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The next financial crisis will be worse than the 2008 crash. Here’s how the world can prepare for it

Still psychologically scarred, few were keen last month to commemorate the 10th anniversary of the Dow’s rock bottom close in March 2009.  Even so, all month long, calls to heed lessons from the last great recession echoed across the media as ominous signs pointing to another pending financial crisis loom. Last week, the US Department of Commerce revised growth forecasts downward. Growth across major European economies is either slowing or negative. And the Chinese economy, a critical global… Source link

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Global 

China’s fragile trade economy could be at risk, as EU outlook goes from bad to worse

A recession in Europe would hit demand for Chinese exports and could lead to a further narrowing of China’s trade balance, analysts have said.Existing concerns that Europe was on the verge of a recession were stoked on Friday by new data which shows the bloc’s manufacturing sector is struggling.The euro zone purchasing managers index (PMI) showed that manufacturing contracted in March, at a rate not seen in nearly six years. Along with the already weak performances of major European economies… Source link

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China 

For better or worse? China’s complicated employment picture amid an economic slowdown and US trade war

The exact health of China’s labour market can be confusing at the best of times, but with the country struggling against an economic downturn and a trade war with the United States, current unemployment and employment figures are only making the picture murkier and harder to gauge.Officially, China’s unemployment situation improved in December with the unemployment rate dropping to 4.9 per cent compared to 5 per cent a year earlier.At the same time, the employment situation tracked by the… Source link

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China 

You thought 2018 was bad for China’s stock market? Profit warnings suggest worse may be yet to come

Last year was a dreadful one for mainland Chinese equities as a slowdown in economic growth and the trade war with the US combined to crush market sentiment. The bad news for investors is that the worst may be yet to come. Preliminary announcements showed that 390 companies listed on China’s bourses are set to report a combined loss to the tune of 330 billion yuan (US$49 billion) for 2018. That means the total loss for the country’s listed firms is on track to be three times greater than a…

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China’s economic reforms are working. The bad news is the pain may get worse

The Chinese economy ended 2018 on a weak note, but not so weak that people now fear growth will fall off a cliff. Gross domestic product growth in the fourth quarter clocked in at 6.4 per cent, the weakest since the first quarter of 2009, but in line with market expectations. The quarterly growth profile, which shows a persistent weakening trend – from 6.8 per cent in the first quarter, to 6.7 per cent, 6.5 per cent and now 6.4 per cent – is indicative of the harsher conditions facing…

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China 

China trade data worse than expected, bad news for economy

China’s export and import figures were much worse than expected in December, underscoring the rapid weakening of the Chinese economy. Monday’s figures suggest the negative impact of the trade war may be greater than Chinese authorities have previously estimated, and suggest the need for a more rapid and larger economic stimulus is needed to stabilise growth. Total exports fell to US$221.25 billion in December, down 1.4 per cent from last month, and 4.4 per cent from the same month in 2017, according to data from China’s General Administration of Customs.…

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Nissan’s old guard struck back against their ‘gaijin’ saviour, and Japan Inc may be the worse for it

The Empire has struck back. Japan Inc and Nissan Motor last week struck back against the French government, carmaker Renault and Carlos Ghosn. The narrative spun by Nissan and apparently condoned by Japanese authorities is that the former high-flying head of the Nissan-Renault-Mitsubishi Motor alliance abused his position to enrich himself. The truth appears to be rather different and it seems certain to come out as “L’Affaire Ghosn” unfolds. It threatens to do at least as much damage to the reputation of the government and industry alliance known as Japan…

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Singapore 

Man sends e-scooter for repair, but gets it back in worse condition and is asked to pay more, Singapore News

A Stomp contributor paid for his e-scooter to be fixed, but ended up receiving it back in even worse condition and having to pay more than what he originally agreed to. The Stomp contributor alerted Stomp of this incident after reading a previous article regarding a deliveryman who paid a $70 deposit for an e-scooter, but ended up only receiving parts of it. The Stomp contributor believes that he had encountered the same “e-scooter professional”. On May 28, the Stomp contributor saw his neighbour, Steve, at the void deck of…

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China 

China’s top leaders prepare for worse as economy takes hits from US trade war

China’s top leadership has outlined a new game plan for the private economy and the stock market as the country braces for further hits to the economy from the trade war with the United States. The Communist Party’s Politburo, the 25-member supreme policymaking body headed by President Xi Jinping, agreed on Wednesday that there was “growing downward pressure” on the economy with “profound changes” in the external environment, state-run Xinhua news agency reported. The statement was a shift from three months ago when the Politburo said there was “noticeable” changes…

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If you think 2018 has been challenging for China’s economy, next year may be worse

A further slowdown in the Chinese economy has seen real GDP growth in the third quarter slip to its lowest level since the first quarter of 2009, the height of the global financial crisis. This is testament to the scale of economic challenges confronting Beijing. Contrary to popular belief, the current economic slowdown has little to do with the Sino-US trade war, which has captured most people’s attention this year. Rather, it is driven by an acute weakening of domestic demand as a result of previous domestic policy tightening. Indeed,…

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