Market Archives - Page 18 of 47

21Sep

By Online DeskNo Comments

Market, USA

US Economic Projection

The Q3 2024 forecast indicates how robust consumer spending, high business investment, and lower interest rates have kept optimism about the US economy intact. However, risks like geopolitical tensions and persistently high inflation remain. Despite persistent concerns surrounding the durability of growth and interest rate policy, the US economy remains fundamentally strong. While real gross domestic product growth slowed in the first quarter of this year, growth rebounded to a strong 3.0% in the second quarter. All available evidence suggests policymakers may have managed to bring inflation under control without causing a recession. Deloitte’s baseline scenario remains relatively positive. The boom in factory construction will continue to boost the economy’s potential in the coming...

20Sep

By Online DeskNo Comments

China, Market

Et tu, Milei? Is Argentina Regaining Contact with China?

When Mauricio Macri was elected president of Argentina in 2015 as leader of the center-right coalition Cambiemos, he adopted a confrontational stance on China, distancing himself from the approach of his predecessor, Cristina Kirchner. He instead privileged relations with the United States and other Western powers to “reinsert Argentina into the world.” It did not last. By the end of his first year in office, Macri had signed a series of economic agreements with Beijing. By the end of his administration in 2019, China had consolidated its role as a strategic partner. Similarly, Javier Milei came to the Casa Rosada skeptical about Argentina’s friendship with China. In his case, however, the libertarian leader also brought an ultra-ideological and personalistic approach to foreign policy...

19Sep

By Online DeskNo Comments

Asia, Market, World

The geopolitics of the green transformation in Southeast Asia

As their green-transition efforts are increasingly caught up in the US–China rivalry, Southeast Asian states must find a way to convert potential short-term economic gains into long-lasting ones. With policymakers focused on global geopolitical flashpoints from the South China Sea to Myanmar and the Middle East, Southeast Asia’s growing emphasis on its green transition has generally been an under-appreciated agenda item. Following the latest Association of Southeast Asian Nations (ASEAN) Foreign Ministers’ Meeting in Vientiane in July 2024, however, the meeting’s 36-page Joint Communique highlighted the importance of ‘green growth’ in advancing sustainable development. Indeed, nine out of ten ASEAN members have pledged to achieve carbon neutrality or net-zero emissions by mid...

The Interpreter: Describe “economic statecraft.”

18Sep

By Online DeskNo Comments

Asia, Market, World

The Interpreter: Describe “economic statecraft.”

What is “economic statecraft”? Economic statecraft refers to a state’s use of economic policy instruments to achieve foreign policy objectives. Australia uses various tools of economic statecraft – including development assistance, loans, work visas, investment incentives and travel restrictions – as foreign policy levers to achieve its aims. Another term that is frequently used interchangeably with economic statecraft is geoeconomics. Geoeconomics focuses on the broad strategic interplay between economics and geopolitics, encompassing a wide range of economic policies and global power dynamics. What does economic statecraft include? A useful way to think about economic statecraft is in terms of carrots and sticks or, more formally, incentives or inducem...

An economist claims that China’s economy is undergoing a “slow, painful, grinding adjustment.”

17Sep

By Online DeskNo Comments

Asia, China, Market

An economist claims that China’s economy is undergoing a “slow, painful, grinding adjustment.”

SINGAPORE — Following a slew of data released over the weekend from China that painted a fairly bleak outlook for its economy, analysts have tapered their expectations for the country’s full year GDP growth. “There hasn’t been much good news in this latest round of data, and this has been the pattern for the last few months,” said Eswar Prasad, professor of international trade and economics at Cornell University, on CNBC’s “Street Signs Asia” on Monday. “Both the long term issues related to property prices and so on, and the short term issues related to domestic demand in particular, especially private investment and household consumption have not been doing well at all,” Prasad said. He warned that Beijing’s economic outlook for the second half of the year is now “flas...

