Home 

Uncertainty hangs over Foxconn’s newest China factory as trade war and economic slowdown take a toll

When ground was broken in March 2017 for a new US$9 billion factory owned by a subsidiary of Foxconn Group, the event was witnessed by then Guangdong party secretary Hu Chunhua and Terry Gou Tai-ming, the Taiwanese billionaire who created Foxconn, the world’s largest assembler of Apple’s iPhones and tablets.The plant was hailed by local media as an example of Chinese efficiency in promoting investments that matter for the future and the country’s key role in the global value chain.The Southern… Source link

Read More
Home 

Stocks Blog: Markets feeling weight of US-China trade war, interest rate uncertainty

Good day, traders — US and Chinese trade negotiators made their first phone call since the high-stakes meeting between presidents Donald Trump and Xi Jinping last month in Japan, Bloomberg reports. That discussion was “constructive,” White House economic adviser Larry Kudlow said. The trade war continues to weigh on markets. Traders are also waiting for signals from Federal Reserve chairman Jerome Powell this week about the likelihood of rate cuts. And concerns linger on the mainland about… Source link

Read More
Home 

What truce? US-China trade war uncertainty still weighing on global growth, Morgan Stanley says as it cuts outlook

Morgan Stanley has cut its outlook for global growth, saying continued uncertainty over the US-China trade war was having a “more pronounced” effect on business confidence and outlook for economic expansion.In a research note dated Sunday, the investment bank said it had cut its expectations for global gross domestic growth by 20 basis points to 3 per cent for 2019 and to 3.2 per cent for 2020.The outlook cut came as US President Donald Trump and his Chinese counterpart, Xi Jinping, agreed to… Source link

Read More
Home 

Hong Kong cuts residential land supply with uncertainty around trade war, protests expected to weigh on prices

Hong Kong has cut by a third the supply of private residential housing from its land sale programme for the three months to September, on the day unrest in the special administrative region became a talking point between Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe at the G20 summit in Osaka.Two plots of land that can yield 1,350 apartments, a commercial/hotel site that can provide gross floor area of 863,000 sq ft and a mega commercial plot near the express rail terminal… Source link

Read More
Home 

Foxconn denies speculation about exiting mainland China amid uncertainty from trade war

Foxconn Technology Group, the world’s largest electronics contract manufacturer, has denied speculation that it planned to withdraw from the Chinese mainland, where the Taiwanese company has more than one million employees, as the trade row between the US and China escalates.“The rumours about Foxconn quitting mainland China is not true,” said the company, formally known as Hon Hai Precision Industry, in a post on its official WeChat account on Monday.The firm said operations at all of its… Source link

Read More
Home 

Rising uncertainty over trade war could weigh on bottom lines at Hong Kong’s banks, KPMG says

Rising interest rates helped boost Hong Kong banks as the city’s economy slowed last year, but heightened uncertainty from an escalating trade war between the United States and China could weigh on their performance in 2019, according to KPMG.Operating profit before impairments at the city’s licensed banks rose 15 per cent to HK$268 billion (US$34 billion) last year, from HK$234 billion in 2017, the accounting giant said. Total revenue at Hong Kong’s lenders increased 11.2 per cent to HK$445… Source link

Read More
China 

China’s banks remain reluctant to lend amid US trade war uncertainty, new data shows

Chinese banks lending was slightly higher in May from a month earlier, but the value remained below expectations as the impact of the trade war played on lenders’ minds, leading to speculation that the economy may need another, bigger jolt in the arm.The value of new yuan-denominated loans dropped to 1.18 trillion yuan (US$170.54 billion) in May, lower than the market expectation of 1.3 trillion yuan and only slightly higher than April’s reading of 1.02 trillion yuan, according to data released… Source link

Read More
Home 

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

Read More
Home 

China’s rust belt cities shrouded in uncertainty as exhausted natural resources shake China’s foundations

The northeast rust belt, once the pride and birthplace of China’s industrial development, is in its biggest economic slump as it struggles to shake off a deep-rooted planned economic mindset and dwindling resources, and a brain drain to regain competitiveness. This is the second article of a five-part series that examines the issues inhibiting reform and changes to revive growth.The tiny shroud shop on a dusty commercial street leading to the abandoned Shengli Coal Mine in Fushun in China’s… Source link

Read More
Home 

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

Read More