Market Archives - FINANCIAL POST

<strong>Jidu Auto’s shutdown signals trouble in China’s EV market</strong>

20Dec

By Michael SmithNo Comments

China, Market

Jidu Auto’s shutdown signals trouble in China’s EV market

Jidu Auto, a rising star in the Electric Vehicle (EV) sector, grabbed headlines just a few months ago with the launch of its second model. However, the company abruptly announced massive layoffs and the closure of its operations this week, stirring concerns about an impending shakeout in China's EV industry. "It's over. Don't watch anymore; we're shutting down. Just leave. Yes, our car company has gone bankrupt. It happened today. Leave quickly," declared a Jidu Auto live stream host tearfully, highlighting the shock and devastation among the employees. On December 13th, BYD and Geely released a joint statement revealing that Jidu Auto would undergo layoffs and cease operations. The statement cited "tremendous changes" in the industry's competitive landscape, making the curre...

13Dec

By TheGreenZoneNo Comments

Market, USA, World

Economic Forecast for the United States

The US economy has had the strongest recovery from the COVID-19 pandemic of any major developed economy. Annual inflation is approaching the Federal Reserve’s target without a recession, non-managerial real wages have exceeded pre-pandemic trends, consumer spending is continuing to exceed expectations, investment in factories is at record levels, and the United States is a net exporter of petroleum products.1 Against this backdrop, in January a new administration will take charge of government. Initial market response to the news was favorable,2 with the expectation that the new administration will be able to build on the economy’s strong foundations and unlock further growth. At the same time, there remains uncertainty around the potential implications of economic policies of the...

A new dollar bloc: Reglobalization in the face of United States-China hostilities

3Dec

By TheGreenZoneNo Comments

Asia, China, Market, USA

A new dollar bloc: Reglobalization in the face of United States-China hostilities

The fragmenting of free trade and the rise of industrial policy have resulted in the nascent formation of a trade, finance and currency bloc organized around American economic and security interests. Although not formalized, the democracies in the West and their primary trading partners in Asia, excluding China, appear to be coalescing around mutual economic and security interests in a de facto dollar bloc, with the U.S. Federal Reserve as the lender of last resort. A trading bloc of democracies would include more than 56% of the world’s gross domestic product. China, by contrast, has a 16.8% share of world GDP, while India has 3.4% and Russia 1.9%. In some respects, this dollar bloc evolved out of the crucible of the 2008−09 financial crisis and lessons learned around supply cha...

30Nov

By TheGreenZoneNo Comments

Asia, Market, USA, World

Asia Economic Monthly: Asia’s Trump surprise

Donald Trump has won the US presidential election. Tariffs and tax policy will likely be the focus under Trump 2.0, according to Nomura analysis. The administration may implement 60% tariffs against China, which may come into effect by mid-2025, and baseline tariffs of 10% on most foreign products imported by the US. What Trump 2.0 means for Asia Asia is better prepared this time. Trump’s re-election has less of a shock factor given greater familiarity with his policies. Asia is also more resilient, due to the ongoing trends of US-China decoupling, shifts in global supply chains and lower Asian exports to China. Yet, Trump 2.0 will likely mean more policy uncertainty, which may be a negative for Asia. There could be a larger drag on 2025 GDP growth. Even prior to t...

30Nov

By TheGreenZoneNo Comments

Asia, Market

Asia’s transition to climate resilience

Reflecting on the just-concluded COP29 deliberations, it’s clear that Asia’s climate journey is entering a more ambitious phase. Talks at Baku highlighted the region’s essential role in tackling global climate challenges, with conversations ranging from robust carbon markets to ramping up adaptation actions. While negotiations over a new collective quantified goal for global climate finance are casting a dark shadow, the conversations coming out of COP29 underscore the willingness of governments, businesses, and communities across Asia to move from commitments to actionable, region-specific climate solutions. For me, these are the key themes emerging as we look back on 2024. Innovation in the mobility sector: Asia’s mobility sector is rapidly innovating to reduce emissions, with a dist...

