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Uncertainty over US-China trade deal between Donald Trump and Xi Jinping at G20 fuels global recession fears

Almost a year into the US-China trade war, Billy Wang, who runs a trading business in Shanghai, has grown increasingly resigned that the end of the dispute is nowhere in sight and will continue to chip away at his earnings.The businessman, who supplies electronics parts like flash integrated circuits to exporters, believes it will be at least another six months before any deal will be struck between the world’s two largest economies.“Some of our clients’ products are headed for the US, so for… Source link

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Money 

Chinese cash fuels vast luxury car laundering scheme in Canada

Report finds explosion in Canadian grey market worth US$410 million as fake buyers help China’s wealthy dodge sales taxesChinese wealth and demand for luxury cars is fuelling a vast money laundering and tax avoidance scheme in Canada, involving thousands of fake local buyers of vehicles that are actually destined for China.According to a report for the British Columbia provincial government by former Royal Canadian Mounted Police officer Peter German, the “huge” and illicit grey market selling… Source link

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Global 

How the new economy of ideas widens social inequality and fuels populist movements around the world

Ideas can be embodied in human capital in ways that augment a person’s productivity. They can also be embodied in material capital, such as physical assets to boost productivity. But increasingly the most valuable forms of capital are intangibles ones that are not embodied in man, machine, or structures – they are disembodied. Successful economies and companies are now increasingly rich in intangible capital. The intangible capital-rich economy is driven by ideas. Paul Romer, this year’s Nobel laureate in economics, made ideas the central element of his theory of economic…

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Government support fuels Shanghai stock surge; top forecaster believes year’s biggest bounce underway

China’s Shanghai and Shenzhen stock exchanges pledged more measures to bolster the world’s worst-performing equity market, echoing the support from senior officials and financial regulators to defuse the share-pledge risk and aid the private sector. The Shanghai bourse will explore the unveiling of new funds to bail out companies that pledge their shares as collateral for loans, and the smaller Shenzhen exchange said it will closely work with local governments and financial institutions to help the companies, according to two separate statements put out on the exchanges’ websites on Sunday.…

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Global 

McDonald’s, Starbucks could take a hit in China as trade war fuels anti-US sentiment

A growing sense of anti-US sentiment among Chinese consumers, fuelled by the escalating trade war, threatens to harm American fast-food brands, which have already seen their sales slowing, say analysts. China is a prime market for US empires like Starbucks, KFC and McDonald’s, while Burger King recently announced plans to expand its presence there. “There is a huge risk in general for American brands, but especially for iconic ones like Starbucks,” said Shaun Rein, managing director at China Market Research Group. “With increased competition, combined with nationalism, and the trade…

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Global 

Bitcoin’s bear market fuels allure of derivatives exchanges in Hong Kong for traders to hedge bets

Once an asset class coveted for its volatility, the slump in the value of bitcoin – which has hovered below US$9,000 since May 11 this year – has cast a shadow over the entire cryptocurrency market which is not only proving hard to shift, but is getting bigger. However, its rangebound movement is also increasingly fuelling the appeal of crypto-futures and -derivative trading platforms, as traders look for ways to leverage up their position to multiply returns. In Hong Kong, the increasing number of crypto-futures exchanges operating in a city…

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