World

The United States’ COVID-19 recovery in relation to other countries
17Oct mmBy Walter ParezNo Comments
Market, World

The United States’ COVID-19 recovery in relation to other countries

The COVID-19 pandemic-era recession was unlike any other in U.S. history. Beginning in February 2020, the recession quickly reached depths not experienced in roughly a century before abating just as fast—lasting just two months according to the National Bureau of Economic Research. A combination of unprecedented fiscal support, rapid deployment of vaccines, and structural economic resilience all helped jumpstart the swift and enduring U.S. recovery, with the economic expansion now entering its fourth year. As the economy continues to grow, two important characteristics have emerged: (i) the U.S. avoided the deep economic scarring that impacted millions of American households in the last recovery; and (ii) the U.S. recovery has far outpaced most of its G10 peer countries. The prior...
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16Oct mmBy Walter ParezNo Comments
Asia, Market, World

Due to unfavorable global signals, shares may begin the day down.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,748.71 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,654.96 crore in the Indian equity market on 15 October 2024, provisional data showed. According to NSDL data, FPIs have sold shares worth over Rs 70303.50 crore (so far) in the secondary market during October 2024. This follows their purchase of shares worth Rs 46,552.40 crore in September 2024. Most Asian stocks declined on Wednesday, primarily due to a weak outlook from ASML, a leading chipmaker. Cooling optimism about Chinese stimulus measures also contributed to the market's downturn. Regional markets followed Wall Street's lead, where a drop in chipmaking stocks pulled U.S. benchmarks from record highs. At the close in NYSE...
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14Oct mmBy Joe RodriguezNo Comments
Asia, China, Market, World

Goldman Sachs upgraded their predictions for China’s economic expansion.

Analysts expect China's GDP to grow by 4.9% in 2024 Goldman Sachs has improved its forecasts for China’s economic growth in 2024 and 2025, Bloomberg  The forecast has been improved on the back of Beijing’s unveiling of a number of stimulus measures, including recent plans to increase government spending. Goldman Sachs expects China’s GDP to grow by 4.9% this year, up from 4.7% previously forecast. According to a new research note, the investment bank also raised its forecast for Chinese economic growth in 2025 to 4.7% (previously 4.3%). On October 12, China promised to “significantly increase” debt issuance to revive its economy, Reuters writes, but left investors guessing about the total amount of the stimulus package. Finance Minister Lan Foan said: Beijing will help...
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13Oct mmBy Brian ThompsonNo Comments
Asia, China, Market, World

India starts to reconcile its economic ambitions with security fears about China.

Indian Prime Minister Narendra Modi's government tightened scrutiny of foreign direct investment amid security concerns during the COVID-19 pandemic, largely curtailing China's economic influence. But as India aspires to become the world's third-largest economy by 2029 and a developed nation by 2047, it must grapple with balancing economic ambitions with security concerns and is beginning to cautiously accept Chinese investments in sectors such as electronics manufacturing to boost local production capabilities. Since first assuming office in 2014, Prime Minister Narendra Modi’s government has aimed to increase the share of manufacturing in India’s GDP. In 2014, the government launched the Make-in-India campaign, which pushed for more manufacturing and invited foreign direct ...
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China’s most recent threat, large ships, awakens the US
12Oct mmBy Joe RodriguezNo Comments
China, World

China’s most recent threat, large ships, awakens the US

In a belated recognition that China has cornered the construction of ocean-going commercial vessels, those ships crucial to secure sea-borne supply chains, the United States is this year turning to its Asian allies to help it catch up in a hurry and thwart another geopolitical threat. In June, South Korean shipbuilder Hanwha Ocean bought the loss-making Philly Shipyard in Philadelphia for US$100 million, a deal approved by Washington in September. This may not sound like much, but it allows a foreign shipbuilder into an industry that has been highly protected to its considerable detriment. Under America’s century-old Jones Act, vessels transporting goods between US ports must be built, owned and crewed by Americans. China’s 13 shipyards (and growing) has more capacity...
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10Oct mmBy Walter ParezNo Comments
Asia, Market, World

According to the World Bank, implementing reforms is still essential for sustained economic recovery and poverty reduction.

