Market

30Sep By Online DeskNo Comments
China, Market

China Investor Forum: The Prospects for the World Economy

Inflation in the US is moderating, and we expect the current disinflation trend to continue While the ECB has cut rates, Japan’s population decline is becoming a key source of inflation and making the BOJ hawkish Despite slower growth in China, economic growth in Asia has held up, thanks partly to the recovery in tech exports 2024 has been and will be an interesting year for economic analysis and macroeconomic investment. In the US and Europe, central banks have already eased monetary policy. After many years of deflation and low inflation, Japan is on its way to normalizing monetary policy. In emerging markets, China is still managing its housing crisis, and India has been on the ascendency. At our recent China Investor Forum in Shenzhen, our economists discussed their medi...
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Xi Jinping unintentionally hit the wrong target with his massive money cannon.
30Sep By Online DeskNo Comments
China, Market

Xi Jinping unintentionally hit the wrong target with his massive money cannon.

Sure, Wall Street. Go ahead. Ride the dragon. There was a moment of grace on Tuesday for investors, market analysts, and finance's top brass when Beijing announced measures to try to reinvigorate China's croaking economy. Pan Gongsheng, a governor of the People's Bank of China, the country's central bank, announced that 800 billion yuan, or about $114 billion, would be injected into the stock market. Policymakers also said they were discussing raising a fund designed to stabilize stocks and announced rules allowing Chinese banks to keep less money in reserve, freeing up 1 trillion yuan to go out asloans. They also lowered the People's Bank of China's medium-term lending rate and key interest rates for banks and customers. Homebuyers can also now put less money down on their p...
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China orders banks to begin lowering the interest rates on current mortgages.
30Sep By Online DeskNo Comments
Asia, China, Market

China orders banks to begin lowering the interest rates on current mortgages.

China's central bank has issued a directive for financial institutions to begin reducing interest rates on existing mortgages, marking a pivotal step in the country’s efforts to support its struggling economy. This announcement comes as part of broader measures aimed at stimulating growth amid ongoing economic challenges as detailed in a report by Reuters. The report further stated that, the decision to cut mortgage rates is expected to provide much-needed relief to millions of Chinese homeowners who have been grappling with rising living costs and a sluggish property market. The central bank's instruction is particularly timely, given that many families are facing financial strain due to the economic downturn worsened by the COVID-19 pandemic and subsequent lockdowns. According to ...
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China has been shooting repeated missile tests, according to Taiwan’s defense ministry.
30Sep By Online DeskNo Comments
China, Market

China has been shooting repeated missile tests, according to Taiwan’s defense ministry.

Taiwan's Defence Ministry said Sunday it detected multiple waves of missile firings within China, days after Beijing said it successfully fired an intercontinental ballistic missile into the Pacific Ocean. The ministry said in a statement that the missile firings were carried out by China's Rocket Force and the Chinese military in Inner Mongolia as well as Gansu and Qinghai provinces and the Xinjiang region in western China. Taiwan said it would continuously monitor developments and that its air defences would maintain a high level of vigilance and alert. China views the self-ruled island of Taiwan as a renegade province that must come under its control, by force if necessary. Taiwan closely monitors China's military activity, and China has in recent years ramped up drills around...
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Does Ireland gain or lose from Chinese investment?
30Sep By Online DeskNo Comments
China, Market

Does Ireland gain or lose from Chinese investment?

The Irish economy has been increasingly attracting Chinese investment, but does it come with a reputational cost? In 2020, 25 Chinese companies had operations in the Republic of Ireland. By this year the number had jumped to 40. For some this new flood of yuan into the country offers Ireland an opportunity to reduce its reliance on being the European base for US tech giants such as Apple and Alphabet. And it creates additional jobs. But for an increasing number of critics, Ireland being home to Chinese firms links the country to the human rights abuse allegations levelled against some such companies. These include Chinese clothing firm Shein, which since May 2023 has had its European headquarters in Dublin. Shein has long been attacked for how the workers who makes its cl...
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“Dreadful” ahead: EU businesses alert China of an impending regulatory conflict
28Sep By Online DeskNo Comments
Asia, China, Market

