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China’s slowing economy won’t push it into joining the global rate-cutting cycle. Here are three reasons why

A global easing cycle is on the way, and China is apparently a key reason behind the new global slowdown. There are many reasons to be bearish about China’s outlook, including the trade war, its debt pile and asset bubble concerns. However, it seems that few analysts believe China’s central bank will soon follow others in cutting its benchmark interest rates. So, why is there a big divergence between China’s monetary policy and the economic outlook?Some may argue that the People’s Bank of China… Source link

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Hong Kong’s trade show organisers hope the ‘city under siege’ image won’t damage visitor numbers this autumn, or next year

Trade event organisers in Hong Kong are assessing the economic impact from weeks of unresolved civil protests, amid concern the city’s brand as a meeting and event hub could be under threat.How much the protest movement has weighed on the local event management industry is hard to gauge, partly because of the diverse range of events scheduled in Hong Kong and question marks as to whether visitors will be discouraged from taking part in the coming months.Six events ranging from consumer… Source link

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Protests won’t solve Hong Kong’s economic problems, as the 1967 Newark riots show

It’s likely that few of the Hong Kong protesters have heard of the 1967 Newark riots. The college students, young folks and all those men and women of Hong Kong who have taken to the streets in the past few weeks should learn about this part of the history in America, whose political system they purportedly demand.The economic situation in Newark in 1967 was quite similar to Hong Kong’s today, and goals of the rioters were also quite similar. Amid the trend of relentless suburbanisation in the… Source link

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Sugar tax and other punitive measures won’t help Malaysians become healthier

The Malaysian government is justifiably concerned about obesity levels in the community but it is difficult to see how the implementation of a sugar tax in the country from July 1 will address this issue. In the absence of an effective public health education framework, the obese are likely to continue to seek out untaxed sweet drinks and desserts to satiate their needs.A tax of 40 sen (10 US cents) per litre will be implemented on all packaged drinks that contain sugar and other sweeteners in… Source link

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Fed easing can give equity markets a boost, but it won’t keep them aloft

US equity markets are on track to post very strong gains over the month of June, a steep contrast to their performance in May, which was the worst since 2010. The swing can largely be attributed to the “Powell Put”.This is a reference to both the chair of the US Federal Reserve, Jerome Powell, and a position used in the options market, the put, which gives the holder of that option the right to sell should the underlying price of the asset fall too far. In the context of Powell,…

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Huawei promises consumers in the Philippines a full refund if Gmail and Facebook won’t work on its devices

Huawei Technologies, China’s leading smartphone vendor, has promised to fully refund the cost of its smartphones and tablets in the Philippines in the event the devices are unable to support popular apps from US companies such as Google and Facebook, after the company was put on a blacklist by the US government.The full-refund program allows consumers in the Philippines to get back the price of a Huawei smartphone if apps such as Google’s Gmail and YouTube, and Facebook, Instagram and WhatsApp… Source link

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Hong Kong’s extradition turmoil won’t dampen the property market greatly – but China’s economy might

Protesters march from Causeway Bay to the government headquarters in Tamar, Admiralty, on June 16, against the extradition bill, calling on Hong Kong’s leader to resign and to drop the categorisation of the events of June 13 as a riot. Photo: Robert Ng Source link

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China’s exports rise in May due to front-loading ahead of US tariff increase, but upturn won’t last, analysts warn

Chinese exports rebounded slightly in May as companies front-loaded their shipments to beat last month’s US tariff increase, but analysts warned that the damage from the move by US President Donald Trump could soon pose a severe challenge to the world’s second largest economy.Goods sold overseas rose 1.1 per cent in May from a year earlier, confounding market expectations of 3.9 per cent drop and improving from the 2.7 per cent fall a month earlier.Imports, however, fell 8.5 per cent following… Source link

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Vietnam 

US won’t label Việt Nam a currency manipulator – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  The đồng is among the steadiest currencies in ASEAN. — VNA/VNS Photo HÀ NỘI — The US is refraining from labelling Việt Nam a currency manipulator based on new data the country had provided to the Treasury Department, Bloomberg reported late last week, citing a person familiar with the matter. Earlier, it was reported that Việt Nam had been at risk of the designation amid plans by President Donald Trump’s administration to lower the threshold for labelling potential manipulators. The latest news came after in recent weeks, Việt Nam provided…

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Even a trade war deal with the US won’t be a cure-all for China’s economy and stock market

After a strong start to 2019, China’s stock market rally has lost momentum. The Shanghai Composite Index is about 10 per cent down from its mid-April peak following a surge of more than 30 per cent since January. While the unexpected ratcheting up of US-China trade tensions has weighed heavily on investor sentiment in recent weeks, it has not been the only driver of weakness in Chinese equities.A closer look at last month’s market indicates investors were already less bullish before the trade… Source link

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