World

12Jul By Online DeskNo Comments
Market, USA, World

US inflation cools – plus other economics stories to read this week

1. US inflation cools, raising hopes Price increases in the US slowed significantly in June, raising hopes that the world's largest economy is moving past the high inflation triggered by the COVID-19 pandemic.The Labor Department's Bureau of Statistics reported a 3% rise in prices over the year to June, the slowest rate in a year, driven by lower petrol prices and moderating rents, Reuters reports. However, food prices and shelter costs both rose 0.2% in June, while grocery prices are up 1.1% and housing costs by 5.2% compared to the month before. This marks the third consecutive month of declining inflation, lessening financial pressures on households and leading analysts to predict the Federal Reserve could lower interest rates as early as September. "Barring rogue...
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<strong>Potential tariffs on Chinese EVs spark retaliation concerns and trade tensions in Canada</strong>
9Jul mmBy Joe RodriguezNo Comments
Asia, China, World

Potential tariffs on Chinese EVs spark retaliation concerns and trade tensions in Canada

Canada has begun evaluating the impact of China’s alleged unfair trade practices on its electric vehicle (EV) market, leaving China unhappy and perturbed. This decision follows actions by the US and the European Commission, Canada’s international partners, which have recently responded to unfair competition in their EV industries. The purpose of the consultation, which will continue until August 1, is to assess the risk of Canada’s EV market being inundated with cheaper Chinese plug-ins. Experts have not ruled out the possibility of retaliation from China. If Canada imposes tariffs on Chinese electric vehicles, two trade experts predict that the world’s second-largest economy will forcefully retaliate. Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security, s...
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8Jul By Online DeskNo Comments
Asia, China, Market, World

In charts: the changing picture of China’s outbound study

Disruption to the upward trend From 2010 to 2019 the number of outbound Chinese students grew at an average annual rate of 9.5%, making the country the biggest source of international students globally. However, this rapid growth was disrupted by the pandemic that emerged in 2020. The virus (and China’s subsequent restrictive policy) caused profound damage to the country’s student mobility. The number of outbound students plummeted by 36% year on year in 2020, according to a report by the Centre for China and Globalisation (CCG), a think‑tank.  Although the number of outbound students has been climbing after the initial hit from the pandemic, it remains well below the potential trend that would have manifested had the pandemic not occurred. In the meantime, the picture of...
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30Jun By Online DeskNo Comments
Asia, China, Market, Singapore, USA, World

Review of climate-related financial disclosure regimes around the world

1. Australia On 27 March 2024, the Australian Government released the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (Cth) (Bill) outlining the implementation of the country’s proposed mandatory CRFD regime. The Bill contained only minor amendments to the original exposure draft developed by the Treasury at the start of 2023. The Bill is currently before Parliament, where it has passed the Lower House without amendment and is expected to pass the Upper House by the end of June or early July 2024. It is proposed that the reporting requirements will be phased in over the next few years across three groups of corporations. These groups will be determined based on whether companies meet at least two of the three criteria pertaining to re...
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30Jun By Online DeskNo Comments
Asia, Market, World

Global economic outlook: Charting different courses

The pandemic was a common, global shock for all economies that led to very synchronized outcomes. Nearly all economies experienced deep recessions and subsequent strong recoveries because of pent-up demand and policy stimulus. Associated with that, nearly all economies had unexpected surges in inflation, which resulted in aggressive rate hiking cycles. As the world shifts further away from the pandemic shock, there starts to be a desynchronization and more variation in economic growth, inflation and monetary policy, said Rob Subbaraman, Nomura’s Head of Global Macro Research. There are many megatrends that are unfolding, such as artificial intelligence, geopolitical rifts, climate change, demographic change, elections in major economies and high and still-rising public debt, so it is i...
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World economy’s “biggest risk” is geopolitical upheaval, according to ICCB
30Jun By Online DeskNo Comments
World

