With the US government shutdown still an unresolved affair, President Donald Trump canceled his appearance at the World Economic Forum’s annual meeting. So did French President Emmanuel Macron, because of the continuing political issue with the Gilets Jaunes. Ahead of an interesting 2019, Chinese President Xi Jinping is also staying at home, in contrast to the big speeches he made in 2017 and 2018. However, this year’s Davos summit is more important than at any time in the past three decades because of its theme (Fourth Industrial Revolution) and the increased turbulence in the world and mounting risks (the WEF just published its risks report, and the title of the press release states the obvious: “Weakened International Cooperation Damaging Collective Will to Tackle Global Risks”). The dailyReport Must-reads from across Asia - directly to your inbox Much remains to be done in harmonizing the positions on the broad lines of a new social contract that would … [Read more...] about Why Davos 2019 is key despite Big Guys missing
Why chinese economy is slowing down
The slowdown in Chinese growth has become the latest looming cloud over the global economy, but at the World Economic Forum in Davos, the advice from Beijing was not to worry. "China is slowing down but it's not going to be a disaster," said Fang Xinghai, vice-chairman of China's Securities Regulatory Commission, a key government watchdog. Fang's affirmation of the Chinese economy, and the deep worries of outsiders, came just days after the government reported that China grew at its slowest pace in almost three decades in 2018. At 6.6 percent growth, the state of the Chinese economy became a world concern, a sentiment not helped by the festering trade war with the US that has destabilised world markets. Chinese Premier Li Keqiang vowed the government would not let the economy "fall off a cliff", using words that hinted that a crisis may not be far off. But China is simply different, said Fang on a Davos panel that was supposed to survey the global economy, but got bogged down on … [Read more...] about At Davos, China slowdown is ‘no disaster’
caption A worker deflates a Chicago Bears inflatable mascot prior to the NFL football game between the Chicago Bears and the Cincinnati Bengals in Chicago, Illinois, September 8, 2013. source Reuters Inflation indicators that were flashing red at the beginning of the year have faded away. At the same time, central banks around the world have continued to tighten their policy, fearful that the global economy will heat up. This could be a deflationary trap. What if the entire world of money is preparing for the wrong disaster – which would be a disaster in and of itself? Since the financial crisis Wall Street, central bank heads, economists and policymakers have been waiting for the return of inflation. At the beginning of this year they thought they had found it. It came, so they thought, in the form of a weak dollar, wage growth, economic stability in China, and steadily rising interest rates. So here … [Read more...] about What if Wall Street is waiting for the wrong disaster?
LONDON - Trade and investment restrictions are proliferating around the world, driven by a combination of security concerns and protectionist pressures. In each instance, policymakers can usually cite a justification of why trade and investment restrictions are necessary. But taken together, a thickening web of restrictions on cross-border transactions is imposing a growing burden on business as well as complicating supply chains. The United States and China have threatened to hit each other with tariffs covering up to $300 billion of bilateral trade in a dispute over intellectual property and technology transfers. The United States has already imposed anti-dumping and countervailing duties on imports of steel, aluminium and solar panels from China, citing concerns about unfair trade. China has responded with its own anti-dumping duties on imported sorghum from the United States and is investigating other products. US officials have raised security concerns about telecommunications … [Read more...] about News World economy at risk from trade, investment restrictions: opinion
source Reuters If the US going to have a trade war with China, we should understand the state of its economy. Looking at the data, the country’s economy isn’t as strong as its leaders make it sound. It’s still very dependent on exports. That said, authoritarian governments don’t have to worry about elections. That means they have a higher threshold for economic pain. The trade war is here, so it’s time to take a look at the Chinese economy to know what we’re dealing with here. On Monday, China retaliated against the Trump administration’s tariffs on steel and aluminum by slapping tariffs on 128 imports from the United States. Now, the US already had a bunch of duties on Chinese steel and other commodities going back to the Obama administration, so the new tariffs are likely more a preemptive move to set the negotiating table before the Trump administration … [Read more...] about The US is set for a trade war with China’s economy — you should know what it’s up against