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China’s economic rebound is helping Europe, but not as much as Italy, France, Germany and Brexit are hurting it

Last week, the International Monetary Fund announced that it had slashed its growth forecast for the euro-zone economy, which it now expects will expand by just 1.3 per cent this year, down 0.6 percentage points compared with the IMF’s last full forecast in October 2018. The downgrade was mainly attributable to the even sharper downward revision of growth in Germany, Europe’s largest economy, which is projected to expand by a meagre 0.8 per cent this year, a drop of more than 1 percentage… Source link

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Why Brexit has been but a blip in financial markets

European Union leaders and the UK on Thursday agreed to delay Brexit until October 31, with a review in June, thus avoiding a situation where Britain crashed out of the bloc on April 12. International investors, particularly those who trade Britain’s volatile currency, cannot say they have not been warned of the damage that a no-deal Brexit would wreak on the UK and European economies.The latest warning was delivered by the International Monetary Fund on Tuesday when it published a special… Source link

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Global 

China economy would be the big winner from a no-deal Brexit, UN study finds

China would be the big winner, should the United Kingdom leave the European Union without a deal, according to a new study by the United Nations Conference on Trade and Development.A no-deal Brexit would boost Chinese exports to the UK by US$10 billion, or 17 per cent of its current exports to the country. US exports would rise by US$5.34 billion while Japan would gain US$4.9 billion, the study found.The study, led by researchers Alessandro Nicita, Ksenia Koloskova and Mesut Saygili, was… Source link

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Trade war, Brexit and slowdowns in China and Germany are likely to curb the stock market euphoria

World stock markets have had the bit between their teeth since the turn of year, but are investors getting too far ahead of themselves and heading into a new day of reckoning? Too much is already factored into the US and China clinching a trade deal soon and it might be a classic case of “buy the rumour and sell the fact” for many investors questioning the logic of markets heading back towards last year’s all-time highs. Could the stock market’s euphoria soon be upended?There are too many other… Source…

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Through Brexit and signs of China’s slowdown, investors have kept their cool – but it can’t last

During the introductory statement for his last press conference in January, European Central Bank President Mario Draghi’s most picked-up sound bite was that “the risks surrounding the euro-area growth outlook have moved to the downside on account of the persistence of uncertainties”. Indeed, what he stated about the euro zone can be repeated for the world at large. The International Monetary Fund sang from the same hymn sheet when updating its World Economic Outlook in January, citing “high… Source link

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IPOs off to slow start globally in 2019 amid Brexit, US-China trade war uncertainties, says Dealogic

Companies have only raised US$5.4 billion globally so far in 2019, down by 78 per cent from the same period a year ago, marking the lowest year-to-date value in three years, global financial data provider Dealogic said on Tuesday.The number of deals also dropped to 87 during the period, down by 52 per cent year on year, according to Dealogic. All three regions – Asia-Pacific, the Americas and EMEA (Europe, the Middle East and Africa) – have reported significantly lower initial public offering… Source link

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Brexit apart, Spain’s political uncertainty is a microcosm of the euro zone’s deepening troubles

Political parties in Spain will enter campaign mode this week after Prime Minister Pedro Sánchez on Friday called for an early general election, the third such ballot in as many years. However, far from being an exception, the latest political uncertainty in the euro zone’s fourth-largest economy comes as there are mounting signs of political instability and stagnating growth in other large European economies like Germany, France and Italy. With the euro zone “celebrating” its 20th anniversary… Source link

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China 

Brexit deadline looms for Asia-bound ships as slow boats to China set sail from the UK

Dozens of cargo ships will set sail on Friday from the United Kingdom on journeys that will see them enter Asian ports after the United Kingdom has left the European Union. The status of these container ships is causing headaches among officials at the British Consulate General in Hong Kong, the South China Morning Post understands, ahead of the planned Brexit on March 29, with some journeys lasting as long as 48 days. The officials are concerned that ships could be “stranded at sea” in the case of a no…

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Global 

No-deal Brexit and US-China trade war deadlines loom, but new ECB top economist says: ‘don’t panic’

The global economy is hurtling towards two of the most potentially severe headwinds in a decade, but the incoming chief economist of the European Central Bank had a message in Hong Kong on Tuesday: don’t panic. March will see deadlines expire for the partial truce in the US-China trade war and for the United Kingdom to negotiate an orderly exit from the European Union, both of which have the potential to send shock waves through the global economy. Philip Lane, who was endorsed by European finance ministers on Monday to…

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Brexit: How influential is it on the UK property market?

[Sponsored Article] Brexit may be dominating headlines ahead of the UK’s historic exit from the EU on March 29, but overseas property investors have no reason to be worried. Whatever the outcome of the Brexit negotiations, their impact on residential markets will be negligible at worst, with a strong likelihood of being very favorable to international buyers. Foreign investors have largely been undeterred by the Brexit drama. According to figures from Jones Lang LaSalle (JLL), around half of all UK property acquisitions in 2018 were made by overseas investors, totaling…

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