trade tensions

Don't let your investing guard down in 2019, says RHB

SINGAPORE (Dec 26): RHB Research is targeting 3,300 for the Straits Times Index (STI) by end-2019 and advises investors to remain defensive amid anticipated volatility in the year ahead – by focusing on buying stocks that offer stable earnings, strong balance sheets and sustainable dividends.

The research house’s caution comes despite inexpensive overall market valuations, in the research house’s view, with the STI trading at 12.7 times its one-year forward P/E at the -1SD band as at the close of Dec 13.

Americans snub China's new Dollar bond amid trade tensions

(Oct 15): China’s latest dollar-bond sale saw a marked slump in buying by US-based investors compared with last year’s offering, a stark contrast that’s emerged as bilateral trade tensions escalate.

IMF cuts forecast for global growth as trade war takes its toll

(Oct 9): The International Monetary Fund said the world economy is plateauing as the lender cut its growth forecast for the first time in more than two years, blaming escalating trade tensions and stresses in emerging markets.

On the eve of its annual meetings in Bali, Indonesia, the fund on Tuesday projected a global expansion of 3.7% this year and next, down from the 3.9% projected three months ago. It was the first downgrade since July 2016.

MAD about Sino-American trade

SINGAPORE (Oct 1): Now that US President Donald Trump has imposed a 10% tariff on yet another US$200 billion ($272.8 billion) worth of Chinese imports, the US-China trade war has entered a costly new phase. As China follows through on its pledge to retaliate, the casualties will include more than half the bilateral trade between the two countries, with China itself suffering the most losses.

SEA economic growth to cool amid rising trade tensions

SINGAPORE (Sept 18): Economic growth across South-East Asia (SEA) region is expected to cool in the second half of the year until 2019, according to ICAEW’s Economic Insight: South-East Asia report.

Growth in SEA for 2018 is expected to ease to 5.1% from 5.2% in 2017, with growth easing further to 4.8% in 2019, as moderating Chinese import demand and escalating US-China trade tensions dampen exports and business investment.

Good and bad on trade

(Aug 29): Fears of a global trade war, led by America, have diminished. The issue is compressing into a conflict between China and the US, perhaps reflecting growing superpower rivalry as much as pure economic tension. China is already taking steps to offset the impact.

A couple of months ago there was the risk of a trade war on three fronts: NAFTA, the EU (or automobiles) and China. The first two of these seem to have reached a truce.

How is the world economy faring amid US-China trade tensions?

SINGAPORE (Aug 28): Although near-term activity indicators remain stable, global growth appears to be losing momentum in 2018, compared to 2017 when major regions were accelerating.

Currently, Asia and Europe appear to be slowing, diverging from the US, which is still experiencing strong growth.

In a Schroders TalkingPoint report, chief economist and strategist Keith Wade sees three main factors as contributing to what seems to be a summer hiatus and whether these are likely to have a permanent or temporary effect.

1. Cooling China

Businesses expect long trade fight even after Trump

(Aug 20): Let's not get too excited in response to talks about talks among officials from the US and China. Tussles over trade are likely to be the norm no matter who wins the midterm elections or sits in the Oval Office.

As the US and China edge towards trade war, will cooler heads prevail?

SINGAPORE (July 30): Amid rumblings of a potential full-blown trade war, it is important to understand why the current US administration has opted for this path, which in some states in the country is seen as politically attractive. 

Hi-P earnings estimates slashed by DBS due to margin worries from US-China trade war

SINGAPORE (Aug 2): DBS Vickers Securities is maintaining “hold” on Hi-P International with a lower price target of $1.21 compared to $1.80 previously, after cutting FY18F and FY19F earnings by 23% and 29% respectively to account for lower margins.

The new target price is based on a 30% discount to peers’ average PE of 16 times, versus 20% discount previously, on blended FY18F and FY19F earnings.

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