percent from around 30-35 percent two months ago thanks to his hard stance on North Korea and an improving economy. Photo: Reuters

    Japan snap election: Market implications

    - Sep 29, 2017 11:31am
    Japanese Prime Minister Shinzo Abe announced this week that he will dissolve the lower house of parliament and conduct an early election on October 22. The House of Representatives election will be the last for Abe...
  • While many are enamored of the hit fantasy drama GoT, some are not upbeat about the world of IoT, which is a real world of magic that we live in today. Photos: Internet

    From Game of Thrones to IoT: Magic in our midst

    - Sep 26, 2017 3:04pm
    Exaggerating just a fair bit, 90 percent of the world’s connected population are more in tune with the Game of Thrones (GoT) TV series than they are with Internet of Things (IoT). I did a dipstick...
  • Young executives can learn a lot from their experienced colleagues, and vice versa. Photo:

    How reverse mentoring helps to connect with young generation

    - Sep 26, 2017 1:02pm
    Many universities and big corporations have mentoring schemes, matching junior students with outstanding graduates or management trainees with senior management. Mentors guide and advise young people on their academic and career development. However, I often hear...
  • China's consumption dropped in August. End-user demand was not strong enough to support higher consumer prices. Photo: China Daily

    Slower China growth could lead to lower short-term rates

    - Sep 26, 2017 8:02am
    In the 18th party congress in 2012, Chinese President Xi Jinping said that “the people’s longing for a good life is what we are fighting for”. Over the past five years, China has made a lot...
  • If the renminbi comes under pressure due to Fed tightening, China may have no choice but to also tighten its monetary policy. Photo: China Daily

    How will Fed’s balance sheet reduction affect China?

    - Sep 22, 2017 5:00pm
    The US Federal Reserve has revealed that it will begin shrinking its balance sheet from October. Meanwhile, expectations are building that the central bank will announce another rate hike within this year. The two factors are...

EJI Weekly Newsletter

Please click here to unsubscribe