21 April 2018

Macro Economy

  • China's Foreign Minister Wang Yi arrives for a news conference at the annual meeting of the National People's Congress in Beijing on Thursday. Photo: Reuters

    China warns of ‘necessary response’ in case of trade war with US

    Mar 8, 2018 4:09pm
    China will respond as necessary in the event of a trade war with the United States, Foreign Minister Wang Yi said on Thursday, while warning that such a war would only harm all sides. Wang, speaking...
  • The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will reduce tariffs in countries that together amount to more than 13 percent of the global economy. Photo: AFP

    Eleven nations, but not US, to sign Trans-Pacific trade deal

    Mar 8, 2018 3:51pm
    Eleven countries are expected to sign a landmark Asia-Pacific trade agreement in the Chilean capital of Santiago on Thursday, as an antidote to the increasingly protectionist bent of the United States, which last year pulled out...
  • US President Donald Trump is very good at brinkmanship, ratcheting up pressure on the other party to get what he wants. Photo: Reuters

    Trade war fears and Trump’s brinkmanship

    - Mar 8, 2018 8:00am
    Global stock markets staged a rally after US President Donald Trump dismissed speculation that Washington is gearing up for a trade war following his move to impose stiff tariffs on steel and aluminum imports. Trump is very...
  • The United States will impose a duty of 25 percent on steel and 10 percent on aluminum to counter cheap imports, especially from China, that President Donald Trump says undermine US industry and jobs. Photo: Bloomberg

    Trump set to authorize steel, aluminum tariffs with exemptions

    Mar 8, 2018 7:47am
    The White House raised the possibility that impending hefty US tariffs on steel and aluminum imports could exclude a clutch of countries other than Canada and Mexico. US President Donald Trump is expected to sign a...
  • Chinese authorities are said to be mulling a plan that would allow overseas listed Chinese tech firms to get listed on domestic stock exchanges through the depositary receipts route. Photo: Reuters

    Is CDR route the best way for China to bring home tech giants?

    - Mar 7, 2018 8:47am
    Securities regulators in China are reportedly considering a plan to allow overseas-listed companies to float on the domestic exchanges through the Chinese depositary receipts (CDR) route. That would allow Chinese internet giants such as Tencent Holdings...
  • Top White House economic adviser Gary Cohn, who opposes the proposed tariffs on steel and aluminum imports, said he is resigning. Photo:Reuters

    Trump stands firm on tariffs as opposition gathers steam

    Mar 7, 2018 8:40am
    Republican lawmakers stepped up calls for US President Donald Trump to pull back from proposed tariffs on steel and aluminum imports as a top White House economic adviser who opposes the tariffs said he is resigning,...
  • Economists expect China's growth momentum to weaken this year as the government reins in corporate debt. Photo: Reuters

    China keeps growth target of around 6.5 percent this year

    Mar 5, 2018 10:41am
    China aims to expand its economy by around 6.5 percent this year, the same as in 2017, Premier Li Keqiang said in remarks prepared for delivery at the opening of the annual meeting of parliament on...
  • Turkey is implementing measures to mitigate the negative side-effects of rapid economic growth. Photo: Anaru/ Wikimedia Commons

    Turkish economy: Navigating the turning tides

    - Mar 5, 2018 10:18am
    We have been saying recently that investors should prepare for greater volatility as the world’s major central banks start to tighten the spigot of liquidity that has supported not only asset prices, but also the synchronized...
  • The risk profile is largely shaped by foreign currency exposure. From a risk management perspective, it is generally a good idea to hedge the currency risk for bonds. Photo: Reuters

    Beware of currency risks

    - Feb 28, 2018 9:01am
    Investors often tend to underestimate the currency effect linked to investments in foreign currencies. Bond yields are heavily influenced by foreign currency movements. With equities, currency fluctuations generally even out over time. Investing abroad means taking...
  • US authorities want to prevent a recurrence of what happened in September 2008, when the collapse of Lehman Brothers triggered a cascade effect that nearly destroyed the financial system. Photo: Reuters