World economy’s “biggest risk” is geopolitical upheaval, according to ICCB

The International Chamber of Commerce Bangladesh (ICCB) identified geopolitical tensions as the biggest risk to the global economy and recommended structural reforms to address those as Bangladesh looks to achieve middle and upper-middle-income status, according to a press release. ICCB President Mahbubur Rahman, presenting the Executive Board Report at the 29th Annual Council in Dhaka on Saturday, said the Russia-Ukraine war has caused an economic crisis in Bangladesh due to rising global commodity prices. The country's foreign currency reserves are depleting rapidly due to higher import bills. Middle East tensions are further straining the economy, he added. While Bangladesh's economy made a strong recovery from the Covid-19 pandemic, the ICCB president noted that the post-pand...
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China’s economy has grown to be worth US$2 trillion, but its industry is still in its infancy.
30Jun By Online DeskNo Comments
World

China’s economy has grown to be worth US$2 trillion, but its industry is still in its infancy.

The final consumption value of products and services designed with China’s growing older population in mind – a sector that is not yet “fully mature” according to a white paper released this week – has reached about 14.4 trillion yuan (US$2 trillion), an indication of the already ballooning industry’s prospects for further expansion. Low-cost travel, e-commerce, live streaming by older influencers and sorghum wine – a high alcohol drink – are among that population’s top buys according to the white paper from Shanghai-based China Insights Consultancy and Chinese online education service QuantaSing Group. “With rapid socio-economic development, increases in life expectancy, and a decline in fertility rates, China is gradually transitioning into an ‘aged society,’” said the p...
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Made in China, for China: Can nationalism help China’s flagging economy?
30Jun By Online DeskNo Comments
World

Made in China, for China: Can nationalism help China’s flagging economy?

With China’s growth target of 5 per cent this year deemed ambitious, the programme Insight looks at the factors behind its economic challenges and whether relying on innovation and domestic spending can steer its economy towards recovery. BEIJING: Living in Beijing, where “allergens are flying around”, 26-year-old Yao Yao is very particular about her cosmetics — they must protect her skin. She spends about 500 yuan (S$93) a month on make-up and has quite a collection. She has, however, stopped looking for imported brands. “Maybe in the past, people used big brands … to gain face. But the thinking of young people now is that if we use domestic products, we’ll truly ‘have face,’” she said. Her words speak to a growing trend among China’s youth: Imported goods are out, Made-in-Ch...
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Sara Hsu on Xi Jinping’s Economic Policy in China
30Jun By Online DeskNo Comments
World

Sara Hsu on Xi Jinping’s Economic Policy in China

From July 15-18, the 20th Central Committee of the Chinese Communist Party – the top governing body of China’s ruling party – will convene for its much-anticipated “third plenum.” Since the beginning of the reform and opening era, each Central Committee’s third plenum has long set the policy direction for China’s economy. However, this iteration will happen far behind the usual schedule. Traditionally, the third plenum convenes a year after the CCP’s National Party Congress, last held in October 2022. Accordingly, the third plenum was expected in October or November of 2023. Instead, it was delayed until July 2024.  The nine-month gap between the expected timing and the actual convening of the plenum sparked much speculation about debate and disagreement regarding economic policy ...
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28Jun By Online DeskNo Comments
Asia, China, Market, World

Plenum priorities that could reshape China’s economic future

The Chinese Communist Party's (CPC) third plenary session in July 2024 is an opportunity to enact major structural reforms. The CPC should prioritise reforms to untie household consumption from housing, add a redistributive role to state fiscal functions and ensure the land-based model of finance for urban development yields to a central transfers and local taxes-backed one. The CPC must shrink the housing sector’s footprint on growth and consumption, shift from indirect to direct taxes and plug the structural revenue deficits that have pushed local governments to raise cash from opaque, off-budget mechanisms. The third plenary session of the Chinese Communist Party’s (CPC) 20th Central Committee in July 2024 comes at a critical juncture for an economy beset by profound challenges. ...
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