16Sep

By Online DeskNo Comments

Asia, Market

Financial Conditions in Emerging East Asia Improve with Moderate Inflation

MANILA, PHILIPPINES (16 September 2024) — Emerging East Asia’s financial conditions have improved, leading to declining bond yields amid moderating inflation and expected interest rate cuts, according to a new report by the Asian Development Bank (ADB). Emerging East Asia’s financial markets rebounded starting in July, when the United States (US) Federal Reserve hinted at a policy rate cut in September, according to the latest edition of Asia Bond Monitor, released today. Emerging East Asia’s currencies appreciated against the US dollar, and risk premiums narrowed. Meanwhile, regional equity markets gained except for in the People’s Republic of China (PRC) and Hong Kong, China, where weak economic performance weighed on equity performance. Emerging East Asia’s equity market record...

13Sep

By Online DeskNo Comments

China, Market

In September, China’s consumer prices increased more slowly.

C hina's consumer inflation rate slowed in September, official data showed Sunday, in a sign that demand remains fragile in the world's number two economy. The slowdown comes as authorities have been seeking to boost domestic activity and shore up China's ailing property sector, with officials on Saturday announcing plans for a significant fiscal stimulus package. The consumer price index (CPI), a key measure of inflation, rose 0.4 percent year-on-year in September, down from the 0.6 percent recorded in August, the National Bureau of Statistics (NBS) said. The figure came in below the 0.6 percent forecast in a Bloomberg survey of economists. August's figure, the highest level since February, had raised hopes that consumer confidence may be picking up. While many major Western economies ha...

12Sep

By Online DeskNo Comments

China, Market, USA

Domestic macro forces have a major role in driving trade balances between the US and China.

China’s widening trade surplus and the growing US trade deficit since the pandemic have renewed concerns about global imbalances and fueled an intense debate on their causes and consequences. There are increasing worries that China’s external surpluses result from industrial policy measures designed to stimulate exports and support economic growth amid weak domestic demand. Some worry that the resulting overcapacity could lead to a “China shock 2.0”—a surge of exports that would displace workers and hurt industrial activity elsewhere. This trade and industrial policy view of external balances is incomplete at best and should be replaced with a macro view. External balances are ultimately determined by macroeconomic fundamentals, while the link to trade and industrial policy i...

Expert: China has the funds to handle the real estate crisis without affecting the rest of the world.

12Sep

By Online DeskNo Comments

Asia, China, Market, World

Expert: China has the funds to handle the real estate crisis without affecting the rest of the world.

China’s property market remains the biggest downside risk to its economic growth target this year, with policymakers seemingly not in a hurry to make significant changes because its impact is mostly confined to the world’s second-largest economy, according to the chief economist for a global ratings agency. “China has the savings to deal with this. It’s not really spilling over too much to the rest of the world,” said Paul Gruenwald, global chief economist at S&P Global Ratings. “So they’re not going to be forced into dealing with the property excesses by any external or market pressure. They can do it at their own time, but we are not at the bottom yet.” In May, China unveiled wide-ranging measures to stabilise its property sector, which has been in contraction sin...

Chip shortage hits Huawei’s Mate70 manufacturing

11Sep

By Michael SmithNo Comments

China, Market

Chip shortage hits Huawei’s Mate70 manufacturing

Huawei Technologies, based in Shenzhen, is facing challenges in securing enough high-end chips for its upcoming Mate70 smartphone. This struggle is a direct result of the ongoing the trade war against China which includes thechip war also. Both Huawei and its partner, Semiconductor Manufacturing International Corp (SMIC), are under US sanctions. They aimed to produce 2.5 million chips for the Mate70's September launch but fell short due to limited manufacturing capacity and productivity issues. According to The Information, the primary reason for this shortfall is the persistent impact of a four-year-old US ban on supplying chip manufacturing tools to Huawei and SMIC. Initially, it was expected that Huawei would launch the Mate70 in China on September 10, a day after Apple's ...

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