global economy

The world economy is slowing: How bad will it be for Asia?

SINGAPORE (Sept 16): In a global economy that is in constant flux, no one can be certain of where it is headed and what it has in store for the Asian economies. But some things are clear. One is that global economic activity has slowed to a pace where there is more downside than upside and where policy responses are unlikely to be fully effective. Moreover, growth in the large developed economies is more internally focused and so does little to support demand for Asia’s exports.

Japan lines up to join Germany in all-negative yield curve club

(Aug 23): Japan’s sovereign debt market is in danger of joining Germany with negative bond yields across all maturities.

Yields in the Asian nation are already negative all the way out to debt maturing in 15 years, and buyers from home and abroad have been snapping up longer-tenor Japanese government bonds, adding to the downward pressure.

Creative reverses into the red in FY19 on lower sales, absence of settlement from patent lawsuits

SINGAPORE (Aug 22): Creative Technology reversed into the red for FY19 ended June, reporting a net loss of US$3.8 million ($5.3 million), compared to earnings of US$40.4 million in the preceding year.

Revenue for the year fell 17% to US$54.9 million from US$66.1 million back in FY18 although cost of goods narrowed 18% to US$38.9 million from $47.6 million last year.

What a riskier world means for us

SINGAPORE (Aug 19): The past week may have marked the juncture when the many stresses in geo politics and the global economy reached a tipping point: It is now more likely that we will get a series of political shocks and an accelerated downturn in the world economy. Political hot spots — in Hong Kong, Italy, Brexit, Argentina and South Asia — are turning critical. New data suggests that the prospects for global economic growth have also taken a knock. Yes, the major central banks will now cut interest rates more aggressively, but monetary policy cannot alone overcome the headwinds.

What a riskier world means for us

SINGAPORE (Aug 19): The past week may have marked the juncture when the many stresses in geo politics and the global economy reached a tipping point: It is now more likely that we will get a series of political shocks and an accelerated downturn in the world economy. Political hot spots — in Hong Kong, Italy, Brexit, Argentina and South Asia — are turning critical. New data suggests that the prospects for global economic growth have also taken a knock. Yes, the major central banks will now cut interest rates more aggressively, but monetary policy cannot alone overcome the headwinds.

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Global investor risk appetite wanes amid supply chain disruption, Brexit uncertainties: State Street

SINGAPORE (Aug 1): Investors across North America, Europe and Asia Pacific are showing a waning appetite for risk, according to State Street Corporation’s Investor Confidence Index (ICI) for July.

Global ICI fell 2.4 points to 84.9 in July, compared to June’s revised reading of 87.3.

The index measures investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors.

Global recession fear overplayed, says Bank Negara Malaysia

(July 29): While the escalating trade tension between the US and China will moderate Malaysia’s economic growth, it will not cause a global economic recession next year, said Bank Negara Malaysia (BNM).

“I think the recession fear is overplayed at this point in time. What we are seeing is just lower growth compared with our long-term average,” said BNM Economics Department director Fraziali Ismail.

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Southeast Asian outlook: Rising cyclical risks, expanding structural upside

The global economy is being pulled and pushed in different directions. Whether it is the US’ trade spat with China or the fragility of China’s economy or the geopolitical stresses in the Middle East that are raising oil prices, the ups and downs of the news flow make it hard to discern the net impact. However, a close study of recent developments shows two opposing trends — the region will be hit hard by cyclical forces, but the structural prospects over the longer term are improving to the point where a new development surge is likely in Asean.

Southeast Asian outlook: Rising cyclical risks, expanding structural upside

The global economy is being pulled and pushed in different directions. Whether it is the US’ trade spat with China or the fragility of China’s economy or the geopolitical stresses in the Middle East that are raising oil prices, the ups and downs of the news flow make it hard to discern the net impact. However, a close study of recent developments shows two opposing trends — the region will be hit hard by cyclical forces, but the structural prospects over the longer term are improving to the point where a new development surge is likely in Asean.

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Oxford Economics lowers GDP growth forecasts across Asia on slowdown of manufacturing and exports sector

SINGAPORE (June 28): The recent US-China trade tension escalations have resulted in the deterioration of the manufacturing and exports sector – causing Oxford Economics to lower its GDP growth forecasts across most of Asia.

Most countries recorded negative export growth with the exception of China (up 1.1%) and India (up 3.9%).

Vietnam’s goods exports were also up a solid 9.5% on the year, as exports to the US have accelerated, likely reflecting some trade diversion due to the US-China trade war. This has partly offset weaker demand from China and the region.

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