Pakistan’s economy has continued to stabilize from the recent economic crisis, with growth recovering to 2.5 percent in the fiscal year ending June 2024, says the World Bank in its latest country economic update. Released today, the Pakistan Development Update: The Dynamics of Power Sector Distribution Reform, finds that following recession in FY23, economic activity strengthened in FY24 reflecting strong agricultural output, lower inflation, prudent macroeconomic measures, and reduced political uncertainty. But this level of growth is not sufficient to bring down poverty rates, which increased from 40.2 percent in FY23 to 40.5 percent in FY24. “Pakistan’s stabilizing economy is on a path of recovery. To sustain and strengthen that positive momentum, steady implementa...
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10Oct mmBy Joe RodriguezNo Comments
Asia, China, Market, World

China’s economy is predicted by the World Bank to slow down in 2025.

According to World Bank estimates, China’s GDP growth rate next year will decrease to 4.3% compared to the projected 4.8% in 2024. This is stated in the institution’s new economic forecast for the Asian region. China’s economic slowdown in 2025 is expected amid continued weakness in the real estate market, low consumer and investor confidence, as well as structural challenges such as an ageing population and global tensions, it said. Expectations for 2024 rose by 0.3% compared to the bank’s April forecast. As CNBC notes, this reflects Beijing’s recent introduction of a series of stimulus measures that boosted investor confidence and sparked a stock market rally that has since stalled. Economies in the rest of East Asia and the Pacific region will grow from 4.7% in ...
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10Oct mmBy Michael SmithNo Comments
Market, USA, World

The Need for Reform and Presidential Tariff Powers

Article I, Section 8 of the US Constitution grants Congress the power to “lay and collect Taxes, Duties, Imposts and Excises,” and to regulate commerce with foreign countries. From the founding of the republic through the early 1930s, Congress set tariff rates through legislative revisions to the US tariff schedule. Low tariffs were initially imposed to raise revenue for the federal government, but tariffs became a tool to protect domestic producers from foreign competition. Throughout this period, tariff rates fluctuated with the makeup of Congress, while the president was largely a bit player in setting international trade policy. This approach to US tariffs changed dramatically following the disastrous Trade Act of 1930, better known as the Smoot-Hawley Tariff Act after its sponsors...
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Following a vote, an EU executive is ready to impose duties on Chinese electric vehicles.
5Oct mmBy Walter ParezNo Comments
China, Market, World

Following a vote, an EU executive is ready to impose duties on Chinese electric vehicles.

The European Commission said on Friday it had received enough support in a vote of EU members to impose tariffs of up to 45% on imports of Chinese-made electric vehicles in the bloc's highest-profile trade case, risking retaliation from Beijing. France-based broadcaster Euronews cited diplomatic sources as saying that Poland voted in favor of the move, but Germany, the region's biggest economy and major car producer, opposed it.The European Commission, which oversees the bloc's trade policy, has proposed final duties for the next five years to counter what it sees as unfair Chinese subsidies after a year-long anti-subsidy investigation.In a vote on Friday, 10 EU members backed tariffs and five voted against, with 12 abstentions, EU sources said.It would have taken opposition from a qua...
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The European Union decides to levy taxes on electric cars made in China.
5Oct mmBy Joe RodriguezNo Comments
Asia, China, Market, World

The European Union decides to levy taxes on electric cars made in China.

The European Union on Friday voted to adopt definitive tariffs on China-made battery electric vehicles (BEVs). “Today, the European Commission’s proposal to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China has obtained the necessary support from EU Member States for the adoption of tariffs,” the EU said in a statement. The EU first announced that it would slap higher tariffs on Chinese electric vehicle imports in June, on the grounds that they benefited “heavily from unfair subsidies” and posed a “threat of economic injury” to electric vehicle producers in Europe. Duties were also disclosed for individual companies, depending on the extent of their cooperation with the probe. Provisional duties were put in place from early Jul...
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