15 October 2018

Macro Economy

  • Beijing has unveiled new duties on American goods, hitting back after the Trump administration unveiled fresh tariffs on Chinese products. Photo: Reuters

    China slaps tariffs on US$60 bln US goods in retaliatory move

    Sep 19, 2018 9:03am
    China on Tuesday announced tariffs on US$60 billion worth of American goods, hitting back at Washington a day after the Trump administration unveiled fresh trade sanctions on Chinese products. “China is forced to respond to U.S....
  • The challenge for the future of work is not really about the quantity of jobs, but their quality, and whether they will pay enough to provide a decent standard of living. Photo: Bloomberg

    Universal basic income or universal living wage?

    - Sep 18, 2018 9:45am
    A universal basic income (UBI) would be both regressive and prohibitively expensive. Yet the idea continues to attract a motley crew of tech and labor leaders, libertarians, and progressives, who fear a coming age of mass...
  • Donald Trump has escalated a trade war with Beijing by announcing new tariffs on US$200 billion worth of Chinese goods. Photo: Reuters

    Trump announces new round of tariffs on Chinese goods

    Sep 18, 2018 8:49am
    US President Donald Trump announced on Monday that he will impose 10 percent tariffs on about US$200 billion worth of Chinese imports, escalating a trade war with Beijing. However, he spared some consumer products, including smart...
  • China's economic outlook is being clouded by the escalating US trade dispute and cooling domestic demand. Photo: Bloomberg

    China industrial output rises but investment growth slows

    Sep 14, 2018 11:39am
    China reported better-than-expected industrial output and retail sales on Friday, but a key investment gauge fell to a fresh record low, Reuters reports. The data, along with earlier softer readings on trade and credit growth, reinforce...
  • Ten years after the collapse of Lehman Brothers and the financial crisis, the world doesn’t seem to have learnt all the lessons, economists say. Photo: Bloomberg

    The makings of a 2020 recession and financial crisis

    - Sep 14, 2018 10:48am
    As we mark the decennial of the collapse of Lehman Brothers, there are still ongoing debates about the causes and consequences of the financial crisis, and whether the lessons needed to prepare for the next one...
  • A meeting among Cabinet-level officials could ease market worries over the escalating tariff war that threatens to engulf all trade between the United States and China. Photo: Reuters

    China won’t surrender to US demands in trade talks: state paper

    Sep 14, 2018 9:11am
    China will not buckle to US demands in any trade negotiations, the major state-run China Daily newspaper said in an editorial on Friday, after Chinese officials welcomed an invitation from Washington for a new round of...
  • More than 60 percent of US companies polled said the US tariffs were already affecting their business operations, while a similar percentage said tariffs by China on US goods were having an effect on business. Photo: Reuters

    US firms in China feeling adverse impact of trade war: survey

    Sep 13, 2018 2:07pm
    American companies in China are being hurt by tariffs in the growing trade war between Washington and Beijing, according to a survey of hundreds of firms, prompting the US business lobbies behind the poll to urge...
  • If there is no trade deal between the United States and China, tariffs could have a strong bearing on the next US presidential election. Photo: Bloomberg

    Trade war: How much is theatre, how much is real?

    - Sep 13, 2018 10:56am
    The “Trade Wars” saga continues to screen at full theatres around the globe. How much is theatre, for domestic political consumption, and how much is real? That is the key question for investors. Unfortunately, it looks...
  • US rate hike cycle could continue for two more years, Fed Governor Lael Brainard has suggested. Photo: Reuters

    Fed official sees room for rate hikes over two more years

    Sep 13, 2018 10:19am
    The US central bank has room to raise interest rates over the next couple of years without slowing economic growth, a Fed board member said on Wednesday. With economic growth strong, unemployment at 3.9 percent and inflation...
  • US Treasury Secretary Steven Mnuchin sent the invitation to his Chinese counterparts, including Vice Premier Liu He, for talks in coming weeks, Reuters reported. Photo: AFP