“Dreadful” ahead: EU businesses alert China of an impending regulatory conflict

Europe’s business leaders are warning that a raft of incoming EU legislation will put companies on a direct collision course with laws in China, which could lead to partial “decoupling” of some supply chains. One of the laws bans products made using forced labour and another requires big firms to conduct human rights and environmental audits of their overseas suppliers. Both have been adopted by the European Union but will take effect in 2027 after a three-year grace period. Businesses will be required to prove their suppliers are in line with EU environmental and social standards, and also that there is no forced labour in their supply chains. Companies fear the new rules will put them in the cross hairs of Chinese authorities. The EU Chamber of Commerce in China ...
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Bangladesh’s rapidly diminishing water resources pose a danger to its economic progress.
28Sep By Online DeskNo Comments
Asia, Market

Bangladesh’s rapidly diminishing water resources pose a danger to its economic progress.

Groundwater in the climate-vulnerable country is depleting faster than ever before, according to new research from WaterAid, falling by as much as three meters per year in some places. Consumption is set to reach 55 billion cubic meters per year by 2040, a 37 per cent increase from 2020 levels. Despite the recent political upheaval, Bangladesh has great economic potential, said Jonathan Farr, director at WaterAid’s Resilient Water Accelerator. “It has a very skilled, highly educated population,” he said, but too much of the country’s growth is fueled by increasing demand for water, in particular for rice cultivation and industries such as textiles.  Climate change is an added risk. Bangladesh experiences flooding from a web of tributaries feeding into the Ganges river, saline intrusion...
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Copper Breaks $10,000 Due to US Economic Strength and China Stimulus
28Sep By Online DeskNo Comments
Asia, China, Market

Copper Breaks $10,000 Due to US Economic Strength and China Stimulus

(Bloomberg) -- Copper rallied back above $10,000 a ton and iron ore broke through $100 after China’s top leaders stepped up efforts to revive economic growth for the world’s largest metals consumer. The price of copper rose more than 2% to a three-month high on the London Metal Exchange after the official Xinhua News Agency reported that China’s Politburo will push for the real estate market “to stop declining” and called for “forceful” rate cuts. That followed a Bloomberg report that China is considering a $142 billion capital injection into the biggest state banks. “They’re trying to restore confidence in their economy,” said Michael Cuoco, head of metals at StoneX Financial Inc. “They’re sending a message to their populace that they understand that there are problems and hardship...
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Wall St ends higher on positive US economic data
28Sep By Online DeskNo Comments
Market, USA, World

Wall St ends higher on positive US economic data

A string of robust U.S. economic data eased concerns that the Federal Reserve may be cutting rates aggressively to curb any slowdown. Weekly jobless claims fell more than anticipated, signaling a steady labor market, while the final reading of gross domestic product confirmed that the economy grew 3% in the second quarter. "It (the GDP number) just kind of reinforces that strong economic growth backdrop that we have been seeing," said Mike Dickson, head of research at Horizon Investments in Charlotte, North Carolina. The benchmark S&P 500 (.SPX), opens new tab closed up 23.11 points, or 0.40%, at 5,745.37, after rising to a record intraday high of 5,767.37. The blue-chip Dow Jones Industrial Average (.DJI), opens new tab rose 260.36 point...
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China questions Calvin Klein on cotton from Xinjiang
27Sep By Online DeskNo Comments
China, Market

China questions Calvin Klein on cotton from Xinjiang

China has announced it is investigating the company that owns US fashion brands Tommy Hilfiger and Calvin Klein for suspected "discriminatory measures" against Xinjiang cotton companies. The move marks a new effort by Beijing to fight back against allegations from western officials and human rights activists that cotton and other goods in the region have been produced using forced labour from the Uyghur ethnic group. The US banned imports from the area in 2021, citing those concerns. China's Ministry of Commerce accused the firm of "boycotting Xinjiang cotton and other products without any factual basis". PVH, which owns the two brands and has a significant presence in China as well as the US, said it was in contact with Chinese authorities. It has 30 days to respond to off...
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