Global 

US stocks tumble on fears of looming recession

Wall Street stumbled on Wednesday as investors fled equities for safe-haven assets, seeking shelter amid gathering signs that a recession could be on the horizon.All three major US indices were sharply lower as short- and long-dated Treasury yields inverted for the first time in 12 years, a potential signal of imminent recession.Elsewhere, ominous indicators suggested a faltering global economy, hobbled by the intensifying US-China trade war, Brexit jitters and geopolitical concerns. Germany… Source link

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Home 

The looming global trade crisis created by Donald Trump’s administration that you may not have heard about

Meetings in Japan over the past month of G20 trade ministers, finance ministers and the G20 leaders themselves have come and gone with much theatre but remarkably little substance. Certainly not enough to distract Europeans from Brexit and European Union elections, or the whole world from the tear gas on Hong Kong streets.The Donald Trump-Xi Jinping side meeting to keep the US-China trade conflict from boiling over allowed world markets a perhaps-temporary sigh of relief. Trump’s banter with… Source link

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Global 

Front-loading not an option for US firms looking to avoid Trump’s looming tariffs on Chinese imports

Towards the end of 2018, before an American tariff increase on US$200 billion of Chinese goods that was expected to take place on January 1, “floating finishing factories” started popping up off the US West Coast, on which Chinese workers would frantically assemble goods on container ships at sea to get them through customs in time to beat the increased tariffs.As it turned out, the tariff increase was postponed after a meeting between US President Donald Trump and his Chinese counterpart Xi… Source link

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China 

China asks state media to pick battles carefully with long US trade war looming, sources say

China hopes to appeal to potentially sympathetic voices on the other side of the trade war by asking its government officials and state media outlets to avoid being overly and often unnecessarily critical of the United States and its key players, even as it prepares for a protracted trade and technology confrontation with Washington, according to sources who were briefed on the latest government instructions.Internal briefings held this week reflected the Chinese leadership’s line of thinking… Source link

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Fitch flags looming casino ‘glut’ in Asia-Pacific, amid arms race catering for wealthy Chinese gamblers

Casino operators in Asia-Pacific banking on Chinese gamblers may find themselves in trouble in the years to come, amid potential oversaturation of the premium market, according to a recent report by Fitch Ratings.The ratings agency cited the huge investments in gaming operations in Asia-Pacific that cater to wealthy Chinese consumers combined with the economic slowdown on the mainland, which they say has hurt Chinese demand for gaming activities.“Billions of dollars were invested in the last… Source link

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Completion of new flats in Hong Kong plummets to four-year low as looming vacancy tax spooks developers

The number of new flats built to completion in Hong Kong plunged by 88 per cent to just 1,000 in the first three months of the year as developers fearful of the government’s planned vacancy tax held back.It is the lowest number since the first quarter of 2015, and represents an enormous fall from 8,300 in the October to December period, according to figures released by the Transport and Housing Bureau on Friday.“The vacancy tax may be one of the reasons for the fall in completion of new flats… Source…

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Prepare for a looming buyers’ market in global assets, says Chinese firm seeking to boost foreign holdings

The financial services arm of China Everbright Group, one of the first state-owned conglomerates established in Hong Kong in the early 1980s, is planning to ­enlarge its global portfolio and transform itself into an international private equity and asset management firm.“This year, we will continue to increase the percentage of foreign asset allocation in order to maintain steady growth. The strategy includes increasing investments through our funds and boosting our US dollar denominated funds,… Source link

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What deleveraging? China sets sights on shoring up economy rather than hacking away at looming pile of debt

For almost two years, the question has lingered over China’s market-roiling crackdown on financial leverage: How much pain can the country’s policy makers stomach?Evidence is mounting that their limit has been reached. From bank loans to trust-product issuance to margin-trading accounts at stock brokerages, leverage in China is rising nearly everywhere you look. While seasonal effects explain some of the gains, analysts say the trend has staying power as authorities shift their focus from… Source link

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Trump signs order prioritizing artificial intelligence research amid looming China ambitions

President Donald Trump signed an executive order Monday directing the U.S. government to prioritize artificial intelligence in its research and development spending, the White House said. The order, which comes amid concerns about China’s ambitions to dominate the sector and the likelihood of disruption for workers as the technology automates millions of jobs, doesn’t outline specific funding goals, but says it aims to ensure that AI develops in a manner that reflects U.S. values and to push training for the future workforce. Is China really snapping at the heels of…

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A recession is looming, easy money is ending and the yuan is falling – get set for 2019, the year of living dangerously

We are fast approaching that critical time of the year when investors must place their bets for 2019. It will be no easy task as investors face a battery of negative forces, adverse headwinds and a sense that the world is sinking into complete confusion. As if investors have not already been through enough hell and high water in the past decade, there is a prevailing sense that things are about to go pear-shaped again. As markets become more focused on capital protection and risk aversion, investors will need to…

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