    US invites China to trade talks as fresh tariffs loom

    Sep 13, 2018 9:20am
    The Trump administration has invited Chinese officials to restart trade talks as Washington prepares to escalate the US-China trade war with tariffs on US$200 billion worth of Chinese goods, Reuters reports. Larry Kudlow, who heads the...
  • US President Donald Trump has warmed to the use of tariffs, implementing billions of dollars worth in an effort to use them as a threat to win concessions or in the belief they will create US jobs. Photo: Reuters

    US business readies public fight against Trump tariffs

    Sep 12, 2018 1:38pm
    After months of waging a behind-the-scenes war against President Donald Trump’s trade tariffs that have escalated far beyond what business groups once imagined, more than 60 US industry groups are launching a coalition on Wednesday to...
  • The Indian rupee has fallen to an all-time low, becoming Asia's worst-performing currency this year. Photo: Bloomberg

    India: The biggest risk in emerging markets?

    - Sep 12, 2018 9:58am
    The biggest mistake in analyzing macroeconomic data is to assume causality to factors that are just catalysts. Don’t blame the Fed or Trump. That is just noise. The problem of emerging markets is largely self-inflicted and...
  • Washington’s non-compliance with a WTO ruling in a dispute over dumping duties is prompting China to plan some follow-up action. Photo: Reuters

    China seeks WTO authorization to impose sanctions on US

    Sep 12, 2018 9:33am
    China told the World Trade Organization (WTO) on Tuesday that it wants to impose US$7 billion a year in sanctions on the United States in retaliation for Washington’s non-compliance with a ruling in a dispute over...
  • China has contributed an even larger share of global growth in this decade than it did in the last. Photo: Bloomberg

    The global economy ten years after

    - Sep 11, 2018 10:09am
    Much will be said about the tenth anniversary of the 2008 financial crisis, so I will focus on the global economy, which has not been nearly as weak as many seem to think. According to the...
  • The United States and China have activated additional tariffs on US$50 billion of each other’s goods since July, as trade friction between the world’s two biggest economies worsened. Photo: Reuters

    China vows to respond if US takes new steps on trade

    Sep 10, 2018 4:34pm
    China will respond if the United States takes any new steps on trade, the foreign ministry said on Monday, after President Donald Trump warned he was ready to slap tariffs on virtually all Chinese imports into...
  • A dynamic workplace recovery provider should be able to offer a network that can cater to global needs. Photo: AFP

    Why traditional workplace recovery strategies are outdated

    - Sep 10, 2018 10:49am
    Hong Kong continues to shine as one of the most vibrant and vital business hubs in the world, with a recent survey revealing that over 3,500 multinational corporates have their regional headquarters or key offices in...
  • Prime Minister Shinzo Abe is set on raising consumer taxes, even while the economy is still healing, in a bid to pare down Japan's massive debt buildup, which is twice the size of its GDP. Photo: Bloomberg

    Tough decisions ahead for Japan

    - Sep 10, 2018 10:40am
    Japan’s economy is in pretty good shape – second-quarter GDP growth jumped 1.9 percent from the previous quarter, a welcome respite after a weak first quarter (–0.8 percent q/q). Wages are growing at the fastest pace...
  • China's latest export figures will add fuel to the Trump administration's trade row with Beijing. Photo: Reuters

    China trade surplus with US hits new high in Aug

    Sep 10, 2018 9:43am
    China’s trade surplus with the United States widened to a record in August even as the country’s overall export growth slowed slightly, Reuters reports, citing data released over the weekend. Trade surplus with the United States...
  • The Turkish lira went into freefall after US President Donald Trump tweeted a proposal to double his country’s tariffs on imports of Turkish steel and aluminum. Photo: Reuters

    Turkey: strong macroeconomic response required

    - Sep 10, 2018 7:15am
    Recent events have brought to a head a long-brewing crisis for Turkey. The Turkish lira already had a difficult year, reaching new record lows against the US dollar. But the lira went into freefall on Aug....
  • File picture of jobseekers in New York. Too little was done in the aftermath of the financial crisis to stimulate aggregate demand, and a more equal income distribution operates to increase aggregate demand. Photo: Bloomberg

    Final thoughts on secular stagnation

    - Sep 7, 2018 10:24am
    Joseph Stiglitz, Roger Farmer, and I are now and have long been in agreement on what are probably the most important points. The “New Keynesian” paradigm that sees business cycles as arising from temporary rigidities in...

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