Logo of the London Stock Exchange. Equities in Asia, Europe and the US were a sea of red as Trump's remarks rekindled fears of a trade war with potentially devastating consequences for world growth. "For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods," Trump tweeted on Sunday night. "The 10% will go up to 25% on Friday." Many markets, however, pared early steep losses as analysts suggested that Trump was playing a game of brinkmanship and would ultimately save ongoing trade talks. The Dow Jones index, which fell by over 400 points at the opening bell, had clawed back more than half of that loss by the late New York morning. Eurozone stocks were also in better shape at the end of the European trading day than at the start, but both Frankfurt and Paris were still over one per cent down at the close. The London market was shut for a public holiday. Earlier, Asian investors took no chances, … [Read more...] about European stocks tumble as Trump threatens China tariffs
Analyst goldman sachs
Illustrative image - Source: VNA The better tone is being reflected in China’s markets. Stocks are up 31 percent from a January low and the yuan has strengthened 2.4 percent against the dollar. China’s central role in global manufacturing and as a vital source of final demand are among reasons why a large pick-up in the March PMI is a key signal for global factories too, Bank of America Merrill Lynch economists led by Ethan Harris, head of global economics research wrote in a note dated April 5. “Policy makers have responded to the U.S.-China trade war with a ’do-whatever-it-takes’ approach to supporting growth, taking on a wide array of easing measures. Financial conditions have started to improve and the large increase in the March manufacturing PMI might be the first indication that economic activity is bottoming out,” they wrote. The likelihood for strong credit data, stabilizing trade volumes and a modest rebound in factory prices are reasons … [Read more...] about China’s economy is looking better and better
Boeing 737 MAX 8 aircraft have been grounded around the world following a deadly crash in Ethiopia that killed 157 people. (AFP/JOE RAEDLE) Boeing will have to restore confidence in its product, and pay the costs of any modifications, while airlines try to find workarounds to replace the popular aircraft in their lineup of flights. The US on Wednesday grounded the 737 MAX 8 and MAX 9 models while it continues the search for the cause of the crash, which happened less than five months after a Lion Air plane of the same model went down in Indonesia, killing 189. Both accidents occurred a few minutes after take-off, a similarity that led authorities around the world to pull the plane out of operation. The cost for Boeing and the airlines will depend largely on the length of time the planes are out of commission. How long any reputational damage will endure will depend on how well and how quickly Boeing deals with the a fix, analysts say. "They will have to convince people to trust them … [Read more...] about Boeing, airlines face tough path after 737 MAX grounding
At the end of 2018, Viet Nam’s Gross Domestic Product (GDP) – one of the primary indicators used to gauge the health of a country’s economy – was announced by Vietnam General Statistics Office, beating forecasts made by many international institutions. Earlier, the International Monetary Fund (IMF) predicted the country’s 2018 GDP growth rate would stand at 6.6 per cent in its October report titled ‘Asia at the Forefront: Growth Challenges for the Next Decade and Beyond’. The Australia and New Zealand Banking Group’s Research Unit lowered its projection by 0.2 percentage points to 6.5 per cent. Though more optimistic, the Asian Development Bank (ADB) still cautiously adjusted its growth forecast from 7.1 per cent to 6.9 per cent for 2018. In fact, the 2018 figure reached an amazing growth rate of 7.08 per cent, the strongest growth Vietnamese people have seen in 10 years. However, whether the country is able to maintain such good … [Read more...] about High growth in 2019: Realistic or optimistic?
In this file photo taken on Dec 18, 2017, a woman uses her phone as she walks past an ATM machine for digital currency Bitcoin in Hong Kong. (Photo: AFP/Anthony Wallace) Adventurous investors have already bought into the virtual currency and Wall Street is laying the groundwork for more wealth to flow into the cryptocurrency. But nobody can say how big (or small) the bitcoin story will ultimately become. Bitcoin still cannot be used to buy even a loaf of bread. It cannot be purchased from a company or sold directly on a major financial exchange and it is backed by no central bank. And it also dissimilar to metals like gold or silver, with universally accepted value. Yet bitcoin is exchanged like money. Near the end of 2017, bitcoin reached almost US$20,000 in value amid a buying frenzy. It has since come down closer to earth and is now worth around US$6,400. Such volatility is too nerve-wracking for most mainstream investors but the radical price swings hold appeal for short-term … [Read more...] about Wall Street greets bitcoin with interest and worry