    The making of Lehman Brothers II

    - Feb 27, 2018 10:13am
    Last week, with some fanfare, the US Treasury Department released a report on what to do about the Orderly Liquidation Authority. The OLA, created under the Dodd-Frank financial reform legislation of 2010, was intended to prevent...
  • Divergent fates: The overseas acquisitions launched by (clockwise from top left) Fosun's Guo Guangchang, Wanda's Wang Jianlin, HNA's Chen Feng and Anbang's Wu Xiaohui have different outcomes. Photos: Bloomberg, Tencent, Baidu

    Four Chinese firms meet different fates in foreign buying sprees

    - Feb 27, 2018 8:31am
    Anbang Insurance, HNA, Dalian Wanda and Fosun were once known in China as the top four for their aggressive acquisitions overseas. But following the government’s clampdown on such activities, the four companies have met rather different...
  • The European Central Bank has been pushing policy and market interest rates well below their equilibrium levels. Photo: Bloomberg

    The financial roots of the eurozone surplus

    - Feb 26, 2018 9:42am
    In December 2017, the eurozone’s current-account surplus reached an all-time high of 391 billion euros (US$483 billion), prompting the usual calls for Germany to “do more” to resolve the imbalance through fiscal policy. But such policy...
  • The rate of return on stocks is likely to be substantially lower over the next 15 years than it was over the last 15 years. Photo: Reuters

    The economic message from equity markets

    - Feb 26, 2018 9:30am
    The recent stock-market correction – the first in the United States in two years – has invited substantial commentary about what investors should do, the role machines have played, and the implications for the real economy....
  • China's spending on research and development activities is expected to surpass that of the US this year. Photo: Bloomberg

    Year of the Dog looks promising for Chinese equities

    - Feb 22, 2018 11:26am
    In this Lunar New Year, the stars seem to be aligning for China. President Xi Jinping is providing steady leadership, “One Belt, One Road” is spurring massive regional investments, and China’s R&D spend could soon overtake...
  • Traders work on the floor of the New York Stock Exchange shortly after the opening bell on Wednesday. Photo: Reuters

    US stocks fall as Fed minutes send bond yields higher

    Feb 22, 2018 9:13am
    US stocks finished lower in a choppy session Wednesday on renewed worries over higher interest rates following the release of minutes from the Federal Reserve’s January meeting. Investors became nervous as the yield on the benchmark 10-year...
  • South Korea is challenging US anti-dumping duties of up to 60.81 percent that were slapped on its steel products and transformers in May 2016. Photo: Bloomberg

    South Korea launches WTO trade challenge against US duties

    Feb 21, 2018 9:21am
    South Korea has launched a wide-ranging complaint at the World Trade Organization to challenge the United States’ use of anti-subsidy and anti-dumping duties, citing their use on steel and transformers, Reuters reports, citing a WTO filing....
  • Bank of Japan governor Haruhiko Kuroda has achieved some success in stoking inflation from the depths of the country's decades-long disinflation era. Photo: Reuters

    BoJ chief Kuroda’s quandary

    - Feb 20, 2018 1:36pm
    After months of speculation, Prime Minister Shinzo Abe’s cabinet has announced nominations for the Bank of Japan’s (BoJ) new leadership. Haruhiko Kuroda will retain his governorship for a second term, and Masayoshi Amamiya has been promoted...
  • According to a recent industrial survey, the proportion of loss-making firms in China's materials sector fell from a high of 23 percent in 2015 to 15 percent in 2017. Photo: China Daily

    The Year of the Dog: Will China lead the pack again?

    - Feb 20, 2018 10:32am
    Although China is a market many commentators love to hate, it was anything but a dog last year. Most global and emerging market investors were caught off guard by the strong currency, as the market was...
  • Because intelligent machines can increasingly fill low-wage jobs, developing countries’ cost advantage may have been diminished significantly. Photo: Xinhua

    The future of economic convergence

    - Feb 13, 2018 9:01am
    The world is now facing what observers are calling a “synchronized” growth upswing. What does this mean for the economic “convergence” of developed and developing countries, a topic that lost salience after the Great Recession began...
  • The strength of the yuan has been underpinned by China’s better than expected economic growth and tightening monetary policy. Photo: Reuters

    Yuan faces appreciation pressure

    - Feb 6, 2018 2:11pm
    Jerome Powell took office as the new Federal Reserve chairman on Monday. And a global currency war could be just around the corner. Since the beginning of the year, the US dollar index has basically entered...

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