Five reasons why India’s GDP might surpass Japan’s to become the fourth biggest

29Nov

By TheGreenZoneNo Comments

Asia, Market

Five reasons why India’s GDP might surpass Japan’s to become the fourth biggest

India’s economy expanded by 5.4 per cent in the July-September quarter of the ongoing fiscal year, marking a slowdown from the previous quarter’s 6.7 per cent growth. Despite this deceleration, India maintains its position as the fastest-growing major economy globally. It’s this kind of sustained growth that had led to expectations that India will surpass Japan to become the world’s fourth-largest economy. The International Monetary Fund (IMF) projects that this will happen as early as 2025. The international body estimates Indian economy’s size would be $4.34 trillion, compared to Japan’s $4.31 trillion. Here’s a look at five factors that could be responsible for such an achievement: Attraction of global investments: India’s financial markets have become increasi...

Before the long weekend, the dollar declines due to a dump of economic data.

29Nov

By TheGreenZoneNo Comments

Market, USA, World

Before the long weekend, the dollar declines due to a dump of economic data.

The dollar fell broadly on Wednesday in thin pre-holiday trade, digesting a slew of indicators that underscored U.S. economic resilience while investors assessed the risk that President-elect Donald Trump will start a tariff war no one will win. The decline further unwound the dollar's recent rally. Few traders were interested in building or holding positions before a long Thanksgiving weekend for many of them that dovetails with month end. Markets are closed Thursday and exchanges close early on Friday. Moreover, revised data showing gross domestic product rose at a 2.8% rate in the third quarter, as expected and the same as last month's first estimate, did not much bolster the case for the Federal Reserve to ease again next month, although traders still leaned that way, lifting od...

According to a survey, Asian steelmakers are failing to transition to renewable energy.

29Nov

By TheGreenZoneNo Comments

Asia, Market, World

According to a survey, Asian steelmakers are failing to transition to renewable energy.

Asian steelmakers are among the worst performers at making the switch to renewables, according to a new survey that found many of them are still entirely dependent on fossil fuels for production. Steel production accounts for about 8% of global carbon emissions and about 30% of emissions from industry. A majority of the sector’s emissions are tied to its use of metallurgical coal, which is a key source of heat and carbon needed to turn iron ore into steel. Coal-fired blast furnaces — that melt iron ore and create pig iron — produce 2 metric tons of CO2 for each ton of output. That has put steelmaking in the focus for global climate activists and policymakers, as the world races to make a critical energy transition. But a survey by Sydney-based climate group Action Spea...

29Nov

By TheGreenZoneNo Comments

Asia, China, Market

Asia in denial

I saw nothing but denial in my recent post-US election tour of Asia, with stops in Hong Kong, Shenzhen, Beijing, and Singapore. Taking a cue from surging global equity markets, Asians are making every effort to wish away problems at home and abroad. Nowhere is this more evident than in China. President Xi Jinping has long stressed his preference for the “good stories of China” (bit.ly/3Z8EI75). Amid the most serious Chinese economic slowdown since the 1970s, government attempts to put a positive spin (bit.ly/3Ozky0R) on the country’s outlook have intensified. An improvement in equity-market sentiment (bit.ly/4fL6ZaO) — by October 8, the CSI 300 was 35% above its low on September 13 — was the first talking point in all my discussions. Never mind that this rebound, which has si...

Maldives abandons “India-Out” in favor of a financial lifeline

28Nov

By TheGreenZoneNo Comments

Asia, Market, World

Maldives abandons “India-Out” in favor of a financial lifeline

The state visit to India last month by Maldives President Mohamed Muizzu involved a visible effort to repair the diplomatic relationship. New Delhi more than welcomed the rapprochement and signed a range of agreements with Male. India-Maldives ties were bumped up to “Comprehensive Economic and Maritime Security Partnership,” with an ambitious vision document attached. Muizzu’s visit starkly contrasted the sentiment that accompanied his rise to power. He took took office last year following a politically charged “India-Out” election campaign. Immediately upon victory, he removed from the country the minimal Indian military presence (in place primarily to assist Male operate Indian defence platforms) and “reviewed” and junked important strategic agreements with I...

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