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London’s office sector at a discount thanks to Brexit woes, weakening sterling

Hong Kong investors looking to leverage opportunities in London during a period of currency weakness might want to take a closer look at the office market, where solid occupier rates indicate solid returns even as political uncertainty lingers, according to experts.International investors appear to be in a wait-and-see mode, having taken to the sidelines, as they gauge the political outlook three years after the Brexit referendum, according to consultancy Knight Frank.“Future transaction levels… Source link

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In the trade war with the US, China should fight smart – and weakening the yuan or selling its US Treasury notes wouldn’t help

Will China weaponise or weaken its currency as a retaliatory measure amid rising trade tensions with the United States? And will Beijing offload a trillion dollars in US Treasury holdings? These are some of the most frequently asked questions of late, given that trade talks seem to be deadlocked. Both the US and China have seemingly taken a tougher stance and are now preparing for a prolonged dispute. Certainly, both options are available and probably feasible for the Chinese government, since… Source link

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As if a weakening economy was not enough, election uncertainty piles further pressure on Philippine peso

After falling for six straight years, the Philippine peso is now facing an additional threat: a midterm election that may compound concerns about its economy. As the nation gears up for polls due in May, political uncertainties may pose an added source of pressure to those stemming from its long-running deficits. With risk appetite likely to remain fragile because of fears of a global slowdown, traders may drive the peso back below the 13-year low set in October. “The overarching downside risks will probably emanate from risk-off sentiment refocusing worries…

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China 

China economy endures bad start to 2019 as private data highlights weakening manufacturing sector

China’s slim hopes of an economic upturn in 2019 suffered a blow on the first working day of the new year as a privately complied economic gauge showed signs of weakening manufacturing activities. The Caixin Purchasing Managers’ Index (PMI), which tracks the activities of small and medium-sized enterprises, dipped below 50.0 for the first time since May 2017 as December’s reading fell 0.5 points to 49.7. A drop below 50.0 indicates contraction compared to expansion. It follows Monday’s release of the official PMI complied by China’s National Bureau of Statistics,…

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Investment 

Trade war, weakening yuan pose challenges for Harbour City mall operator ahead after stellar first half

The owner of the city’s biggest shopping mall expects retail sales to remain stable after a strong recovery in the first half this year even as dark clouds loom in the form of the US-China trade war and a weakening yuan. “We don’t see much impact yet, but we have to be very vigilant,” said Stephen Ng Tin-hoi, chairman and managing director of Wharf Real Estate Investment, which owns Harbour City and Times Square. “Generally speaking, we are not pessimistic.” Ng said some of his tenants told him that retail…

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Investment 

China’s No 2 chip maker fears weakening yuan, not trade war after posting record first-half revenue

Hua Hong Semiconductor, China’s No 2 contract chip maker, which reported record revenues for the first half on rising demand from the United States, is more worried by a weakening yuan rather than the trade war unfolding in the background. “So far we have not heard concerns on the trade war from our customers,” said Wang Yu, president and executive director of the company, during a conference call on Wednesday afternoon. “But we are cautious about it and are closely monitoring the situation to see if there will be any…

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Investment 

Chinese airlines climb as central bank steps in to stabilise weakening yuan

Chinese carriers, led by Juneyao Airlines and China Southern Airlines, jumped on Monday after the central bank said it is taking measures to stem a loss in the yuan, spurring optimism that a stronger local currency will reduce their foreign debt burden. In Shanghai, Juneyao Airlines rose 3.1 per cent to 13.25 yuan, China Southern Airlines added 4.5 per cent to 6.97 yuan and Air China gained 3.3 per cent to 7.62 yuan. The benchmark Shanghai Composite Index rose 1.9 per cent as the strengthening yuan also bolster confidence among…

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