Reuters (February 5)
“Prolonged factory deflation is threatening the survival of smaller Chinese exporters who are locked in relentless price wars for shrinking business as higher interest rates abroad and rising trade protectionism squeeze demand.” Fifteen months of falling producer prices have crushed “profit margins to the point where industrial output and jobs are now at risk,” further “compounding China’s economic woes, which include a property crisis and debt crunch.”
Tags: China, Demand, Economic woes, Exporters, Factory deflation, Interest rates, Jobs, Output, Price wars, Producer prices, Profit margins, Prolonged, Property crisis, Relentless, Risk, Survival, Threatening, Trade protectionism
Investing.com (July 2)
“Oil prices settled down 1% on Monday as worries about a slowing global economy and possible U.S. interest-rate hikes outweighed supply cuts announced for August by top exporters Saudi Arabia and Russia.”
Tags: August, Down, Exporters, Global economy, Interest rate hikes, Oil prices, Russia, Saudi Arabia, Supply cuts, U.S., Worries. Slowing
Reuters (July 29)
“The Bank of Japan meets on Tuesday and might be doing some ‘jinarashi’ i.e. preparing markets for some changes to its unique, ultra-loose monetary policy.” With five years of mixed results, as well as “a global trade war now threatening trouble for its big exporters and zero interest rates hurting its banks, the BOJ seems to have recognized that something needs to give.”
Tags: BOJ, Exporters, Global trade war, Japan, Jinarashi, Mixed results, Monetary policy, Ultra-loose, Zero interest rates
Bloomberg (April 11)
“For global equity investors and Shinzo Abe, it’s splitsville.” For 13 straight weeks during 2016, “foreign traders have been pulling out of Tokyo’s stock market.” They’ve dumped “$46 billion of shares as economic reports deteriorated, stimulus from the Bank of Japan backfired and the yen’s surge pressured exporters. The benchmark Topix index is down 18 percent in 2016, the world’s steepest declines behind Italy.”
Tags: Abe, BOJ, Equity investors, Exporters, Italy, Shares, Stock market, Tokyo, Topix, Traders, Yen
Financial Times (July 25)
“Since taking office in the spring, the new Chinese leadership knew it had to boost a slowing economy, while, at the same time, rebalancing it away from state-driven investment. Some of the measures included in the ‘mini-stimulus’ Beijing announced on Wednesday strike this difficult balance.” By cutting red tape for exporters and taxes for small companies, the package may succeed in letting “hundreds of small firms bloom.”
Tags: Beijing, China, Economy, Exporters, Leadership, Rebalancing, Slowing, Stimulus, Taxes
Forbes (September 9)
“There is a country that, more than any other, needs the Federal Reserve to embark on QE3.” A third program of quantitative easing “may not help the U.S., but China certainly stands to gain.” QE3 is expected to weaken the dollar. “A weak American currency means a weak Chinese one, and a weak Chinese currency helps the nation’s struggling exporters on global markets.”
