Wall Street Journal (June 16)
“In just 24 hours this past week the central banks of the world’s three biggest economic blocs came to starkly different conclusions, with the eurozone raising rates, the U.S. on hold and the Chinese cutting. It’s getting harder for investors to understand the global economy—and potentially getting harder for the Federal Reserve to put a lid on inflation.”
Tags: Biggest, Central banks, China, Conclusions, Cutting, Different, eurozone, Fed, Global economy, Hold, Inflation, Investors, Raising, Rates, U.S.
The Korea Economic Daily (June 15)
“Everything Asian policymakers were sure they knew about 2023 is going sideways.” When the year opened, “conventional wisdom” expected “Chinese growth would help the region make up for lost economic time.” Now the worry “is about deflation risks as factory-gate prices go negative” with consumer prices in China “on the verge of contraction.” Its exports are “cratering,” but China’s falling imports are “the bigger problem for Korea, and Asia more broadly.” In May, China’s imports fell by 4.5%, “dampening hopes that post-pandemic ‘revenge spending’ by 1.4 billion Chinese would propel Asian growth sharply higher.”
Tags: Asia, China, Consumer prices, Contraction, Cratering, Deflation risks, Exports, Factory-gate prices, Growth, Imports, Korea, Negative, Policymakers, Sideways
Washington Post (June 9)
China is now “the world’s leading exporter of automobiles, handily ousting Japan from that position. It is especially strong in electric vehicles. Two of every three EVs made in the world are made in China. As we think about China’s weaknesses these days (and it has several), it is worth remembering China’s formidable strengths and the degree to which it is intertwined into the global economy.”
Tags: Automobiles, China, EVs, Exporter, Formidable, Global economy, Intertwined, Japan, Strengths, Weaknesses, World’s leading
Reuters (June 7)
After beating expectations in Q1, “China’s exports shrank much faster than expected in May while imports extended declines with a grim outlook for global demand, especially from developed markets, raising doubts about the fragile economic recovery.”
Tags: Beating, China, Declines, Developed markets, Doubts, Expectations, Exports, Fragile, Global demand, Grim outlook, Imports, May, Q1
South China Morning Post (May 25)
Several factors help explain “the outperformance of Japanese shares.” Improved corporate governance and the end of deflation are important, but “the explanation with the most resonance for investors is Japan’s role as a safe haven in an increasingly risky world. This has taken on added significance because of concerns about the deepening geopolitical rift between the US and China, as well as economic and regulatory risks in China itself.” Japan boasts “the only market in Asia big and liquid enough to offer an alternative to China while still providing exposure to the reopening of its economy.”
Tags: Big, China, Corporate governance, Deflation, Economic, Exposure, Factors, Geopolitical rift, Investors, Japan, Liquid, Outperformance, Regulatory risks, Reopening, Risky world, Safe haven, Shares, US
Financial Times (May 22)
“China ordered a swath of its infrastructure companies to stop buying from US chipmaker Micron” hours after the G7 ended and President Biden spoke of a thaw in relations. China also summoned Japan’s ambassador to protest related issues. This “underscored the big challenges to stabilising US-China relations at the end of a summit in Hiroshima where Biden and other leaders of the advanced economies issued their harshest criticism of Beijing — while also acknowledging the need to co-operate with China.”
Tags: Ambassador, Biden, Challenges, China, Chipmaker, G7, Hiroshima, Japan, Micron, Protest, Relations, Summit, Thaw, U.S.
Time (May 22)
“Ukraine’s Volodymyr Zelensky was the undisputed star of the G7. But Summit’s focus remained firmly on China…. The bulk of business in Hiroshima was not focused on Vladimir Putin’s war of choice, but some 3,600 miles east of Moscow: Beijing’s growing assertiveness.”
Tags: Beijing, China, G7, Growing assertiveness, Hiroshima, Putin, Star, Summit, Ukraine, Undisputed, War of choice, Zelensky
Wall Street Journal (April 20)
“When it comes to China, the U.S. and EU are largely now on the same page. “Europeans use milder language than Americans, saying they wish to ‘de-risk’ their economic relationship with China, not ‘decouple.’ But in substance, European de-risking and American decoupling look much the same. Indeed, Europe is erecting economic defenses against China that in some cases go further than the U.S.”
Tags: China, De-risk, Decouple, Economic defenses, Economic relationship, EU, Language, Milder, Same page, U.S.
The Guardian (April 18)
“China’s economy rebounded faster than expected, surpassing growth estimates for the first quarter of the year, after the country relaxed its onerous Covid-19 restrictions and consumer spending surged.” The 4.5% quarterly growth marked “the fastest in a year and beat the 4% rise forecast by analysts polled by Reuters.”
Tags: Analysts, China, Consumer spending, COVID-19, Economy, Estimates, Forecast, Growth, Onerous, Q1, Rebounded, Restrictions, Surpassing
Equities News (March 28)
“The petrodollar was born” in 1975. When OPEC members exclusively adopted the dollar for pricing, it “had the immediate effect of strengthening the U.S. dollar,” with the greenback becoming “the world’s reserve currency, a status formerly enjoyed by the British pound, French franc and Dutch guilder.” Today, however, “we may be witnessing the end of the petrodollar as more and more countries, including China and Russia, are agreeing to make settlements in currencies other than the U.S. dollar. This could have wide-ranging implications on not just a macro scale but also investment portfolios.”
Tags: 1975, China, Currencies, Franc, Greenback, Guilder, Implications, Macro scale, OPEC, Petrodollar, Pound, Reserve currency, Russia, Settlements, Strengthening, U.S.
