US-China trade conflict

China, US struggle to set meeting as tariffs erode trust

(Sept 3): Chinese and US officials are struggling to agree on the schedule for a planned meeting this month to continue trade talks after Washington rejected Beijing’s request to delay tariffs that took effect over the weekend, according to people familiar with the discussions.

Despite efforts by President Donald Trump to soothe financial markets and portray the talks as making progress, the world’s two biggest economic powers have yet to agree on basic terms of re-engagement, with mistrust on both sides.

Trade war spurs recession risk in Singapore

SINGAPORE (July 25): The US-China trade war is threatening to drag export-reliant Singapore into a recession and aggravating underlying risks facing the former tiger economy.

Singapore’s economic data have gone from bad to worse this month. Exports slumped to their second-worst rate since the global financial crisis, the purchasing managers index slipped into contraction for the first time since 2016, and the economy shrank the most in almost seven years in the second quarter.

Bearing brunt of trade war, Singapore chipmakers cut jobs

SINGAPORE (July 24): Caught between a Sino-US trade war, political concerns over Chinese telecoms firm Huawei and slowing consumer demand, chipmakers in Singapore have started slowing production and laying off hundreds of jobs, firms told Reuters.

The slump in a sector that made up nearly a third of Singapore’s manufacturing output last year is reinforcing expectations that the export-driven economy could slide into recession in the coming months.

Singapore's $700 bil stock market looks past recession risk

SINGAPORE (July 19): Investors are sanguine about Singapore’s equity market even as the nation faces the risk of a technical recession, as a positive outlook for dividends and earnings overshadows threats from the US-China trade spat.

Singapore’s trade-reliant economy unexpectedly contracted by 3.4% in the June quarter from previous three months, reflecting sluggish global trade and electronics cycles. Following the data release, the International Monetary Fund on Monday cut Singapore’s 2019 growth forecast to 2% from 2.3%.

Temasek portfolio value rises as unlisted assets outperform

SINGAPORE (July 9): Temasek Holdings held onto gains in its portfolio amid global trade uncertainties after selling $28 billion of holdings as US equity markets hit record highs and its unlisted assets outperformed.

The Singapore state investor’s net portfolio value rose 1.6% to $313 billion in the 12 months ended March 31. In US dollar terms, the portfolio value fell by 1.7%. One-year total shareholder return for the period was 1.49%, while three-year TSR came in at 8.88% in Singapore dollar terms.

Asian economic growth slated for moderate slowdown: SSGA

SINGAPORE (July 4): Asia’s economic growth is expected to continue to weaken against a backdrop of unresolved trade tensions, according to asset manager State Street Global Advisors (SSGA), the investment management arm of State Street Corporation.

In a mid-year outlook briefing on Thursday, SSGA says the continued decline will likely be on the back of slowing exports and soft domestic demand.

ISDN kept at 'add' by CGS-CIMB on value-add, growth opportunities and strong partnerships

SINGAPORE (July 1): CGS-CIMB Research is maintaining ISDN Holdings at “add” with a target price of $0.32 on the back of the company’s core business strength of providing value-added motion control solutions and strong partnerships.

Apart from not competing in the mass market and price-competitive core motor space, ISDN adds value by offering solutions that incorporate its principals’ motors to customers, rather than selling them the motors on a standalone basis.

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.

Tech funds perform despite Huawei ban, but fund managers more wary as

SINGAPORE (July 1): On May 16, trade tensions between the US and China escalated to a new high when the former announced that Huawei Technologies was placed on the Entity List. Essentially, this means the Chinese company is subject to licence requirements for exports, effectively barring it from doing business with US companies. To soften the blow on US companies and smartphone owners, the prohibition is only set to take effect after a 90-day grace period. Yet, the conflict could worsen. 

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Singapore considers cut to growth forecast as trade war hits exports

(June 27): Singapore's central bank is reviewing its 1.5-2.5% economic growth forecast for this year and isn't ruling out off-cycle monetary easing as the US-China trade war roils the export-dependent economy, its chief Ravi Menon said on Thursday.

Singapore's economy is expected to grow at its slowest pace in a decade this year, and some are predicting a recession in 2020, with the high-tech manufacturing hub more vulnerable to the trade war than others in Southeast Asia.

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