JACKSON HOLE, Wyoming: Donald Trump once accused the Federal Reserve of not having a "feel" for the market and compared Federal Reserve Chair Jerome Powell to a golfer who can't putt, but on Friday (Aug 23) it was the US president that drove markets into the rough.Investors had anxiously awaited Powell's speech on Friday, but his continued pledge to "act as appropriate" to sustain the US economic expansion generated only tepid financial market reaction.Instead, it was Trump who threw markets for a loop, sending the Dow down more than 600 points after he said he was ordering Americans to look for alternatives to doing business in China. After US stock markets closed, Trump responded to new Chinese tariffs on US imports with another increase in US tariffs on Chinese goods.Powell has been under the intense glare of markets for months, accused of a few communications missteps as the Fed shifted from raising rates last year, to pausing and, last month, to cutting … [Read more...] about Fed’s Powell vs. Trump: Who’s got a ‘feel’ for markets now?
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LONDON: European stock markets rose on Monday (Jun 10), building on strong pre-weekend gains, after US President Donald Trump dropped threatened tariffs against Mexico and weak US jobs data fanned expectations the Federal Reserve will cut interest rates next month.In foreign exchange, the dollar recovered against major rivals after dipping on Friday - and Mexico's peso rallied more than two percent against the US unit.Separately, the pound was knocked by official data showing UK gross domestic product contracted 0.4 per cent in April on a slump in manufacturing amid Brexit uncertainty."President Donald Trump's announcement that he is suspending the five-percent tariff on Mexico which was scheduled for today is prompting a recovery in equity markets," said VTB Capital economist Neil MacKinnon."From an economic point of view, an increase in tariffs is like a tax increase ... Higher tariffs negatively affect world trade and global GDP growth," he explained in a client note.Observers … [Read more...] about European stocks buoyed by US trade, rate hopes
Last week, regional markets saw some reprieve from last month's slide, starting this month on hopes that the United States Federal Reserve would subscribe to rate cuts. With that in mind, investor sentiment over the Fed's possible moves is likely to remain a central theme driving markets this week, especially with the relatively weak US job data reading released last Friday. Charles Schwab Singapore managing director Greg Baker noted that the weak job data reading "comes on the back of last week's gross domestic product figures, when US economic growth was revised down, albeit by less than expected". As a result, market observers are now expecting the Fed to lower interest rates twice by late January next year, in order to ease worries of a global growth slowdown. "However, we believe that a rate cut following next week's Federal Open Market Committee meeting is unlikely, and economic data would have to deteriorate much more for a rate cut to come to pass near-term," Mr Baker … [Read more...] about Fed rates, trade tensions will drive market sentiment
The blacklisting of Huawei from U.S. trade has sparked a global debate on international trade regulations and the future of technology. Following allegations of espionage, the U.S. Department of Commerce ordered all American corporations to stop trade with the Chinese tech giant.Immediate effectsChipmakers Intel, Qualcomm and Broadcom had subsequently terminated trade with Huawei. The second largest smartphone manufacturer has enough stock to ensure smooth business for at least another three months. To give time for switching to suitable alternatives, the American government had issued a temporary 90-day license. Companies could smoothly transition and minimise losses from the crippled business.Huawei claims to have the ability to make their own chips without the American firms' help. However, this does not mean that Huawei can escape the removal of stock Android and Windows from their phones and laptops, respectively.Google has decided to use the trade window and work with Huawei to … [Read more...] about Huawei ban explained: Everything you need to know in five points
Low-rise houses such as this model at Mavista Prestige Village Krungthep Kreetha in Bangkok become popular as developers seek to meet real demand in a tough market. (Photo supplied by CBRE) The Bangkok condominium market has slowed down due to the accumulation of unsold stock and the tightening of mortgage lending regulations. This has caused buyers to be more careful, resulting in less demand from speculators and more emphasis on real demand.The trend explains why developers are shifting their overall development portfolio to the low-rise housing market where demand for single-detached houses and townhouses is driven entirely by Thais end-users and owner-occupiers. Homebuyers have specific needs in terms of location, size, design and functionality. They also have a fixed budget. As such, developers need to focus on these needs and deliver the right product in the right place at a price people can afford. Developers are capitalising on new popular locations such as the … [Read more...] about Tough conditions bring change to housing market